This video shows an example of the scams that are happening in our business. Potential tenants need to be very careful what they are renting and how they respond to ads.
In more homes, the roof overhead is rented
Many metro areas have seen significant increases in rented single-family homes since 2006, Census Bureau data shows.
In the aftermath of a historic housing bust, rented single-family homes are on the rise in communities from coast to coast.
At least a fifth of all occupied single-family homes were rentals last year in 32 of the nation’s top metropolitan regions, according to a USA TODAY analysis of U.S. Census Bureau data. That’s up from seven metros in 2006.
The growth reflects changes brought by the housing boom and bust and the enduring financial hardships imposed by the recession. Millions of homeowners lost homes to foreclosure and were forced to become renters, while others delayed homeownership.
Nationwide, 18% of occupied single-family homes last year were rentals, up from nearly 15% in 2006, show data based on the American Community Survey, an annual Census Bureau survey.
The metros with the most growth in single-family rentals are those where foreclosures were most rampant.
Among them were Las Vegas, where almost 29% were rentals, up more than 10 percentage points from 2006.
Florida’s Cape Coral area was more than 25%, another 10-point gain.
Stockton, Calif., was about 24% in 2006 — now it’s above 32%, the highest share among the 100 metro regions in USA TODAY’s study.
Metros outside the top foreclosure hot spots have also seen larger growth in single-family rentals than the national average, including Memphis, Dallas, Denver and Seattle, the data show.
In those metros, more homeowners may be turning homes into rentals to meet strong demand, says Svenja Gudell, Zillow economist.
Single-family rents in Denver were up 5.6% in August year-over-year, vs. a 1.9% national rise, Zillow data show.
“There are a lot of folks who’ve decided to rent homes out, vs. sell,” says Kim Klapac, Colorado Springs Realtor.
City officials say they prefer rented-out homes to vacant ones, which lead to blight. In many cases, today’s single-family home renter lost a home to foreclosure.
“There’s a lot of good-quality renters out there,” says Micah Runner, interim economic development director in Stockton. “The issue can be when the homes are owned by people outside of the area and it’s harder to get them to fix stuff.”
More rentals may also lead to more classroom turnover in local schools, because renters tend to move more often than owners, says Southern California research economist John Husing.
Wealth generation will also be affected, says Michael Orr, real estate expert at the W.P. Carey School of Business at Arizona State University.
“A good slice of our owner occupants have become tenants against their will. That’s not a good thing,” Orr says.
Phoenix was one of the first cities targeted by institutional investors, who are spending billions turning single-family homes into rentals alongside mom-and-pop investors.
Since Phoenix home prices bottomed in 2011, they’re up about 40%, according to Standard & Poor’s Case-Shiller data. That makes it harder for owner-occupants to now buy in, Orr says.
I posted this on my blog Random Thoughts. I thought it was important enough to copy to my Crossroads site as well.
In my business as a property manager, I have the opportunity to witness first hand many economic issues as they are happening. Between 2003 and 2008, I saw tenants buying homes that should have never qualified for financing. I saw property values soaring to unheard of prices. I saw investors buying and selling properties inflating numbers with the help of loose financing deals.
When the economy hiccups, tenants lose jobs and can’t pay rent. When the economy tanks, they move out, break their lease, and move in with Mom and Dad.
Here is what I am seeing now: Nearly every applicant looking to rent has student loan debt. This wouldn’t be so scary if the debt was tied to an education that led to a professional career. But these don’t. These are loans taken out by people trying to advance in some field but they end up back in a…
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Home price gains slowing as market recovers
Experts say slowing gains in home values are a healthy sign for the housing market’s continued recovery.
Home price gains are slowing after a strong bounce off the bottom, potentially marking a new phase for the housing recovery.
Home values aren’t rising as fast as they were and even dipped in a few hot markets in September, according to Zillow. More homes are coming on the market, and Realtors report less competition among buyers.
“It’s a market in flux,” says Sherry Chris, CEO of Better Homes and Gardens Real Estate. “We are in year two of a long-term recovery, and there will be bumps.”
Home value gains are a key indicator of a market shift.
U.S. home values were up 1.2% in the third quarter from the second, Zillow data show. That’s down from a 2.5% jump in the second quarter from the first.
In September, values dipped about 1% from August in Los Angeles and San Diego — the first notable month-to-month drop for those markets since the recovery started, Zillow says.
All told, half of 30 major metropolitan areas covered by Zillow saw values fall in September from August, seasonally adjusted numbers show. Earlier this summer, all the same metros were seeing month-to-month gains.
More markets are likely to see declines this month, too, says Svenja Gudell, Zillow chief economist.
Home values were flat or slightly up in September from August in Washington, D.C., Miami and Atlanta, Zillow’s data show. But growth has slowed in the metros each month since July.
In Atlanta, for instance, July values were up 3.1% from June. But September saw only a 0.7% bump from August, after being adjusted for seasonal factors.
While down, that’s still rapid appreciation. Historically, homes have appreciated an average of 0.3% a month, says Jed Kolko, Trulia economist.
“It’s not like prices are falling off a cliff. They’re just slowing to a more sustainable pace,” Guddell says.
Fewer investor buyers and more inventory are two key factors affecting prices.
The number of existing single-family homes for sale in August was up 5% from January, seasonally adjusted, Kolko says. Meanwhile, higher prices have dampened investor activity, leaving more homes for regular buyers, he says.
While popular homes got 10 to 15 offers several months ago, two to three are more likely now, says Better Homes’ Chris.
Slowing price gains should lessen fears of housing bubbles in some markets, including in California, Zillow says. Homes are also taking longer to sell in some California markets.
Homes spent a median of 28 days on the market in Oakland, in September before being sold, up from 14 days earlier this year, reports Realtor.com, which tracks 146 markets.
Rising prices have created more sellers. “The market is still strong,” but hitting more of an equilibrium between buyers and sellers, says Errol Samuelson, Realtor.com president.
Please take a look at my book “Why I don’t invest in real estate”. Stories and input from being a property manager for 30+ years. Available on Amazon and Kindle.
The war on renters
Attorney, The Institute for Justice
Ever rented an apartment or a house? If so, you were a “social problem.” You undermined the health of your community. You caused crime and created nuisances. The fact that you did not actually commit any crimes, vandalize property or fail to pay the rent is irrelevant. Simply by being a renter you degraded the neighborhood.
This is the view of many city governments today. To them, renters are a group of second-class citizens, not people who simply rent their homes instead of own them.
In city after city across the country, governments are ratcheting up the regulation of renters and rental property. This is not traditional regulation of landlords, mandating that they treat their tenants fairly and respond to their safety needs. The regulation is ultimately directed at renters themselves. And it is frequently unconstitutional.
The government also places unreasonable restrictions on landlords.
For example, in some cities in Minnesota only a small percentage of homes on a block can be rented out. West Saint Paul, Minnesota bans homeowners from renting out their homes if ten percent of the homes on the block are licensed rental property. Rental bans like this can force homeowners to go into foreclosure when they have to move and can’t cover their mortgage without a renter. And fewer rental properties, in turn, can lead to higher prices and less availability. These cities don’t care that the law violates the centuries-old right to rent out property because, to them, renters are simply bad.
These laws and other regulations discriminating against renters and their landlords raise serious problems about treating people equally. Some cities fine landlords after a certain number of police calls to a property, even if the calls are for completely different households. Owner-occupants are not similarly fined. Some cities require landlords to take extensive all-day “crime control” classes before they rent their properties out because of the trouble their tenants might create. Owner-occupants, it goes without saying, can move into their homes without this training. Again, tenants are suspects, owner-occupants are not.
No matter how hard the government works to make it harder for landlords and their tenants to exist, renters aren’t going anywhere. Renting is normal. One third of all Americans rent their homes instead of owning them. Renters aren’t just college kids and ex-cons. Safe and responsible people everywhere of all ages and income brackets have perfectly good reasons for renting. Just because some people choose to send their monthly housing payments to a landlord instead of the bank does not mean there is something wrong with them.
Local governments should do the old-fashioned constitutional thing and treat renters like individuals, not as some kind of social problem. Some commit crimes and some have loud parties. So do other people who happen to own their homes. Most of both groups do not. Deal with those actually harming others and let everyone else be free to rent or buy without obtrusive government regulations.
Anthony Sanders is an attorney with the Institute for Justice.
If you are interested in urban real estate, this is worth the watch. Very interesting where this city was , is and where it may be going.
DETROIT (WWJ) – Detroit’s bankruptcy and financial problems will be highlighted for a national audience this weekend.
“60 Minutes” is scheduled to air a segment on Detroit this Sunday.
“When something really powerful hits a city, like [Hurricane Katrina] in New Orleans, the federal government is all over it,” said Correspondent Bob Simon, speaking live Friday on WWJ Newsradio 950. “The federal government comes in with all its emergency money and equipment.
“But since the decline of Detroit took so long, it doesn’t get the attention it deserves,” Simon said, “and a lot of people we talked to were pretty angry about that.”
Simon shared his first impression of the Motor City.
“Downtown Detroit looks like a thriving American city,” he said. “It doesn’t have much retail yet, but that’ll come.”
“It’s just, as we all know, you drive five minutes out of town and you’re in another world,” Simon added. “I’ve…
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