REI INK

From Broadcast Journalism to Real Estate Finance

Nate Zielinski, Senior Partnerships Coordinator at RCN Capital By Carole VanSickle Ellis When Nate Zielinski graduated with a degree in broadcast journalism in 2015, he did not foresee real estate investment financing in his future. Nevertheless, when he joined private lender RCN Capital in 2020, he knew his background in communications would be an asset in his new role. “I went in as a blank slate as far as the real estate investment slate goes, but I think everyone has a ‘that friend’ who is investing in real estate and telling you that you should try it out, so people were flooding into the industry at that time,” Zielinski recalled. “Fortunately for me, RCN’s guidelines for lending are very pro-investor, so they were able to keep going full steam ahead during the pandemic and now as we are coming into a new type of market as well. It made it easier for me to succeed and help investors who were bringing in their deals to succeed also.” “The Coolest Thing to Do” As a kid, when Zielinski dreamed of his future career, he dreamed of sports broadcasting. “At first, I really wanted to be in the NBA, but it became pretty obvious I was not going to make it there,” he admitted. “I figured the next best thing would be for me to be one of the guys sitting courtside and talking about the game. As far as I was concerned, that was the coolest thing to do.” Zielinski pursued his dreams, majoring in broadcast journalism and honing his writing and hosting skills throughout college and in his early professional years. “It just affirmed my belief that creating content and talking to other people about things that I am passionate about was really, really fun to me,” he recalled. He also gained experience writing podcast scripts and even calling high school basketball games, which he says even today help him maintain the “muscle memory” needed to be able to come up with ideas and talk on the fly. Today, however, what gets Zielinski excited is networking and building relationships in the real estate industry and bringing investors’ stories to new audiences via RCN’s podcast, “Uncontested Investing.” The goal of the podcast, he said, is for more people to understand just how much opportunity exists in the real estate investing space. “It is these people and their stories that are truly the stars of the show,” Zielinski said. “When they share information about their lives and passions, we all benefit.” Building Relationships & Spreading the RCN Message Zielinski started out with RCN as a loan officer, but his skills in communication and relationship building soon were the impetus for a move into his current position as senior partnerships coordinator. In this role, he writes monthly, educational articles for multiple publications, networks in person at trade shows, teaches classes about private lending, and, of course, is excitedly working with the company to re-launch “Uncontested Investing.” Zielinski is particularly excited about the podcast, which focuses on real estate professionals and both their personal and professional stories and successes. “It is all about how people succeed in the real estate industry, letting people know this is a huge space you can be a part of in a multitude of ways,” he said. His first episode as the new host will launch in late March. “It is going to be a little bit of industry knowledge, a little bit of entertainment, and a lot of behind-the-scenes information on what leaders in our industry are doing to support real estate and private lending,” Zielinski said. He also teased several other upcoming guests, including Erica Sarway of the Global Financial Training Program and Jon Hornik, co-chair of the Real Estate, Real Estate Finance & Leasing Practice group at law firm LaRocca Hornik Rosen & Greenberg. Hornik specializes in lending practices, real estate transactions, private placements, and commercial lending and leasing. He is also serving his second term as mayor of Marlboro Township in Monmouth County, New Jersey. “That is going to be a really interesting and enlightening conversation because a lot of investors do not really know a lot about what Jon does from a legal standpoint, so that will be a really interesting angle,” Zielinski predicted. “And, of course, Erica is going to basically be giving us a crash course on how to make more money.” Learn more about RCN Capital and see the latest news about the Uncontested Investing podcast at RCNCapital.com. SIDEBAR Navigating New Markets with Consistency and a Team Mindset One of the things Nate Zielinski loves most about working with RCN is getting to see the teamwork that exists in the real estate industry firsthand. However, he noted, developing those early relationships and network connections is not always easy. “There is an onus on the investor to network and develop those relationships over time,” he said, adding, “There are many facets to real estate investing, and it is crucial for investors to open up, identify, and accept the help and expertise available to them.” For Zielinski, this means part of his job is making sure investors know what is available to them, particularly in the context of financing for investments. He is always on the hunt for new connections and companies that can help RCN Capital clients alleviate pain points in their investing trajectories and processes. “Our loan officers have been able to continue closing loans at a significant clip throughout the pandemic and post-pandemic environments,” Zielinski observed. “Today’s market is constantly changing, and part of my job is to form relationships that will help us identify companies that can partner with us in any economy and help us reach investors through different education platforms.” RCN Capital is a nationwide, private direct lender established in 2010 that provides short-term fix-and-flip financing as well as long-term rental financing for real estate investors. However, Zielinski said, many other real estate professionals do not realize RCN is prepared to serve them as well. “We

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Navigating the Evolving Insurance Landscape

A Guide for Real Estate Investors in 2024 By Jason Jones Property owners across the country are grappling with the aftermath of another intense year for the insurance market. Extreme weather events and large-scale natural disasters have caused the insurance landscape to evolve significantly over the last few years. But what does that mean for real estate investors? Let’s start with a look back at a few of 2023’s most impactful losses. Recap of 2023 Events From January through March, a staggering 466 tornadoes were reported, mainly affecting Southeastern states like Mississippi, Louisiana, Arkansas, and Alabama. The trend of severe weather continued in the spring, with more tornadoes, hailstorms, heavy rain, and high winds, collectively contributing to approximately $25 billion in damages. In late summer, wildfires on the island of Maui tragically claimed the lives of over 100 individuals and losses were an estimated $5.5 billion. Shortly after, Category 4 Hurricane Idalia made landfall in the Southeast, triggering severe flooding and losses totaling $2.5 billion. Insurance Market Response  In 2023, real estate investors faced significant price hikes with general rate increases and insurance to value (ITV) minimum increases. Rising building and material costs continued to be a major concern for insurance companies, mainly driven by large-scale natural disasters like wildfires, which impact material availability and the supply chain. Beginning in 2022, many insurance companies continued to pull out of areas such as Florida, Louisiana, and California. Unfortunately, some were forced to shut down operations altogether, not only because it was no longer profitable but because there was concern that one extreme weather event could cause irreparable financial harm to all parties involved. Other companies identified risks they are no longer willing to insure. For example, many carriers now limit or exclude coverage for more frequent and predictable risks, such as Aluminum or Knob & Tube Wiring — two electrical systems that are serious fire hazards. In addition to more exclusionary language, these methods also resulted in higher deductibles.   The good news? The market is beginning to stabilize. The dramatic changes experienced in 2023 were insurance carriers establishing acceptable rates, deductibles, and coverages for viable businesses moving forward. Although costs are expected to continue rising, the rate at which they do is predicted to slow in the coming year. However, significant weather events will always affect the landscape of the insurance market. Takeaways For Real Estate Investors Consult Your Insurance Provider Engaging in open discussions with your agent or broker is the best way to identify exposure, address concerns, and explore additional insurance products. Don’t hesitate to reach out if you have questions or need advice. Choose Appropriate Coverage As an investor, you must realize that protecting your property and your financial well-being are one and the same. Choosing the appropriate insurance agent/agency, policy coverage, ancillary products, and even coverage amounts can help save you money in the event of a loss. Evaluate Coverage Amounts Your insurance expenses don’t indicate how “good” the coverage is. Some high-end properties aren’t required to be insured at market value. They could be insured effectively at the rebuild value, an amount that is significantly less. Consider the following for each property you own to guide coverage decisions:  »          How much could you afford to pay out of pocket if there were a loss? »          Are there other structures on the property and are they insured? »          After a large loss, would you make repairs to the home or clear the lot and sell the land? »          Is the property in an area prone to certain types of losses?  Prioritize Maintenance Many people think purchasing adequate insurance policies creates a failproof risk management strategy. But the truth is, insurance can’t and won’t cover every exposure you have. While you can’t stop a hurricane from damaging your property, quite a few of the most common losses are preventable, such as cooking fires, tree damage, and burst pipes. Regular property inspections and maintenance are crucial in identifying risks and can significantly reduce the likelihood that you experience a severe loss. So, what should you include in your risk management plan? Winter Plumbing // Drain, disconnect, and store garden hoses. Install faucet covers to help prevent outdoor faucets and connected plumbing from freezing. Drain sprinkler systems and swimming pool pumps. Turn off the water and fully drain plumbing systems at all vacant properties. Walkways // The expansion/contraction caused by freezing/thawing can lead to significant damage to exterior walkways, driveways, and stairs. Repair cracked, broken, or uneven areas. Holiday Cooking // Cooking is the leading cause of house fires. Remind tenants to exercise caution in the kitchen and provide tenants with kitchen safety information upon move-in. Spring Roof & Gutters // Check roofs for damage — replace cracked, buckled, or loose shingles. Clean gutters and downspouts to debris from accumulating. Be sure downspouts drain away from the foundation. Trees // Trim healthy trees and bushes back from utility wires. Hire a licensed and insured professional to trim dead branches and cut down large trees. HVAC // Have a professional inspect air-conditioning systems and clean ducts. Check hoses for leaks and make sure everything is draining properly. Summer Decks // Replace broken or weak boards and handrails/grab bars. Sharp edges, splintered or rotting wood, rusted nails, or nail pops are liability hazards and must be remediated. Pools // Ensure swimming pools and spas are up to current municipal standards. Pools should have a fence around the perimeter with self-closing and self-latching gates, anti-entrapment drain covers, and water depths clearly marked on all sides of the pool deck. Fall Alarm Testing // Carbon monoxide and smoke detectors should be installed on each floor in bedrooms, main hallways, and kitchens. Units should be tested monthly and replaced every ten years.  Heating // Tune-up furnaces and inspect HVAC systems. Have ducts professionally cleaned to prevent fires that may result from dust buildup. Pests // Seal or caulk cracks, gaps, or holes near baseboards, windows, and doors to prevent bugs and rodents from entering

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“We Love Ads & 3 Beds, 2 Baths”

Q&A With Motivated Leads Co-Founder Bryan Driscoll By Carole VanSickle Ellis I got into investing first, failed at that first, then got into marketing, then got back into real estate,” states Bryan Driscoll with characteristic forthrightness when asked about his early days as a real estate investor. Back in 1998 when Driscoll first entered the investing world courtesy of the classic Ron LeGrand course that brought so many investors into the space in the late 1990s and early 2000s, the future co-founder of Motivated Leads was not really sure what to do with the leads he generated. “I was only about 18 years old,” Driscoll said wryly. “At the time the best decision seemed like going into advertising instead, so I got into digital marketing.” Entering the digital ad space in its earliest heydays, Driscoll thrived, providing clients with search engine optimization (SEO) services and working in a wide swath of industries. A decade later, he decided to leverage his skills back into real estate investing, making a conscientious decision to invest in only one ZIP code. “I don’t want to drive too far and I’m super busy,” he laughed, “so I try to be really cognizant about time.” While Driscoll stayed in one place and built up his portfolio, however, his lead generation abilities enabled him to find leads anywhere, and this led to the creation of the business he runs today with co-founder Chad Keller. The company generates more than 5,000 leads each month for more than 400 clients nationwide, and those leads average a 10-15% close rate for clients. REI INK sat down with Driscoll to talk lead generation, real estate, and how to make the most of high-quality leads in any market. How did you get into the lead-generation business for real estate investors? Well, it started when I bought my first property. Like many investors, it was a wholesale deal and I had to pay a wholesale fee. I did not mind that because the numbers made sense, but it got me thinking. I thought, “I bet I could slap up a website locally and generate my own leads way cheaper than this.” I partnered up with Chad; we tried it out, and we crushed it. It just made sense. My background was all national marketing in highly competitive spaces, so generating business locally was, by comparison, a lot easier. Once we had things running pretty smoothly for our business, I wondered if we could do it for other people. We started running Facebook ads for investors and that went well, but we were seeing a lot of “churn” because real estate investors really hate paying monthly fees, which most advertising agencies charge. Because we are investors ourselves (mainly 3-bedroom, 2-bath homes), that made sense to us, so we started looking at a model that involved generating leads on our dime, then selling them to real estate investors without monthly fees. They only pay for the lead, and there are no contracts or anything. That spiraled so successfully it transformed our business into what it is today. Your website says you provide the leads and it is up to the investor to close them. Do you have advice for investors on getting to closing? Absolutely. It can be tough for investors because many of them do not have processes in place in their business for getting leads to closing. We want our clients to successfully close leads so they will need more leads, so we follow up every 14 days just to see how things are going and provide a little help if it is needed. If a client says they are not closing their leads, we try to help them break down their systems to see what the problem is. We look at the quality of the leads and the caliber of their process. If it is the leads, we fix it. If it is the process, we try to help them fix it. What types of things do you tell your clients to do to get the best results from their leads? First of all, I recommend that whether you are working with us or doing some other type of lead generation, you have to have really good KPIs (key performance indicators) so you can tell what is and isn’t working in your process. In my investing business, I track: »          How many leads I get »          How many leads turned into appointments »          How many appointments showed up »          How contracts were sent as a result of those appointments »          How many deals we closed These metrics enable us to break down the process with our clients and examine what is going right and wrong. For example, if your leads are not turning into appointments, maybe there is a traffic problem or a messaging problem that is affecting your conversion. If you are getting qualified leads that come to appointments but you are not sending out contracts, maybe it is an issue with your sales team. If the contracts are going out but not closing, maybe you are making offers that are not working. One of our main strengths is that we can look at our clients’ KPIs, and that helps us help them. Also, this is crucial: You must call or text within two minutes of contact for any leads generated online. If you fail in this, a lot of those people will have already moved on because people who are submitting their information online do not wait around. They start scrolling again as soon as they have filled out your form, and they will keep filling out forms until someone reaches out to them and they feel like they have accomplished their goal and taken steps to solve their problem. We recommend setting up an auto-text system that thanks people for filling out the form as soon as they submit it and directs them to an automated appointment system so that they will hopefully stop scrolling, stop reaching out

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Empowering Women to Thrive with Real Estate Investments

Tips on Making the First Move By Lorraine Perez There are countless advantages to investing in real estate. It provides a passive income, allows for diversification of funds, and gives you a sense of freedom and control that you do not get with other forms of investment. Yet the space is dominated by men. According to Zippia’s latest findings, only 31.6% of real estate investors are women. It is not that women are not interested in real estate. Statistics show that 66% of realtors are women, based on National Association of REALTORS findings. So, what keeps us from diving into the real estate investment market? As with everything else, real estate investing comes with a risk. But this risk is tangible. You can see it. You can visit the property. You can build on it and improve the space, which can make the fear of failure that much larger. For some women, the thought of taking a risk on something so concrete can be hard to face. A 2023 study from the University of Bath found that women have less of a willingness to take a financial risk than men, with 53% of the gap attributed to women’s higher levels of loss aversion, while 3% is due to women’s lower levels of financial optimism. In a male dominated space, it can also be intimidating being the only female in the room. But, when it comes down to it, the real estate investment space provides so many opportunities for women. Investing in real estate can be worth the risk. As a woman, it can be empowering and give you a greater control over your financial future. Real estate investing is something you can do independently, part-time on the side or as a full-time business venture. You can do it on your own and find ways to succeed tapping into your own strengths. In celebration of Women’s History Month this March, here are tips to help women interested in real estate investing make the first move. Getting Your Start There is no one size fits all with real estate investing. It is a vast space with many different avenues to explore. First, determine what kind of real estate you want to own. Are you interested in short-term rental properties, long-term rentals, fix and flips or wholesale? Are you interested in doing renovations yourself or working with a contractor? Do you have an interest in interior design? Then an older property might be the right fit. You can take what’s there and transform it into whatever you envision. If not, maybe you should explore new construction, where there is less of a need to fix up a space. Take the time to dive into each space in the real estate market and decide what best fits your needs and wants. It could start with something as simple as a Google search that leads you down a rabbit hole to explore the various niches in the real estate investment market. Having this background knowledge, tied to goals that you set for yourself, is a great starting point. Become Comfortable with the Process Determine what is holding you back or what scares you the most about investing. That is where you want to focus a lot of your research. If it is finances that worry you, start by talking to a lender. Building a good rapport with a lender is vital. They can show you alternative forms of financing that you might not have known about before and help you settle on the right fit for you. Tell them what your ultimate goal is and ask them how they can help you get there. Talking about finances can be hard. Know what you’re comfortable spending and don’t be afraid to open up and ask the questions. Go to a bank and see what options they have or talk to friends and gather their insights. Maybe you have a friend who is already investing who can help you figure out the ins and outs of the space, or maybe they will partner with you to purchase your first property. Gain Confidence Through Education Take a deep dive into the location where you are looking to make a purchase. Understand the market. Look at the property values in that area and how they have trended over the last few years. How does the rental market work in that region? What are renters really looking for in this geographic area? Knowing the area’s past, along with the current trends, will help you in the future. Become a sponge for knowledge. This could look like getting a real estate license to begin understanding how transactions work, getting a job with a lender to better understand that side, or it could be attending seminars and learning from those around you. Understand general real estate practices and what you are giving and getting in a transaction. Learn the acronyms to help you better navigate conversations with those in the space. If you know what you are talking about, this will build your confidence and set you apart. Build Connections Find your people. Join an organization that specializes in the niche market you are planning to enter. Ask for advice and be comfortable talking to people about your goals. This could be as simple as joining a Facebook community dedicated to your focus area. Attend seminars. Find places where you can learn and network all at the same time. Get involved. You should even listen to podcasts that will help you gather more insight. Be Unique  When it comes to real estate investing, make it your own. Everyone’s journey is different. It is OK if you do not want to fix and flip, there are other places where you can join in. Be creative in how you look at real estate, how you are looking to purchase the property and what you are looking to do with it. If you are a cautious person, it is OK to take your time

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BTR Is Proving It’s Built to Last

Investors are Flocking to BTRs as a High Performing Asset By Greg Godderidge Once occupying a small niche in the market, Build-to-rent (BTR) has emerged as the dominant acquisition model of the single-family rental (SFR) sector. Fueled by the persistent lack of existing homes for sale and growing demand for single-family rentals, BTR came into its own in 2023. The model attracted the attention of large institutional investors who recognize the valuable role BTR can play in creating much needed housing supply and offering high quality single-family living for families who have been shut out of the purchase market. An Urgent Need for Housing Supply Since the beginning of the COVID-19 pandemic four years ago, the housing market has been on a rollercoaster ride. After a frantic homebuying frenzy through 2020 and 2021, the purchase market cooled significantly in 2022 and continued at a slow crawl in 2023. Mortgage rates and home prices surged, and average monthly mortgage payments hit record levels, exacerbating the affordability crisis. With mortgage rates rapidly increasing from 3% at the start of 2022 to nearly 8% in 2023, we saw a new phenomenon, the “lock in” effect, which kept potential sellers unwilling to give up their low mortgage rates “locked into” their homes. This only worsened the enduring housing supply shortage, which is projected to continue through the end of the decade. Earlier this year, Moody’s Analytics estimated there is a total housing deficit of 1.5-2 million units, a number that clearly indicates we are still many years away from a balanced market. The shortage is even more severe for affordable housing. A recent Fannie Mae study estimates a shortage of 4.4 million affordable single-family units for both renters and homeowners. This extreme shortage of homes available for both purchase and rent is one of the main factors keeping prices high, thanks to the imbalance of supply and demand. The Urban Institute addresses this in a new report published in January, “Place the Blame Where It Belongs,” which identifies high home prices are “caused by more robust household formation relative to increases in the housing stock.” The report goes a step further to exonerate common scapegoats, including developers and investors, which it argues are not responsible for the supply crisis. In fact, the report suggests the most critical solution to the supply shortage is the most obvious: create more supply. BTR is helping with that. BTR Helps Create Supply Builders became an important source of new supply in 2023. According to John Burns Research and Consulting, builders made up 30-35% of home sales last year, up from the typical range of 12-15%. However, with prices and mortgage rates high, many prospective homebuyers were edged out of the purchase market. The Wall Street Journal reported the cost of buying in 2023 was 52% more than renting, a 30-year high. In response to this economic reality, a growing number of homebuilders began shifting their projects toward build-to-rent communities. As the current market dynamics favor renting over buying, there is an increased demand for single-family rentals. Multifamily rentals in urban centers are losing favor with the millennial generation as the desire for more space to raise a family and work from home have shifted the preference to suburban single-family homes. Many families would still like the benefits of living in a larger, traditional single-family home, but without the burden of a down payment, high-interest mortgage, and unmanageable maintenance costs. The demand for single-family rentals to accommodate the lifestyle of modern millennial families has driven demand to a new niche market: luxury single-family rental communities with amenities like pools, fitness centers, playgrounds and walking trails. Builders have been working hard to meet the surging demand. According to Census Bureau data, the number of single-family build-to-rent (SFBTR) construction starts were up 33% in 2022, with 69,000 homes under construction. New development surged in 2023 as well. Northmarq’s Single-Family Build-to-Rent Report from December 2023 noted approximately 70,000 single-family rental homes were completed in the first three quarters of 2023, up 35% from the same period in 2022. While this production activity is sorely needed, the BTR industry will not be able to solve the much larger issues behind the supply and demand imbalance alone. The most effective way to restore balance to the housing market nationwide is through federal housing policy. Investors Take Note As the scarcity of resale supply bolstered the demand for new homes in 2023, the build-to-rent market attracted the attention of institutional investors. Institutional purchases of scattered homes cooled in 2023 as home sales plunged nationwide. Investors like Invitation Homes and Tricon turned to build-to-rent communities. A number of large projects were completed in 2023, adding much-needed inventory to the single-family housing market. In September 2023, a joint venture of Tricon Residential, Foremost Pacific Group and Woodbridge Pacific Group opened a 170-unit built-to-rent community in Wildomar, California. Earlier this year, Blackstone announced a $3.5B deal to acquire Tricon, indicating continued interest in the BTR sector from institutional giants. Around the same time, American Homes 4 Rent announced a $625 million joint venture with J.P. Morgan Asset Management focused on constructing and operating newly built rental homes, and Invitation Homes established a new build-to-rent team to manage its construction pipeline. Outlook for the Future There are many reasons to expect long term growth and stability in the BTR market. Multiple trends are converging to drive and sustain demand for the foreseeable future. »          The housing shortage is expected to persist for years to come, forcing SFR investors to create their own supply. »          BTRs offer investors a differentiated product with similar operating features to traditional multifamily housing. »          Demand for rentals will remain high from Millennials and the emerging Gen Z population who may be priced out of the homebuyer market in many areas or who simply prefer the flexibility that comes with renting. »          Money continues to flow into the BTR market. Single-family homes built to rent are delivering strong returns to investors. »          BTR may

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It’s Time to Stop Vilifying Rental Housing Providers…

…. For Providing Rental Housing By David Howard A new bill introduced in January 2024 in the U.S. Senate levies an onerous new tax on owners of single-family rental homes for no other reason than they are deemed “institutional” and therefore somehow a threat to America’s housing market. The “Affordable Housing and Homeowner Protection Act,” introduced by Senators Jack Reed (D-RI), Tina Smith (D-MN), and Tammy Baldwin (D-WI) forces anyone owning 15 or more single-family rental homes to pay a tax on all new acquisitions according to the following schedule: 15-25 SFR Homes Owned  » 1% Tax on New Acquisitions 25-100 SFR Homes Owned  » 3% on New Acquisitions 101+ SFR Homes Owned  » 5% Tax on New Acquisitions As an example, a provider owning 50 single-family rental homes who purchases a property costing $300,000 would owe a tax of $9,000. And why is this bill needed? According to Senator Smith, the bill “would hold the corporate investors accountable who take advantage of our country’s housing shortage at the expense of working families.” SFR Homes are Essential to the Housing Economy However, unlike Senator Smith, the National Rental Home Council does not believe providers owning 15 or more homes are responsible for America’s housing crisis. In fact, we believe single-family rental homes are an essential part of America’s housing economy, providing access to quality, affordably-priced homes ideally suited to accommodate the diverse lifestyle needs and financial realities of millions of Americans and their families. In a housing market defined by an historic undersupply of homes and continuing affordability concerns driven by decades-high mortgage rates, single-family rental homes are a part of the solution for making housing more accessible. Rather than recognizing the important contributions owners and builders of single-family rental homes provide to residents, their families, and local neighborhoods, the industry is often mischaracterized and even criticized by the media, policymakers, and housing advocacy organizations. Instead of supporting the rights of property owners and commending the industry for providing communities with a source of long-term, stabilized single-family rental housing, these critics have put owners on the defensive, and worse, have called for legislation and regulation harmful to the industry. In this column last month, I highlighted a new report from the Urban Institute — “Place the Blame Where It Belongs”— detailing the extent of the housing supply crisis in the United States. The report further identifies a number of common “scapegoats,” including institutional investors, often cited as contributing to the country’s housing challenges. In discussing the role of investors in the housing market, the report states, “Investors do not constitute an independent source of demand and do not take houses off the market,” and “it is hard to argue that institutional rental operators drive up home prices over any reasonable period. Moreover, it is possible that through economies of scale, institutional investors make renting cheaper, changing consumers’ rent-versus-own calculations.” As the Urban Institute report makes clear, yet what is often misunderstood (or ignored) by those critical of housing providers, is the extent to which supply constraints impact all housing types — owner-occupied, multifamily, and single-family rental. More investment in housing generally is good for all housing. And while there are clear benefits to policies intended to expand homeownership, the data show there is as much a need to encourage additional investment in rental housing as well. According to Census Bureau data released in February measuring the inventory of housing in the U.S., the amount of owner-occupied housing has grown almost 9% over the past five years while the amount of rental housing has grown by just over 4%. Taking a longer-term perspective, the share of the country’s housing market accounted for by rental housing is less today (30.8%) than it was 50 years ago (32.5%). A persistent shortage of homes throughout the country continues to drive the cost of housing higher, emphasizing the importance of flexibility and choice for families in search of quality, affordably-priced housing. To address this shortage, we need policies that encourage and incentivize the development and investment in all types of housing, not punitive legislation targeting housing providers.

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