Newsletter – Page 103

Redfin Reports Austin, Raleigh and Other Popular Sun Belt Metros Lead the Nation in Homebuilding

by admin
Comment Off
464 views

The 10 metros building the most single-family homes are all located where home prices have skyrocketed as people move in from other parts of the country Sun Belt metros are leading the way when it comes to building new homes—and they need them, with scores of buyers moving in from other parts of the country, causing inventory to dwindle and prices to surge, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Austin, TX had 31.1 single-family building permits per 10,000 people in the first quarter, the most per capita of any major U.S. metro. It’s followed by Raleigh, NC (30.7), Jacksonville, FL (29.2), Nashville, TN (26.6) and Charlotte, NC (22.9). Five other Sun Belt metros round out the top 10: Phoenix (22.7), Houston (22.4), Orlando, FL (20.3), Dallas (18.5) and Las Vegas (17.2). For multifamily properties, the top 10 list is split between Sun Belt metros and northern metros. Austin leads the pack again, with 26.1 multifamily building permits per 10,000 people in the first quarter, followed by Jacksonville (19.9), Salt Lake City (16.7), Orlando (12.7) and Denver (12.6). Seattle (11.9), San Antonio, TX (11.5), Richmond, VA (11.5), Minneapolis (11.1) and Charlotte (11) round out the top 10. All in all, 49 of the 53 U.S. metros with more that 1 million residents issued more single-family building permits per capita in the first quarter than they did on average in the 10 years prior to the pandemic (2010-2019). Thirty-eight of them issued more multifamily permits. Homebuyer demand has started cooling, housing supply is declining at a slower pace than it was at the peak of the pandemic and sales of new homes are down. But the number of homes for sale remains near all-time lows and monthly mortgage payments are near their record high, partly due to mortgage rates that have risen from roughly 3% to over 5% in recent months. Building more homes is one of the best ways to ease the affordability crisis. “If there had been enough homes at the start of the pandemic, housing costs might not have skyrocketed the way they did over the past two years,” said Redfin Chief Economist Daryl Fairweather. “The government should support homebuilding with things like subsidies and upzoning even as demand pulls back so the housing-supply hole starts to fill in. There still aren’t enough homes to meet the pace of household creation, and we need to be more prepared when demand inevitably picks back up.” Home prices are skyrocketing in Sun Belt metros Sun Belt home prices are skyrocketing and affordability is eroding quickly. The 10 metros with the most single-family building permits per capita in the first quarter all saw sale prices shoot up more than the national level of 15.5% year over year in April. Prices in Las Vegas surged 29%, more than anywhere else in the country, while prices in Nashville, Orlando, Raleigh and Phoenix were also among the 10 metros with the fastest-increasing prices (all growing at least 25%). While more new construction increases the total number of homes on the market, new homes are more expensive. The typical newly built home nationwide sold for $470,000 in the first quarter (up 19.2% year over year), while the typical existing home sold for $403,000 (up 16.7%). Another barrier for homebuyers is competition from investors: Newly built homes made up more than 25% of houses bought by investors in the fourth quarter, up from 3% two years earlier. Rents are surging in metros building the most multifamily units The story is similar in the rental market, with outsized price growth in five of the top six metros with the most multifamily building permits per capita. Austin, Jacksonville, Orlando, Denver and Seattle all saw asking rents rise more than the 15% national increase in April, with Austin coming in number one (+46% year over year). Rents have risen a great deal in those places partly because home prices have surged, leading to increased rental demand. There’s a relative lack of homebuilding in places homebuyers are leaving On the other end of the spectrum, Hartford, CT has 1.3 single-family building permits per 10,000 people, the fewest of the metros included in this analysis. It’s followed by New York (1.9), Buffalo, NY (2.1), Chicago (2.3) and San Francisco (2.3). Next come Los Angeles (2.6), Boston (2.6), Providence, RI (2.7), San Jose, CA (2.9), Milwaukee (2.9) and Detroit (2.9). California has a lack of vacant land and less space zoned for housing development. Another reason for the relative lack of building permits in those areas is the outflow of homebuyers. New York, Chicago, San Francisco, Los Angeles, Boston, San Jose and Detroit are all among the top 20 metros homebuyers are leaving. Home-price growth is slower than the national median in nine of those 10 metros (San Jose is the exception). Signs point to a nationwide increase in homebuilding The pandemic-driven homebuying boom intensified an existing housing shortage, drove up home and rental prices and brought the need for newly constructed homes sharply into focus. “We built fewer homes in the 2010s than we have since the 1960s, which is one of the fundamental problems with today’s housing market—especially with millennials, the biggest generation, now in their prime homebuying years,” Fairweather said. “Builders were hit hard by the housing crash—and home construction didn’t fully recover because of a combination of rising material and labor costs and restrictive zoning. Since the start of the pandemic, builders have run into additional problems, with a shortage of materials and skyrocketing lumber costs. As a result, the U.S. is roughly 4 million houses short of meeting homebuyer and renter demand.” There are promising signs that homebuilders are making progress adding new supply. U.S. building permits were up 3.1% year over year in April after plummeting in mid-2020 at the onset of the pandemic. More than 1.7 million homes—including both single-family and multifamily properties—were under construction in March, the highest level since 2006. Builder sentiment fell to a two-year low in

by admin
Comment Off
512 views

Median Home Prices Rise Again in First Quarter of 2022 in Majority of Opportunity Zones Targeted for Economic Improvement; Pace of Gains in Half of all Zones Surpasses Nationwide Quarterly and Annual Increases; Prices Continue Rising At Least 20 Percent Annually in Half of All Zones ATTOM, a leading curator of real estate data nationwide for land and property data, released its first-quarter 2022 report analyzing qualified low-income Opportunity Zones targeted by Congress for economic redevelopment in the Tax Cuts and Jobs Act of 2017. In this report, ATTOM looked at 5,092 zones around the United States with sufficient data to analyze, meaning they had at least five home sales in the first quarter of 2022. The report found that median single-family home and condo prices rose from the fourth quarter of 2021 to the first quarter of 2022 in 55 percent of Opportunity Zones around the country and jumped by at least 20 percent annually in half. ATTOM analyzed those areas where there was sufficient data for all quarters. Those gains followed similar patterns over the past year, as home prices in distressed neighborhoods around the nation continue to keep up with gains in the broader national housing market. While the pace of increases slowed in the first quarter of 2022 compared to peak periods last year, median values still went up in about half the Opportunity Zones by more than the 16.6 percent year-over-year gain seen nationwide. “Home price trends in Opportunity Zones mirror what we’re seeing elsewhere in the housing market,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “Strong price growth has helped homeowners in these economically-challenged areas benefit from higher equity, and should contribute to the ongoing redevelopment of these areas.” Typical home values in Opportunity Zones do remain lower than those in most other neighborhoods around the nation in the first quarter of 2022. Median first-quarter prices were less than the national median of $320,500 in 76 percent of Opportunity Zones, about the same portion as in earlier periods last year. Typical values also were under $200,000 in 51 percent of the zones during the first quarter of 2022. That figure marked the same percentage as in the fourth quarter of 2021, but was down from 61 percent a year earlier, as markets inside some of the nation’s poorest communities kept improving amid a time of historically low mortgage rates, high buyer demand and tight supplies of homes for sale. In another ongoing sign of strong growth, prices spiked at least 25 percent from the first quarter of 2021 to the same period in 2022 in a larger portion of Opportunity Zones than in other neighborhoods around the country. Opportunity Zones are defined in the Tax Act legislation as census tracts in or alongside low-income neighborhoods that meet various criteria for redevelopment in all 50 states, the District of Columbia and U.S. territories. Census tracts, as defined by the U.S. Census Bureau, cover areas that have 1,200 to 8,000 residents, with an average of about 4,000 people. Prices inside Opportunity Zones remained on an upward track during the first quarter of 2022 as a decade-long price boom in the United States kept boosting markets throughout the U.S. Those included lower-income communities that have become more appealing as many buyers have gotten priced out of more-expensive neighborhoods. “With so little entry level inventory on the market, homes in Opportunity Zones represent some of the few remaining affordable options for prospective homebuyers,” Sharga added. “This is especially important for first-time buyers, who typically have to stretch their finances in order to be able to afford a home.” Both the overall housing market and Opportunity Zones are facing headwinds today that didn’t exist a few months ago, as mortgage rates have risen to 5 percent, the stock market has fallen, and consumer price inflation is at a 40-year high. But those uncertainties have yet to stifle price growth. High-level findings from the report include: Median prices of single-family houses and condominiums rose from the fourth quarter of 2021 to the first quarter of 2022 in 2,617 (55 percent) of the Opportunity Zones around the U.S. with sufficient data to analyze, and increased from the first quarter of 2021 to same period this year in 3,529 (78 percent) of those zones. By comparison, median prices rose quarterly in 58 percent of census tracts outside of Opportunity Zones and annually in 80 percent. (Among the 5,092 Opportunity Zones included in the report, 4,722 had enough data to generate usable median-price comparisons from the fourth quarter of 2021 to the first quarter of 2022; 4,550 had enough data to make comparisons between the first quarter of 2021 and the first quarter of 2022). Measured year over year, median home prices rose at least 20 percent in the first quarter of 2022 in 2,231 (49 percent) of Opportunity Zones with sufficient data. Prices rose that much during that time period in 44 percent of other census tracts throughout the country. Typical single-family home values in 55 percent of Opportunity Zones increased from the first quarter of 2021 to the first quarter of 2022 by more than the jump in the overall national median home price. Nationally, the figure rose 16.6 percent, year over year. Measured quarterly, prices in Opportunity Zones increased at a slower rate than in most of 2021. But 52 percent of zones still saw larger quarterly improvements from late 2021 to early 2022 than the national uptick of 1.7 percent. Among states that had at least 25 Opportunity Zones with enough data to analyze during the first quarter of 2022, those with the largest portion of zones where median prices rose year over year were in the West. They were led by Utah (median prices up, year over year, in 97 percent of zones), Arizona (97 percent), Nevada (93 percent), Oregon (88 percent) and Florida (87 percent). Of all 5,092 zones in the report, 1,807 (35 percent) still had median prices in the first quarter of 2022 that were less than $150,000 and another 779 (15 percent) had medians ranging from $150,000 to $199,999. Median values in the first quarter of 2022 ranged from $200,000 to $299,999 in 1,092

by admin
Comment Off
580 views

Security Deposit Insurance Offered in Two Million Homes Rhino, the leading real estate technology company and pioneer of security deposit insurance, announced that their innovative solution is now offered in more than two million homes nationwide. In the process of reaching two million homes, Rhino saved American renters more than $700 million and increased their partner network to 6 million homes. America’s leading housing providers, including Highmark Residential, UDR, Invesco, Peak Living, Towne Properties, Monarch, and Brookfield, have partnered exclusively with Rhino, motivated by a seamless customer experience that integrates effortlessly with their property management systems. The recent addition of two multifamily housing operators, Tide Equities and HomeRiver Group, to Rhino’s partner network of over 2,500 local, regional, and national property owners made the 2 million home milestone possible. “We’re excited to offer Rhino’s security deposit insurance to our residents in certain markets because it increases the affordability of renting while also helping to secure our portfolio, offering more protection and reduced administrative burden compared to traditional cash deposits,” said Andrew Napurano, Chief Operating Officer of HomeRiver Group. Last year, Rhino announced a $95 million investment round enhancing their reach to more property owners and renters and seeing 100% year-over-year growth in units. As housing costs increase nationwide, Rhino is bringing renting into the future with their security deposit insurance, renters insurance, and other innovative solutions in their product suite. “At a time when housing costs are increasing to unprecedented heights, the cash security deposit is simply too burdensome for many renters and becoming more outdated by the day. Rhino is committed to modernizing the rental experience, making it easier for both property owners and renters,” said Paraag Sarva, Rhino co-founder and CEO. “Thanks to our growing partnerships with property owners throughout the nation, millions of renters now have the choice to use Rhino’s security deposit insurance, helping them access new homes at a lower cost.” About Rhino Rhino was founded to give renters everywhere greater financial freedom to plan and enjoy their lives. We eliminate the need for traditional security deposits by replacing them with smart, affordable insurance so renters can maintain control of their cash. Instead of a large upfront cash security deposit, renters pay Rhino a small monthly fee, and Rhino insures the property owner for damages that might occur and lost rent. To date, we are offered in over 2 million homes with a 6 million home partner network, and we have saved renters over $700 million in cash.

by admin
Comment Off
443 views

Leading location intelligence provider brings data solutions to the digital real estate platform to empower users with added intelligence in the home buying and rental process Local Logic, a location intelligence provider that quantifies location at scale to shape smarter developments and more sustainable cities, announced a strategic partnership with Wahi, a digital real estate platform that uses tools, information, and experiences to improve the real estate journey for consumers and realtors. With this partnership, Local Logic integrates neighborhood data into Wahi’s consumer-facing experience. Local Logic enables Wahi to offer users an intimate understanding of location without having to search multiple sites. The location data includes demographics, local profiles, local scores, points of interest API, and school data. Additionally, Wahi receives an exclusive license that includes text data 66% unique to Wahi, supporting high SEO value. This partnership will drive traffic and create a more engaging customer search experience on Wahi. “We are very excited to partner with Local Logic to use the power of technology to bring truth and transparency to the home buying journey. Wahi’s mission is to reclaim real estate by harnessing the power of technology in the service of truth and transparency. We do this by using real data to help people make their dreams come true. ” said Benjy Katchen, CEO of Wahi. Local Logic’s platform is the largest location intelligence platform in North America, incorporating more than 75 billion data points and 200 million properties across the United States and Canada. Through its proprietary Location Scores, Local Logic can quantify the inscrutable, ever-changing dynamics of consumer and renter demand. Examples of Location Scores include transit quality, access to restaurants, and quietness. “There’s plenty of information available during the home buying experience about the property in question, but there’s not usually a ton of information on the area outside of the four walls it’s made of,” said Vincent-Charles Hodder, CEO at Local Logic. “At Local Logic, we’re laser-focused on empowering home buyers and investors alike with pertinent information about the area surrounding a potential property to ensure that all the boxes are checked for such an important decision.” Local Logic partners with companies both within the residential and commercial industries, providing data about every aspect outside the four walls of a property. Through this approach, the company seeks to provide a means for more intentional and intelligent urban planning. For more information on Local Logic’s solutions, please visit locallogic.co About Local Logic Local Logic is a location intelligence platform that digitizes the built world for consumers, investors, developers, and governments – delivering unrivaled clarity and actionable insights capable of creating more sustainable, equitable cities. With more than 75 billion unique data points – the largest unique location data set in the U.S. and Canada – the platform creates a digital twin of cities, quantifying the built world and offering predictive, precise analytics to inform the present and future of over 250 million individual addresses.

by admin
Comment Off
549 views

PURE Institutional Management responds to the growing demand for dedicated services that reduce the complexities and costs of managing institutional portfolios PURE Property Management, the fastest growing residential property management and technology company in the U.S., announced the launch of PURE Institutional Management, a dedicated division to service institutional investor clients and their residential portfolios across multiple locations within PURE’s rapidly expanding national footprint. “Institutions managing portfolio investments are challenged with complexity, inconsistency, and cost,” said Joseph Polverari, PURE’s co-founder and general partner. “Our flexible and tech-enabled property management services optimize for simplicity, consistency, and intelligence. This reduces cost and grows value at scale.” Portfolio managers face inconsistent and inflexible service options from having to engage with multiple independent property management providers across various locations. PURE provides best-of-breed high-tech, high-touch, and hyperlocal property management services consistently across multiple geographic locations and can scale as needed. PURE’s leaders and property managers have over 1,000 years of combined property management experience. “We worked with Skyline Properties in Atlanta and AHI Properties in Birmingham and Huntsville,” said Amir Peleg, founder and partner at Safe Future. “After Skyline and AHI joined PURE, we were introduced to PURE’s greater team and grander vision. We were immediately impressed with how focused they are on understanding our specific needs. As we continue to expand our new home development across the U.S., PURE Institutional Management will be a valuable growth partner.” Safe Future has developed more than $300 million in properties and is currently involved with over 2,000 properties in the U.S. With a vision to make the process of renting a home a simple and satisfying experience for all, PURE launched in October 2020 to quickly become one of the largest and most tech-forward residential property management companies in the U.S. PURE manages over 15,000 single-family residences on behalf of individual and institutional investors and operates in over 50 cities and metropolitan areas within 16 states. The company expects to operate in 25 states by end-of-year. PURE recently closed a $50 million financing which values the business at over $300 million. The financing is aimed at accelerating acquisitions of leading independent property management companies across the U.S. while increasing its commitment to tech-enabling its people and processes to deliver exceptional investor and resident experiences. “We’ve completed 35 acquisitions and many of those came with previously established institutional clients seeking simplicity and consistency,” said Michael Catalano, PURE’s co-founder and general partner. “The industry is highly fragmented and consolidation leads to consistency. Our ‘band-together-build-together’ mission resonates with seasoned owners of property management companies who share our ‘from-the-industry-for-the-industry’ mantra and are enthusiastic about our collective aim to improve and simplify the experience of renting a home.” Acquired property management companies and their employees enjoy greater benefits and career growth opportunities. Their experience and local market expertise are “upwardly mobile” within a culture of collaboration. PURE deploys scalable technologies while optimizing business processes and workflow automation to enable acquired operators to grow their services capability to drive increased value for investors, institutions, and residents. About PURE Property ManagementPURE Property Management is the fastest growing profitable residential property management and technology company in the U.S. Led by a team of experienced industry professionals and seasoned technology innovators, PURE acquires residential property management companies and invests in their people and processes. By deploying technology and providing operational efficiencies, PURE creates simple and satisfying experiences for residents and investors, including institutional portfolio managers. For more information, visit https://purepm.co