Status update 3-31-22: Tough Market for Buyers and Renters
Submitted Thurs, 03/31/2022
Steve Rattner, a New York investment asset manager, sums up the current housing and rental market in this segment of Morning Joe. Complete with supporting charts and statistics for perspective - A hot Real Estate market! (for some)
- Recently a substantial increase in interest rates. In the past three weeks interest rates went from 3.75 to 4.5 % - the fastest increase since 1987. For a typical $350,000 house your interest payments would go $1,180 to $1,400 a month just from this 3 week increase.
- Housing prices up 19% year over year, 11% just this past year and 32% over 2 years, while existing home sale inventory has gone down, and all time low (a result of the 2008 housing crisis). Average housing price went from 270k to 350k in the past 2 years.
- Half of all houses sold today are sold above the asking price.
- Rental prices have gone up 15% a year, An average rent of $1600 going to $1900 a month.
- The cyclical market will eventually stabilize, but not soon. Interest rates are still relatively low historically.
- Lumber, copper and building supplies prices have gone up increasing building costs for developers.
- People who own houses and who want to sell their house are in good shape, but new home buyers and renters are paying more.
- Personal financials are still negative for most people due to factors such as inflation and the pandemic.
📹 June 16, 2022 - 🔗 Companies buying homes & driving up rent.
Real estate investment groups are buying up an increasing share of houses and renting them out – in some cases to families who had dreamed of owning their own homes. According to one report, in January, 33 percent of all homes purchased in the U.S. were bought by investors. One family tells NBC News’ Antonia Hylton that the situation makes it challenging to save up and “get out of the renting game.” Proponents say rental companies are giving those who can’t afford to buy a home the option of living in a traditional house.6
Nov. 22, 2022:
🔗 'Easy to bully': A corporate landlord in Cincinnati is aggressive in trying to evict tenants, critics say9
By Gretchen Morgenson: VineBrook Homes has over 24,000 single-family homes in 18 states, including Ohio, Alabama, Indiana, Missouri and Mississippi, with mostly lower-income tenants... 9
Oct 10, 2022:
Jul. 27, 2022:
Citations and Further Reading:
- 📰 April 1, 2022 - Apartment rental prices surging in major U.S. cities Double-digit Single-family rents growth from December 2020 to December 2021: Phoenix 18.9% increase and Tucson 11.8%
- 📰 May 13, 2022 - How Private Real Estate Serves as a Hedge Against Inflation Private real estate will fare better amid inflationary challenges.
- 📰 April 2022 - CONSUMER PRICE INDEX – APRIL 2022
- 📰 May 13, 2022 - How Multifamily Rents Stand Up to Inflation A study from Middleburg Communities takes a closer look at the correlation between rental prices and economic pressures.
- 📰 May 13, 2022 - Commercial Real Estate Is Seen as an Inflation Hedge, but That Isn’t Always the Case Investors purchased a record amount of commercial property and bet big on real-estate stocks last year, viewing the sector as a hedge against inflation.
- 📹 June 16, 2022 - Companies buying homes & driving up rent.
- 📰 Jul. 27, 20222 - How private equity firms are increasing U.S. rent prices Private equity firms play a major role in fueling the rise in housing costs nationwide.
- 📰 Oct 10, 2022 - Mesa tightening the reins on short-term rentals. Mesa City Council will consider adopting new short-term rental rules. Archived on Issuu: Mesa tightening the reins on short-term rentals.
- 📰 Nov. 22, 2022 - 'Easy to bully': A corporate landlord in Cincinnati is aggressive in trying to evict tenants, critics say.