🏡💭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
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Experienced professional with a passion for shaping skylines and communities. My expertise spans real estate development, construction, strategic investments, asset management, and land acquisition.
📊 Housing Market Shift: A Statistical Snapsho🏠 The American housing narrative is being rewritten, not with deeds, but with leases. Here’s the latest statistical update on the rental home surge: Construction Climbs: Single-family rental home construction has seen a 39% increase from the previous year. Record Highs: 2023 marked a milestone with 93,000 new rental homes completed, the highest ever recorded. More on the Horizon: Approximately 99,000 rental homes are currently under construction, signaling a continued trend. Occupancy Outperforms: Single-family rentals boast higher occupancy rates than multifamily buildings. Pricey Mortgages: With mortgage rates over 7%, renting is becoming a more attractive option for many. Strategic Investments: Companies like Invitation Homes are investing in hundreds of under-construction homes across key cities. 🔍 The Cost of Living: The median renter now spends 31% of their income on housing, surpassing the federal government’s cost-burdened threshold. 💡 The Takeaway: As homeownership hurdles mount, the rise in single-family rentals offers a glimpse into the future of American housing. Join the discussion on our blog and share your thoughts on this significant market shift. #HousingData #MarketTrends Read the full analysis 👉 The Rise of Rental Homes: https://lnkd.in/ev3Dezpt
The Rise of Rental Homes Amidst the Homeownership Hurdle
medium.com
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Rental Housing Economist (Apartments, SFR), Speaker and Author
If you wanted to address housing affordability in the U.S., which line on this chart would you focus on? The White House (and in fairness, many others, including some states and cities and advocacy groups) are lasered in on the red line at the bottom -- apartments. Apartment rents are up about 18% since COVID hit the U.S. in March 2020, and have been fairly flat nationally for more than a year. Meanwhile, rents in single-family homes (with 71% owned by "mom and pops" with fewer than 10 units) are up 25%. And entry-level home prices have soared 43% -- on top of higher mortgage rates. The White House plan specifically targets what it calls "corporations," which it defines as any rental housing owner with 50+ units. This definition would include the vast majority of apartments (even an owner of a single apartment property, since most modern apartments have 50+ units) while it would exclude most single-family rentals. And obviously it would not impact for-sale home prices, as there's no appetite to prevent home sellers from selling to the highest bidder. The White House plan includes significant tax penalties for any owner of 50+ units who increases rents by more than 5% annually over the next two years. (I wrote more about the proposal in a post yesterday if you're curious). Interestingly, the big reason apartment rents have grown less than the other sectors is indisputably due to a significant influx of supply putting downward pressure on rents. I've written about this extensively already, but the punchline is that rents are growing most where supply is NOT going, while rents are falling where supply is going in big numbers. One potential consequence is further reductions in new housing supply. Multifamily rentals comprised 43% of new housing completions in 2023, according to the U.S. Census. And while the White House plan exempts new construction, the perceived crosshairs of policy risk + slippery slope could discourage investors and lenders from new construction -- as we've already seen happen in some U.S. cities due to local policies. To be clear, I'm obviously not advocating that price/rent controls get added for SFR or for-sale homes. But I would suggest looking at what is actually happening right now-- the impact of supply on apartment rents even amidst a period of strong demand -- and pursuing policy solutions that encourage as much new housing (and of all types) as possible. Supply is the one and only solution to housing affordability that every stakeholder and all the academic research align on. #housing #affordability #rents #apartments #sfr
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Affordable Housing & Inclusionary Zoning Advocate. Exclusionary Zoning was the cause. Inclusionary Zoning is the cure.
Inclusionary zoning is the only mechanism that assures the actual production of housing and increasing supply by requiring the delivery of affordable housing contemporaneously along with market units.
Rental Housing Economist (Apartments, SFR), Speaker and Author
If you wanted to address housing affordability in the U.S., which line on this chart would you focus on? The White House (and in fairness, many others, including some states and cities and advocacy groups) are lasered in on the red line at the bottom -- apartments. Apartment rents are up about 18% since COVID hit the U.S. in March 2020, and have been fairly flat nationally for more than a year. Meanwhile, rents in single-family homes (with 71% owned by "mom and pops" with fewer than 10 units) are up 25%. And entry-level home prices have soared 43% -- on top of higher mortgage rates. The White House plan specifically targets what it calls "corporations," which it defines as any rental housing owner with 50+ units. This definition would include the vast majority of apartments (even an owner of a single apartment property, since most modern apartments have 50+ units) while it would exclude most single-family rentals. And obviously it would not impact for-sale home prices, as there's no appetite to prevent home sellers from selling to the highest bidder. The White House plan includes significant tax penalties for any owner of 50+ units who increases rents by more than 5% annually over the next two years. (I wrote more about the proposal in a post yesterday if you're curious). Interestingly, the big reason apartment rents have grown less than the other sectors is indisputably due to a significant influx of supply putting downward pressure on rents. I've written about this extensively already, but the punchline is that rents are growing most where supply is NOT going, while rents are falling where supply is going in big numbers. One potential consequence is further reductions in new housing supply. Multifamily rentals comprised 43% of new housing completions in 2023, according to the U.S. Census. And while the White House plan exempts new construction, the perceived crosshairs of policy risk + slippery slope could discourage investors and lenders from new construction -- as we've already seen happen in some U.S. cities due to local policies. To be clear, I'm obviously not advocating that price/rent controls get added for SFR or for-sale homes. But I would suggest looking at what is actually happening right now-- the impact of supply on apartment rents even amidst a period of strong demand -- and pursuing policy solutions that encourage as much new housing (and of all types) as possible. Supply is the one and only solution to housing affordability that every stakeholder and all the academic research align on. #housing #affordability #rents #apartments #sfr
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𝗠𝗼𝗿𝗲 𝘀𝗶𝗻𝗴𝗹𝗲-𝗳𝗮𝗺𝗶𝗹𝘆 𝗿𝗲𝗻𝘁𝗮𝗹𝘀 𝗮𝗿𝗲 𝗯𝗲𝗶𝗻𝗴 𝗯𝘂𝗶𝗹𝘁 𝗶𝗻 𝘁𝗵𝗲 𝗨.𝗦. 𝘁𝗼 𝗮𝗱𝗱𝗿𝗲𝘀𝘀 𝗵𝗼𝘂𝘀𝗶𝗻𝗴 𝗮𝗳𝗳𝗼𝗿𝗱𝗮𝗯𝗶𝗹𝗶𝘁𝘆—𝘄𝗵𝗮𝘁 𝗱𝗼𝗲𝘀 𝘁𝗵𝗶𝘀 𝗺𝗲𝗮𝗻 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗺𝗮𝗿𝗸𝗲𝘁? A recent article from CNBC highlights the growing trend of single-family rentals being constructed to address housing affordability issues in the U.S. Key points include: • Construction began on 18,000 single-family homes in Q1-2024, a 20% increase quarter-over-quarter. • Increasing demand for rental homes as housing affordability declines. • Builders are focusing more on constructing single-family rentals to meet this demand. • This trend is particularly strong in markets where home prices have surged significantly. The shift towards building more single-family rentals reflects the ongoing struggle with housing affordability. As home prices continue to rise, more families are opting to rent rather than buy, impacting the dynamics of the housing market. This trend indicates a potential increase in rental supply, which could stabilize rental prices but also signifies challenges in homeownership accessibility. To navigate these changes in the housing market: • Monitor Market Trends: Stay updated on the construction of single-family rentals and how it affects housing availability and pricing in your area. • Advise Clients on Renting vs. Buying: Provide insights to clients on the pros and cons of renting single-family homes versus purchasing property in the current market. • Explore Investment Opportunities: Advise clients on the potential for investment in single-family rental properties as part of a diversified portfolio. Understanding market trends and adapting to changes is crucial in today’s housing market. By staying informed and providing strategic advice, you can help clients navigate the evolving landscape and make informed decisions that align with their financial goals. 𝗟𝗶𝗻𝗸 𝘁𝗼 𝗔𝗿𝘁𝗶𝗰𝗹𝗲: More single-family rentals being built in the U.S. to address housing affordability - Diana Olick , CNBC: https://lnkd.in/gvspzCkY
More single-family built-for-rent homes are under construction in the U.S.
cnbc.com
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supply and demand. basic 5th grade economics. repeal the 2019 nys rental law. bring back 1/40 IAI vacancy allowance. common sense. I forgot, the left wing democrats are in control. so much for intelligence and commons sense.
Rental Housing Economist (Apartments, SFR), Speaker and Author
If you wanted to address housing affordability in the U.S., which line on this chart would you focus on? The White House (and in fairness, many others, including some states and cities and advocacy groups) are lasered in on the red line at the bottom -- apartments. Apartment rents are up about 18% since COVID hit the U.S. in March 2020, and have been fairly flat nationally for more than a year. Meanwhile, rents in single-family homes (with 71% owned by "mom and pops" with fewer than 10 units) are up 25%. And entry-level home prices have soared 43% -- on top of higher mortgage rates. The White House plan specifically targets what it calls "corporations," which it defines as any rental housing owner with 50+ units. This definition would include the vast majority of apartments (even an owner of a single apartment property, since most modern apartments have 50+ units) while it would exclude most single-family rentals. And obviously it would not impact for-sale home prices, as there's no appetite to prevent home sellers from selling to the highest bidder. The White House plan includes significant tax penalties for any owner of 50+ units who increases rents by more than 5% annually over the next two years. (I wrote more about the proposal in a post yesterday if you're curious). Interestingly, the big reason apartment rents have grown less than the other sectors is indisputably due to a significant influx of supply putting downward pressure on rents. I've written about this extensively already, but the punchline is that rents are growing most where supply is NOT going, while rents are falling where supply is going in big numbers. One potential consequence is further reductions in new housing supply. Multifamily rentals comprised 43% of new housing completions in 2023, according to the U.S. Census. And while the White House plan exempts new construction, the perceived crosshairs of policy risk + slippery slope could discourage investors and lenders from new construction -- as we've already seen happen in some U.S. cities due to local policies. To be clear, I'm obviously not advocating that price/rent controls get added for SFR or for-sale homes. But I would suggest looking at what is actually happening right now-- the impact of supply on apartment rents even amidst a period of strong demand -- and pursuing policy solutions that encourage as much new housing (and of all types) as possible. Supply is the one and only solution to housing affordability that every stakeholder and all the academic research align on. #housing #affordability #rents #apartments #sfr
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Rent control is not the answer. Increasing supply is how you flatten or reduce rents. Rent control will cause older buildings to fall into disrepair due to the fact that expenses will keep rising and rents will not be able to keep pace.
Rental Housing Economist (Apartments, SFR), Speaker and Author
If you wanted to address housing affordability in the U.S., which line on this chart would you focus on? The White House (and in fairness, many others, including some states and cities and advocacy groups) are lasered in on the red line at the bottom -- apartments. Apartment rents are up about 18% since COVID hit the U.S. in March 2020, and have been fairly flat nationally for more than a year. Meanwhile, rents in single-family homes (with 71% owned by "mom and pops" with fewer than 10 units) are up 25%. And entry-level home prices have soared 43% -- on top of higher mortgage rates. The White House plan specifically targets what it calls "corporations," which it defines as any rental housing owner with 50+ units. This definition would include the vast majority of apartments (even an owner of a single apartment property, since most modern apartments have 50+ units) while it would exclude most single-family rentals. And obviously it would not impact for-sale home prices, as there's no appetite to prevent home sellers from selling to the highest bidder. The White House plan includes significant tax penalties for any owner of 50+ units who increases rents by more than 5% annually over the next two years. (I wrote more about the proposal in a post yesterday if you're curious). Interestingly, the big reason apartment rents have grown less than the other sectors is indisputably due to a significant influx of supply putting downward pressure on rents. I've written about this extensively already, but the punchline is that rents are growing most where supply is NOT going, while rents are falling where supply is going in big numbers. One potential consequence is further reductions in new housing supply. Multifamily rentals comprised 43% of new housing completions in 2023, according to the U.S. Census. And while the White House plan exempts new construction, the perceived crosshairs of policy risk + slippery slope could discourage investors and lenders from new construction -- as we've already seen happen in some U.S. cities due to local policies. To be clear, I'm obviously not advocating that price/rent controls get added for SFR or for-sale homes. But I would suggest looking at what is actually happening right now-- the impact of supply on apartment rents even amidst a period of strong demand -- and pursuing policy solutions that encourage as much new housing (and of all types) as possible. Supply is the one and only solution to housing affordability that every stakeholder and all the academic research align on. #housing #affordability #rents #apartments #sfr
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You already know the debate about renting vs. owning a home. When you rent, you already are paying the mortgage. It’s just someone else’s, and all you have to show is receipts. When you own your own home, you are investing in your future, building up equity, while basically paying the same amount a month for the life of the loan. But if you rent in South Carolina, you live in a state that is No. 3 in the country in rent increases the last three years at a staggering 35 percent increase. Mount Pleasant rents have gone up a mind-boggling 47 percent in the three years, while Charleston rent has gone up 38 percent. Home ownership can be achieved through financing with special programs for first time home buyers, and other rates for public workers such as teachers, first responders, etc. If you rent and are interested in buying a home, send me a direct message or call me at 914-874-3483 and let me know how much you pay in rent and your zip code, and I’ll send houses you could by with a mortgage at or close to the amount you pay in rent. If you are an investor, it is still a great time to get into the Charleston real estate market! https://lnkd.in/evjjZ3uK
South Carolina has seen some of nation's largest rent increases. And they're still rising.
postandcourier.com
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We should talk about the devaluation of the dollar as a reason why everything is more expensive than it was before COVID-19 and before the government printed another $8T. Printing that much money is equivalent to a 30+% devaluation of the dollar. I believe we are in a global currency/national debt race to the bottom.
Rental Housing Economist (Apartments, SFR), Speaker and Author
If you wanted to address housing affordability in the U.S., which line on this chart would you focus on? The White House (and in fairness, many others, including some states and cities and advocacy groups) are lasered in on the red line at the bottom -- apartments. Apartment rents are up about 18% since COVID hit the U.S. in March 2020, and have been fairly flat nationally for more than a year. Meanwhile, rents in single-family homes (with 71% owned by "mom and pops" with fewer than 10 units) are up 25%. And entry-level home prices have soared 43% -- on top of higher mortgage rates. The White House plan specifically targets what it calls "corporations," which it defines as any rental housing owner with 50+ units. This definition would include the vast majority of apartments (even an owner of a single apartment property, since most modern apartments have 50+ units) while it would exclude most single-family rentals. And obviously it would not impact for-sale home prices, as there's no appetite to prevent home sellers from selling to the highest bidder. The White House plan includes significant tax penalties for any owner of 50+ units who increases rents by more than 5% annually over the next two years. (I wrote more about the proposal in a post yesterday if you're curious). Interestingly, the big reason apartment rents have grown less than the other sectors is indisputably due to a significant influx of supply putting downward pressure on rents. I've written about this extensively already, but the punchline is that rents are growing most where supply is NOT going, while rents are falling where supply is going in big numbers. One potential consequence is further reductions in new housing supply. Multifamily rentals comprised 43% of new housing completions in 2023, according to the U.S. Census. And while the White House plan exempts new construction, the perceived crosshairs of policy risk + slippery slope could discourage investors and lenders from new construction -- as we've already seen happen in some U.S. cities due to local policies. To be clear, I'm obviously not advocating that price/rent controls get added for SFR or for-sale homes. But I would suggest looking at what is actually happening right now-- the impact of supply on apartment rents even amidst a period of strong demand -- and pursuing policy solutions that encourage as much new housing (and of all types) as possible. Supply is the one and only solution to housing affordability that every stakeholder and all the academic research align on. #housing #affordability #rents #apartments #sfr
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US apartment rents are up about 18% since COVID hit the U.S. in March 2020, and have been fairly flat nationally for more than a year. Meanwhile, rents in single-family homes (with 71% owned by "mom and pops" with fewer than 10 units) are up 25%. And entry-level home prices have soared 43%—on top of higher mortgage rates.
Rental Housing Economist (Apartments, SFR), Speaker and Author
If you wanted to address housing affordability in the U.S., which line on this chart would you focus on? The White House (and in fairness, many others, including some states and cities and advocacy groups) are lasered in on the red line at the bottom -- apartments. Apartment rents are up about 18% since COVID hit the U.S. in March 2020, and have been fairly flat nationally for more than a year. Meanwhile, rents in single-family homes (with 71% owned by "mom and pops" with fewer than 10 units) are up 25%. And entry-level home prices have soared 43% -- on top of higher mortgage rates. The White House plan specifically targets what it calls "corporations," which it defines as any rental housing owner with 50+ units. This definition would include the vast majority of apartments (even an owner of a single apartment property, since most modern apartments have 50+ units) while it would exclude most single-family rentals. And obviously it would not impact for-sale home prices, as there's no appetite to prevent home sellers from selling to the highest bidder. The White House plan includes significant tax penalties for any owner of 50+ units who increases rents by more than 5% annually over the next two years. (I wrote more about the proposal in a post yesterday if you're curious). Interestingly, the big reason apartment rents have grown less than the other sectors is indisputably due to a significant influx of supply putting downward pressure on rents. I've written about this extensively already, but the punchline is that rents are growing most where supply is NOT going, while rents are falling where supply is going in big numbers. One potential consequence is further reductions in new housing supply. Multifamily rentals comprised 43% of new housing completions in 2023, according to the U.S. Census. And while the White House plan exempts new construction, the perceived crosshairs of policy risk + slippery slope could discourage investors and lenders from new construction -- as we've already seen happen in some U.S. cities due to local policies. To be clear, I'm obviously not advocating that price/rent controls get added for SFR or for-sale homes. But I would suggest looking at what is actually happening right now-- the impact of supply on apartment rents even amidst a period of strong demand -- and pursuing policy solutions that encourage as much new housing (and of all types) as possible. Supply is the one and only solution to housing affordability that every stakeholder and all the academic research align on. #housing #affordability #rents #apartments #sfr
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Real Estate Investor Relations Executive | Strategic Business Developer | Expert in Acquisitions & Valuation Underwriting | Driving Growth and Building Strong Financial Stakeholder Relationships
Diana Olick, CNBC. The apartment market is experiencing increased supply, leading to a six-month decline in rents, now at their lowest levels since March 2022. Nationally, the median rent for a one-bedroom is $1,207, and for a two-bedroom, it's $1,359. Rents are forecasted to continue falling as the multifamily vacancy rate rises. However, certain markets remain competitive, with Miami topping the list due to low vacancy days, high occupancy rates, and significant demand. Milwaukee follows, with apartments renting in 37 days on average. The Midwest, particularly Chicago and Grand Rapids, Michigan, is becoming popular among renters due to affordability and remote work options. Despite rising rental supply, demand remains strong due to limited home inventory and increasing mortgage rates, making homeownership challenging for younger Americans. #apartmentmarket #rentals #supplyanddemand #rentalprices #housingaffordability #Miami #Milwaukee #Chicago #GrandRapids #Midwest #renters #homeownership #mortgagerates #housingmarket #vacancyrate #occupancyrate #renting #realestate #housingdemand #housingtransition
Here are this year's most competitive rental markets
cnbc.com
