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These Are The American Cities Where Rents Rose The Most

These Are The American Cities Where Rents Rose The Most Amid a historic stretch of inflation over the last year, the cost of housing (especially rent) has been one of the most significant pressures on household finances. Renters in many markets are seeing increases of 20% or more as they sign new leases, and, with the nationwide rental vacancy rate at just 5.6%, renters have few alternatives to find more affordable housing. The current state of the rental market is a product of both supply and demand, with issues compiling over time and being exacerbated since the pandemic began. Source: Stessa On the supply side, the US has an estimated shortage of nearly 4 million housing units. Zoning and density restrictions have made it more difficult to add housing stock in many locations, both for rentals and owner-occupied units. With rising real estate prices, 70% of the growth of the rental market since 2009 has come from higher-income earners who might otherwise have bought a home. Source: Stessa And as more high earners enter or stay in the rental market, builders and developers are incentivized to provide more luxury units, which means less new stock to meet the needs of low- and middle-income earners. Source: Stessa The pandemic-era economy has made all of these issues worse. Meanwhile, these are the small and midsize cities where rents have risen the most (and the least). The spike in home values and rising interest rates are putting homeownership further out of reach for many would-be buyers, keeping more people in the rental market. Builders and developers are also struggling to keep up with heightened demand while managing costs. Ongoing supply chain challenges have made it more time-consuming and expensive to obtain building materials, while the tight labor market has left hundreds of thousands of construction positions unfilled. Tyler Durden Fri, 05/13/2022 - 22:40.....»»

Category: smallbizSource: nytMay 14th, 2022

Gen Z Renters Leading Rush Back Into Bay Area Cities

Bay Area cities are hot again—if applications from Generation Z renters are any indication. The San Francisco and San Jose metros were two of the fastest-growing destinations for college-aged and post-grad transplants in the U.S. in recent months, according to real estate consulting firm Yardi Matrix. Interest from 17- to 25-year-olds in San Francisco and […] The post Gen Z Renters Leading Rush Back Into Bay Area Cities appeared first on RISMedia. Bay Area cities are hot again—if applications from Generation Z renters are any indication. The San Francisco and San Jose metros were two of the fastest-growing destinations for college-aged and post-grad transplants in the U.S. in recent months, according to real estate consulting firm Yardi Matrix. Interest from 17- to 25-year-olds in San Francisco and East Bay apartments doubled between 2020 and 2021, the fastest rise in the U.S. Applications from students and young professionals jumped 50% in San Jose over the same period. Most of the growth came in the last six months of 2021 as COVID-19 restrictions eased. “What we’re seeing is the move back,” said Doug Ressler, senior analyst at Yardi Matrix. “The San Francisco Bay Area has just seen a significant growth in renters, particularly Gen Z renters.” Bay Area rents tumbled in the first year of the COVID-19 pandemic as offices closed or people worked in skeleton shifts and remote work took hold. Many young renters decamped to family homes, remote cities and rural towns, seeking cheaper rents and a different lifestyle. High-end apartment complexes throughout San Jose, San Francisco, Oakland and Silicon Valley offered steep discounts and enticements to win tenants. Apartment prices plummeted, especially in luxury buildings. But pre-pandemic rents have returned in many cities. The median price of a two-bedroom in San Jose rose 14% year-over-year in February to $2,491, grew 2% in Oakland to $1,930, and jumped 15% to $2,710 in San Francisco, according to Apartment List. The median U.S. rent has risen nearly 18% in the last year. East Bay landlords recently have seen applications picking up, said Krista Gulbransen, executive director of the Berkeley Property Owners Association. But the decline in international students due to pandemic restrictions has opened more vacancies around UC Berkeley, she said. Market prices in many neighborhoods have not returned to pre-pandemic levels. It might take three years to see a full recovery, Gulbransen said. “Picking up? Yes,” she said. “Robust? Not yet.” Homeownership is generally less vital to young professionals than older generations. A recent survey by Apartment List found Generation Z respondents half as likely as baby boomers to say homeownership was extremely important for their personal success. Survey authors believe Gen Z renters may shift their attitudes about home ownership over time. Rob Warnock of Apartment List said the survey did not reveal a dramatic, cultural shift in feelings about home ownership. Rather, he said, younger generations are driven to renting because cobbling together a down payment and buying a home is too expensive for many. “More renters expect to rent longer, if not indefinitely,” Warnock said. “The vast majority of it is affordability.” Even millennials have been more ambivalent about buying homes than their parents and grandparents, the survey found. Millennials, generally between the ages of 26 and 40, are mainly responsible for growing demand in the real estate market. But the Apartment List survey found them also far less likely than older generations to highly value home ownership. The rental demand in the Bay Area has been driven by the return of college students and young professionals, Ressler said. Demand started picking up as colleges and universities re-opened for in-person classes and has been rising ever since. The most popular apartments have been older, bigger and less expensive units ideal for having roommates. The Yardi Matrix survey analyzed more than 3 million rental applications across the U.S. and filtered out multiple submissions from single applicants. San Francisco saw the greatest increase in young renters in 2021, with about double the previous year’s total. Jersey City, NJ, saw a 95% increase, followed by growth in Manhattan (63%), Philadelphia (61%), Boston (59%), Arlington, Va., (55%) and San Jose (52%). Some of the growth in young renters seeking new city apartments is due to the impact COVID-19 had on jobs and education plans, the survey noted. Unemployment hit young workers in the service industry, among other jobs, hard. But colleges and universities have reopened, tech firms are bringing workers back into the office, and restrictions are being lifted on shops, bars, restaurants, theaters and clubs—breathing new life into Bay Area cities. Ressler expects Gen Z demand to accelerate in May and June. “They like the cities,” he said. “They want to be back.” ©#YR@ MediaNews Group, Inc.  Distributed by Tribune Content Agency, LLC The post Gen Z Renters Leading Rush Back Into Bay Area Cities appeared first on RISMedia......»»

Category: realestateSource: rismediaMar 25th, 2022

Return to the Office? Not in This Housing Market

Workers are being asked to choose between hellish commutes or unaffordable real estate. Some are saying no. In May of 2021, Sara Corcoran got a great job as an assistant project manager for a construction company in Dallas, working from home. Because the position was fully remote, she and her husband bought a 3-bedroom mobile home in Wylie, a lake community about 30 miles northeast of Dallas, in November. She loved the affordability of Wylie, where they paid $500 a month, less than half of what they had paid to rent a two-bedroom apartment in North Dallas, and that she could “smell the lake and see the stars.” But eight months later, her company suddenly called everyone back to the office and told her she wasn’t remote any more, she says. “They said, ‘We’re going to have everyone come back to the offices, we want to see your smiling faces,’” she says. Its offices are southwest of Dallas, an 80-mile commute one-way. She went in for two days, and after getting home at 8 p.m. and paying $15 per day in tolls, she quit. She had a new job lined up two days later. [time-brightcove not-tgx=”true”] Last week, when President Biden called on Americans to “get back to work and fill our great downtowns again,” he joined a cadre of politicians and businesses across the country calling for employees to return to their offices. They may not realize how out of touch they sound to workers like Corcoran, who have seen home prices rise 30%, rents rise roughly 16%, and the price of gas increase 78% over the past two years. Read More: There’s Never Been a Worse Time to Buy a Home, Poll of U.S. Households Shows More than a third of jobs—often but not always ones performed by people with a college degree—can be performed from home, according to a University of Chicago analysis. What these workers hear when their employers call them back to the office is that they’re expected to either pay a big chunk of their paychecks to live close to the office or save money on rent and weather longer—and more expensive—commutes, as if the last two years of work-from-home hadn’t happened at all. Around 46% of companies had workers back in their offices in January or February of this year, compared to 29% at the end of 2021, according to a Challenger, Gray & Christmas survey. Companies say they want workers back to foster collaboration and to help resuscitate the downtown businesses that have struggled with the absence of office workers. Many, like Google and Apple, are allowing employees to adopt a hybrid work structure, in which they come into the office two or three days a week. But that still requires workers who have become accustomed to having breakfast and dinner with their families over the past two years to either spend hours commuting three days a week, or spend the big bucks to live close to the office. In January, the median home prices in Mountain View, where Google has its headquarters, was $1.9 million. Even a family with two workers who make the average annual salary at Google—$134,386—would have to pay more than a third of their income each month to afford such a house. Photo courtesy of Sara CorcoranSara Corcoran, center, and her daughter and husband Before the pandemic, the most expensive real estate was located in big cities like New York and San Francisco, close to jobs. Now, though, real estate prices have soared in suburbs and exurbs of these big cities, too. (Exurbs are places further away from city centers than suburbs and that are less dense than half of American zip codes). There’s more competition from workers who only have to go into the office a few days a week, and are moving their families further out in an effort to get more space. In short, it’s expensive everywhere. Home values in exurbs are up about 30% from February 2020, and nearly the same amount in suburbs, according to an analysis by Nicholas Bloom, an economics professor at Stanford who studies remote work. They’re up only about 5% in city centers. Some exurbs in popular metro areas like the San Francisco Bay Area are more than 80 miles from the city center, meaning people in search of affordable housing may be facing a two-hour—or more—commute each way. The U.S. is drastically short on housing This quandary stems from a years-long shortage of housing in the U.S.. As new families look to buy homes, the pace of homebuilding has not kept up with supply. The U.S. was short 3.8 million units by the end of 2020, according to Sam Khater, the chief economist at Freddie Mac, and this deficit of units had increased 50% from 2018. Add to that a surge in investors purchasing single-family homes to rent out to families, further limiting supply, and a generation of Boomers who are choosing to age in place rather than sell their homes, and you have a perfect storm of housing unaffordability. More than two in three metro areas saw median home prices increase at least 10% in the last three months of 2021 from the previous quarter, according to data from the National Association of Realtors. Over the past year, the median single-family home price rose 15%. Median earnings, by contrast, were up just 2.6% from a year before, even as consumer prices for goods like gas and food continued to climb. Read More: Inside the Next Housing Crisis Bloom, the economist, argues that allowing hybrid work is actually a “win-win,” because workers can double the distance they live from the office. If they are only going into the office a few times a week, they can live two hours, rather than one hour, from their office, which allows them to afford a lot more areas. He gives the example of the Central Valley in California, which is around a two hour drive from Silicon Valley, and where homes cost much less than they do closer to offices like Google’s. “You have a horrible day one day a week, but the trade off is that you get to live somewhere far away with reasonable housing and good schools,” he says. Most professional workers say they want to come into the office 2.5 days a week, he says. The hybrid model also presents less of a blow to downtowns because office workers are still coming in a few times a week. Most restaurants, bars, and other businesses that are located in downtowns will still survive. It is more of a threat to commercial real estate prices, which is probably why companies like WeWork with big investments in office space are scorning the idea that people can work remotely at all. “Those who are least engaged are very comfortable working from home,” said WeWork’s CEO Sandeep Mathrani, last year. Read More: Marcia Fudge Is Trying to Decide Which Fire to Put Out First But a transition to more permanent remote work won’t kill downtowns. It will just change them. Places with a high concentration of office workers, like Manhattan’s Midtown, or San Francisco’s Financial District, have become so office-centric that they’re dominated by offices and chain restaurants where people stand in long lines for salads. With fewer office workers, central business districts could add more affordable housing, arts and cultural spaces, and other so-called “third spaces” where people spend time away from home, argues urbanist Richard Florida. That will make them more desirable, because they can become spaces where people can walk or bike, within 15 minutes, to all the amenities they desire. As for the service workers who catered to office workers, their jobs won’t just disappear, but they may move. Affluent people who work from home still want to go out to eat, meet friends at bars, and see live music as they did when they lived in city centers. Bloom, the Stanford economist, says the migrations to suburbs and exurbs will have a “donut” effect on cities, in that more people will be concentrated on the edges rather than in the center. Services for remote workers will start to move to the donut edges, too—and indeed, jobs on the periphery of metro areas have recovered much more quickly than those in city centers. This could end up being more affordable for service workers, who can live either in more affordable center cities or in rural locations. Matthew Delventhal, a labor market economist formerly of Claremont McKenna College, found that if 33% of workers in Los Angeles telecommuted (up from about 3% before the pandemic), home prices in the region would fall 6%. Life becomes easier for almost everyone— because fewer workers are commuting, commutes become easier for people who are still going into a workplace. Some service jobs moved to the periphery of cities, where workers were relocating, making them more accessible to people who live even further from city centers. “There are a lot of benefits to having people less tied-down geographically,” he says. Workers want to be able to afford family time Ryan Pollard is a case study in these welfare benefits. Before the pandemic, Pollard commuted 3 hours a day from his home in one Portland, Ore., suburb to a job in another Portland suburb. He and his wife worked at the same software company, and because of their combined commutes, there were times when their youngest daughter, now 9, would be in daycare 12 hours a day. During the pandemic, their employer switched to fully remote, and the family went from renting a house to being able to buy one in Vancouver, Washington—about a 6 hour drive from their office. Read More: Buying a House Feels Impossible These Days. Here Are 6 Innovative Paths to Homeownership “I look back at the hours that I spent in my car or away from my kids and it kind of makes me cringe a little bit, especially with the little one, not seeing her for 12 hours a day,” he says. “Now, we’re walking her to and from school and that’s incredible. I’m not going to trade that for anyone.” Pollard still works for the same software company; his wife got a new job at another company that allows fully remote work. Neither wants to consider any job that doesn’t let them work remotely. Many others agree, and research suggests that allowing workers to be remote could help get more people from the sidelines into the labor market. More than half of unemployed survey respondents said they’d prefer a work from home job, and 17% said they’d only consider a work-from-home job, according to Bloom, the Stanford professor. In a tight labor market, where there are 11 million open jobs, employers demanding a return to the office may find themselves short on the kind of diverse workers they all say they want to hire. They’ll also lose the many workers who reevaluated what was important to them during the pandemic, and decided to put family first. Around 61% of people who are working remotely are doing so by choice and not because their office is closed, according to a recent Pew study; earlier in the pandemic, only 36% were working from home by choice. Scott McDonald, 45, creates flooring quotes for the construction industry, an office job. He had lived in the same North Carolina town where his employer was located because he wanted a short commute, but it wasn’t very close to his three kids, who split time between divorced parents. When his job went remote, he moved from an apartment to a three-bedroom house that could easily accommodate his children. He heard President Biden call workers back to the office in the State of the Union, but scoffed—he never has to go back to an office again. “The pay would have to be astronomical to convince me to give up time with my family and replace it with a commute,” he wrote on Twitter. McDonald knows this may limit his job options in the future, especially since he doesn’t have a college degree. But he gets to sit down with his family for meals, and talk with his kids about their days—he doesn’t want to trade that in. “I’m not super-skilled,” he says. “But they say it’s a worker’s market.”.....»»

Category: topSource: timeMar 11th, 2022

What To Buy In An Ever-changing Market? A Contrarian’s Guide To Investing

When I started in the business over twenty years ago, investors stayed in their lanes. From a broker’sperspective, it made our job easy as the same group of buyers seemed to show up each time. Multifamily operators would buy apartment buildings in their specific neighborhoods. Retail investors with great tenant... The post What To Buy In An Ever-changing Market? A Contrarian’s Guide To Investing appeared first on Real Estate Weekly. When I started in the business over twenty years ago, investors stayed in their lanes. From a broker’sperspective, it made our job easy as the same group of buyers seemed to show up each time. Multifamily operators would buy apartment buildings in their specific neighborhoods. Retail investors with great tenant relationships bought in the same corridors. The office owners continued to grow their massive portfolios in their submarkets. We knew the developers who had the track records to borrow and build. Specialty asset classes such as data centers and life science didn’t exist. The business back them was predictable.  I also don’t remember buyers talking about other markets. Owners were proud that they could walk to their entire portfolio. Post-COVID, real estate investing has been turned on its head. The hybrid work model has scattered employees, and along with it, investors all over the county.   That doesn’t mean people all left New York for the Southeast, a popular anecdotal conversation. IfPopulationU’s data is correct, New York City’s 2021 numbers increased a modest .22% to 8,823,559, albeit much better than the feared mass exodus. P.S., the same site predicts Miami’s population will grow by less than 300,000 from 2020-2025.   Clearly, the residential rental market would support New York’s resurgence. According to Jonathan Miller, its latest vacancy rate is sub 2% and Manhattan average rents set a record at $3,400 in December, a typical sleepy month. With this in mind, job growth may no longer be the most active indicator for a real estate growth as jobs are now portable. All remote workers might not be sitting on the beach – many are hanging out in East Village coffee shops.   Adding to the complexity of where and what to invest in is a whole host of regulatory pressure especially for multi-family. Universal rent control has happened in California and Oregon, as well as in Minneapolis. New York’s State Senate has been considering Good Cause Eviction which would also create universal rent regulation. As a result, investors now are thinking of diversification for both location and asset class selection. With this all in mind, excluding industrial and medical which have performed well throughout COVID, I would suggest that investing in New York all together is contrarian with varying levels of risk depending on the asset class. In order, I would rank them along the risk profile: 1.Multifamily –  We have witnessed several New York families who have been quietly selling their New York multifamily holdings and buying in red states where the tax treatment, and arguably business climate, is more favorable.  Many residential operators and developers are piling into these States. As a result, cap rates have even dipped below 3%. The anticipated rent growth to justify these acquisitions in many cases are at north of 10% per year. Meanwhile, Manhattan’s average multifamily cap rates for 4Q21 were 4.6%.   The tradeoff for multifamily investors is to buy into higher yields, while taking on the risk that Good Cause may cap future rent increases.  In my mind, much of this also depends on an investor’s timeline. For those looking to reposition and sell within a typical five-year hold, the passing of Good Cause could be disastrous if passed. Whereas if not, the stabilized return on cost could end up well into the 6% range if not higher.  In Southeastern cities, the hope might be to stabilize at 4.5-5% returns which is where you start off at in NYC. Those who can take a longer view, can also put accretive long-term debt and just enjoy the cash flow. This certainly applies to a fully regulated building where rental increases are dictated by the City’s Rent Guideline Boards, which currently posted a negligible increase of only 1.5% in the second half of a one-year lease, which in most cases will not keep up with real estate taxes increases.    2.Retail   I am a strong proponent of retail investment, especially on New York’s high streets. The average cap rates in NYC this past year were 5.19%. After the impact of eCommerce and then COVID, retailers have been reeling. The neighborhood retailers and restaurants have been able to survive in many cases with landlord help, granting concessions. We are now seeing many arrangements where the base rent was cut and then the balance is tied to a percentage rent. Guesst.co makes it possible to track these types of arrangements, which might become the new norm and a win-win for landlords and tenants.   I believe high street retail could be the best investment bet today. It is clear to me that the drop in international tourism explains rents that in some cases are now off 38-63% in cases from peak (REBNY’s report sites Fifth Ave rents in the 50s down 38% from Spring 2018, Broadway rents in the 40s down 59% from 2015, and SoHo’s Broadway rents are down 63% from 2015. NYC tourism numbers were 66.6 million people in 2019 and then dropped 67% in 2020 to 22.3 million. Gov. Hochul announced a $450 million plan to bring back tourists. Inside Out Tours is predicting there will be 55 million visitors this year.   Once tourism comes back, the pendulum will swing back on rents, maybe not to their all-time highs but certainly well above where they are today.  3.Development  Although Gov. Hochul has stated her support for development by proposing the removal of residential height caps, the details of the new 421a program still needs to be hashed out. The good news is that it looks like the valuable 35-year tax abatement could stay in place, provided there are greater affordability thresholds met. The popular Option C of the current program Affordable New York, allowed for 130% of the Annual Median Income for its 30% affordable requirement which in many cases produced market rents. Without that, developers will have to wait to see what levels of AMI will be required and if the 35-year abatement will stay in place. The current program expires in June, so developers are staying on the sidelines until this is confirmed. I would view this as a very risky proposition to purchase without knowing the viability of the future plan. Meanwhile, I view condo development as an incredible opportunity.  Condo units have witnessed record sellouts, so the inventory as been depleted. With the dearth of land sales over the last two years, there will be little competition. Private lenders looking to place money are willing to lend and developer friendly pricing. Anecdotally, there hasn’t been much land on the market as long-term owners have held back which makes the need to be creative an assemble all the more important.  According to Compass, during 2021, despite a 16-year high in new listings, supply was overpowered by demand not seen in over 30 years. These competitive, high-velocity markets provide sellers with a perfect environment for unearthing maximum sales price. 2021 sales volume totaled $30 billion, 6% higher than the 2007 record and median price rose 11% YOY; pricing is largely back to pre-COVID levels (~2019). 4.Hotel  Hotel investment is without question the riskiest and most contrarian investment.  There are still thousands of rooms offline and many hotels may no longer be viable. The expense of running larger, union hotels make them unprofitable to operate especially in tourist driven locations. That being said, I’ve heard that many of the hotels are beginning to fill up again with an ease of travel restrictions. There are also surprisingly more hotel units planned for delivery.    Developers are closing watching if hotels in commercial zoning will be allowed to be converted to residential and if so what the affordability requirements will be. Like the 421a program, the devil will be in the details.    5.Wild Card – Office  Lastly, it is difficult to consider all office investment as contrarian as it’s a tale of two markets. Last year in NYC, the average cap rates were 4.43%. There has no doubt been a flight to quality with the best buildings achieving triple digit rents again. Meanwhile, the overall market has an 18% availability rate which constitutes roughly 100 million square feet of space. Class B and C offices will be hit the hardest. The question here again is if this office product can be converted to residential and whether or not it makes economic sense depending on what types of affordability requirements are mandated by Albany. The post What To Buy In An Ever-changing Market? A Contrarian’s Guide To Investing appeared first on Real Estate Weekly......»»

Category: realestateSource: realestateweeklyFeb 7th, 2022

Some Good News: Rents Have Finally Peaked As Rental Market Enters "Widespread Cooldown"

Some Good News: Rents Have Finally Peaked As Rental Market Enters "Widespread Cooldown" Back in August, when the so-called experts (including the career economists at the Fed) were still convinced that inflation was transitory, we showed that realty was far scarier as true rents were only just starting to trickle through to the various CPI and PCE metrics, and while Owners’ Equivalent Rent of residences, which makes up almost a quarter of the consumer price index, rose just 2.4% in July from a year earlier according tot he Fed, the real number - as divined from real-time national rent indicators such as that from Apartment List and Zillow - was much higher, perhaps as much as 5%. The OER figure “lags the reality” because it’s based on a survey of homeowner expectations about what their home would rent for, said Mark Zandi, chief economist for Moody’s Analytics Fast forward to today when OER is now far higher, with shelter inflation having surged to 4% and rent inflation close behind... ... both numbers which still have a long way to go as they catch up to real prices. But here we have some good news, because while the rent, shelter and OER prints reported by the CPI will still rise for the next 5 or 6 months, the actual rental market has now finally peaked. According to the latest Apartment list data, the consultancy's national index fell by 0.2% during the month of December, marking the only time in 2021 when rents declined month-over-month. And while a slight dip in rents at this time of year is typical of seasonality in the market, it’s especially notable after a year of record-setting growth, especially when considering that over the course of calendar year 2021, the national median rent increased by a staggering 17.8%. To put that in context, annual rent growth averaged just 2.3% in the pre-pandemic years from 2017-2019.  As the chart below shows, December is also the fifth straight month in which monthly rent growth slowed after peaking at 2.7 percent in July. The current slowdown is capping a year that has been characterized by unprecedented price increases. For seven months from March through September, month-over-month rent growth exceeded the pre-pandemic record going back to 2017. In December, however, rent growth fell in line with pre-pandemic trends – rents also fell by 0.3 percent in December 2019, and by 0.2% in December 2018. Drilling into the December data, 61 of the nation’s 100 largest cities saw rents fall this month, indicating a widespread rental market cooldown. This can be seen in the chart below, which visualizes monthly rent changes in each of the nation’s 100 largest cities from January 2018 to present. The color in each cell represents the extent to which prices went up (red) or down (blue) in a given city in a given month. The band of dark red in 2021 depicts this year’s massive rent boom, which peaked in July and August 2021 when all 100 cities in this chart saw prices go up. As we closed out the year, the three rightmost columns show that the recent cooldown in rents is also geographically widespread. Steady rent declines have occurred in a wide variety of places. Prices have dropped for three consecutive months in some of the smaller cities that saw massive influxes of new residents throughout the pandemic, including Boise ID, Fresno CA, and Reno NV. But similar price drops have also taken place in larger urban centers like Boston MA, San Francisco CA, and Chicago, IL. Meanwhile, rent increases have persisted in warm-weather cities across the Sun Belt, like Orlando FL, Tucson AZ, and Dallas TX. Here, rent growth decelerated but remained positive throughout the last several months of 2021. In particular, Seattle and San Francisco both landed in the top five for largest month-over-month declines, signalling that these pricey tech hubs may be entering a second phase of COVID-related rental market softness. Separately, the Apt List national vacancy index ticked up again for the fourth straight month, as we enter 2022 amid an easing of the tight market conditions that characterized 2021. Indeed, the Apt List vacancy index spiked to 7 percent last April, as many Americans moved in with family or friends amid the uncertainty and economic disruption of the pandemic’s onset. After that, however, vacancies began a steady decline, eventually falling to 3.8 percent in August 2021. Subsequent to this, the vacancy index has ticked up slightly for four consecutive months and stands at 4.3 percent at the end of the year. Although the recent vacancy increase has been modest and gradual, it represents an important inflection point, signalling that tightness in the rental market is finally beginning to ease. If the vacancy rate continues this trend in the coming months, it’s likely that rent growth will also continue to cool further. In conclusion, after a year of astronomical price increases, December 2021 finally brought some relief to the rental market. The Apartment List national rent index spiked nearly 18% in 2021 but fell 0.2% in December, a modest dip but the first such decline observed in over a year. While the apartment market remains tight – the national vacancy rate sits just above 4% compared to 6% pre-pandemic – the winter season continues to bring signs that pressure is gradually beginning to ease. That said, it’s important to bear in mind just how much affordability has dissipated in 2021. 99 of the nation’s 100 largest cities saw rents jump more than 10 percent over the year, and the national median apartment cost eclipsed $1,300 for the first time ever. So despite a recent cool-down, many American renters will remain burdened throughout 2022 by historically high housing costs. The bigger question is when will the BLS fed the latest real-time data into its CPI models, and how long until the Fed realizes that the rent  inflation burst observed throughout 2021 is now reversing. Source: Apartment List Tyler Durden Thu, 01/13/2022 - 18:00.....»»

Category: worldSource: nytJan 13th, 2022

Owner-Equivalent Rent Shock On Deck As Actual Rents Surge By Most On Record

Owner-Equivalent Rent Shock On Deck As Actual Rents Surge By Most On Record Another month, another record surge in US rents to a new all time high. According to the Apartment List national index, US rents increased by 2.1% from August to September, and although month-over-month growth has slowed slightly from its July peak when the sequential growth rate was 2.6%, rents are still growing much faster than the pre-pandemic trend. Since January of this year, the national median rent has increased by a staggering 16.4%. To put that in context, rent growth from January to September averaged just 3.4% in the pre-pandemic years from 2017-2019. While even the smallest cooldown in rent growth is a welcome change for renters, Apartment List's Chris Salviati notes that it’s important to bear in mind that prior to this year, the national index never increased by more than 0.9 percent in a single month, going back to 2017. "Furthermore, we have now entered the time of year when rents are normally declining due to seasonality in the market. In September of 2018 and 2019, for example, rents fell by 0.1 percent and 0.3 percent, respectively." That said, we have a ways to go before US rent - where the median just rose above $1,300 for the first time ever - decline; and with rents rising virtually everywhere, only a few cities still remain cheaper than they were pre-pandemic, and even these remaining discounts are unlikely to persist much longer. At the other end of the spectrum, Apartment List finds 22 cities among the 100 largest where rents have increased by more than 25 percent since the start of the pandemic. That said, there are some early signals that tightness in the market may be beginning to ease: the vacancy index ticked up this month for the first time since last April. And in Boise, ID, which has seen the nation’s biggest price increase since the start of the pandemic, rents finally dipped slightly this month. The chart below visualizes monthly rent changes in each of the nation’s 100 largest cities from January 2018 to September 2021. The color in each cell represents the extent to which prices went up (red) or down (blue) in a given city in a given month. Bands of dark blue in 2020 represent the large urban centers where rent prices cratered (e.g., New York, San Francisco, Boston), but those bands have quickly turned red as ubiquitous rent growth sweeps the nation in 2021. In 2020, 60 of these cities saw rent prices rise from August to September, but this year, 97 cities got more expensive in September. In a glimmer of hope for Americans locked out of not only the housing but the rental market, one of the few markets where rents did not increase this month was Boise, ID. Since last March, rents in Boise are up by a staggering 39%, making the city the archetype for rental market disruption amid the pandemic. This month, however, the median rent in Boise fell by 0.1%. While such a small dip certainly doesn’t offer much relief to Boise renters, it may at least signal that the market is finally starting to stabilize. Spokane, WA, another city that has experienced skyrocketing rent growth this year, saw an even more notable decline this month, with rents down 1.8 percent. Unfortunately, Boise and Spokane represent the exception rather than the rule -- in most of the cities where rents had been growing quickly, that growth is continuing. Tampa, for example, saw rents jump by another 3.9% this month, and the city now ranks 2nd for cumulative rent growth since the start of the pandemic at 36%. Excluding Boise and Spokane, the other eight cities in the chart above experienced rent growth of 3.5%, on average, from August to September, as affordable Sunbelt markets continue to boom. Of particular note, four of the ten cities with the fastest rent growth since last March are suburbs of Phoenix. A more tangible indicator that demand destruction may be setting in, is that vacancy rates have posted their first increase since March. Indeed, as Apartment List notes, much of this year’s boom in rent prices can be attributed to a tight market in which more and more households are competing for fewer and fewer vacant units. The vacancy index spiked from 6.2% to 7.1% last April, as many Americans moved in with family or friends amid the uncertainty and economic disruption of the pandemic’s onset. Since then, however, vacancies have been steadily declining. For the past several months, the vacancy index has been hovering just below 4%, significantly lower than the 6% rate that was typical pre-pandemic. This month, however, the vacancy index ticked up slightly, from 3.8 percent to 3.9 percent. Although this is a very minor increase, it represents the first increase of any magnitude since last April. While a few more months of data would be needed to confirm an inflection point, if vacancies are back on the rise again, it would signal that tightness in the rental market is finally beginning to ease and that rent growth will also continue to cool. Finally, where there may be light at the end of the tunnel in real-time data, we have yet to see the pig even enter the python when it comes to the CPI's Owner Equivalent Rent data series. As shown below, the Apartment List data normally has a 4 month lead to the OER series, which means that as actual rents soar by over 15% Y/Y, OER is either going to skyrocket in the coming quarters or the BLS will have to come up with some very fancy hedonic adjustments why rental inflation should exclude, well, rental inflation. Tyler Durden Tue, 09/28/2021 - 18:25.....»»

Category: dealsSource: nytSep 28th, 2021

Valley cities where rents are rising the most nationwide

One Valley city came out on top in a national study of cities where rents rose the most in 2020. See which one, along with the other seven that made the list......»»

Category: topSource: bizjournalsJan 5th, 2021

Some Oregon cities saw rents ease in September

Renters in parts of Oregon got a break last month, according to new figures for average monthly rents. According to the website Rentcafe.com, the average September rent in 13 Oregon cities it tracked declined from August rates while rents rose in si.....»»

Category: topSource: bizjournalsOct 21st, 2019

Rising Rates Are Squeezing Landlord Profits

Rising Rates Are Squeezing Landlord Profits We can't say we're surprised. It appears that the rising rate environment (read: literally we are still only at 1% rates) has put pressure on investors who paid top dollar for apartments over the past year.  Profits for landlords who have borrowed to buy new apartments and for those who have turned to renting these properties to tenants are starting to come under pressure, according to a new article by the Wall Street Journal.  Tenants may find that their rents are being raised as a result of the financial pressures, too, the report notes. It says that annual volume of rental apartment purchases "almost doubled" between 2019 and 2022 while investors spent $63 billion on apartment buildings.  But it isn't just rates that are pressuring the buyers - the sheer speed with which prices moved higher also means shrinking returns for owners. Apartment building prices rose 22.4% during this year’s first quarter, the report says.  This type of negative leverage for the owners hasn't been this prominent since the 2008 crisis, the report notes. Nitin Chexal, chief executive of real-estate investment manager Palladius Capital Management, compared today's environment to 2008, stating: “You’re seeing a lot of the same mistakes.” However, defaults are not expected to be as prominent as 2008 due to investors having less debt. However, outstanding mortgage debt backed by multifamily buildings has "more than doubled since the financial crisis to $1.8 trillion".  The Wall Street Journal wrote that "The median asking rent for any rental unit rose to $1,827 in April, according to Realtor.com, the highest rent on record and a nearly 17% gain from the prior year." If rent growth continues to slow while rates rise, landlords could experience "far reaching consequences", the report says.  David Brickman, CEO of real-estate finance company NewPoint Real Estate Capital and former head of housing-finance company Freddie Mac concluded: “There’s no question you’re going to have rent growth; the question is whether it will outpace interest rates.” Tyler Durden Thu, 05/26/2022 - 18:40.....»»

Category: blogSource: zerohedgeMay 26th, 2022

Is Housing Slump a Boon for Real Estate ETFs?

Higher interest rates and high prices of home caused a slump in the housing market. This may boost the demand for renting and benefit real estate ETFs. Sales of newly built homes in April logged their biggest decline in nine years, as higher interest rates and high home prices are weighing on buyer demand. New-home sales fell 16.6% in April from March to a seasonally adjusted annual rate of 591,000, the lowest level since April 2020, the Commerce Department said Tuesday.The 16.6% decline was the biggest monthly drop since 2013, per Wall Street Journal.Meanwhile, existing home sales in the United States fell 2.4% to a seasonally adjusted annual rate of 5.61 million in April 2022, the lowest since June 2020 and slightly below forecasts of 5.65 million. Sales dropped for the third successive month in April, marking a cooling housing market.Rising mortgage-interest rates have made homeownership more expensive for buyers. The average rate on a 30-year fixed-rate mortgage was 5.25% last week, up from 3.1% at the start of the year, according to Freddie Mac. Due to the Fed’s recent interest rate increases, mortgage rates have risen almost 2.3 percentage points since November to 5.25% last week, marking the steepest rise in a six-month-span in decades.Plus, due to rising costs and supply shortage, home prices have been on a steady ascent. Economists at Goldman Sachs estimate that housing prices will bounce about 10% this year while Bank of America has forecast a 15% rise, as quoted on Wall Street Journal.Why Real Estate ETFs Appear PromisingThis may open up opportunities for renting. Although rental prices for single-family homes rose 7.8% in 2021 (an all-time high), according to CoreLogic, as quoted on Bloomberg, reduced demand for homebuying means that demand for renting should see some upbeat momentum.Moderate growth in the economy and rising home prices should translate into greater demand for real estate, higher occupancy levels and landlords’ greater power to ask for higher rents. Additionally, REITs have benefited from inflation concerns as it is often considered a hedge against inflation.Also, real estate stocks and ETFs offer outsized yields. REITs own and operate income-producing real estate. They are required to distribute at least 90% of taxable income to shareholders annually in the form of dividends and, in turn, can deduct those dividends paid from their corporate taxable income. Thus, REITs offer juicy dividend yields. Further, REITs have a low correlation with other stocks and bonds, thereby providing huge diversification benefits to the portfolio.Notably, real estate ETFs beat the S&P 500 (down 17%) this year. The sector has been performing better than the S&P 500 (up 0.8% past week) in recent weeks also. Following are the ETFs that topped the S&P 500 this year.ETFs in FocusInvesco KBW Premium Yield Equity REIT ETF KBWY – Down 8.6%; Yields 5.52%Global X SuperDividend REIT ETF SRET – Down 8.6%; Yields 6.29%IQ US Real Estate Small Cap ETF ROOF – Down 12.6%; Yields 3.07%Invesco S&P 500 Equal Weight Real Estate ETF EWRE – Down 13.9%; Yields 2.91%     Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>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 Invesco KBW Premium Yield Equity REIT ETF (KBWY): ETF Research Reports IQ US Real Estate Small Cap ETF (ROOF): ETF Research Reports Invesco S&P 500 Equal Weight Real Estate ETF (EWRE): ETF Research Reports Global X SuperDividend REIT ETF (SRET): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksMay 26th, 2022

What"s next for the US housing bubble? Industry experts break down the bull and bear cases for home prices in the months ahead.

Where are home prices headed the rest of this year? Here's a look at both sides of the argument from some of the most renowned experts in real estate. dszc/Getty Images Concerns about a housing-market crash are growing as the Fed begins hiking interest rates. Over the past few weeks, we've collected experts' views on the direction of the market. Below, we've compiled four pieces highlighting both bearish and bullish views on the market. With mortgage rates rising as the Federal Reserve begins to hike the federal funds rate, investors and prospective homebuyers are wondering: Is the housing market due for a downturn?Some economic data shows that the market is already cooling. Pending-home sales fell 3.9% in April, by more than economists had expected and for a sixth straight month. New-home sales slumped by 16.6% from March, far more than the consensus estimate of -1.7%.Worries about the fate of the market are especially pertinent given the tear that home prices have been on since the start of the pandemic. Median home prices have risen as much as 27% since spring 2020, data from the Census Bureau and the Department of Housing and Urban Development indicated.But prices fell slightly for the first time since then in the fourth quarter of 2021, and they could continue to do so. To explore more on what direction the market could take in the months ahead, Insider collected the views of a handful of experts. The articles are shared below.Are we in a housing bubble? We asked 32 experts, and most said no. They explain their answers and offer insight about what we could see with housing prices in the coming months.peterschreiber.media; irina88w; Savanna Durr/InsiderThe group of experts — which includes esteemed economists, lenders, and investors — shared their insights and offered analyses of how the current market compares with previous booms and busts, as well as some predictions for what could come next.Even though most of the experts did not see an ongoing bubble, they overwhelmingly said the market could cool as higher interest rates and inflation drive down the value of buyers' cash savings.  2 top strategists at $2.6 trillion UBS break down why housing bubble concerns could be overblown — but also advise buyers against trying to time the marketjhorrocks / Getty ImagesSolita Marcelli, UBS Global Wealth Management chief investment officer Americas, and Jonathan Woloshin, the top equity strategist for the real estate and lodging sector for UBS Financial Services, said in an April 5 note that comparisons of the current market to that of the mid-2000s are misguided. "We believe there are a number of factors that differentiate today's housing market from that of the mid-2000s," Marcelli and Woloshin said. "This is not 2008."Still, the two strategists said they see the pace of home price appreciation slowing down in the months ahead as interest rates rise and homebuyers deal with inflation in things like food and gas.A chief economist who called the 2008 housing crisis warns that the US housing market is in the 'early stages of a substantial downshift' as demand subsides — and says surging home prices and rents are due to cool off in a big wayTomas Winz/Getty ImagesIn this piece, Ian Shepherdson, the founder and chief US economist at Pantheon Macroeconomics, breaks down why he thinks the growth of home prices and activity in the market is due for a big pullback. "The housing market is in the early stages of a substantial downshift in activity, which will trigger a steep decline in the rate of increase of home prices, starting perhaps as soon as the spring," Shepherdson said in a March report.One expert explains how today's housing market is different (and similar) to the real estate booms and busts of the recent pastEven though a full-blown housing crash is unlikely, market momentum could slow, suggests analyst John Wake."People always say, 'It's not going to be like 2005,' and yeah, that's pretty much certain," he said. "But we could get into a situation where prices fall 10% or 20%. That's not going to happen this year, but it could happen in the following year."Are we on the verge of a housing-bubble bust? An economist advises buyers to sit out the current 'irrational' market and lists the 11 most overvalued cities in the US.The Bellagio Hotel on the Las Vegas strip.George Rose/Getty ImagesKen Johnson, an economist at Florida Atlantic University, said in March that current market dynamics were "irrational" and recommended waiting to buy homes. While he said the entire US market was overvalued, some markets were frothier than others. This piece shares the 11 most overvalued cities in the country based on Johnson's model.Out-of-town homebuyers are driving up real-estate prices in these 10 overvalued cities, and it's fueling housing-bubble fearsf11photo/ShutterstockSticking with a more granular view of the US housing market, the real-estate brokerage Redfin identified in a February report 10 cities where housing prices were being driven up by outside investors. It broke down some of the factors driving the surges, such as favorable tax laws, budget disparities between buyers given varying local living costs, and people fleeing more expensive cities during the pandemic.A heightened appetite for flipping may be a sign of a bubble in the market, some say.Is the housing market setting up for a crash? 2 experts — including one who called the 2008 bubble burst — share the warning signs that a real-estate downfall is coming.ReutersIvy Zelman and Desmond Lachman are both relatively bearish on the US housing market, but for different reasons.Lachman, a senior fellow at the American Enterprise Institute, former deputy director for the International Monetary Fund, and former strategist at Salomon Smith Barney, said in an interview with Insider that rising mortgage rates were the driving factor behind why home prices would fall.Meanwhile, Zelman, a former Credit Suisse analyst and the founder of the research firm Zelman & Associates, is bearish because of issues stemming from potential supply increases. Are home prices going to crash? A real-estate expert who's written multiple books on investing strategy breaks down why prices could grow 'faster than we can get a handle on.'Michael H/Getty ImagesDavid Greene, the host of the BiggerPockets podcast and owner of a mortgage company, is extremely bullish on the housing market in the near term. "Prices are going to continue to grow. I think they're gonna grow faster than we can get a handle on them," he told Insider in March. "I think this spring is going to be one of the busiest and hardest homebuying seasons that we've seen in my lifetime."For this piece, we asked Greene to address several bearish talking points and why he disagreed with them. Read the original article on Business Insider.....»»

Category: personnelSource: nytMay 26th, 2022

Rabobank: Michael Burry Warns That The Economy Looks Like A House Of Cards... And He Is Right

Rabobank: Michael Burry Warns That The Economy Looks Like A House Of Cards... And He Is Right By Michael Every of Rabobank House of Cards The data that got some heads, and markets, turning yesterday was US new home sales, which slumped 16.6% m-o-m and 26.9% y-o-y to a seasonally adjusted annual rate of 591,000 in April, the lowest level since April 2020. Economists had expected a figure of 748,000. Yes, this is always a very choppy series, but the drop was widespread: -5.9% in the Northeast, -15.1% in the Midwest, -19.8% in the South, and -13.8% in the West. That’s synchronicity which takes me back to a conversation I had with a Russian-American in mid-2006 when working at another bank, who explained why the US housing market was so vast that it was mathematically impossible for all homes to ever do anything --bad!-- at the same time, and so US mortgage-backed securities were the safest of investments. I kept up a rictus grin, as at that time I had been writing for years about a looming US housing crash, the Western replay of Asia’s 1997 crisis, which the traders around me were disinterested in hearing about: they had brought the guy in to explain how to profit from MBS sales. Relatedly, today has seen Michael Burry, of ‘The Big Short’ fame, tweet: ‘As I said about 2008, it is like watching a plane crash. It hurts, it is not fun, and I’m not smiling.’ Once again I agree with him. Of course, there was no sign of a property slump in the April sales report – quite the opposite. Prices soared yet again, reaching a median of $450,600 vs. $435,000 in the prior month. That is 3.6% m-o-m, which is 43% y-o-y if you annualized(!) That is a trend that has been going on for some time: according to First American's chief economist, in April 2021, 25% of new-home sales were priced below $300,000, but in April 2022, only 10% of new home sales were. This is part of ‘the strong economy’ the Fed keeps talking about, which is very 1997/2008 redux – as is their inability to understand what is actually going on (again). Let’s see what their minutes say much later today. However, we are certainly not seeing the same supply and price surge as before the last US housing crash. Inventory of homes for sale rose to 9 from 6.9 months on the back of that April sales fall, but there is not anywhere near the same scale of construction being seen as before the last crash. Lessons have been learned on that front, perhaps. Regardless, this does not mean good things for home buyers. Business Insider quotes a TD Bank survey of more than 1,000 hopeful buyers which found 29% were uncertain whether now was a good time to purchase a home, with affordability (67%) and down-payments (46%) the biggest concerns. Only 36% of this year's prospective homebuyers believed now was a good time to buy vs. 59% in 2021 and 68% in 2020. Likewise, the 30-year US fixed-rate mortgage jumped above 5% in April for the first time since February 2011, and averaged 5.25% in the week ending May 19. So, the logical economist forecast must be that prices have to come down - right? Except they can’t. There is massive supply-side inflation in almost everything involved in building a home, and outright limits on availability of some items regardless of price. That trend is not reversing any time soon and could get worse depending on energy prices and Chinese lock downs. Meanwhile, all those would-be home buyers have to rent. That pushes up rents, which are by definition rent-seeking; and that pushes up US inflation because of how the CPI basket is calculated. So, the next logical economist forecast must be that interest rates have to come down – right? Except they can’t either. If they do, they will try to shift the demand curve to the right just as the supply curve remains shifted to the left, with inflation already far too high. Crucially, the ceiling for rates may be far lower than 7.5%, 8.3%, or 10% y-o-y headline inflation suggests should be the case because of the demand side; but the floor for where rates will go is also far higher because of the supply side. If one is presuming rates can fall far and fast, then the implied collapse in demand is so bad one should be making those calls from a bunker – which, full disclosure, is not something I am opposed to in principle. I think Burry would concur. Moreover, as I keep repeating, governments will not just sit there and do nothing: but their actions will shift supply curves to the left, and demand curves to the right. On the demand side, will Australia’s new government do what every other one has done, and try to shoehorn people into unaffordable houses – perhaps with another cash giveaway from all taxpayers, including renters, directly to home buyers (which actually means home sellers)? On the demand side, China just agreed to buy Brazilian corn for the first time; hooray for Brazil, and welcome to higher corn prices for former buyers of that crop if China does what it usually does and stocks up aggressively (for whatever political or geopolitical reason). On the supply side, India just banned the export of sugar following the same on wheat, complicating global agri trading even more, and helping to push up prices elsewhere. There is likely to be much more of this to come all over - high prices now create incentives to hoard, not export, inverting usual economic logic. On the supply side, US shale firms are using profits to pay down debt or buy back shares rather than drill, baby, drill because of the White House’s aversion to fossil fuels. The Saudis insist on keeping Russia as a member of OPEC+ and are refusing their role as swing producer for the US in time of need (though talks over the Straits of Tiran and President Biden killing off the Iran Deal by refusing to delist the IRGC as terrorists might indicate a belated diplomatic pivot by the States). Anyway, a supply-side lack of refineries is a pressing structural problem there is simply no short or medium-term solution to. On the demand side, the EU *may* be closer to a Russian oil embargo – although it is unclear if Hungary declaring a state of emergency overnight, allowing PM Orban to rule by decree, is a sign that this is closer or much, much further away, and/or if the EU is in trouble. Yes, the real-world impact of this is simply shattering on demand. UK consumers, already facing surging energy bills, have just been told the cap on what they can pay is to rise again this autumn, with expectations the average household bill could hit a staggering £2,800, up another £800, pushing millions more into fuel poverty. Totally unrelated to fresh images of PM Johnson quaffing alcohol at lockdown parties in No 10 Downing Street, the UK Chancellor is expected to introduce a windfall tax on energy companies and energy subsidies for households as soon as tomorrow. That is welcome – but means higher inflation, not only in the short term, but in terms of the shift in psychology towards expectations of such interventions. As someone who has lived in emerging markets and their crashes for years, not just the 2008 western one, the simple message is that there are times when demand collapses and interest rates have to be high anyway. (The RBNZ meet today, and the market suspects we will see another 50bp hike.) There are also times when the government steps in and makes things better,… and times when it steps in and makes things worse. One can have recession, high inflation, a weak currency, and high interest rates all at the same time. One can see stocks collapse and bonds yield massively negative real returns, and cash lose its value due to inflation. And crypto do a ‘Luna’. And gold do nothing versus the US dollar. In such times, think not of pyramid schemes, but of Maslow’s pyramid. Which is what commodity hoarders and subsidizing governments are doing. Meanwhile, along similar lines, as China and Russia carry out joint air-force patrols, George “Emmanuel Goldstein” Soros, looking even more like a walnut than Henry “Give Russia and China all of the things” Kissinger, warns Davos of the risks of ‘World War Three’ on one stage...  as New York Stock Exchange executives boast of how many more Chinese firms they expect to list there in the future on another. ¯backslash_(ツ)_/¯ The BBC carries another explosive expose on China’s alleged treatment of its Uighur minority just as the UN human rights chief Bachelet visits Xinjiang, prompting the US to lash out… at the UN. The Quad, meeting yesterday, initiated further measures to address Indo-Pacific economic security, including joint action to track illegal Chinese fishing, as China’s diplomats are on a whistle-stop tour through Pacific nations to see which of them might like a shiny new air or naval base. As flagged, US Trade Representative Tai also pointed out after the Biden tariffs hullabaloo that it was in the US interest to be “strategic” over removing tariffs – even if it sounds like she was lobbying her own government. Relatedly, we get US Secretary of State Blinken speaking on US China policy tomorrow, with early suggestions there will be no new developments – which is already seeing Congress lobby their own government for more hawkish action. None of these developments ease global tensions, suggest a rapid move back to ‘normal’ economics and lower inflation, or a true return to the pre-Covid market ‘new normal’, even if we get awful economic data. They collectively look a lot like ‘House of Cards’. Just as much as the economy, as Burry implies. Tyler Durden Wed, 05/25/2022 - 10:08.....»»

Category: blogSource: zerohedgeMay 25th, 2022

Zip Codes With the Highest Rent

Rents across the country have gone through a period of historical growth in the past two years. According to real estate research firm CoStar Group, rents in the U.S. rose 11.3% last year. In........»»

Category: blogSource: 247wallstMay 24th, 2022

U.S. Rent Prices Are Rising 4x Faster Than Income

Right along with their home-price counterpart, U.S. rental prices have risen to record highs across the country this year. A recent report by Clever Real Estate found that the national median rent price rose 149% from 1985 to 2020, while overall income grew just 35% in the same time period. If rent prices grew at… The post U.S. Rent Prices Are Rising 4x Faster Than Income appeared first on RISMedia. Right along with their home-price counterpart, U.S. rental prices have risen to record highs across the country this year. A recent report by Clever Real Estate found that the national median rent price rose 149% from 1985 to 2020, while overall income grew just 35% in the same time period. If rent prices grew at the same rate as income since 2000, the median rent in 2020 would cost $586 per month instead of $894—about 34% less, the study found, however, since 2000, rent prices have doubled in half of the 50 largest U.S. cities, with rates tripling in Nashville, Tennessee and San Antonio, Texas. Here are some additional key findings: Although renting remains cheaper than buying for most households nationwide, rent price increases since 2000 actually surpassed home price gains in seven metros: Detroit, MI Chicago, IL New Orleans, LA Birmingham, AL Richmond, VA San Antonio, TX Nashville, TN Five of the 50 most-populous metros have a rent-to-income ratio higher than the recommended 30%: San Francisco (48%) San Diego (40%) Miami (33%) San Jose, California (32%) Los Angeles (31%) Metros with the lowest rent-to-income ratio include: St. Louis (12%) Oklahoma City (13%) Cincinnati (16%) Why rent prices are increasing According to the report, soaring inflation, which jumped from 1.2% in 2020 to 7.5% in 2021, can account for some of the surge in rental rates. But since 2000, the median rent price has exceeded the inflation rate by 29%. During that time, the rental rate rose 90%, while inflation rose 70%. A number of social and economic factors determine rent prices, including: A competitive housing market: The median home sale price rose nearly 17% to $346,900 in 2021, according to the National Association of Realtors. The expensive market has priced many would-be millennial home buyers out of the market. Millennials who can’t afford homes are choosing to rent and rent for longer. High demand, low supply: Demand for apartments is booming, but the number of available units is scarce, giving landlords leverage to raise rates. New apartment construction hit a five-year low in 2020, with 83% of multifamily developers reporting construction delays. The costs of building supplies, such as lumber and plywood, are also rising to near record highs. Rent relief programs: Some cities and states implemented rent freezes to help keep rates low for struggling families during the pandemic. Those measures have largely expired, and landlords are factoring nearly two years of increases into their current rates. Migration: With remote work options available, wealthy tenants are moving out of expensive hotspots to more affordable cities, where they have greater purchasing power for luxury apartments. The takeaway: “The consistent preference for more space has driven the median monthly rate for a three-bedroom rental up 169% since 1985—the greatest increase among all units,” writes Jaime Dunaway-Seale, content writer at Clever Real Estate and author of the report. “However, one-bedroom apartments have shown the most rapid growth in the past two years as millennials—now predominantly in their 30s—want a place of their own without roommates. She continued, “As millennials get married and have children, demand for multiple-bedroom apartments could tick back up in the next decade. In fact, about 36% of cities are building larger apartments to accommodate growing families, remote work and online learning. Whether families will be able to afford it is another matter.” To read the full report, click here. The post U.S. Rent Prices Are Rising 4x Faster Than Income appeared first on RISMedia......»»

Category: realestateSource: rismediaMay 24th, 2022

Most Expensive Cities to Rent a Home

Rents across the country have gone through a period of historical growth in the past two years. According to real estate research firm CoStar Group, rents in the U.S. rose 11.3% last year. In........»»

Category: blogSource: 247wallstMay 23rd, 2022

Tchir: "It"s Too Early For The Fed To Change Their Messaging"

Tchir: "It's Too Early For The Fed To Change Their Messaging" Authored by Peter Tchir via Academy Securities, We Laughed, We Cried, It’s Way Worse Than Cats The market has become an exhausting and emotional roller coaster! Just a glance at the T-Report titles in the past month is enough to depress you: Welcome to Thunderdome!!! The Not So Good, The Bad, and the Ugly Bad to the Bone Duck and Cover Nowhere To Run, Nowhere to Hide Traditional vs Disruptive Portfolios (we will come back to this one) The “R” Word Rears its Ugly Head. Interspersed throughout we’ve had some calls for short-term market bounces that have enjoyed a modicum of success, but there has been a general theme, which unfortunately, the market has generally followed. Exhausted If I had to describe market participants right now, I’d use the word “exhausted.” A few weeks ago, it might have been “shell-shocked.” A few weeks before that, I might have dared to use the word “optimistic” or “fearful” (weird that both words come to mind). But right now, exhausted is about the best description that I can come up with for most people in markets! Friday did little to make people more comfortable as we rose on the open, sold-off in the afternoon, only to rally strongly into the close! How much was OpEx (option expiration) related or not is anyone’s guess, but it was another exhausting day of trading where it was easy to feel incredibly smart or incredibly stupid, or both, in a matter of hours. What’s Next? Who knows? I could make a bull case, a bear case, or an indifferent case, which tells me that I should probably be neutral, waiting for some clear signal. Here is what I’m watching and thinking about as we head into this week: Weeks leading into holidays are often good for markets! But if they are weak, the weakness tends to persist. Not much to look at here, at least until Thursday. Bitcoin held its own last week. I think crypto is a lynchpin for this market. We described the “disruptive portfolio” concept last week, so markets need crypto to stabilize. With the ECB coming after this market hard now (Lagarde has some strong words on the subject), bitcoin could face problems beyond those of its own making (like the unstable “stable” coins). Positive for now, but this could turn on a dime. The “better than bank account” stocks caught a strong bid on Friday into the close. These megacap stocks are key to index levels and the support seems good. The stocks are certainly “cheap” relative to a few weeks or months ago, so maybe they bottomed? Or maybe the stability in crypto and OpEx was enough to provide a surge into the close that won’t be followed through? The stock vs bond relationship has “normalized.” Bonds tended to zig this week when stocks zagged, and vice versa. The 60/40 funds acted like they were supposed to, and risk-parity trades made sense again. I do think that shifting correlations are crucial in a market driven by around the clock/across the globe algo trading, so this normalization of some major cross-asset correlations is potentially very positive. Recessions tend to take a long time to develop. The jump to recession chatter seems premature. Yes, I’m in the “hard landing” camp. Yes, I think Europe will be in a recession soon, if not already, largely due to the ongoing and increasing number of issues related to the war in Ukraine. But the earnings that triggered so much of the recession talk seem to say more about the cost base rather than the consumer (unless you were building in to your model infinite spending capacity for the average consumer). The 2 jobs for every person looking soundbite seems overdone. I cannot remember how many times I heard that from bulls last week. Whether they were bullish on the market or on the economy, they kept trotting out this one line. It almost felt “manufactured” or like some “power” had pushed a bunch of people on this particular soundbite. I am convinced that we have seen peak job availability (at least for the rest of this year). Munis caught a bid!!!! Admittedly, a small bid, almost microscopic, relative to the 10% or more decline from the start of the year, but a bid nonetheless. Inflows actually started a month ago, which wasn’t enough to stop the onslaught, but should help if this rebound is real. This is important as this could really mark a change in retail behavior (though if I’m correct in last week’s report, we should see money shift from equities to bonds as the ability to get returns in fixed income that were unheard of a year ago, should encourage that shift to some degree). Commercial Real Estate. The Fed watches this closely. Real estate feeds into the banking system faster than any other asset. Whether you are a local, regional, or global player, real estate (especially  commercial real estate) impacts your portfolio a lot! In any given area, there are only so many small businesses to lend to, so you get forced into real estate. The residential market is one thing, but it is the volatility in commercial that can impact banks quickly, which is why the Fed should be (and I suspect is) looking at this market closely. Location, location, location. We can all see the trends of where people are moving to and potentially working from (commercial real estate should do well where people are moving). But we can also see the cities (with some of the biggest commercial real estate exposure) that don’t yet appear to be “normalizing.” This is likely to be more of a regional issue than a national issue because of the importance of location. The persistence of WFH. It has been far more difficult than many senior managers thought to get people back to the office on a fulltime basis. Whether it is outright revolt (or the fear of revolt), workers hold the upper hand. Many companies are running short staffed already and are having difficulty filling open positions. They “know” that other employers are willing to allow more work flexibility to get or retain people so they are “handcuffed” in their ability to get people back in the office like they used to be (especially for jobs that don’t require physical proximity). That has been occurring without a new wave of COVID (which is starting to seem like a real possibility) or the emergence of new reasons not to commute (from subway safety to monkeypox virus (no comment)). I am not sure how much longer this WFH trend can continue without impairing office valuations and higher interest rates are not helping. Keep an eye on this sector for weakness, but be comforted that it is at the top of the list of what the Fed watches (they want nothing to impair the banks). Commercial Real Estate as an inflation hedge? I’ve heard this a lot but cannot get there, partly because of the point above, partly because of what we are seeing in the earnings of retailers (who presumably have commercial real estate costs), and partly because the Fed hikes cannot be helping. Bear Market Rallies are Vicious! The March rally, which was more than 15% for the Nasdaq 100 was both vicious (and with hindsight) a bear market rally. The viciousness of these rallies may explain the relentless buying of some of the most aggressive ETFs. Who wouldn’t want to make 20% in a couple of weeks? But it may also be why we still don’t seem to have experienced “capitulation.” A lot to think about, but very few conclusions! Bottom Line Rates should trade in narrower ranges. Rates should move in the opposite direction of stocks as markets “normalize.” The general trend is towards lower yields due to concern about the health of the economy and the Fed’s ability to maintain their pace of hikes. Credit should do well, but I’d be selling leveraged loans. They have outperformed too much and given the issuance in the past couple of years (where “tough” deals went to loans to get done) the “protection” relative to bonds is likely overstated. Add to that the potential total return if interest rates are low and I have to advocate heavily for BBB and BB bonds. I like owning them on a spread and an outright level (HY also showed some glimmers of hope). I like CLOs at the senior tranches and I’d buy the cheapest senior tranches because I continue to believe that it is easier to pick a perfect NCAA bracket than it is to create losses in a AAA CLO tranche (the same is probably true down to BBB, but I only want to seem a little crazy, not fully having gone off the deep end). CCC bonds are trickier - they will bounce massively on any rally, but with a recession being discussed, they aren’t for the faint of heart. Equities. A bounce would be nice and should maybe even be expected. Having said that, capitulation has not occurred and what looks “cheap” versus 6 months ago might only look “ok” versus a couple of years ago (and crypto concerns me). I guess I’m still cautious but close to neutral and am happy to change my mind here as indications of sentiment, positioning, and data come in. It is too early for the Fed to change their messaging. They might start hinting at it as financial conditions have tightened and the negative wealth effect is real, but the shift will be subtle for now. I think in order of things they watch, equity prices are in the distance, while commercial real estate and short-term credit markets are front and center (short-term credit is performing very well and there is large demand to lend, so all good there, and CRE isn’t a problem at the moment). What I could really use is some rest! A day or two (or even five) of calm markets would be nice (beyond that, I’d get nervous again). Markets where you don’t shake your head every time you spend 15 minutes away from the desk and can’t believe where prices are now. That would be nice, and we’d all enjoy it (and quite frankly, need it)! Tyler Durden Mon, 05/23/2022 - 14:42.....»»

Category: smallbizSource: nytMay 23rd, 2022

Counties With the Highest Rent in America

Rents across the country have gone through a period of historical growth in the past two years. According to real estate research firm CoStar Group, rents in the U.S. rose 11.3% last year. In........»»

Category: blogSource: 247wallstMay 22nd, 2022

Cities With the Highest Rent

Rents across the country have gone through a period of historical growth in the past two years. According to real estate research firm CoStar Group, rents in the U.S. rose 11.3% last year. In........»»

Category: blogSource: 247wallstMay 22nd, 2022

Remote work is making homes more expensive

Working from home is helping fuel a new American Dream of not being tied to the office — but it's also driving demand for homes and higher prices. An employee working from home.Getty Images An uptick in remote work is driving US home prices higher, a new NBER study found. It's because employees can now choose where they work — and it's fueling homebuyer migration. The research suggests Miami and Phoenix are the top destinations for migrating homebuyers.  The widespread shift to remote work has not only changed how Americans get work done, but also where they choose to do it – and it's making the housing market more expensive. A study from the National Bureau of Economic Research analyzed remote work data from December 2019 to November 2021, and found that by the end of the period 42.8% of American employees were still working from home part or full time. It also found some evidence pointing to a significant share of current remote work becoming permanent.NBER's working paper suggests at the same time, US house prices grew by 23.8% – the fastest rate on record — as remote work fueled both housing demand and homebuyer migration, which ultimately led to an increase in home prices and rents. "House price growth over the pandemic reflected a change in fundamentals rather than a speculative bubble," researchers wrote.As more US employees are given the option to work remotely, it's no surprise they're packing up their bags and moving to the most-desired towns and neighborhoods. Afterall, the American dream of homeownership becomes more appealing when it doesn't hinge on your proximity to a nine to five."The accelerated rise of remote work throughout the pandemic has been a driving force behind the uptick in homebuyer migration we have been tracking over the last two years," Taylor Marr, Redfin deputy chief economist, told Insider. However, the growth in remote work is making the already unaffordable housing market even more pricey, especially as housing inventory continues to fall short of buyer demand. The pandemic has challenged attitudes of the traditional work model. Employers are realizing that workers are capable of thriving outside of an office. As more businesses shift to either a fully remote or hybrid model, it's encouraging employees to reassess where they get their work done. For many Americans, that means seeking out a home that better fits their needs. However, whether these workers choose to move across the street or the country – it's driving home prices higher. "Many of these relocating households bring bigger budgets than locals and recent research from NBER has found that over half of the increase in house prices since 2019 is due to remote work," Marr said. According to Redfin, as home prices climb across the country, a surplus of remote workers are relocating to more affordable housing markets. According to the real estate brokerage, the share of homebuyers moving from one part of the country to another has reached an all-time high. Redfin's data shows that nationwide, 32.3% of its online home-shoppers looked to relocate in January and February – an increase from 31.5% in the first quarter of 2021 and up from 26% in 2019, prior to the pandemic. Of all housing markets, Miami and Phoenix top the list of places where homebuyers are relocating to the most. In these cities, home prices have climbed, 28% and 27.7% since 2021, respectively. "With out-of-towners driving up home prices in Phoenix, a lot of local first-time buyers have bowed out of the market,"  Heather Mahmood-Corley, Phoenix Redfin agent, said in a statement. "They just don't have the cash to compete, especially when there's such limited inventory."Read the original article on Business Insider.....»»

Category: topSource: businessinsiderMay 21st, 2022

See the 25 pitch decks that some of the hottest property-technology startups used to raise millions from top VCs like SoftBank and a16z

Property technology, or proptech, companies have boomed as home-buying and building management move online. Here's how 25 founders raised money. Cove.tool cofounders (from left) Daniel Chopson, Sandeep Ahuja, and Patrick Chopson built a platform that drastically cuts down the amount of time it takes to analyze a building's energy efficiency. They raised $5.7 million.Cove.tool Proptech firms were already hot, but the pandemic lured more VCs to invest in them than ever before. Real estate and construction tech tools became essential to many businesses once they went remote. These pitch decks reveal how 25 different startups pitched their visions and products to investors. See more stories on Insider's business page. The real estate and construction industries are undergoing a major tech transformation, as startups touting everything from online home-buying to interactive office management software attract millions of dollars in venture funding.While the property technology space, known as proptech, grew in size and dollars raised year over year, it has exploded during the pandemic. Stragglers who hadn't yet adopted digital workflows were forced to, and venture capitalists have been pouring money into the firms offering compelling new products in residential real estate, commercial real estate, construction tech, and short-term rentals and hospitality.Insider has collected 25 pitch decks that the most successful firms have used to raise funding from VCs and private equity firms.Check out the full collection below. And bookmark this page, because we will continue to update it with new pitch decks.Residential real estateAndrew Luong (left) and Justin Kasad, who raised a $39 million Series A for their single-family rental startup Doorvest.DoorvestResidential real estate, more than any other segment of the market, has been on fire during the pandemic, with home prices and rents in almost every corner of the country skyrocketing. Venture investment into the tech that powers the industry — and helps take it online and streamline formerly tedious processes — has followed. Startups that help investors purchase and manage homes from afar, tools for residential brokers and leasing agents, and digital closing companies that digitize paper-heavy real estate transactions have all raised impressive sums.Individual real-estate investors now have a way to compete with the big guys. Here's the 12-page deck one startup used to raise $39 million to make that happen.See the pitch deck a real-estate startup used to raise $27 million from SoftBank to build the world's largest housing company — without owning any homesHere's the investor deck that helped the real-estate startup Divvy raise a $30 million series A led by Andreessen HorowitzThe online mortgage broker Morty used this pitch deck to raise a $25 million Series B and enable more homebuyers to skip the traditional mortgage process.  Here's the pitch deck New York startup Uptop used to raise $5.5 million to expand its apartment-rental serviceHere's the pitch deck used to raise a $4.4 million seed round for an AI chatbot looking to transform how people find apartmentsCheck out the pitch deck real estate startup Offr used to raise $3.6 million in seed funding during COVIDCheck out the pitch deck camera subscription startup Giraffe360 used to raise $4.5 million to disrupt property photographyHere's the presentation digital closing startup Endpoint used to nab $40 million from its parent company, title giant First AmericanA real-estate listings startup trying to rival Zillow used this pitch deck to raise $25 million for its super-powered home search websiteRead the full pitch deck an NYC apartment-rental startup that's looking to disrupt brokers' fees used to raise $5.7 million from VCs and landlordsCommercial real estate Nick Gayeski, cofounder and CEO of Clockwork Analytics, which raised $8 million for its platform that monitors building ventilation.Clockwork AnalyticsEven though COVID-19 left many offices partially filled and retail stores vacant for months, startups that help companies make their spaces virus-safe — by, say, keeping track of social distancing or monitoring building ventilation — became extremely important. Firms that promised to reduce friction (and costs) in day-to-day operations by digitizing them also attracted venture investment.As building costs rise, this startup says real-estate developers can save millions by ditching spreadsheets. Here's the 12-slide pitch deck it used to raise $25 million.Software startup UtilizeCore raised $5.3 million off this sleek pitch deck to help property managers with mundane tasks like hiring janitors and plumbersSee the pitch deck the air-purification startup Wynd used to raise $10 million to help Marriott guests breathe easierVergeSense, an office-sensor startup that tracks employees' movements, just nabbed $9 million. From social distancing scores to real-time occupancy alerts, here's its pitch deck.See the pitch deck a startup that monitors building ventilation used to raise $8 million during the pandemicConstruction techMosaic cofounder and CEO Salman Ahmad works on ways to build homes faster and cheaper. He raised $14 million last year.MosaicThe pandemic boosted traditional construction companies' interest in the high-tech corner of the sector. Startups that make digital tools to manage worksites from afar suddenly became indispensable, while the current housing shortage brought even more attention to companies that are developing ways to build faster and more cheaply.A construction-tech startup that's developed a faster way to model a building's energy efficiency used this 13-page pitch deck to nab $5.7 millionOpenSpace, a startup that wants to be the telemedicine of construction, used this 24-page pitch deck to nab $15 million from investors including Menlo VenturesRead the 19-page pitch deck an online construction-parts marketplace trying to compete with Amazon used to raise millionsSee the pitch deck that lured investing powerhouse Tiger Global to lead a $30 million round for a startup trying to revolutionize construction spendingHere's the 21-slide pitch deck construction-tech startup Mosaic used to lay out its vision for the future of homebuilding and nab $14 million from backers including Andreessen HorowitzShort-term rentals and hospitalityFounder and CEO Roman Pedan raised $30 million for his short-term rental startup Kasa.KasaEarly in the pandemic, hospitality businesses stalled as travel halted across the globe. Once things opened back up, short-term rental companies with rural locations or a presence in smaller cities started to see the reservations — and funding — pour in. Tech-enabled companies rivaling Airbnb that enable flexible tourism, digital nomadism, and remote work have benefitted from the resulting boom in travel.A Latin American short-term rental startup just raised $48 million in a Series A led by a16z. Here's the deck it uses to pitch institutional landlords it looks to partner with.See the 26-page pitch deck Kasa Living used to raise $30 million while other short-term rental startups were foldingSee the pitch deck software startup Stayflexi used to raise $1.6 million helping hotels profit from guests willing to pay for late checkoutsHere's the pitch deck that Koala, a startup bringing an Airbnb-style marketplace to the wonky timeshare industry, used to raise $3.4 millionRead the original article on Business Insider.....»»

Category: topSource: businessinsiderMay 20th, 2022

3 Market-Neutral Funds to Sail Through an Edgy Market

Invest in market-neutral funds like ARGAX, BALPX, and CBHAX to hedge your portfolio, amid market volatility. Continuous volatility on Wall Street drew the major indexes close to the bearish territory, with the Dow, and the S&P 500 closing at their lowest level since March 2021 on May 19.Monthly inflation rates denoted by the Consumer Price Index “CPI” came in at 0.3% for the month of April, the highest in 40 years. Rising interest rate to counter inflation remains the biggest concern for investors, especially since U.S GDP fell 1.4% annualized in the first quarter of 2022. Any further aggressive moves by the Federal Reserve could push the economy into a recession, threatening the stock market. In fact, the Fed has already started to increase interest rates in a steady manner.China’s first-quarter GDP, came in at 4.8%, with several cities in that county under strict lockdown due to fresh threats from Covid-19 mutation. Also, the unemployment rate rose to 6% in March from 5.4% in February. These bottlenecks along with other factors have compelled major investment banks like Goldman Sachs and Citi bank to downgrade China’s GDP forecast. The United States, being one of the biggest trade partners of China, should also face a repercussion effect.Russia’s war against Ukraine, too, has led to further weakening of the post-pandemic recovery and a global supply chain disruption. This has impacted corporate profits as companies will take time to overcome regulatory, financial, and technology hurdles.Thus, looking at the current volatility in the U.S. stock market, a market-neutral fund is particularly relevant for protecting one’s invested capital. This type of fund provides stable returns at relatively lower levels of risk regardless of market direction.Market-neutral funds are designed to adopt a more precise approach by shorting 50% of the assets and holding 50% long. This method seeks to identify pairs of assets which has related price movements. The fund goes long on the outperforming asset and shorts the underperformer.For example, take a $1 million long position in Eli Lilly and a $1 million short position in Bayer both of which are large pharmaceutical companies. If pharmaceutical stocks fall, you will lose because of your long position in Eli Lilly but gain from the short position in Bayer.Moreover, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).Thus, we have selected three such market-neutral mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000 and carry a low expense ratio.The Arbitrage Fund ARGAX invests most of its net assets in equity securities of companies that have publicly announced mergers, takeovers, spin-offs, and other corporate reorganizations.John S. Orrico has been the lead manager of ARGAX since Sep 18, 2000, Most of the fund’s exposure is in sectors such as Technology, Industrial cyclical, and Finance as of 4/30/2022.ARGAX’s three-year and five-year annualized returns are nearly 4.7% and 3.8%, respectively. ARGAX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 1.51%, which is less than the category average of 1.9%.To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.BlackRock Event Driven Equity Fund Investor A Shares BALPX is known for investing the majority of its assets in equity securities and related derivative instruments with similar economic characteristics which have announced or undergoing material changes. BALPX aims to achieve long-term capital appreciation.Mark McKenna has been the lead manager of BALPX since May 6, 2015, and most of the fund’s exposure is in sectors such as Industrial Cyclical, Health, and Non-Durable as of 4/30/2022.BALPX’s three-year and five-year annualized returns are 3.5% and 4.0%, respectively. BALPX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 1.41%, less than the category average of 1.9%.Victory Market Neutral Income Fund Class A CBHAX seeks to achieve its objective by investing in market-neutral, rules-based proprietary investment strategy in the domestic and foreign equity and bond market.Mannik S. Dhillon has been the lead manager of CBHAX since May 31, 2018, and most of the fund’s exposure is in sectors such as Finance, Utilities, and Industrial Cyclical as of 4/30/2022.CBHAX’s three-year and five-year annualized returns are 3.2% and 3.3%, respectively. CBHAX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.78%, compared to the category average of 2.3%.Want key mutual fund info delivered straight to your inbox?Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >> Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>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 Get Your Free (BALPX): Fund Analysis Report Get Your Free (CBHAX): Fund Analysis Report Get Your Free (ARGAX): Fund Analysis Report To read this article on Zacks.com click here. Zacks Investment Research 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.....»»

Category: topSource: zacksMay 20th, 2022