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☆ Rents are starting to fall across the US — and they're set to drop even more in 2023
▼ + stars: | 2022-10-28 | by ( Alcynna Lloyd | Jacob Zinkula | ) www.businessinsider.com time to read: +5 min

"Now — with a turbulent, unpredictable economy causing fear of recession, migrations are slowing, occupancy rates are falling and rent prices are following suit." Data from real estate database RealPage shows that in the third quarter of the year — a typically robust leasing period — rental demand turned "moderately negative" as leasing traffic plummeted. "The faster those things show up in consumer price inflation, the faster the inflation steps down, the sooner the Fed will back off." According to Zumper, more than half of the 100 US cities measured in its monthly national rent report posted month-over-month price declines in October. Lawler's analysis, as well as the recent rental market data, both suggest things are trending in the right direction.

☆ Even one of the biggest apartment landlords in the US is having trouble hiking rents as much as it did in the first half of the year
▼ + stars: | 2022-10-27 | by ( Kelsey Neubauer | ) www.businessinsider.com time to read: +4 min

The slowdown is affecting Equity Residential's over 79,000 units and clouding building valuations. Earnings reports show that average rents across Equity Residential's 79,594-unit portfolio rose by an average of just 1.7% last quarter, down from the 2.8% and 3.1% upticks in the second and first quarters, respectively. Meanwhile, the data shows that rents in many Texas and Florida cities, as well as a couple of key New England cities, keep rising. Meanwhile, in Boston, a scarcity of housing supply helped drive rents up 5.9% — making it the second most-expensive city to be a renter nationally. The deceleration in rent growth nationally is welcome news for renters who have had to cough up increasingly large chunks of their paychecks each month to their landlords.

☆ This chart shows just how out-of-control rent has gotten: The typical person has to work 64.2 hours just to pay rent — up from 56 hours just two years ago
▼ + stars: | 2022-10-25 | by ( Britney Nguyen | Madison Hoff | ) www.businessinsider.com time to read: +3 min

Demands for rental units are declining as housing costs soar with the price of essentials like food. The average renter in the US would have to work over 64 hours to afford rent, Zillow data shows. Phoenix, Orlando, and Las Vegas are among the metropolitan areas where demand is slowing the most. In metropolitan areas like Phoenix, Orlando, and Las Vegas, demand for rental units is slowing down the most, according to rental-data tracker RealPage. The good news, Tucker said, is that rent growth is "cooling off," and there are more rental homes that will be available.

☆ Online real-estate investment firm Fundrise is paying way over housing-market value for some build-to-rent communities. Here's why it says it's still a winning strategy.
▼ + stars: | 2022-10-24 | by ( Alex Nicoll | Lisa Kailai Han | James Rodriguez | ) www.businessinsider.com time to read: +14 min

Build-to-rent communities skip the intermediary and go straight to the homebuilder. While typical single-family rental strategies, pioneered by Blackstone in the aftermath of the Great Recession, are inherently tied to the housing market, build-to-rent is not. In the eyes of private equity, there's no difference between build-to-rent communities and apartment blocks. If you value Cypress Bay as an apartment building, instead of a collection of homes, Fundrise got a good deal. Fundrise is still working on deals, Miller said, with a deal pipeline stretching out to 2025.

☆ Plane crashes into New Hampshire home killing everyone on board
▼ + stars: | 2022-10-22 | by ( Hyder Abbasi | ) www.nbcnews.com time to read: +1 min

A small plane crashed into the side of a New Hampshire home killing everyone on board, officials in the city of Keene said late Friday. Unfortunately those on the plane have perished,” the city said in a Facebook post. The aircraft came down near the Keene Airport, the post said. Steve Tenney told the station that he did not have any information about the passengers and crew on board the aircraft, how many there were, or why the plane came down. The Federal Aviation Administration said in a statement that it would investigate the incident along with the National Transportation Safety Board.

☆ Blackstone's president, Jonathan Gray, says rental properties are still a smart investment as developers slash supply, keeping rents high
▼ + stars: | 2022-10-20 | by ( Kelsey Neubauer | ) www.businessinsider.com time to read: +3 min

Gray said this is good news for Blackstone, which has invested heavily in multifamily real estate. But as real estate isn't immune from the rising interest rates rocking most financial markets, multifamily investments that grew significantly last year are still facing headwinds. Jonathan Gray, Blackstone's president and chief operating officer, says there's no need to panic, though, given other economic factors now in play. He argued that demand for rental housing isn't going anywhere and that with supply further constrained, rents can continue to rise. Gray described rental properties as "beneficial" because it doesn't cost much to invest in them after they're built.

☆ Demand for Prefabricated Apartments Climbs as Costs Balloon for Multifamily Development
▼ + stars: | 2022-10-18 | by ( Rebecca Picciotto | ) www.wsj.com time to read: 1 min

A rendering of a dark, glass building from Assembly OSM that would be built in parts in off-site factories and later pieced together. Construction of prefabricated homes is ramping up and providing an alternative to traditional multifamily, where the construction process has slowed because of rising costs and supply-chain delays. Prefabricated construction, which includes modular, manufactured and mobile homes, has for years been used in lower-budget housing development. But with rising interest rates and higher prices for materials such as lumber, the process is starting to get more of a toehold in the mainstream apartment market.

☆ Conservatives love to blame America's housing crisis on Democrats. An economist explains the true reason behind it and why it extends beyond political parties.
▼ + stars: | 2022-10-17 | by ( Paul Constant | ) www.businessinsider.com time to read: +5 min

He recently spoke with economist and author Jenny Schuetz about the housing crisis. Pundits love to blame permissive social policies for the disrepair that they highlight, but the truth is that rural America — including many red areas — is facing the same problems of skyrocketing crime, housing costs, and homelessness. Schuetz said that a true solution to our housing crisis requires the passage of policy solutions at the federal, state, and local level. An overly regulated market and a broken tax codeBringing housing costs down and home supply up starts with stripping power from zoning boards. When the majority of homeowners and homebuyers treat housing as the foundation of their wealth, as opposed to one of the most basic human needs, the housing market behaves more like an investment market.

☆ Real-Estate Companies Grapple With High Interest Rate Hedging Costs
▼ + stars: | 2022-10-13 | by ( Mark Maurer | ) www.wsj.com time to read: +7 min

Banks and other lenders often require real-estate firms relying on floating rate debt to hedge their exposure with so-called interest-rate caps. Real-estate companies are struggling with cost increases for labor and building materials as well as slowing demand. The company since March recorded a significant increase in derivatives costs, Mr. Barnes-Smith said, but declined to provide specifics. The company held about $643.8 million in variable rate debt as of June 30, or a little over half of its total debt, Mr. Barnes-Smith said. “These hedging cost issues make something that’s already expensive even more expensive for companies,” Mr. Dhargalkar said.

☆ Consumer inflation expected to have run hot in September, boosted by rent
▼ + stars: | 2022-10-12 | by ( Patti Domm | In | ) www.cnbc.com time to read: +3 min

Stoked by rising rent costs, consumer inflation is expected to have remained hot in September but slightly lower than August's pace. Economists expect the consumer price index rose 0.3% in September, up from 0.1% in August, according to Dow Jones. "The core inflation is going to be higher so it's still an inflation that hasn't peaked yet in many ways. Economists expect that services inflation continued to run hot in September, due to rising wages and labor shortages. "We expect shelter inflation to slow to a 0.4-0.5% monthly pace by year-end and peak at around 7% year-over-year early next year."

☆ How Freddie Mac is helping renters use their on-time rent payments to build credit and achieve homeownership
▼ + stars: | 2022-10-12 | by ( Sponsor Post | Created Insider Studios With Freddie Mac | ) www.businessinsider.com time to read: +6 min

In this challenging economic environment, Freddie Mac has implemented two new initiatives that can help strengthen renters' ability to build credit and achieve homeownership using their history of on-time rent payments. Yet, unlike homeowners who make regular mortgage payments, renters generally do not see their on-time rent payments reflected in their credit scores. Worse yet, the most common way rent payments impact credit scores are when missed rental payments go into collection. After enrollment, the renter's on-time rent payments are reported to the credit bureaus each month. Since Freddie Mac began this initiative last year, 86,000 households across more than 900 multifamily properties have enrolled.

☆ Housing is slumping, but this real estate CEO explains why it’s not 2008 all over again
▼ + stars: | 2022-10-05 | by ( Paul R. La Monica | ) edition.cnn.com time to read: +4 min

New York CNN Business —Mortgage rates are soaring. And for many prospective home buyers, especially first-time purchasers, the combination of rising home loan costs and still sky-high real estate prices make the idea of purchasing a home prohibitively expensive…if not impossible. But don’t tell that to the CEO of real estate developer Howard Hughes Corp. In an interview with CNN Business, David O’Reilly said that he’s not too worried about another housing market crash and explains why. apartment buildings) but that they are “running away from retail, offices and hotels.”Weakness in commercial real estate is probably one of the main reasons why Howard Hughes (HHC), like the stocks of other real estate companies, has plunged this year.

☆ I binge-listened to tech podcasts for a week, and what I learned about Silicon Valley is kind of scary
▼ + stars: | 2022-10-04 | by ( Adam Rogers | ) www.businessinsider.com time to read: +19 min

2: The hosts don't know what they don't knowThe problem is, VC podcasts don't stick to the core issues of venture capital. 3: The hosts want us to believe what they don't knowThere's a shocking amount of this kind of drivel on the tech podcasts. This is what a good tech podcast should do: Use access to the best and most successful investors and innovators to illuminate the way Silicon Valley works. But that's not what matters in the world of tech podcasts. But after 40 hours of listening to tech podcasts, I feel kind of bad about it.

☆ Blackstone, Apollo brace for deteriorating commercial real estate market that one analyst says could lose 30% of its value
▼ + stars: | 2022-09-29 | by ( Kelsey Neubauer | Alex Nicoll | ) www.businessinsider.com time to read: +8 min

Year-over-year price growth has already slowed for commercial properties, signaling souring outlooks that could reduce values by 20 to 30%, the strategists wrote in a report. Executives at the Bisnow event pointed to high rents on multifamily properties, though growth is softening. Yardi"If this doesn't clear the market, then I don't know what does," Marcus said of her multifamily properties, which she described as large and relatively new. Andrew Holm, a cohead of US investments at Ares, the owner of more than $50 billion in commercial real estate, is hunkered down for the long haul, however. At the Bisnow event, he was so bearish on commercial real estate that he struggled to name a single sector that might be attractive over the next six months.

Parafin, launched in 2020, works with so-called platform partners, or companies that other small businesses sell their products through. All the cofounders knew was that they wanted to build technology that would help small businesses. And they may not get their first contract payment from the government for as long as 120 days," Reed, the startup's CEO, told Insider. Helping small businesses manage their taxesComplYant's founder Shiloh Jackson wants to help people be present in their bookkeeping. HoneyBookWhile countless small businesses have been harmed by the pandemic, self-employment and entrepreneurship have found ways to blossom as Americans started new ventures.

☆ The pandemic's real estate jobs boom is turning into a bust as layoffs hit
▼ + stars: | 2022-09-24 | by ( Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms Shannon-Pettypiece-Circle-Byline-Template.Jpg | Shannon Pettypiece | ) www.nbcnews.com time to read: +7 min

Some of the biggest players in the real estate industry, including RE/MAX, Redfin and Wells Fargo, have announced layoffs in recent months totaling thousands of jobs. Over that period, 200,000 people became real estate agents, according to data from the National Association of Realtors. Workers in the mortgage industry have been among the hardest hit as demand for refinancing and home sales tumble. Real estate brokers have also been affected, said Ken H. Johnson, a former real estate broker who is now an associate dean at Florida Atlantic University, where he studies the real estate industry. Even in the best of times, it can be a struggle for new brokers to be able to make a full-time living selling real estate.

☆ Developers rush to convert run-down hotels and offices into shiny new apartments as the costs of new construction and borrowing money soar
▼ + stars: | 2022-09-21 | by ( Robert Davis | ) www.businessinsider.com time to read: +7 min

Some real-estate developers are increasingly targeting offices and hotels for conversion into apartments because, they say, these projects are the only ones that make financial sense right now. The company spent a total of $14.2 million to acquire the properties, which Hubbard described as "on the run-down side." With conversions, developers are also hoping to capitalize on the increased demand for rentals as buying a home becomes less affordable. By extension, the value of office space is declining — making conversion projects more profitable when financing can be secured. The program includes zoning reforms designed to make the conversion projects easier and funding from the federal American Rescue Plan, the Pittsburgh Post-Gazette reported.

☆ Apartment buildings are all the rage in real estate, and property-management company DoorLoop says it's 'riding that wave.' Here's the pitch deck it used to secure $20 million in funding.
▼ + stars: | 2022-09-20 | by ( Kelsey Neubauer | ) www.businessinsider.com time to read: +2 min

DoorLoop, a proptech firm, provides property-management systems to landlords. property-management systems to landlords. DoorLoop, a proptech company that provides property-management systems to landlords, is finding itself in the right place at the right time. Alpine Software Group, a part of the private-equity firm Alpine Investors with a stake in the real-estate software company Homebot, provided the newest funding. DoorLoop, founded in 2019, sells its property-management software to both residential and commercial landlord customers.

☆ Goldman says own these frugal stocks with corporate profitability under siege
▼ + stars: | 2022-09-19 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

Corporate profits will continue to be crushed amid high inflation and Federal Reserv e interest rate hikes, according to Goldman Sachs. Already this year, profitability has weakened, with the S & P's ROE declining by 84 basis points in the second quarter. With that in mind, Goldman rebalanced its "ROE Growth" basket, which contains 50 stocks with the highest consensus expected ROE growth during the next 12 months. Charter Communications , Amazon and Nike were among those added to the basket, all with expected ROE growth close to 40%. Among the financial names new to the basket is Allstate , with an expected ROE growth of 28%.

☆ How a network in Salt Lake City is bringing experts together to address climate change issues in Utah
▼ + stars: | 2022-09-19 | by ( Erica Sweeney | ) www.businessinsider.com time to read: +7 min

Kazi Awal/InsiderSalt Lake City, Utah, is facing climate-related challenges like droughts and worsening air quality. The Utah Climate Action Network is bringing people together to seek solutions to these problems. To inspire climate-centric innovation, the organization helps facilitate the Utah Climate Action Network. The partnership was founded in 2016 between Salt Lake City, the University of Utah, the business community, faith organizations, and other groups, to foster a collaborative response to climate change. To spread the word about sustainability plans, Salt Lake City also partnered with Path to Positive Utah, Utah Clean Energy, and the Utah Climate Action Network on a training program to educate and empower climate leaders across sectors in the city.

☆ Renter activists crashed a DC landlords conference to protest 'corrupt greed' and rising rents
▼ + stars: | 2022-09-15 | by ( Alcynna Lloyd | ) www.businessinsider.com time to read: +6 min

More than 100 protestors gathered at the National Multifamily Housing Council's annual fall conference. On Tuesday, more than 100 tenant activists ambushed a national gathering of corporate landlords to demand that "lawmakers stop opposing tenant protections at the behest of real estate groups and developers." Chanting "down with corrupt greed" and "no more rent increases" activists stormed the hotel's halls, interrupting conference sessions to air their grievances with the nation's top multifamily developers. In the capital city of each of these states, rents have climbed by 13% and 4% year over year, respectively. "Without rent control, whether it's national, state or local, we're prioritizing profits at the expense of renters," she said.

Rents fell 0.1% in August, snapping a 20-month streak of increases, according to Apartments.com. Prices fell in 27 of the 40 cities tracked by the firm, signaling the recent price surge is broadly easing. Rents fell 0.1% through August across the US's biggest metropolitan areas, according to new data published by Apartments.com. Average rents fell 1.1% last month in Nashville, marking the largest one-month decline across the 40 cities tracked by Apartments.com. But as rental demand wanes, Americans may soon encounter a more affordable rental market.

☆ Student housing is one of the hottest real-estate investments right now. Here's how big investors like Blackstone and TPG are playing the market that just saw a record $6.1 billion of deals.
▼ + stars: | 2022-09-03 | by ( Kelsey Neubauer | ) www.businessinsider.com time to read: +7 min

The big investors TPG and the Cardinal Group made a bet on student housing in fall 2020. Investing in student housing seemed like an uncertain wager at best; no one knew when life would go back to normal. That's created an opportunity in niche asset classes, such as student housing, he added. The trend is not likely to end soon, with the cost of college housing on the same upward trajectory as tuition. With students, international and domestic, back at school again, student housing is hotter than ever.

☆ I make $6,500 a month in rental income. After wanting to invest for 20 years, I used a HELOC to buy my first investment properties.
▼ + stars: | 2022-08-26 | by ( Kimanzi Constable | ) www.businessinsider.com time to read: +8 min

Amanda Hammett, 43, is a public speaker, consultant, and real-estate investor in Atlanta, Georgia. One idea that kept coming to my mind was real-estate investing. It never felt like we had the mental space or time to give real-estate investing a real thought. The goal is to replace my income as a speaker and consultant with real-estate income, and I'm on track to reach that goal this year. Are you a real-estate investor who wants to share your story?

☆ As families and 'Parrotheads' flock to campgrounds and RV parks, institutional real-estate investors see their next big score
▼ + stars: | 2022-05-23 | by ( Alex Nicoll | ) www.businessinsider.com time to read: +13 min

Investors are eyeing profits in campgrounds and RV parks as Americans flock to the great outdoors. Camp Margaritaville RV Resort and Cabana Cabins Auburndale, Central FloridaThe trend is also driven by demographics. Sam Zell's Equity Lifestyle Properties, another large REIT that invests in RV parks alongside mobile homes, has also been busy. While it's not clear how much big investors have thrown into RV campgrounds, manufactured housing communities as a whole have seen a burst of Wall Street financing. After looking hard at multifamily and industrial, he settled with RV parks.

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