Choose your path
During the 10-year period from 2010-19, single-family housing production in the U.S. totaled just 6.8 million units compared to 12.3 million units the previous decade, the National Association of Home Builders reported Jan. 6. That level of production was the lowest in 60 years, and is primarily attributed to supply-side headwinds and reduced affordability.
The value of owner-occupied homes in the U.S. hit a record $29.2 trillion in the third quarter 2019, up 4.2% from the previous quarter, according to the Federal Reserve’s Flow of Funds report released Jan. 8, HousingWire reported. The overall value of U.S. homes is now 21% higher than the bubble peak in 2006.
Owning a median-priced, three-bedroom home is more affordable than renting a similar property in 53% of the nation’s markets, according to the 2020 Rental Affordability Report released Jan. 9 by analytics firm ATTOM Data Solutions. The report showed that owning is generally more affordable in rural markets while renting is better in urban and suburban markets.
Minneapolis is the most popular city for millennial homebuyers, accounting for 56.2% of mortgage requests from January to November, online mortgage marketplace LendingTree reported Jan. 7. Buffalo, New York, and San Jose, California, were second and third on the list, respectively.
Fort Wayne, Indiana, topped the list of hottest housing markets for the sixth consecutive month in December, based on length of time that properties stay on the market and the number of online views they receive, Realtor.com reported Jan. 7. Half the 20 hottest markets are smaller, more affordable cities.
Rental prices increased in 38 states and the District of Columbia in 2019, with one-bedroom units up an average 4.1% nationally to $1,078 per month, according to rental site Abodo, Realtor.com reported Jan. 2. Detroit saw the greatest increase, with rents up 7.48%; Cleveland and Mesa, Arizona, were second and third on the list, respectively.
Mortgage rates fell to their lowest level in 13 weeks as investors turned to the safety of the U.S Treasury fixed income markets, Freddie Mac reported Jan. 9 in its Primary Mortgage Market Survey. Low mortgage rates and a strong labor market are expected to boost homebuyer demand.
Single-tenant net lease cap rates dropped late last year in the retail, industrial and office sectors, according to real estate investment firm The Boulder Group, MBA NewsLink reported Jan. 3. The retail sector dropped 14 basis points to 6.07%, the industrial sector was down five basis points to 6.90% and the office sector fell six basis points to 6.94%.
Commercial and multifamily mortgage originations are expected to increase this year, continuing the near-record pace set last year, the Mortgage Bankers Association reported Jan. 8 in its 2020 Commercial Real Estate Finance Outlook Survey. The survey noted that lenders remain “eager” to make loans.
Pot production is expected to significantly boost the industrial sector this year as investors seek higher returns than those available from traditional property types, according to real estate experts, National Real Estate Investor reported Jan. 6. Additional expectations: vacancies will remain historically low and demand for last-mile warehouse space will grow.
Pop up content here.