Episode 80 - Listen to who the Apartment Experts listen to: Greg Willett
/Greg Willett- Chief Economist
RealPage
RealPage is the leading provider of on-demand software solutions for the rental housing industry. RealPage supplies property management software to over 12,000 ownership groups that own or control over 30,000,000 residence units. They are the Facebook or Google in their industry. RealPage collects a tremendous amount of data on trends within rental housing throughout the country. Greg and his team analyze the up to the minute data. They are data miners. Greg believes that this strong rental cycle started in 2010 with huge demand. 2017 will still have great performance for the nation. Probable peak on annual rental revenue growth was in 2016. Golden age of apartments is now; but it is not realistic to expect for continuous sustainability. Rent growth is good at 3.5%. Developers are continuing to build apartments. They will deliver over 360,000 units nationally this year. Greg likes Sacramento, the Inland Empire in California, Las Vegas, Seattle, & DFW.
Texas has 4 major markets.
DFW is a step ahead than other Texas markets with rent growth at 6%. Almost 50,000 units under construction right now in DFW. Houston, is seeing some pricing concessions and rental cut on mostly A product. Austin is seeing a little slow down from the year before with rental growth at 3%. San Antonio is the most stable of the Texas markets. Rent growth is at 3%.
In 2017, Dallas will deliver over 25000 brand-new Class A units. Still big gap between A & B product; A vs B is a 40% rental price difference. Annual rent growth on value added B is 6%. DFW added 680,000 new jobs since 2010. Qualification index: Rent to Income ratio has stayed the same from 2010. Never one type of renter profile.
RealPage: https://www.realpage.com
MPF Research: https://www.realpage.com/mpf-research/
Dallas/ Fort Worth: https://www.realpage.com/mpf-research/apartment-demand-drives-dallas-fort-worth/
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