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RECON for June 10, 2022RECON for June 10, 20222022-06-10T05:00:00Z2022-06-10T05:00:00Z
RECON Texas Real Estate Research Center
A TEXAS-SIZED SANDBOX is what visitors find at Monahans Sandhills State Park in West Texas. Rainfall here averages 12.3 inches annually. (Photo by TRERC Graphic Designer Alden DeMoss)
June 10, 2022

Rising interest rates shock Texas’ manufactured housing industry

COLLEGE STATION, Tex. (Texas Real Estate Research Center) – Texas’ manufactured-housing outlook worsened for the first time during the COVID-19 pandemic recovery. According to the latest Texas Manufactured Housing Survey (TMHS), industry activity slowed for the second straight month as sales slipped and trended downward.

“The May TMHS made it clear that new-order volume is moving down for Texas manufacturers,” said Rob Ripperda, vice president of operations for the Texas Manufactured Housing Association. “Interest-rate increases are hitting retailers on two fronts, with homebuyers now facing higher mortgage payments and rate increases in inventory-lending raising retailers’ carrying costs on unsold homes.

“Those factors elevate the risk associated with ordering more homes to the retail lot. As the retail channel cools, there is still healthy demand from communities and developers whose order delivery times may now be accelerating.”

Despite the sales slowdown, Texas housing manufacturers increased production for the 12th consecutive month in an attempt to reel in historically high backlogs.

“Manufacturers still have a healthy backlog of orders to work through, and there is no indication of plans to decrease the pace of home construction, especially amid increased payrolls and capital expenditures,” said Ripperda.

The TMHS corroborated an ongoing employment expansion despite a tight labor market, forcing manufacturers to elevate wages and earnings.

Pricing pressures, however, showed signs of easing as the TMHS supply-chain disruption index reached its lowest level since the pandemic started, and the raw-materials price index reached a year-to-date low.

“Prices on critical inputs for manufactured housing are beginning to see some relief,” according to Dr. Harold Hunt, research economist at the Texas Real Estate Research Center (TRERC) at Texas A&M University. “For example, lumber prices have declined almost 60 percent from where they were a year ago.”

TMHS respondents expect several supply-side challenges to subside in the next six months, but many challenges loom.

“Interest rates will undoubtedly continue to increase as the Federal Reserve steps up its fight to control the highest inflation we’ve seen in 40 years,” said Hunt, “and there is more and more uncertainty surrounding the overall health of the economy.”

KKR inks 500K-sf lease on high-end industrial park

SAN ANTONIO (Connect CRE) – KKR has acquired The Corner Ridge Crossing, a 574,047-sf industrial park at 2214 Corner Ridge.

Facilities include one cross-deck, one front-load, and two rear-load buildings.

Hines was the buyer. JLL marketed the property.

Avanza Loop acquires 128K sf of El Paso industrial space

EL PASO (REBUSINESS) – Avanza Loop Inc. has leased 128,754 sf of industrial space at 12432 Mercantile Ave. 

Located in the El Paso Logistics Park, the project wrapped up construction in September 2021.

CBRE represented the landlord. De la Mora represented the tenant.

TIMELY DELIVERY OF YOUR TG MAGAZINE is another reason for keeping your TREC contact information up to date. The Center's flagship periodical goes to the address Texas license holders have on file with the Commission. Want to update your TG mailing address? Update your TREC account. 

Jones Hall to undergo $50M facelift

HOUSTON  (Houston Business Journal) – Jones Hall is undergoing another set of renovations following previous renovations in 2020 and 2021.

Updates include wider stairways, new acoustical and infrastructure improvements, updated and relocated restrooms, lobby improvements, and an expanded green room.

The newest phase of improvements is set to begin this month.

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Lake Travis to welcome 186-unit community in 2024

AUSTIN (Connect CRE) – Aspen Heights Partners has begun construction on a 186-unit multifamily complex near Lake Travis.

One-, two-, and three-bedroom units will be available.

The community should begin taking tenants in summer 2024.

In Other News: From the NewsTalk Texas feed
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DSV Air & Sea leases 142K sf El Paso industrial property

EL PASO (REBUSINESS) – DSV Air & Sea has inked a 142,685-sf industrial lease in southwest El Paso. 

Completed in 2021, the space is in building two of the El Paso Logistics Park. 

CBRE represented the landlord and tenant in lease negotiations.

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 Texas Real Estate Research Center, and all MLSs across the state. 

1 Hotels to make debut on Austin skyline

AUSTIN (Austin Business Journal) –1 Hotels announced plans to open a luxury hotel within a 74-story tower being constructed at 98 Red River St.

The hotel will consist of 251 rooms. The mixed-use tower will also house 352 apartments and 686,000 sf of office space.

Dallas-based Lincoln Property Company and San Antonio-based Kairoi Residential LLC will handle construction.

1 Hotel Austin will open in 2026.

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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 Wiley. The Texas Real Estate Research Center is part of the Division of Academic and Strategic Collaborations at Texas A&M University in College Station - the heart of the Research Valley. 

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