Scott Nishimura
March 31’s expiration of the federal eviction moratorium is “worrisome” for landlords, but the latest round of federal stimulus will help, and growing cities with “constrained” supply and strong demand should do well, a Texas A&M University real estate economist said.
“The short-term multifamily outlook is less than ideal,” Dr. Luis Torres, research economist at the Texas Real Estate Research Center at Texas A&M said Wednesday, in releasing the center’s Texas Quarterly Apartment Report for the fourth quarter. The report contains an updated outlook for the Dallas/Fort Worth, Austin, Houston and San Antonio markets.
“The coronavirus bill passed by Congress March 10 includes help for tenants who are behind on their rent and utility bills,” the report said. “Even with the assistance provided by the latest round of fiscal stimulus, many renters are jobless and depend on weekly unemployment benefits.”
The effects of disruptions will be lessened in strong markets, Torres said, mentioning Dallas-Fort Worth and Austin.
“The apartment market short-term outlook is worrisome due to the uncertainty surrounding the ending of the eviction moratorium, but it will be helped by the latest round of fiscal stimulus,” he said.
Highlights in the Dallas-Fort Worth market, according to the report:
- Class A apartment rent growth “continued to decline.”
- Occupancy rates increased.
- Net absorption decreased “slightly” in the last quarter, but “remained relatively high.”
- Rent payment percentage was “only 0.3% lower than fourth quarter 2019.”
- Among Texas respondents who are not current on rent, “74% of DFW households see eviction as either likely or somewhat likely in the next two months, compared with 52% nationwide. That’s another worrisome sign for both renters and landlords.”