The Housing Market Correction
Low supply and strong demand will limit the extent home prices depreciate. If our forecast for Fed rate cuts is realized, mortgage rates are likely to fall slightly, which will spur an improvement in sales activity and reignite home price appreciation heading into 2024.
Nationwide Debate Over Moratoriums and Good Cause Evictions
Good cause eviction legislation has been gaining momentum in recent months, especially in New York state. Since last summer, four upstate cities have passed good cause eviction laws, including Albany, Poughkeepsie and Newburgh. Meanwhile, smaller towns like New Paltz, Kingston, and Hudson are also considering passing similar bills.
2020 Mid-Year Multifamily Outlook
The vast majority of apartment properties are performing well despite the crisis caused by the coronavirus; however, that may change if lawmakers do not renew or replace the programs supporting millions who lost jobs or income, according to mid-2020 forecasts from economists at three apartment market research firms.
You Asked: Single Family Rentals
INSIGNIA loves working with investors in single family rental (SFR) properties (single family, townhouse, condo, 2-4 unit) due to their defensive nature and durable moat. Given the late stage of the market cycle, we are seeing a focus on affordable housing since investors largely believe this sector will outperform higher class housing in a recession. Multifamily investing is an excellent strategy, but requires a little more sophistication and capital when done properly.
Single-Tenant Net-Lease Market Firing On All Cylinders As Cap Rates Hit Historic Lows
Competition among investors for single-tenant net-lease properties intensified last year, sending cap rates down to historic lows, and the widespread eagerness to buy in this market may not slow down in 2020, according to a Q4 net-lease report by Wilmette, Illinois-based The Boulder Group.
SFR Investors Plan to Step Up Acquisitions in 2020
With strong rental growth and lower interest rates, the time looks favorable for acquiring more single-family rentals.
Americans are Moving Less According to US Census Bureau
Correlation to higher percentage of long-term renters for real estate investors in single family and multifamily rentals.
Fewer than 10% of Americans moved to new places in the 2018-2019 year, the lowest rate since the Census Bureau began tracking domestic relocations in 1947.
Why it matters: Despite a strong economy, more people are feeling locked in place. Young adults, who have historically been the most mobile, are staying put these days thanks to housing and job limitations. So are aging adults who are reluctant to (or can’t afford to) make a move.
Four Trends in REI To Watch For In 2020
2020 will be an especially challenging time for investors because the economy is slowing, trade wars could drastically affect specific localities, and some of the hottest real estate markets are already cooling down.
The High-Earning Renter Segment is Growing Fast
The higher-earning renter household ($100K annual earnings) is the “fastest growing segment of the U.S. housing market.”