According to Grubb & Ellis Co.’s 2012 National Real Estate Forecast, additional growth is on tap for the U.S. multifamily sector this year, after a successful showing in 2011.  All signs point to further success in multifamily.  Vacancy levels continue to drop and effective rental rates are on the upswing. Click here for the rest of the article.

Jay Parsons and Greg Willet of Property Management Insider discuss a set forecasts that bode well for multi-family investors; projected National rent growth of 4-4.5%, occupancy growth of up to 0.5%, and specifically growth in Class B and C properties.  Click here to view the video.

Apartments are clearly the most active market, primarily because investors are confident with the product type.  The income stream is consistent – everyone needs a place to live.  While much of the housing market continued to depreciate in 2011 – Freddie Mac reported that American households lost nearly $400 billion in property value during the first nine months of the year – apartment buildings emerged as a strong arena for investment dollars.
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Strong growth of rents and occupancy levels of rental apartments have pushed some building values to record levels as Americans shift away from home ownership.

While concerns about the economy are cooling the market for most other types of commercial real estate, apartment rents and occupancies continue to be boosted by demand from millions of people who are victims of foreclosure or are unwilling or unable to buy their own homes. Click here for the rest of the article.

L5 recently closed on a 220 unit stabilized Class B apartment building located in Tyler, TX.  Fannie Mae provided a 10 year, fixed rate loan.

Richard Fisher, the president of the Federal Reserve Bank of Dallas, dropped by our offices this week and relayed a remarkable fact: Some 37% of all net new American jobs since the recovery began were created in Texas. Mr. Fisher's study is a lesson in what works in economic policy—and it is worth pondering in the current 1.8% growth moment.  Click here for more

Job growth, sales tax collections – both from business and consumer purchases – as well as automobile sales, signal that the Texas economy has emerged from the recent recession.  Click here for more.

The American economy is making a significant shift from buying to renting, and that may ultimately be good news. According to a USA Today analysis of Census data released this weekend, since 2006, the number of households that rent has grown by about 700,000 a year, while the number of households that own has fallen by about 200,000 a year. One reason is macroeconomic. The unemployment rate remains high and wages are down, meaning many people simply cannot afford to buy a house. Plus, nobody wants to take the risk of selling into a down-market. But there are also indications that Americans are electing to rent—and that is a very good sign. Click here for the rest of the article.

The long-term outlook for the apartment market -- both from a demographic and well as a public policy point-of-view -- is extremely good, a Freddie Mac executive told a conference session. "The trends favor lending and owning multi-family."  Noting that "a segment of the population was pushed into home ownership when they just weren't ready," he said that there is now a "broad realization" that ownership isn’t for everyone.  Moreover, he added, multi-family is important to urban revitalization. Click here for the rest of the article.

According to a report from apartment research firm Axiometrics, effective rents grew 4.65 percent for the year ending February 2011, the largest such gain since the firm began tracking rent fundamentals in 1996. “I think we are going to see an even better year in 2011 than we saw in 2010,” says Axiometrics president Ron Johnsey. “We are starting to see job growth come back and a near lack of new supply entering the market.” Click here for the rest of the article.