RECON for November 16, 2018RECON for November 16, 2018Bryan PopePope

Real Estate Center Online News
Aerial drone shot above Austin , Texas Suburb new home envelopment
The mortgage delinquency rate in Texas dropped 190 basis points year over year in third quarter 2018, according to ​​the Mortgage Banker Association's National Delinquency Survey. The rate, however, is still below pre-Hurricane Harvey levels. The details are in today's RECON. (Photo from Center files.)
November 16, 2018

Texas unemployment hits historic low . . . again. 

​​​AUSTIN (Texas Workforce Commission) – Texas’ seasonally adjusted unemployment rate fell to 3.7 percent in October, reaching its lowest level since January 1976.

According to data from the Texas Workforce Commission, the state’s seasonally adjusted unemployment rate fell from 3.8 percent in September.

The Texas economy added 32,300 seasonally adjusted nonfarm jobs last month. The state's annual employment growth was 3.1 percent in October, marking 102 consecutive months of annual growth.

​​​The Texas metro with the lowest nonseasonally adjusted unemployment rate was Midland at 2.1 percent. McAllen-Edinburg-Mission had the highest at 5.5 percent.

The mining and logging industry saw the largest seasonally adjusted growth in employment from October 2017 to October 2018, growing 17.2 percent. The information industry was the only one to lose jobs with employment dropping 2.3 percent over the year.​ The government industry was the only one that saw no change.

Improvements in the labor market maintained solid growth economic growth along the Texas-Mexico border in September 2018. Historically low unemployment, however, failed to stimulate wages and weighed on the housing market through decreased affordability. Read more in the latest Texas Border Economy report. 

The missing link? New Uptown tower in the works

DALLAS (Dallas Morning News) – Kaizen Development Partners is building a 22-story, 300,000-sf office tower on Akard St. just north of downtown.

The high-rise, called The Link at Uptown, is planned for an acre next to the new Union development. 

It will include two restaurants, outdoor terrace, fitness center, and conference​​​ center.​​

The land, which is currently occupied by a church and a vacant office building, was purchased from local restaurateur and businessman Mike Karns.

Locally based BOKA Powell is the architect. 
iPhone playing podcast on a plate by leaves
In this week's Red Zone podcast, we look at two new Real Estate Center economic reports. Plus, North Texas has the highest-average-per-person holiday budget according to a WalletHub study. Which other Texas cities made the list? Tune in for the details. (12 min. 57 sec.)

Texas economy showing signs of slowing?

DALLAS (San Antonio Express-News) – A slight decline in job growth and a cooling housing market may be signs that Texas' robust economic expansion could be starting to slow, according to a report by the Federal Reserve Bank in Dallas.

"The Texas economy is continuing to grow at a robust pace, although it's moderating somewhat from what we saw earlier in the year," said Dallas Fed Assistant Economist Christopher Slijk. "Job growth in the third quarter was 2.4 percent, which is down from the previous two quarters but still outpacing the national average."

A tight labor market has emerged as Texas unemployment hit a historical low of 3.7 percent in October.​

Job gains are still climbing, with Houston, Austin, and El Paso all growing at a 3.9 percent annualized rate.

In addition, the housing market may be experiencing some supply and demand issues that are causing it to decelerate.

According to the report, low home inventories could be constraining home sales, while rising mortgage rates—a result of the Federal Reserve’s decision to raise short-term interest rates—are affecting affordability and purchasing power.

Job growth strong in most of state's large metros graphs

MBA: Texas mortgage delinquency rate down YOY

​​WASHINGTON (Mortgage Banker Association) – The mortgage delinquency rate in Texas dropped 190 basis points year over year to 5.48 percent in third quarter 2018, according to ​​the Mortgage Banker Association's National Delinquency Survey. 

Texas' fourth quarter delinquency rate was still 43 basis points higher than the pre-hurricane second quarter 2017 results. ​​

Mortgage delinquency had hit 7.38 and 7.33 percent in third quarter and fourth quarter 2017, respectively, after Hurricane Harvey hit Texas. ​

In second quarter 2018, the state's mortgage delinquency rate was 5.36 percent. 
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Transwestern: SA office market continuing momentum

​​​​​​​SAN ANTONIO (Transwestern) – The local office market continues to lead with positive absorption into the final stretch of 2018, according to the 3Q 2018 Office Market Report from Transwestern.

New construction in the third quarter reached a five-year high at 1.4 million sf with a prelease rate of 49.1 percent.

Deliveries caused a 14.6 percent vacancy increase, on par with the five-year average of 14.3 percent.

Net absorption in the quarter was positive with a total of 117,490 sf.

Overall asking rates for the metro increased by 64 basis points over the quarter and 10.2 percent over the year, finishing third quarter 2018 at $25.23 per sf full service.
Looking for more real estate news? Our NewsTalk Texas feed has all the latest headlines. Here's a sample:

No room at the inn? Don't worry, there are more coming

DALLAS (Dallas Morning News) – As of October 2018, Dallas-Fort Worth has 6,233 hotel rooms under construction, the third-largest in the nation, according to hotel research firm STR.

That's behind only New York and Las Vegas, which had 14,295 and 7,902 rooms, respectively.

With the new additions, North Texas' hotel room supply will grow 7 percent over the year, behind only New York (12 percent).

Much of the growth is concentrated in central Dallas.

Houston, which is still rebounding from Hurricane Harvey in 2017, had the fifth-largest growth spurt in the nation, adding 5,176 rooms for an increase of 5.7 percent.​
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.

NKF arranges sale of three assets across two deals

AUSTIN (Multi-Housing News) – Newmark Knight Frank has arranged two multifamily transactions across three properties totaling 905 units​.

Atlanta-based BVT Equity Holdings sold The Estates and The Terraces to Cortland Partners. 

The Estates is a 22-building, 426-unit community on 20 acres at 10001 S. 1st St. The Terraces is a ten-building, 244-unit property on 20 acres at 10101 S. 1st St.

​Ardent Residential sold Farmhouse to The Ergas Group.​ It is a six-building, 235-unit luxury property on more than seven acres at 10801 S.​ I-35. 

$120M Ingram Hall Texas State's new engineering hub

SAN MARCOS (Austin Business Journal) – Bruce and Gloria Ingram Hall opened last week at Texas State University.

​The $120 million building on Moon St. is the new hub for the university's science and engineering programs.​ At 166,000 sf, it is the largest academic building in the university’s history.

Treanor Architects handled the design. SpawGlass Construction was the general contractor.​​​​
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Blinn Buccaneers: Arrrr you looking for a place to live?

BRENHAM (REBusiness Online) – Servitas has completed the $22.7 million Mill Creek Residence Hall serving Blinn College.

The 169,700-sf property on the corner of S. Saeger St. and Old Mill Creek Rd. features 464 two- and four-bed suites.

The property welcomed its first student residents this semester.

Stratus partners with H-E-B on New Caney project

​NEW CANEY (San Antonio Express-News) – Stratus Properties, in partnership with San Antonio-based H-E-B, has purchased 38 acres for $9.5 million.

​The development will be anchored by the grocery store and 145,000 sf of retail space. Ten acres will be reserved for apartments.

Work is expected to start in three years.
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