Author: Brad Beckett

A recent article in the Wall Street Journal (reposted on Realtor.com) says soaring home prices are “roiling appraisals and upending sales.”  They report that more & more properties are being valued below their agreed-upon sales price, causing some deals to collapse.  The reason is because home buyers are frequently paying above asking price in bidding wars, and the subsequent appraisals not keeping up with the rapid sales price increases.  According to CoreLogic, around 13% of appraisals came in below the contract price in August.  CoreLogic says January’s figure of 7.4% was more typical for the housing market. “I don’t remember…

According to recent data from the U.S. Census Bureau’s 2020 Survey of Construction (crunched by the NAHB’s Eye on Housing), says that the number of bedrooms in new single-family homes showed a sharp upswing in the percentage of new homes started with 4 or more bedrooms.   Across the nation, the share of single-family homes started with 4+ bedrooms  increased from 42.6% in 2019 to 45.2% in 2020.  The NAHB says these developments are linked to a combination of factors, such as;  changes in the makeup of homebuyers, the detrimental economic effects of the pandemic, a low-interest rate environment in the…

The Tax Foundation says property taxes are the primary tool for financing local government as well as generating revenue in some states.  In fact, they point out that, in 2019 alone, property taxes generated 31% of total state and local tax collections – more than any other source of tax revenue. Also, in 2019, property taxes accounted for 72% of local tax collections and 27% of overall local government revenue.  So, where do people pay the most in property taxes?  See below… Click here to read the full report at the Tax Foundation.

A recent report by the Wall Street Journal (reposted on Realtor.com) says shortages of key construction materials are forcing some builders & contractors to seek out substitutes and look for alternative suppliers as they attempt to meet the high demand for new housing.   The WSJ says firms are looking for items ranging from from wood paneling to ceiling joists and even pipes.  In addition, plastic roofing membranes that create watertight barriers that protect building interiors are also in short supply.  Indeed… “More than 90% of builders reported shortages of appliances, framing lumber and a type of engineered wood known as…

According to the latest Yardi Matrix Multifamily Report, the average U.S. multifamily rents in September increased $16 to $1,558 (up a record 11.4% year-over-year).  However, Yardi says there are signs of deceleration, as September’s rent growth was the smallest recorded since the surge began in February.  Indeed… “…while the year-over-year numbers keep accelerating, we may be seeing the early stages of moderation. Rents rose…by historical standards but the lowest rate of increase in six months.” Click here to read the full report at Yardimatrix.com.

According to recent data analyzed by RENTCafé, renters are now the majority in 103 suburbs that were previously in homeowner territory 10 years ago, and they say 57 other suburbs are expected to join them in the next five years.  In addition, they report that recent Census data shows that nearly two out of every five people in suburbia are renters, translating to an average of 39% in the largest metros.  Indeed… The very definition of suburban living has been rewritten throughout the last decade as suburbs in the nation’s 50 largest metros gained 4.7 million people since 2010 —…

On a recent episode of Real Estate News for Investors, Kathy Fettke takes a look at inflation frustration for the Fed, a mortgage rate surprise, and a new checklist for today’s homebuyers. Click here to listen on Spotify.com.

The National Multifamily Housing Council (NMHC) says that 78.4% of apartment households made a full or partial rent payment by October 6th, 2021.  This figure is 1% lower than those who paid rent through September 6, 2020.  The data comes from the NMHC’s Rent Payment Tracker which uses data from 11.8 million professionally managed apartment units across the country – representing a wide variety of market-rate rental properties that can vary by size, type and average rental price. Click here to read more at the NMHC.

During 2020, renter households (in professionally managed properties) spent an average of 27% of their income on rent.  The data, from the NAA, also points out that only six states had rent-to-income percentages higher than the oft cited 30% threshold.  Indeed….  Stay safe and have a Happy Friday! Hat tip to the National Apartment Association. Click here to download a PDF of this chart (good for printing).

Rental information site Zumper recently released their latest monthly National Rent Report showing that their median national rent for 1-bedroom apartments in September, 2021 was $1,352 (up 10.7% since March, 2020) and the median two-bedroom rent was $1,663 (up 13.1% since March, 2020).  Be sure to check out their list of the top 100 metro areas. “There are a few things driving the growth. First, the hot housing market that’s pushing rent up in Phoenix is doing the same in similar markets where single-family home values have risen rapidly in the aftermath of the pandemic. As prices soar and competition…