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53 Percent of Residential Real Estate Investors Expect Business Growth in 2024

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As first-time home buyers evaluate housing options amid low inventory, 55 percent feel that local investors have a role in solving the housing shortage New Western, the largest national private real estate investment marketplace, released a study on single family real estate investor sentiment and first-time home buyers’ perception of the housing market. Notably, 53 percent of residential real estate investors expect business growth in 2024, while 55 percent of consumers feel that local investors can help solve the housing shortage. Key Highlights: “As we enter the new year with continued low inventory, local investors are providing solutions to the shortage by fixing up unlivable homes and putting them back on the market, giving consumers more options for their home buying search,” said Kurt Carlton, co-founder and president of New Western. “Investors are fueled by the opportunity to capitalize while delivering much needed residential properties back to the market.” From the first half of 2023 to the second half, New Western saw growth nationwide with local markets Houston, Raleigh, Atlanta, Denver and Austin leading the increase in investor-purchased homes. Additionally, New Western saw a 16 percent rise in investor purchases in the West and 6.5 percent in the South during the same time frame. Market sentiment from additional experts: The survey and report, titled “The Flip Side: Residential Real Estate Investing Trends for 2024,” is an analysis from insight based on opinion polling from October to November 2023 from over 1,280 real estate investors ages 18+ who have previously purchased property through New Western or plan to in the future and an external survey in the same time period among consumers who are looking for a new home from Gutcheck, a global market research company, as well as New Western market sales data. The external survey includes over 820 participants ages 18+ who must have considered purchasing a house in the last 12 months or who have purchased one. For more information about New Western, please visit https://www.newwestern.com. About New WesternNew Western is a real estate investment marketplace that makes investing more accessible for more people. Operating in most major cities, our marketplace connects more than 200,000 local investors looking to rehab houses with sellers. As the largest private source of investment properties in the nation, we buy a home every 13 minutes. New Western delivers new opportunity for all—a fresh start for sellers, exclusive inventory for investors, and in doing so, creates housing that is more affordable for buyers. New Western was honored with a Glassdoor Employees’ Choice Award in the U.S. small and medium company category, recognizing the Best Places to Work in 2023. CONTACT: NewWestern@5wpr.com SOURCE New Western

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Most renters (59%) report that they choose to rent versus feeling that they’re forced to rent, and a surprisingly high number of renters (31%) report feeling either ambivalent or uninterested in home ownership altogether 74% of renters report that their timeline to purchase a home has lengthened meaningfully as mortgage rates have increased Older Americans are selling homes to live in apartments and Baby Boomers value the social interactions of apartment living more than Gen Z. and Millennials Knightvest, a fully integrated real estate investment and management company, released the results of the company’s first annual survey measuring multifamily renter sentiment. The survey provides insights into the rent-versus-buy decision, the downstream effects of high mortgage interest rates, and differences in generational preferences around renting. “The rent-versus-buy decision is increasingly nuanced given this dynamic macroeconomic environment, and it’s interesting to see the data support what we’re hearing anecdotally from residents: if you create communities built on quality, service and care, then apartments can become sought-after destinations where residents thrive through multiple seasons of their lives,” said David Moore, Knightvest Founder and CEO. Key takeaways: Most people choose to rent 1. The high cost of home ownership (62%)2. Lower maintenance and repair responsibilities (51%)3. Enhanced flexibility to relocate (35%) The increase in mortgage rates has delayed the homebuying decision by at least a few years Social interactions are an important part of an apartment community Moore concluded: “As we head into 2024, this data underscores the enduring demand for apartments and reveals insights that will continue to shape the real estate landscape for years to come. At Knightvest, we remain focused on executing our strategy to renovate and reposition apartment communities to create compelling, modern living environments at an extraordinary value. With people staying in apartments longer, this work has never been more important than it is today.” Survey background: This poll was conducted between November 20 and November 30, 2023, among a group of more than 4,100 U.S. apartment renters. The survey was created by Knightvest and conducted through an online survey platform. Participation was voluntary, and respondents were not compensated. About Knightvest: Knightvest is an industry-leading multifamily investment and management firm known for creating communities of excellence and delivering dependable results that enable investors, employees, and residents to thrive. As a vertically-integrated firm, Knightvest specializes in renovating and repositioning multifamily properties with a unique approach focused on setting a new standard in design-driven quality, executing with operational efficiency, and leading with a people-first culture. Since its founding in 2007, Knightvest has invested over $10 billion to acquire over 55,000 units across high-growth metro areas in Texas, Arizona, the Carolinas, and Florida to become one of the largest apartment owners in the United States. For more information, please visit www.knightvestcapital.com and follow us on LinkedIn. Contact:invest@knightvest.com SOURCE Knightvest Capital

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The least affordable markets were Anaheim and San Francisco, where homebuyers with the typical local income would’ve needed to spend over 80% of their pay on monthly housing costs. Detroit and Pittsburgh were the most affordable 2023 has been the least affordable year to buy a home in Redfin’s records, but things are looking up for 2024, according to a report from Redfin (redfin.com), the technology-powered real estate brokerage. Someone making the $78,642 median U.S. income in 2023 would’ve had to spend 41.4% of their earnings on monthly housing costs if they bought the $408,806 median-priced U.S. home. That’s the highest share on record and is up from 38.7% in 2022. Data for 2023 goes through October, while data from past years spans the full year. When Redfin refers to a record high, that is referencing records dating back to 2012. The typical 2023 homebuyer needed to earn an annual income of at least $109,868 if they wanted to spend no more than 30% of their earnings on monthly housing payments for the median-priced home. That’s a record high—up 8.5% from 2022—and is $31,226 more than the typical household makes in a year. “A perfect storm of inflation, high prices, soaring mortgage rates and low housing supply caused 2023 to go down as the least affordable year for housing in recent history,” said Redfin Senior Economist Elijah de la Campa. “The good news is that affordability is already improving heading into the new year. Mortgage rates are coming down, more people are listing homes for sale, and there are still plenty of sidelined buyers ready to take a bite of the fresh inventory. We expect these conditions to continue to improve in 2024.” Homebuyers’ monthly payments have grown more than twice as fast as wages Housing affordability has dwindled because wages haven’t increased as quickly as homebuying costs. The median monthly housing payment for homebuyers in 2023 was a record $2,715, up 12.6% from 2022. Over the same period, the median household income rose just 5.2% to an estimated $78,642—also a record high, but not high enough to offset the jump in housing costs. Monthly mortgage costs for homebuyers soared this year as the Federal Reserve raised interest rates to combat inflation. The average 30-year-fixed mortgage rate hit a 23-year high of 7.79% in October, and while it has since fallen to 7.22%, that’s still more than double the 2.65% record low hit during the pandemic. Elevated mortgage rates have cooled homebuyer demand, but housing prices remain high because there aren’t enough homes for sale. The $408,806 median home sale price in 2023 is the highest of any year on record. Many homeowners are opting to stay put because selling and buying a new home would mean losing their low mortgage rate. Austin is the only metro that became more affordable; Anaheim and Miami saw the biggest decreases in affordability In Austin, TX, someone making the $99,523 median income in 2023 would have had to spend 36.6% of their earnings on monthly housing costs if they bought the $456,950 median-priced home, down from 37.7% in 2022. That’s the only decline among the 50 most populous U.S. metropolitan areas. The smallest increases were in Detroit (+0.7 ppts to 18.5%), Oakland, CA (+0.7 ppts to 53.3%), Phoenix (+0.9 ppts to 40.2%) and Las Vegas (+1.2 ppts to 43.8%). Most of these places have something in common: Affordability can’t get much worse because it has already become so strained. Austin, Phoenix and Las Vegas exploded in popularity during the pandemic as remote workers flocked in, causing home prices to skyrocket. With so many people now priced out, costs have started coming back down to earth. Austin posted a bigger home price decline than any other major metro this year (-9.2% YoY). It is followed by Oakland (-5%), Phoenix (-4.1%) and Las Vegas (-3.6%). In Anaheim, CA, someone making the $92,306 median income in 2023 would’ve had to spend 88.3% of their earnings on monthly housing costs if they bought the $1,022,075 median-priced home, up from 80.2% in 2022. That’s the biggest jump among the 50 most populous metros. Next came Miami (+7.1 ppts to 54.1%), West Palm Beach, FL (+6.2 ppts to 49.1%), San Diego (+5.9 ppts to 64.6%) and Newark, NJ (+5.6 ppts to 42.8%). Many of those metros have something in common: Home prices are still rising because there’s still demand from buyers who are coming in from more expensive areas to get more bang for their buck. Miami and West Palm Beach are also attracting out-of-staters who prefer Florida’s low taxes, warm weather and politics. Miami posted the second biggest increase in home prices among the 50 most populous metros this year, up 8.2% from 2022 (Milwaukee came first). It is followed by Newark (+8.2%) and West Palm Beach (+7.6%). California dominates list of least affordable metros; Midwest metros rank among most affordable In Anaheim, someone making the median income in 2023 would’ve had to spend 88.3% of their earnings on monthly housing costs if they bought the median priced home—the highest share among the 50 most populous metros. Next come four other expensive California metros: San Francisco (85.4%), San Jose, CA (73%), Los Angeles (72.9%) and San Diego (64.6%). Most people who make the median income in these areas are forced to rent because it’s not financially feasible to get a mortgage if your monthly payment represents 70% or 80% of your monthly income. At the other end of the spectrum is Detroit, where someone making the median income in 2023 would’ve had to spend 18.5% of their earnings on monthly housing costs if they bought the median priced home—the lowest share among the metros Redfin analyzed. It’s followed by Pittsburgh (23.5%), Cleveland (23.8%), Philadelphia (23.9%) and St. Louis (25.2%). These five metros have lower median home sale prices than anywhere else in the nation—all below $300,000. Hope for 2024: Mortgage payments fall, housing supply rises Housing costs have started to decline as mortgage rates have fallen; the typical homebuyer’s monthly payment was $2,575 during the four weeks ending November 26, down from its peak last month but still up 13% year over year. New listings posted the biggest annual uptick in more than two years. In 2024, Redfin predicts listings will climb further,

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Only 14% of Consumers Believe It’s a Good Time to Buy a Home, a New Survey Low The Fannie Mae (OTCQB: FNMA) Home Purchase Sentiment Index® (HPSI) decreased 0.6 points in November, remaining within the bounds of the low-level plateau it established in the first half of 2023. Consumers’ perceptions of homebuying conditions remain overwhelmingly pessimistic, as only 14% of consumers believe it’s a good time to buy a home, a new survey low. Pluralities of respondents also continue to expect both home prices and mortgage rates to increase over the next 12 months. Overall, the full index is up 7.0 points compared to last year. “Over the past year, the HPSI has plateaued at a low level, evidence of persistent consumer pessimism regarding the state of the housing market,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “Looking back, consumer belief that it’s a ‘bad time to buy a home’ hit a survey high several times this year – including this month – and each time the pessimism could be attributed to high home prices and high mortgage rates. At the end of 2022, as mortgage rates approached 7%, a rate level not seen in over a decade, a plurality of consumers said they expected home prices to decrease; however, that optimism faded over the course of 2023. A significant majority of respondents have also continued to expect mortgage rates to increase or stay the same, though these expectations have tempered over the year. At the same time, consumers have expressed a reduced sense of financial security, with fewer respondents reporting household income growth over the year and a higher percentage saying their incomes remained the same.” Duncan continued: “The combination of persistent affordability challenges and less rosy household finances remain the primary drivers of the low-level plateauing of housing sentiment. Even if mortgage rates decline over the next year, which we currently expect, it’s unlikely to meaningfully affect affordability. The lack of housing inventory is likely to remain a challenge for some time, and home purchase sentiment may continue to be suppressed as a result. As our forecast indicates, we believe it will be a couple years before homes sales return to more normal, pre-pandemic levels.” Home Purchase Sentiment Index – Component Highlights Fannie Mae’s Home Purchase Sentiment Index (HPSI) decreased in November by 0.6 points to 64.3. The HPSI is up 7.0 points compared to the same time last year. Read the full research report for additional information. To receive e-mail updates with other housing market research from Fannie Mae’s Economic & Strategic Research Group, please click here. SOURCE Fannie Mae

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Funding will go towards buying homes in major Midwest markets to address the public housing crisis and create economic mobility Simply Homes, an automated Single Family Rental (SFR) sourcing and underwriting platform developed to help solve the affordable housing crisis by mobilizing stagnant housing stock for use in the Housing Choice Voucher (HCV) program, announced $22M in funding for operations and real estate acquisitions. The financing is led by Gutter Capital and Watchung Capital, with participation from Village Global, Ambush Capital, RavenOne Ventures, Neil Parikh, Gabe Flateman, Luke Sherwin, and others. Harvard University’s Joint Center for Housing Studies 2023 State of the Nation’s Housing report found record unaffordability, extreme housing shortages and an urgent need for both public and private investment to combat these issues, as the current shortage in affordable housing is estimated to be as large as 7 million homes. Simply Homes is addressing this by implementing its platform to optimize the acquisition, renovation, and leasing of otherwise stagnant housing stock and making it available to lower-income families. Over 80% of Simply Homes’ tenant base are single parents who would need to work 150 hours a week to afford market-rate rent on a home. Utilizing HUD’s HCV program through Simply Homes, these families are paying no more than 30% of their income to provide a safe, well-maintained home for their family. The company is co-founded by CEO Brian Bagdasarian who brings two decades of experience in human process automation and machine learning, and previously was with HubSpot, having joined as part of the founding team of Motion.ai, and LogMeIn, where he led Digital Engagement Strategy, and CFO Robert Kavanagh, who, prior to Simply Homes, lead the acquisition of Ireland’s largest social housing portfolio, and previously spent 10 years as an investment banker at Jefferies and Cantor Fitzgerald in New York and London, specializing in infrastructure and ESG assets. “When we buy into a neighborhood, we are investing in the community,” said Brian Bagdasarian, CEO and Founder of Simply Homes. “We offer renovated homes, not just as shelter, but as a foundation for family growth and economic stability to address America’s housing crisis. Children that are able to move into lower-poverty neighborhoods can see a 31% increase in lifetime earnings. We’re making those meaningful changes, one family at a time.” After purchasing its first house in January of this year, Simply Homes closed on its 50th home in early November, and will have close to 100 units in its portfolio by year end. Through its Affordable Housing Vehicle, Simply Homes is investing millions of dollars to reinvigorate neighborhoods with its data-driven approach enabling rapid, effective deployment of capital across communities, all while working with the local residents to maintain a given community’s distinctiveness. “Simply Homes is showing up to this time of crisis with a solution that could change the affordability of housing nationwide,” said James Gettinger, Managing Partner at Gutter Capital. “Housing is least affordable for those that have the highest need and lowest income, and starter homes are rarely built today, leaving few options for the people who need to secure housing the most. By renovating the aging housing stock, Simply Homes is poised to vastly increase the supply of affordable and section-8 homes available.” Already active in Pittsburgh and Cleveland, Simply Homes is expanding into additional markets across the midwest in 2024, driving social and economic mobility in those areas by increasing the ability for those families most in need to achieve housing stability. The company is currently developing a series of AI-powered virtual analysts that rapidly interpret massive amounts of data that Simply Homes aggregates and leverages to make its acquisitions, further improving their ability to identify communities and individual properties where investment can lead to a positive next chapter for homes that need some love and families that need an opportunity. “Simply Homes has developed an impressive technology platform to help unlock capital like ours for the betterment of underserved communities and families,” said Tom Stults, Managing Partner of Watchung Capital. “We believe our partnership with Simply is an exciting opportunity to do well by doing good.” To learn more about Simply Homes, visit https://www.simplyhomes.com. About Simply HomesSimply Homes is an automated SFR sourcing and underwriting platform addressing the affordable housing crisis by mobilizing stagnant housing stock. Simply Homes leverages its proprietary ML and AI-powered automated sourcing and underwriting platform to identify, value, and acquire stagnant housing stock and make them available for their next family—primarily those eligible for HUD’s Housing Choice Voucher program. Press contact:BAM for Simply Homesgutter@bamtheagency.com SOURCE Simply Homes

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62% willing to wait for prices and/or rates to fall before buying a home, down from 85% just six months ago Prospective homebuyers’ patience may be waning, with fewer willing to wait until home prices or interest rates come down to purchase a home, according to new data from the Bank of America Homebuyer Insights Report (PDF). Today, 62% are willing to wait for prices and/or rates to fall before buying a home, down from 85% just six months ago. And they seem to be taking action: Sales of new single-family houses in September 2023 were a seasonally adjusted 759,000 – up from 679,00 sales in April 2023. “When it comes down to it, if buying a home is your goal and within your budget, the best time to buy is when you’re ready financially and you can find a home that fits your needs,” says Matt Vernon, head of consumer lending at Bank of America. “Even in the current interest rate environment, there are clear benefits to purchasing a home and beginning to build equity.” This latest research also explores what buyers would be willing to forgo in order to buy sooner, and what would motivate current homeowners to sell. Approximately 80% of outstanding U.S. mortgages have an interest rate below 5%. This gives homeowners an incentive to stay put because the average 30-year fixed mortgage rate hit 8% in October of this year. Younger people, Millennials in particular, are being hurt disproportionally by this trend, according to Bank of America Institute’s newly released Housing Morsel. The rate disparity is compressing the already limited supply of houses for sale, and begs the question: What does inspire homeowners to sell and free up inventory for would-be homebuyers in today’s environment? What Would Make Homeowners Sell?Half of current homeowners say they’d be prompted to sell if their dream home became available (50%) and/or if they found a more affordable area (54%) – even if it meant paying a higher interest rate for a new mortgage. Additional motivations for some, but not as many, to move and give up their current mortgage rate include: In fact, millions of people are moving to areas, including the Sun Belt (PDF), where they can afford to buy a home. Those surveyed say the following could or already has motivated them to move from one state to another: Work-related reasons may also inspire homeowners to sell in this market, and work is a major driver of out-of-state moves. Those who have or would move to a new state for their careers are driven by increased job opportunities (57%), job requirements to relocate (29%) or the fact that they can work remotely and are no longer tied to an office (28%). Overall, regional labor market dynamics and migration trends are closely correlated, according to Bank of America Institute. Internal Bank of America data found that of the 26 Metropolitan Statistical Areas (MSAs) tracked, Boston and Portland, OR, are more likely to see inward migration due to job changes and cities such as Austin, San Antonio, Las Vegas and Tampa saw the biggest population inflow during the third quarter. What is more, relocating workers seem to be getting bigger pay increases than those who stayed in the same MSA. Willing to SacrificeWith inventory scarce, the Homebuyer Insights Report also explored how prospective buyers are adapting. The report found those surveyed would give up specific home features to increase their chances of finding a home in the year ahead. Notably, there are some differences in what older and younger generations are willing to sacrifice in order to buy a home. Gen Z (15%) are less likely to give up space than baby boomers (40%). However, Gen Z (24%) would sooner compromise on location, including proximity to work, schools, and amenities than baby boomers (6%). Across all generations, would-be buyers are most likely to give up the following if it increased the chances of finding a home to purchase: Homeownership Lays the Foundation for Financial SuccessThis survey asked participants if they view homeownership as a top indicator of success. Here’s how homeownership stacked up against other key markers of success in life: However, homeownership tops the list of how respondents define financial success (53%), according to those surveyed. Also important: saving enough money for an emergency fund (50%), paying down debt (45%) and being able to retire early (43%). Nearly two-thirds (63%) of these homeowners said owning a home is one of their greatest personal achievements – more than raising a family (50%), being in a committed relationship (32%) and/or overcoming a significant challenge (25%). Respondents continue to see homeownership as a reflection of significant achievement and driver of wealth creation that can help them build equity over time: “There’s a clear desire for homeownership, but for some, it has become more challenging to achieve due to current market realities,” shares Vernon. “That’s why we are committed to offering affordable homeownership solutions, which include grants to help homebuyers with their down payments and closing costs, with no repayment required.” Community Homeownership Commitment™Bank of America’s $15 billion Community Homeownership Commitment aims to help low- and moderate-income homebuyers across the country begin to build their personal wealth and family legacy through the power of homeownership. The program includes a combination of specially designed products, resources and expertise as well as one of the most generous grant programs in the industry. Bank of America offers up to $17,500 in combined down payment and closing costs grants and has already granted nearly $438 million in those grants as of the third quarter 2023, with 88% of those grants going to first-time homebuyers. About Bank of America’s Homebuyer Insights ReportSparks Research conducted a national online survey on behalf of Bank of America between September 25th and September 28th, 2023. A total of 1,000 surveys (500 homeowners / 500 renters) were completed by adults 18 years old or older, who make or share in household financial decisions, and who currently own a home/previously owned a home or plan to own a home in the future. Survey completions were monitored by gender and age and/or proper balancing. The margin of error for the total national quota of 1,000 surveys is +/-