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According to the latest Yardi Matrix, U.S. multifamily rents fell ever so slightly in November, dropping $2 to $1,419, while year-over-year growth fell by 10 basis points to 3.1%.  In addition they point out that rents are down $3 from the peak of $1,422 in September.  The attribute the small decline to normal seasonal fluctuations.  Indeed…

“2018 is shaping up to be another solid year for the multifamily market. Rent growth for the year is 3.1%, which slightly tops our estimate—and those of most market prognosticators—coming into the year. U.S. multifamily rents have stalled in the fourth quarter, but that reflects a typical seasonal pattern.”

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

We have had a lot of stories about where people are moving to and perhaps more importantly, why and from what.  A recent article on Realtor.com says that America is going through a period of profound migration with some places losing while others are gaining – which is having an enormous impact on both of these respective areas (where they came from and going to).  To that end, the folks over at Realtor.com recently analyzed the data to find which metro areas are gaining the most residents and which ones that area seeing the biggest drain. Spoiler alert;  by and large, they’re heading south.

“Right now the numbers are showing [people moving]to the West and South, and away from the Northeast and Midwest,” says demographer Ken Gronbach of KGC Direct. “Cities where taxes are low and housing [costs are]reasonable will see a huge influx of people over the next five to 10 years.”

Cities with the biggest net gains:

1. Phoenix, AZ
2. Riverside, CA
3. Austin, TX
4. Houston, TX
5. Orlando, FL
6. Dallas, TX
7. Las Vegas, NV
8. Columbia, SC
9. Tampa, FL
10. Charlotte, SC

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

Ok…as a regular reader you know that we’ve posted a whole lot about millennials, but guess who’s coming up on their heels?  Generation Z – and they approach finances way differently than their older siblings.  Are you ready for them???  Today’s infographic from Rave Reviews shows how Generation Z is perhaps taking a more pragmatic approach to their finances. 

Hat tip to RaveReviews.com

Over the past few years we’ve had several stories about HELOC loans (home equity lines of credit) and their potential expiration creating havoc in the housing market among current homeowners.  However, as Keeping Current Matters points out, as we’ve experienced strong price appreciation over the last last 6 years they show that homeowners are being much more responsible with their home equity this time around.  After all, according to data, over 48% of all single-family homes in the country have over 50% equity.  What a difference indeed.

“When real estate values began to surge last decade, people started using their homes as personal ATMs. Homeowners would refinance their houses and convert their equity into instant cash (known as “cash-out” refinances). Because homes were appreciating so rapidly, many homeowners tapped into their equity multiple times….This left homeowners with little-or-no equity left in their homes, so when prices started to fall many homeowners found their houses in a negative equity situation…”

Click here to read the full story on Keeping Current Matters.

The U.S. Department of Housing and Urban Development recently announced that HUD Secretary Ben Carson will be chairing a new council, composed of 13 federal agencies, that will engage with all levels of government on ways to better use taxpayer dollars to revitalize low-income communities.  It will work to improve revitalization efforts by streamlining, coordinating, and targeting existing Federal programs to economically distressed areas, including Opportunity Zones.  The committee, known as the White House Opportunity and Revitalization Council was formed via an Executive Order from President Donald J. Trump.

Charles Tassell, Chief Operating Officer of National REIA, said “In an effort to help streamline reinvestment in America, President Trump has asked Secretary Carson to lead a 13 department team in focusing up to $6T in untapped equity that could rejuvenate impoverished areas through Opportunity Zone tax incentives!  Unlike previous zones, the idea behind the Opportunity Zones is to unleash market forces and private money into areas desperately in need of jobs, housing, and business investments…by 2026.  If you aren’t looking into these areas now, you are missing out on the ground floor growth potential!”

The information below is from a HUD release dated 12/12/18:

SECRETARY CARSON TO LEAD WHITE HOUSE
OPPORTUNITY AND REVITALIZATION COUNCIL

CREATING OPPORTUNITY FOR ALL: President Trump is encouraging investment to create opportunity in distressed communities. 

• President Trump today is signing an Executive Order establishing the White House Opportunity and Revitalization Council.
• • The Council will be chaired by Ben Carson, Secretary of Housing and Urban Development, and comprised of 13 Federal agencies.
• The Council will engage with all levels of government on ways to better use tax payer dollars to revitalize low-income communities.
• The Council will improve revitalization efforts by streamlining, coordinating, and targeting existing Federal programs to economically distressed areas, including Opportunity Zones.
• • Lack of coordination and targeting has led to cumbersome applications, program waste, and ineffective benefits.
• The Council will consider legislative proposals and undertake regulatory reform to remove barriers to revitalization efforts.
• The Council will present the President with a number of reports identifying and recommending ways to encourage investment in economically distressed communities.

ENCOURAGING INVESTMENT: Opportunity Zones will spur private investment to revitalize hurting communities and unleash their economic potential.

• In 2017, President Trump signed the Tax Cuts and Jobs Act, which established Opportunity Zones to incentivize long-term investments in low-income communities across the country.
• These incentives offer capital gains tax relief to investors for new investment in designated Opportunity Zones.
• Opportunity Zones are anticipated to spur $100 billion in private capital investment.
• Incentivizing investment in low-income communities fosters economic revitalization and job creation and promotes sustainable economic growth across the Nation.

LIFTING UP COMMUNITIES: Opportunity Zones help drive economic growth and lift up communities that have been left behind.

• Opportunity Zones are a powerful vehicle for bringing economic growth and job creation to the American communities that need them the most.
• • On average, the median family income in an Opportunity Zone is 37% below the state median.
• • The average poverty rate in an Opportunity Zone is 32%, compared to the national rate of 17%.
• • There are approximately are approximately 760,000 persons living in public housing within Opportunity Zones.

• 8,761 communities in all 50 States, the District of Columbia, and 5 Territories have been designated as Opportunity Zones.
• • Nearly 35 million Americans live in communities designated as Opportunity Zones.

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Click here to read the media advisory at HUD.gov.

RPOA’s Rental Property OWNER & Real Estate INVESTOR Podcast hosted by Brian Hamrick

In a recent RPOA podcast, Brian Hamrick talks with Frederick Kidd about nuts & bolts techniques involved in successful short-term rental investing – especially when some owners are getting 3 to 4 times what they would be making from a long-term rental. But, as Brian points out, for every investor who’s making a killing with their short-term rental, there’s another investor who either hasn’t gotten started or is losing money because they’re doing it wrong.  Frederick Kidd shares his best practices for managing short-term rentals remotely, finding the right team members, understanding the expenses, getting the 5-star ratings from guests, communicating effectively when problems occur, and the top things you must do to be successful.  If you’re interested in getting into this market this podcast is a great place to start.

Government-back giants Freddie Mac and Fannie Mae have announced they will suspend eviction lockouts over the holiday season.  As reported by Mortgage News Daily, the GSEs (Government-Sponsored Enterprises) will start their eviction moratorium (applying to single-family through 4-unit properties) from December 17 through January 2, 2019.

“We believe it is important to extend the timeline of help for struggling borrowers during the holidays,” said Jacob Williamson, Vice President of Single-Family Real Estate at Fannie Mae.

Click here to read the full story at Mortgage News Daily.

Earlier this month a group of tenants and landlords in Seattle, Washington teamed up with the Institute for Justice to file a class action lawsuit against the city for its use of invasive, warrantless searches to inspect rental units. According to a recent article in the Rental Housing Journal, the lawsuit doesn’t seek to stop the city from inspecting rental units (where the tenants agree to the inspection) or keep the city from addressing problem properties. It does, however, want the city to stop entering  private homes of Seattle’s renters without consent or a legally obtained warrant that is based on evidence of a specific problem or issue.  Indeed…

“By subjecting tenants to random, government-mandated inspections that would not occur if that same person owned their home, Seattle is treating renters like second-class citizens,” said William Maurer, the managing attorney of the Institute for Justice’s Washington state office. “Your home is your castle, regardless of whether you rent or own it. It is plainly unconstitutional for Seattle to force renters to open up their homes to government inspectors when nothing is wrong inside.”

Click here to read the full story at Rental Housing Journal.

Click here to read the full release at the Institute for Justice.

The U.S. Department of Housing and Urban Development (HUD) recently awarded over $23 million to nearly 80 fair housing organizations working to protect consumers from housing discrimination through their Private Enforcement Initiative (PEI).  These grants will be used by fair housing organizations across the country so they can carry out testing and enforcement activities.  Be sure to look at the list of recipients in your city and state.

“It’s been 50 years since the passage of the Fair Housing Act, yet the fight against housing discrimination continues,” said Secretary Ben Carson. “Today we are making another investment to support our fair housing partners and protect families from discrimination.”

Click here to read the full release, including all of the various recipients, from HUD.