A weekend topic starting with National Real Estate Inventor. "The average cap rate in the multifamily sector remained flat at 5.4 percent in the fourth quarter, after falling in previous quarters, according to Barbara Byrne Denham, a senior economist at research firm Reis Inc. When looking at the top 50 metros overall, the mean price per unit leveled off in the fourth quarter. New York City and Los Angeles saw their average price per unit decline in the fourth quarter as cap rates rose."

"The luxury side of the market is a concern, according to Manus Clancy, senior managing director of applied data, research and pricing with Trepp. 'At the high end, people are concerned about oversupply and lack of demand. Wherever you see overbuilding in 24-hour cities, it wouldn’t be that big of a surprise if cap rates went up as demand tapered off,' he said."

"Student housing could experience a similar trend, Clancy notes. 'Cap rates have room to move up in student housing, especially in college towns that have added a lot of inventory. An increase of 50 to 100 basis points wouldn’t be out of the question as people start to realize how many new beds have been added.'"

From Bisnow on Texas. "The Dallas-Fort Worth market continues to absorb luxury apartments with rents above the $1K/month price point, but the capital side of the industry is beginning to sound the alarm on the prospect of oversaturation. The multifamily market remains solid and in demand, but Wall Street is definitely watching closely for signs of too much supply, Mag Mile Capital CEO Rushi Shah said."

"'Wall Street and the lending community are going to regulate the market,' said. 'They are starting to ask questions. Everybody wants to know the [multifamily] supply situation.'"

"He envisions a not-so-distant future when financiers question developers who project higher rental returns on developments out of the gate. An example of such a scenario would be an apartment development where the developer estimates rent rates of $1,500/month during underwriting when nearby apartments are leasing for $1,250.'That’s where the lenders are going to push back and say, 'We don’t agree with those numbers,' Shah said."

From The Oklahoman. "Out-of-state housing dollars cut both ways in Oklahoma. David Dirkschneider and Micheal Massad, multifamily brokers with Price Edwards & Co., point out the disconnect in the firm's 2018 year-end multifamily market summary. They're writing about capital invested in apartments, but single-family home investors sometimes discover the same unexpected challenge."

"Out-of-state dollars buy a lot of house here, or apartment house, but the generous market that let them buy-in relatively low is stingy when it comes to returns. 'One of the main complaints echoed by many investors new to Oklahoma is the inability to increase rents on a pound per pound basis compared to other markets. Whereas in markets similar to Dallas/Fort Worth, a standard $5,000 interior upgrade can often yield an instant $200 or more per month rental premium, the Oklahoma City market will not support this level of rental increase.'"

"Something about this makes me feel good about the market. Your coastal housing dollars are welcome here in flyover country — but fly-by-night investors, not so much."

The Union News Daily in New Jersey. "State Assemblywoman Holly Schepisi, a Republican who represents the 39th Legislative District, including parts of Bergen and Passaic counties, poke at a town hall meeting about the need to halt any further affordable housing development before a statewide inventory of projects could be studied."

"'Because it is going through the courts, there is absolutely no statewide record as to what’s taking place. Nobody, including DCA, HMFA or any other government agency in the state of New Jersey right now knows how many projects in total have been approved simultaneously' Schepisi said, referencing the Department of Community Affairs and the Housing Mortgage Finance Agency. 'Nobody knows exactly how many units, what type of units, whether or not we’re going to crash the entire real estate market of the state of New Jersey. We need to stop this.'"

"Hartz Mountain Industries has made an application seeking to have a 30.5-acre triangular parcel of land at 750 Walnut Ave. rezoned from office and warehouse to residential usage. The developer is seeking to build a 905-unit apartment complex on the land."

The Wall Street Journal on New York. "The New York real-estate industry is launching a frontal assault against a plan in Albany to impose a stiff annual tax on wealthy owners of part-time homes in New York City, warning it could topple an already weak housing market."

"'If they have the money to buy a $5 million apartment, which is not their prime residence, and it’s their little Manhattan getaway, they can afford the tax,' Gov. Andrew Cuomo said in recent radio interview."

"Manhattan real-estate sales fell 12% last year compared with 2017 levels, the worst sales pace since 2009. Developers and brokers warn that the new tax could drive down sales and prices further and halt construction projects."

"Vancouver and Paris have imposed extra taxes on apartments deemed to be vacant in an effort to free up apartments in a housing shortage. But New York’s effort is focused solely on the wealthy and imposes a vast new tax burden that in many cases will be five times to 10 times higher than property taxes paid by New Yorkers."

"Pam Liebman, the president of the Corcoran Group, said that if the tax goes through, it could cut property-tax revenues. She said one buyer looking at a $30 million condo decided to hold off after learning of the legislation. 'If the real-estate market suffers, everybody will suffer,' she said. 'The condos will become rentals, the construction trades will lose out. Nobody will build another building.'"