Housing Diversity Corporation’s Post

SIX TAKEAWAYS FROM AMERICA’S RENTAL HOUSING 2024 After an overheated 2021 and 2022, rental markets finally showed signs of cooling. Apartment rent growth peaked at a record-breaking 15 percent annually in the first quarter of 2022 before starting to decelerate. By the third quarter of 2023, rents grew by just 0.4 percent year over year. https://lnkd.in/gQ5pjAgZ #investingworld #realtyslices #realestatemarket #rentalproperties #annualreport

While the rental apartment market is currently seeing downward pressure on rents, the single-family rental market is back to a solid pace of rent increases. Market analyses by Hunter Housing Economics show that there is an increasing level of pent-up demand for built-for-rent single-family housing. #btr

Although apartment rents have declined in many market areas, single-family rents have held up better. The Corelogic single-family rent index, just released, shows national single-family rent growth remained stable; slower than the double-digit gains seen in recent years but generally in line with the annual rate recorded before the pandemic. #SFR #BTR #SingleFamilyRental #LendingOne #LendingOnePrivateClientGroup #RealEstateFinancing https://lnkd.in/eaiRxSqN

🏠📉 The Evolution of the American Home: A Shift Toward Affordability 📉🏠 In a significant turn of events, the landscape of the American dream home is transforming! The era of grand, sprawling estates seems to be giving way to a new trend: smaller, more affordable homes. 🛠️🏡 According to a compelling piece by Abha Bhattarai in The Washington Post, major homebuilders across the nation are adapting to market demands by constructing narrower houses that offer practicality without the hefty price tag. This strategic shift has brought the median new-home sizes to a 13-year low, standing at 2,179 square feet. 📏✨ The drive towards smaller homes isn't just about size; it's a crucial step towards making homeownership more accessible in today’s economy. With new-home prices seeing a 6% reduction, there's a glimmer of hope for first-time buyers previously sidelined by the steep climb in housing costs. 🏠💸 Townhouses, in particular, are stealing the spotlight, with their numbers in new constructions hitting record highs. By focusing on these compact, efficient designs, builders are opening the doors to affordability, without sacrificing the essence of homeownership. 🏘️🌟 For many Americans, like Nikki Cheshire from Frederick County, Virginia, State of West Virginia , the dream of owning a home is now within reach, albeit in a smaller package. Nikki's story of settling for a charming townhouse that fits her budget, and not to mention her dog, is a testament to the changing tides in the housing market. 🐶🏡 This trend reversal is poignant, especially when contrasted with the early pandemic days of luxury home rushes. However, as we navigate through the challenges of high interest rates and a pressing shortage of starter homes, it's clear that the shift towards smaller, more affordable housing isn't just a temporary blip; it's a necessary evolution. 🔄💡 The implications of this shift are far-reaching, promising to redefine what it means to own a home in America. Let's embrace this change, for it brings us one step closer to a future where homeownership is not just a dream for the few but a reality for many. 🌱🏠 #HousingMarket #AffordableHomes #AmericanDream #HomeOwnership #RealEstateTrends https://lnkd.in/gpTJn2TM

About two-thirds of the country's housing supply consists of single-family homes, with most being inhabited by their owners. However, a significant portion—16.6 percent—is rented out instead. Current construction trends indicate a growing preference for single-family rentals, hinting at their rising popularity as a housing choice in the future. Click on the image to read the full article! #alexhandley #remaxpreferredhomes # realestate #realtor #SingleFamilyHousing #HomeownershipTrends #RentalMarketInsights #HousingOptions #PropertyTrends #ResidentialRealEstate #FutureHousingPreferences  

In 2023, nearly 27,500 build-to-rent #houses were completed, an all-time high. What’s more, this was 75% more than the year before and triple the number in 2021. The number of single-family homes for rent built every year jumped from an average of 6,600 in the pre-pandemic years to tens of thousands of new units each year after that. https://lnkd.in/eEGUztcH

October Rental Market Update: National rents held steady, rising just 0.2% annually but dipping slightly month-over-month. East Coast and Midwest cities saw rent hikes—Virginia Beach up 11.7%, Washington, D.C. up 11.1%—while Sun Belt metros like Raleigh (-8.8%) and Tampa (-8.5%) experienced declines due to high new apartment supply. With construction slowing but ongoing, more rental options may offer relief in 2025, especially for those in high-supply markets. #RealEstate #RentalMarket #HousingTrends

Following a surge of over 1.2 million new apartments in the last two years, vacancy rates have recently stabilized as demand increases. This year, cities like New York and Los Angeles saw renewal rent increases averaging around 5%. As the pace of new developments slows in the coming years, it will be important to focus on ensuring that upcoming projects include affordable housing options. #housingcost #lahousing #housingcrisis

The rule of supply and demand shows that, when enough market-rate apartments are built, prices should go down, which should alleviate the need to implement certain artificial pricing metrics like rent controlled units. However, a recently study from the Federal Reserve Bank of Minneapolis shows that building new market-rate apartments frees up affordable housing in a different way: tenants leasing at the new buildings are upgrading and, when they move out of their former home, it's usually from more attainable housing that goes back to the market. Learn more in this interesting article from Bisnow. #housing #affordablehousing #freemarketeconomy #supplyanddemand #multifamily #realestatedevelopment #realestateinvestment #buyerrepresentation #rec_colorado

Whether it's in #Canada, the #USA or just about anywhere else, the story is the same with modifying #zoning regs being the only solution (assuming it's a problem): “Existing homeowners who can’t find what they want in the market, will buy an older home in an area of their choice and renovate or build their vision. We expect this trend will strengthen in the years to come and serve to drive price growth in single-detached housing even further. There are a variety of variables at play, but renovation and revitalization is having significant implications for housing supply and affordability.” #infill #realestate #newconstruction