Recent data from a NAHB & NMHC report says regulation imposed by all levels of government accounts for an average of 40.6% of multifamily development costs. The data, based on a survey of developers across the nation, also examined regulations and other factors that can impact whether development even occurs. They say that identifying duplicative & unnecessary regulatory costs is a critical factor as they work to address the critical shortage of affordable housing facing this nation. Indeed… Stay safe and have a Happy Friday!! “Three quarters (74.5%) of respondents said they encountered ‘Not In My Backyard’ (NIMBY) opposition to…
Author: Brad Beckett
Brad Beckett
Director of Education & Outreach, National Real Estate Investors Association
Local Market Monitor, a National REIA preferred vendor, recently released their monthly National Economic Outlook where they share their thoughts on developments taking place in the U.S. economy. National Economic Outlook By Ingo Winzer July, 2022 The news that inflation is running at 8 percent isn’t a surprise but the political pressure for higher interest rates in response is certain to accelerate the end of the home price boom. That by itself isn’t so bad, it had to happen anyway, but the fragile nature of the economic recovery to this point now makes a new slowdown almost inevitable, with the…
On a recent episode of the Rental Property Owner & Real Estate Investor Podcast, Brian Hamrick talked with Jon Frantz, an expert in business finance and development, capital raising, property management and operations, who is also transforming a neighborhood with several businesses. Jon shares his early sales experience with Cutco Knives and the importance of that training. He talks about his first house-hacked 3-unit, and how he had to sell his car in order to buy it. Brian also discusses the differences between investing in real estate and starting a business, the importance of partnership, and the biggest mistakes he…
Keeping Current Matters says that rising inflation puts a pinch on the wallet and makes you reevaluate any big purchases you may have planned. They point out that potential homebuyers are probably wondering if they should continue down that path or if it makes more sense to wait. While the answer depends on the particular situation, they have illustrated how homeownership can actually combat the rising costs of inflation. “Buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost. When you have a fixed-rate mortgage on your home, you lock in your monthly payment…
Black Knight’s Mortgage Monitor Report for May, 2022 says home prices rose 1.5% from April, which they say is nearly twice the historical average for the month of May. However, they say with 30-year mortgage rates hovering close to 6% and home prices up nearly 11% since the start of 2022, home affordability is at its worst point since the mid-1980s. Black Knight says this affordability crisis is due in equal part to rising interest rates and soaring home values which are being driven by historically low inventory. Their data show that the average home price is now more than…
The old axiom about the two certainties in life are death & taxes remains true. A recent report from the Tax Foundation says in 2022, there are 12 states (and DC) with an inheritance or estate tax – with one state, Maryland, having both. Hawaii and Washington State have the highest estate tax top rates in the nation at 20%. Massachusetts and Oregon have the lowest exemption levels at $1 million, with Connecticut having the highest exemption level at $9.1 million. See the chart below to compare the various states’ estate tax and state inheritance tax rates. “Estate taxes are…
The National Multifamily Housing Council says 97% of apartment developers report experiencing construction delays. Breaking that down, they say that of those experiencing overall delays, 83% reported delays in permitting and 93% reported delays in starts. In addition, they found that 87.5% of developers avoid working in jurisdictions with rent control and 47.9% said they avoid building in a jurisdiction with inclusionary zoning requirements. And just over half reported an increase in labor costs as well. “Rising costs, construction delays and labor shortages—never mind more regulatory barriers and rampant NIMBYism—are making it more and more difficult to build the housing…
According to the latest CoreLogic Home Price Insights (HPI) report, home prices nationwide, including distressed sales, increased 20.2% year-over-year in May. On a month-over-month basis, home prices increased by 1.8% in May compared with April. CoreLogic’s HPI Forecast predicts home prices will increase on a year-over-year basis by 5% from May 2022 to May 2023. “Slowing home price growth reflects the dampening consequence of higher mortgage rates on housing demand, which was the intention. With monthly mortgage expenses up about 50% from only a few months ago, fewer buyers are now competing for continually limited inventory. And while annual home…
Today’s graphic from the American Petroleum Institute reminds us that fuel prices are determined by the market forces of supply & demand, not individual companies, and the price of crude oil is the primary determinant of the price we pay at the pump. Indeed…. Stay safe and have a Happy Friday!!! “Oil prices are at a seven-year high amid a persistent global supply crunch, workforce constraints, increasing geopolitical instability in Eastern Europe, the economic rebound following the initial stages of the pandemic, and policy uncertainty from Washington.” Hat tip to the American Petroleum Institute.
The U.S. Bureau of Economic Analysis is reporting that America’s real gross domestic product (GDP) decreased at an annual rate of 1.6% in Q1 2022. Their data show that GDP decreased in 46 states and the District of Columbia. “Mining, quarrying, and oil and gas extraction contributed to decreases in 49 states. This industry was the leading contributor to the decreases in 10 states, including Wyoming, Alaska, North Dakota, West Virginia, and New Mexico—the 5 states with the largest decreases in real GDP.” Click here to read the full report at the Bureau of Economic Analysis.
