Where are the neighborhoods in America where the typical renter is throwing down $10k, $15k, or even $30k a month? While that does sound like quite a bit of coin, there are neighborhoods across the county where landlords are fetching those amounts. After all, nearly one third of Americans are renters and not owners. Leave it to Realtor.com to zero-in and locate these neighborhoods and then rank the top 10. To come up with their list, they pulled every two-bedroom rental on realtor.com (as of March 2019) and then calculated the median rent price for every ZIP code. To keep it even, they excluded ZIP codes with fewer than 12 listings and limited the ranking to no more than two neighborhoods per state (or else CA and NY would dominate).
“The math between renting versus buying is starting to lean toward renting,” says Dolly Lenz, a New York–based luxury real estate broker. “They can’t deduct as much on their taxes anymore—so it makes less sense to buy.
A new report Bankrate.com says that nearly half of millennial homeowners had regrets about their home purchase. Bankrate says that, overall 44% of homeowners had regrets about their purchase while 56% did not. Unexpected maintenance or other hidden costs were listed as the largest item.
“When you buy a house, you can’t call the maintenance company or a landlord to fix major issues; it’s all on you,”…adding that these expenses — needing a new air conditioner, furnace or water heater, for example — often take first-time buyers by surprise. “I always advise homebuyers to create savings buckets and open a savings account that can collect interest that’s set aside specifically for housing repairs.” Says Luis Rosa, a certified financial planner in Henderson, Nevada.
Sunday, April 21st is Easter…Each year it falls on the first Sunday following the full moon after the vernal equinox. In other words, the date fluctuates each year between March 22 and April 25. Today’s infographic from the datavizblog.com takes a look at “Easter by the Numbers” all the way from the resurrection of Jesus Christ to the number of chocolate Easter bunnies consumed annually. So…..Happy Easter and Happy Friday!!!
Easter is a Christian holiday that celebrates the belief in the resurrection of Jesus Christ. In the New Testament of the Bible, the event is said to have occurred three days after Jesus was crucified by the Romans and died in roughly 30 A.D. The holiday concludes the “Passion of Christ,” a series of events and holidays that begins with Lent—a 40-day period of fasting, prayer and sacrifice—and ends with Holy Week, which includes Holy Thursday (the celebration of Jesus’ Last Supper with his 12 Apostles), Good Friday (on which Jesus’ crucifixion is observed), and Easter Sunday. Although a holiday of high religious significance in the Christian faith, many traditions associated with Easter date back to pre-Christian, pagan times.
We’ve been talking a lot about Opportunity Zones and you will undoubtedly hear more about them going forward. A new report by Yardi takes a look at the tax incentives for investing in the 8,700+ opportunity zones across the country that were created by the tax reform passed by Congress in 2017. Yardi says there are roughly 1.9 million multifamily units, 960 million square feet of office space and 180 million square feet of self storage space that are either in place or under construction in these opportunity zones. They say the “opportunity is enormous” as there is a huge incentive for real estate investors – especially in low-income areas. Indeed…
“The heart of the program is an incentive to reinvest capital gains, which must be placed in a qualified “opportunity zone fund.” Funds can be single- purpose vehicles or commingled. Shareholders who keep their investments for five years will pay no taxes on 10 percent of the investment’s gains. After seven years, 15% of the gains will not be taxed. Shareholders who hold opportunity zone investments for 10 years can avoid paying taxes on all gains. Among the qualified investments are real estate, businesses and infrastructure.”
We recently posted about how mortgage delinquency rates were the lowest in 20 years and that potentially means fewer foreclosures for home flippers. However, in a recent special report about flipping, CoreLogic says that flipping rates are actually near historic highs, but flippers are “playing a different game.” To come up with this theory, CoreLogic took a deep-dive into home flipping by investigating flipping rates nationally and across the country’s metro areas. They also estimated the gross economic returns to home flipping and tested to see what factor is most correlated with such returns.
“…we also find that flipping rates vary sharply across the country, tending to be highest in sunbelt metros and lowest in rustbelt metros, although the dichotomy doesn’t fit perfectly. For example, eight of the top ten metros with the highest flipping rate in the fourth quarter of 2018 were in the Sunbelt…”
According to the latest Yardi Matrix, U.S. multifamily rents rose slightly in March, coming in at $1,430 with year-over-year growth dropping slightly to 3.2%. Yardi says that market dynamics continue to be healthy almost everywhere.
“The dynamics continue to be healthy almost everywhere. That gives investors a choice between potentially higher growth and higher yields in faster-growing, less-liquid markets, or slower, steadier growth in larger, more liquid markets.”
According to recent data from the Joint Center on Housing Studies (reported by Mortgage News Daily), $425 billion was spent nationally in 2017 on home maintenance & improvement – representing a 10% increase from 2015 and more than 50% from the 2010. In addition they report that nearly 80% of America’s housing stock is at least 20 years old with twice that share of homes having been built 50 or more years ago. They say that since new construction is still well behind its pre-recession levels older home have been remodeled in greater numbers.
“The foreclosure crisis left many homes vacant for extended periods and there was also widespread conversion of owner-occupied housing to rentals. As homeownership demand started to recover, the number of vacant or rental homes moving back into owner occupancy has grown, increasing from 5.0 million in 2010 and 2011 to more than 6.6 million in 2016 and 2017…”
According to recent analysis from the U.S. Bureau of Economic Analysis, the digital economy accounted for 6.9% of the U.S. gross domestic product (GDP) in 2017, amounting to $1.35 trillion. Interestingly, as noted in the chart below, “real estate and rental & leasing” had the largest share of the nation’s GDP. The GDP is the value of the goods and services produced by a nation’s economy less the value of the goods and services used up in production. The GDP by industry, or value added, is a measure of an industry’s contribution to overall GDP. According to the BEA’s initial estimates, the digital economy was an engine of GDP growth throughout the period these statistics cover especially when you consider it supported 5.1 million jobs (3.3 percent of total U.S. employment) – about the same share as the transportation and warehousing industry’s share.
We recently posted that there are 34 states (and D.C.) ithat allow medical marijuana usage with at least 10 states (and D.C.) having some form of legal recreational use. Now we’ve come across a recent post from data-wrangler Statista where they report that, in 2018, the U.S. added over 64k full-time jobs (a 44% over 2017) into a growing $10 billion per year marijuana industry. In addition, they cite a study by cannabis website Leafy that says there are an estimated 211k people full-time employees in the industry with another 100k jobs indirectly depending on it. Is this America’s “hidden job boom?” Indeed…
According to new research from Zillow, real estate investors appear to be flocking to Opportunity Zones. Their data show that areas designated as Opportunity Zones saw a surge in sale prices since that designation was made, which they say is an early sign that investors are eager for the tax breaks. Interestingly, they said that Census tracts that were eligible but were not chosen as Opportunity Zones saw a slowdown in sale price appreciation, while prices in designated Opportunity Zones grew by more than 20% annually. Indeed…
“It’s still early, but we’re already seeing some signals that folks have begun to take up Uncle Sam on this offer,” said Zillow Policy Advisor Alexander Casey. “The rationale behind the zones is relatively simple. Proponents argue that a lot of the money generated as capital gains could be used as seed money in traditionally neglected communities – revitalizing infrastructure, fueling economic growth, and spurring job creation and overall prosperity. But whether this tax break will direct funds to the communities that need them the most – or what happens when money arrives – remain open questions. But what’s clear in the meantime is that among the vast array of neighborhoods selected as Opportunity Zones we’ve witnessed wildly different housing market trends up to this point, which might hint at the future of these communities.”