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The 5 most important things I’ve learned during my decade in real estate

Inmannews - Wed, 07/11/2018 - 3:00am
Launching a housing startup in 2008, in the shadow of the housing crisis, wasn’t for the faint of heart. Just ask Rob Chrane of Down Payment Resource and Greg Robertson of Cloud CMA.
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What happens if real estate is forced to pay minimum wage?

Inmannews - Wed, 07/11/2018 - 3:00am
Independent contractor (IC) status in real estate has been under attack for over two decades. What steps would you have to take if minimum wage requirements came to your state or if your state no longer allowed real estate agents to act as ICs?
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6 tips for snagging buyers with your Facebook ads

Inmannews - Wed, 07/11/2018 - 3:00am
Strong homebuyer demand has homes flying off the market faster than ever. In fact, 44 percent sell in less than a month. To catch buyers' attention and make sales in this fast-paced market, you have to make sure your Facebook ads speak to exactly what the buyer is looking for.
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How to create a company culture that doesn’t allow sexual harassment

Inmannews - Wed, 07/11/2018 - 2:30am
There are a variety of ways in which the norms of real estate and the types of people who are attracted to the industry combine to create problematic workplace behavior that can lead to sexual harassment.
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Livestream: Inman Connect San Francisco

Inmannews - Tue, 07/10/2018 - 7:20pm
Connect. Anywhere. Livestream. Watch the official livestream, an exclusive Inman Select member benefit! See all four days of live sessions — 112 speakers tackling real estate’s top problems and setting a vision for the future of our industry. Tune-in: Tuesday thru Friday, July 17-20th. Join the Connect Family and don’t miss a single session! Tuesday […]
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Fighting back: Forget the innovation buzz, and focus on the consumer

Inmannews - Tue, 07/10/2018 - 5:00pm
How are real estate broker-owners responding, adapting or changing? Here's what Daryl Rogers, CEO and owner of Better Homes and Gardens Real Estate Reliance Partners, is doing.
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Edina Realty deploys virtual assistant ‘Emma Marketing’ for listing content

Inmannews - Tue, 07/10/2018 - 4:31pm
Edina Realty, a large brokerage service in Minnesota and Wisconsin, just announced that it is launching a virtual assistant for its agents.
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Don’t believe your own hype: How to avoid founder/CEO pitfalls

Inmannews - Tue, 07/10/2018 - 2:13pm
Every founder who was able to achieve success will admit to the humbling lessons they had to learn to take their company from an idea to an icon, including Pete Flint, founder and former CEO of Trulia and a managing partner at NFX. Here's what he's learned.
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How the Trump admin’s tariffs are affecting US homebuyers

Inmannews - Tue, 07/10/2018 - 1:44pm
The Trump administrations’ trade policy is putting greater strains on an already inventory-starved real estate market and driving up home prices, according to a trio of real estate economists.
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The essential guide to social media in real estate

Inmannews - Tue, 07/10/2018 - 11:00am
When it comes to using social media as a business tool, real estate professionals have an array of strategies, tactics and platforms at their fingertips.
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Dotloop GM Austin Allison to step down at the end of 2018

Inmannews - Tue, 07/10/2018 - 10:32am
Austin Allison, the CEO and co-founder of the cloud-based real estate transaction management system dotloop is stepping down at the end of the year, the executive announced Tuesday, in a blogpost.
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The Dream on Hold: 3.6 Million Fewer Families with Kids Own a Home Compared to 10 Years Prior

American Apartment Owners Association - Tue, 07/10/2018 - 9:05am

The big fallout during the housing crisis followed by air-tight lending rules, an alarming shortage of entry-level homes, and skyrocketing home prices are the main items on a long list of reasons fewer and fewer young families have a home to their name. The number of families with minor children who own their home has decreased by almost 3.6 million in one decade (2006-2016), while the number of families with children living in rentals has increased by 1.9 million over the same period of time, according to U.S. Census Bureau estimates.

As of 2016 (the most current Census estimates), 14.3 million households with minor children rent in the U.S. (up from 12.4 million in 2006), representing 33% of all renter households. By comparison, there are 22.1 million families with minor children that own their home (down from 25.7 million in 2006), representing 29% of owner households.

In the big scheme of things, 10 years is just a blip on the radar. These statistics show the tremendous effects of this relatively short but eventful period of time on American families. These 3.6 million fewer owner households are families who lost their homes in foreclosures or otherwise, they are young families who are unable to overcome the current financial barriers to become homeowners, and they are also homeowners whose children grew up and no longer fall into this category. Additionally, there are other contributing factors. The birthrate in the U.S. is declining, people are having children later in life, and the cost of raising a child has soared.

In the 10-year period between 2006 and 2016, renters with children in the U.S. have increased by 16%, while homeownership has decreased by 14% for the same demographic. The rise of renting and the decline of ownership among families with children is not only confirmed in all 30 largest U.S. metropolitan areas, but it’s also very prominent in many of them.

Most large metros see a surge in renting families with children and a drop in homeowner families

Using U.S. Census data, we analyzed the changes that occurred between 2006 and 2016 in the number of renter and owner households with minor children in each of the nation’s 30 largest metropolitan areas. This approach provides a more complete picture of the type of housing in which American families with kids reside, regardless of whether they choose to live in the city or in the suburbs.

One of the things that stood out in our research was the fact that the highest jumps in renting families happened in Southern metropolitan areas: Charlotte, Atlanta, Phoenix, Houston, and Miami. At the top of the list is the Greater Charlotte Area in North Carolina, with a 73% surge in families with kids who rent their home, and an increase of 21% in homeowner families with kids. Second is Atlanta metro, which saw a 51% jump in the number of renter families and an 11% drop in homeowner families. The third on the list is Phoenix metro, where renting families increased by 42% while those who own their home decreased by 12%.

On the flip side, the smallest changes in renter families were in Pittsburgh metro, where the number of renter-occupied households with children stagnated over the 10-year period, while the number of owner families went down by 13%. In Los Angeles-Long Beach-Anaheim metro there was a modest 5% rise in renter families and a big 22% dip in owner families. In New York metro, the number of renter families increased by 8% and the number of owner families decreased by 13%.

The metro areas of Detroit, Riverside, Miami, Las Vegas, and Los Angeles lost the most homeowner families with children, registering decreases of more than 20%. Only 4 metro areas saw increases in the number of homeowners with children: Charlotte 21%, Houston 5%, San Antonio 3%, and Dallas-Fort Worth 1%, but still lower than the increases in their renter counterparts.

In terms of numerical changes, Houston metro saw the largest increase in renter families with children among the 30 largest metros, 107,000 households, while Los Angeles metro saw the largest decrease in homeowner families with children, 188,000 households. For specific numerical and percentage changes, look up metro areas in the table below:

Changes in the Number of Households with Minor Children and Real Estate Prices in the 30 Largest U.S. MetrosShow 102550100 entriesSearch:Metro/MarketNet change in owners with childrenNet change in renters with children% change in owners with children% change in renters with children% change in single-family home prices (5-year)% change in rent prices (5-year)Charlotte33,00048,00021%73%43%30%Atlanta-54,00098,000-11%51%57%40%Phoenix-40,00070,000-12%42%45%39%Houston28,000107,0005%41%30%25%Minneapolis-29,00033,000-8%40%48%14%Miami-97,00088,000-23%40%60%33%Washington, D.C.-7,00072,000-1%38%11%11%Orlando-21,00034,000-12%36%62%37%Dallas-Fort Worth4,000101,0001%36%45%31%Tampa-38,00033,000-18%33%60%34%Showing 1 to 10 of 31 entriesPreviousNext

*10-Year Changes in Owner vs Renter Households with Minor Children 2006-2016 (U.S. Census)
*5-Year Changes in Average Rent Prices April 2013 – April 2018 (Yardi Matrix)
*5-Year Changes in Median Single-Family Home Sale Price April 2013 – April 2018 (Redfin)

Single-family home prices increased 75% faster than rents in the last 5 years

At the confluence of forces that prevent families from buying homes and compel them to rent, the cost of housing is probably the strongest force. Which is why next we looked at how much the price of single-family homes for sale and the price of rent have changed in the last few years. According to data provided by Redfin, a national real estate brokerage, the national median price of a single-family home has increased by 35% in the past 5 years, 75% faster than rents. During the exact same period of time, the national average rent has increased by 20%, according to data provided by our sister division Yardi Matrix, an apartment intelligence provider.

As evidenced in the last 2 columns in the table above, in 29 of the 30 largest metros the prices of single-family homes have outpaced rents between 2013 and 2018. The widest difference in price changes buy vs rent is the Detroit-Warren-Dearborn area, where single-family home prices went up 155% and rents only 12%. In the notoriously expensive San Francisco-Oakland-Hayward area rents went up by 39% in 5 years, while single-family home prices shot up twice as fast, by 80%, according to Redfin data. Housing in Seattle-Tacoma-Bellevue followed a similar path, 79% up for single-family home prices and 45% up for rents. Many other markets saw a spectacular rebound in prices for single-family houses in the past 5 years: Las Vegas 74%, Portland 62%, Orlando 62%, Denver 61%, Tampa 60%, and Miami 60%, making it extremely difficult for families with children to keep up with this pace.

With fewer families with children buying homes, demand for family-sized rental housing is high

As the price to purchase a single-family home is going up fast, and new home construction is plugging along slowly, families with children are looking elsewhere for housing options. One increasingly popular option is renting a house. Single-family rentals are in high demand among various demographics, including families with kids, and they have increased in number by 3.6 million units in one decade. The multifamily industry is also doing a pretty good job of keeping up with the increased demand for larger-sized apartments. The number of family-sized apartments (with 2 bedrooms or more) increased by more 1.1 million new units since 2006 in large-scale buildings (50 units or more) alone. Add to these numbers rental apartments located in smaller-sized buildings, and you have what looks like a generous stock of rental housing available for families.

Yardi Matrix apartment data shows that nationally more than half (52%) of the apartments built between 2006 and 2016 are family-sized (2 bedrooms or larger). 41% are 2-bedroom apartments, 9% are 3-bedroom apartments and 2% have 4 bedrooms or more. Metropolitan Miami, Phoenix, Riverside, Charlotte, Orlando, and San Diego — which have some of the highest net gains in renter households with kids in the country — are building over 54% of the new apartments as 2-bedroom units or larger. Generally, the metro areas that saw the largest numerical increases in renter families with children have built a fair share of family-sized apartments.

Apartment construction by number of bedrooms in the 30 largest metros (2006-2016)Show 102550100 entriesSearch:Metro/MarketStudios1 bedroom2 bedrooms3 bedrooms4 bedroomsFamily-sized apts. (2,3,4 beds)Riverside0%36%48%14%2%64%Detroit1%35%43%16%5%64%Orlando2%35%46%14%4%63%Tampa2%36%46%13%3%62%Miami1%37%45%15%1%62%Cincinnati1%39%45%9%6%60%San Diego8%33%43%14%2%59%Las Vegas2%39%50%9%0%59%Phoenix3%42%44%9%2%55%Sacramento6%39%38%14%3%55%Showing 1 to 10 of 31 entriesPreviousNext

 

Methodology

Demographics data and terminology source: U.S. Census Bureau, American Community Survey – 2006 and 2016 1-year estimates. The changes in the number of households represent estimates of numerical and percentage increases or decreases from 2006 to 2016. Numbers may be rounded to the nearest hundred or the nearest thousand. 

Single-family home sale price source: Redfin, a national real estate brokerage. Home price data represents the percentage increase or decrease in the median single-family home sale price from April 2013 to April 2018. Redfin’s defined metro areas may not be geographically identical to U.S. Census metropolitan areas (MSA –  metropolitan statistical area are defined as per Census Bureau’s MAF/TIGER database). 

Rent price source: Yardi Matrix, a Yardi apartment information service.  Rent data represents the percentage increase or decrease in the average rent price in apartment buildings of 50 or more rental units from April 2013 to April 2018. Yardi Matrix markets may not be geographically identical to U.S. Census metropolitan areas (MSA –  metropolitan statistical area are defined as per Census Bureau’s MAF/TIGER database). 

A rental or rental unit is defined as a renter-occupied housing unit. Renter households or families with minor children are renter-occupied housing units with related children of the householder under the age of 18. Owner households or families with minor children are owner-occupied housing units with related children of the householder under 18. 

 

Source: rentcafe.com

The post The Dream on Hold: 3.6 Million Fewer Families with Kids Own a Home Compared to 10 Years Prior appeared first on AAOA.

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Alabama landlord sued for allegedly demanding sex from tenants

Inmannews - Tue, 07/10/2018 - 8:13am
An northern Alabama landlord is facing a lawsuit from the Department of Justice (DOJ) over allegations that he demanded sexual acts from female tenants in exchange for rent or to prevent eviction.
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Delinquencies are down, but hurricane-stricken areas are still struggling

Inmannews - Tue, 07/10/2018 - 7:11am
Good news for homeowners with mortgages: the number of people who are falling delinquent on their mortgage payments keeps getting lower, according to a new report published today by CoreLogic.
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Why you should never, ever let buyers take possession before closing

Inmannews - Tue, 07/10/2018 - 6:00am
Your buyers are about to close on a vacant house and must be out of their current property no later than the end of the month. There’s a delay that will push closing back to the third of the next month. What harm could come of letting the buyers take possession a few days early?
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Is the recent rise in homeownership a good thing?

Inmannews - Tue, 07/10/2018 - 3:00am
According to the U.S. Census, the homeownership rate peaked in Q1 of 2005 at 69.1 percent, then declined to a low of 62.9 percent in Q2 of 2016. It has been creeping up since then, reaching 64.2 percent in Q1 of this year.
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Why a top real estate venture firm invested in $1 billion scooter company Lime

Inmannews - Tue, 07/10/2018 - 3:00am
Some see electric scooters as a potential boon for the real estate industry — rental programs could help improve mobility and allow people...
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HomePrezzo entering US market with new listing and CMA video features

Inmannews - Tue, 07/10/2018 - 2:45am
Australia-based HomePrezzo has updated its video marketing tools with automated listing videos, templates and CRM integrations. The company will announce services in the U.S. at Inman Connect San Francisco 2018.
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California has the most ‘best’ agents according to Real Trends

Inmannews - Tue, 07/10/2018 - 2:30am
California has the highest number of the nation’s “best” real estate professionals, according to Real Trends' sixth annual ranking.
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5 tips for crafting quality real estate content (without writing it yourself)

Inmannews - Tue, 07/10/2018 - 2:00am
How are you supposed to find time each week to publish top-quality blog content? Here's a little secret: You don’t have to create all your blog content yourself.
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