Yardi: Market Dynamics Continue to be Healthy Almost Everywhere

According to the latest Yardi Matrix, U.S. multifamily rents rose slightly in March, coming in at $1,430 with year-over-year growth dropping slightly to 3.2%.  Yardi says that market dynamics continue to be healthy almost everywhere.

“The dynamics continue to be healthy almost everywhere. That gives investors a choice between potentially higher growth and higher yields in faster-growing, less-liquid markets, or slower, steadier growth in larger, more liquid markets.”

Click here to read the full report at Yardimatrix.com.

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The Big Opportunity for Investors in Opportunity Zones

We’ve been talking a lot about Opportunity Zones and you will undoubtedly hear more about them going forward.  A new report by Yardi takes a look at the tax incentives for investing in the 8,700+ opportunity zones across the country that were created by the tax reform passed by Congress in 2017.  Yardi says there are roughly 1.9 million multifamily units, 960 million square feet of office space and 180 million square feet of self storage space that are either in place or under construction in these opportunity zones.  They say the “opportunity is enormous” as there is a huge incentive for real estate investors – especially in low-income areas.  Indeed…

“The heart of the program is an incentive to reinvest capital gains, which must be placed in a qualified “opportunity zone fund.” Funds can be single- purpose vehicles or commingled. Shareholders who keep their investments for five years will pay no taxes on 10 percent of the investment’s gains.  After seven years, 15% of the gains will not be taxed. Shareholders who hold opportunity zone investments for 10 years can avoid paying taxes on all gains. Among the qualified investments are real estate, businesses and infrastructure.”

Click here to download the report at Yardimatrix.com.

Click here for an interactive map of Opportunity Zones across America.


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Home Sale Prices Jump in Opportunity Zones

According to new research from Zillow, real estate investors appear to be flocking to Opportunity Zones.  Their data show that areas designated as Opportunity Zones saw a surge in sale prices since that designation was made, which they say is an early sign that investors are eager for the tax breaks. Interestingly, they said that Census tracts that were eligible but were not chosen as Opportunity Zones saw a slowdown in sale price appreciation, while prices in designated Opportunity Zones grew by more than 20% annually.  Indeed…

“It’s still early, but we’re already seeing some signals that folks have begun to take up Uncle Sam on this offer,” said Zillow Policy Advisor Alexander Casey. “The rationale behind the zones is relatively simple. Proponents argue that a lot of the money generated as capital gains could be used as seed money in traditionally neglected communities – revitalizing infrastructure, fueling economic growth, and spurring job creation and overall prosperity. But whether this tax break will direct funds to the communities that need them the most – or what happens when money arrives – remain open questions. But what’s clear in the meantime is that among the vast array of neighborhoods selected as Opportunity Zones we’ve witnessed wildly different housing market trends up to this point, which might hint at the future of these communities.”

Click here to read the full story on Zillow.com.


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Delinquency and Foreclosure Rates Lowest in 20 Years

According to the latest CoreLogic Loan Performance Insights Report, as of January 4% of home mortgages were in some stage of delinquency – the lowest level in 20 years.   This rate includes all home loans 30 days or more past due and includes those in foreclosure.   In addition, CoreLogic points out that no state logged an annual gain in its serious delinquency or foreclosure rate, however North Dakota posted a gain in the overall delinquency rate.

Click here to read the full report at CoreLogic.com.

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Zumper’s National Rent Report for April

Rental information site Zumper recently released their National Rent Report for April showing that the median national rent for 1-bedroom apartment was $1,214 and the median two-bedroom rent was $1,445.  Year to date, one bedroom prices are down 0.5% and two bedroom prices are up 0.6%.  Zumper analyzes rental data from over 1 million active listings across the United States. Data is aggregated on a monthly basis to calculate median asking rents for the top 100 metro areas by population, providing a comprehensive view of the current state of the market. The report is based on all data available in the month prior to publication…..be sure to check out their entire list of 100 cities.

Click here to read the full report at Zumper.com.


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Factors that Keep Buyers from Finding the Right Home

A recent report by the NAHB’s Eye on Housing revealed some of the reasons potential homebuyers can’t seem to “pull the trigger” on purchasing.  Data from Q4 of 2018 show that 58% of active buyers were looking for 3 months or more.  So what’s holding them back?  Well, the obvious one, prices, but also the home’s features and the desired neighborhood.  Of course these are needs that real estate investors zero-in on and strive to meet each and every day.  Indeed….

“The most important reason is they can’t find a home at a price they can afford (49%), followed by not being able to find a home with the features they want (44%), and not finding a home in the neighborhood of their choice (43%).”

Click here to read the full story at the NAHB’s Eye on Housing.


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Yardi: Annual Growth in Multifamily Rent Highest Since 2016

According to the latest Yardi Matrix, U.S. multifamily rents rose slightly in February, coming in at $1,426 with year-over-year growth holding firm at 3.6%.  Yardi reports that this annual growth rate is the highest since late 2016.

“The staying power of the cycle is a major concern in a market that has had an unusually long run without a downturn. Multifamily, however, continues to defy those worries, and the latest numbers are evidence that the market has strength to perform well for a while, even if the economy or other commercial real estate segments slow down.”

Click here to read the full report at Yardimatrix.com.


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Property Taxes by State

We have had several posts about property taxes and their importance to your bottom line and your property’s value.  The NAHB’s Eye on Housing says that property taxes can vary widely across states both in terms of annual taxes paid as well as effective tax rates.  There data show some interesting corollaries with those states with high overall taxes and those with lower tax climates.  Indeed….

“State and local property taxes tax more than just residential real estate. State and local governments also collect property taxes on commercial real estate, industrial real estate, and personal property owned by individuals as well as businesses.”

Click here to read the full story at the NAHB’s Eye on Housing.


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The Most Expensive Neighborhood in Every State

What are the most expensive neighborhoods in the country?  Well, if you have to ask……The data-crunchers over at Realtor.com recently put pen to paper and calculated the median listing price for every ZIP code in America to come up with the most expensive neighborhood in every state.  Does yours make the list?

“…There’s no other way to explain our fascination—make that obsession—with the biggest, the best, and the richest. We always desire a glimpse inside the lives of the wealthiest among us, to learn what cars they drive, what clothes they wear, and, most importantly, where they live…”

Click here to read the full story at Realtor.com.


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Top Metros for Low-Income Homeownership

Which metropolitan areas have the highest rate of homeownership for low income families?  That’s the question that Redfin recently put to the test in a recent report.  Interestingly they do point out that in general, homeownership for people in the bottom income quartile is more common where housing is relatively inexpensive….that’s genius…(just be sure to look at their data set).

“Homeownership allows people to share in the prosperity of their communities and gain wealth through home equity,” said Redfin chief economist Daryl Fairweather. “In many expensive metros, low-income residents aren’t able to access the benefits of homeownership because of a lack of affordable starter homes…”

Click here to read the full report on Redfin.com.


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