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🏡💡The evolving landscape of housing: innovations in flexible renting and co-ownership will be key to addressing affordability and building wealth - and catering to the rising demand from "Forever Renters"🌐 ⚡🚈"Change happens gradually, then suddenly". Insightful housing and renting trends in "The Rise of the Forever Renters" yesterday The Wall Street Journal 🌎 🛤️Americans who would traditionally be homeowners have become long-term renters, including some with no plans to ever buy a home. Renters are changing savings patterns, sparking new developments, and inspiring businesses. 📢🔑 The transformation of buildings into luxury apartments reflects a nationwide trend, with higher-income Americans opting for long-term rentals over traditional homeownership. As the demand for rental luxury grows, it sparks new developments and businesses catering to renters' evolving needs. ⏯️🔑Purpose-built rental communities, build-to-rent subdivisions, are on the rise, offering lifestyle choices without the burden of homeownership. The influx of higher-income renters, evident in the record number of millionaires renting homes, has led to a decline in lower-priced rental options. 🏦 🔑Financial planners suggest that forever renters need to adjust their investment strategies, exploring real estate investment trusts and other tradable securities for a diverse portfolio. 🐂🔑There are hundreds of new rental developments rising up to serve a wave of higher-income and older renters flooding into America’s towns and cities searching for luxury without commitment, retirement without feeling old and tidy lawns without owning lawn mowers. 🪙 🔑For those that aren’t buying homes out of choice, financial planners are preaching that they need to adjust. A simple portfolio that mixes stocks and bonds isn’t going to cut it for the forever renter. 🐂🏦 🔑These renters need to find other ways to invest in real estate, be it real-estate investment trusts or other tradable securities, to have the diversity needed for a healthy portfolio 💯🌄 In this dynamic housing landscape, innovative solutions and co-ownership models will play a crucial role in ensuring housing affordability and fostering wealth-building opportunities for all. 🏠💡 #HousingInnovation #RentingTrends #WealthBuilding #CoVista

🚡 Momentum continues for Texas and Dallas becoming powerhouses of the global economy, and a formidable finance capital in the US. On the heels of SpaceX and X's announced move to Texas, a recent article from leaders Fortress Investment Group highlight their involvement in the founding of the Texas Stock Exchange (TXSE) along with several other founding members including BlackRock Citadel. 🚡 🏦 TXSE aims to transform Dallas into the new capital of capital. This innovative exchange promises to deliver commercial benefits and a competitive alternative to NYSE and NASDAQ, prioritizing retail investors and lowering fees for all. 🏦 🐂 Dallas is emerging as a prime investment hub, and here’s why: 🐂 💡 Business-Friendly Environment: 💡 Texas offers a supportive climate for businesses, free from onerous taxes and regulatory hurdles, making it a top destination for corporate relocations. 💵 Economic Strength: 💵 Texas boasts the world’s eighth-largest economy and is the number one job creator in the U.S. Over the past five years, more corporate headquarters have relocated here than any other state. 🐴 Financial Sector Growth: 🐴 Dallas has surpassed New York in financial and banking sector employment, with major firms like JPMorganChase, Charles Schwab, Goldman Sachs, and Wells Fargo expanding their presence. 👑 Fortress Investment Group’s Commitment: 👑 Fortress has chosen Dallas as its co-headquarters, recognizing the city’s unmatched combination of professional opportunities and quality of life. With significant local investments, including in the Texas Stock Exchange, Dallas is poised to become a dominant financial center. 🚀 Innovative Projects: 🚀 Companies like MP Materials and Mammoth Freighters have chosen Dallas for their groundbreaking ventures, further establishing the city as a key player in the global economy. 🌎 Dallas, with its business-friendly environment and booming economy, is poised to become a dominant financial center. 🌎 https://lnkd.in/eWnksmb7 #dallaseconomicstrength #texasfinancialhub

💡 Recently released Harvard University "State of the Nation's Housing 2024" report highlights the pressing challenges and opportunities faced by homeowners and renters across the U.S. Harvard Joint Center for Housing Studies (June 2024) 💡 🔑 The study highlights several key points: 🔑 📈 Rising Costs: Home prices have surged to new highs, with the median sales price now about five times the median household income. Meanwhile, rental costs have also seen significant increases, creating unprecedented affordability issues. 📈 👫 Homeownership Challenges: Elevated interest rates have pushed mortgage costs to 30-year highs, making homeownership increasingly difficult, particularly for first-time buyers and households of color. 👫 🏘 Cost Burdens: Both renter and homeowner cost burdens have hit record highs, with millions of households spending over 30% of their income on housing. This strain is exacerbated by rising insurance premiums and property taxes. 🏘 🏢 New Multifamily Units: A surge in multifamily completions has slightly cooled the rental market, but operating costs for property owners have risen, impacting profitability and future project financing. 🏢 🏔 For-Sale Inventory Shortages: The shortage of existing homes for sale has driven more buyers toward new construction. However, the development of affordable, entry-level housing remains constrained by regulatory and economic barriers. 🏔 🌋 Homelessness and Climate Change: The number of people experiencing homelessness has reached a record high, and climate change poses increasing risks to the housing stock, with a growing number of properties located in disaster-prone areas. 🌋 ⚡ Compelling Investment Opportunity in Housing, Single-Family Rentals (SFR) ⚡ 🦅 🚵♂️ Hawkhill Homes Innovative housing models address homeownership and affordability challenges and provide flexible living solutions through CoVista.co (coming soon) 🦅 🚵♂️ 🔦 In this challenging housing landscape, Single-Family Rentals (SFR) present a promising investment opportunity. With homeownership out of reach for many, SFRs cater to the increasing demand for quality rental homes, providing a stable income stream and potential for appreciation. 🔦 🚦 Additionally, SFR investments contribute to alleviating the housing crisis by offering more families access to comfortable and affordable living spaces. Addressing the nation’s housing issues will require a coordinated effort from policymakers, the private sector, and nonprofits. 🚦 #stateofhousing #innovationaddressingaffordability #CoVista #coownership #comingsoon

🐂 Morgan Stanley Head of Global Listed Real Assets, Laurel Durkey recently discussed the current housing market affordability crisis and how rental housing is positioned to benefit from the current market dynamics. ⚡Strategic Rationale for Real Assets: Diversification, Inflation Protection, Strong History of Total Return, Holds Purchasing Power (relative to dollar). 🚞 🏘 Single-family rental market continues to benefit in this environment. 🏘 🚅 Affordability Advantage: Affordability is exacerbated by housing shortages. With the median home sales price skyrocketing, many aspiring homeowners are turning to renting instead. Single-family rentals offer an attractive alternative, providing a more affordable housing option compared to purchasing a home. 🌩 Supply shortage: in the next 10 years, 2MM incremental homes needed annually 🌊 Rental Demand Surge: The affordability crisis has fueled a surge in rental demand, creating a robust market for single-family properties. As more individuals and families opt for renting, landlords stand to benefit from steady, reliable income streams. 🏦 Institutional Innovation: Companies like AMH are revolutionizing the single-family rental landscape. By developing tailored solutions for renters and offering a diverse portfolio of properties, they're meeting the evolving needs of the market. 🌎 Long-Term Growth Potential: The shift towards renting is not just a short-term trend; it's a fundamental change in housing dynamics. Single-family rentals offer investors a long-term growth trajectory, supported by demographic shifts and changing lifestyle preferences. 👨🏫 Differentiated Operating Platforms: Institutional players like AMH boast sophisticated operating platforms that optimize property management and tenant relations. This operational excellence translates into higher occupancy rates, lower turnover, and ultimately, stronger financial performance. 🏔 Market Resilience: Even amidst economic uncertainties, the rental market has demonstrated remarkable resilience. Single-family homes have proven to be a stable and recession-resistant asset class, making them an attractive option for investors seeking to diversify their portfolios. 💯 In summary, the single-family homes investment thesis is grounded in the intersection of affordability, rental demand, and institutional innovation with secular demand drivers. ☀ Other Top REIT Secular Trends: Affordable Housing, AI / Data Center, Senior Housing ☀ #sfr #seculardemand #housingaffordability https://lnkd.in/e54c6apC

👨🚀 Momentum for innovative homeownership options continues as young buyers seek alternative options for living in the face of record low affordability and flexible living trends. ⚡ A significant 35% of overall people surveyed and 59% of Gen Z respondents would split a home purchase with someone other than a partner per Qualtrics & Credit Karma 👨🚀 🔑 Exploring the Benefits of Co-Ownership: A Modern Solution for Today's Real Estate Challenges 🏡 As the real estate market becomes increasingly volatile and pricey, many younger generations are turning to innovative solutions like co-ownership. This trend allows individuals to buy a fraction of a property, making homeownership more accessible and affordable. 🌍 Sharing Economy in Real Estate 🌍 "Co-ownership is effectively a sharing economy solution to a housing affordability problem," says Austin Allison, CEO of Pacaso. This approach mirrors the broader sharing economy trend, providing a sustainable structure that resonates with younger generations. 📊 Market Growth 📊 Since its founding in 2020, Pacaso has sold around $1 billion in co-ownership units across 40 markets, primarily in the U.S. This highlights the growing popularity and viability of co-ownership in making homeownership more attainable. Zillow’s 2023 housing trends report found 1 in 7 respondents co-bought a property with a friend and 12% with a relative last year. Backing up the data, Opendoor’s first-time homebuyer report released in March found that more than 3 in 4 first-time buyers bought with their parents, siblings, friends and even colleagues. 💡 Benefits for Buyers💡 Affordability: Co-ownership lowers the financial barrier to entry, allowing more people to own a part of a home without the burden of full ownership costs. Resource Pooling: By sharing the costs of purchase, maintenance, and repairs, co-owners can manage expenses more efficiently. Flexibility: Pacaso's model offers an easy exit strategy, enabling co-owners to sell their share seamlessly. 📉 Challenges to Consider 📉 While co-ownership offers numerous benefits, it's essential to be aware of potential complications such as coordinating with multiple owners and managing shared responsibilities. Pacaso and CoVista.co aims to streamline these processes, making co-ownership a hassle-free experience. 🔮 Future of Co-Ownership🔮 With housing affordability becoming an increasing concern, co-ownership presents a practical solution. It enables people to pool resources, contributes positively to communities, and aligns with sustainable living practices. #HousingFuture 🌄 #CoVista🌄 #CoOwnership #nextgensinglefamilyliving https://lnkd.in/e57Vbdvv

🌴 🏘 Despite recent headlines, increasing optimism within SFR and tech innovation was contagious in Miami this week at IMN. Top themes including: the readiness to deploy committed capital; address housing issues related to affordability. 🐂 🏘Now over a decade, IMN held its east coast SFR conference in Miami. The ecosystem of investors, operators and lenders continues to grow with increasingly optimism for the future. Information Management Network (IMN) 🌴 🏘 👨🚀 🌕 Major Themes Hawkhill Homes 💡🚀 🤖 AI SFR Advancements: seeing through the hype, there is extremely high value in next gen vertical SFR platforms ready to capitalize on real world AI applications in acquisition-enabled sourcing, valuation, transaction pilots, data-driven decision-making in portfolio management, and customer success. 🤖This will enable next gen SFR platforms to outperform legacy SFR and tech platforms dealing with distracted priorities related to cost synergy and rationalization efforts and on-going sales processes. 🏡 Housing Innovation: co-ownership + fractional ownership, and co-living models addressing major issues in housing affordability, offering flexible solutions for renters, owners, and investors alike continue to raise capital and thrive. 🦅 🌄New living models addressing major problems facing SFR and housing: 1) Wealth Building and 2) Path to Ownership 🦅 🌄 Hawkhill Homes🏔 CoVista.co 🏔 (🌟 "coming soon" 🌟 ) 🏗 Reinforcing Major Themes: 🏔 ⏩ Continued Positive Long-Term Fundamentals - long-term demand for housing remains strong in light of a supply shortage of 4-6 million homes 🚠 📈 Consolidation of players is necessary, creating opportunities for agile platforms and reinforcing the need for efficient operations and experienced operators. Recent M&A including the likes of Roofstock and Mynd, Lessen and SMS Assist are contributing to a stronger, more nimble ecosystem; while larger consolidation of public and private SFR REIT players continues. Tricon Residential, Invitation Homes 🏢 🌎SFR REIT Expansion: Larger SFR REITs are expanding into SFR services, leveraging their scale to manage bigger institutional clients like Nuveen and Starwood. Invitation Homes 💰 🏦Lender Environment: The lending environment is becoming steadier with compression of spreads, creating a more stable financial landscape 🌐 Innovative New Entrants Spur Adoption: new players are innovating around AI enabled services including next gen SFR investing and operating platforms, fractional ownership, property operations on-boarding and efficiency, lending, and deal sourcing, driving the next wave of growth 🌒 "The night is darkest before the dawn" 🌒 ⚡ While the on-going shake-out persists in SFR - stronger, well-run and experienced entrants continue to build and are poised for growth in the future. ⚡ We are more than excited. 🏔 🦅 Hawkhill Homes 🦅 🏔 #SFR #IMN #futureofhousing

Here’s what good #realestate investors know: now is the time to lean in on deploying capital.

🏡💭Exploring major trends in new home construction embracing the "Forever Renter" phenomenon 💭🏡 🌟In the ever-evolving landscape of housing, a significant paradigm shift is underway, reshaping the concept of homeownership and introducing the notion of the "Forever Renter." 🌟 📊✨ Thoughtful reflections on the surge in single-family homes designed for renting and its implications. The landscape of housing is undergoing a profound transformation 📊✨ 1️⃣ Financial Realities: With mortgage rates soaring and home prices escalating, renting single-family homes offers a pragmatic solution. In 2023 alone, builders completed 27,495 single-family rental homes in developments of at least 50 houses, a significant surge from pre-pandemic levels? 📈💰 2️⃣ Lifestyle Choices: Beyond financial considerations, renters are drawn to the lifestyle benefits. From spacious layouts to shared amenities akin to luxury complexes, these developments cater to diverse needs. 💼🏊♂️ 3️⃣ Addressing Demand: The rental market is stepping up to bridge the gap in housing availability. Approximately 7.3% of newly constructed homes went directly to the rental market between the second quarter of 2022 and the first quarter of 2023, according to the Urban Institute. 🌍🏠 🙍♂️ 👨👩👦 Renting a house may be especially appealing to people in their 30s or 40s who rent apartments and are looking for space and things like a backyard to raise a family, said Doug Ressler, business intelligence at Yardi. And since the U.S. has built single-family homes at a slower pace than new families formed in the years since the Great Recession, there just aren’t enough houses to go around for everyone who wants to buy one. “The supply of housing has not kept pace with this demand,” Ressler said. “Renters are forced to extend and rent longer, and they're going to look for those opportunities that present themselves that fit their lifestyles.” 🙍♂️ 👨👩👦 https://lnkd.in/dBsHpdeT #sfr #evolvingshift

⏯ Where to Invest in Real Estate Right Now - Leading industry pros curated from Bloomberg offer their best ideas on where to deploy cash ⏯ 💼 🏦 Investing Insights: Crises Present Opportunities and Why Housing and Texas Real Estate Hold Promise💼 🏦 🤠 In the midst of economic uncertainty, the real estate landscape is facing big challenges, from escalating mortgage rates to the transformation of office spaces due to remote work trends. However, amidst these complexities, Texas emerges as a beacon of opportunity for savvy investors. 🤠 🏙 ⚡ The Lone Star State, renowned for its landlord-friendly environment and sustained migration patterns, stands resilient against the tide of fluctuating market conditions. Texas and select Western states remain prime territories for investment due to their robust fundamentals and potential for long-term growth. The allure of Texas lies in its unique blend of high demand and constrained supply, particularly in the multifamily sector. Brennan Degner, CEO of DB Capital, identifies this as a "perfect storm" scenario, where macro trends align. 🤠 🐄 Degner's strategy involves targeting older properties situated in burgeoning markets, capitalizing on the gap between rising rental demand and limited construction capabilities. Also, Kate Kaminski of Walton Global emphasizes the pivotal role of land investment in addressing housing shortages. 🏢 Experts and Their Picks 🏢 👨💻 Brennen Degner, DB Capital 👨💻 💯 Strategy: Investing in multifamily properties in landlord-friendly environments, with a focus on older buildings in Texas and Western states 🔑 Key Insight: Leveraging market dynamics to anticipate future supply shortages and capitalize on emerging opportunities in the multifamily sector 👩💻 Kate Kaminski, Walton Global 👩💻 Strategy: Advocating for land investment to address housing needs, utilizing funds that sell residential property to developers over time 🔑 Key Insight: Emphasizing the importance of diversification and income generation in land investments to mitigate risks associated with property development 👨💻 Greg Kuhl, Janus Henderson Investors 👨💻 💯 Strategy: Recommending investments in public REITs, particularly in high-quality office buildings trading at a discount 🔑 Key Insight: Highlighting the potential for arbitrage opportunities in public REITs compared to private alternatives, driven by market repricing and financial strength 👨💻 Peter Stelian, Blue Vista 👨💻 💯 Strategy: Focusing on purpose-built student housing investments, targeting proximity to university campuses for optimal demand 🔑 Key Insight: Stressing the importance of market proximity and scalability in student housing investments, with an eye on campus-centric demand dynamics #lonestarhousing #longtermgrowth https://lnkd.in/e3RjH5ii

⏯ 🏘 The Wall Street Journal/Realtor.com Housing Market 2024 Ranking released today for top 200 most populous statistical areas, measured by the U.S. Census Bureau across two broad categories: real-estate market and economic health and quality of life 🏆 Top 20 Rankings with Median Listing Price (March 24)🏆 1 Rockford, Ill. $235,000 2 Canton-Massillon, Ohio$248,000 3 Ann Arbor, Mich $525,000 4 Akron, Ohio $212,500 5 Springfield, Mo. $340,000 6 Fort Wayne, Ind. $325,000 7 Manchester-Nashua, N.H.$550,000 8 Columbus, Ohio $380,000 9 Kingsport-Bristol-Bristol, Tenn.-Va. $315,000 10 Portland-South Portland, Maine $623,000 11Springfield, Mass. $350,000 12 Burlington-South Burlington, Vt. $499,000 13 Dayton, Ohio $230,000 14 Worcester, Mass.-Conn. $500,000 15 Lancaster, Pa. $420,000 16 Appleton, Wis. $400,000 17 Hickory-Lenoir-Morganton, N.C. $360,000 18 Toledo, Ohio $230,000 19 Louisville/Jefferson County, Ky.-Ind. $315,000 20 Lansing-East Lansing, Mich $225,000 ⚡ Interesting trends in the top 20 MSAs including strong mid-west rankings in Ohio and Michigan, Illinois, Wisconsin and northeast; $345k median list price; favoring tertiary markets vs primary markets.⚡ 🔝 Rockford, IL ranks as the top real estate market attracting home buyers who are drawn to its affordable housing stock and its growing healthcare, aerospace and logistics industries. The Rockford metro area, about 90 miles from Chicago and Milwaukee, offers easy access to its larger neighbors. A direct train line to Chicago is due to open in a few years. 🔝 🖼 Rockford is one of 11 Midwestern metro areas that dominate the top 20. Region’s relative affordability makes it attractive when home prices in much of the U.S. are near record highs. 🏙 3 of top 4 four top-ranked cities — all in the Midwest — had median home price listings in March below $250,000. That compares with the national median listing price of $424,900, according to Realtor.com. 🏙 🎯 Homes in the Midwest are usually less vulnerable to natural disasters. Surveys show that wildfires, floods and hurricanes—and exploding insurance costs associated with these events—are a growing concern among home buyers. 🎯 🔆 Rankings also looked at % homes that are at risk of being affected by extreme heat, wind, air quality, flood and wildfire over the next 30 years. 🔆 🌄 The real-estate market (60% weighting) category indicators are: ✔ real estate demand (15%), based on average pageviews per property; ✔ real estate supply (15%), based on median days on market for real estate listings ✔ median listing price trend (10%), based on annual price growth over the quarter ✔ property taxes (10%) ✔ climate risk to properties (10%) 🌅 The economic and quality of life category (40% weighting) including: ✅ unemployment (5%) ✅ wages (5%) ✅ regional price parities (5%) ✅ share of foreign born (5%) ✅ small businesses (5%) ✅ amenities (10%) ✅ commute time (5%) #housing #riseofmidwest