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Why Women are Driving the Demand for Rental Apartments

Fri, 15 Feb 2013 23:38:27 +0000

No, according to a recent Raymond James report:

Renter household formation remains at the strongest level in decades. Roughly 1.32 million new renter households were formed in the past year (including owner conversions), while the number of owner-occupied households declined by 175,000. Resident turnover and move-outs to homeownership remain near historic lows for most operators. Incoming leasing traffic is more than offsetting move-outs while paying higher rates.

The home ownership rate declined yet again in the fourth quarter of 2012, according to a new report from the U.S. Census today. It now stands at 65.4 percent, down from 66 percent a year ago and from a high of 69.2 percent in 2004. If you include the 5.3 million borrowers who are delinquent on their mortgages or in the foreclosure process, per Lender Processing Services, the real home ownership rate is even lower.

“The fact that the housing recovery is being driven principally by investor demand means that the slight decline in the homeownership rate in the fourth quarter is unlikely to be the last,” notes Paul Diggle of Capital Economics.

(Read More: World’s Most Expensive City to Rent Is…)

There is also a tremendous amount of pent-up demand for the rental market, as nearly 23 million young adults, male and female, under age 35 (31 percent of the cohort) are currently classified as ‘living at home’ with parents, according to Raymond James’ analysis. As job growth improves, they will move to rental apartments; the homeownership rate for this group is only 34 percent.

(Read More: Rentals Chip Away at Home Builder Gains)

Investors are also concerned about a 49 percent jump in multi-family construction permits from a year ago, but those permits are still running well below normal levels, and every year about 150,000 units are removed from housing stock for various reasons, like age and damage.

Suffice it to say that the apartment sector and the multi-family REITs will likely see a surprise to the upside in 2013. Rents will still rise, despite housing affordability and growth in the single family market.

(Read More: Real-Estate Tips from a Mega-Broker to the Stars)

Article source: http://www.cnbc.com/id/100416547

Who’s Driving the Demand for Rental Apartments?

Wed, 30 Jan 2013 09:05:59 +0000

No, according to a recent Raymond James report:

Renter household formation remains at the strongest level in decades. Roughly 1.32 million new renter households were formed in the past year (including owner conversions), while the number of owner-occupied households declined by 175,000. Resident turnover and move-outs to homeownership remain near historic lows for most operators. Incoming leasing traffic is more than offsetting move-outs while paying higher rates.

(Read More: World’s Most Expensive City to Rent Is…)

(Read More: Rentals Chip Away at Home Builder Gains)

(Read More: Real-Estate Tips from a Mega-Broker to the Stars)

Article source: http://www.cnbc.com/id/100416547

Renter Nation Rages On

Sat, 28 Jul 2012 11:25:13 +0000

The supply of empty homes for rent is falling, and the nation’s homeownership rate is hovering near a fifteen year low.

How can that be when the housing market is finally turning around and more homes are selling?

The answer is simple: Investors.

The nation’s home ownership rate ticked up a statistically insignificant basis point, from 65.5 percent in the first quarter of this year to 65.6 percent in the second quarter, according to the U.S. Census Bureau. Q1 was the lowest home ownership rate since 1997 and is down from the peak of 69.4 percent in 2004.

Given that home sales improved significantly during the first half of this year, you would think that home ownership rate should have surged higher, but the rate is calculated using only owner-occupied homes. If an investor buys one home or 100 homes, those homes are not even put into the calculation because they owner doesn’t live in the homes. Realtors estimate around 20 percent of homes sales are currently to investors, but given bulk deals offered by the government and banks on foreclosed properties, that percentage is likely higher.

“The very modest increase in the homeownership rate in Q2 does not persuade us to alter our view that the share of the population who own their home will fall further over the next couple of years,” writes Paul Diggle of Capital Economics. “Meanwhile, supply conditions in the rental market are tightening, with a falling proportion of single and multi-family rental homes vacant.”

Rental vacancies in fact fell to their lowest rate since 2001. That is why so many investors are rushing in to buy distressed properties. The rental market his hot and getting hotter. Average asking rent rose 5 percent from a year ago, though they are down slightly from the previous quarter.

Since the peak of home ownership in 2004, six and a half million additional U.S. households are renting, which Diggle calculates is equivalent to 90 percent of the increase in total household numbers over that time. He estimates home ownership will fall to 64 percent over the next two years.

An investor-driven recovery in home sales is certainly positive and is helping to clear the huge backlog of distressed properties on the low end; investors are necessary now, but until real owner-occupants, including the all-important first-time home buyer, return, a robust recovery in all price tiers of the market will remain out of reach.

Questions? Comments? And follow me on Twitter @Diana_Olick

Article source: http://www.cnbc.com/id/48354027?__source=RSS*blog*&par=RSS

San Francisco Real Estate Agent, Paige Gienger of Coldwell Banker Real Estate …

Tue, 15 Nov 2011 11:55:07 +0000

Paige Gienger is a real estate veteran and loves to pass on tips and secrets to her clients and she is discussing one of the best kept neighborhood secrets in all of San Francisco: Merced Heights.

San Francisco, CA (PRWEB) November 14, 2011

Paige Gienger, a San Francisco real estate agent for Coldwell Banker Residential Brokerage, has recently come across a gem of a neighborhood in San Francisco. This well-kept secret is the Merced Heights neighborhood and it is built on the hillside in the southwest corner of San Francisco, tucked to the north of Ingleside Heights and south of Ingleside Terrace. At an elevation of 500 feet, the Shields Orizaba Rocky Outcrop caps the summit of Merced Heights and is a great location to watch the sun set over the Pacific Ocean.

“What is special about Merced Heights? Numerous obvious and unknown attributes,” says Gienger. “Comprised of single family homes with backyards and many with ocean views, the homeowners in Merced Heights have a true pride in ownership and this is evident with a high homeownership rate and historically low home turnover rates.”

The neighborhood has the feeling of being in suburbia, but has easy access into the heart of the city. It is bordered by Junipero Serra Boulevard on the west, Holloway Avenue on the north, Ashton on the east, and Shields Street to the south.

Following the Ingleside Terrace’s design, to specifically not have a commercial business district, the cafes and shopping abounds on nearby Ocean Avenue, with a new Whole Foods currently under construction. The neighborhood is close to Stonestown Shopping Center and West Portal shops, restaurants and theater. A San Francisco public library is located on Ocean Avenue, and there are several public parks; Lakeview Ashton Mini Park, Brooks Park is at the end of Arch Street, and Merced Heights Playground located on Byxbee Street.

The community is awash in bicycle riders, dog walkers, runners and folks just taking a stroll. It has a one acre community garden, a designated Tai Chi recreation area, the San Francisco Zoo within a short drive, and several beaches close by.

The climate is a mix of fog and sun and tends to be several degrees warmer than the Sunset and Richmond Districts. Transportation abounds with 280 Interstate and 19th Avenue arteries, allowing for easy access to Muni trains and Balboa and Daly City BART stations.

Gienger is listing a home at 560 Arch Street at Holloway Avenue in Merced Heights. The San Francisco home is on the market for the first time since the 1960s and features gorgeous period details, exotic wood built-ins and moldings and hardwood floors. The main level features two bedrooms and one bathroom. An additional bonus bedroom and bathroom are situated on the lower level of the home. The living room is adorned with a fireplace, vintage tile surround and flanked with bookshelves for cozy feel. The kitchen has an eat-in area and newer stainless steel gas oven and range. The home also includes a one-car garage and spacious fenced yard.

For more information about Gienger, to view her current listings or to contact her to sell a house in San Francisco, call her at 415-692-5623 or visit her on the web at www.ontherightpaige-sf.com.

About Paige Gienger

Born and raised in the Silicon Valley, San Francisco real estate agent Paige Gienger is a proud life-long resident of the Bay Area and is familiar with all of San Francisco’s desirable residential neighborhoods. Gienger is a San Francisco homeowner and 21-year resident with concern and commitment to the community she serves.

Within the Gienger Family, real estate expertise comes naturally. Her mother is a top producing Coldwell Banker Agent. Working in her mother’s thriving business, she rapidly acquired inside knowledge and proven actions for sales success.

Gienger’s personable and professional style is the winning combination that has earned her a stellar reputation during her twelve years of helping clients buy and sell homes. Gienger’s personal philosophy is that customer service and satisfaction always comes first. She ensures an enjoyable real estate experience by incorporating her intimate knowledge of Bay Area communities and attention to detail while navigating through current San Francisco real estate market hurdles.

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For the original version on PRWeb visit: www.prweb.com/releases/prwebreal-estate/san-francisco/prweb8959339.htm

Article source: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/11/14/prweb8959339.DTL

Home Ownership May Fall More Than Expected

Fri, 15 Jul 2011 06:39:16 +0000

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Sometimes you hear one thing and don’t think much of it, and then you hear another thing that makes the first thing seem much more important.

This morning the Mortgage Bankers Association put out a report from two UCLA researchers (MBA funded the report) saying that the homeownership rate may have bottomed but could still fall another one to two percentage points.

Then JP Morgan’s CEO, Jamie Dimon, [ JPM 40.35 +0.73 (+1.84%) ] suggested that his bank could get out of the mortgage ownership business in the future. “Owning consumer assets may be something we don’t want to do,” Dimon said on the earnings conference call. “It may be we’ll originate, securitize, service, but not own” mortgages. He added that they don’t have to make a decision on the mortgage business until rules are set, which could be eight years.

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Article source: http://www.cnbc.com/id/43756305?__source=RSS*blog*&par=RSS