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Student Housing Asking Rents Reach New High

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Preleasing continues to outpace all previous years, and rent growth remained strong in March Preleasing at Yardi 200 schools hit 67.7 percent in March, exceeding last year’s pace by 2.4 percent, while rent growth accelerated to six percent, according to the latest Yardi® Matrix National Student Housing Report. As of March, the average rent reached $895 per bedroom, marking an all-time high for the sector. A total of 41 universities had double-digit rent growth, while 21 markets had negative rent movement of negative one percent or less. The top 22 schools for rent growth had average preleasing rates at 74 percent and above-national-average enrollment growth rates at 2.6 percent. With data gathered from more than 1,500 properties at 187 schools, Yardi Matrix found that 46 universities had preleasing rates over 75 percent. A total of eight schools were more than 90 percent preleased, including Ole Miss (99.4 percent), Purdue (91.7 percent), Appalachian State (91.6 percent) and Kentucky (90.4 percent). “Rent growth had been high but trending down early in the leasing season. It picked up again in March as students returned from spring break. Rent growth in student housing is being driven by surging demand, particularly at the schools with the strongest recent enrollment growth, a clear indication of the countercyclical nature of the product type,” state Matrix analysts. The strong preleasing is backed by enrollment growth. Preliminary data points to an average jump of 0.7 percent in enrollment year-over-year, for the fall 2023 school year. Large, primary state schools in Power 5 conferences benefitted most from enrollment growth. Gain more insight in the new Yardi Matrix National Student Housing Report. 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, vacant land, industrial, office, retail and self storage property types. Email matrix@yardi.com, call 480-663-1149 or visit yardimatrix.com to learn more. About Yardi Celebrating its 40-year anniversary in 2024, Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With over 9,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com. SOURCE Yardi

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Inventory Gains and a Surge of New Listings Highlight a March in Which Sales Climbed from February 2024 But Trailed March 2023 Home sales in March increased 21.6% over February while trailing the March activity of a year ago. At the same time, a 20.9% surge in new listings during the month fueled a substantial 7.7% expansion in inventory. The inventory gains helped expand the supply of homes for sale by 24.2% year over year, setting the stage for the customary peak homebuying season of May and June. “As we move into what is normally the prime homebuying months, the increased inventory should give buyers more options and a better chance at securing a home that fits their needs,” says Amy Lessinger, RE/MAX® President. “It’s still a seller’s market in many parts of the country, but having a greater volume of available listings is a good step toward a more balanced market.” Anthony Askowitz, Broker/Owner of RE/MAX Advance Realty in Miami, FL, agrees that March’s activity was a good sign for what could come. “March is always a hot time for the real estate market in Miami and this year was no different. Demand was strong, prices increased and, although homes took just a bit longer to sell, thankfully new construction added to the inventory to help meet the needs of new residents.” Up 5.1% year over year, the Median Sale Price increased 1.5% from February – the third monthly increase in a row – and returned to $415,000, a figure it last reached last September. Other metrics of note: Highlights and local market results for March include:Closed Transactions In the 50 metro areas surveyed in March 2024, the overall number of home sales was up 21.6% compared to February 2024 and down 9.4% compared to March 2023. The markets with the biggest decrease in year-over-year sales percentage were Dover, DE at -25.9%, Honolulu, HI at -16.5%, and Miami, FL at -16.3%. The markets with the biggest increase in year-over-year sales percentage were Bozeman, MT at +10.7%, Burlington, VT at +10.2%, and Minneapolis, MN at +10.0%. Closed Transactions:5 Markets with the Biggest YoY Increase Market Mar 2024Transactions Mar 2023Transactions Year-over-Year% Change Bozeman, MT 135 122 +10.7 % Burlington, VT 130 118 +10.2 % Minneapolis, MN 3,548 3,225 +10.0 % Milwaukee, WI 1,054 1,021 +3.2 % Salt Lake City, UT 1,128 1,120 +0.7 % Median Sales Price – Median of 50 metro area pricesIn March 2024, the median of all 50 metro area sales prices was $415,000, up 1.5% compared to February 2024, and up 5.1% from March 2023. The markets with the biggest year-over-year decrease in median sales price were San Antonio, TX at -4.4%, Burlington, VT at -4.3%, and Fayetteville, AR at -2.9%. The markets with the biggest year-over-year increase in median sales price were Manchester, NH at +14.5%, New York, NY at +14.0%, and Hartford, CT at +13.5%. Median Sales Price:5 Markets with the Biggest YoY Increase Market Mar 2024Median Sales Price Mar 2023Median Sales Price Year-over-Year% Change Manchester, NH $479,900 $419,000 +14.5 % New York, NY $570,000 $499,900 +14.0 % Hartford, CT $334,950 $295,000 +13.5 % Miami, FL $510,000 $450,000 +13.3 % Trenton, NJ $382,500 $340,000 +12.5 % Close-to-List Price Ratio – Average of 50 metro area pricesIn March 2024, the average close-to-list price ratio of all 50 metro areas in the report was 99%, flat compared to both February 2024 and March 2023. The close-to-list price ratio is calculated by the average value of the sales price divided by the list price for each transaction. When the number is above 100%, the home closed for more than the list price. If it’s less than 100%, the home sold for less than the list price. The metro areas with the lowest close-to-list price ratio were Miami, FL at 94% and Bozeman, MT at 95%. The metro areas with the highest close-to-list price ratios were San Francisco, CA at 105% and Hartford, CT at 104%. Close-to-List Price Ratio:5 Markets with the Biggest YoY Increase Market Mar 2024Close-to-List PriceRatio Mar 2023Close-to-List PriceRatio Year-over-YearDifference* San Francisco, CA 105.0 % 102.5 % +2.6 pp Seattle, WA 101.5 % 99.6 % +1.9 pp Los Angeles, CA 99.8 % 98.1 % +1.7 pp Cleveland, OH 99.4 % 97.7 % +1.7 pp Hartford, CT 103.5 % 101.9 % +1.6 pp Days on Market – Average of 50 metro areasThe average days on market for homes sold in March 2024 was 40, down four days compared to the average in February 2024, and flat compared to March 2023. The metro areas with the lowest days on market were Baltimore, MD and Washington, DC, tied at 13, followed by a three-way tie between Dover, DE, Philadelphia, PA, and Trenton, NJ at 18. The highest days on market averages were in Fayetteville, AR at 79, San Antonio, TX at 76, and Bozeman, MT at 66. Days on market is the number of days between when a home is first listed in an MLS and a sales contract is signed. Days on Market:5 Markets with the Biggest YoY Decrease Market Mar 2024Days on Market Mar 2023Days on Market Year-over-Year% Change Las Vegas, NV 39 52 -25.4 % Seattle, WA 44 56 -21.6 % Baltimore, MD 13 16 -21.4 % Cleveland, OH 29 37 -19.8 % Detroit, MI 26 31 -18.3 % Months’ Supply of Inventory – Average of 50 metro areasThe number of homes for sale in March 2024 was up 7.7% from February 2024 and up 24.2% from March 2023. Based on the rate of home sales in March 2024, the months’ supply of inventory was 1.7, down from 1.9 in February 2024, and up from 1.4 in March 2023. In March 2024, the markets with the lowest months’ supply of inventory were Seattle, WA at 0.6, followed by a tie between Manchester, NH and Milwaukee, WI at 0.7. The markets with the highest months’ supply of inventory were Miami, FL at 4.1, San Antonio, TX at 4.0, and Bozeman, MT at 3.3. Months’ Supply of Inventory:5 Markets with the Biggest YoY Increase Market Mar 2024Months’ Supplyof Inventory Mar 2023Months’ Supplyof Inventory Year-over-Year% Change Tampa, FL 2.7 1.5 +80.3 % Miami, FL 4.1 2.3 +78.8 % Dover, DE 1.3 0.8 +74.5 % San Antonio, TX 4.0 2.3 +71.4 % Birmingham, AL 2.6 1.6 +65.7 % SOURCE RE/MAX, LLC

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Inventory and rate lock are deciding factors in market competition this spring Those shopping for homes this spring are feeling vastly different levels of market heat depending on where they’re looking. Inventory is a critical factor, the latest market report from Zillow® shows. “Shoppers in the market today should expect competition, especially for attractive listings on the lower end of the price range — a rare opportunity these days,” said Skylar Olsen, Zillow’s chief economist. “That’s kept prices ticking upward in most areas, despite affordability challenges. There are places where new construction relieved some pressure, and where homeowners are less locked into their mortgage, but not in the nation’s most expensive metros. In costly areas, homeowners hold extensive mortgage debt at previously low rates, and the pressure is dialed up even further.” Buyers in the most expensive major U.S. metros are seeing prices ramp up faster than anywhere else. Monthly home value growth is highest in the coastal California metros and Seattle, topping out at 3.3% in San Jose. San Francisco, Seattle, San Diego and Los Angeles follow, with price growth of 2% or more. These five metros are the most expensive markets among the 50 largest in the U.S. It’s no coincidence that these areas are also where the highest share of homeowners are likely locked into their mortgage. That’s because it’s so much more expensive to buy at today’s rates. Bidding wars are common in these markets, all of which ranked among the top 10 for share of homes sold over asking price in February, the most recent data available. Buyers are competing over few choices; all of these metros have seen below-average recovery in inventory compared to before the pandemic. Meanwhile, appreciation is subdued in Southern metros, where existing inventory has grown or nearly recovered since the outset of the pandemic. Metros with the slowest — but still fairly strong — growth are New Orleans, San Antonio, Tampa, Orlando and Jacksonville; all clock in at just over 0.5% appreciation month over month. New construction is providing a pressure-relief valve in these metros, giving buyers who want to move up a place to go. New listings of existing homes have risen from pre-pandemic levels in New Orleans and Austin, while San Antonio and the Florida metros noted above have seen some of the smallest drop-offs. Recovering inventory in these areas has helped ease competition and bring price appreciation under control. New Orleans, Austin and San Antonio are the three markets where buyers actually have more choices than before the pandemic, while Tampa, Orlando and Jacksonville are down just 9% — tied for the second-smallest drop. Nationwide, the divide between hot and cold listings persists. In many markets where new and total inventory has recovered, buyers are gaining traction in negotiations. Homes that sold in March did so in just 13 days. That’s slightly slower than at this time in 2021 or 2022, but far faster than the pre-pandemic norm. Buyers can expect well-marketed and competitively priced properties to fly off the shelves even faster in April and May, as competition ramps up. But other listings are loitering; the median age of all listings on Zillow is 43 days. Relatively affordable markets in the Midwest as well as expensive coastal metros like Seattle and Washington, D.C., have extremely short times on market for listings that sell, nearly matching those from the buying frenzy at the peak of the pandemic. Sold homes were listed for a week or less in 17 major metros. A similar story emerges when looking at listings with price cuts versus those sold over list price. More than 1 in 5 sellers cut their list price in March, the largest share for this time of year in more than a decade. Places where cuts are the most common are Tampa, Phoenix, Jacksonville, San Antonio and Orlando. On the other hand, nearly 27% of homes sold over list price in February, compared to less than 19% in 2019. Sellers who price their home correctly, and amp up their real and digital curb appeal, shouldn’t have a problem cashing out and moving on. SOURCE Zillow

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FirstKey Homes, LLC (“FirstKey Homes” or the “Company”) announced today that Colleen Keating will step down as Chief Executive Officer. Board of Directors members Chan Galbato and Brendan Garvey have been appointed Executive Chairman and Lead Director, respectively. In his role as Executive Chairman, Chan will work closely with FirstKey Homes’ leadership team to oversee all strategic and operational aspects of the business. “FirstKey Homes is proud to be a leader in delivering exceptional offerings to individuals and families across the United States,” said Chan. “Since our founding in 2015, we have grown to become the second largest private single-family rental provider in the United States because of our dedicated team members and their commitment to providing unrivaled resident experiences. In our next stage of growth, we are excited to expand our footprint and provide even more quality homes to hardworking Americans.” In addition to his appointment as Executive Chairman of FirstKey Homes, Chan has served on the Company’s Board since its inception. He also serves as the Chief Executive Officer of Cerberus Operations and Advisory Company, the proprietary operations platform for the funds and accounts managed by Cerberus Capital Management, L.P. and its affiliates (“Cerberus”). Prior to Cerberus, Chan served as an executive leader at The Home Depot. This included roles as President of B2B businesses, which encompassed five business units, including what would become HD Supply. He was also President of Services for Home Depot. Earlier in his career, Chan served as President and Chief Executive Officer of Armstrong World Industries’ global flooring unit, and also spent 14 years with General Electric in operating leadership positions at six business units, including serving as President and Chief Executive Officer of Coregis, a GE Capital company. Brendan Garvey, also a Board member of FirstKey Homes since its inception, is Co-Founder and President of Cerberus’ Residential Opportunities platform, and one of FirstKey Homes’ founding members. A seasoned leader in the global residential sector, Brendan brings more than 30 years of experience in investing and building market-leading platforms. Prior to joining Cerberus, he spent 11 years as a Head Mortgage Trader and Manager at Lehman Brothers, where he managed all risk and trading operations for agency and non-agency residential mortgages. About FirstKey Homes FirstKey Homes, LLC is a privately-owned, single-family rental home property management company with corporate headquarters in Marietta, Georgia. With a mission to give our residents a place to call home, FirstKey Homes is proud to provide safe, affordable, and well-maintained homes to individuals and families across the United States. ContactAlex HorwitzVice President, Media and Public RelationsAHorwitz@firstkeyhomes.com SOURCE FirstKey Homes, LLC

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Lack of affordability is the most commonly cited reason renters don’t believe they’ll ever own a home Nearly two in five (38%) U.S. renters don’t believe they’ll ever own a home, up from roughly one-quarter (27%) less than a year ago, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Lack of affordability is the prevailing reason renters believe they’re unlikely to become homeowners. Nearly half (44%) of renters who don’t believe they’ll buy a home in the near future said it’s because available homes are too expensive. The next most common obstacles: Ability to save for a down payment (35%), ability to afford mortgage payments (33%) and high mortgage rates (32%). Roughly one in eight (14%) simply aren’t interested in owning a home. This is according to a Redfin-commissioned survey of roughly 3,000 U.S. residents, including about 1,000 renters, conducted by Qualtrics in February 2024. Buying a home has become increasingly out of reach for many Americans due to the one-two punch of high home prices and high mortgage rates. First-time homebuyers must earn roughly $76,000 to afford the typical U.S. starter home, up 8% from a year ago and up nearly 100% from before the pandemic, according to a recent Redfin analysis. Home prices have risen 7% in the last year alone, and monthly mortgage payments have risen more than 10%, which helps explain why renters today are more likely than they were last year to say they don’t see themselves owning a home anytime soon. Many renters can’t fathom homeownership because they’re already struggling to afford their monthly housing costs. Nearly one-quarter (24%) of renters say they regularly struggle to afford their housing payments, and an additional 45% say they sometimes struggle to do so. Rents have soared over the last few years because so many people moved during the pandemic, upping demand for rentals. The median U.S. asking rent is roughly $2,000, near the record high hit in 2022—but the good news for renters is that prices aren’t growing nearly as fast as they were during the pandemic, partly because an influx of apartment supply is taking some of the heat off prices. “Housing costs are high across the board, but renting is a more affordable and realistic option for many Americans right now—especially those who have never owned a home and aren’t able to tap into equity from a previous sale,” said Redfin Chief Economist Daryl Fairweather. “While owning a home is usually a sound long-term investment, the barriers to entry and upfront costs of buying are higher than renting. Buying typically requires a sizable down payment and approval for a mortgage—things that are difficult for many people today, when the typical down payment is near $60,000 and mortgage payments are sky-high. The sheer expense of purchasing a home is causing the American Dream of homeownership to lose some of its shine.” Gen Z renters are most likely to believe they’ll own a home Broken down by generation, Gen Z renters are by far the most likely to believe they will become homeowners. Just 8% of Gen Z renters believe they’ll never own a home, compared to 22% of millennials, 40% of Gen Xers and 81% of baby boomers. That stands to reason, as adult Gen Zers (aged 18-27) are in the early stages of their careers and have a lot of time to eventually become homeowners. Older generations, especially baby boomers, may have already owned a home and decided to rent for the convenience and low-maintenance lifestyle, or are on a fixed income. To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/renters-becoming-homeowners-2024

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The residential real estate investment industry is experiencing a major shakeup across the country, as the short list of industry giants who have controlled the market for the last 15 years are suffering massive employee exodus due to poor management, outdated sales tactics and ambitions of a big cashout payday. “With modern times comes modern expectations. Investment real estate professionals no longer want to work for organizations whose executives or board of directors have their sights set on selling the company out to Wall Street or a VC fund. They’re looking for long term pathways that will enable them to fulfill their entrepreneurial desires, while still being connected to something greater where they have input and control,” said Trey Watson, Founder and CEO at Aurumys. “Building a company with the primary goal of selling out is a poison pill that swiftly rots your culture and confuses priorities, which will ultimately bring even the greatest organizations to their knees. You can’t serve the people if you answer to a board in this particular industry. It’s about the people first”. Aurumys is an investment real estate brokerage that operates a private marketplace where real estate investors and homeowners buy and sell investment properties. The company’s primary focus is developing top tier talent within their team, which Aurumys believes directly translates to a premium and tailored experience for their investor and homeowner customers. “You can have the best proprietary tech in the world, but if you don’t have great people and you don’t invest in your inner organization, real estate investors will see right through you and you’ll fail your homeowner customers,” claims Trey. The leadership team at Aurumys brings decades of high frequency transactional experience to the table, having climbed the ladders of the industry’s top firms. In less than 1 year, Aurumys has expanded to 6 states and over 80 employees, with brick-and-mortar offices in Phoenix, Denver, Indianapolis, Albuquerque, Austin and Fort Lauderdale. The company plans to open at least 3 more offices in 2024, and to have 16 operational offices by the end of 2025. Its headquarters is based in Phoenix, Arizona. For more information visit www.Aurumys.com or call 602-975-1822. About Aurumys Pronounced ARE – UMM – ISS. Aurumys is a residential real estate investment brokerage that operates a private marketplace for real estate investors and homeowners, enabling them to buy and sell investment grade property efficiently. The core customers Aurumys aims to work with are typically mom and pop real estate investors or small partnerships, as well as homeowners who want to sell their property. SOURCE Aurumys