REI INK

Asking Rents Flattened in April

Rent Growth to Cool for the 11th-Straight Month By Lily Katz The median U.S. asking rent rose 0.3% year over year to $1,967 in April—the 11th-consecutive month of slowing growth, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That compares to a revised increase of 1.4% one month earlier and a 16% increase one year earlier. On a month-over-month basis, the median asking rent fell 0.2%, which is notable because rents typically rise at this time of year. An expanding pool of rentals to choose from is a major contributor to the slowdown in rent growth. The homebuilding boom over the last decade-and-a-half has increased the number of new rentals on the market, and landlords are now grappling with rising vacancies. Completed residential projects in buildings with five or more units jumped 60% year over year on a seasonally-adjusted basis to 484,000 in March—the most recent month for which data is available. There are only three other instances since the 1980s when completions were higher. The rental vacancy rate ticked up to 6.4% in the first quarter—the highest level in two years. “The balance of power in the rental market is tipping back in tenants’ favor as supply catches up with demand. That’s easing affordability challenges and giving renters a little wiggle room to negotiate in some areas,” said Redfin Deputy Chief Economist Taylor Marr. “The market has become more balanced, but the scales could tip back in favor of landlords if homebuilders pump the brakes on new construction in response to slowing rent growth.” Rent growth is also decelerating because many people are opting to stay put. Fewer people are moving due to economic uncertainty, slowing household formation, still-high rental costs in many markets, and the rising cost of other goods and services due to inflation. Rents Fell Across the Sun Belt in April In Austin, TX, the median asking rent fell 14.3% year over year in April—the largest decrease among the major U.S. metropolitan areas Redfin analyzed. Next came Phoenix (-9.6%), Las Vegas (-7.1%), Oklahoma City, OK (-6.4%) and Chicago (-6%). All but two of the 10 metros with the largest declines are in Sun Belt states.  »         Austin, TX (-14.3%)  »         Phoenix, AZ (-9.6%)  »         Las Vegas, NV (-7.1%)  »         Oklahoma City, OK (-6.4%)  »         Chicago, IL (-6%)  »         Birmingham, AL (-4.5%)  »         Sacramento, CA (-4%)  »         Memphis, TN (-3.6%)  »         Seattle, WA (-3.2%)  »         Dallas, TX (-2.8%) The Sun Belt exploded in popularity during the pandemic as scores of remote workers moved there in search of relatively affordable housing and warm weather. Rents surged and are now coming back down to earth as supply catches up to demand. Much of the nation’s homebuilding in recent years has taken place in the Sun Belt. Phoenix and Austin both ranked in the top five metros with the highest number of multifamily building permits in March. Rents Continued Climbing in the Midwest In Providence, RI, the median asking rent rose 16% year over year in April—the biggest jump among the major metros Redfin analyzed. Next came Raleigh, NC (12.4%), Indianapolis (10.9%), Charlotte, NC (10.5%) and Cleveland, OH (9.7%). Five of the 10 metros that experienced the largest rent increases are in the Midwest. Many midwestern housing markets have held up relatively well because they remain affordable compared to pandemic boomtowns like Austin and Phoenix. That’s in part because they haven’t seen large waves of people moving in and out, which is what drove the booms and busts in many southern and western markets, Marr said.  »         Providence, RI (16%)  »         Raleigh, NC (12.4%)  »         Indianapolis, IN (10.9%)  »         Charlotte, NC (10.5%)  »         Cleveland, OH (9.7%)  »         Columbus, OH (8.3%)  »         Kansas City, MO (8%)  »         Milwaukee, WI (8%)  »         Pittsburgh, PA (7.9%)  »         Nashville, TN (7%) To view the full report, including charts, full metro-level breakouts and methodology, please visit: https://www.redfin.com/news/redfin-rental-report-april-2023

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Unleashing Potential: Mastering Free Skills for Success

Rafael Zabala is a seasoned marketer who established his company through his brilliant ideas. He is the brains behind a game-changing company focused on online marketing and helping entrepreneurs make the most out of their marketing efforts through the use of technology, automation, and AI. Listen to this episode and don’t miss out on this chance to learn from a true visionary in the world of marketing and tech! Quotables “I think that it’s a mistake to, right off the bat, say that someone is going to take care of it for me because without you understanding it, then you don’t know what you’re getting.” “80% of success of all marketers is about creating a unique offer that communicates the value that you have to provide to your prospects.” “I’ve always believed in fail fast so you can move forward.” Links LinkedIn: Rafael Zabala https://www.linkedin.com/in/rafael-za… Website: Interactive Marketing https://www.interactivemarketing.net/… FREE Giveaway: Uncontested Investing Giveaway https://blnsurvey.typeform.com/to/Qwi… Website: RCN Capital https://www.rcncapital.com/podcast Website: REI INK https://rei-ink.com/

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RENTAL RATE INCREASES TRAIL CPI AND WAGE GROWTH IN FIRST QUARTER OF 2023

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Rental costs, a key component of the CPI, suggest further cooling in future inflation numbers The rate of monthly rental price increases for both single family rental properties and multifamily rental units trailed the consumer price index (CPI) and wage growth in the first quarter of 2023, according to data compiled by Beekin and analyzed by CJ Patrick Company. While the CPI rose 5.8% from Q1 2022 to Q1 2023, rents on multifamily rental units rose by only 3.34% and declined on single family rental properties by 2.72%. Of the 74 single family rental markets included in the analysis, only one – Savannah, GA – had a year-over-year increase higher than the CPI. Slightly more than 75% of the 174 multifamily markets analyzed showed rental prices increasing at a slower rate than the CPI. Similarly, only six of the single-family rental markets saw rates increase at a faster pace than the 4.30% year-over-year wage growth reported by BLS in their preliminary report of Average hourly earnings of employees on nonfarm payrolls. The multifamily market was more evenly divided, with 76 markets having rental rates increasing more rapidly than wages and 100 markets where wages grew more quickly than rent. “Today’s report provides some good news for prospective renters,” said Vidur Gupta, Founder and CEO of Beekin, a data analytics company. “Rate increases on rental units have slowed down considerably over the past year, and in many markets are actually lower than wage growth, which means improved affordability. This is particularly true in the single-family rental market, where list prices have declined slightly on a year-over-year basis.” “Since housing costs – rental rates in particular – are such a large component of the CPI, these trends suggest better times ahead for the U.S. economy,” said Rick Sharga, Founder & CEO of market intelligence firm CJ Patrick Company. “With listing prices for single-family rentals declining slightly and rates for multifamily rental units rising at a much slower pace than a year ago, the probability is that we’ll see better inflation numbers in the months ahead.” Single-Family Rental Growth Turns Negative Year-over-year list prices for single-family rental properties were less expensive than they were a year earlier in 49 of the 74 markets analyzed, and only exceeded three percent growth in eight markets: Savannah, GA (5.91%); Philadelphia, PA (5.75%); San Diego, CA (5.58%): Riverside-San Bernardino, CA (5.53%): Ocala, FL (4.89%): El Paso, TX (4.67%): Myrtle Beach, SC (3.50%): and Jackson, MI (3.26%). The markets with the largest price declines on a year-over-year basis all had list prices at least six percent lower than 2022 rates: Colorado Springs, CO (-9.75%); Clarksville, TN (-8.90%); Lakeland-Winter Haven, FL (-8.89%); Winston-Salem, NC (-8.88%): Birmingham, AL (-7.40%): Las Vegas, NV (-6.92%): Phoenix, AZ (-6.87%): Punta Gorda, FL (-6.86%); Kansas City, KS (-6.84%): Tucson, AZ (-6.69%): St. Louis, MO (-6.63%): Pittsburgh, PA (-6.09%): and Jacksonville, FL (-6.03%). “More recent comparisons are showing similar trends,” Gupta noted. “Looking at rental listing data on a quarter-over-quarter basis, single family rental rates declined by -0.34% and multifamily unit rates rose slightly by 1.0%. Both of these were lower than CPI growth of 1.04% for the quarter, although the multifamily list price increase was slightly higher than the 0.85% wage growth in Q1.” Multifamily Rental Unit Rates Continue to Rise, but More Slowly Only eight of the 174 markets included in the Q1 2023 analysis showed double digit year-over-year growth in rental listing prices, with seven of the eight in the South and Southeast: Fayetteville, AR (14.14%); Santa Fe, NM (12.53%); Knoxville, TN (11.13%); Daytona Beach, FL (10.85%); Santa Barbara, CA (10.69%); Savannah, GA (10.58%); and Athens, GA (10.15%). Meanwhile 14 markets had declining list prices compared to Q1 2022: Clarksville, TN (-21.36%); Bremerton, WA (-5.29%); Winston-Salem, NC (-4.98%): Las Vegas, NV (-3.85%); Wichita, KS (-3.69%); Dayton, OK (-3.44%); Coeur d’Alene, ID (-3.06%); Atlantic City, NJ (-2.82%); Cleveland, OH (-1.52%); Boise City, ID (-1.27%); Spokane, WA (-0.61%); San Francisco, CA (-0.46%); Grand Forks, ND (-0.32%); and Eau Claire, WI (-0.29%). “It’s probably worth noting that many of the markets experiencing year-over-year declines in both single family and multifamily rental list prices are also markets that had the most explosive growth during the early stages of the COVID-19 pandemic,” Sharga added. “We’ve seen similar trends in the owner-occupied housing market, where metro areas like Phoenix and Boise are experiencing declines in both home sales and prices.” Methodology Beekin used same-store data on more than 12MM unique single family homes and multifamily units, beginning in 2015. Using interpolation methods similar to those used by the Bureau of Labor Statistics for the Consumer Price Index, it was able to infer rent growth at a national, state and local level for over 170 MSAs across the country. Wage data is sourced from the Bureau of Labor Statistics report on average hourly earnings of non-farm employees. About Beekin Beekin is a Decision Intelligence platform for rental housing. By leveraging cutting edge AI and data, Beekin’s patented solution suites help  with underwriting, asset management, and      capital markets for some of the largest lenders and asset managers. For more information, please visit Beekin.co. About CJ Patrick Company Founded in 2019, CJ Patrick Company is a Market Intelligence and Business Advisory firm working with companies in the real estate and mortgage industries. Founder & CEO Rick Sharga is one of the industry’s most quoted resources on real estate, mortgage and foreclosure trends and has held executive leadership positions with companies such as ATTOM Data, Auction.com, Carrington Mortgage Holdings, and RealtyTrac. Visit www.cjpatrick.com for more information. Media Contacts vidur@beekin.co Rick.Sharga@cjpatrick.com

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32 PERCENT OF DISTRESSED PROPERTY BUYERS EXPECT HOME PRICES TO DECLINE IN 2023

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Buyers still aggressive on acquisitions but shifting toward hold-for-rent strategy 77 percent of buyers are local community developers, owner-occupants doubled Auction.com, the nation’s leading distressed real estate marketplace, released its 2023 Buyer Insights report, which shows nearly one-third (32 percent) of buyers surveyed expect home prices to decline in their local housing market in 2023, nearly double the 17 percent who expected home prices to decline in 2022. Buyer Insights report findings are based on a March 2023 survey of nearly 450 distressed property buyers from across the country who have used Auction.com to purchase homes at foreclosure auction or bank-owned (REO) auction in the last four years. “Local community developers buying at distressed property auction are on the frontlines of the housing market and provide a reliable barometer for emerging real estate trends,” said Jason Allnutt, Auction.com CEO. “They are telling us 2023 will bring further home price declines in many areas but also increased opportunities to convert distressed properties into affordable housing supply as prices adjust to a new market-driven equilibrium.” More than nine in 10 buyers surveyed (92 percent) described themselves as either local community developers (77 percent) or owner-occupant buyers (15 percent). The owner-occupant share of buyers nearly doubled from 8 percent in the 2022 survey. Separate sales data from Auction.com shows that 82 percent of properties purchased on the platform in 2022 were within 100 miles of the buyer’s mailing address. The median distance between buyers and properties was 15 miles for homes sold at foreclosure auction and 21 miles for homes sold at REO auction. “We have a lot of military buyers here and it’s hard to find them affordable, updated homes in a timely manner,” said Julie, a New Mexico-based buyer. “My investing is helping provide renovated, updated homes to people that would have to rent otherwise.” Buyers most bearish and opportunistic in West and Southeast Buyers located in the West region of the country were the most bearish about home price appreciation in 2023, with 43 percent saying they expect home prices to decline for the year. That was up from just 7 percent in the 2022 buyer survey, and it was the highest percentage of any U.S. region. Thirty-seven percent of buyers in the Southeast region said they expect home prices to decline in their local markets, the second highest percentage among the U.S. regions and up from 12 percent in the 2022 survey. Despite rising expectations for a home price correction in 2023, 87 percent of buyers said they planned to increase or keep the same their property acquisitions for the year, up slightly from 86 percent in 2022.  “Right now, we’re very, very bullish, but cautiously bullish, too, because I don’t know what events are going to come in that could throw a monkey wrench into my plans,” said Paul, a Florida-based buyer who purchases properties at REO auction. Buyers were most aggressive in terms of 2023 acquisition expectations in the West and Southeast regions — the two regions with the highest share of buyers expecting a home price correction in 2023. Ninety percent of buyers in both regions said they expect property purchases to increase or remain the same in 2023. More buyers shifting to renovate-and-rent strategy More distressed buyers are shifting to a renovate-and-rent investing strategy in the slowing 2023 market even while renovate-and-resell remains the dominant strategy. Half of all buyers surveyed said that renovating and reselling to owner-occupants was their primary investing strategy, down from 61 percent in 2022. Meanwhile, 39 percent of buyers surveyed said renovating and holding for rental was their primary investing strategy, up from 32 percent in the 2022 survey. “(My investing is) providing income to a lot of people and providing affordable rental properties to the community,” said Grace, a California-based buyer. Nearly nine in 10 buyers surveyed (88 percent) said they typically spend $10,000 or more for renovations on properties purchased on Auction.com. Nearly half (47 percent) said they typically spend between $20,000 and $50,000 on renovations. The average sales price for properties sold on Auction.com in 2022 was $178,000. The typical renovation budget skewed slightly higher for buyers whose primary investing strategy is reselling to owner-occupants: 53 percent of those buyers spend between $20,000 and $50,000 on a typical renovation compared to 46 percent for buyers whose primary strategy is holding for rental. “We put finishes in homes that we would like to have in our own homes,” said Kristen, a Massachusetts-based buyer. “We want those purchasing our homes to love the quality and design of the home and not need to do any additional work. We always look for the hidden things that need to be fixed or changed and never settle for shoddy construction.” Neighborhood stabilization an important motivation A majority of buyers ranked “Making Money” and “Building Generational Wealth” as one of their top three motivations for investing in real estate. “A single mother for many years, … investing affords me financial independence with a goal of creating a solid platform for my sons,” said Kerry, an Alabama-based buyer. Nearly half of buyers (47 percent) ranked “Improving Neighborhoods” as a top-three motivation while both “Expanding Homeownership” and “Providing Affordable Housing” were top-three motivations for more than one-third (38 percent) of buyers surveyed. “I pay the closing costs for veterans, first responders, and educators to help expand home ownership among these groups,” said George, a Texas-based buyer. More than 200 of the 448 buyers surveyed provided a short story of how their investing is helping communities through an optional open-ended question at the end of the survey. About Auction.com Auction.com is the nation’s leading online marketplace for the disposition of distressed residential properties. The company goes beyond traditional disposition programs, offering tools and services that stabilize neighborhoods, expand homeownership, maximize sales, shorten the sales cycle, yield higher returns, mitigate risks and elevate results. Our seller strategy includes customized and flexible programs, data intelligence and buyer insights, and pioneering technology. This includes Remote Bid®, which expands the buyer base nationwide by

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MANAGING WORK LIFE BALANCE

Anthony and Candace Coffey are the owners of Faithful Homebuyers KC. In this episode, we are talking about what it really is like to run a business with your spouse – the challenges, what happens behind the scenes, and how you can grow to become more supportive and respectful of one another in what you do. Listen to this episode to learn how Anthony and Candace discovered how they can work in business together and how they learned how to separate work and home life to become successful! Quotables “She’s right – we are better together, we are stronger together. She runs a side of the company that I don’t want to touch and vice versa.” “It’s really important to shut that line off between work when you walk into the doors, it’s just home life now.” “We love what we do. We don’t win all the time, but this is, this is great and we learn everything every time.” Links Website: Faithful Home Buyers KC https://www.faithfulhomebuyerskc.com/ Social Media: Faithful Home Buyers KC https://www.facebook.com/FHOMEBUYERSKC https://www.instagram.com/faithfulhom… Email: anthonycoffey@gmail.com faithfulhombuyerskc@gmail.com

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It’s a Numbers Game in a People Business

Will Wright is a third-generation Realtor in Fort Worth who has specialized in DFW valuations for over 10 years. In this episode, Will talks about his journey in the real estate space and the importance of building connections for real estate investors, especially those who are just starting out. Listen now to learn why real estate revolves around relationships and how building the right ones will help you succeed! Quotables “Don’t forget the power of connection in this industry, it is a people industry first.” “We are a for profit business but at the end of the day, we have taken the approach of I’m here, I’m from here, and how can I help you.” “What we’re good at, what we’re not good at, what we want to do, what we don’t want to do, and it sounds like now you’ve found a better position, doing things that you do want to do with the people that you trust who pour gas on your skill level as opposed to just pouring tasks on top of you.” Links Facebook: Will Wright https://www.facebook.com/thewillwrigh… Website: RCN Capital https://www.rcncapital.com/podcast Website: REI INK https://rei-ink.com/

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