The folks over at Arbor remind us that the average suburban home with a yard and a two-car garage may not be the first image that the word “rental” brings to mind, but single-family homes have quickly become one of the most sought-after rental sectors on the market. To that end, they put together this handy infographic that takes a look at the demographic factors that are contributing to a surge in single-family home rentals. Happy Friday!!!
BY BRAD BECKETT ON JULY 16, 2018
While foreclosure starts are decreasing across the nation, they actually increased in 40% of local markets, according to ATTOM Data Solutions’ Midyear 2018 U.S. Foreclosure Market Report. There were 362,275 U.S. properties with foreclosure filings (including default notices, scheduled auctions or bank repossessions) in the first six months of 2018. This figure is 15% lower than one year ago and down 78% from a peak of 1,654,634 in the first six months of 2010. Interestingly, recent FHA loans (originating in 2014-15) have seen above average increases in foreclosure rates.
“Localized foreclosure flare-ups in the first half of 2018 can no longer be blamed on legacy distress left over from the last housing bubble given that nearly half of all active foreclosures are now tied to loans originated in 2009 or later…Instead these local foreclosure increases are typically the result of more recent distress triggers in those markets.”
“We’re also seeing early evidence of gradually loosening lending standards starting in 2014, specifically for FHA-backed loans….The foreclosure rate on FHA loans originated in 2014 and 2015 has now jumped above the average FHA foreclosure rate for all loan vintages — the only two post-recession vintages with foreclosure rates above that overall average.” Said Daren Blomquist, senior vice president with ATTOM Data Solutions.
Where are America’s fastest growing suburbs? That’s the question Realtor.com recently put pen to paper to in order to determine the hottest bedroom communities all across the country. To get their list, they analyzed over 7k zip codes, focusing on the ones outside a city’s limits and within an hour’s commute in rush hour to the center of the nearest urban area. They calculated home appreciation over the last three years, the increase in the number of home listings, population growth and factored in the share of new construction at the county level.
“These [are places that] have what people want. They aren’t right in the city, and they aren’t too far out, where commute times are long.”
The top 10 fastest growing suburbs are:
- Apex, NC
- Ponte Vedra Beach, FL
- Frisco, TX
- Scottdale, GA
- Lakewood Ranch, FL
- Arabi, LA
- Manor, TX
- Aurora, CO
- Waukee, IA
- Nolensville, TN
More and more older single women are purchasing homes at an increasing clip. This interesting aspect of potential homebuyers was recently reported by the Wall Street Journal and reposted by Realtor.com. Interestingly, the article points out census data showing that, since 1981, single women over 55 have been the fastest-growing demographic of home buyers when compared with several other categories. In 2017, single, older women made up 8.2% of all home buyers, which is nearly double the percentage 20 years ago. Furthermore, these women are buying homes at nearly 2x the rate as their male counterparts.
“There have long been many more older single women than men, reflecting the fact that men remarry at a higher rate after a divorce, as well as the fact that men generally die at younger ages. But the dramatic increase in home purchasing by older women speaks to something else. Many women in this place in life want to own a home of their own, says Jessica Lautz, director of demographics and behavioral insight for the National Association of Realtors.”
Online real estate marketplace Roofstock recently released a list of the 29 real estate submarkets to watch, based on data from their nationwide collection of property managers. Their list includes six major areas’ submarkets and it is probably worth a look – especially if you’re seeking new markets in which to invest. They also say they will continue adding to this list. Indeed….
The key areas identified by Roofstock are:
- Birmingham submarkets
- Memphis submarkets
- Detroit submarkets
- Dallas-Forth Worth metroplex submarkets
- Pittsburgh submarkets
- Phoenix submarkets
The recreational aspects of any given area can be a main driver in determining where to live – and we all know how a nice, clean park adds value to any neighborhood. Recently, the folks over at WalletHub looked at the 100 largest U.S. cities to determine the best and worst cities for recreational activities. They looked at metrics such as cost of living, the quality of parks, the accessibility of entertainment & recreational facilities and of course, the climate. Be sure to click on the interactive map below.
Here are their top 10 cities:
- Orlando, FL
- Las Vegas, NV
- San Diego, CA
- Cincinnati, OH
- Tampa, FL
- Atlanta, GA
- Scottsdale, AZ
- Tuscon, AZ
- Boise, ID
- Philadelphia, PA
According to the latest Yardi Matrix, U.S. multifamily rents rose $12 in June to $1,405 – which they report is an all-time high. Year-over-year in June, rents were up 2.9%, a 20-basis-point increase over the previous month. Yardi says the strong performance is a good sign that demand generally is holding up and that robust supply growth is not an impediment to rent growth in most markets.
“The resilient U.S. multifamily market demonstrated its strength and consistency in the first half of 2018. Despite headwinds presented by consistent supply growth and lack of affordability in many major metros, rents continue to grow steadily. Average U.S. rents increased by $29 in the second quarter, up 2.1% for the quarter, 2.6% for the first half and 2.9% year-over-year.”
Reversing a trend over the past couple years, the sizes of new single-family homes have been increasing since the start of 2018. The NAHB’s Eye on Housing recently dug into data from the U.S. Census Bureau to show that the median single-family square floor area increased to 2,436 square feet and the average (mean) square footage increased to 2,641 square feet. It’s also been reported Americans are physically getting larger/fatter…..coincidence???
What are the 10 calculations every real estate investor ought to know? Today’s infographic from FortuneBuilders gives investors a comprehensive guide to the most commonly used investment property calculations in order to discover the best type of real estate calculator for your business – everything from After Repair Value (ARV) to Gross Yield! Indeed…….Happy Friday!!!
“Investing in a property can be exciting, but taking the time to properly analyze your deal is paramount. In some cases, what may seem like a good deal at first glance may actually cause financial pitfalls long-term.”
According to the latest U-Haul Migration Trends Report, Houston, TX, tops the list for as the number one destination for the 9th consecutive year. In fact, Houston saw a 5% increase since last year in one-way truck rentals. The top-10 cities in their 50-city list are Houston, Chicago, Orlando, Brooklyn, San Antonio, Las Vegas, Austin, Philadelphia;, Charlotte and Columbus. U-Haul bases its rankings on rankings on the total number of arriving one-way U-Haul trucks into a city during the past calendar year. Be sure to check out their entire list of the top-50 cities to see where people are moving.
“We are an international city with a strong housing market,” stated Matt Merrill, U-Haul Company of West Houston president. “The cost of living remains relatively inexpensive. The average paycheck goes further in Houston. Many companies are relocating here and bringing jobs to our communities…”