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RECON for June 22, 2018RECON for June 22, 2018Bryan PopePope
2018-06-22T05:00:00Z2018-06-22T05:00:00Z

Real Estate Center Online News
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Dallas has ranked fifth among the major markets with the largest year-over-year gains in home purchase contracts, according to Meyers Research. North Texas also dominates WalletHub's list of the best Texas cities for families. For all this and more, keep reading today's RECON. (Photo from Center files.)
June 22, 2018

DFW dominates best Texas cities for families ranking

WASHINGTON (WalletHub) – WalletHub has released its list of the best Texas cities for families, and North Texas cities snagged the top ten spots. Those cities were Frisco, Allen, Southlake, Colleyville, Flower Mound, Murphy, Keller, Plano, Coppell, and McKinney.

Austin, Houston, San Antonio, Dallas, Fort Worth, and El Paso all tied for the city with the most attractions. San Juan (near McAllen) and University Park (by Dallas) both have the fewest attractions.

Southlake and San Benito (by Harlingen) have the highest and lowest median family income, respectively. That's adjusted for the cost of living. 

The most affordable homes are in Big Spring (Howard County). The least affordable housing is in University Park, which happens to have the most families with kids. 

Georgetown has the fewest families with kids. Colleyville has the lowest violent crime rate. Houston, Lubbock, and Beaumont tied for the highest.

Murphy has the lowest percent of families below the poverty line. San Benito has the highest. The lowest divorce rate is in Southlake, while Big Spring has the highest.​
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Helped by oil prices of more than $60 per barrel, the Texas economy accelerated its pace of job creation in May 2018. Center Research Economist Dr. Ali Anari says more in the latest Monthly Review of the Texas Economy report. Don't forget to subscribe. 

Dallas Fed: 3.3 percent job growth predicted for Texas

​​DALLAS (Federal Reserve Bank of Dallas) – Texas employment will grow 3.3 percent this year, according to the Texas Employment Forecast by the Federal Reserve Bank of Dallas. 

The prediction fell from 3.6 percent after incorporating May's annualized employment growth of 3.2 percent. 

"Texas job growth continued at a strong pace in May," said Keith R. Phillips, Dallas Fed assistant vice president and senior economist. "However, growth has slipped a little over the past three months, which, along with a slowdown in the Texas Leading Index, has resulted in a slight downward revision to the 2018 forecast."​

Based on the forecast, the state will add 412,000 jobs this year. Employment in December 2018 will reach 12.7 million.

The estimate is significantly higher than 2017's 1.9 percent job growth. That number was recently revised down from 2.1 percent.
Graphic with Wes Miller's headshot
How do Texas' demographics affect the state's housing market? Center Research Associate Wesley Miller joins us this week in the Real Estate Red Zone to explain. Tune in for that plus more real estate news. (15 min. 47 sec.)

National housing starts at post-recession high

​​​WASHINGTON (National Association of Home Builders) – National housing starts rose 5 percent in May to a seasonally adjusted annual rate of 1.35 million units, according to data from the U.S. Department of Housing and Urban Development and the Commerce Department. 

This is the highest starts have been since July 2007.

Single-family and multifamily production are up 9.8 percent and 13.6 percent year to date, respectively.​

“We should see builders continue to increase production to meet growing consumer demand even as they grapple with stubborn supply-side constraints, particularly rising lumber costs,” said National Association of Home Builders Chairman Randy Noel.​

Housing starts fell 0.9 percent in the South.​

The Real Estate Center has annual and monthly building permit data online. The data can be narrowed by state, MSA, and county.

Dallas has fifth largest YOY gains in home purchase contracts

​​DALLAS (Dallas Morning News) – The Metroplex ranked fifth among the major markets with the largest year​-over-year gains in home purchase contracts, according to Meyers Research. 

​​Through April, the area's homebuying contracts were 8 percent ahead of the same time last year. 

North Texas home sales were up 4 percent through May. Median home prices are up 5 percent so far this year. Last​ year, home price gains were in the double digits. 

Meyers analysts credit rising interest rates with pushing more buyers into the housing market this spring. ​

Denver had the biggest gains in home purchase contracts at 24 percent. San Diego and Phoenix were both up more than 10 percent. 
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One in 18 Americans live in mobile homes

​​SAN FRANCISCO (Apartment List) – Mobile homes are the largest source of unsubsidized affordable​ housing in the nation, providing shelter for one in ten households living below the poverty line, according to Apartment List. 

Around 5.6 percent of all Americans, or 17.7 million people, live in manufactured homes. That's one in 18​ Americans. 

The average mobile home costs $564 per month compared with $1,057 for a site-built home or apartment. 

In the 100 largest metros, mobile home residents spend 40.5 percent less on housing than those living in non-mobile homes in the same metro. 

Although manufactured homes are cheaper and faster to build than traditional homes, they are rarely viewed as a solution to the affordable housing shortage. 

Center Research Economist Dr. Harold Hunt discusses how far manufactured homes have come in "​Not Your Grandfather’s Trailer House​," a Tierra Grande article from 2013. For information on renting mobile homes, read the Center's Landlords and Tenants Guide for Manufactured Home Communities by former Center Research Attorney Judon Fambrough. 

Work starts on $1.5 billion Northlake community

​​​NORTHLAKE (Dallas Business Journal) – Dallas-based Hillwood Communities has broken ground on the 1,157-acre Pecan Square mixed-use development.​

The $1.5 billion project will include commercial, retail, educational, and residential space. It will also have a town hall.

Homes will be priced between $250,000 and $500,000. Homebuilders include Ashton Woods, CalAtlantic Homes, DR Horton, David Weekley Homes, Highland Homes, Perry Homes, Plantation​ Homes, and Pulte Homes. 

The first phase will have over 630 home sites.

The grand opening is set for fall 2019.​​
City skylineMarket Research is your gateway to data on all 25 Texas metropolitan statistical areas, from Abilene to Wichita Falls. Whether you're looking for information on an area's demographics, top employers, or housing and commercial markets, chances are you'll find it here.

Hunt, WestStar break ground on El Paso's tallest tower

​​​EL PASO (El Paso Inc.) – Locally based Hunt Companies and WestStar Bank broke ground on what will be the tallest tower in the city.

Called WestStar Tower at Hunt Plaza, the 306-ft building will be at 601 N. Mesa St. It will include event space, outdoor gathering areas, and ground-floor dining and retail space. 

Hunt will move its headquarters to the tower, bringing about 175 employees. WestStar will consolidate 260 employ​ees from four downtown​ buildings. 

Delivery is scheduled for summer 2020. 

Former Halliburton site sold

​​​HOUSTON (Realty News Report) – An investment group ​has acquired the 49-acre Oak Park Halliburton campus. 

The former Halliburton Co. site at 10200 Bellaire Blvd. includes a vacant 568,458-sf office building, fitness center​​​​, and five-level parking garage. It was built in 1979 and has been upgraded since 2013. 

JLL represented Halliburton in conjunction with the Williams & Williams auction firm. ​

The buyer was led by investor Lawrence Wong. ​​
Home construction siteIn the market for Texas real estate data? Look no further. We're your one-stop shop for housing, rural land, building permit, employment, and population data.

Investor buys two North Texas apartments

​​​​​​DALLAS (Dallas Morning News) – Florida-based Atlantic Pacific Cos. has purchased two apartment communities in The Colony and McKinney from Greystar.

The 294-unit Avana Stonebriar is at 5620 S. Colony Blvd., and the 343-unit Avana McKinney Ranch is at ​​​5500 McKinney Pl. Dr. 

The new owner will make significant capital improvements to both properties, which will be renamed The Atlantic Stonebriar and The Atlantic McKinney Ranch.​

BD Land Co. sells 101,500-sf industrial asset

​​​​IRVING (Lee & Associates) – BD Land Co. has sold a 101,500-sf industrial property to JED Industrial. 

The new owner will occupy the space at 1800 Hurd Dr. by late 2018. It will be operational by 2019. 

Lee & Associates represented the seller. Jackson Cooksey represented the buyer. ​​​​
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Alice industrial project under new ownership

​ALICE (REBusiness Online) – Halliburton Energy Services Inc. has sold a 103,338-sf industrial asset to Alice Management Co. LLC. 

The 17-building project sits on 19.2 acres at 850 Commerce St. ​It features 22-ft clear heights. 

Crave​y Real Estate Services and JLL represented the seller. 

Canadian company signs 200,000-sf Garland lease

​GARLAND (Dallas Morning News) – Canada-based Alliance Communications has leased a 200,000-sf ​​warehouse. 

The space will house a mix of 20 blue- and white-collar jobs.

The company's existing Texas office and warehouse are local, as well.

Fults developing Stonebriar Commons on Legacy

​FRISCO (REBusiness Online) – Fults Commercial is developing Stonebriar Commons on Legacy, a 103,958-sf office building. 

Construction will start in fourth quarter 2018. 
Texas Association of Realtors quote about Real Estate Center
Copyright © 2018, All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Hayley Rieder. The Real Estate Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.
https://www.recenter.tamu.edu/news/recon/?Item=183
RECON for June 19, 2018RECON for June 19, 2018Bryan PopePope
2018-06-19T05:00:00Z2018-06-19T05:00:00Z

Real Estate Center Online News
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Harvard’s Joint Center for Housing Studies released its 30th Annual State of the Nation Housing Report​ today​. But how does the national report relate to Texas? Keep reading RECON to find out what Center researchers have to say. (Photo from Center files.)
June 19, 2018

REC offers Texas perspective on new Harvard housing study

​COLLEGE STATION (Real Estate Center) – Real Estate Center researchers offered Texas-specific perspectives on a national housing report released today by Harvard University.

“Immigrant households will play a larger role in growing housing demand in Texas," writes Senior Data Analyst Josh Roberson in a new blog post.

“Texas is one of only a few larger states benefitting from positive net migration, which means more people are moving in than out. While much of this migration comes from households moving from other states, that source has tapered down while international households continue to provide steady growth."

Research Associate Wesley Miller says this mix of domestic and international migration makes Texas' population younger than the national average. That's both good and bad.

“This benefits the state's economic dynamism, but it also weighs on homeownership rates," Miller writes in his blog post. “The Lone Star State continually lags the nation by about 2 percent despite relative housing affordability."

The state's diverse population presents a similar challenge as racial and ethnic homeownership disparities persist, Miller said.

“For example, Texans of Hispanic descent represented 31 percent of total housing units, but only 28 percent of those units were owner-occupied in 2016," he said. “The gap is even larger for black homeownership and has widened since the Great Recession. These imbalances conflict national consumer surveys on renters, which suggest the desire to own a home transcends racial boundaries."

According to the 30th Annual State of the Nation's Housing Report released today by Harvard's Joint Center for Housing Studies, the share of cost-burdened renters is significantly higher. The report says almost half of all renters pay more than 30 percent of their income for housing.

Roberson says multifamily rent growth is cooling in Texas, largely because of falling demand for higher-priced units while lower-priced units remain steady.

“Like the single-family market in Texas, inventory of lower-priced units is becoming scarcer with much of the new construction pipeline focused on the higher-priced market," he said.

For more on Harvard's study, click here.​
Texas Border Economy on an iPad near a poolLed by gains in the retail sector, improved labor conditions supported growth on the Texas-Mexico border. Continued strength in the value of the peso supported international exports and trade values. Read more in the latest Texas Border Economy report by Center Chief Economist Dr. Jim Gaines, Research Economist Dr. Luis Torres, Research Associate Wesley Miller, and Research Intern Paige Woodson. Don't forget to subscribe to email notifications. 

Texas employment grows for 23rd consecutive month

​​​​​​​​AUSTIN (Texas Workforce Commission) – The Texas economy added 34,700 seasonally adjusted nonfarm jobs in May, marking 23 consecutive months of employment growth, reports the Texas Workforce Commission.

Last month, the seasonally adjusted unemployment rate was 4.1 percent, unchanged from April 2018.

Over the year, Texas added 352,100 jobs for an annual employment growth rate of 2.9 percent. 

Midland has the lowest non seasonally adjusted unemployment rate in the state at 2.1 percent. McAllen-Edinburg-Mission had a 6.2 percent unemployment rate, the highest in the state.

The information industry lost 0.1 percent of jobs over the month. Mining and logging had the largest gain, growing 1.7 percent.  ​
NewsTalk Texas logoHungry for more Texas real estate news? Then feast your eyes on NewsTalk Texas, our online news database. Here are a few of the stories you'll find there this week: NewsTalk Texas is updated each weekday, throughout the day. 

As lumber prices rise, builder confidence falls

​​WASHINGTON (National Association of Home Builders) – National builder confidence in the new single-family home market fell two points to 68 in June on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).

The decline was due in large part to rising lumber prices, although sentiment remains on solid footing. 

“Builders are optimistic about housing market conditions as consumer demand continues to grow," said NAHB Chairman Randy Noel. “However, builders are increasingly concerned that tariffs placed on Canadian lumber and other imported products are hurting housing affordability. Record-high lumber prices have added nearly $9,000 to the price of a new single-family home since January 2017."

All three HMI indexes inched down a single point in June. The index measuring current sales conditions fell to 75. The one gauging expectations in the next six months dropped to 76, and the metric measuring buyer traffic fell to 50.

Regionally, the South's HMI fell one point to 71. 

For details on Texas new home affordability, read "Home Delivery: Where is All the New Housing?" a Tierra Grande digital first by Center Research Economist Dr. Luis Torres and Research Associate Wesley Miller.​
Obtaining a Texas Real Estate License coverObtaining a Texas Real Estate License is the most complete guide found anywhere to obtaining a Texas real estate salesperson's license. Everything from what activities require a license to actual application forms. This report has been reviewed by the Texas Real Estate Commission. 

USACE approves $509 million for flood mitigation 

​​​​WASHINGTON (Strategic Partnerships) – The United States Army Corps of Engineers (USACE) has approved $509 million in funding to pay for projects to mitigate flooding, improve harbors, and study the Texas coastline.

The funding includes $3.6 million for three projects in the Rio Grande Valley. These include a project in Harlingen to dredge the main channel and several other hot spots and turn basin for $2.4 million. An additional $1 million will fund pre-construction engineering and the design phase of the Brazos Island Harbor Channel Improvement Project to deepen the Brownsville Ship Channel. The remaining $250,000 will be used for a feasibility study of resaca projects in Brownsville.

USACE also approved funding for other projects around the state.​​
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Second Trinity Green multifamily underway, third in the pipeline

​DALLAS (Dallas Morning News) – Stonelake Capital Partners is building the second apartment community in Trinity Green and have filed plans for a third.  

Developers have already built a 355-unit apartment project and single-family homes in the 25-acre mixed-use community on Singleton Blvd. near Sylvan Ave. 

Construction is underway on a 324-unit apartment block on the west side of Obenchain St.

Plans for a third community call for a five-story building totaling 278 units along Singleton Blvd.

Construction started in 2015 on Trinity Green, which will include five multifamily phases with 1,500 units. ​
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Did you know you can get notified every time one of our new economic reports is released? Check out our brand-new email notification feature to get the latest economic data sent directly to your email inbox for free. 

Phillips 66 expanding Sweeny hub

​​SWEENY (Phillips 66) – ​​Phillips 66 is expanding its fracking and storage hub by 300,000 barrels per day (BPD).  

The project includes the construction of two 150,000-BPD natural gas liquids (NGL) fractionators, additional NGL storage capacity, and associated pipeline infrastructure. 

The hub currently has 100,000 BPD of fractionation capacity, 200,000 BPD of liquefied petroleum gas export capability, and access to nine million barrels of gross NGL storage capacity.

The $1.5 billion project will be operational in late 2020. 

Work starts on 727,600-sf Grocers Supply facility

​​​​​HOUSTON (REBusiness Online) – Liberty Property Trust has started work on a 727,600-sf build-to-suit distribution​​​​​​​​​ center for Grocers Supply, a division of C&S Wholesale Grocers. 

​​​It will have 40-ft clear heights, 65-ft speed bays, 75 dock doors, and parking for 211 trailers and 667 cars. 

Completion is set for second quarter 2019. 

Liberty also recently sold 34 acres adjacent to the site. 
Communication Matters video seriesIn a series of four videos, the Real Estate Center at Texas A&M University explores what it takes to be an effective communicator. The presenter is Mays Business School Executive Professor John Krajicek.

Online retailer leases space in Core5 Logistics Center

​​​​HUTCHINS (Dallas Morning News) – Digital retailer VMInnovations is leasing 416,891 sf in a new industrial building in the Core5 Logistics Center. 

VMInnovations is the first tenant in the new 754,897-sf facility on Wintergreen Rd.​ near I-45. 

Cushman & Wakefield negotiated​​ the deal with NAI Robert Lynn.

The developer, Core5 Industrial Partners, is owned by Japanese firm Kajima Corp.  

Two San Antonio multifamily assets sold

​​SAN ANTONIO (REBusiness Online) – REEP Equity has purchased two apartment communities​​ totaling 537 units. 

The properties are the 273-unit 4000 Horizon Hill and the 264-unit Northgate Village. 

JLL arranged acquisition financing through NXT Capital. ​​
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Copyright © 2018, All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Hayley Rieder. The Real Estate Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.
https://www.recenter.tamu.edu/news/recon/?Item=182
RECON for June 15, 2018RECON for June 15, 2018Bryan PopePope
2018-06-15T05:00:00Z2018-06-15T05:00:00Z

Real Estate Center Online News
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The Real Estate Center's 2016-2017 Annual Report + Calendar and the Real Estate Red Zone podcast took home Awards of Excellence at the 2018 IABC Houston Bronze Quill Awards gala last night. (Photo by Center Art Director Bob Beals.)
June 15, 2018

SABOR: San Antonio housing market heats up

​​​SAN ANTONIO (San Antonio Board of Realtors) – Last month,​​​ 3,326 homes were sold in the area, an 8 percent increase over the year, reports ​the San Antonio Board of Realtors (SABOR)​. 

Average and median home prices both grew 5 percent year over year.. The average price rose to $270,324, and the median price hit ​​​$231,900.

Inventory remained low with 3.6 months available, down slightly from the 3.7 months inventory last year. The Real Estate Center considers a six- to 6.5-month inventory a balanced market.

New listings totaled 4,532​​, over 300 more than this time last year. There were 9,531 active listings on the market. The month ended with 2,917 sales still pending.

​The majority of homes sold in the area were priced between $200,000 and $500,000, comprising 57.3 percent of the month’s market. Homes priced under $200,000 accounted for 36.6 percent, and those over $500,000 made up 6 percent of the market.

Statewide, home sales in May increased 2.7 percent for a total of 32,416 homes sold. The average price was $295,549, and the median price was $241,000. On average, homes sold in 53 days for $127 per sf.​​​

The Real Estate Center has more San Antonio housing statistics online
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Houston mortgage delinquencies surge after Harvey

​​HOUSTON (Houston Business Journal) – ​While delinquent home mortgages dropped nationwide, local mortgage delinquencies rose in March 2018, according to a CoreLogic​​​​ report. 

​​Area mortgages at least 30 days past due climbed to 7.6 percent, up from 5.3 percent in March 2017. 

“Last year’s hurricanes and wildfires continue to affect today’s default rates,” said Frank Martell, president and CEO of CoreLogic. “Serious delinquency rates are more than double what they were before last autumn’s hurricanes in Houston, Texas, and Naples, Fla. The serious delinquency rates have also quadrupled in Puerto Rico.”

Nationwide, 4.3 percent of mortgages were at least 30 days late.

Across the country, only three states—Alaska, Florida, and Texas—saw an increase in the serious delinquency rate, or those mortgages more than 90 days past due, including loans already in foreclosure. Every other state across the country saw this rate decrease.​
Real Estate Red Zone logoIn this week's Real Estate Red Zone podcast, we address some questions and comments sent to us by our constituents. We also get the scoop on the Texas economy from one of the Center's latest monthly economic reports. Tune in for all that and more. (14 min. 22 sec.) 

Bright bringing new urban center to Castle Hills

​​​​​LEWISVILLE (Fort Worth Business Press) – Bright Realty has started work on The Realm at Castle Hills, a 324-acre mixed-use development.

The $1.5 billion project will be a new urban center for the Castle Hills community on SH 121 west of Josey Ln. 

Phase I, Offices at The Realm, is a nine-story, Class A office building. It will include 235,000 sf of office space and 15,000 sf of first-floor restaurant space. Phase I will also include a park. 

The first phase is scheduled to deliver mid-2019. BOKA Powell and 505 Design designed the office building. The landscape architect is Land Design, and the general contractor is Hill & Wilkinson. Colliers International will lease the office, and Bright will lease the retail/restaurant space. 

Groundwork has also started on Phase II, a 260-unit multifamily complex with 35,000 sf of retail. Delivery is set for mid- to-late 2020. 

BOKA Powell, 505 Design, and Land Design are also on the apartment development team. Andres Construction is the general contractor.
Houston apartment complex at night
Rent growth is slowing nationally, according to a new report from Apartment List. But Houston's market tells a different story after Hurricane Harvey. Senior Editor David Jones has the details in this week's Mixed-Use blog post. 

Oak Lawn office tower pair sold

​​DALLAS (Dallas Morning News) – Oaktree Capital Group has purchased two Oak Lawn office towers from a partnership between Quadrant Investment Properties LLC and Angelo, Gordon & Co. 

​​Oaktree paid over $350 per sf for the towers, which are 80 percent leased and together total over half a million sf. ​

The ​high-rise Centrum building at Oak Lawn Ave. and Cedar Springs Rd. was purchased by the sellers in 2015. In 2016, the partnership acquired the 13-story Park Creek Place office tower next door. ​​

​​​​Eastdil Secured marketed the properties. Cawley Partners, a partner in the transaction,​ will handle leasing and management of the buildings.​
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52-building DFW, Atlanta industrial portfolio sells for $99.4 million

​​​​DALLAS (Dallas Business Journal) – Berkeley Partners has sold an 11-property, 52-building industrial portfolio totaling 1.63 million sf for $99.4 million.

The 87.3 percent-leased portfolio includes seven North Texas properties that total 1.07 million sf. The 28 warehouse and light industrial buildings are leased to 149 tenants.

The four remaining properties comprise 24 light industrial buildings in Atlanta. The 558,583-sf properties house 183 tenants. 

HFF marketed the property. It also arranged $69.2 million in acquisition financing for the new owner, a partnership led by Circle Industrial​ and the FREO Group. 
City skylineMarket Research is your gateway to data on all 25 Texas metropolitan statistical areas, from Abilene to Wichita Falls. Whether you're looking for information on an area's demographics, top employers, or housing and commercial markets, chances are you'll find it here.

Fort Worth firm buys Texas industrial portfolio

​​FORT WORTH (San Antonio Business Journal) – Locally based Mitchell Asset Group has purchased a three-building, 320,852-​sf Texas industrial portfolio. 

The buildings, which are all fully leased by Guardian​ Building Products, are:
  • 11100 Plano Rd. in Dallas, 136,882 sf;
  • 3101 Aniol​​​​​​ St. in San Antonio, 104,000 sf; and 
  • 1919 Avenue E. in Lubbock, 79,790 sf. ​​​​
Guardian has signed a 20-year leaseback agreement with the new owner. 

Kelly Hart & Hallman and Barnes & Thornburg represented Mitchell. ​
Home construction siteIn the market for Texas real estate data? Look no further. We're your one-stop shop for housing, rural land, building permit, employment, and population data.

Victory for Crow Holdings

​​HOUSTON (REBusiness Online) – Crow Holdings Industrial has broken ground on the 349,050-sf Victory Commerce Center. 

The​ property will sit near Port Houston, Beltway 8,​ and SH 225. It will have 32-ft clear heights and 185-ft truck courts. 

Delivery is slated for first quarter 2019. ​​

354 apartments flying to Love Field area

​​​​DALLAS (Dallas Morning News) – Work has started on the second phase of rental units in the West Love development near Love Field. 

Irving-based JPI is adding 354 apartments to the ​​368 already there.

The $200 million, 37-acre West Love on Mockingbird Ln. is a project of Mockingbird Venture Partners, KDC, and JPI. 
Texas Association of Realtors quote about Real Estate Center
Copyright © 2018, All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Hayley Rieder. The Real Estate Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.
https://www.recenter.tamu.edu/news/recon/?Item=181
RECON for June 12, 2018RECON for June 12, 2018Bryan PopePope
2018-06-12T05:00:00Z2018-06-12T05:00:00Z

Real Estate Center Online News
Houston skyline from lush green park
Though home prices are rising at a faster pace than incomes, Houston remains rather affordable compared to other major metros. According to Yardi Matrix,  the average mortgage payment accounts for 15 percent of the area’s median income, while rents equate to 20 percent. For the details, keep reading today's RECON. (Photo from Center files.)
June 12, 2018

Nestpick: Austin 25th most expensive city in world to move to

​​​​​BERLIN (Nestpick) – The first month's living​​​ cost in Austin is $1,979.22, making it the 25th most expensive city in the world to move to, according to the Nestpick 2018 First Month Relocation Costs Index. 

In Austin, average rent costs $1,014.61. Internet and phone are $49.05 and $70.37, respectively​​. Food and drink cost $612.​78 for the first month, and transportation costs $43.65. 

Visa fees cost $188.75 in the U.S., and processing takes 56 days, according to Nestpick. 

​Austin ranks as the fifth most expensive city to move to in the U.S. 

Dubai, UAE, had the highest first-month living expenses on the list at $4,251.68​. ​Cairo had the lowest at $656.80. 

Nestpick studied the living costs involved with relocating to 80 cities from around the world to create the index. 
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Houston multifamily market stays strong

​​​​​HOUSTON (Yardi Matrix) – Despite Hurricane Harvey, the local multifamily market remained strong in 2017​, according to Yardi Matrix.

Here are highlights from the firm's Houston multifamily report for spring 2018.
  • Rents rose 2.9 percent year over year through February. It was the first time in nearly three years that ​rents grew faster than the national average (2.7 percent). 
  • ​​​The median home value hit $206,564 in 2017, a new cycle peak, up 36.8 percent from 2009. Hurricane Harvey contributed to the local market's surge. Yardi says home prices are likely to increase. 
  • Although​ home prices are rising faster than incomes, Houston remains relatively affordable. Owning is still more affordable than renting.
  • Nearly 3,600 apartment units came online in the first two months of 2018. As of February, the metro had about 14,300 units under construction.
  • Investment sales started the year off strong with $345 million in multifamily assets changing hands year to date. 
  • Per-unit prices in the area were $99,439 through February, still well below the $151,681 national average. 
Obtaining a Texas Real Estate License coverObtaining a Texas Real Estate License is the most complete guide found anywhere to obtaining a Texas real estate salesperson's license. Everything from what activities require a license to actual application forms. This report has been reviewed by the Texas Real Estate Commission. 

JV developing 350,000-sf San Antonio industrial

​​​SAN ANTONIO (San Antonio Business Journal) – ​​​​​Brooks and Industrial Group Southwest breaks ground this week on ​​​​a 350,000-sf industrial​ facility.

The building will sit on 20 acres at the southwest corner of Goliad Rd. and City Base Landing. It will have between 400 and 900 parking spaces.

Completion is set for spring 2019. 

The facility is the first phase of the joint venture's 1.1 million-sf industrial project. At build-​out, the development will include six building sites ranging from 30,000 to 600,000 sf on between three and 45 acres. 
NewsTalk Texas logoHungry for more Texas real estate news? Then feast your eyes on NewsTalk Texas, our online news database. Here are a few of the stories you'll find there this week: NewsTalk Texas is updated each weekday, throughout the day. 

Las Colinas office tower sold

​​​IRVING (Dallas Morning News) – A partnership of Boston-based Taurus Global Real Estate Investment​ has purchased the Greenway Tower.

The ten-story, 192,000-sf office on SH 114 near MacArthur Blvd. was built in 1981. The seller, a New York investor, owned the property since 2015. 

​The tower is nearly 75 percent leased. Tenants include​ Ace Cash Express, Tekzenit, and Deval Consulting. 

HFF marketed the property.

Golden State Foods coming to Burleson

​​​​BURLESON (D Magazine) – Irvine, Calif.-based Golden States Foods broke ground on its new 200,000-sf facility in HighPoint Business Park. 

​The $70 million project will manufacture liquid food​​ ​products such as sauces, condiments, and toppings. It opens in September 2019.

​​Golden State will receive a $900,000 Texas Enterprise Fund grant after investing over $19 million and creating ​150 new jobs. ​​​​
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Construction begins on 400,000-sf industrial project

​GRAND PRAIRIE (Dallas Business Journal) – Work has started on Oakdale Logistics Center, a ​​​​​​400,000-sf warehouse and distribution​ center. 

The facility will feature 75 dock-high doors and a 32-ft clear height. It is being marketed to a single tenant.

Completion is scheduled for first quarter 2019. ​

​​Newport Beach, Calif.-based CT and Dallas-based Port Logistics Realty ​​​are the developers.

Trinsic developing 375-unit Stone Oak apartment complex

​​​​SAN ANTONIO (San Antonio Business Journal) – ​​​Dallas-based Trinsic Acquisition Co. LLC is developing Aura Stone Oak, a 375-unit apartment complex in Stone Oak.

Work on the $26.4 million project at 1703 Evans Rd. is scheduled to start in​ August. It will include an 8,100-sf leasing center. 

Dallas-based Womack + Hampton Architects LLC designed the community​. 
Communication Matters video seriesIn a series of four videos, the Real Estate Center at Texas A&M University explores what it takes to be an effective communicator. The presenter is Mays Business School Executive Professor John Krajicek.

Kubota closes on 318 acres in Denton County

​​PONDER (Dallas Morning News) – Japanese tractor manufacturer Kubota has purchased​​ 318 acres in west Denton County. 

The land will be home to Kubota Ranch, a testing and showcasing facility. 

Newland Real Estate brokered the deal. 

JLL picks up Villas at Legacy 

​​​​PLANO (Multifamily Biz) – ​​JLL Income Property Trust has acquired the 328-unit Villas at Legacy apartment community.

The property at 5301 W. Spring Creek Pkwy.​ is located within the 2,665-acre Legacy Business Park.
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Copyright © 2018, All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Hayley Rieder. The Real Estate Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.
https://www.recenter.tamu.edu/news/recon/?Item=180
RECON for June 8, 2018RECON for June 8, 2018Bryan PopePope
2018-06-08T05:00:00Z2018-06-08T05:00:00Z

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Ridgeline at Rogers Ranch, a 299-unit apartment community in San Antonio, has been sold. According to ApartmentData.com, the local multifamily market had a strong May as occupancy rose to 89.8 percent. (Photo from the San Antonio Express-News.)
June 8, 2018

Texas small land sales top $1 billion for first time

​​​​AUSTIN (Texas Association of Realtors) – In 2017, Texas small land sales volume topped $1 billion for the first time, according to the Texas Small Land Sales Report by the Texas Association of Realtors (TAR).

​​Texas small land sales volume grew 8.5 percent to 7,588 tracts sold in 2017. This is the fifth straight year Texas saw small land sales volume increase. 

During the same time frame, the average price per acre declined 2.2 percent year over year to $5,521 an acre. ​

"Statewide, the price per acre for small land sales decreased slightly from 2016 to 2017," said Center Research Economist Dr. Charles Gilliland. "This could be an indication that buyers are seeking out bargains in lower priced locations in popular regions. For example, the Hill Country saw less land sale activity in Travis County compared to Comanche County, where price per acre between the two differ."​​

The definition of a "small" land sale varies by region but is generally considered to be a land sale of 200 acres or less. In Far West Texas, 500 to 8,000 acres qualifies as a small land sale. 

The Real Estate Center has extensive ​data on rural land prices. The data can be narrowed down by region​​​ and land market areas. ​

​For information on statewide land regions, read "Magnificent Seven: Texas Land Market Regions" by Center Assistant Research Scientist Dr. Erin Kiella. ​

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Increased activity in the energy and manufacturing industries advanced the Texas economy. Improved employment opportunities expanded the workforce, translating into accelerated economic activity. Threats of retaliatory trade barriers on U.S. goods, however, pose a serious threat to Texas' current rate of growth. Read more in the latest Outlook for the Texas Economy report by Center Research Economist Dr. Luis Torres, Research Associate Wesley Miller, and Student Intern Paige Woodson. Don't forget to subscribe to email notifications. 

San Antonio apartment market has strong May

​​​SAN ANTONIO (San Antonio Business Journal) – Local apartment occupancy rose 20 basis points to 89.8 percent last month, according to ApartmentData.com.

The average price per sf rose by a cent to $1.09, while the average rent per unit increased by $5 to $928 per month. 

The average size of an area apartment increased by one sf to 850 sf. 

The rental rate has ticked up 1 percent since June 2017 as the market​ absorbed 4,885 units. Operating supply across the metro sits at 886 communities and 186,909 total units. 

At the end of May, Dallas-Fort Worth had the highest occupancy rate among major Texas markets with 91.6 percent. Austin remains the most expensive apartment market, averaging $1,207 per unit. In the last 12 months, rental rates have risen the most in Houston, 5.3 percent. Dallas has seen the most absorption since last May, with 17,313 units.​​

Real Estate Red Zone logoIt's nothing but news on this week's Red Zone podcast. On this episode, we look at a newly updated Center housing report and a new Tierra Grande digital first article about Texas land markets. Plus, we have headlines from Dallas, Houston, and Odessa. Take a listen.  (12 min. 22 sec.) 

Realtor.com: Midland nation's hottest housing market

​​​SANTA CLARA, Calif. (Realtor.com) – ​​​​For the second month in a row, Midland was the best performing housing market in Realtor.com's monthly rankings. 

According to the latest Real Estate Center data​, the median home price in Midland was $284,000 in April 2018. During that time,​ 250 homes were sold in the area. ​

No. 17 Odessa and No. 19 Dallas were the only other Texas cities in the top 20 for May 2018. 

The top five markets are No. 2 Boston; No. 3 San Francisco; No. 4 Columbus, Ohio; and No. 5 Vallejo, Calif. 

"Our latest inventory data confirm we’re in the thick of the hottest homebuying season on record, as the pace of sales nationally has officially reached a seasonal and historical high," says Javier Vivas, director of economic research at Realtor.com. "The frantic activity observed this month means homes are spending 32 fewer days on the market compared to six years ago, and 39 of the top 50 largest markets in the country are seeing the lowest days on the market since we started tracking in 2012." 

According to Realtor.com, the national median list price in May was $297,000, an 8 percent increase over a year ago. Total inventory of homes for sale increased 6 percent in May.

The website ranks metros based on time on market and the number of views garnered for listings in each city. 

A brick house getting remodeled.
According to Remodeling magazine, many of the 20 most popular remodeling projects aren't generating the resale value they once did. Center Senior Editor David says more in the latest Mixed-Use Blog post. 

Harris County, Rockport get nearly $42 million for disaster recovery

​​​AUSTIN (Texas General Land Office) – The U.S. Department of Housing and Urban Development (HUD) has awarded $35.4 million in Community Development Block Grants for Disaster Recovery (CDBG-DR) to Harris County.

The county will use the funds to buy up to 160 repeatedly flooded homes and assist families in moving out of high flood-risk areas.

According to the National Flood Insurance Program, Harris County had the highest number of properties—over 3,000—that flooded during Hurricane Harvey and have flooded at least once before.

Rockport was also awarded $6.5 million in CDBG-DR funds to help replace damaged and destroyed apartment complexes. Five million dollars will pay for the reconstruction of 50 units in Salt Grass Apartments. The remaining funds will rehabilitate 48 units in the Oak Harbor Apartments. 

The two awards come from $57.8 million in CDBG-DR funds designated for previous events and held back in 2017. 

Dr. Robert Gilmer, director with the University of Houston Bauer Institute for Regional Forecasting, writes about Houston's stormy history in a Tierra Grande article called "H-Town: Houston and Hurricanes." ​​

City skylineMarket Research is your gateway to data on all 25 Texas metropolitan statistical areas, from Abilene to Wichita Falls. Whether you're looking for information on an area's demographics, top employers, or housing and commercial markets, chances are you'll find it here.

7.7 percent of DFW home sales were flips in first quarter

​​​​​​DALLAS (Dallas Morning News) – Dallas-Fort Worth ​​ranked ninth among the cities with the most home purchases and quick resales in first quarter 2018, according to Attom Data Solutions. 

​More than 1,200 home flips were counted in the Metroplex, comprising 7.7 percent of total home purchases. Local flips were up 2 percent year over year. 

On average, North Texas flippers sold their flips for $244,811, making a gross profit of $44,811, or more than 22 percent. ​

Phoenix had the most number of flips with 2,486 in first quarter 2018. That makes up 10.3 percent of homes sold. The New York, Miami, Los Angeles, and Atlanta metros rounded out the top five​. ​

Over 48,000 homes were flipped nationally, accounting for just under 7 percent of total U.S. home purchases.​​​​​
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Chinese investors pick up Ridgeline at Rogers Ranch

​​​​​SAN ANTONIO (San Antonio Express-News) – Benimax, an Atlanta-based real estate firm largely​ backed by Chinese investors, has purchased Ridgeline at Rogers Ranch.

The 299-unit complex sits on 15.8 acres at 3231 Loop 1604. The seller, Embrey Partners, developed the community. 

Benimax took out a $39.6 million loan from Berkadia.​​​
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PPG getting Flower Mound distribution center

​​​​FLOWER MOUND (Dallas Morning News) – ​Duke Realty is developing a 449,200-sf distribution center at 1001 Lakeside Pkwy. in the Lakeside Ranch business​ park.

PPG Industries Inc. will occupy most of the building. The remaining 185,000 sf will be up for lease.​
Home construction siteIn the market for Texas real estate data? Look no further. We're your one-stop shop for housing, rural land, building permit, employment, and population data.

Paycom moving 1,000 employees to Grapevine

​​GRAPEVINE (REBusiness Online) – Oklahoma City-based Paycom Software Inc. is relocating 1,000 employees to a new office building on 14 acres off SH 121​.

​​​Construction on the new center will begin in 2019. Paycom plans ​​to occupy the facility in 2020. 

Redwood Logistics leases 100,483 sf in El Paso

​​​EL PASO (CBRE) – Chicago-based Redwood Logistics has leased 100,483 sf of industrial space at 1270​​​ Don Haskins Dr. 

CBRE represented the tenant.
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Copyright © 2018, All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Hayley Rieder. The Real Estate Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.
https://www.recenter.tamu.edu/news/recon/?Item=179

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