Friday, October 09, 2009

DFW APARTMENT DEMAND UP; OCCUPANCY, RENTS DOWN

North Texas apartment occupancy fell in the third quarter, as did its average rent when compared with October 2008 figures, according to Carrollton-based MPF Research Inc.
The apartment analyst firm reported a 4.1 percent decrease in Dallas’ average apartment rent to $772 between third quarter 2008 and 2009. Fort Worth experienced a 2.1 percent fall to $686 during the same period.
North Texas apartment occupancy came to 89.9 percent at the end of September, down from over 93 percent a year ago.
However, Dallas–Fort Worth net leasing during the third quarter increased for the first time in a year by 2,770 units.
With an estimated 17,576 apartments under construction at the end of September, about 8,500 apartments are set to open by the close of 2009.
Elsewhere, Austin’s average rent fell 6.8 percent to $829, Houston rents fell 2 percent to $783 and San Antonio rents fell 0.7 percent to $725.
BRUTON BUYS BRUTON OAKS

KV3 Bruton LP has purchased the 304-unit Bruton Oaks Apartments from LNR Property Corp.
The Class-C property is at 9901 Bruton Rd.
The transaction was negotiated by Transwestern’s Dallas office.
NORTH TEXAS HOUSING SHORTAGE IN 2010?

Even with new home sales in North Texas continuing to slow, cutbacks in new home construction over the past couple of years could result in a new-home shortage come 2010.
Builders have sold almost 13,000 more houses than they have started over the last two years, causing inventory to drop below 5,000 units, which is about a three-month supply. Compare that with the more than seven-month supply of new homes for sale in the United States as a whole.
"For homebuilders to maintain their current sales pace, they are going to have to start 30 or maybe 40 percent more homes than they are starting today," said David Brown, who heads the Dallas office of real estate analysis firm Metrostudy Inc.
Dr. Jim Gaines, research economist with the Real Estate Center at Texas A&M University, said he thinks prospects for builders to get funding for new-home construction are "severely limited, bordering on nonexistent.
"Some of the local regional banks that don't have significant existing exposure may be willing," Gaines said, "but what we're hearing is that most of the major institutions don't want to do anything."
Sales of new homes in the DFW area fell 34 percent between third quarter 2008 and the same period in 2009, with 4,163 transactions, housing analyst firm Residential Strategies reported Wednesday. - DMN & Globest