2Q19 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…
Details2Q19 Witten Advisory Excerpt: The U.S. continues to see about 1m fewer empty housing units than usual. Back in 2014, all of the shortfall was in rentals but now, as the headline in the above slide points out, the for-sale shortage is expanding notably. Thus, with low mortgage rates, now is a good time to…
Details2Q19 Witten Advisory Excerpt: The favorable overall supply/demand dynamics for the nation carried over to most local markets – with all but 7 reporting leasing rates outstripping net supply. If we went back a year, only 15 metros – rather than 36 – would have reported more demand than supply and thus rising occupancy rates. …
Details1Q19 Witten Advisory Excerpt: Total 5+ starts the (including a few condos) are holding in the mid-300Ks, but easing a bit. To be candid, we’ve been expecting apartment starts to slow down for a few years now, but that trend has not materialized, yet. We’ve seen data on rampant cost increases (especially around labor) for…
Details1Q19 Witten Advisory Excerpt: As part of that headline volatility, recent economic data has bounced around considerably. Perhaps that’s due to the gyrations in the bond and stock markets, the government shutdown, extreme weather, or 1Q biases in the collection procedures, but we don’t know for certain. What we do know is in the above…
DetailsExcerpt from the 4Q18 Witten Advisory: The above chart illustrates apartment starts rates across our markets. Here, there are two major, and diametrically opposed, trends. First, starts have fallen off in two-thirds of markets compared to a year ago. Second, starts are at all-time highs and rising in four leading mid-tier markets – Orlando, Austin,…
DetailsExcerpt from the 4Q18 Witten Advisory: As the headline in the chart points out, for the first time in three years, absorption exceeded net completions. With so many new projects in lease-up, it’s not surprising that leasing surged, hitting 260,000 units – the highest level since late 2010. What is surprising is that demand soared…
DetailsExcerpt from the 3Q18 Witten Advisory: Even with lots of new product, Orlando led the nation in rent growth, with occupancy far above its long-term average…i.e., unusually little vacancy in the existing market. On the other hand, Austin and Nashville had great demand but very little pricing power. The top 10 list on the left…
DetailsExcerpt from the 3Q18 Witten Advisory: The chart above presents the growth in 20- to 34-year-olds across the 43 major markets. Although this data was just released recently, it actually covers the period from mid-2016 to mid-2017. The green columns show the magnitude of young adult gains in each market, with Dallas ranking #1 with…
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