The NAHB’s Eye on Housing is reporting that the shortage of labor and subcontractors reached a critical point in July with the shortage of rough carpentry contractors being experienced by 90% of builders surveyed. According to the results, “shortages of labor directly employed by builders were at least fairly widespread for each of the 15 occupations, ranging from a low of 47 percent for building maintenance managers to a high of 83 percent for rough carpenters.” The survey was conducted in July for the NAHB/Well Fargo Housing Market Index.
FortuneBuilders nailed it when they said that distressed properties serve as the source of some of the best deals to be had on the market, and can be found in many different forms. Indeed….Today’s infographic from FB illustrates eight unique ways to find distressed properties….Happy Friday!!!
The U.S. government is reporting that total construction spending in July was estimated at $1,315.4 billion,which is 0.1% higher than June’s revised estimate and 5.8% higher than July, 2017. Residential construction was at a seasonally adjusted annual rate of $560.1 billion in July, 0.6% higher than June’s revised estimate.
Click here to read the full report on Census.gov.
National apartment listing site ABODO recently reported that the median nationwide rent price for one-bedroom units in September slightly rose 0.86% to $1,022 (still down year to date) with two-bedroom units coming in at $1,294 (up 3.19% year to date). ABODO uses over 1 million listings across the United States to calculate the median 1-bedroom rent price by city, state, and nation and then track the month-over-month percentage change. To avoid small sample sizes, they restrict their analysis to cities meeting minimum population and property count thresholds.
“…As the Fed continues to raise interest rates, however, and the economy continues to heat up; while unemployment is low, and the single-family home shortage shows no signs of abatement, it follows that both one and two-bedroom unit prices will continue, on average, to rise.”
We’ve had a lot of posts about the lucrative student housing market and its “evergreen” potential. To that end, a recent report from Homes.com looked at 150 college towns from across the nation to come up with their “2018’s Best College Towns & Cities in America.” In it, they examined data about the average purchase price and monthly rent of a 3-bedroom home in each location, sourced from listings on Homes.com. Then, they revealed the college towns and cities they think you should consider as a landlord to ensure the highest yield and return on your investment. If you already own or are thinking about entering this segment of the market, this report is worth a look.
Rental information site Zumper recently released their National Rent Report for September showing that the median national rent for 1-bedroom apartment came in at $1,209 and the median two-bedroom rent was $1,447. Year over year, both one and two bedroom prices are up 2.2% and 3.2%, respectively. 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.
New data from the U.S. Department of Commerce’s Bureau of Economic Analysis report that personal income increased 0.3% in July. In addition, wages & salaries, the largest component of personal income, increased 0.4% in July, the same increase as in June.
“The increase in personal income in July primarily reflected increases in wages and salaries, personal dividend income, and rental income”
Click here to read the full report at the U.S. Bureau of Economic Analysis.
According to the latest CoreLogic MarketPulse Report; The foreclosure rate is back to its “pre-crisis” Level with judicial states continuing to have higher foreclosure & serious delinquency rates, refinancing among rising rates shows homeowners are more likely to choose cash-out and longer term and highlights from their Home Price Index. CoreLogic’s MarketPulse provides monthly insight into the current and future health of the U.S. economic climate with particular focus on housing and mortgage metrics.
Click here to read the full report at CoreLogic.com.
According to the latest ATTOM Data Solutions U.S. Foreclosure Market Report, year-over-year foreclosure starts increased in 44% in 96 of the 219 metropolitan statistical areas (44%) analyzed for the report. There are a total of 30,187 U.S. properties that started the foreclosure process for the first time in July, which is up 1% from June and up less than 1% from 2017. ATTOM says this represents the first year-over-year increase in foreclosure starts nationwide following 36 consecutive months of year-over-year decreases. In addition, twenty-one states posted a year-over-year increase in foreclosure starts in July, including Florida (up 35%); California (up 3%); Texas (up 7%); Illinois (up 7%); and Ohio (up 2%).
“…Gradually loosening lending standards over the past few years have introduced a modicum of risk back into the housing market, and that additional risk is resulting in rising foreclosure starts in a diverse set of markets across the country…” Said Daren Blomquist, senior vice president with ATTOM Data Solutions.
Just as we’ve had several posts about keeping an eye on the millennial generation, we also need to be watching that other elusive group, baby boomers (those born between 1946 & 1964). A recent report by Fannie Mae and the University of Southern California says in the coming years boomers will be exiting the homeownership arena as they become renters, move to care facilities or even die. They note that boomers currently inhabit 46 million owner-occupied homes that are worth an estimated $13.5 trillion. For their report, they analyzed the attrition rates of past generations of older homeowners and used their findings to project future homeownership exits by this aging cohort.
“With the oldest Boomers now in their early 70s, the beginning of a mass homeownership exodus looms on the horizon, fueling fears of a “generational housing bubble” in which homeownership demand from younger generations is insufficient to fill the void left by multitudes of departing older owners.”
