Daily Update

Reasons for a Down Housing Market by 2020

Reasons for a Down Housing Market by 2020

These should be happy times for the housing industry. The market is booming, with more people working at higher pay, and with the large millennial generation reaching prime home buying age.

Home prices haven't declined nationally, at least based on the most commonly followed indexes. However, their rate of growth has declined, and more and more home sellers are finding they need to reduce asking prices to discover a buyer.

Given how fundamental housing is to the wider economy -- it is the largest driver of both wealth and indebtedness for the majority of households, and its changes have regularly been significant factors in past booms and busts -- this recession is not something to be taken lightly for anybody hoping the good times will last.

An Infographic About Millennials

An Infographic About Millennials

Millennials suffer a lot of bashing, especially from property managers and landlords. Why? Well, they have the lowest percentage of home ownership, one of the highest percentages of rentership, and of course, the highest percentage of “living with the parents” versus every other generation.

One of the more startling figures in the below infographic is that average rent prices have gone from $500 in 2000 to $954 in 2018. That is almost double in less than 2 decades. The struggle is real, but the good news is that Millennials are hopeful for a brighter future.

Top 3 Picks for Up and Coming RE Markets, OKC Real Estate Boom, Widespread Rent Concessions,

Top 3 Picks for Up and Coming RE Markets, OKC Real Estate Boom, Widespread Rent Concessions,

There are 3 key metrics that Alexander Felice lays out in his most recent article for determining the Top 3 RE picks for up and coming markets.

  1. State growth: Picking to invest in states that re-invest in themselves is important. The more investment a state puts into growing its economy and its communities, the more likely your real estate investment is to pay off.

  2. Job diversity: Invest in markets with a wide breath of jobs. If there are only one or two major employers in the city, that can cause big problems for the real estate market when those employers hit a lull. Look for an array of employers and diversity in industry.

  3. Population growth: If more people are moving into a city, that means more opportunity for the real estate market. This is probably the simplest metric to gauge an up and coming market.

10 US States with the Worst Economy

10 US States with the Worst Economy

We posted about the 10 US States with the best economies, but what about the states that came in last in the rankings. We're giving them some love too. If you're interested in learning more about the methodology behind the ranking, please visit the link about and view our article on the 10 states with the best economies. Below we've rank the 10 worst performing economies starting with the most struggling and sluggish economy.

10 US States with the Best Economy

10 US States with the Best Economy

To identify the states with the best economies, 24/7 Wall Street reviewed:

  1. Average annual GDP growth between 2012 and 2017 from the Bureau of Economic Analysis.

  2. Poverty rate from the U.S. Census Bureau’s 2016 American Community Survey.

  3. Unemployment rate in June 2018 from the Bureau of Labor Statistics.

  4. Employment growth rates.

  5. % of adults with at least a bachelor’s degree.

The rankings also take into account state specific information like:

  1. GDP in 2017.

  2. Exports as a percentage of GDP.

  3. The homeownership rate.

  4. The median household income.

  5. Median home values.

  6. Uninsured rates from the U.S. Census Bureau’s 2016 American Community Survey.

Housing Market Cools, Home Prices Too High

Housing Market Cools, Home Prices Too High

The affordability of starter-homes has hit a decade low and Bloomberg says that the US housing market is cooling because prices are just too high. First time buyers need 23% of their income to purchase a home. Just a year ago that figure was 21%. The cost of these starter homes is the highest it has been since the housing bubble blew up back in 2008. 

4 Real Estate Tech Trends (and how to improve your business without buying into them)

4 Real Estate Tech Trends (and how to improve your business without buying into them)

It is difficult to predict which technologies and innovations are hype and which are built to last. However, it is much easier to identify the true consumer pain points that led to a new innovation on the marketplace. You don't have to buy into every latest technology fad in order to reap real benefits from keeping a pulse on new technology and trends in your industry. Here are 4 technology trends, startups, or products that are founded on ideas you can use to improve your business.

4 Tactics to Be More Efficient

4 Tactics to Be More Efficient

Nobody wants to fill their day with busywork. Everyone wants to be focused on the highest productivity activities throughout the day. That is the point of efficiency. Before we dive into the 4 proven ways to be more efficient, ask yourself, "What are the most meaningful things I can be working on to move my business forward?" Now, lets use these 4 proven methods to get you focused on that:

5 Takeaways from NAA Apartmentalize 2018

5 Takeaways from NAA Apartmentalize 2018

Artificial intelligence is paving the way for faster and more meaningful business intelligence. Every real estate operation needs to be using big data tools to understand the trends and opportunities in their specific business. As property management enterprises scale, there are operational inefficiencies that require deep data to solve. 

Housing in America: Market Status

Housing in America: Market Status

Fewer Americans are home-owners versus when the study was first published in 1988. That says a lot about the current state of housing in America. Nearly one-third of American households, or 38.1 million, paid more than 30% of their incomes for housing in 2016, making them “cost-burdened."

It has particularly been a hard on youth, no longer able to move out of the nest. In general, Americans are also staying in one place for longer as they are reluctant to move.

5 Things to Know Before Landlording

5 Things to Know Before Landlording

#1 Your Property Will Be Damaged: Tenants will not care for your property in the same way you do. That means, there will be damage. Way more than you ever expected. Prepare for it. Have a fund available for major fixes. Put in effort to do preventative maintenance because your tenant won't.

Daily Property Manager Update: Buy vs. Rent, Home Values, and Interviewing Tenants

Daily Property Manager Update: Buy vs. Rent, Home Values, and Interviewing Tenants

There are some hard and fast metrics you can use to ACTUALLY know if it is cheaper to buy than to rent in your MSA. Would you guess that it is cheaper to own in 17 out of the 33 largest major metro areas?

Buying is more affordable than renting when homebuyers are able to:

  1. Put 3.5 percent down on the property, often with help of down payment assistance programs.

  2. Meet eligibility requirements for those down payment assistance programs

  3. Qualify for a loan for a median-priced (or less expensive) home

  4. Cover mortgage insurance costs, which vary by loan

Quotes About RE Investing and a How-To On Skip Tracing

Quotes About RE Investing and a How-To On Skip Tracing

Nasar Elarabi gives us a full explanation of how to use skip tracing to find your next real estate deal here. Skip tracing can specifically be used to track homeowners that may not be occupying the homes they own. 

Skip tracing is a basic, but very effective concept to find property owners. The whole idea behind it is to get an alternate address for abandoned or vacant property owners whom you are having trouble finding.

Managing Risk and Investing in the Top Growing Markets for SFR, Condo, and Apartment

Managing Risk and Investing in the Top Growing Markets for SFR, Condo, and Apartment
  1. Competition is increasing grocery anchored properties.

  2. The middle class is disappearing and putting pressure on retailers to open more discount stores at low margins.

  3. Malls continue to evolve as increasingly mixed use.

  4. Amazon's acquisition of Whole Foods has not impacted the market yet.

  5. Retail REITs need to differentiate to protect themselves from retail fallout.

  6. Technology is key for survival but many property managers have been painfully slow at adopting it.