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RECON for September 4, 2020RECON for September 4, 20202020-09-04T05:00:00Z2020-09-04T05:00:00Z
RECON Real Estate Center
Eviction notice with blue mask on it
What's happening in today's RECON? CDC issues temporary halt on evictions, Texas manufactured housing outlook remains positive, statewide unemployment claims increase, and two Texas cities among best places to retire. Keep reading for the details. (Photo from Center files.)
September 4, 2020

Texas’ manufactured housing outlook positive despite pandemic

​​​​​​COLLEGE STATION (Real Estate Center) – August was a successful month for Texas' manufactured housing industry with substantial increases in production and sales, according to the latest Texas Manufactured Housing Survey. 

Labor constraints relaxed as the rate of contracted COVID-19 cases flattened after spiking in July. Supply disruptions, however, continued to contribute to increased backlogs.

“Through July, Texas manufactured housing-plant production was down 9 percent from pre-pandemic levels," said Rob Ripperda, vice president of operations for the Texas Manufactured Housing Association (TMHA), “but factories continue to see increased orders and are staffing up to get those run rates back to where they were."

The backlog has translated to higher sale prices, but rising input costs counteracted the impact on profit margins. Lumber and steel account for the largest input share for manufactured housing. Price pressures are expected to ease in coming months as production catches up to demand.

There still exists a heightened level of uncertainty surrounding the industry as manufacturers juggle constant changes in public-health protocol and the regulatory environment. These concerns, however, did not curb respondents' optimism regarding business activity and the overall outlook in the second half of 2020.

The Real Estate Center at Texas A&M University and the TMHA have partnered to produce a monthly survey of business conditions and expectations surrounding the manufactured housing industry.
Econ indicator
After declining the previous week, the Texas Weekly Leading Index rebounded, indicating economic activity continues to improve. This signifies the state's economy is on the path to recovery, albeit at a slower rate. Read our latest report for more. 

CDC issues temporary halt on evictions

​​​​WASHINGTON (New York Times) – ​​The Centers for Disease Control and Prevention has issued a national​ order temporarily halting residential evictions to contain the spread of COVID-19.

This order is more expansive than the now-expired moratorium issued in the spring. 

To be eligible, a renter must meet five requirements. 
  1. The individual must have made best effort to obtain all available government assistance for rent or housing.
  2. The renter either (i) expects to earn no more than $99,000 in annual income for calendar year 2020 (or no more than $198,000 if filing a joint tax return), (ii) was not required to report any income in 2019 to the U.S. Internal Revenue Service, or (iii) received an Economic Impact Payment under the CARES Act.
  3. They are unable to pay the full rent or make a full housing payment due to substantial loss of household income, loss of compensable hours of work or wages, a lay-off, or extraordinary out-of-pocket medical expenses.
  4. The renter is making best effort to make timely partial payments that are as close to the full payment as the individual’s circumstances may permit, taking into account other nondiscretionary expenses.
  5. Eviction would likely render the individual homeless—​or force the individual to move into close quarters in a new congregate or shared-living setting—because the individual has no other available housing options.
The order is in effect starting Sept. 4, 2020, through Dec. 31, 2020.

Last month, the Texas Supreme Court extended its emergency order on evictions until the end of September. 
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Texas unemployment claims increase as recovery remains shaky

​​​​​​​​​​​​​​​​COLLEGE STATION (Real Estate Center) – ​Initial unemployment insurance claims in Texas increased to almost 57,900 the week ending Aug. 29* after decreasing the previous week​​.

This brings the total number of initial claims to 3.36 million, according to data from the U.​S. Department of Labor (DOL).​

Continuing unemployment claims slightly decreased the week of Aug. 22 to 1.03 million.

"The combination of high numbers for both continuing claims and new claims suggests the labor market's recovery has a long road ahead," ​said Real Estate Center Research Economist Dr. Luis Torres. 

Fewer people in Texas' major and border metros filed for initial unemployment during the week ending Aug. 22.

"Despite the decrease in new claims, the absolute numbers remain around three times greater than the historical average before the pandemic hit the economy," said Torres. 

Using data from the DOL and the Employment and Training Administration, the Center estimates that from March 21 to Aug. 22 over 763,900 seasonally adjusted claims were filed in Houston-The Woodlands-Sugar Land. The metro continues to lead the state in total number of claims.

In the past 23 weeks, an estimated 726,700 claims were filed in Dallas-Fort Worth-Arlington, 231,600 in San Antonio-New Braunfels, and 198,700 in Austin-Round Rock. 

Along the border, an estimated 89,500 claims were filed in McAllen, 76,300 in El Paso, 39,500 in Brownsville, and 23,600 in Laredo.

Retail trade, administrative​/support/waste management/remediation services, accommodation and food services, and healthcare/social assistance were the sectors with the biggest unemployment claims through the week ending Aug. 22.

​​Almost 59.3 million Americans have filed initial unemployment claims in the past 24 weeks. New claims fell below one million last week to 880,600.

The slow pace of improvement signals there is still a long road ahead for the U.S. labor market.

*Note: The DOL modified the way it adjusts initial claims for seasonality, changing from the multiplicative to the additive methodology. However, the data revisions do not change the overall narrative.
Looking for more real estate news? Our NewsTalk Texas feed has all the latest headlines. Here's a sample:

Dallas, San Antonio among best cities for retirement

JERSEY CITY, N.J. (Forbes) – Dallas and San Antonio have landed on Forbes' list of 2020's best cities in which to retire. 

A major draw to Dallas is the city's relatively low median home price. As of August 2020, the median home price was $219,000, 21 percent below the national median. The city's culture is another positive for the city.

San Antonio also benefits from affordable housing. The city's median home price was $188,000, 34 percent below the national median.

Texas cities are desirable due to the state's lack of ​income and estate taxes. 

However, Forbes identified serious crime rates above the national average as a major drawback for both Dallas and San Antonio. The latter was also dinged for its lack of walkability. 

To compile the top 25 rankings, Forbes took into account living affordability, quality-of-life indicators, and factors that promote an active retirement. 
market viewer screen shotTexas Realtors' MarketViewer tool helps members and their clients quickly understand the market statistics in their area. This powerful tool is a member benefit available exclusively to Texas Realtors and local Realtor associations in Texas. Data are compiled and analyzed through a research agreement between Texas Realtors, the Real Estate Center, and all MLSs across the state. 

Wabtec consolidating into 262K-sf Fort Worth warehouse

​​FORT WORTH (Dallas Morning News) – Wabtec Corp. is leasing 262,000 sf of warehouse space in the Speedway Logistics Crossing business park to consolidate its operations.

The warehouse at 2600 Petty Pl. is owned by Indianapolis-based Scannnell Properties.

Occupancy begins​​ in the fourth quarter.

The manufacturer also operates a major locomotive and mining plant nearby at 16201 Three Wide Dr.

219K-sf Amazon delivery station slated for South Side 

​​​​​SAN ANTONIO (San Antonio Business Journal) – Trammell Crow Co. is developing a 219,000-sf, single-story warehouse at I-35 and Rischer Rd. 

The $35 million project, dubbed DSX5, will be an Amazon delivery facility. 

Amazon currently has two local facilities, DSX1 and DSX3.

Construction will begin in November and wrap up in October 2021. 
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Adkisson picks up Houston manufacturing campus

​​​HOUSTON (Realty News Report) – ​Adkisson Group has purchased a 158,700-sf manufacturing campus at 6500 Brittmoore Rd. ​

The 13-acre campus consists of eight buildings.

Lee & Associates represented​ the buyer.​​​​

Sealy & Co. acquires two-building industrial portfolio

​​​​EL PASO (REBusiness Online) – Sealy & Co. has acquired two light industrial buildings totaling 131,616 sf in Butterfield Industrial Park.

​The seller was Hager Pacific Properties.​ ​

CBRE brokered the deal. 
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Copyright © 2020, 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.

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