Jump to content
Sign in to follow this  
HNathoo

ULI emerging trends report - 2019

Recommended Posts

On 9/24/2019 at 5:34 PM, HNathoo said:

2020 report below:

 

https://www.pwc.com/us/en/asset-management/real-estate/assets/pwc-emerging-trends-in-real-estate-2020.pdf

 

No surprise - Austin took the top spot. They've pretty much been in the top 10 for the last 10 years. Houston came in disappointingly low (42) - Right below Cincinnati and ahead of Boise.

 

But we're still #3 in home building projects.

 

*sigh*

 

This is interesting:

 

Quote

Last year’s survey ranked Houston 37th and Chicago 49th in overall real estate prospects. This year’s outlook also seems underwhelming, with Houston dropping to 42nd and Chicago ticking up one place to 48th. Based upon “voting with the wallet,” however, investors believe that these two major cities are not underwhelming, but underrated. Since the start of 2016, Chicago attracted a nearly 4 percent share of U.S. real estate investment, even higher than Houston’s 2.8 percent capture rate. This places both markets in the top 10 for investment dollar volume. What’s going on? Houston is exercising bragging rights as it is proclaimed “the most diverse city in America,” edging out Jersey City and New York City for top honors. Houston has become not only more diverse, but also more cosmopolitan over the years, supplementing its dominant energy industry with health care (especially at the Texas Medical Center), life sciences, and other technology sectors. Our survey respondents, however, cannot shake the evidence of Houston’s greater-than-average economic volatility. While celebrating 2019’s pace of job change (about 80,000 added jobs on a year-over-year basis), the memory of 2016 (when job growth was flat to negative) is still vivid. Houston remains a powerful growth market, with its 10.7 percent population gain since 2010. This accounts for the multifamily sector’s leading role in 2018 and early 2019 investment—$10.8 billion, or about half of Houston’s recent acquisitions. The office sector, along with retail and industrial property, saw transactions exceed $3 billion apiece over the past 18 months. Investors are flashing a signal of confidence in further growth potential.

 

Edited by wilcal
  • Like 2

Share this post


Link to post
Share on other sites

Yeah, read the study too, @wilcal. Seems like the memories of Houston being uber-oil, and associated industries, dependent still colors many of the experts/industry peoples opinion of the city. I wasn't paying attention real estate development as much in 2016, but if Houston ran into development issues during 2016, a year in which the stock market grew at a way above average rate, and one of the only slow downs being potential fear in the market due to the election, well thats pretty terrible market instability. However, 2018 was a great year for announcing of projects in Houston, 2019 has shaped up to be even better, and 2020 has TMC going crazy. And that is reflected in the "voting with the wallet" that they mention. As @Luminare has stated a few times, 2019 is a banner-type year for the city in terms of the multitude of projects.

 

I didn't know what to make of the #3 in home building but so low on overall real estate development, other than maybe its not becoming a dense as HAIF thinks its becoming? But then lower in the study you realize home building includes apartments, elderly living high rises, condos, etc which are all densifying construction products. The nice thing is that Houston is top 30 in real estate opportunities, which shows that there can be greater development in the coming years leading to better rankings in investor demand in non-home building projects.

 

TL,DR seems to be Houston has a relatively poor history when it comes to sustaining development in less than great economic circumstances, but the sheer population explosion has attracted amounts of money that does not coincide with the industry's view of Houston. Hopefully that means meaningful development.

  • Like 3

Share this post


Link to post
Share on other sites
54 minutes ago, X.R. said:

I didn't know what to make of the #3 in home building but so low on overall real estate development, other than maybe its not becoming a dense as HAIF thinks its becoming? But then lower in the study you realize home building includes apartments, elderly living high rises, condos, etc which are all densifying construction products.

 

Well, the parking minimum restriction in midtown/eado has only be dropped for a few months.

 

Inside the loop is certainly continuing to densify (8 townhomes going up in one lot next door to me in Montrose) and those are all being counted under home building I'm sure since none share a wall. I didn't catch that they put apts in the home building, so that's good to know.

 

Development appears to be moving forward at a great pace, so I'm not too worried when comparing us to others. 

  • Like 1

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

×
×
  • Create New...