CENTRAL EAST TEXAS
MULTIFAMILY
RENTAL TRENDS SUPPLY/DEMAND
EMPLOYMENT ANALYTICS
AUGUST 2021
SUPPLY
RENTAL TRENDS
DEMAND
Employment Sector Current Share YOY Change
Leisure and Hospitality 11.3% 5,300 13.8%
Professional and Business Services 9.9% 3,100 8.9%
Trade, Transportation, and Utilities 17.3% 1,900 2.9%
Education and Health Services 14.8% 1,400 2.5%
Mining, Logging and Construction 6.0% 1,000 4.6%
Government 25.2% 700 0.7%
Financial Activities 4.6% 500 2.9%
Other Services 2.9% 200 1.8%
Information 0.9% 200 6.5%
National Ranking
Out of 98 Markets
81
RentGrowth [-3]74
EmploymentGrowth [+6]61
Completions [+2]Inventory by Property Status
# of Properties
371
Completed 62,940 Units
8
Under Construction 1,508 Units
9
Planned 1,125 Units
22
Prospective 2,985 Units
CENTRAL EAST TEXAS MULTIFAMILY
AUGUST 2021HIGHEST OVERALL PERFORMING SUBMARKETS LOWEST OVERALL PERFORMING SUBMARKETS
Submarket Rent Occupancy YOY Change
Waco - south $1,087 97.3% 12.1%
Killeen - east $789 96.7% 10.3%
Temple - north $924 96.7% 10.3%
Corsicana $879 95.9% 10.0%
Belton $1,198 99% 9.0%
Submarket Rent Occupancy YOY Change
Waco - west $868 95.5% 5.7%
Bryan - west $1,029 94% 4.9%
College Station - north $943 93.5% 3.6%
College Station - central $1,282 90.1% 2.5%
Bryan - east $1,025 91% 1.9%
HIGHEST PERFORMING SUBMARKET - WACO - SOUTH SUBMARKETS YEAR-OVER-YEAR RENT GROWTH
Properties 15
Units 2,333
Average Rent/Unit $1,087
Effective YOY Chg 12.1%
RENTAL RATE CHANGE BY SUBMARKET
AUGUST 2021LIFESTYLE APARTMENTS - YEAR-OVER-YEAR RENT GROWTH RENTERS-BY-NECESSITY APARTMENTS - YEAR-OVER-YEAR RENT GROWTH
HIGHEST PERFORMING SUBMARKETS - LIFESTYLE HIGHEST PERFORMING SUBMARKETS - RBN
Submarket Rent Occupancy YOY Change
Waco - south $1,308 97.1% 15.6%
Waco - central $1,310 96.9% 9.7%
Belton $1,214 99.1% 9.5%
Temple - south $1,188 96.4% 7.3%
Waco - east $1,683 97.6% 6.7%
Submarket Rent Occupancy YOY Change
Temple - east $963 94.8% 10.7%
Killeen - east $789 96.7% 10.3%
Corsicana $813 95.9% 9.9%
Temple - south $758 97.8% 9.4%
College Station - south $953 89.9% 9.3%
LOWEST PERFORMING SUBMARKETS - LIFESTYLE LOWEST PERFORMING SUBMARKETS - RBN
Submarket Rent Occupancy YOY Change
Bryan - east $1,144 91.8% 3.2%
Temple - east $1,217 95.8% 3.0%
College Station - north $1,292 86% 2.5%
College Station - central $1,824 83.9% 2.0%
Bryan - west $1,248 93.6% 1.8%
Submarket Rent Occupancy YOY Change
Waco - east $1,105 95% 5.6%
Waco - central $810 95.7% 5.1%
College Station - north $874 93.9% 4.2%
College Station - central $811 90.6% 3.6%
Bryan - east $891 90% 0.0%
WACO - SOUTH TEMPLE - EAST
Lifestyle RBN Overall
Properties 6 9 15
Units 1,107 1,226 2,333
Avg Rent/Unit $1,308 $887 $1,087
Effective YOY Chg 15.6% 7.4% 12.1%
RBN Lifestyle Overall
Properties 11 3 14
Units 1,607 554 2,161
Avg Rent/Unit $963 $1,217 $1,028
Effective YOY Chg 10.7% 3.0% 8.2%
RENTAL RATE CHANGE BY SUBMARKET AND ASSET QUALITY
AUGUST 2021OVERALL DEVELOPMENT ACTIVITY
PROJECTED COMPLETIONS AS % OF PRIOR INVENTORY - 12 MONTHS ENDING JULY 2022
Submarket Growth # Units
Bryan - west 15.4% 576
College Station - north 7.4% 340
Killeen - west 5.4% 182
Waco - south 3.6% 90
Waco - central 0.7% 54
Market Overall 2.0%
1,242 Units
National Ranking Out of 98 Markets
1,508 Units Lifestyle [+2]
76
1,236 Units Renters-by-Necessity
85
[-2]272 Units Overall [-1]
81
SUPPLY
AUGUST 2021TOP DEVELOPERS BY UNITS UNDER CONSTRUCTION LARGEST COMMUNITIES UNDER CONSTRUCTION
Developer # Units # Props
West Shore 576 2
Koontz Corporation 340 1
Catalyst Urban Development 266 1
Bluffview Real Estate 104 1
Hunt Companies 90 1
Griffin Properties of Fort Smith 78 1
NeighborWorks Waco 54 1
Project Address # Units Developer
Encino Trace 2338 Harvey Mitchell Pkwy South College Station, TX 77845
340 Koontz Corporation
Lake Walk at Traditions Phase III
8175 Atlas Pear Drive College Station, TX 77845
315 West Shore
Riverfront Lofts 414 South University Parks Drive Waco, TX 76706
266 Catalyst Urban Development
Lake Walk at Traditions Phase II
8175 Atlas Pear Drive College Station, TX 77845
261 West Shore
Villas at Robinett 4000 Robinett Road Killeen, TX 76549
104 Bluffview Real Estate
LIFESTYLE DEVELOPMENT ACTIVITY RENTERS-BY-NECESSITY DEVELOPMENT ACTIVITY
PROJECTED RBN COMPLETIONS AS % OF INVENTORY PROJECTED LIFESTYLE COMPLETIONS AS % OF INVENTORY
Submarket Growth # Units
College Station - north 77.8% 340
Bryan - west 43.9% 576
Waco - central 4.5% 54
Market Overall 5.0%
970 Units
Submarket Growth # Units
Waco - south 6.8% 90
Killeen - west 6.1% 182
Market Overall 0.6%
272 Units
SUPPLY
AUGUST 2021EMPLOYMENT COMPOSITION BY INDUSTRY SECTOR
EMPLOYMENT GROWTH TREND FOR TOTAL NON-FARM AND TWO LARGEST INDUSTRY SECTORS
EARNINGS GROWTH TREND VS NATIONAL
Employment National YOY Change 5-Year Change
Employment Sector Jobs % Share Rank Jobs Pct. Jobs Pct.
Government 97K 25.2% 54 0.7K 0.7% 1.4K 1.5%
Trade, Transportation, and Utilities 67K 17.3% 86 1.9K 2.9% 2.9K 4.6%
Education and Health Services 57K 14.8% 80 1.4K 2.5% 3.1K 5.8%
Leisure and Hospitality 44K 11.3% 76 5.3K 13.8% 3.3K 8.2%
Professional and Business Services 38K 9.9% 87 3.1K 8.9% 7.4K 24.3%
Manufacturing 28K 7.3% 80 0.1K 0.4% -1.5K -5.1%
Mining, Logging and Construction 23K 6.0% 74 1.0K 4.6% 1.5K 7.0%
Financial Activities 18K 4.6% 84 0.5K 2.9% 0.0K 0.0%
Other Services 11K 2.9% 86 0.2K 1.8% -1.6K -12.6%
Information 3K 0.9% 80 0.2K 6.5% -0.4K -10.8%
Total Non-Farm 384K 100.0% 80 14.4K 3.9% 16.1K 4.4%
EMPLOYMENT AND EARNINGS
AUGUST 2021Prior 12 Months
Sale Price [+3]
84
$88,353 Average Price/Unit
Sale Velocity [+4]
40
16 Properties Sold
Sale Volume [-3]
70
$234MM Total Sales National Ranking
Out of 98 Markets
MOST ACTIVE SUBMARKETS BY TRANSACTION VOLUME
SALE TRENDS
MOST ACTIVE BUYERS BY # PROPERTIES PURCHASED MOST ACTIVE SELLERS BY # PROPERTIES SOLD
Lifestyle RBN
# Properties 5 11
Total $MM $109 $125
Avg $/Unit $120,185 $71,696
Company # Units $MM
3CM Multifamily 2 438 $35.8
Homestead Companies 2 350 $37.5
GPI Investment 1 200 $14.8
DTI Investments 1 200 $13.3
Sapient Equities 1 200 $14.0
JCORE 1 172 $10.9
High, Robert L. 1 84 $8.1
Sells, Samuel 1 58 $2.1
Company # Units $MM
Continental Properties - Menomonee Falls, WI
2 476 $63.7
Wilbur, Robert C. 2 438 $35.8
Blue Vista Capital Group 2 350 $37.5
Performance Properties 1 220 $18.8
NALS Apartment Homes 1 200 $14.8
Hansen, Chris 1 200 $13.3
Gazal, Joseph 1 172 $10.9
LNR Partners - REO 1 143 $9.7
Submarket # Units $MM
Waco - central 2 432 $48.4
Killeen - east 5 653 $42.7
College Station - south 2 350 $37.5
Bryan - east 2 272 $29.3
Temple - east 1 232 $20.6
Waco - west 1 220 $18.8
Temple - south 1 206 $15.2
College Station - central 1 200 $13.3
Bryan - west 1 84 $8.1
Total 16 2,649 $234.0
$14,820,000 200 Units
Buyer: GPI Investment Sale Date: 07/01/2021 Remington, The
HIGHEST PRICED PREV. 3 MONTHS
TRANSACTION ACTIVITY
AUGUST 2021COVERAGE
Yardi® Matrix reports on multi-family properties of 50+ units in size.
This report for the Central East Texas metro area covers Counties: Bell, Brazos, Coryell, Mclennan and Navarro
Rental rate coverage is for Market Rate properties only. Fully Affordable properties are not included in our rental surveys and are not reported in rental rate averages.
GENERAL DEFINITIONS
Asset Class – refers to a generalized category of properties grouped by their Yardi® Matrix improvements rating
Lifestyle Asset Class – a grouping of all of the highest rated market rate properties A+, A, A- and B+
Renters-by-Necessity (RBN) Asset Class – a grouping of all of the lowest rated properties B, B-, C+, C, C- and D
Year-over-Year Change – percentage growth from last year, for several months or quarters in a time-series. This analysis will highlight an overall direction of movement for a metro.
An upward slope means an accelerating growth. A downward slope means a slowing growth. Above the line (zero) for increases, below the line for loss.
Rankings – this metro is ranked nationally among other Yardi Matrix reported metros based on a single measure. For details on any specific ranking, see section descriptions below
COMMONLY USED CALCULATIONS
DATA SOURCES
Rental Rates – are collected by Yardi® Matrix phone surveyors three times annually for 95%+ of property and unit configurations. Additionally, a representative sample of the market (between 10% and 20%) are surveyed monthly.
Occupancy Rates – are derived from U.S. Postal Service data and Yardi® Matrix phone surveys
Development Activity – information is tracked by Yardi® Matrix researchers. Construction projects are discovered through various publications and local government sources. Projects are tracked on a monthly basis. Completion dates and lease-up information are confirmed by phone calls to properties under construction.
Employment – data is sourced from the U.S. Bureau of Labor Statistics. Reported employment is generally two months behind the current date for this report.
Transaction Activity – information is tracked by Yardi® Matrix researchers. Sales are discovered through various publications and local government sources, and updates are made continuously.
Rent Growth Ranking – based on rent growth over the past year, current month.
Employment Growth Ranking – based on employment growth over the past year, latest employment month.
Completions Ranking – based on inventory growth over the past year, current month.
MARKET OVERVIEW
Calculations – total employment size (jobs) is expressed as a sum of employment in areas overlapping the reported market:
College Station-Bryan, TX | Killeen-Temple, TX | Waco, TX
EMPLOYMENT AND EARNINGS
Industry Sectors – are defined by the NAICS Supersector designations. For more information visit:
http://www.bls.gov/sae/saesuper.htm
Sector National Ranking – is based on the absolute size of the industry sector within this metro, when compared to the same industry in other metro areas nationally.
Earnings weekly vs hourly – differentiates hourly wage workers, from weekly salaried workers.
DEVELOPMENT ACTIVITY
Prospective Properties – announced construction projects, with no specific documents or government filings
Planned Properties – are in the planning stages of construction, with documents having been filed with the county or city
Under Construction Properties – have received permits for construction and broken ground.
Rankings – are based on the number of units currently under construction: Overall, Lifestyle and Renters-by-Necessity Asset Classifications
Projected Completions – Projected completions reported by Yardi® Matrix are limited to a year out and are based on properties currently under construction and their expected completion date.
Projected Completions as a % of Prior Inventory – This forward- looking metric uses projected unit completions to calculate a relative growth over the next year for a particular area.
Submarkets with a total share of market inventory below 1%
are assigned an N/A value, to avoid over-stating their significance in rankings and color-coded map displays.
Construction and Completion Counts – are reported based on property status as of the start of the month.
TRANSACTION ACTIVITY
Price – is expressed as Price/Unit as a standard measure. This is also used for national ranking
Velocity – is measured by the number of properties sold per year. This is also used for national ranking
Volume – measures the total amount of money spent in multi- family sale transactions in the prior year, expressed as millions of U.S. Dollars ($MM). This is also used for national ranking