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Gen Z Homebuyers Flock To These Inexpensive Metro Areas 

Gen Z Homebuyers Flock To These Inexpensive Metro Areas  A new study by Lending Tree found Generation Z (ages 18 to 24) are purchasing homes in America's least expensive "flyover" cities while barely entertaining homeownership in pricey coastal cities.  The study analyzed new mortgages across the country's 50 top largest metros in 2021. Salt Lake City topped the list for Gen Z homebuyers, with 16.60% of mortgages. The second was Louisville, Kentucky, with 15.86% of mortgages, and Oklahoma City was third, with 15.34% of mortgages. These areas are relatively inexpensive in terms of homeownership and cost of living.  Metro areas with the lowest Gen Z homebuyers were San Francisco, New York, and San Jose. Homes in these areas are pricey, and the cost of living is expensive. Behaviors of this emerging young generation reveal they're flocking to metro areas where they can afford, possibly due to affordability constraints. The typical Gen Z homebuyer had an average credit score of around 700. They made up almost 10% of all home purchases in 2021.  Since the study was only for the 2021 year, it remains to be seen how soaring mortgage rates in 2022 have changed their buying patterns. Perhaps, this generation has an even greater motivation to seek lower-cost metro areas, partly because of affordability and remote work. Tyler Durden Fri, 05/13/2022 - 20:00.....»»

Category: worldSource: nytMay 13th, 2022

The Top 10 Most-Lucrative Markets for Real Estate Investment

The real estate market expanded as the COVID-19 pandemic progressed, leaving many with terrible financial problems. Still, homeowners and real estate investors benefited from the hard economic conditions. According to CoreLogic, homeowners with mortgages in the United States increased their equity by $1 trillion between September 2019 and September 2021. COVID-19 caused rising prices and… The post The Top 10 Most-Lucrative Markets for Real Estate Investment appeared first on RISMedia. The real estate market expanded as the COVID-19 pandemic progressed, leaving many with terrible financial problems. Still, homeowners and real estate investors benefited from the hard economic conditions. According to CoreLogic, homeowners with mortgages in the United States increased their equity by $1 trillion between September 2019 and September 2021. COVID-19 caused rising prices and homes to spend less time on the market, which has had a significant impact on the current state of real estate. That said, there are many metro regions that remain great places to invest in property due to continuous population and economic growth, especially in the current situation. Here;s a look at the top 10 most-lucrative markets to invest in real estate: Raleigh/Durham, North Carolina The Raleigh/Durham region is one of the best investment opportunities in rental real estate in the future with the high-tech employment in the area’s Research Triangle. Although one-third of Americans rent their homes, Raleigh and Durham have a 43% and 52% rental rate, respectively—due in part to the huge student population, but also to the younger generation that comes here for work. More reasons to invest in Raleigh/Durham are: Raleigh and Durham’s median home prices are $340,303 and $304,217, respectively, and have climbed significantly in the recent year. The Research Triangle offers a wide range of job opportunities; in fact, Raleigh is only second to Austin in terms of technology job opportunities. Austin, Texas Austin’s housing market is a prescription for success, with low availability, rising prices, high demand and a burgeoning job sector. Samsung, Tesla and Apple have all benefited greatly from the city’s tax incentives for enterprises that migrate here, either completely relocating (Tesla) or creating big operations (Apple). Austin has seen a 45% decrease in relocations since 2020, yet Texas continues to recruit new residents. Austin has a 4.2% unemployment rate, which is much lower than the national average. The cost of living in Austin is much lower than in San Francisco. Although rents are steadily rising, the typical monthly rent remains affordable at $1,431. Austin’s real estate market is a strong long-term investment, with property values up more than 90% since 2012. Tampa, Florida If you want to buy a home for less than the national average, remarkably any city in Florida is a decent bet, but Tampa is at the top of the list considering the amount of employment growth the Tampa urban area experienced last year. Despite COVID-19, the Tampa Bay area managed to gain over 30,000 jobs last year, fueling high home demand. The Tampa Bay area also has several tourist attractions such as Busch Gardens, an aquarium, a zoo and the Tampa Riverwalk, as well as immediate vicinity to the beach and year-round pleasant weather. Additionally, Florida has no state income tax, enabling citizens to keep more of their hard-earned money each year. Nashville, Tennessee  Nashville has consistently placed in the top 10 metro areas for job creation and economic growth in recent years and is noted for having occupations in a wide range of industries, including health care, manufacturing, tourism and music. The Wall Street Journal placed Nashville second in metro region job growth (after Austin, Texas) and first in the country for the lowest unemployment rate in early 2020. Nashville is noted for its fantastic restaurants, music scene, entertainment and nightlife, in addition to work prospects, yet the standard of living is higher in Nashville than in other metro regions such as Atlanta, Georgia, and Charlotte, North Carolina. Still, homeownership— and a happy lifestyle—is within reach for young professionals with a median income of at least $85,000, making it rare among major metro areas with interesting features. Nashville is also one of the hottest spots for young professionals, making it ideal for real estate investors looking to get into the rental market. Cleveland, Ohio Low availability is pushing average asking prices in Cleveland properties above $300,000, however, the data show that Cleveland is still reasonably inexpensive. The average selling price is substantially lower, nearly $180,000. Cleveland’s pricing may appeal to first-time homebuyers as more enterprises move to the cloud. Jobs, income and population are all increasing in Cleveland, but the fact that over half of the city’s residents are renters is particularly relevant for real estate investors. With inexpensive property prices, Ohio would appeal to both novice and experienced investors, but with a 20%+ increase in home values over 2020, those who wish to buy should do so before the end of 2022 to take advantage of developing home equity. Las Vegas, Nevada During the Global Recession, the Las Vegas property market was erratic, with the worst falls in the country. The nation’s recovery has been quick, thanks to a variety of factors such as no state taxes, low cost of living and a diverse business climate. It’s also a straightforward shift for Californians who are able to work from home. Las Vegas is seeing unprecedented population growth. According to the most recent census, its population has increased by 14.53% since 2010. The metro area has a population of roughly 2 million. In the United States, Las Vegas is now one of the most active seller’s markets. Phoenix, Arizona Home values in Phoenix have increased by almost $100,000 over the past year, from $350,000 in January 2020 to $457,00 in January 2021. This rise is largely due to a surge in demand from remote employees and retirees looking for more space for their money. “While housing prices are slightly higher than the national average, Pay scale data reveals that the cost of living in Phoenix is 5% lower than the national average, implying that your money will go further,” says Joshua Blackburn of Evolving Home. Phoenix is on the list of “top trending” real estate markets because of a six-figure price increase, but the state’s largest city has a lot to offer its inhabitants. With a growing number of tech employment, restaurants and nightlife, it’s clear to see why so many people choose to relocate to Phoenix. Dallas, Texas One of Dallas’ economic strengths is its diverse economy, which generates work for people of all income levels. Renting is more inexpensive than owning, and rental demand has surged considerably in recent years. It has one of the lowest homeownership rates in the country. Dallas’ population is booming; in fact, Frisco, roughly 20 minutes north of Dallas, is listed No. 6 on WalletHub’s ranking of the fastest-growing regions in the U.S. 9 percent of city residents rent their apartments or homes, compared to the national average of 33 percent. The average monthly rent in Dallas is $1,276, which is up 2% over the previous year. Charlotte, North Carolina Charlotte’s population and job growth have been fueled by the finance and technology industries. The city’s 25 colleges and universities also contribute to the city’s youthful population. Property taxes are lower here than in other IT clusters, making it easier to buy a home. Despite a 16.4% increase in the last year, the median house price of $302,570 remained affordable. The median apartment rent has risen by 6% to $1,259 per month. It is the single most influential banking center in the United States, after New York City, and its financial prowess draws IT investment. Denver, Colorado Denver saw a tremendous population explosion following the legalization of cannabis, and it is currently growing at a rate of over 2% per year. While the housing market is extremely competitive all through the pandemic, Colorado home prices just hit new highs in February 2021, thanks in part to the city’s lowest supply ever. Even though COVID-19 has a significant impact on the city’s employment rates, this inventory issue is one of the factors why Denver will outperform the national average for house value growth. However, if you’re willing to rent, work from home full-time or compete in a rising market, Denver is well valued the move, consistently rating at the top of multiple “best cities to live in” lists. Grant McDonald has more than three decades of experience in the real estate industry and more than a decade in the real estate finance space. He is currently Vice President—Corporate Development at 14th Street Capital. The post The Top 10 Most-Lucrative Markets for Real Estate Investment appeared first on RISMedia......»»

Category: realestateSource: rismediaMay 12th, 2022

Florida remains top destination in great COVID migration

Nationwide, 30.3 percent of Redfin.com users looked to move to a different metro area in October and November, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s down from a record-high 31.5% in the first quarter of 2021 but well above pre-pandemic levels. Homebuyer interest... The post Florida remains top destination in great COVID migration appeared first on Real Estate Weekly. Nationwide, 30.3 percent of Redfin.com users looked to move to a different metro area in October and November, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s down from a record-high 31.5% in the first quarter of 2021 but well above pre-pandemic levels. Homebuyer interest in relocating to a different part of the country accelerated as the coronavirus pandemic took hold in the first half of 2020 and reached its peak at the beginning of this year before declining slightly and leveling out. Redfin.com users are showing significantly more interest in relocating than before the pandemic, when levels stood at 25% to 26%. “At the beginning of the pandemic, remote work gave homebuyers the opportunity to consider a new location,” said Redfin Chief Economist Daryl Fairweather. “Now the labor market is incredibly tight, which means even homebuyers with in-person occupations can move somewhere new and be confident they can secure employment in their new town.” Miami was the most popular migration destination of any major U.S. metro for the fourth month in a row. Next come Phoenix, Las Vegas, Sacramento and Tampa. Two other Florida metros also appear on the top 10, with Cape Coral taking the number seven spot and North Port coming in 10th. The popularity of migration destinations is determined by net inflow, a measure of how many more Redfin.com home searchers looked to move into a metro than leave. Florida has become a particularly popular destination this year as remote workers and retirees flock to the state in search of beaches, warm weather, low taxes and more affordable housing than big cities on the East or West Coast. Net inflow into Miami has nearly tripled since this time last year, and net inflow into Tampa has nearly doubled, with New York as the number-one origin for Redfin.com users moving to both areas. “More than half of my active clients are either investors or people who are relocating, coming from places like California, Oregon, New York and New Jersey,” said Miami Redfin agent Cristina Llanos. “The relocators tend to be young remote workers who are moving to Miami for the affordability and sunshine. One client said they’re coming to Miami because they hate the snow; another wants to raise their kids in an ethnically diverse city.” San Francisco, Los Angeles, New York, Washington, D.C. and Seattle top the list of places Redfin.com users looked to leave in October and November. That’s according to net outflow, a measure of how many more Redfin.com home searchers looked to leave a metro than move in. Big, expensive coastal cities typically top the list of places Redfin.com users are looking to leave, a trend that has accelerated with the pandemic and remote-work options. Many big-city dwellers with white-collar jobs are able to work remotely from more affordable locations with a lot of recreational opportunities. The post Florida remains top destination in great COVID migration appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyDec 21st, 2021

4 Stocks to Play the Strength in the Homebuilding Industry

Although a rise in input prices, higher mortgage rates and land/labor costs pose risks, higher demand is likely to drive the Zacks Building Products - Home Builders industry. NVR, TPH, MHO, and BZH are well positioned to gain. Indeed, the U.S. housing space continues to grapple with rising raw material and labor costs. Also, disruption in the supply chain arising from the novel coronavirus outbreak may impact builders’ ability to deliver on time. That said, the rising need for more work-at-home space has been aiding the Zacks Building Products - Home Builders industry. Also, companies like NVR, Inc. NVR, TRI Pointe Group, Inc. TPH, M/I Homes, Inc. MHO, and Beazer Homes USA, Inc. BZH have been gaining from higher demand, focus on cost control, increased operating leverage, and important buyouts.Industry DescriptionThe Zacks Building Products - Home Builders industry comprises manufacturers of residential and commercial buildings. Some of the industry players are involved in providing financial services that include selling mortgages and collecting fees for title insurance agencies as well as closing services. The industry players are involved in building single-family detached and attached home communities; townhouses, condominiums, duplexes and triplexes; master-planned luxury residential resort-style golf communities; and urban low, mid, and high-rise communities. The companies are also involved in the purchase, development and sale of residential land. Additionally, the companies build and own multi-family rental properties; residential real estate; and oil and gas assets.3 Trends Shaping the Homebuilding Industry's FutureSuburban Shift: The changing geography of housing demand has been supporting builder confidence. Demand for new homes is improving in lower-density markets, including small metro areas, rural markets and large metro exurbs, as people seek larger homes to work from home amid the pandemic. The desire for more space and amenities to accommodate working and learning from home should continue to boost the U.S. housing market in the near term.Cost-Control Efforts, Focus on Entry-Level Buyers & Acquisitions: Given the accelerated raw material prices, the companies have been relying on effective cost control and focusing on making the homebuilding platform more efficient, which in turn is resulting in higher operating leverage. Homebuilders have been controlling construction costs by designing homes efficiently and obtaining construction materials and labor at competitive prices. Some homebuilders also follow a dynamic pricing model, which enables them to set the price according to the latest market conditions.Also, the majority of companies are focused on growing the demand for entry-level homes and addressing the need for lower-priced homes, given affordability concerns prevailing in the U.S. housing market. Meanwhile, industry players have been acquiring other homebuilding companies in desirable markets, resulting in improved volumes, market share, revenues as well as profitability.Supply Chain Hurdles, Tight Labor Market & Higher Rates: Continuous supply-chain issues arising from the COVID-19 outbreak and response to the health crisis in various countries have been impacting builders’ ability to deliver on time. Also, rising material costs are quite challenging. According to an Associated Builders and Contractors' latest analysis of information provided by the U.S. Bureau of Labor Statistics, there has been upward pressure on construction input prices in recent weeks. Again, the shortage of skilled labor continues to be a pressing concern. Homebuilders remain cautiously optimistic about the industry’s prospects owing to the rising input and labor costs.While supply-chain challenges are expected to continue to impact the level of housing starts and construction cycle times, home affordability issue remains a headinwd owing to accelerating home prices and mortgage rates this year. It is to be noted that the Federal Reserve expects to raise interest rates three times in 2022 as it exits from the policies enacted at the start of the health crisis. Interest rate hikes, soaring inflation and a smaller bond-buying program are pointing to higher mortgage rates in 2022. This may prove less encouraging for this rate-sensitive market, which accounts for almost 3% of the economy.Zacks Industry Rank Indicates Bright ProspectsThe Zacks Building Products - Home Builders industry is a 19-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #68, which places it at the top 27% of more than 250 Zacks industries.The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates upbeat near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential. Since March 2022, the industry’s earnings estimates for 2022 have increased approximately 4.9%.Given solid near-term prospects, we will present a few stocks that have the potential to outperform the market. But before that, it’s worth taking a look at the industry’s shareholder returns and current valuation.Industry Lags Sector and S&P 500The Zacks Building Products - Home Builders industry has lagged the S&P 500 Index and broader Zacks Construction sector in the past year.Over this period, the industry has lost 21.3% compared with the S&P 500’s decline of 3% and the broader sector’s 16.1% decline.One-Year Price PerformanceIndustry's Current ValuationOn the basis of the forward 12-month price-to-earnings ratio, which is commonly used for valuing homebuilding stocks, the industry is currently trading at 4.4 compared with the S&P 500’s 17.3 and the sector’s 10.7.Over the last five years, the industry has traded as high as 14.37X and as low as 4.37X, with a median of 9.51X, as the chart below shows.Industry’s P/E Ratio (Forward 12-Month) Versus S&P 5004 Homebuilding Stocks to Buy Right NowWe have selected four stocks from the Zacks homebuilding space that currently carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Beazer Homes:  This Atlanta, GA-based homebuilder designs, builds and sells single-family homes. BZH designs homes to appeal primarily to entry-level and first move-up homebuyers. BZH’s subsidiary, Beazer Mortgage, originates the mortgages for the company's homebuyers. The company’s Balanced Growth strategy, higher pricing, lower sales incentives and a solid backlog level are expected to improve profitability.BZH currently flaunts a Zacks Rank #1 and has an expected earnings growth rate of 48.9% for fiscal 2022. Although its shares have declined 28.5% over the past year, BZH has seen an upward estimate revision of 14.6% for fiscal 2022 earnings over the past 30 days. This depicts analysts’ optimism over the company’s prospects.Price and Consensus: BZHTRI Pointe Group: Based in Irvine, CA, this company engages in the design, construction, and sale of single-family detached and attached homes in the United States. It has been gaining from robust demand, pricing and better operating leverage. Cost-cutting initiatives implemented earlier this year and focus on entry-level buyers have been adding to the positives. Tri Pointe remains focused on improving its operational and financial performance by executing the strategic initiatives that include the continued monetization of long-dated California assets, the growth and build-out of early-stage markets, a disciplined approach to land acquisition, further improvements to cost structure across the homebuilding platform and a consistent stock repurchase program.TPH stock, carrying a Zacks Rank #1 at present, has dropped 9.6% year over year. The Zacks Consensus Estimate for its 2022 earnings has been upwardly revised by 6.8% over the past 30 days. Earnings for 2022 are expected to grow 29.6%.Price and Consensus: TPHM/I Homes: This Columbus, OH-based builder of single-family homes has been gaining from a high level of performance across all of its housing operations, and the Mortgage and Title business. Increased deliveries, greater operating leverage, a stellar backlog level and a higher return of equity have been helping the company to generate improved profits. MHO remains optimistic for 2022 given its record backlog and strong backlog margins, along with a record number of new community openings planned this year.MHO, carrying a Zacks Rank #2 at present, has slipped 29.9% over the past year. Nonetheless, the Zacks Consensus Estimate for its 2022 earnings has been upwardly revised by 5.6% over the past 30 days. This depicts analysts’ optimism over the company’s propects. Earnings for 2022 are expected to grow 21.3%.Price and Consensus: MHONVR: This Reston, VA-based homebuilder is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings, all of which are primarily constructed on a pre-sold basis. In order to serve homebuilding customers, NVR operates a mortgage banking and title services business. A disciplined business model and focus on maximizing liquidity and minimizing risks have been aiding NVR.NVR currently holds a Zacks Rank #2 and has an expected earnings growth rate of 68.4% for 2022. Its shares have lost 7.2% over the past year. That said, NVR has seen an upward estimate revision of 20.4% for 2022 earnings over the past 30 days.Price and Consensus: NVR 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVR, Inc. (NVR): Free Stock Analysis Report Beazer Homes USA, Inc. (BZH): Free Stock Analysis Report Tri Pointe Homes Inc. (TPH): Free Stock Analysis Report MI Homes, Inc. (MHO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksMay 18th, 2022

Two-thirds of aspiring millennial homeowners have nothing saved for a down payment, leaving some to rely on their parents to buy a house

66% of millennial renters who want to buy a home have nothing saved for a down payment, per an Apartment List report. Most millennials who want to buy a home don't have anything saved for a down payment.Maskot/Getty Images Two-thirds of millennial renters who want to buy a home have nothing saved for a down payment, per an Apartment List report. 21% of this group are buying a home with help from a parent. The rest will have to get to saving — or move to an affordable market, which are becoming rare. Most aspiring millennial homeowners still aren't close to affording their dreams.Of the 8 in 10 millennial renters who hope to buy a home one day, 66% say they have no savings for a down payment, according to Apartment List's 2022 Millennial Homeownership Report.Even those who do have savings are far from where they'd need to be for a typical mortgage. Only 16% have saved more than $10,000, while 18% have less than $10,000 saved. Those who do have down payment savings set aside have saved $12,773 on average.That's just 3% of the $408,100 median sales price for a house or 4% of the $299,900 median sales price for a condo as of late 2021. According to the report, only 2.3% of millennial renters have enough saved to cover the traditional 20% down payment on the median price condo.The lack of savings is the result of a generation who has struggled to build wealth between two recessions before the age of 40, massive student loan debt, and a soaring cost of living that turned into 40-year high inflation this year.But it also seems at odds with current market trends. Millennials are dominating the real estate scene, having entered peak age for homeownership during the pandemic. The generation comprised the largest share of homebuyers in 2020, at 37%, per data from the National Association of Realtors (NAR).Historically low interest rates and wealthier millennials' ability to sock away savings while the economy was shut down during the pandemic's early days enabled some to finally snag a home.And those without enough savings are affording homeownership with a bit of financial help. Twenty-one percent of aspiring millennial homeowners said in the Apartment List report they're expecting down payment assistance from their family. This highlights "how wealth in one generation can facilitate wealth in the next," per the report.Such wealth has left millennials impacting the higher-end of the market the most, Troy McMullen reported for The Washington Post. "We've never really seen this kind of impact from younger buyers before," Christie-Anne Weiss, senior vice president and associate broker at TTR Sotheby's International Real Estate in the DC metro area, told McMullen. "The sheer number of clients in their 20s and 30s looking to buy homes is making this market much more competitive, especially at the middle and higher end."But it's boxed the typical millennial looking to buy a home for the first time out of the housing market, Redfin chief economist Daryl Fairweather previously told Insider. The remaining 79% of millennial renters who don't have enough saved may only see their homeownership dreams come true if they can dramatically increase their savings or move to a more affordable market, per the Apartment List report.But more affordable areas are becoming harder to find as housing prices continue to shoot up around the country. Demand, along with a lumber shortage and an undersupply of homes since the Great Recession, catapulted the market into a historic housing crisis last year. Median housing prices climbed to a record high of $389,500 in February. Now that US home sales are falling amid higher prices and rising rates, chatter has been growing loud about a potential housing bubble. Nearly a quarter of millennials said the pandemic decreased their chances of homeownership in Bank of America Research's 2021 millennial home improvement report. And more millennials plan to rent forever than they did before the pandemic. It seems that the millennial wealth gap in housing isn't going anywhere anytime soon.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderMay 2nd, 2022

Affordable Homes in the Big City: Does $150,000 Get You Anything Anymore?

For first-time buyers on a budget, affordable homes have become increasingly scarce, especially for those looking to buy in large metro areas. Amid ongoing home price increases, Point2Homes recently conducted a study to gauge the current stock of homes less than $150,000 in the nation’s 50 most populous and desirable cities to see what this… The post Affordable Homes in the Big City: Does $150,000 Get You Anything Anymore? appeared first on RISMedia. For first-time buyers on a budget, affordable homes have become increasingly scarce, especially for those looking to buy in large metro areas. Amid ongoing home price increases, Point2Homes recently conducted a study to gauge the current stock of homes less than $150,000 in the nation’s 50 most populous and desirable cities to see what this bare minimum home price can get homebuyers in these markets. According to the results, in 46 of the 50 largest cities, homes under $150,000 represent less than 5% of all homes currently on the market. What’s more, homes under $100,000 are almost non-existent. “Unfortunately, what used to be considered decently priced homes for first-time homebuyers are now simply vanishing,” reads the report. Here are some additional key findings: In 25 of the largest U.S. cities, homes under $150,000 constitute less than 1% of all homescurrently available on the market. 5 of the most populous cities have zero homes available for $150,000or less: San Francisco (CA), Irvine (CA), Oakland (CA), Gilbert (AZ), Henderson (NV). Of the 4 cities where the median home price is higher than $1 million, only Fremont (CA)has 1% affordable homes for sale, along with San Jose (CA) where homes under this price point represented 0.3%. Saint Petersburg (FL)and Mesa (AZ) are the only two cities to have a share of more affordable homes above 10%: 12.3% and 14.8%, respectively. Top 5 cities with highest shares of listings under $150,000: Rank City Median price Share of listings under 150K 1 Mesa, Arizona $442,000 14.82% 2 Saint Petersburg, Florida $355,000 12.34% 3 Dallas, Texas $400,000 5.94% 4 Tampa, Florida $360,000 5.43% 5 Honolulu, Hawaii $870,000 4.92% The takeaway: “With home prices breaking new records on a near-weekly basis, it’s no wonder that the stock of luxury and ultra-luxury homes for sale is on the rise,” says Andra Hopulele, author of the Point2Homes report. “However, this means more and more Americans are stuck renting month after frustrating month due to a lack of more affordable options.” “In the truly expensive, most-wanted urban hubs,” Hopulele notes, “$150,000 means almost nothing. And sometimes, even cities that are in the same state and separated by just a few miles can display great disparities. For example, in Mesa Arizona, $110,000 buys you a two-bedroom, two-bathroom, 1,560-square-foot home, whereas less than 10 miles away in Gilbert, , you’d need almost $285,000 to buy the cheapest two-bedroom, two-bathroom home currently on the market.” Click here to read the full report The post Affordable Homes in the Big City: Does $150,000 Get You Anything Anymore? appeared first on RISMedia......»»

Category: realestateSource: rismediaApr 21st, 2022

Suburbia is standing up to Wall Street investors who are scooping up houses, "bullying people out with cash offers," and making the neighborhood "shabbier"

Homeowners are creating rules to keep big rental investors from buying up all the houses, WSJ reports. They say big investors make bad neighbors. Some associations believe that rental investors buying homes in their neighborhoods has made it difficult for local families to buy homes.RapidEye/Getty Images Suburban homeowner associations are blocking big investors from buying up their neighborhoods.  They say that the investors don't maintain their properties, and keep families from buying homes.  Investors make up an increasingly large portion of the real estate market, contributing to high prices.  Homeowners are banding together against a common enemy: Investors. That's according to a recent article by The Wall Street Journal's Will Parker and Nicole Friedman, who reported that groups of neighborhood volunteers are thwarting companies looking to buy single-family homes, using their power as homeowner associations to regulate how homes are used.  Some of these HOAs believe that rental investors buying homes in their neighborhoods has made it difficult for local families to buy, the groups told the Wall Street Journal, and led to a decline in home maintenance, which has made their neighborhoods less desirable.To combat these purchases, homeowners will often place caps on the number of homes that can be rented in a particular neighborhood, or require that potential tenants be vetted by an association board. Both tactics stymie the attempts of large landlords to rent the spaces. "They're coming in, and they're basically bullying people out with cash offers," Chase Berrier, president of the Whitehall Village Master Homeowners Association in North Carolina, told The Wall Street Journal. He said that some of the homes in the subdivision owned by investors in his Walkertown neighborhood now look shabbier, and that their owners are difficult to contact to resolve problems.Corporate landlords have been overtaking US suburbs in recent years, pricing out many first-time homebuyers — who are usually younger — and fueling the difficulties Gen Z and millennials have had seeking homeownership. According to one recent analysis, investors bought a third of all US homes for sale in January, the highest portion in at least a decade. And some analyses show that these companies are mainly overtaking communities of color. The strategies adopted by suburban homeowner associations for single-family homes are already common in apartment communities in metropolitan areas like New York City's, in a way that can often be exclusionary to Black and brown homebuyers. Suburban neighborhoods adopting these strategies to keep out powerful investors is not only novel, as the Wall Street Journal reported — it's flipping the playbook. Investors have been purchasing up a storm — and keeping potential homebuyers out  As investors flock to the real estate market, they're pricing out locals and disrupting housing ecosystems. In 2021, investors purchased a record $64 billion worth of homes — the most in at least two decades, according to Redfin. As they looked to cash in on growing housing and rental prices, investors bought a record 18.2% of the US homes purchased during the third quarter of 2021, up from 11.2% in 2020."Increasing home prices fueled by an intense housing shortage have created opportunities for investors to reap big profits," Sheharyar Bokhari, Redfin senior economist, said in a housing study. "Those same factors have pushed more Americans to rent, which also creates opportunities for investors because investors typically turn the homes they purchase into rentals and can now charge higher rents."According to Redfin, average monthly rents rose 10.7% year over year in September, representing the fastest growth in at least two years. For homeowners, the median home sale price increased 13.9%, pushing housing affordability further out of reach for prospective buyers. "With cash-rich investors taking the housing market by storm, many individual homebuyers have found it tough to compete," Bokhari said. For many Americans, the increase in housing costs has been devastating. Millions of homebuyers have been priced out of the market since the start of the year, and renters have been forced to decide whether or not to move or pay increases as much as 40%.In Atlanta, which Redfin says has the highest market share of investors, rents have increased as much as 30% while home prices have risen nearly 25% year over year. With more than 32% of home purchases belonging to investors, developer activity has contributed to housing affordability plummeting in the Big Peach."At some point, there's not going to be anywhere for people to go," Courtney Anderson, a law professor at Georgia State University, told the Atlanta Journal-Constitution.Anderson's fear is shared by many Americans. As investors overcrowd neighborhoods across the country, local organizations are gathering to protect their communities and keep residents from displacement. Whether or not they stand a chance against big investment firms has yet to be seen – but their calls have been heard.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderApr 21st, 2022

Suburbia is declaring war on Wall Street investors who are scooping up houses, "bullying people out with cash offers," and making the neighborhood "shabbier"

Homeowners are creating rules to keep big rental investors from buying up all the houses, WSJ reports. They say big investors make bad neighbors. Some associations believe that rental investors buying homes in their neighborhoods has made it difficult for local families to buy homes.RapidEye/Getty Images Suburban homeowner associations are blocking big investors from buying up their neighborhoods.  They say that the investors don't maintain their properties, and keep families from buying homes.  Investors make up an increasingly large portion of the real estate market, contributing to high prices.  Homeowners are banding together against a common enemy: Investors. That's according to a recent article by The Wall Street Journal's Will Parker and Nicole Friedman, who reported that groups of neighborhood volunteers are thwarting companies looking to buy single-family homes, using their power as homeowner associations to regulate how homes are used.  Some of these HOAs believe that rental investors buying homes in their neighborhoods has made it difficult for local families to buy, the groups told the Wall Street Journal, and led to a decline in home maintenance, which has made their neighborhoods less desirable.To combat these purchases, homeowners will often place caps on the number of homes that can be rented in a particular neighborhood, or require that potential tenants be vetted by an association board. Both tactics stymie the attempts of large landlords to rent the spaces. "They're coming in, and they're basically bullying people out with cash offers," Chase Berrier, president of the Whitehall Village Master Homeowners Association in North Carolina, told The Wall Street Journal. He said that some of the homes in the subdivision owned by investors in his Walkertown neighborhood now look shabbier, and that their owners are difficult to contact to resolve problems.Corporate landlords have been overtaking US suburbs in recent years, pricing out many first-time homebuyers — who are usually younger — and fueling the difficulties Gen Z and millennials have had seeking homeownership. According to one recent analysis, investors bought a third of all US homes for sale in January, the highest portion in at least a decade. And some analyses show that these companies are mainly overtaking communities of color. The strategies adopted by suburban homeowner associations for single-family homes are already common in apartment communities in metropolitan areas like New York City's, in a way that can often be exclusionary to Black and brown homebuyers. Suburban neighborhoods adopting these strategies to keep out powerful investors is not only novel, as the Wall Street Journal reported — it's flipping the playbook. Investors have been purchasing up a storm — and keeping potential homebuyers out  As investors flock to the real estate market, they're pricing out locals and disrupting housing ecosystems. In 2021, investors purchased a record $64 billion worth of homes — the most in at least two decades, according to Redfin. As they looked to cash in on growing housing and rental prices, investors bought a record 18.2% of the US homes purchased during the third quarter of 2021, up from 11.2% in 2020."Increasing home prices fueled by an intense housing shortage have created opportunities for investors to reap big profits," Sheharyar Bokhari, Redfin senior economist, said in a housing study. "Those same factors have pushed more Americans to rent, which also creates opportunities for investors because investors typically turn the homes they purchase into rentals and can now charge higher rents."According to Redfin, average monthly rents rose 10.7% year over year in September, representing the fastest growth in at least two years. For homeowners, the median home sale price increased 13.9%, pushing housing affordability further out of reach for prospective buyers. "With cash-rich investors taking the housing market by storm, many individual homebuyers have found it tough to compete," Bokhari said. For many Americans, the increase in housing costs has been devastating. Millions of homebuyers have been priced out of the market since the start of the year, and renters have been forced to decide whether or not to move or pay increases as much as 40%.In Atlanta, which Redfin says has the highest market share of investors, rents have increased as much as 30% while home prices have risen nearly 25% year over year. With more than 32% of home purchases belonging to investors, developer activity has contributed to housing affordability plummeting in the Big Peach."At some point, there's not going to be anywhere for people to go," Courtney Anderson, a law professor at Georgia State University, told the Atlanta Journal-Constitution.Anderson's fear is shared by many Americans. As investors overcrowd neighborhoods across the country, local organizations are gathering to protect their communities and keep residents from displacement. Whether or not they stand a chance against big investment firms has yet to be seen – but their calls have been heard.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderApr 21st, 2022

More Housing Market Cracks: Continued Demand Slide Leads To Accelerating Price Cuts

More Housing Market Cracks: Continued Demand Slide Leads To Accelerating Price Cuts Almost one year ago, Redfin CEO Glenn Kelman spoke with Bloomberg Radio about the state of the US housing market, and said that the ongoing surge in home prices could subside. Kelman said the housing market was in a frenzy, with most houses selling above the asking prices, which has never happened before, although he warned that "after record gains in the first quarter, some home prices are likely to stall." That statement illustrated vividly that even the people who are supposed to know their industry the best, are often just as clueless as the rest of us, and in the subsequent months US home prices continued to rise dramatically, hitting an all time high by late 2021 at which point they plateaued around a 20% Y/Y clip. Then again, maybe Kelman was not wrong, just early. In a blog published this week, Redfin analyst Tim Ellis shares more evidence that the housing market has indeed topped, and that early indicators of homebuyer activity have faltered further as mortgage rates shoot up above 5%, pushing demand lower - a predictable outcome which we previewed a month ago in "Housing Affordability Is About To Crash The Most On Record" - and which means that sellers have no choice but to follow with more price cuts. Below we excerpt from Redfin's latest observations on the slowing housing market. Housing Market Update: Demand Slips, Pushing More Sellers to Drop Asking Prices Early-stage homebuying demand continues to falter this spring as new listings fell 7% from a year earlier, the average 30-year fixed mortgage rate shot up to 5% and the median asking price climbed to $397,747, sending the typical homebuyer’s monthly payment up 35% year over year to an all-time high of $2,288. Here are the key early indicators that tell us demand is softening at a time of year it typically springs up: Fewer people searched for “homes for sale” on Google—searches during the week ending April 9 were down 3% from a year earlier. The seasonally-adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other home-buying services from Redfin agents—has declined 3% in the past four weeks, compared to a 5% increase during the same period last year. The index was up 2% from a year earlier. Touring activity from the first week of January through April 10 was 23 percentage points behind the same period in 2021, according to home tour technology company ShowingTime. Mortgage purchase applications were down 6% from a year earlier, while the seasonally-adjusted index increased 1% week over week during the week ending April 8. For the week ending April 14, 30-year mortgage rates rose to 5%—the highest level since February 2011. This was up from 4.72% the prior week, and the fastest three-month rise since May 1994. We’re also closely watching the accelerating share of home listings with price drops, which is climbing at its fastest spring pace since at least 2015, another sign that demand is not meeting sellers’ expectations. “There really is a limit to homebuyer demand, even though the market over the past few years has made it seem endless,” said Redfin Chief Economist Daryl Fairweather. “The sharp increase in mortgage rates is pushing more homebuyers out of the market, but it also appears to be discouraging some homeowners from selling. With demand and supply both slipping, the market isn’t likely to flip from a seller’s market to a buyer’s market anytime soon.” Despite these early signs that the market is slowing, it still feels as hot as ever for homebuyers, with new records set for home-selling speeds and price escalations, based on data going back to 2015. Forty-five percent of homes that went under contract found a buyer within one week, and the average home that sold went for 2.4% above its asking price. “If a home is on the market for more than a week, people start to wonder why or assume something is wrong with it,” said Redfin Boston real estate agent James Gulden. “Every offer I’ve written recently has faced multiple offers, but some people have finally had enough of all the competition and are pulling out. They’re becoming less willing to make a risky offer in a high-stress bidding war situation.” Key housing market takeaways for 400+ U.S. metro areas: Unless otherwise noted, the data in this report covers the four-week period ending April 10. Redfin’s housing market data goes back through 2012. Data based on homes listed and/or sold during the period: The median home sale price was up 17% year over year to a record high of $389,178. The median asking price of newly listed homes increased 14% year over year to $397,747. The monthly mortgage payment on the median asking price home rose to a record high of $2,288 at the current 5% mortgage rate. This was up 35% from a year earlier, when mortgage rates were 3.04%. Pending home sales were up 1% year over year, and have rolled over. New listings of homes for sale were down 7% from a year earlier, the 21st-straight annual decline. 58% of homes that went under contract had an accepted offer within the first two weeks on the market, an all-time high. This was up from the 55% rate of a year earlier. Homes that sold were on the market for a median of 18 days, down from 26 days a year earlier. On average, 3.2% of homes for sale each week had a price drop, with 13% dropping their price in the past four weeks. That’s up from 10% a month earlier and 9% a year ago. The share of listings with price drops is climbing faster during this time of year than they have since at least 2015. Typically during this time of year the share of homes with price drops is slightly down month over month. The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, rose to an all-time high of 102.4%. In other words, the average home sold for 2.4% above its asking price. This was up from 100.4% in 2021. Tyler Durden Mon, 04/18/2022 - 14:50.....»»

Category: worldSource: nytApr 18th, 2022

California"s Vanished Dream, By The Numbers

California's Vanished Dream, By The Numbers Authored by Joel Kotkin via RealClear Investigations, Even today amid a mounting exodus among those who can afford it, and with its appeal diminished to businesses and newcomers, California, legendary state of American dreams, continues to inspire optimism among progressive boosters. Laura Tyson, the longtime Democratic economist now at the University of California at Berkeley, praises the state for creating “the way forward” to a more enlightened “market capitalism.” Like-minded analysts tout Silicon Valley’s massive wealth generation as evidence of progressivism’s promise. The Los Angeles Times suggested approvingly that the Biden administration’s goal is to “make America California again.” And, despite dark prospects in November’s midterm elections, the President and his party still seem intent on proving it. But most Californians, according to recent surveys, see things differently. They point to rising poverty and inequality, believe the state is in recession and that it is headed in the wrong direction. Parting with the state’s cheerleaders, the New York Times’ Ezra Klein, a reliable progressive and native Californian, says the Golden State’s failures are “making liberals squirm.” Reality may well be worse than even Klein admits. In a new report for Chapman University, my colleagues and I find California in a state of existential crisis, losing both its middle-aged and middle class, while its poor population faces dimming prospects. Despite the state’s myriad advantages, research shows it plagued by economic immobility and inequality, crushing housing and energy costs, and a failing education system. Worse than just a case of progressive policies creating regressive outcomes, it appears California is descending into something resembling modern-day feudalism, with the poor and weak trapped by policies subsidized by taxes paid by the rich and powerful. California may conjure images of Rodeo Drive and Malibu mansions in the public imagination, but today the state suffers the highest cost-adjusted poverty rate in the U.S. The poor and near-poor constitute over one third – well over 10 million – of the state’s residents according to the Public Policy Institute of California. Los Angeles, by far the state’s largest metropolitan area, and once a magnet for middle class aspirations, has one of the highest poverty rates among major U.S. cities. A United Way of California analysis shows that over 30 percent of residents lack sufficient income to cover basic living costs even after accounting for public-assistance programs; this includes half of Latino and 40 percent of black residents. Some two-thirds of noncitizen Latinos live at or below the poverty line. While many Californians are fleeing, some are decidedly less bearish. “In California, there is this idea of ‘Oh, we care about the poor,’ but on this metric, we are literally the worst,” Stanford’s University’s Mark Duggan, principal author of an economic comparison of California with Texas, told the San Francisco Chronicle. The state’s poverty and associated dysfunction are on full display in leading cities like Los Angeles and San Francisco, where a large underclass now inhabits the streets – the once-iconic locales having become poster children for urban dysfunction. Beyond massive homeless camps, crime has become so bad that the LAPD has warned tourists it can no longer protect them. San Francisco, meanwhile, suffers the highest property crime rate in the country. Businesses like Walgreens have shut down numerous Bay Area locations due to “rampant burglaries.” Homelessness and crime increasingly dominate the state’s political discourse, particularly in these two deep blue bastions. California also faces growing inequality. By the Gini index, a measure of the distribution of income across a population, California has the third-highest inequality behind New York and Louisiana, and has experienced the fifth largest expansion of inequality since 2010, according to American Community Survey data. California also suffers the widest gap between middle- and upper-middle-income earners of any state. In leading cities, homeless encampments line streets such as San Francisco's Golden Gate Avenue. AP Once among the most egalitarian regions in the country, Silicon Valley has become among the most segregated places in the country. CityLab has described the technology hub as “a region of segregated innovation,” a trend becoming more pronounced, according to recent research. Silicon Valley now boasts its own underclass of those who clean its buildings and provide food service. Nearly 30 percent of its residents rely on public or private financial assistance. Similarly, according to the Brookings Institution, San Francisco, the technology industry’s most important urban center, has experienced the most rapid growth in inequality among the nation’s large cities in the last decade. The California Budget and Policy Center has named the city first in California for economic inequality; the average income of the top one percent of households in the city averages $3.6 million, forty-four times the average income of the bottom 99 percent, which stands at $81,094 in a city and state with a high cost of living. The situation is worse elsewhere in the state. Over the past decade more than 80 percent of California jobs paid under the median income, and most under $40,000 annually, a poverty wage in California. Worse yet, as demonstrated in our analysis, California lags all peer competitors – Texas, Arizona, Tennessee, Nevada, Washington and Colorado – in creating high wage jobs in fields like business and professional services, as even tech growth begins to shift elsewhere. The biggest losers in California have been those industries that historically provided the best opportunities for working-class people – manufacturing, construction, energy – as well as agriculture, the state’s historic economic powerhouse. On a per capita basis, California builds only a fraction of the housing compared to its main rivals, while corporate new investment, suggests a new Hoover Institution study, has shriveled to a rate one-tenth Texas and one-sixteenth that of Ohio. The state’s climate change policies, however well-intentioned, have had a particularly devastating impact on manufacturing. California’s “renewable energy” push has generated high energy prices and the nation’s least-reliable power grid, crippling an industry reliant on fossil fuels and a stable electric supply. The state fell to 44th in the country in manufacturing sector employment growth last year; its industrial new job creation has lagged competitors such as Nevada, Kentucky, Michigan and Florida. Even without adjusting for costs, no California metro ranks in the U.S. top ten in terms of offering well-paying blue-collar jobs, notes The New York Times. But four – Ventura, Los Angeles, San Jose, and San Diego – sit among the bottom ten. Under California’s green agenda, electricity has skyrocketed while its grid has become less stable. Foundation for Research on Equal Opportunity As the environmentalist Breakthrough Institute summarizes it, the state’s climate agenda has created a “new Green Jim Crow era” keeping more people, particularly minorities, in poverty. Housing policy has also hurt most those who can least afford it. California’s state planning policies aim to reduce urban sprawl – the shift to locales where costs are lower and the state is gaining migrants. The heavily minority Inland Empire, which has little political influence, now has more people than the San Francisco metropolitan area, which dominates state politics, but the former is unable to reverse any of these policies. Despite expectations by planners that limiting suburban growth would reduce prices for the masses and greenhouse emissions by encouraging density, studies in Vancouver, Canada and several other locations have shown the opposite; they associate densification with higher land and housing prices. California has the highest urban density of any state, yet suffers the second highest housing costs and rents of any state except Hawaii. On this issue, some media coverage appears to have been influenced by the pro-density preferences of tech titans like Mark Zuckerberg. Striving, largely minority middle- and working-class families bear the brunt of such policies. According to a recent American Enterprise Institute survey, California is home to six of the nation’s worst markets for first-time homebuyers. It would take more than 100 years for the median-income household to save for a mortgage on a median-priced home in San Francisco, Los Angeles or San Jose. The state now ranks 49th in homeownership rate, producing far less new housing than competitive regions like Arizona, Texas or Florida. A recent study by economist John Husing found not one unionized construction worker can afford a median-priced home in any coastal California county. Unable to buy their own home, many working class families find themselves paying extraordinarily high rents, with more than half of all renters shelling out in excess of 30% of household income, the traditional definition of an outsized housing burden. Nearly four in ten California households meet or exceed this level. Not surprisingly, one quarter are contemplating a move elsewhere. High rents and house prices, along with low wages, also have produced the nation’s highest level of overcrowding. Nor has densification brought the purported environmental benefits cited by California’s champions at Brookings and in the Biden Administration; the pro-density Terner Center projects that if California’s cities followed the density guidelines, at best the state would see a 1% reduction in emissions. Manifest Education Failures Historically education was seen – particularly among traditional liberals – as critical to upward mobility for poor and working-class people. Yet for decades the state’s schools have underperformed national norms, particularly for poor students. Since 1998, California has ranked, on average, 46th in 8th-grade reading and mathematics subject-area performance on the National Assessment for Educational Progress (NAEP), the only comparable assessment between states nationwide. This includes comparisons with demographically similar states like Texas, which spends less money per student. Today, almost three of five California high schoolers are not prepared for either college or a career; the percentages are far higher for Latinos, African Americans, and the economically disadvantaged. Among the 50 states, California ranked 49th in the performance of poor, largely minority, students. San Francisco, the epicenter of California’s woke culture, and site of the recent recall of several far-left school board members, suffers the worst scores for African Americans of any county in the state. These students are often unprepared for college. At California State University – where ethnic studies programs are now mandated – the need for remedial courses or 40 percent of freshmen demonstrates a low level of preparedness in such basic skills as reading comprehension, writing and mathematics. Some educators have decided to eliminate this problem by eliminating remedial classes. California’s model curriculum, which focuses on how to “build new possibilities for post-imperial life that promotes collective narratives of transformative resistance,” may only exacerbate these problems by inculcating attitudes antithetical to those necessary to succeed in a highly competitive capitalist economy. Many California educators from the highest reaches of academia down to the grade school level champion “equity” in education over developing hard math skills and fostering excellence. Even basic life skills such as being on time are eschewed: The San Diego Unified School District will no longer count such scruples as turning in work on time in grading and evaluation. It may reduce the penalties for cheating. This is justified as a way of redressing racial issues, as many of the malefactors (like most California students) are from disadvantaged minority groups. Most Californians support charter schools, including nearly half of all Democrats, and three chapters of the Southern California NAACP – San Diego, San Bernardino and Riverside. The state’s powerful teachers unions, and the Democrats they back, oppose such education alternatives. Tech titans, once focused on improving schools, now seem less engaged. This may make sense given the extent to which tech relies on global talent rather than recruiting locally. In 2018, three-quarters of the tech workforce in the Bay Area was foreign-born, a majority on short-term non-immigrant visas. The answer to many of the problems plaguing California’s struggling lower classes has been to throw more of the upper class’s money at them. Michael Bernick, a former director of the state’s Employment Development Department, says “The culture for much of California, driven by state politics, is one of benefits (and now guaranteed income), not a jobs strategy or expectation.” California is unlikely to be devoting the state’s surplus –driven largely by stock and property gains among the wealth – as Texas and other states do, to attracting businesses. Instead, as Bernick suggests, the preference has been to boost the welfare state, as it did in initiating record-setting stimulus payments during the pandemic. It is now contemplating handing out debit cards to cope with high energy prices created by the state’s environmental policies. California’s technology industry consists of staunch funders of the states’ progressive Democrats. They may themselves be obsessed workaholics and living testaments to entrepreneurial capitalism, but Greg Ferenstein, who interviewed 147 digital company founders, says most believe that “an increasingly greater share of economic wealth will be generated by a smaller slice of very talented or original people. Everyone else will increasingly subsist on some combination of part-time entrepreneurial ’gig work ‘and government aid.” Many prominent business people, including those who made their fortunes in California such as Zuckerberg, Pierre Omidyar, Elon Musk, and Sam Altman, founder of the Y Combinator, have embraced the notion of a "guaranteed wage," that would cover most critical bills. Democratic Presidential candidate Andrew Yang’s campaign was built around this concept. In the interim, people are fleeing the state. Demographer Wendell Cox notes that since 2000, California has lost 2.6 million net domestic migrants, more than the current populations of San Diego, San Francisco and Anaheim combined. In 2020, California accounted for 28 percent of all net domestic outmigration in the nation, about 50 percent more than its share of the US population. California’s population growth has fallen below the national average for the first time, and the state appears to have even possibly lost population the last two years. The pandemic seems to have accelerated this movement. Last year California was home to three of the five large regions over one million with the highest percentage population loss – San Francisco, San Jose and Los Angeles. Both San Francisco and Los Angeles school districts face large decreases in enrollment; the LA district, the state’s largest, projects a 20% cut in this decade. This outmigration trend cannot be dismissed as “white flight.” An analysis of minority population flows shows that Latinos and African Americans are settling increasingly west of the Sierra, particularly in the south, Texas, and parts of the Midwest. Similarly, the foreign-born population – so critical to the state’s economy – has declined in Los Angeles over the past decade, and stagnated in the Bay Area while swelling in places like Dallas-Ft. Worth, Austin, Houston, Nashville and even midwestern cities like Columbus, Des Moines and Indianapolis. Simply put, California is in danger of losing its youthful mojo. Many of those leaving, according to IRS data, come from young, middle and working class families. When these people leave, birthrates plummet. Los Angeles and San Francisco rank last and second-to-last in birthrates among the 53 U.S. major metropolitan areas. Among California's big metros, only Riverside/San Bernardino exceeds the national average in women aged between 15 and 50 with births. California’s total fertility rate, long above the national average, is now the nation’s 10th lowest. Los Angeles County alone has lost three quarters of a million people under 25 over the past twenty years. California today is as old as the rest of the country and aging 50 percent faster than the national norm. It is rapidly replacing the surfboard with a walker. *  *  * Joel Kotkin is a Presidential Fellow in Urban Futures at Chapman University in Orange, Calif. Tyler Durden Fri, 04/15/2022 - 22:15.....»»

Category: worldSource: nytApr 15th, 2022

High inflation has homebuyers relocating to more affordable areas in record numbers

In the first quarter, 32.3% of Redfin.com users nationwide looked to move to a different metro area, according to the technology-powered real estate brokerage......»»

Category: topSource: foxnewsApr 15th, 2022

Black Americans Own Disproportionately Small Share of Homes in Largest U.S. Cities

When discussing the issue of racial income and wealth inequality as it relates to the U.S. housing market, Housing & Urban Development (HUD) Secretary, Marcia Fudge recently noted that the homeownership gap between Black and white households has actually increased in the U.S. since landmark Civil Rights victories in the late 1960s. Today experts say […] The post Black Americans Own Disproportionately Small Share of Homes in Largest U.S. Cities appeared first on RISMedia. When discussing the issue of racial income and wealth inequality as it relates to the U.S. housing market, Housing & Urban Development (HUD) Secretary, Marcia Fudge recently noted that the homeownership gap between Black and white households has actually increased in the U.S. since landmark Civil Rights victories in the late 1960s. Today experts say the COVID-19 pandemic has only further exacerbated the issue. In a recent study highlighting a key economic area in which Black Americans are often disadvantaged, LendingTree analyzed U.S. Census Bureau data on homeownership rates for Black residents in the nation’s 50 largest metropolitan areas. Specifically, the study compared the share of homes owned by those who identify as Black to the population of Black residents in each metro. The study found that Black Americans own a disproportionately small share of homes in these metros. Key findings:  Black Americans make up 15% of the population across the nation’s 50 largest metros, but they only own 10% of owner-occupied homes. For comparison, white Americans across the nation’s 50 largest metros account for 64% of the population—yet they own 76% of owner-occupied houses. Black Americans tend to make up a larger share of the population in metros with the largest differences between the percentage of Black owner-occupied homes and the portion of the population that identifies as Black. In contrast, areas with smaller Black populations often see more proportionate homeownership rates among Black residents. San Jose, Calif., has the smallest difference between the share of homes owned by Black residents and the share of the population that’s Black. In the metro, 2.41% of the population identifies as Black, while Black homeowners own 1.38% of owner-occupied homes. That’s a difference of 1.03%. Los Angeles and Salt Lake City have the next-smallest differences at 1.31% and 1.32%. Memphis, Tenn., has the biggest difference between the share of homes owned by Black residents and the share of the population that’s Black. In Memphis, Black residents make up 47.37% of the population—the largest among any race in the metro. However, they own only 35.05% of occupied housing units in the metro, resulting in a disparity of 12.32%. Just ahead of Memphis at the bottom are Milwaukee (9.96% disparity) and New Orleans (9.35%). Contributing factors: The LendingTree study highlights several potential contributing factors. For example, according to the latest Census Bureau estimates, the median household income for those who identify as Black is $45,870. That’s almost $30,000 less than the $74,912 median income for white households. Black Americans also generally have less household wealth than other races; often have greater difficulty accessing traditional credit and banking services and are more likely to be denied a mortgage than members of other races, the report states. Further, the legacies of historical policies meant to disenfranchise Black homebuyers, like “redlining,” have had a long-lasting impact that still contributes to the disproportionately low homeownership rates among Black Americans today. The report additionally notes that while these examples can shed some light on why homeownership rates are relatively low for Black Americans, they’re not all the reasons why a person who identifies as Black may struggle to become a homeowner. And, ultimately, a wide variety of socioeconomic factors continue to drive this unfortunate trend. The takeaway: “Unfortunately, the issue of low homeownership rates among Black Americans is unlikely to be resolved anytime soon,” said Jacob Channel, LendingTree senior economic analyst. “This is especially true given that the COVID-19 pandemic has had a disproportionately large economic impact on Black Americans, and may make it even more difficult for some who identify as Black to buy a home. Even if they own a home, many Black Americans still face housing-related challenges. For example, 32% of Black homeowners reported that they felt their home was undervalued by an appraiser in a recent LendingTree survey.” To read the full report, including tips for black homebuyers and breakout data from the metro rankings, click here. The post Black Americans Own Disproportionately Small Share of Homes in Largest U.S. Cities appeared first on RISMedia......»»

Category: realestateSource: rismediaApr 7th, 2022

BHGRE Brokers Identify Potential Trends in Spring Selling Season

Better Homes and Gardens Real Estate LLC (BHGRE) is thinking spring—spring selling season that is. A recent roundtable discussion with several BHGRE brokers revealed that historic seasonality patterns have been affected by today’s market conditions. Most notably, record low inventory levels could provide an impact on this year’s spring selling season, the company reported. “Real […] The post BHGRE Brokers Identify Potential Trends in Spring Selling Season appeared first on RISMedia. Better Homes and Gardens Real Estate LLC (BHGRE) is thinking spring—spring selling season that is. A recent roundtable discussion with several BHGRE brokers revealed that historic seasonality patterns have been affected by today’s market conditions. Most notably, record low inventory levels could provide an impact on this year’s spring selling season, the company reported. “Real estate professionals are highly adaptable and the last two years of the COVID-19 pandemic have proven that our industry is resilient in the face of change,” said Sherry Chris, president & CEO, BHGRE. “As we enter the third spring selling season since COVID-19 emerged, the BHGRE brand wanted to explore what our affiliates were experiencing in different parts of the country. The broker panel observed that strict seasonality is seeing signs of change. However, it is important to understand all of the underlying factors contributing to this significant shift in real estate market dynamics. What is clear is that a lack of inventory stemming from stalled new development is setting the industry up for continued disruption. Identifying and overcoming barriers to building new homes will be critical in meeting the incredible demand for housing that now exists in our country. In the short term, buyers and sellers can follow the advice of their agents on how to best position themselves for success.” Timing trends:  According to the brokers interviewed, the timing of the spring selling season varies. In Northern New England, the spring selling season typically kicks off in March, but with only 30 days of supply, there aren’t enough homes to create a seasonal sales “spike” this year. People also appear to be waiting out January and February to see COVID-19 cases go down to reduce potential exposure. In Portland, Oregon, spring selling season usually starts at the beginning of the year, although it was observed that 2022 activity was stalled by the omicron variant surge. Brokers are seeing some traces of seasonality, but it’s not full-blown. People will move as soon as the opportunity presents itself, which means for sellers, there’s never a bad time to sell anymore, according to BHGRE’s analysis. “With just one week of inventory, an uptick in seasonal activity is not possible here in Portland,” said Danielle Bade, principal broker and vice president, BHGRE Realty Partners & BHGRE Northwest Living. “Homes sell as soon as they come on the market. People aren’t waiting for a traditional season to enter the market.” “Despite having low inventory in our market, we may still see a surge across Sonoma and Lake County, California as some real estate professionals push their sellers to bring their homes onto the market to get the most value,” noted Randy Coffman, president, BHGRE Wine Country Group in Northern California. Pricing Fluctuations: According to the brokers interviewed for BHGRE’s report, in Northern New England, prices are still considered moderate compared to urban areas. However, they are increasing, which puts pressure on local residents looking to buy in-market. In Lehigh Valley, Pennsylvania, which sits between New York City and Philadelphia, home prices are lower compared to the major cities. In Northern California, prices are flattening out somewhat but are still higher than expected due to low inventory. In Portland, Oregon, prices are not expected to come down this year. Despite double-digit price increases, the brokers interviewed are confident this is not a real estate bubble. Appreciation rates could moderate a bit, but prices won’t come down. Panelists reported they are staying attuned to consumer tolerance for rising prices, and seller greed, which could cool the market. “This is an entirely different dynamic from 2008, which was driven by lax lending,” said Chris Masiello, CEO of BHGRE The Masiello Group in Northern New England. “This is a supply and demand issue that is being guided by demographics: millennials and baby boomers are orbiting the market for the same housing stock. These first-time homebuyers and downsizing buyers are vying for the same properties.” “There is a potential for prices to plateau and then return to a more normal appreciation rate,” said Jack Gross, owner of BHGRE Cassidon Realty in Lehigh Valley. “We might also see buyer frustration cause people to leave the market because they are tired of not getting a home. But consumer confidence in the housing market is high, which makes them open to overpaying.” “We are starting to see home price increases flatten out somewhat, but it is still higher than expected due to the low inventory,” added Coffman. Shifts in Buyer Mindsets: Brokers interviewed are seeing an increasing sense of urgency from consumers to “win” the home, bidding up the price beyond normal appreciation rates. This means they are paying now for what a house could be worth in two years. As a result, the phrasing has changed from “I bought a home” to “I won the bid.” And for those unable to “win,” buyer fatigue has kept people out of the market in recent months, BHGRE reported. Another shift noticed by the brokers who participated in the roundtable is that people are not interested in homes requiring significant sweat equity. Instead, they are more focused on their careers and don’t want to invest significant time or effort into fixing up an outdated house. Further, the brokers observed that living with COVID-19 has worn down buyers. Depending on the region, consumers are either tired of the coronavirus and moving forward with plans or still in a holding pattern created by health anxiety. “Despite home prices increasing about 30% in Central Florida, the market is not slowing down, although the lack of inventory is discouraging for buyers, particularly first-time buyers who are contending with rising rents,” said Dana Hall-Bradley, broker/owner, BHGRE Fine Living in Celebration, Florida. Seller Mindset: Participating brokers report that current inventory conditions are giving new meaning to the term “seller’s market.” In some cases, sellers are becoming irrational on pricing, insisting on list prices well above current market values. In other instances, sellers are getting more cautious with pricing too high. However, brokers report that homes are still getting multiple offers over list price when priced right. According to Masiello, “For most sellers, the biggest deterrent is ‘Where will I go?’” Brokers shared that people in Oregon are going to Arizona for some sun, often retiring a few years earlier than planned. Urban dwellers in California are moving north, while people in Pennsylvania are heading south to Florida. People in New England are selling their family homes and taking up primary residence in their second or summer home until a suitable primary home becomes available. Others are downsizing to a tiny home or RV. “We are hearing more from sellers that it’s not always about the highest price—offers with contingencies are less desirable,” said Bade. Interest Rates: The brokers interviewed observed that the increase in interest rates from 3.5% to 4% is not a real financial driver. They noted that they do not envision it having a substantial negative impact on the market. It may, however, be an emotional one as people get off the fence and try to beat the market. Interestingly, the participating brokers are noticing a shift in the historical relationship between inflation and interest rates, which is now inverted. “Buyers may initially see the rates as higher but remember—historically, they are still low, and there is bound to be a little give and take,” said Coffman. “Prices go down a little; rates go up. It evens out.” Migration: According to NAR, as more people can work from home, city dwellers are moving to the suburbs. Participating brokers report that those who come from New York City can sell a $2.5M townhome and move into a $600,000 4,000 square foot Colonial in Lehigh Valley. Similarly, people who move to rural Vermont from Manhattan still earn city wages. As a result of migration, primary markets are becoming saturated, making secondary markets the main focus, and tertiary markets secondary. As inbound moves from higher-priced markets drive up prices, the dramatic double-digit price increases serve to rise all tides. The brokers interviewed believe that local residents get an economic lift as more people migrate to the area, bringing their city spending habits and salaries, likely creating more job opportunities in the next 12-18 months. Brokers also report seeing a shift in priorities as people are no longer tied to a geographic area for their job. “We are seeing heavy migration patterns from the metro DC/Maryland regions, along the coastal corridor to Northern New England, including Massachusetts, New Hampshire and Vermont,” remarked Masiello. “In lesser populated, rural areas, people are now buying property and land that hasn’t transferred in 30 years or more, which is creating a lot of title issues.” New Construction:  According to participating brokers, permit logjams, supply chain issues, and lack of builder confidence have created a dire shortage of new homes. COVID notwithstanding, significantly fewer new homes are being built while populations are increasing. For example, between 1950 and 2010, the number of new homes built in each decade ranged from 10 million to 14.5 million. But from 2010 to 2020, just 7 million homes were built, while the number of new households formed during that same time period exceeded 10 million. The brokers interviewed advise communities to decide how to help the new inventory issue, which requires cooperation at the local level. “Overcoming the inventory shortage will be the responsibility of local planning boards,” said Masiello. “They need to assess the needs and act. We are not seeing the supply chain issue or labor shortages as bad as they were last year. There is so much cash in the market now just looking for a place to go to work to get a return.” “Developers got caught in 2008, so they are not eager to jump back in,” said Gross. “In Lehigh Valley, it takes 3-5 years to approve a subdivision, which is a significant deterrent when you can get an immediate return in the stock market.” Tips for Sellers:  Even in today’s tight market, it is still important to put your best foot forward, so don’t skimp on staging, home repairs and cleanliness. Prepare your home for the market by hiring a professional cleaning crew and professional handyman/repair service to perform paint touch-ups, fixture upgrades, etc. This will encourage buyers to make their very best offers and result in fewer days on the market. Offering a home warranty can help encourage buyers to waive their inspection. Ensure all potential buyers are financially qualified. Consider the terms offered as just as critical as the price. A cash offer with fewer contingencies may be better than a higher offer with many contingencies. Tips for Buyers:  Get pre-approved. Have a substantial down payment saved. If you can pay cash, do so and refinance later. Be flexible on the closing date. Always make your best offer first and resist the temptation to hold back your effort upfront. Be willing to waive the inspection. Have the means to make an “additional down payment” if the appraisal comes in low. Line up short-term interim housing between sales to put yourself in a better position to compete in a multiple offer situation. To learn more, visit www.bhgre.com. The post BHGRE Brokers Identify Potential Trends in Spring Selling Season appeared first on RISMedia......»»

Category: realestateSource: rismediaMar 25th, 2022

Rent Prices Break Record Highs Again in January

Single-family renters are continuing to bear some of the brunt of inflation, which is bad news for them but good news for landlords. According to CoreLogic’s latest Single Family Rent Index (SFRI), U.S. single-family rent prices came out of the gates strong in 2022, increasing 12.6% year-over-year in January. This is significantly higher gains in […] The post Rent Prices Break Record Highs Again in January appeared first on RISMedia. Single-family renters are continuing to bear some of the brunt of inflation, which is bad news for them but good news for landlords. According to CoreLogic’s latest Single Family Rent Index (SFRI), U.S. single-family rent prices came out of the gates strong in 2022, increasing 12.6% year-over-year in January. This is significantly higher gains in the SFRI compared with January 2021, which began last year with an increase of 3.9% versus January 2020. All major metropolitan areas covered in the CoreLogic SFRI release experienced year-over-year increases, with Sun Belt cities once again registering the largest gains. The robust price growth was partially due to a continuing shortage of available rental properties. Also, the cost of purchasing a home rose by 19% on an annual basis in January, shutting out many would-be homebuyers and forcing them to remain renters. The year-over-year national rent price growth more than tripled the gain recorded in January 2021 and more than quadrupled the increase from January 2020. CoreLogic examines four tiers of rental prices and their year-over-year changes. Here are the findings. Lower-priced (75% or less than the regional median): 12%, up from 3% in January 2021 Lower-middle priced (75% to 100% of the regional median): 13.3%, up from 3.2% in January 2021 Higher-middle priced (100% to 125% of the regional median): 13.4%, up from 3.6% in January 2021 Higher-priced (125% or more than the regional median): 12.2%, up from 4.5% in January 2021 Drilling down further into specific regions, the overheated rental market correlates to warmer climates. Miami once again experienced the highest year-over-year increase at 38.6%. In January 2021, the city’s year-over-year gain was only 2.2%. Orlando and Phoenix logged the second- and third-highest gains at 19.9% and 18.9%. Conversely, the Washington, D.C. metro area recorded the lowest annual rent price growth, at 5.6% in January. “Single-family rent growth extended its record-breaking price growth streak to 10 consecutive months in January,” said Molly Boesel, principal economist at CoreLogic. “Rents increased across the country, and the gains were highest in the Sun Belt, which also had strong population growth last year.” Additional findings: As rental inventory remains slim, the gap between attached and detached rental growth started to close last fall. In January of 2022, attached rental property prices grew by 12.2% year over year, compared to the 12.4% increase recorded for detached homes. This is the closest that attached and detached growth rates have been since March 2020. The post Rent Prices Break Record Highs Again in January appeared first on RISMedia......»»

Category: realestateSource: rismediaMar 17th, 2022

NAR 2022 Forecast Focuses on Inventory, Affordability and Equity

With one spectacularly unique year coming to a close and the start of a particularly uncertain year looming, the National Association of REALTORS® (NAR) held a virtual Forecast Summit bringing together a swath of experts to hopefully provide both perspective on the wild ride of 2021 while shining a light on the opportunities and challenges […] The post NAR 2022 Forecast Focuses on Inventory, Affordability and Equity appeared first on RISMedia. With one spectacularly unique year coming to a close and the start of a particularly uncertain year looming, the National Association of REALTORS® (NAR) held a virtual Forecast Summit bringing together a swath of experts to hopefully provide both perspective on the wild ride of 2021 while shining a light on the opportunities and challenges of 2022. Featuring insights from dozens of economists and industry insiders, NAR Chief Economist Dr. Lawrence Yun and Vice President of Demographics and Behavioral Insights, Dr. Jessica Lautz, led discussions and presentations looking at data, projections and insights on everything from long-term demographic-driven trends to current federal legislation to racial gaps in equity and homeownership. “2021 has certainly been a year unlike any other—what will 2022 bring?” asked new NAR President Leslie Rouda-Smith. “We are here today to look into the future. We don’t have a crystal ball, but much of the success REALTORS® had in 2021 was due to insight.” In the shadow of rocketing inflation and a housing market that was severely restricted by supply-side limitations, the speakers quickly highlighted the top-line concerns that real estate professionals should be looking at next year. “One thing we already know about next year is our country’s inventory shortage and the resulting affordability crisis will still be acute,” Rouda-Smith said. According to Todd Richardson, who heads up the research division of the federal office of the United States Department of Housing and Urban Development (HUD), the country is between 5 to 6.8 million housing units short going into 2022, many of them concentrated in the affordable housing sector. “The pandemic has made that problem worse,” Richardson said. “To solve that requires innovation and out-of the-box thinking. It also requires knowing what is going on.” Other high-level predictions from Yun and other economists surveyed included home prices rising around 5% and mortgage rates climbing to around 3.7% by the end of the 2022, along with unemployment falling only slightly from the rate of 4.2% it sits at now. For this last metric, though, Yun warned that many states still are well below the number of jobs they had pre-pandemic as people have dropped out of the workforce, meaning some of the optimism coming out of those broad unemployment numbers could be misleading. Richardson and others spent some time speaking about programs in the currently proposed Build Back Better bill, which remains jammed up in the Senate. Billions of dollars for first-time homebuyer support, the Low Income Housing Tax Credit, zoning reform and rental housing vouchers could all help alleviate these pressures, according to Richardson and several of the other experts. “There’s a lot of regulatory changes and movement happening and I would encourage REALTORS® to be a part of that,” said Andre Perry, a fellow at the Brookings Institute. Discussion of the Build Back Better housing programs—which NAR and numerous other housing advocacy organizations have zealously lobbied for—sparked a lively political discussion in the virtual chat, which was locked early on in the panel. Ken Johnson, a former real estate broker and professor at Florida Atlantic University, was less optimistic about price growth. “I do think some markets are significantly overpriced at this time, but most are not as overpriced as they were 15 years ago. So we’re going to get a mixed bag result,” he said. The effect around the country will not be uniform.” Johnson highlighted Miami, Florida, as a metro with relatively accurate price growth by underlying measures, while calling out Detroit, Michigan, as an area that was likely overvalued in the medium- to long-term. As far as regions, Yun also highlighted ten “hidden gems” where he expected a hot market in 2022, with nearly every single one of these areas in the South. These towns were centered on Fayetteville, Arkansas; Knoxville, Tennessee; Spartanburg, South Carolina; Dallas-Ft. Worth, Texas; Huntsville, Alabama; Daphne, Alabama; San Antonio, Texas; Tucson, Arizona; Pensacola, Florida; and Palm Bay, Florida. The Big Challenges A number of panelists, ranging from government officials to academics, emphasized that without significant regulatory shifts, as far as zoning and funding, there is no realistic way to overcome an inventory and affordability crisis that has been accelerated by the pandemic. “For those REALTORS® who live in expensive coastal cities, we are on an unsustainable track as far as housing price appreciation,” said Issi Romem, a fellow at the UC Berkeley Terner Center for Housing Innovation. “Densify, do not revert to sprawling…that needs to be allowed to happen. You gotta remind people.” The kind of restrictive zoning that swallows up big tracts of land and prevents any kind of dense building, which is most prevalent in coastal markets, will have to be modified to keep a healthy housing market according to economists and other panelists who spoke. Romen urged REALTORS® to “sympathize” with the ongoing movement to diversify zoning, “even if you don’t like seeing your neighbors get a second story window that can look into your backyard.” “It’s for the greater good,” he said. Because a large portion of jobs will still require or encourage people to live physically close to an office or other location (Romem said most metros will have around 30% remote offerings for their labor force), even cities like San Francisco will have to expand housing offerings or end up with “Manhattanization,” where only the ultra-rich can afford to buy anything. Racial equity was another big topic, with Perry citing a study he had led in 2018 that showed homes of similar qualities in Black neighborhoods are valued 23% less than other neighborhoods, costing Black homeowners $156 billion cumulatively. Despite this, federal legislation and other trends during the pandemic have given opportunities to address this, according to Perry. “We saw a spike among Black millennials, particularly Black women, purchasing homes,” he said. “People were able to save more, people were not using their discretionary income for bars and clothing and such.” A pause on student loan payments was also helpful, he added, but a lack of intergenerational wealth continues to hamper prospective Black homebuyers. Other large term demographic trends that will affect real estate include a huge drop in the birth rate and marriage rate, according to Lautz. In 2021, 31% of households had a child in the home, compared to 58% today. This so-called “baby bust” could have extremely broad implications for the real estate market, with families less likely to move, upsize, downsize or renovate based on the life stage of their children. “All those factors are removed,” she said. At the same time, prospective buyers still are very much interested in having a real estate agent “who they trust, is honest and will help them navigate” the home-buying process, according to Lautz, with a survey showing 87% of potential buyers would prefer to have an agent of their own rather than work with a seller directly or a builder. iBuyers were “a statistical 0” as far as that data, according to Lautz. Jesse Williams is RISMedia’s associate online editor. Email him your real estate news ideas to jwilliams@rismedia.com. The post NAR 2022 Forecast Focuses on Inventory, Affordability and Equity appeared first on RISMedia......»»

Category: realestateSource: rismediaDec 17th, 2021

Salt Lake City Projected to be 2022 Top Housing Market

The nation’s top housing markets are driven by strong local economies, tech sector job growth and affordability, according to realtor.com®’s latest forecast. The Top Housing Markets of 2022 were primarily located in the Mountain West, Midwest and New England. They will likely experience the strongest combined growth in home sales and listing prices among the […] The post Salt Lake City Projected to be 2022 Top Housing Market appeared first on RISMedia. The nation’s top housing markets are driven by strong local economies, tech sector job growth and affordability, according to realtor.com®’s latest forecast. The Top Housing Markets of 2022 were primarily located in the Mountain West, Midwest and New England. They will likely experience the strongest combined growth in home sales and listing prices among the 100 largest U.S. metros, said the company. Across these 10 markets, home sales are expected to grow by 11.6% year-over-year in 2022—almost double the national home sales growth projection (6.6%). Average home prices in these markets are expected to increase 7.4%—more than double the national average (+2.9%). Here are realtor.com®’s top housing markets for 2022: 1. Salt Lake City, Utah 2021 median home price: $564,062 Forecasted 2022 home sales change: +15.2% Forecasted 2022 home price change: +8.5% Forecasted 2022 combined sales and price change: +23.7% 2. Boise, Idaho 2021 median home price: $503,959 Forecasted 2022 home price change: +17.9% Forecasted 2022 home sales change: +7.9% Forecasted 2022 combined sales and price change: +20.8% 3. Spokane, Washington 2021 median home price: $419,803 Forecasted 2022 home sales change: +12.8% Forecasted 2022 home price change: +7.7% Forecasted 2022 combined sales and price change: +20.5% 4. Indianapolis, Indiana 2021 median home price: $272,401 Forecasted 2022 home sales change: +14.8% Forecasted 2022 home price change: +5.5% Forecasted 2022 combined sales and price change: +20.4% 5. Columbus, Ohio 2021 median home price: $298,523 Forecasted 2022 home sales change: +13.7% Forecasted 2022 home price change: +6.3% Forecasted 2022 combined sales and price change: +20.0% 6. Providence, Rhode Island 2021 median home price: $419,813 Forecasted 2022 home sales change: +8.1% Forecasted 2022 home price change: +9.5% Forecasted 2022 combined sales and price change: +17.7% 7. Greenville, South Carolina 2021 median home price: $305,078 Forecasted 2022 home sales change: +11.4% Forecasted 2022 home price change: +5.7% Forecasted 2022 combined sales and price change: +17.1% 8. Seattle, Washington 2021 median home price: $666,754 Forecasted 2022 home sales change: +9.6% Forecasted 2022 home price change: +7.5% Forecasted 2022 combined sales and price change: +17.1% 9. Worcester, Massachusetts 2021 median home price: $397,188 Forecasted 2022 home sales change: +8.4% Forecasted 2022 home price change: +8.2% Forecasted 2022 combined sales and price change: +16.6% 10. Tampa, Florida 2021 median home price: $335,814 Forecasted 2022 home sales change: +9.6% Forecasted 2022 home price change: +6.8% Report trends: Remote Work: The share of workers applying to jobs with “remote work” keywords,  is above average in Boise (32%), Spokane (33%) and in the Salt Lake City area (26.3%), according to LinkedIn. Young Demographics: Many of these top markets have a higher share of people between the ages of 25-34, particularly in Seattle, Salt Lake City and Columbus. External Attraction: Due to healthy market indicators, many flock to these areas from out of state. Greenville, Boise, Spokane, and Worcester had the highest shares of non-local viewers, according to realtor.com®. Premium Pricing: Living in one of these top markets comes at a premium when compared to nearby markets. The average listing price was $431,000 in November for the top ten compared with just $397,000 for all 100 markets analyzed, on average. The takeaway: “This year’s list spans a variety of geographic hotspots, reflecting how pandemic trends like the rise in remote work are enabling many homebuyers to explore new areas where their budgets stretch further. The top 10 markets share a number of commonalities that are driving demand from millennial remote workers to retirees alike, including those from major coastal metros,” said realtor.com® Chief Economist Danielle Hale in a statement. “With thriving local economies, low unemployment rates, convenient access to the outdoors and relatively affordable housing, many of the top markets offer the best of both small town quality of life and big city job security. Home shoppers in these areas may still be able to find good value even as listing prices are expected to climb in 2022, but getting a leg up on the competition will be key. For buyers with more flexible timelines—such as those making a move from a big city—offering a couple extra months on the closing date could sweeten the deal for sellers who also need to buy their next home.” To read the full report, click here. The post Salt Lake City Projected to be 2022 Top Housing Market appeared first on RISMedia......»»

Category: realestateSource: rismediaDec 7th, 2021

Fair Housing Isn’t Enough: Report Shows Racial Disparity Fight Still Needs Support

Overall, overt housing discrimination has lessened through the years following regulations guided by Fair Housing laws; however, it is nowhere near completely dissipated. And while some may not be able to identify it in their day to day, the diversity homeownership gap is a clear example of the persisting challenges that must be addressed, as […] The post Fair Housing Isn’t Enough: Report Shows Racial Disparity Fight Still Needs Support appeared first on RISMedia. Overall, overt housing discrimination has lessened through the years following regulations guided by Fair Housing laws; however, it is nowhere near completely dissipated. And while some may not be able to identify it in their day to day, the diversity homeownership gap is a clear example of the persisting challenges that must be addressed, as discussed by the National Association of Real Estate Brokers (NAREB) 2021 State of Housing in Black America (SHIBA) Report. In fact, the study found that the gap in homeownership between Black and White families is wider today than when housing discrimination was legal. According to the U.S. Census, as of Q2 2021, the Black homeownership rate was 44.6% compared to 74.2% for Whites, leaving a gap of 29.6%. In 1960, before the Civil Rights movement and Fair Housing laws, the gap fell below that threshold at 27 points between Black homeownership (38%) and White homeownership (65%). Several major metro areas lag behind when it comes to the Black homeownership rate, with Minneapolis reporting a 25% share of Black families who own their own homes—the lowest rate in the U.S. “The SHIBA report takes a critical look at the causes for the disparity in Black homeownership rates when compared to Whites and recommends initiatives aimed at closing the gap,” said Lydia Pope, NAREB’s president, for the report, adding that in the last 15 years, Black homeownership experienced the biggest decline of any demographic. Racial bias has seeped into housing, informing practices that now more subtly discriminate, such as racial steering, “where real estate agents deliberately steer Black homebuyers away from White neighborhoods and toward neighborhoods with larger concentrations of people of color,” says the report. “There are new biased practices that are obstructing Black homeownership in communities across the country,” said Pope. “For instance, housing providers often don’t advertise available units and discriminatory digital marketing has become more common due to the proliferation of social media and online housing advertising. We need new tools to address this new wave of housing discrimination.” The SHIBA report analyzes these discriminatory barriers to homeownership, as well as government programs that failed to increase Black wealth or bridge the diversity gap. The typical White family has eight times the amount of wealth compared to the typical Black family—totaling an estimated $24,100 median net worth for Black households compared to $188,200 for White families. While homeownership is the largest component of median household wealth—it accounts for 67% of an average household’s net worth—home equity plays a bigger role for Black households, averaging 70% of the net worth compared to 59% of a White household. Discriminatory practices flourish in more areas than one, impacting the lending space as well and providing an unfair advantage for some. According to the report, in 2020, Black mortgage loan denials (16%) more than doubled White denials (7%) —and these numbers haven’t changed much since 2019. And when it comes to actually building wealth via equity, progress has been slower for Blacks who secured mortgages, as their homes have appreciated less or are valued less than similar homes located in White communities. In fact, a Brookings study showed that homes in Black neighborhoods appraised for 23% less than similar homes in White neighborhoods. “Blacks have made little, if any, strides at closing the homeownership gap,” says Pope. “Systemic discriminatory regulations and policies continue to thwart any meaningful effort at increasing Black homeownership.” To read the full report, click here. The post Fair Housing Isn’t Enough: Report Shows Racial Disparity Fight Still Needs Support appeared first on RISMedia......»»

Category: realestateSource: rismediaNov 24th, 2021

Millennials Collaborating to Attain the American Dream of Homeownership

The affordability issues in the housing market aren’t going away for younger buyers. The financial challenges hindering millennial homeownership have been well documented between overwhelming student loan debt and record-level home prices. However, some within the cohort are carving their own path to the American dream through teamwork. “Affordability is a key issue for young […] The post Millennials Collaborating to Attain the American Dream of Homeownership appeared first on RISMedia. The affordability issues in the housing market aren’t going away for younger buyers. The financial challenges hindering millennial homeownership have been well documented between overwhelming student loan debt and record-level home prices. However, some within the cohort are carving their own path to the American dream through teamwork. “Affordability is a key issue for young buyers or first-time homebuyers entering into the market with limited housing inventory, so pooling incomes with a roommate becomes a really good solution for many buyers to be able to enter into the housing market,” says Jessica Lautz, vice president of Demographics and Behavioral Insights for National Association of REALTORS® (NAR). Recent data from ATTOM Data Solutions, reported by the Wall Street Journal, suggests that the number of home and condo sales across the country by co-buyers has soared since millennials became the largest share of homebuyers in the U.S. in 2014. The number of co-buyers with different last names increased by 771% between 2014 and 2021, according to ATTOM. Like other market trends, the pandemic accelerated the trend, according to Lautz, who also suggests that declining marriage rates among younger generations have also contributed. Despite the generational lull in nuptials, that hasn’t kept buyers, particularly millennials, from pursuing homeownership. Based on NAR’s recently released 2021 Profile of Home Buyers and Sellers report, for the third consecutive year, the share of unmarried couples that purchased a home accounted for 9% of the buyer pool. According to NAR’s data, the share of first-time buyers who were unmarried couples rose slightly to 17%. Navigating the Trend While co-buying isn’t a novel concept in real estate, experts and agents told RISMedia that it’s a worthwhile trend to keep an eye on, as affordability issues and student loan debt plague millennials—the largest cohort of buyers in the market. Along with working as an agent, Nicholas Ritacco is also a co-buyer. The New York-based Corcoran agent teamed up with his roommate to buy their first home during the pandemic to escape renting. Looking at the numbers, Ritacco says low mortgage rates since 2008—and record lows during the pandemic—presented an opportunity to finally tap into homeownership while living in or near more major metro areas. “The affordability is in our favor, and it is time-sensitive, whether it’s two, three or five years down the line, no one can predict, but I can tell you every point we go up is pricing out somebody,” he says. Compared with traditional buyer scenarios, Lautz suggests that agents work with their co-buying clients to identify long-term intentions for the property they are looking to buy and how they will address any life changes. “If someone gets a job on the other side of the country, are you going to rent the room that the roommate has been living in?” Lautz asks. Discussion over income between the clients is also essential, as Lautz notes that will become an issue when it comes time to divvy up the down payment and closing costs in very similar ways, so they are earning equity in the same way. “Questions like that may get into the nitty-gritty, but I do think it’s important for keeping that relationship and the home-buying transaction on track as well about what is realistic and what may not be realistic.” Having gone through it himself, Ritacco says that he also started working with friends that want to partner up to buy a home. Part of his guidance strategy is helping his clients identify their “exit strategy” before going into a co-buying partnership. This typically involves determining how long they intend to live in the property and how they want to approach selling or renting it out when one or more parties is ready to move. “You have to understand what your options are and what your rights are,” he says, noting that he gets “granular” with his clients when working out the details so that each party is comfortable entering into the deal from the beginning. “It’s really about understanding every step of the process and what is expected of everybody,” Ritacco says. “It’s a joint venture. You’re just changing it from that typical investment-focused agreement to adopting it for a joint venture for a primary.” According to agent Kate Wright at Better Home and Gardens Real Estate Metro Brokers in Atlanta, Georgia, taking a deep dive into buyer goals and expectations during an opening consultation is a helpful tool to mitigate future issues. “That way, I know what they are looking for and what their goals are, and I can direct them toward the best avenue for pursuing the purchase,” Wright says, adding that her market has been popular among millennial buyers because of its affordability. Wright’s pool of millennial co-buyers have already bought their first home and have joined friends to start investing in other properties. While she admits that her pool of first-time buyers co-buying is negligible in her market, broker Shonna Peterson at the Warmack Group with Keller Willams in Seattle says that the trend is popular with the millennial investment group. Peterson notes that investor buyers’ motivation focuses more on the numbers and turning a profit rather than living in the home primarily. Despite the difference in approaches and desired outcomes, Peterson indicates that managing emotions is essential to navigating millennial investors. “While they have a great grasp on the numbers, there does still tend to be an emotional component just because it’s human nature to get somewhat competitive when you know that the competition is stiff,” Peterson says. Legal Protection While the trend of co-buying opens doors to homeownership, it’s not without its challenges, which is why agents told RISMedia that they encourage their clients in co-buying situations to speak with legal experts. Real estate attorney Edwin Farrow recommends hashing things out in writing before closing on a home when it comes to co-buying partnerships. “What they’ve done is create a partnership, and partnerships can go bad,” Farrow says. “You need to know what happens in the event the partnership is dissolved, keeping in mind the fact that the bank doesn’t care that you’re friends and agreed to whatever you agreed to.” Farrow’s co-buying clientele typically consists of unmarried couples and family members teaming up to buy homes together. He indicates that getting a better understanding of the risks and benefits of teaming up to buy a property together is vital for any buyers looking to take this route toward homeownership. Eric Smith, a real estate attorney with Timoney Knox in Fort Washington, Pennsylvania, echoed similar sentiments, adding that the biggest problem that he notices among co-buyers is that many tend to bypass getting a written agreement before closing on their home. If the partnership doesn’t end amicably, Smith says a written agreement could save buyers “tens of thousands of dollars in attorney fees” if their friendship or relationship dissolves and they end up selling the property. “In the end, it will be costly to prove that the person who paid the down money is entitled to get it all back or any of it back,” he says. By default, Smith says tenants in common (TIC) is the route that clients take. The option gives each property owner an “undivided interest of the whole thing in equal shares.” “It essentially means that each owns a slice of the pie,” Smith says, adding that shares can be passed on to an heir in the event of a death. A joint tenancy with the right of survivorship is another route, Smith explains, noting that each partner owns the whole property together, and the last of them to die would keep everything. “You could also imagine a circumstance where you might have a number of people who buy a piece of property as legitimate business partners,” Smith says. He thinks the best option is to buy with an entity—like a limited liability company—so parties can have an operating agreement for the property. “It just makes it easier to manage,” Smith opines. Jordan Grice is RISMedia’s associate online editor. Email him your real estate news ideas to jgrice@rismedia.com. The post Millennials Collaborating to Attain the American Dream of Homeownership appeared first on RISMedia......»»

Category: realestateSource: rismediaNov 23rd, 2021

Largest US Homeowner Raises Rents As Housing Crunch Persists

Largest US Homeowner Raises Rents As Housing Crunch Persists Demand for single-family rental homes is off the charts and shows no signs of abating anytime soon, and that is pushing rents sky-high. This has allowed the largest owner of houses in the US to raise rents.  According to Bloomberg, Invitation Homes Inc., which owns approximately 80,000 homes across the country, increased rents by 11% in the third quarter. They raised rents by 8% on renewals and 18% on new leases. Geographically, much of the new increases were found in the Southwest, where rents increased 30% in Las Vegas and 29% in Phoenix. "It's a little bit crazy," CEO Dallas Tanner told analysts during a Thursday call. "There just isn't enough quality housing available right now." In a separate report, CoreLogic wrote this week, on a national basis, rents rose 9.3% in August from the same period last year. Data showed that all top metro areas tracked by the real estate research firm recorded positive rent growth. The highest growth areas were Miami at 21%, Phoenix at 19%, and Las Vegas at 15%. "Converging economic trends are driving a surge in single-family rent prices, and consumer confidence has driven an uptick in demand for both renters and buyers," Molly Boesel, an economist at CoreLogic, said who was quoted by CNBC.   "The ongoing preference toward more living space — and slim for-sale inventory — is forcing would-be buyers back into renting, putting significant strain on the single-family rental market," Boesel said.  However, Lawrence Yun, the National Association of Realtors' chief economist, believes that surging rents could lead to more homebuyers to avoid rising inflation.  Because if you can't afford to rent, you can afford a million-dollar starter-home? Needless to say, rising home prices and rents is more bad news for whatever is left of the middle class. Most Americans will soon be priced out of owning a home and stuck in a renting society where more and more of their incomes are used for shelter expenses, unable to save for a downpayment.  Tyler Durden Fri, 10/29/2021 - 17:25.....»»

Category: blogSource: zerohedgeOct 29th, 2021

London Sits Third For Global Super-Prime Property Availability

Research by central London estate agency, Bective, has revealed that London is currently home to the third largest available level of super-prime property market stock, with just Hong Kong and New York placing above the capital. Q2 2021 hedge fund letters, conferences and more There are an estimated 63 billionaires currently living in London accounting […] Research by central London estate agency, Bective, has revealed that London is currently home to the third largest available level of super-prime property market stock, with just Hong Kong and New York placing above the capital. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q2 2021 hedge fund letters, conferences and more There are an estimated 63 billionaires currently living in London accounting for 2.3% of the world’s total. When analysing this number in relation to the city’s total population, Bective’s research shows that London ranks third for the highest number of billionaires per 100,000 of the local population (0.70). Just San Francisco (1.45) and Hong Kong (1.07) currently boast more billionaires per 100,000 of the local population. A clear sign that London remains one of the locations of choice for the world’s wealthiest. London Ranks Top Third For Super-Prime Property Availability Bective’s research also found that London sits within the top three in terms of the availability of super-prime property stock for existing, or future, billionaire homebuyers. Bective analysed 10 global cities based on the level of homes currently for sale at the £10m mark or above. The research shows that globally, there are 1,890 homes listed for sale at the very top end of the market across these 10 global destinations. 317 of these are located in London, meaning the city currently accounts for 16.8% of this global, super-prime property stock. Just Hong Kong (904) and New York (537) are home to more £10m+ properties listed for sale, accounting for 47.8% and 28.4% of the global market respectively. In contrast, super-prime homebuyers face the toughest task in Moscow and Mumbai, with each nation accounting for just 0.1% of all super-prime properties on the market. Impact Of The Coronavirus Pandemic Bective Sales Director, Craig Tonkin, commented: “It’s fair to say that the pandemic has proved more problematic for London’s super-prime market than it has for the rest of the UK market and ongoing travel restrictions have stifled demand at this very top tier since the start of last year. However, we’re now seeing signs that this is on the turn and the prime London market, as a whole, is well poised to make a swift recovery. Not only does it boast the quality of properties that appeal to the super-wealthy homebuyer, but it also has the available stock to sustain this appetite for high-end homeownership. As a result, London continues to rank as one of the dominant forces within the global, super-prime property market and the city remains an area of high interest for the world’s wealthiest homebuyers.” City Est number of billionaires 2021 Est population (metro areas and city areas) Billionaire rate - number of billionaires per 100,000 population San Francisco 48 3,313,000 1.45 Hong Kong 80 7,481,800 1.07 London 63 9,002,488 0.70 Moscow 79 12,655,000 0.62 Hangzhou 47 7,845,501 0.60 Shenzhen 68 12,592,000 0.54 New York City 99 18,823,000 0.53 Beijing 100 21,450,000 0.47 Mumbai 48 20,668,000 0.23 Shanghai 64 27,796,000 0.23 Sources Visual Capitalist MacroTrends City Property Stock Listed at £10m plus % of All Super-Prime Properties Sources Hong Kong 904 47.8% link New York City 537 28.4% link London 317 16.8% link Shanghai 59 3.1% link San Francisco 32 1.7% link Shenzhen 19 1.0% link Beijing 11 0.6% link Hangzhou 8 0.4% link Mumbai 2 0.1% link Moscow 1 0.1% link All Cities 1890 N/A (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkOct 6th, 2021

Report: Florida’s major metro areas among least popular for millennial homebuyers

All of Florida’s major metro areas are among the least popular for millennials looking to buy a home......»»

Category: topSource: bizjournalsJan 7th, 2021