4Q19 Witten Advisory Excerpt: As household formation has exceeded deliveries, the overall housing shortage has deepened. The rental housing shortfall in blue has been most pronounced in recent years, and is still the largest relative to historical vacancy rates. However, the orange segments noting a for-sale housing shortage have grown rapidly since late 2018. This…
Details4Q19 Witten Advisory Excerpt: In the above chart, we see Charlotte in the upper right section of the graph, with very strong 4%+ growth in apartment renters, joining Austin, Nashville, Seattle, Denver, San Antonio and Portland, all at 4%+ – massive demand in these metros. And, except for Portland, all these high-demand markets also outran…
DetailsExcerpt from the 4Q19 Witten Advisory: With development capital still flowing, starts have accelerated in the past several months, as seen in the above chart. Total 5+ starts topped 370,000 (trailing 12-month total) as of November – the highest in two years, but still short of 2016’s peak. Production has increased even though construction costs…
DetailsExcerpt from the 3Q19 Witten Advisory: The above chart updates us on the homeownership rate, which edged slightly lower in 2Q19 to 64.2%, seasonally adjusted. That’s a smaller drop than in 1Q, and we’d expect Q3 to reverse to a small increase in homeownership as the benefit of low mortgage rates works through the markets. …
Details3Q19 Witten Advisory Excerpt: The supply picture varies dramatically across local markets, as shown in this graphic. Charlotte leads the nation at a 5% rate, which is down from the 6% pace at the same time last year. Salt Lake City surged into second place as its starts rate ramped past 4½%, nearly 2 points…
Details3Q19 Witten Advisory Excerpt: The above chart shows that demand had been running at a yearly rate of about 200,000 units from 2015 into 2018. However, leasing soared late last year to an annual run-rate of 250,000 and has remained near that level for the past four quarters. More importantly, move-ins have surpassed net deliveries…
Details2Q19 Witten Advisory Excerpt: With occupancy rising in so many markets, pricing power improved in most, as seen in the above table. That’s especially true for the leaders, with Las Vegas and Phoenix pushing rates by nearly 8% and gaining momentum. Atlanta increased rents by close to 5%, while the Inland Empire, Jacksonville and Orlando…
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