Here at RealtyMogul.com, we keep our finger on the pulse of all things real estate, from finance to technology and everything in between. We make a point of sharing interesting articles and think pieces among RealtyMogul.com staff to help our team stay abreast of the market, and ahead of the curve.
So we thought, why not share some of these insights with you, our partners?
Got A Minute? Here’s some recommended reading with key points from the content:
- April 2016 Construction Report (Axio)
- Overall, multifamily permitting has slowed considerably over the past year as the 348,000 multifamily permits issued in the 12 months ending April were 25.3% below April 2015’s annual rate. The silver lining is this represented a 9.4% increase from March’s annual rate of 318,000 units.
- The decrease was largely seen in non-core markets as total permits in the top 10 metros was actually 25% higher than the total for the same ten metros from a year ago. Denver replaced Washington, DC in the top 10 of annual metro multifamily permit issuance in April. The number of permits granted in New York increased sharply in the year ending April 2016, with a total of 56,863 units authorized – an increase of 24,623 permits over the same period from April 2015. Houston and Seattle were the biggest decliners in permitting over the past twelve months.
- The chart below showing the single-family vs. multifamily annual permits issued over the past year:
- The article also included a fantastic chart plotting annual effective rent growth on the y-axis and jobs-to-permit ratio on the x-axis for the top 50 metros. The vertical red line denotes the long-term national average of 5.0, essentially indicating positive job growth. Riverside, Jacksonville, and Salt Lake City rank among the cities with the most favorable positions. Houston and Oklahoma City are positioned among the least favorable on the chart.
- Economy Watch: Personal Income, Spending Spike in April(CPE)
- According to the Bureau of Economic Analysis, personal income increased $69.8 billion, or 0.4 percent in April while personal consumption expenditures increased $119.2 billion (0.6% increase).
- A month-by-month snapshot of the percentage change in results is below:
- Economy Watch: GDP Growth Revised Upward (Commercial Property Executive)
- The Bureau of Economic Analysis revised its GDP estimates for the first quarter, moving it up to 0.8% - 30 basis points ahead of the 0.5% it estimated the first time round.
- The rest of the revisions below as well as the initial estimate for May:
- This Fed President Says Markets Are 'Well-Prepared' for a Summer Rate Hike (Reuters)
- Per St. Louis Reserve President James Bullard, “My sense is that markets are well-prepared for a possible rate increase globally, and that this is not too surprising given our liftoff from December and the policy of the committee which has been to try to normalize rates slowly and gradually over time.” Bullard’s comments followed the revised GDP data cited above.
- New Google Development Center Coming to Metro Detroit (Commercial Property Executive)
- Google is opening a new 53,000 SF self-driving technology development center in Novi, Michigan. The investment comes after several years of collaborations between specialists from the Greater Detroit area and Google for the Self-Driving Car Project. One of the first tasks for the new technology center will be working on the self-driving Chrysler Pacifica hybrid minivans. Recently, Google signed a partnership with Fiat Chrysler to produce autonomous vehicles and announced that the first vehicles could be on the road by the end of the year.