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Where is Build-for-Rent Headed?

The Market is Still Fundamentally Strong By Adam Stern For context, my firm provides Advisory and Investment Sales Services for regional builders looking to break into or expand in the Build-For-Rent segment, and showing them how to take residential projects and fit them into the Build-For-Rent mold in order to sell their neighborhoods as rental communities to long term buy-and-hold operators. Let’s start with a view of where things just were and where they are right now before delving into what lies ahead.  The Past and Present The housing market in general is coming off a white-hot run where everything from resale homes to new construction homes were flying off the shelves shortly after they were listed. But the market changed in Q4 of 2022. There was a tangible and abrupt shift in the buying patterns of investors in the institutional Single Family Rental (SFR) industry, from the largest publicly traded REITS to smaller private equity and privately funded SFR investment firms. I would estimate buying velocity is down now by as much as 80% from a year ago. Firms that were continually buying particular homes in certain markets have shifted to buying opportunistically. This means they are not so much buying homes that fit a fixed set of criteria, but are now looking for homes that both fit that criteria and have a special circumstance that could lead to a lower than market acquisition price. Those firms that have made the shift are now competing with smaller fund buyers (who were generally always buying opportunistically) for that very inventory. So, professional investment firms active in buying both existing homes and new construction homes overall represents a relatively small segment of the real estate market. These firms, until recently, were very actively funneling capital into the housing market, and are now waiting to see where the market is going before resuming business as usual. Where the Market is Headed Some of those firms from large to small that have been actively pursuing both existing home acquisitions and new construction single-site projects (what is traditionally known as Build-For-Rent), seem to be shifting the majority of their focus to just Build-For-Rent. While the overall pace of acquisition in the institutional SFR sector cools, the desire of firms to see Build-For-Rent projects from builders is actually increasing. It’s a very strange time in this still relatively new and nascent market niche. The economy is slowing, inflation is high and interest rates are high, but inventory is still very low in many markets around the country. Builders are looking at investors to be a second option for them to sell their inventory to while still hoping for strong retail sales. Investors are being very solicitous to see that very inventory, but to make a deal work, both sides of the transaction need to squeeze to make deals come together. Investors need to accept lower overall returns for projects in order to make the option viable for builders, and builders need to be good with thinner margins in order to pen a deal to sell all units in a subdivision to investors. It cannot stay like this forever. So, the question remains… Where is Build-For-Rent headed?  The highest value opportunities being sought by larger scale investors are single-site subdivisions in prime markets that are large enough to house an amenity like a pool and have an onsite leasing office. If a sub-market within a certain Metropolitan Statistical Area (MSA) is proximal enough to the major population centers in that market, meaning being drivable within 30 minutes to major employers, and close to shopping and retail thoroughfares, those communities have been and will continue to be highly sought after.  For a while, there has been talk about the Build-For-Rent trend moving to smaller markets outside of top large markets with populations over 1 million people. I have seen and even attempted to sell projects that fit this mold. It is very difficult to get firms interested in projects in smaller markets unless they are already sold on owning in that market. It is an arduous road. What is happening now on a limited basis and is more likely be the case in the years ahead, is we will see some differentiation in strategies from fund investors where they will do the heavy lifting to get comfortable with certain smaller, tertiary markets and affirmatively start looking for opportunities there. Builders in markets like these will either have to find those firms or set themselves up as evangelists for their particular markets and look to draw firms in with opportunities. This is why Strata SFR was set up to be an Advisory firm to builders first, and an Investment Sales organization second. The task of taking a project that is already under way, building it out, and then structuring the subdivision for sale as Build-For-Rent is a critical first step. Only then does a builder have a chance at either working with a firm like ours or trying on their own to make a market for those communities with a Build-For-Rent investor audience.  The Case for Smaller Projects Behind large single site subdivisions in major and tertiary MSAs are smaller projects that generally are not big enough for an on-site leasing office or amenity. These types of projects, generally ranging from as little as 20 units to high double digits, are a hard sell to most larger fund investors. If a project sits in proximity to other assets or communities of a current rental operator, they can be very attractive, as that operator can look to add doors and scale up their footprint in a particular area. This is only attractive so long as the performance of their current portfolio of homes in the area is strong, and the new units will not directly compete with their already operating inventory. We generally like seeing these smaller projects in good locations in large markets where the potential buyer pool is large and where any firm operating rentals in the area would be a potential take-out buyer. These smaller projects in tertiary markets without large scale investors already owning there generally won’t be

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Greenville-Spartanburg, South Carolina

The Palmetto State’s “Emerald City” is Still a Prime Location for Investors By Carole VanSickle Ellis The Greenville, South Carolina, real estate market has normalized, and that means the Palmetto State’s “Emerald City” is looking more alluring than ever in 2023. Ranked fifth on Realtor.com’s “Top 10 Real Estate Markets to Watch in 2023 and Into the Future,” Greenville boasts a combination of “better housing affordability, greater numbers of renters who can afford to buy a median-priced home, stronger job growth,” and more according to NAR analysts. “Job growth is robust in this area, but job growth in the information industry is even stronger,” wrote NAR’s research group, headed by chief economist and senior vice president for research Lawrence Yun. Information industry jobs, those that deal with data and its management or strategic analysis, are among the most well-paying jobs in the country at this time. These positions pay about 50% more than average, occupy prime positions in a variety of rapidly growing business sectors, and boast an employment multiplier of 5.7, meaning that for every information job in an area, nearly six additional jobs are created. In both the Greenville and Spartanburg areas of South Carolina, information employers are congregating in increasing numbers. Of course, the presence of technology and engineering companies in the Greenville-Spartanburg area is nothing new, which makes it a straightforward process to extend the state’s expertise on courting these industry sectors to information and high-tech operations. Nearly 40 years ago, Lockheed-Martin opened its first South Carolina site. Today, that location is the sole location for assembling F-16 fighter jets and is in the process of hiring to bring its employee total to 1,200. The state has long recognized the value of bringing in employers operating on the cutting edge of technology, offering millions of dollars in support to target industries and even adjusting how air and freight facilities operate in order to make companies’ existence easier and more profitable. This dedication, recently brought to bear on the information industry in particular, is paying off. Last year, Spartanburg’s BMW headquarters for North American car manufacturing announced it would make a $1.7 billion investment to begin building all-electric vehicles “for the U.S. and world markets.” BMW employs 12,000 in the Spartanburg area, and will bring in an additional 300 tech jobs to support its $700-million, 1-million-square-foot high-voltage-battery plant. “BMW and Michelin anchor a strong manufacturing base in South Carolina’s Upstate [where Greenville is located],” said local investor and broker Arn Cenedella, who specializes in multifamily and single-family residential investments. “The Michelin North American headquarters are located here as well, and dozens of manufacturing firms that support BMW, Michelin, and GE.” He noted that as new residents continue to move into the Greenville-Spartanburg area, home prices and rental rates are both still rising. “Average single-family home prices were up 18.4% in 2022 over the year prior,” Cenedella noted, “and our multifamily developments are showing a 94.4% occupancy rate with average rents at $1,340.” Bosch, a leading global supplier of technology and services, is investing $200 million in Greenville and creating 350 new jobs. Soon thereafter, Diversified Medical Healthcare, a holding entity “dedicated to providing solutions to improve patient care,” announced it would also invest $51 million to create 185 new jobs in the Greenville area. Bryan Grady, director of labor market information at the South Carolina Department of Employment and Workforce (DEW), predicted that valuable job opportunities like these are likely to increase in 2023. In fact, DEW predicted in January of this year that the number of jobs available could increase by nearly 13% by the end of 2023. “There is a wide range of occupations that will fuel this increase,” Grady observed, making particular note of healthcare-related jobs and information technology jobs. “Jobs like information security analysts and software developers [are] expected to be in high demand, as are other technical professions like supply-chain experts, statisticians, and market analysts,” he said. For Donnie Chandler, an investor specializing in the redevelopment of older homes and a realtor with Keller Williams Drive in the Greenville area, the incoming population and those households that will come to fill job positions in other roles supported by these high-tech roles represent ideal residents for his company’s “mill homes,” which, he explained, can still be purchased at discounted prices. “This often allows for enough equity after forced appreciation to qualify for the BRRR [buy, rehab, refinance, repeat] strategy, but most of the mill homes on the west side of Greenville are resold as the values have been crazy in that area,” he said. Chandler focuses on the older, lower-priced mill homes in surrounding communities as well. South Carolina’s mill homes were originally built as early as the late 1800s throughout the state to house mill workers and families. Although many of those initial structures are long gone, the mill village communities that formed in counties like Greenville and Spartanburg remained. These communities often are the last to appreciate and, as a result, are an ideal place for investors to look for deals proximal to higher-value housing and development. They also offer affordable options for new residents hoping to rent or buy near the city centers. The Perfect Combination: A Top Place to Live & Highly Affordable The Greenville-Spartanburg area is attractive to real estate investors, homebuyers, home-sellers, and employers because it is highly affordable relative to the rest of the country, is located in the temperate southeast, meaning employees can enjoy year-round outdoor activities, and offers a vast array of employment opportunities. “I have said that if people can afford to live anywhere, Greenville is the place [they] are choosing more and more,” said Jackson Herlong, chief strategy officer for Joan Herlong and Associates Sotheby’s International Realty. He added that the housing market in the Greenville-Spartanburg area is also unique because it is neither a buyers’ market nor a sellers’ market. “We are going back to normalcy,” Herlong proclaimed. “A smart, calculated marketing strategy is what you really need to sell

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Millennial Home Buyer Report: 2023 Edition

What are the Barriers to Millennial Homeownership? By Jaime Dunaway-Seale Millennial home buyers can’t catch a break. After weathering two economic recessions that delayed their ability to buy a home, they entered one of the most expensive markets in U.S. history. Fierce demand driven by historically low interest rates and limited inventory caused home prices to soar, and many millennials were priced out of the market or outbid by wealthier buyers. To tame a hot market, the Federal Reserve began raising interest rates in March 2022, but millennials — the perpetual victims of poor timing — found little relief. The central bank’s move successfully dulled the home-buying frenzy of the pandemic market but triggered a host of new headaches. Now, high interest rates are millennials’ No. 1 obstacle to owning a home, according to our recent survey of 1,000 home buyers. Meanwhile, just 29% of millennials — compared to 59% in 2022  — expect buyer competition to be a barrier to homeownership in 2023. We found that millennials are being hit hard by the one-two punch of record inflation and expensive borrowing costs. Nearly all millennials (92%) say inflation has altered their home-buying plans, with more than 1 in 4 (28%) delaying their search as a result. Three-fourths of millennials (75%) think the housing market is in a bubble that could burst in 2023, ushering in an era of greater affordability. But experts suggest tempering that expectation. Home prices are unlikely to plunge drastically, and borrowing may become even more expensive as additional interest rate hikes are on the way. It’s not easy to find a home in such conditions, and nearly 3 in 4 millennials (71%) say home buying makes them feel stressed. A majority of millennials (51%) have been reduced to tears during the home-search process, and 44% say it has negatively affected their personal relationships. To learn more about millennial home buyers, we asked Americans who are planning to purchase a home in the next year about their plans, anxieties, and compromises they’re willing to make. We compare this data with previous years to provide a clear snapshot of how millennials are contending with new obstacles in a changing market. » To view the report in its entirety, please visit: https://www.realestatewitch.com/2023-millennial-home-buyer-report/ Sidebar Millennial Home Buyer Statistics 47% — Nearly half of millennials say high interest rates are a significant barrier to homeownership. 28% — Buyer competition is no longer seen as a barrier to homeownership, indicating a changing market. Just 28% of millennials say it’s an obstacle, compared to 59% in 2022. 82% — Millennials who have regrets about their purchase. 62% — Almost two-thirds of millennials plan to put down less than 20% on a home. Only 34% of millennials did the same in 2022, when they faced stiff competition with other buyers.  54% — More than half of millennials have less than $10,000 in savings — a percentage that has tripled since 2022, when only 18% of millennials had that little. 20% — About 1 in 5 millennials have $0 in savings. 86% — The percentage of millennials who would buy a home sight unseen dropped slightly from 90% in 2022. 65% — Millennials who would buy a fixer-upper — a sharp decrease from the 82% who said the same in 2022. 16% — About 1 in 6 millennial homeowners who bought a fixer-upper regret it. 23% — Nearly 1 in 4 millennials plan to buy a home that costs more than the national median of $455,000. To afford such expensive homes, 1 in 3 anticipate maxing out their budget. 14% — For their dream home, 1 in 7 millennials would offer $100,000 or more over asking price, a slight decrease from the 1 in 6 respondents (17%) who said the same in 2022. 46% — Debt remains a looming barrier to homeownership among millennials, with nearly half owing $10,000 or more.

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Lending, Real Estate, and How Both Sectors Could Change in the Coming Year

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A Q&A with Dave Goldstein, Founding Partner, Bavex Lending When Dave Goldstein, founding partner at Bavex Lending, says his company wants to be your lender, he’s not kidding. Bavex is known for what Goldstein refers to as “the most aggressive pricing and leverage in the industry,” meaning that he and his team are determined to help real estate investors get good deals done. “We know that everything in lending is going to have some risk, so we have built our credit box in such a way that we are able to lend investors money whether they are a first-time investor or have decades of experience in real estate investing. We fund projects really focusing on the asset,” Goldstein explained. Bavex Lending offers an array of products to serve investors, from renovation loans and bridge loans to ground-up construction and rental loans on stabilized properties. “We are unmatched in our service and speed in getting our clients to the closing table,” Goldstein said confidently. “We are fellow investors, not career lenders. We built our company with an investor mindset because our team has extensive real estate experience in renovating homes, building homes, and acquiring rental portfolios. This means we understand what investors are trying to do and we understand what they need from a lender.” REI-INK sat down with Goldstein in early 2023 to talk about lending, real estate, and how both sectors could change in the coming year. Goldstein said things could look different in 12 months, but some things will remain the same. “The best opportunity will be a property that you can add value to and that is regardless of the economy, interest rates or any other factor,” he said. “It’s our goal at Bavex to help as many investors as possible get there.” The market is pretty volatile these days. From a lender’s perspective, is there room for new real estate investors in today’s market? The short answer is, “Yes.” Because we primarily look at the asset, we have tailor-made a program for people starting out in the business. At Bavex, we look first at the deal, and then we look at the investor’s experience. When you speak with a Bavex team member, we review every aspect of the project, making sure the investor’s capital is protected and that the deal is a good one. We all know that interest rates have been on the rise. How have rising rates affected Bavex Lending and its clients? Rising rates have definitely affected Americans in general and the real estate market in particular. However, this is a good opportunity for some investors. What we are seeing right now is that there are a lot more properties available for purchase and real estate investors who had been priced out of deals are now able to move into the market again and acquire properties at a discount. As a result, even though interest rates are higher, we are seeing borrowers coming to us with properties that they would not have been able to get their hands on even just one year ago. Interest rates are, to a degree, making this market a little more of a buyers’ market and are presenting opportunities to investors which we haven’t seen in a long time. I have seen in the news that many banks are taking a really long time to close on a deal. How long does it take to close a loan at Bavex? At Bavex, we simply do not have to deal with the things that banks have to deal with. We do not need your W-2s or your tax returns. Once we receive a full file [title work, appraisal, inspection, etc.], we often close extremely quickly. In fact, we sometimes close in less than 24 hours. In one of my favorite success stories, a borrower-investor who, today, has probably successfully invested in almost every real estate sector and almost always with our participation on the lending side, relied on our ability to close fast. This borrower came to us at about 3:00 p.m. on a Tuesday, and he had to close the deal by Wednesday. His lender had just pulled out the afternoon before closing. He expected to lose the deal — and six figures in earnest money — when he came to Bavex to see what we could do. We looked at the deal and agreed that it was a good one, and we did not want him to lose the deal or his deposit. By the end of business next day, we had helped him close that deal. That is not even the end of the story. Within 12 months of getting the bridge loan from us, he refinanced the property (it was two duplexes in Philadelphia) into a 30-year rental loan and started another project — borrowing from us, of course. Since that first project, we have done a few dozen projects with that borrower. In fact, we are closing another deal with him tomorrow on a ground-up construction deal for a four-unit property in Philadelphia. Since then, he has taken advantage of every single product we offer in his real estate investing strategies. That must make you really proud. We are definitely proud to be a part of saving the deal for him and of developing a long-term relationship through this process. We are always there for our investors. It is our goal to get our borrowers to the “next step,” whatever that may be, when they come to us for lending services. Sometimes we are helping investors go from doing a dozen projects a year to doing two or three times that, while other times we are helping people go from doing one project, maybe even their first project, to doing multiple projects, generating real wealth, and sometimes creating millionaires on our watch. That is a huge point of pride for me and for my entire team. Through this process we are creating long-lasting relationships, where our investors turn to us again and again,

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5 Ways to Reduce Days on Market for SFRs

Rental Property Marketing is a Critical Part of the Rental Process By Kori Covrigaru When it comes to single-family rentals (SFRs), the number of days they sit on the market is often the most crucial factor in determining how successful your property will be. Reducing the days on market can be beneficial in many ways, such as keeping your bottom line healthy. The SFR market keeps booming. Compared to the multifamily industry, which Walker & Dunlop projects to be worth $3.5 trillion, the SFR market is worth about $3.4 trillion. With this market growing, SFR investors must prioritize marketing to remain ahead of the curve. How will you make your SFRs rent faster and spend fewer days on market? Start Marketing Before the Property is Listed If you’re a property manager or an SFR investor, one of the things you can do to reduce the days on market of your available properties is to start marketing before they’re listed. It is common for potential residents to make their decision about whether or not to rent a home very quickly. If you get the word out about your rental early enough, it will be considered before it’s even vacant. Early rental property marketing means that when the property goes up for rent, it will not need to compete with as many other properties (and therefore will not require as much work to show). What does this mean for you? It means that if you want your rental to be leased fast, starting marketing well before it is listed is imperative. Price Accurately for the Area Price your single-family rental property accurately for the area. Research what similar properties are selling for in the area and how much rent you will be able to charge. More importantly, it would help to consider how much time and money it will take to get the property ready for sale or rent. By doing this, you can determine if your rental price will appeal to potential tenants. Hire a Professional Photographer Using a professional photographer can help shorten the time your single-family rentals are on the market. Having a clear understanding of your goals is the first step. Do you hope to draw in a specific type of resident? Do you want to highlight all the improvements and good maintenance the house has received, or would you prefer to emphasize the outside space or amenities? Once you have determined the types of images that will best serve your purposes, look for the best photographers that focus on producing such images. You’ll need a real estate photographer with experience, preferably one specializing in single-family homes, to help you with the process and ensure your pictures are web-friendly. Include a Digital Floor Plan A digital floor plan is a virtual picture of your property’s interior layout. You can use this to demonstrate to potential residents how much space they’ll have to work with for their expected arrangement. NAR Home Buyers & Sellers Generational Trends Report found that 80% of buyers view floor plans as beneficial. And it will effectively reduce days on market. Include Smart Home Technology in Listing Smart home technology has been gaining popularity in rental property marketing. According to the most recent statistics on smart homes from a poll published by Oberlo, as many as 57.4 million US households have actively used them in 2022 (defined as using them at least once a month). The bar chart represents the adoption of smart home technology in US households from 2018 and its projected increase to 2025. Providing smart home technology can make it easier to rent out your property quickly. When you are marketing your listing, make sure to highlight features like smart locks and security systems. These features will appeal to renters who want to feel safe in their homes and know they can control every aspect of their living situation. Smart home tech has been shown to help improve the rental experience for tenants, and it can also increase the value of your property. Rent Your SFR Faster From having the best professional photography, which you can optimize with API Integration, to including smart home technology in the listing, there are various ways to reduce days on market for single-family rentals. Ultimately, rental property marketing is a critical part of the rental process. If you don’t market your rental property and make it easily visible to potential renters, you will miss out on potential tenants and make it harder to rent your property quickly.

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U.S. Foreclosure Activity Doubles Annually

Foreclosure Starts Up from 2021, While Foreclosure Completions Decline by ATTOM Staff ATTOM, a leading curator of real estate data nationwide for land and property data, released its Year-End 2022 U.S. Foreclosure Market Report, which shows foreclosure filings— default notices, scheduled auctions and bank repossessions — were reported on 324,237 U.S. properties in 2022, up 115% from 2021 but down 34% from 2019, before the pandemic shook up the market. Foreclosure filings in 2022 were also down 89% from a peak of nearly 2.9 million in 2010. Those 324,237 properties with foreclosure filings in 2022 represented 0.23% of all U.S. housing units, up slightly from 0.11% in 2021, but down from 0.36% in 2019 and down from a peak of 2.23% in 2010. “Eighteen months after the end of the government’s foreclosure moratorium, and with less than 5% of the 8.4 million borrowers who entered the CARES Act forbearance program remaining, foreclosure activity remains significantly lower than it was prior to the COVID-19 pandemic,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “It seems clear that government and mortgage industry efforts during the pandemic, coupled with a strong economy, have helped prevent millions of unnecessary foreclosures.” ATTOM’s year-end foreclosure report provides a unique count of properties with a foreclosure filing during the year based on publicly recorded and published foreclosure filings collected in more than 3,000 counties nationwide, accounting for more than 99% of the U.S. population — also available for license or customized reporting. The report also includes new data for December 2022, showing there were 30,822 U.S. properties with foreclosure filings, up less than 1% from the previous month but up 72% from a year ago. Bank repossessions decrease 70% since 2019 Lenders repossessed 42,854 properties through foreclosures (REO) in 2022, up 67% from 2021 but down 70% from 2019 (143,955) and down 96% from a peak of 1,050,500 in 2010. States that saw the greatest number of REOs in 2022 included: »          Illinois (5,518 REOs) »          Michigan (3,669 REOs) »          Pennsylvania (2,741 REOs) »          New York (2,405 REOs) »          California (2,223 REOs) Those metropolitan statistical areas with a population greater than 1 million that saw the greatest number of REOs in 2022 included: »          Chicago, Illinois (3,545 REOs) »          Detroit, Illinois (2,135 REOs) »          New York, New York (1,656 REOs) »          St. Louis, Missouri (1,395 REOs) »          Philadelphia, Pennsylvania (1,302 REOs) “Unlike foreclosure activity during the Great Recession, the majority of homes in foreclosure are not being repossessed by lenders,” Sharga noted. “Our recent homeowner equity report shows that 93% of borrowers in foreclosure today have positive equity, which they appear to be leveraging in order to avoid a foreclosure by refinancing their mortgage or selling the property at a profit. It seems likely that this is a trend that will continue in 2023.” Foreclosure starts on the rise nationwide Lenders started the foreclosure process on 248,170 U.S. properties in 2022, up 169% from 2021 but down 26% form 2019 and down 88% from a peak of 2,139,005 in 2009. States that saw the greatest number of foreclosure starts in 2022 included: »          California (27,269 foreclosure starts) »          Texas (23,151 foreclosure starts) »          Florida (22,968 foreclosure starts) »          Illinois (16,941 foreclosure starts) »          Ohio (13,469 foreclosure starts) Counter to the national trend, five states saw an increase in foreclosure starts from 2019. They included: »          Indiana (up 81%) »          Michigan (up 10%) »          Idaho (up 8%) »          Colorado (up 2%) »          Minnesota (up less than 1%) Those metropolitan statistical areas with a population greater than 1 million that saw the greatest number of foreclosure starts in 2022, included: »          New York, New York (15,821 foreclosure starts) »          Chicago, Illinois (14,360 foreclosure starts) »          Los Angeles, California (8,185 foreclosure starts) »          Philadelphia, Pennsylvania (7,286 foreclosure starts) »          Miami, Florida (7,090 foreclosure starts) Illinois, New Jersey and Delaware post highest state foreclosure rates in 2022 States with the highest foreclosure rates in 2022 were: »          Illinois (0.49% of housing units with a foreclosure filing) »          New Jersey (0.45%) »          Delaware (0.40%) »          Ohio (0.38%) »          South Carolina (0.37%) Rounding out the top 10 states with the highest foreclosure rates in 2022, were: »          Nevada (0.34%) »          Florida (0.33%) »          Indiana (0.30%) »          Maryland (0.27%) »          Michigan (0.26%) Cleveland, Jacksonville, and Atlantic City post highest metro foreclosure rates in 2022 Among 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in 2022 were: »          Cleveland, Ohio (0.70% of housing units with a foreclosure filing) »          Jacksonville, North Carolina (0.58%) »          Atlantic City, New Jersey (0.58%) »          Columbia, South Carolina (0.55%) »          Chicago, Illinois (0.53%) Metro areas with a population greater than 1 million, including Cleveland, Ohio and Chicago, Illinois, that had the highest foreclosure rates in 2022, were: »          Philadelphia, Pennsylvania (0.43%) »          Las Vegas, Nevada (0.42%) »          Jacksonville, Florida (0.42%) Average time to foreclose decreases quarterly and annually U.S. properties foreclosed in the fourth quarter of 2022 had been in the foreclosure process an average of 852 days, a 4% decrease from the previous quarter and 9% decrease from a year ago. States with the longest average time to foreclose in Q4 2022 were: »          Hawaii (2,546 days) »          New Jersey (2,041 days) »          Louisiana (1,925 days) »          New York (1,828 days) »          Pennsylvania (1,692 days) Q4 2022 Foreclosure Activity High-Level Takeaways There was a total of 90,715 U.S. properties with foreclosure filings in Q4 2022, down 2% from the previous quarter but up 61% from a year ago. Nationwide in Q4 2022, one in every 1,549 properties had a foreclosure filing. States with the highest foreclosure rates in Q4 2022 were: »          Illinois (one in every 724 housing units with a foreclosure filing) »          Delaware (one in every 848 housing units) »          New Jersey (one in every 860 housing units) »          South Carolina (one in every 950 housing units) »          Ohio (one in every 1,035 housing units) December 2022 Foreclosure Activity High-Level Takeaways Nationwide in December 2022, one in every 4,558

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