Rents Grow & Vacancy Rates Shrink in Manufactured-Home Communities
BY BRAD BECKETT ON OCTOBER 23, 2019
A new study says that as the demand for workforce housing is growing, so too is the demand for renting in manufactured-home communities (MHC). Citing a recent study from Marcus & Millichap, the Scotsman Guide is reporting that this trend is being fueled by the relatively low price of renting in an MHC compared to the cost to rent an apartment. They say that as a result of this demand, vacancies within MHCs are decreasing, causing rents to rise. Indeed….A little Econ 101:
“The shrinking vacancy rate is boosting rent growth nationwide, Marcus & Millichap reported, with manufactured-housing units in the Southeast region posting the largest year-over-year rent increase this past July…”
Click here to read the full story at the Scotsmanguide.com.
Homeowners Tapping into the Auxiliary Dwelling Unit Trend
BY BRAD BECKETT ON OCTOBER 23, 2019
Recently we saw a garden shed apartment that was being rented out for over $1k per month, now we’ve learned from CNBC’s Diana Olick, that more & more homeowners are carving out revenue streams from their backyards by constructing auxiliary dwelling units (ADU). So, what is this new real estate investing trend and how exactly does it work?
Housing America's Older Adults
BY BRAD BECKETT ON OCTOBER 22, 2019
We have posted a lot about the growing segment of retiring baby-boomers and where/how they’re going to live. A new report from Harvard’s Joint Center for Housing Studies (JCHS) says “housing inequality is becoming increasingly evident among older Americans as the number of older households climbs to unprecedented levels” and with that the requisite cost burden warnings. However, they also remind us that between between 2012-2017, the number of households headed by someone 65+ grew from 27 million to 31 million. And, as real estate investors know, they will all need a place to live – whether it’s a downsizing or just a relocation.
“The falloff in homeownership rates among those approaching retirement, and the elevated levels of mortgage debt among those who do own, is concerning,” says Chris Herbert, Managing Director of the Joint Center for Housing Studies. “And there are significant differences in owners and renters when it comes to preparedness for retirement.”
“…homeowners have far greater net wealth than renters: in 2016, the median homeowner age 65 and over had a net worth of $319,200, compared to the same-age renter whose net worth was just $6,700…”
Click on the chart above to make it interactive.
Top 10 Markets for Flipping
BY BRAD BECKETT ON OCTOBER 21, 2019
The good folks over at Realtor.com said that it seems like everyone is getting into real estate game or at least dreaming about it. In fact, they remind everyone that it’s just not as easy as it looks on HGTV and that something called reality sets in. That’s why their economics team crunched the numbers to find the hottest markets for investors – the ones with cities where the highest percentages of home sales are for flipping or turned into rentals, usually after a rehab.
“To truly make bank in the housing investment game, you need to pick your markets carefully—especially since profits just about everywhere are being squeezed by high home prices, a shortage of affordable older places for sale, and cutthroat competition from legions of buyers and fellow investors.”
Housing Starts & Building Permits Down in September
BY BRAD BECKETT ON OCTOBER 21, 2019
The U.S. government is reporting that privately‐owned housing starts in September were at a seasonally adjusted annual rate of 1,256,000. This figure is 9.4% below August’s revised estimate but is 1.6% higher than September, 2018. Single‐family housing starts in September were at a rate of 918k, which is 0.3% above August’s revised figure. September’s rate for units in buildings with five units or more was 327k. Privately‐owned housing units authorized by building permits in September were at a seasonally adjusted annual rate of 1,387,000. This figure is 2.7% below August’s revised rate but is 7.7% higher than September, 2018. Single‐family authorizations in September were at a rate of 882k, which is 0.8% higher than August’s revised figure. Authorizations of units in buildings with five units or more were at a rate of 470k in September.
Click here to read the full report at the U.S. Census Bureau.
Benefits of Joining a REIA
BY BRAD BECKETT ON OCTOBER 11, 2019
This week’s infographic is really a no-brainier. It illustrates just a few of the awesome benefits of joining a real estate investors association, or REIA as they’re commonly known. You really do get “a bang for your buck” when you become a part of a local community of real estate investors. Click here to find a REIA near you! Happy Friday!!!
FTC Says Flipping Seminars with HGTV Stars are Scams
BY BRAD BECKETT ON OCTOBER 9, 2019
We have all watched those TV reality shows….you know the ones that make it look really easy to flip an old rundown house into thousands of dollars in profits. Well, Tarek & Christina aside, the Federal Trade Commission and the State of Utah recently announced that they were charging a Utah-based company with lying to consumers in order to convince them to attend allegedly free real estate seminars across the country. HousingWire is reporting that the FTC says the company (Zurixx) promised to give away the secrets to making money flipping houses at their events, but actually charged just thousands of dollars for what they say were supposed “secrets.” In addition HW reports that the FTC says the entire operation is a scam, with the company allegedly using “deceptive promises of big profits to lure consumers into real estate seminars costing thousands of dollars.”
“…Zurixx entices people to attend its “free” real estate seminars by using HGTV stars and other TV personalities as celebrity endorsers and claims that attendees can learn how to flip houses to make money……Zurixx’s business model has come under fire in recent years, with many customers accusing the company of using false advertising to entice them to attend the company’s events…”
National REIA believes that the best place to get started in real estate investing is to attend a meeting of your local NREIA affiliated REIA (aka a real estate investor association). Click here to find a group near you.
Top 10 Counties with Worst & Best Home Affordability
BY BRAD BECKETT ON OCTOBER 8, 2019
According to new research from ATTOM Data Solutions, 74% of the U.S. housing markets is unaffordable for average wage earners searching for a median-priced home. So, where are the areas that are affordable for average wage earners? Using data from their Q3 2019 Home Affordability Report, they found the best and worst places for home affordability in America. They determined affordability for average wage earners by calculating the amount of income needed to make monthly house payments (mortgage, property taxes and insurance, etc) on a median-priced home, assuming a 3% down payment and a 28% maximum “front-end” debt-to-income ratio. Indeed…
“Buying a home continues to be a rough road to navigate for the average wage earner in the United States. Prices are going up substantially faster than earnings in 2019 without any immediate end in sight, which continues to make home ownership difficult or impossible for a majority of single-income households and even for many families with two incomes,” said Todd Teta, chief product officer with ATTOM Data Solutions.
Backyard Shed in San Diego Rents for $1050 per Month
BY BRAD BECKETT ON OCTOBER 7, 2019
The free market is a wonderful thing but, as we’ve now seen in California, the politicians have put so many restrictions on providing affordable housing that a backyard shed in San Diego is renting for just over $1k per month. According to the listing on Zumper (as reported by FOX News) a 200 sq. foot “studio” (looks like a shed to us), located in one of San Diego’s most walkable neighborhoods, is renting for $1,050 per month! The rental comes with plumbing, bathroom & shower, kitchen (with a small refrigerator and stove), laminate flooring and even has air-conditioning….but no parking space. Be sure to check out the Zumper listing for more photos. Maybe this is what they call an “old school” tiny-house?
FOXNews.com
Demand for Vacation Homes Sees Increase
BY BRAD BECKETT ON OCTOBER 17, 2019
We have had several posts about owning vacation homes – whether to rent them out, use them as a 2nd home or both. With that in mind, a new report from the National Association of Realtors says that increased financial wealth and low mortgage rates have boosted the demand and price of vacation homes. In fact, they report that between 2013 & 2018 the median sales price in “vacation home counties” increased at a slightly higher pace than all new & existing homes sold. They used data from the U.S. Census Bureau’s American Community Survey to examine the 206 counties (out of 3,141 total) listed as “vacation home counties” to come up with their findings.
Lawrence Yun, NAR’s chief economist, says the present figures are telling, especially when compared to data from 10 years prior. “As of 2018, household net worth reached an all-time high of $100.3 trillion – that’s nearly double from a decade ago when wealth declined during the recession. Some of this tremendous growth in wealth, although concentrated, increased demand for vacation homes.”
Click here to read the full report at the National Association of Realtors.
