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ATTOM Data Solutions Ranks Best Counties for Buying Single-Family Rentals in 2021

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Highest Potential SFR Returns in Schuylkill, Bibb, Baltimore, LaSalle, Chautauqua Counties; Best Returns Concentrated in Midwest, Worst in West; Rental Returns Decrease from a Year Ago in 87 Percent of Counties Analyzed ATTOM Data Solutions, curator of the nation’s premier property database, released its Q1 2021 Single Family Rental Market report, which ranks the best U.S. markets for buying single-family rental properties in 2021. The report analyzed single family rental returns in 495 U.S. counties, each with a population of at least 100,000 and sufficient rental and home price data. Rental data came from the U.S. Department of Housing and Urban Development, and home price data from publicly recorded sales deed data collected and licensed by ATTOM Data Solutions. The average annual gross rental yield (annualized gross rent income divided by median purchase price of single-family homes) among the 495 counties is 7.7 percent for 2021, down from an average of 8.4 percent in 2020. Within that group of counties, the yield declined from 2020 to 2021 in 87 percent of counties. However, it is not all bad news for rental property investors. “Offsetting the declining yields are improved financing terms for such rental properties and portfolios”, said Maksim Stavinsky, co-founder of Roc360, a FinTech platform that is parent to Roc Capital and Haus Lending, both companies specializing in loans to real-estate investors nationwide. “Across our platform, rates that we are quoting to borrowers have more than offset the waning cap rates on a YoY basis, with the highest-tier rental loan borrowers seeing terms in the low 4% range. This is happening despite a yield curve that has been steepening of late.” At the same time, home prices are rising faster than rents in most of the country, which could start making home ownership less affordable and put upward pressure on rents. “The single-family home rental business is less profitable this year compared to last year across most of country, with yields on the average deals decreasing. That is happening as home prices on properties that investors are paying for, in most areas, are rising considerably faster than rents, which is cutting into their profit margins,” said Todd Teta, chief product officer at ATTOM Data Solutions. “Nevertheless, returns on single-family rentals still generally remain strong and there are pockets, especially in the Midwest, where yields top 10 percent. There also are some signs that things could improve this year given that home prices are increasing faster than rents.” Top rental returns in Pottsville, Macon, Baltimore, Ottawa, and Jamestown areas, as well as Midwest region Counties with the highest potential annual gross rental yields for 2021 are Schuylkill County, PA, in the Pottsville metro area (26.1 percent); Bibb County, GA, in the Macon metro area (18.1 percent); Baltimore City/County, MD (16.2 percent); La Salle County, IL, in the Ottawa metro area (14.1 percent) and Chautauqua County, NY, in the Jamestown metro area (13.7 percent). The highest potential annual gross rental yields in 2021 among counties with a population of at least 1 million are Cuyahoga County (Cleveland), OH (9.9 percent); Dallas County, TX (8 percent); Tarrant County (Fort Worth), TX, (8 percent); Franklin County (Columbus), OH (7.9 percent) and Bexar County (San Antonio), TX (7.9 percent). Among the top 50 rental returns for counties analyzed in 2021, 25 are in the Midwest, 15 in the South and 10 in the Northeast. Rental returns decrease from a year ago in almost 90 percent of counties analyzed Potential annual gross rental yields for 2021 decreased compared to 2020 in 430 of the 495 counties analyzed in the report (86.9 percent), led by Baltimore City/County, MD (yield down 43.9 percent); St. Louis City/County, MO (down 35.5 percent); St. Louis County, MO (down 29.3 percent); Bonneville County (Idaho Falls), ID (down 26.7 percent) and Fairfield County (Stamford), CT (down 24 percent). Among counties with a population of at least 1 million, those with the biggest decreases in potential annual gross rental yields from 2020 to 2021include Miami-Date County, FL (down 19.9 percent); Oakland County, MI, in the Detroit metro area (down 18.6 percent); King County (Seattle), WA (down 17.4 percent); Palm Beach County, FL, in the Miami metro area (down 14.2 percent) and Fulton County (Atlanta), GA (down 13.3 percent). Counties in San Francisco, San Jose, Nashville and Maui metros and others in the West post lowest rental returns Counties with the lowest potential annual gross rental yields for 2021 are Williamson County, TN, in the Nashville metro area (3.7 percent); Santa Clara County, CA, in the San Jose metro area (3.8 percent); San Mateo County, CA, in the San Francisco metro area (3.8 percent); San Francisco County, CA (3.9 percent) and Maui County, HI (3.9 percent). Among counties with a population of at least 1 mission, along with Santa Clara County, those with the lowest potential annual gross rental yields in 2021include Kings County (Brooklyn), NY, (4.3 percent); Orange County, CA, in the Los Angeles metro area (4.6 percent); Los Angeles County, CA (4.7 percent) and King County (Seattle), WA (4.8 percent). In the bottom 50 rental returns, among counties analyzed for 2021, 30 are in the West, 10 are in the South, seven are in the Northeast, and three are in the Midwest. Wages rising faster than rents in 77 percent of markets Wages are rising faster than rents in 379 of the 495 counties analyzed (76.6 percent), including Los Angeles County, CA; Cook County (Chicago), IL; Maricopa County (Phoenix), AZ; San Diego County, CA; and Orange County, CA, in the Los Angeles metro area. Rents rose faster than wages in 116 of the 495 counties analyzed (23.4 percent), including Harris County (Houston), TX; Tarrant County (Fort Worth), TX; Sacramento County, CA; Bronx County, NY, and Mecklenburg County (Charlotte), NC. Home prices rising faster than rents in 87 percent of markets Single-family home prices are rising faster than rents in 430 of the 495 counties analyzed (86.9 percent), including Los Angeles County, CA; Cook County (Chicago), IL; Harris County (Houston), TX; Maricopa County (Phoenix), AZ and San Diego County, CA.

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National rent average increased by $3 month-over-month in February, just one positive indicator Year-over-year national average rents were negative in February by 0.1%, but the latest Yardi Matrix National Multifamily Report says they may soon trend into positive territory. “While national rent growth was negative this month, year-over-year rents have steadily shifted closer to positive since October. If this trend continues, February could be the last month where we see a national decline,” state Yardi® Matrix analysts. Overall rents increased by $3 in February to $1,399. This is the ninth consecutive month where overall rents have increased or remained flat, which is another sign of recovery. Out of 133 rental markets surveyed by Matrix for February 2021, an impressive 111 had positive month-over-month rent growth. Meanwhile, the U.S. economy has been bolstered by the newest COVID relief legislation and appears to be heading toward a strong recovery in 2021. Some economists are projecting the possibility of close to 6% GDP growth. “Outside of the gateway and top 30 markets, we saw a large pop in month-over-month rents in many secondary and tertiary markets,” note the analysts. This continues trends that began just over one year ago, when renters began to look outside major cities for larger apartments and less expensive rents. Gain more insights from the new National Multifamily Report. Join Yardi Matrix vice president Jeff Adler and team to hear the spring outlook for multifamily during an April 15 webinar. Registration is free and open to all. Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self-storage property types. Email matrix@yardi.com, call (480) 663-1149 or visit yardimatrix.com to learn more. About Yardi Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

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Haralson will oversee sales and operations as company’s first woman president Intensifies company’s focus on “get to sold” with innovative solutions that yield better outcomes for servicers, buyers, homeowners, and communities Sets stage for efficient scaling as distressed disposition volumes rise Auction.com, the nation’s leading distressed real estate marketplace, announced that Ali Haralson has been promoted to president, a new position in the company that will oversee both sales and operations. Haralson, who has served as the company’s chief business development officer since 2017, will continue to report to CEO Jason Allnutt. “Over the last four years, Ali has successfully partnered with our clients to develop creative disposition solutions, expand our product offerings, innovate new technologies, and help build the vision of Auction.com’s rapidly growing marketplace,” said Allnutt. “I’m thrilled to have her step into this new role, which will set the stage for efficient growth and excellence at Auction.com even as distressed disposition volumes are expected to rise in the coming months and years.” In her four years at Auction.com, Haralson has spearheaded the launch of innovative disposition solutions that reduce friction in the distressed property marketplace and ultimately produce better outcomes for mortgage servicers, distressed homeowners, distressed property buyers, and surrounding communities. Products launched under Haralson’s leadership include Portfolio Interact™, Bid Interact™ and Offer Interact™. “At Auction.com, we are focused on products and solutions that more efficiently get to sold,” said Haralson. “This focus results in a truly transparent marketplace that is beneficial for all parties involved in a distressed disposition. A transparent marketplace ensures the highest and best offer — protecting both the servicer’s interest and the homeowner’s equity. A transparent marketplace also rewards buyers who are best at responsibly rehabbing distressed homes and returning them to the retail market — which in turn improves homeownership rates and home values in the surrounding community.” Haralson has more than 20 years of experience in the servicing industry. Prior to joining Auction, Haralson was COO at Specialized Loan Servicing (SLS), a company that she co-founded in 2003. Under her leadership, SLS grew to employ 1,400 people and service a diverse mortgage portfolio of $50 billion. “It’s a very special historical milestone for Auction.com to promote its first woman president, and to do so during Women’s History Month,” Allnutt said. “Nothing better represents our commitment to recognizing and promoting fantastic talent, while creating a more diverse and inclusive company.” About Auction.com Auction.com is the world’s leading distressed real estate marketplace that engages buyers with a real-time bidding process, providing more transparency than a traditional real estate transaction. With more than 700 employees in offices across the United States, Auction.com uses world-class technology and data science to bring buyers and sellers closer together, bridging the gap between both sides and unleashing the power of the marketplace with its unrivaled transaction platform. For more information, visit: https://www.auction.com

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The National Rental Home Council (NRHC) announced the release of The Property Owners Guide to Rental Assistance, a concise, step-by-step resource to help rental home providers – especially small, individual owners – navigate the process of applying for funding through the federal government’s emergency rental assistance program. “NRHC has been advocating for rental assistance since the beginning of the COVID crisis in early 2020. Now that assistance is finally available, we want to make sure struggling rental home providers have the tools needed to pursue appropriate relief,” according to David Howard, executive director of NRHC. “Our data shows 50% of individual property owners have not received full rent during the past year, jeopardizing their ability to cover the many required costs of home ownership including mortgages, taxes, maintenance costs, and community assessments.” The Property Owners Guide to Rental Assistance provides property owners with relevant insight into key aspects of the federal rental assistance program and outlines a framework for navigating the application process. The guide covers critical steps involved in obtaining rental assistance including: assessing your situation; communicating with your tenant; organizing supporting material; submitting your application; and keeping thorough records. “Rental home providers, large and small, are an essential part of the American rental housing ecosystem,” continued Howard. “According to the U.S. Census Bureau, there is less rental housing in the country today than there was five years ago, even as the amount of owner-occupied housing has increased 10%. Many rental home providers have spent the better part of a year struggling to cover the necessary costs of home ownership all while straining to comply with a myriad of local, state, and federal mandates governing eviction policy and other areas of rental home ownership. Rental home providers need assurance that the market will support their efforts. Rental assistance is good for the industry and we hope The Property Owners Guide to Rental Assistance will be prove useful for the many providers committed to keeping family housing affordable and accessible.” Click here for a copy of The Property Owners Guide to Rental Assistance. About NRHC The National Rental Home Council (NRHC) is the nonprofit trade association representing the single-family rental home industry. NRHC members provide families and individuals with access to high-quality, single-family rental homes that contribute to the vitality and vibrancy of neighborhoods and communities. For more information on NRHC or the single-family rental home industry visit www.rentalhomecouncil.org Contact: David Howard, dhoward@rentalhomecouncil.org

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The median home sale price increased 17% year over year to $330,250—an all-time high—according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. This is the largest increase on record in this data set, which goes back through 2016. Below are other key housing market takeaways for more than 400 U.S. metro areas during the 4-week period ending March 14. Asking prices of newly listed homes hit a new all-time high of $350,972, up 10% from the same time a year ago. Pending home sales were up 21% year over year, the smallest increase since August. New listings of homes for sale were down 17% from a year earlier. Active listings (the number of homes listed for sale at any point during the period) fell 42% from 2020 to a new all-time low. This is the largest decrease on record in this data, which goes back through 2016. 57% of homes that went under contract had an accepted offer within the first two weeks on the market, well above the 46% rate during the same period a year ago. This is another new all-time high for this measure since at least 2012 (as far back as Redfin’s data for this measure goes). During the 7-day period ending March 14, 61% of homes sold in two weeks or less. 44% of homes that went under contract had an accepted offer within one week of hitting the market, up from 32% during the same period a year earlier. This is also an all-time high for this measure. During the 7-day period ending March 14, 48% sold in one week or less. The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, increased to 100.0%—1.8 percentage points higher than a year earlier, an all-time high and the first time since this data series began in 2016 that the four-week average has exceeded 100% nationwide. For the 7-day period ending March 14, the seasonally adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other services from Redfin agents—was up 85% from the same period a year ago, when the housing market was dramatically slowing down at the start of the pandemic. Mortgage purchase applications increased 2% week over week (seasonally adjusted) and were up 5% from a year earlier (unadjusted) during the week ending March 12. For the week ending March 18, 30-year mortgage rates increased to 3.09%, the highest level since June. “This time last year, the housing market was shutting down as many cities implemented strict shelter in place orders. A year later the pandemic is still with us, but the housing market is red-hot. It’s so hot some buyers are acting irrationally,” said Redfin Chief Economist Daryl Fairweather. “Some people are willing to do whatever it takes to win a bidding war to the point they may be overpaying. Still, I wouldn’t call this a housing bubble because the demand for homes is truly there and the buyers can afford these high prices. Bubbles burst; I don’t see that happening. The best hope buyers have is that home prices start to grow at a slower pace, but I don’t expect prices to fall.” In the coming weeks, as the nation’s housing market enters the period where comparisons to a year ago overlap with a steep decline in homebuying demand at the start of the pandemic, many housing demand measures will begin to show very large year-over-year increases. Redfin will provide context around those measures in its reporting as new data becomes available. To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-market-update-one-year-pandemic/

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Home values continued their march upward in February, matching record monthly growth from months prior, according to Zillow’s February Market Report. While home sales and appreciation soared over the course of the pandemic, rent growth slowed, seemingly a boost for rent affordability. However, it was often the more-expensive areas of metros that softened the most, providing little respite for renters in lower-priced areas. Rents have largely flatlined nationally during the pandemic and fallen significantly in several expensive markets, but the cuts did not reach all renters equally. While dropping rents could have provided relief to lower-income households who have been disproportionately impacted by the pandemic, rent has remained stubbornly high in more-affordable areas, a new Zillow® analysis shows. “While the pandemic has cut into demand for rental housing, that has only translated into declining rents in expensive markets, and most acutely at the top-end of those markets,” said Zillow senior economist Jeff Tucker. “This past year saw widespread adoption of work-from-home policies, especially for higher-income renters who previously paid top dollar for proximity to their workplace. Demand for these rentals took a hit as many leapt into homeownership, while the flow of new renters entering these sub-markets dried up, at least temporarily.” In the New York metro area, for example, rents in wealthier neighborhoods are down 11.6% year over year, but they are up 1.8% in the least-expensive areas. In Atlanta, like many other more-affordable metros where rent has risen since last February, the increases have been biggest in the least-expensive ZIP codes, putting added financial pressures on vulnerable renters. Rents across the U.S. are showing real signs of recovery. Typical rents grew substantially on a monthly basis for the second month in a row, posting 0.4% gains after a 0.5% rise in January, lending credence to the idea that rents have bottomed out and are on an upward swing. Still, rents are up just 0.5% year over year, well behind the 3.7% annual pace they were growing in February 2020, illustrating the long road ahead to a full pre-pandemic recovery. Home values continue record-setting riseThe typical U.S. home value rose 1.1% in February to $272,446, maintaining the lightning-fast speed of month-over-month growth seen in both January and December. This is the fastest monthly appreciation in Zillow records reaching back to 1996, and still above the previous high of 1% set in the summer of 2005. Annual home value growth across the U.S. jumped from 9.1% in January to 9.9% in February, the highest yearly appreciation since April of 2006 and an increase of $24,473 for the typical U.S. home. For-sale housing inventory remains lower than a year earlier, as it did throughout 2020 largely due to a fast pace of sales. Inventory fell 8% from January and is down 30.3% year over year. “Home price appreciation kept up its breakneck pace in February, as a wave of early-bird shoppers competed furiously over a very limited inventory offering,” said Tucker. “Monthly price growth accelerated further in most large metros in February, suggesting that buyers still have a lot of gas in the tank to keep pushing prices higher.” Mortgage rates listed by third-party lenders on Zillow rose from a monthly low of 2.58% on February 10 to 2.98% as the month ended. While the streak of record-low rates may be over, rates remain very low by historical standards — mortgage rates ended February 2020 at 3.91%. Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Group Mortgages site by third-party lenders and reflect recent changes in the market.