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RECON for June 1, 2021RECON for June 1, 20212021-06-01T05:00:00Z2021-06-01T05:00:00Z
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June 1, 2021

Expansions expected in Texas’ manufactured housing industry despite supply-side challenges

COLLEGE STATION (Texas Real Estate Research Center) – The latest results from the Texas Manufactured Housing Survey (TMHS) indicate industry optimism that translated into capital investment and planned expansions.

"Manufacturers are bullish with retail demand remaining strong and purchasing from their community channels picking up in 2021," said Rob Ripperda, vice president of operations for the Texas Manufactured Housing Association (TMHA). "The TMHS showed production growth moderating, but after the past two months of home deliveries being off the charts, manufacturers may have found the ceiling for current capacity. Investments in automation and expanding headcount are expected."

Survey respondents noted a contracting labor supply that weighed on hiring activity, but these issues should subside over the summer and lead to increased payrolls.

Supply-chain disruptions, however, continue to inhibit industry activity with little improvement in sight. These upstream bottlenecks are contributing to constant inflationary pressures.

"Lumber prices have come down more than 20 percent below their peak three weeks ago," said Dr. Harold Hunt, research economist at the Texas Real Estate Research Center at Texas A&M University, "but prices are still more than two and a half times higher than a year ago. Manufacturers are seeing some relief, but still nothing to write home about."

Inflation in the input market has translated to higher sticker prices for manufactured homes, but it’s unclear how much more of the cost can be passed through to consumers.

In addition to rising costs, the industry noted increased uncertainty that is likely to persist over the next six months. Despite these obstacles, Texas’ manufactured housing industry is on track for solid annual growth in terms of overall activity and market expansion. ​
Courts will solve any mysteries or disputes about the terms of an express easement. However, many such disputes can be avoided by careful negotiation and drafting. If a court can ascertain the terms intended by the parties, it will give them effect. Read "Who Knows What Easement Lurks?" by Texas Real Estate Research Center Research Attorney Rusty Adams for more.

Texas jobless claims getting closer to pre-pandemic levels

COLLEGE STATION (Texas Real Estate Research Center) – Initial jobless claims in Texas decreased to​​​​ 22,200 the week ending May 22, ​marking eight straight weeks of declines. ​This is the lowest ​level of initial unemployment claims since before the pandemic​ hit the econo​​​​​​my. 

​​About 5.1 ​​million unemployment claims have​​​ been filed since​ March 21, 2020, according ​to U.S. Department​ of Labor (DOL) data. 

Continuing unemployment claims increased ​to​ 219,500 the week ending May 15, recording two straight weeks of declines and the lowest level since March 2020.

"The levels and decreases in both initial and continuing unemployment claims indicate that the labor market is getting closer to pre-pandemic levels," said Dr. Luis Torres, a research economist for the Texas Real Estate Research Center. "Still, the Texas economy needs to gain almost 446,000 jobs to return to pre-pandemic levels." 

The number of workers receiving benefits through the pandemic unemployment assistance program, which is open to gig workers and others who don’t typically receive benefits, decreased the week ending May 22​.​​​​

​Last week, U.S. initial claims decr​eas​ed to 405,600, bringing the 62-week total to 82.6​ million. This marks four straight weeks of declines and the lowest level of the pandemic.

More people in most of Texas' major and border metros filed new unemployment claims the week ending May 15, with the exception of Houston and Brownsville. ​

"Although the majority of metros recorded an increase, the overall trend still points toward falling initial claims," said Torres.​

Using data from the DOL and the Employment and Training Administration, the Center has estimated unemployment claims for Texas' major and border metros since March 21, 2020:

  • Houston-The Woodlands-Sugar Land, 1.21 million claims;

  • Dallas-Fort Worth-Arlington, 1.17 million claims;

  • San Antonio-New Braunfels, 356,200 claims;

  • Austin-Round Rock, 300,500 claims;

  • McAllen-Edinburg-Mission, 141,600 claims;

  • El Paso, 122,300​ claims;

  • Brownsville-Harlingen, 65,500 claims; and

  • Laredo, 35,300 claims. ​​

"Increasing vaccination rates should lead to a faster recovery in the leisure and hospitality sector, possibly creating a wave of hiring that would allow thousands of laid-off workers to find jobs," said Torres.

Administrative/support/waste management/remediation services​registered the highest number of initial claims the week ending May 15. The sector was followed by retail trade, construction, and accommodation and food services.

Texas Quarterly Commercial Report: 1st Quarter 2021
Read more in our latest Texas Quarterly Commercial Report.

West Coast e-commerce distributor coming to DFW

​​GRAND PRAIRIE (Dallas Business Journal) – California-based Comptree has signed a 576,123-sf full-building leas​e at 1113 W. Oakdale Rd. 

The cross dock facility has 36-ft clear heights, 104 dock doors, 246 car parking spots, and 123 trailer parking spots. 

Dallas-based Crow Holdings developed the property, which delivered last year.

Lee & Associates represented the tenant.
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San Antonio apartment portfolio sold

​​SAN ANTONIO (REBusiness Online) – Dallas-based Kanesville Capital has purchased a two-property, 388-unit multifamily portfolio from Austin-based Wildhorn Capital.

The assets are The Blair at Bitters at 400 W. Bitters Rd. and The Henry B at 11530 Vance ​Jackson Rd. 

Both properties were 97 percent occupied at the time of sale and have pools, fitness centers, business centers, tennis courts, clubhouses, and playgrounds. 

Newmark represented​​​ the seller.​​​

Communication Matters video seriesThe Texas Real Estate Research Center's Texas Home Price Index measures price appreciation changes for residential single-family homes. It provides data for eight different Texas metros across three different price ranges.

Humble land slated for single-family rental project

​​​​HUMBLE (Realty News Report) – Houston-based Leva Living has acquired 16 acres for a single-family rental development.

Construction on the 160 units will begin immediately. ​

The site is on the east side of W. Lake Houston Pkwy. bordered by Harris County Park to the north.

Avison Young represented the sellers of the land, two local private individuals. Orr Commercial represented Leva.

Texas jobs increased modestly during April, adding 13,000 positions, a 0.1 percent gain over March. The state's employment sector recorded gains in 11 of the last 12 months. However, its growth rate was lower than the nation's 0.2 percent. Due to the jobs gained during April, the Texas economy now needs to gain almost 446,000 jobs in the coming months to return to pre-pandemic levels. Our latest Texas Employment Report has the details.

Work to start on San Marcos spec facility

​​​SAN MARCOS (San Marcos Corridor News) – Austin-based Live Oak is constructing an $11 million speculative facility called Barnes 35. 

Located on 14 acres at 320 Ba​rnes Rd., the project​ will offer nearly 135,000 sf across two Class A buildings. 

Completion is set for the end of 2022. 
Helping Texans make the best real estate decisions since 1971

Brennan picks up seven industrial buildings in Houston

​​HOUSTON (REBusiness Online) – Chicago-based Brennan Investment Group has acquired a seven-building industrial portfolio totalin​g 123,800 sf across the metro. 

The tenant roster has a weighted average lease team of 4.68 years and includes users in the industrial equipment, industrial services, consumer goods, energy, and construction industries. 

Looking for reliable rural land data for Mississippi, Louisiana, Alabama, and Texas? We've got you covered. Get the data exclusively from the Texas Real Estate Research Center.
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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 Texas Real Estate Research 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 Texas Real Estate Research 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=474

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