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”
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.
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.”
In a recent episode of Real Estate News for Investors, Kathy Fettke discusses how Landlords in Portland (Oregon) and Seattle are being “choked” by new & proposed rental laws. Portland landlords are gearing up for a fight over legislation that would limit their use of an applicant’s criminal history as well as a proposal to reduce income and security deposit requirements. In Seattle, the city is facing a lawsuit over a more stringent version of those rules that were passed last year, and went into effect in February. The bottom-line here is that what starts on the coasts could spread inward…unless it’s stopped.
Kathy Fettke is the Co-Founder and Co-CEO of Real Wealth Network and is passionate about researching and then sharing the most important information about real estate, market cycles and the economy. She’s author of the #1 best-seller, Retire Rich with Rentals, Kathy is a frequent guest expert on such media as CNN, CNBC, Fox News, NPR and CBS. Her podcasts are a good one to have on your playlist.
Implementation of Fair Housing Act's Disparate Impact Standard
After years of urging, the Department of Housing and Urban Development
(HUD) is now considering changes to its "disparate impact" fair housing
rule. For rental property owners and managers, disparate impact means
that seemingly neutral and common business practices, such as criminal
background screening, credit screening and Section 8 voucher policies,
among others, could trigger discrimination claims despite there being no
intent to discriminate on the part of the owner or manager. HUD is
looking for public input on the rule and we need your help in
making the voice of the rental housing industry heard loud and clear.
IN ADDITION, If you have had a personal experience with the disparate impact rule or its effects on one of your business' policies or practices, we want to hear from you directly. Please contact [email protected]
Is that rehab project worth it? That’s the proverbial million-dollar question. Today’s infographic from leading self-directed IRA custodian Equity Trust Company takes a look at several rehab projects and how much ROI they bring back (per Remodeling Magazine’s 2018 Cost vs value Report). As we’ve seen before, adding a deck and a new front door tops the list….Happy Friday!
According to recent data analyzed by the NAHB’s Eye on Housing, the number of single-family homes built-for-rent has been increasing over the last four quarters. Using data from the Census Bureau’s Quarterly Starts and Completions by Purpose and Design, they report that construction starts of single-family homes for rent totaled 42k homes, compared to 29k in the prior four quarters. In Q2 2018, there were 13k single-family built-for-rent starts. Interestingly, this class of single-family construction excludes homes that are sold to another party for rental purposes and only includes homes built and held for rental purposes.
According to New York Fed’s most recent Quarterly Report on Household Debt, Americans’ total household debt has risen for the past 16 quarters and the total is now $618 billion higher than the previous peak of $12.68 trillion, in Q3 of 2008. In addition, overall household debt is now 19.2% above the post-financial-crisis low reached during Q2 of 2013. The report is based on data from the New York Fed’s Consumer Credit Panel, a nationally representative sample of individual- and household-level debt and credit records drawn from anonymized Equifax credit data. The New York Fed also issued an accompanying blog post that examines the impact of the removal of third-party collection accounts from credit reports following the implementation of the National Consumer Assistance Plan.
- Mortgage balances 9the largest component of household debt) rose by $60 billion during the second quarter, to $9.00 trillion
- Balances on home equity lines of credit (HELOC) continued their downward trend, declining by $4 billion, to $432 billion
- Auto loan balances continued their six-year upward trend, increasing by $9 billion in the quarter, to $1.24 trillion
- Credit card balances rose by $14 billion, or 1.7%, after a seasonal decline in the first quarter
“Aggregate household debt grew for the 16th consecutive quarter in the second quarter of 2018,” said Wilbert van der Klaauw, senior vice president at the New York Fed, “While overall delinquency rates have remained stable at relatively low levels, transition rates into delinquency have fallen noticeably for student debt over the past year, reflecting an improved labor market and increased participation in various income-driven repayment plans.”