Dan Williams

Real Estate Agent and Investor in Texas.

[Dan Williams @DWilliamsRE]

@DallasAptGP is on point here. We are seeing it in West Texas in the residential rental market. The old homes, close to @TexasTech that haven’t been through major overhauls are seeing major declines in rates or not leasing at all! Can you imagine zero rent all year?

[Barrett Linburg @DallasAptGP]

Here's something fascinating happening in the apartment market right now.

The cheapest, oldest apartments (Class C) are getting crushed right now.

But ONLY in cities that just delivered tons of new apartments.

Let me show you the numbers:

Denver: Class C rents down 13.9%
Naples: Class C rents down 13.5%
Austin: Class C rents down 13.3%
Phoenix: Class C rents down 10.5%
San Antonio: Class C rents down 7.2%
Dallas: Class C rents down 6.5%

What do all these cities have in common?

They just absorbed a massive wave of new apartments.
But here's the twist...

In cities that DIDN'T get a big supply wave?
Class C rents are actually RISING.

20 cities saw Class C rents go UP more than 3%.

19 of those 20 cities had supply BELOW the national average.

So what's going on?

It's basically musical chairs.

When a brand new luxury apartment opens up, where do those renters come from?

They don't appear out of thin air.

They move from slightly older apartments.

Those apartments now have vacancies. So they drop their rents to compete.

That pulls in renters from even older apartments.

And down the chain it goes.

Eventually it hits the oldest, cheapest apartments at the bottom.

And here's why they get hit the hardest:

People living in Class C apartments are already spending a huge chunk of their paycheck on rent.

To fill empty units, landlords have to cut prices A LOT.

Sometimes enough to attract people who couldn't afford market-rate apartments before.

It's like a waterfall effect.

The water (new supply) at the top pushes everything down.

But here's the important part:
This proves that building new apartments - even "luxury" ones - reduces rents all the way down the spectrum.

If it was just an affordability crisis, you'd see Class C rents falling everywhere.

In high-supply cities AND low-supply cities.

But we're not seeing that.

We're seeing a perfect split:

Lots of new apartments = falling Class C rents
Few new apartments = rising Class C rents

New supply at the top creates relief at the bottom.

Also: wages have been growing faster than rents for 3 straight years.

More people can afford apartments today than before.

The bottom line?
This is what happens when you actually build housing.

Supply works.

(Chart and analysis from Jay Parsons - one of the sharpest real estate economists out there)

[Dan Williams @DWilliamsRE]

@MassimoGroup Let’s go Duke! I agree with your thoughts. Would add that I would rather do more deals because of great relationships with other brokers. They know people I don’t.

[Dan Williams @DWilliamsRE]

@NEEDTOBREATHE @NEEDTOBREATHE Speaking of West Texas, why don't you guys roll on down to Lubbock and bring that incredible music with you!? I'm dying to hit up a concert soon! #Jesusandthewind

[Dan Williams @DWilliamsRE]

@CoyDavidsonCRE I don’t even know what Retwit means so does that count as new?? 🤦🏻‍♂️

[Dan Williams @DWilliamsRE]

@MassimoGroup Are you a Dukie!? If so, @nickeyhorn never told me this…

[Dan Williams @DWilliamsRE]

@MassimoGroup I had dinner with Mike in Dallas along with @nickeyhorn ! It was a stellar conversation and would love to do it again!

Keep up the good work!

[Dan Williams @DWilliamsRE]

@realEstateTrent @nickeyhorn how bout some Thai Pepper buddy!?

[Dan Williams @DWilliamsRE]

@micahlacher @BrentBeshore brought some powerful thoughts on the redemptification podcast. And gave a shoutout to @micahlacher. Hearing just a few hours of the two of you is transformative to me and my business. It’s encouraging to hear your struggles that share so much with my story.

[Dan Williams @DWilliamsRE]

@realEstateTrent 6/10 Americans have a chronic disease…sad but true.

[Dan Williams @DWilliamsRE]

@sweatystartup Where did you go for the tests? Been thinking of doing the cooper clinic in Dallas.

[Dan Williams @DWilliamsRE]

@nickeyhorn @bethanyjbabcock Second this vote…

[Dan Williams @DWilliamsRE]

@fortworthchris @realEstateTrent Absolutely loved the episode. And found myself agreeing to so much of how @realEstateTrent does business…find what you love and are good at and stay in that lane. Appreciate y’all sharing so much!

[Dan Williams @DWilliamsRE]

@bethanyjbabcock #7 & #10 hit hard for me! I used both in conversations after reading this. The property mgt side of RE is really hard to get positive reviews and I shared a voicemail with all of our agents praising them for this great message I got. Thanks for sharing this!

[Dan Williams @DWilliamsRE]

@kadewilcox Truth!

[Dan Williams @DWilliamsRE]

@WLSLighting Do you also do street lighting? retrofits for old lighting? This lot looks great!

[Dan Williams @DWilliamsRE]

@nickeyhorn @BobKnakal #bossbroker

[Dan Williams @DWilliamsRE]

@nickeyhorn Lame…

[BigBoysBlast @BigBoysBlast]

8.65% NNN Investment - Valero Credit Service Center
Texas - #CRE
https://t.co/4iP7nZajiL

[Ryan Mainville @RMainvilleLBK]

Kirby Hocutt says United’s CEO texted him earlier in the week and asked what he could do to help the program.

In case y’all were debating on where to buy your groceries this week.

[Robert Herjavec @robertherjavec]

Life doesn't reward complainers. Who wants to deal with someone who looks towards the problems rather than the solutions?

You can't control anyone's reaction other than your own. Life's not perfect - make the most of it anyways. Be an optimist.

#WednesdayWisdom