WALL STREET JOURNAL CONFIRMS: Single Family Real Estate Stays Strong As Rentals Increase

July 7, 2014

Apartment Rents Rise as Incomes Stagnate

Apartment Landlords Continue to Push Through Hefty Rent Hikes in the Second Quarter

July 2, 2014 12:01 a.m. ET

Apartment landlords continued to push through hefty rent hikes in the second quarter, squeezing U.S. households that already are struggling financially after four years of steady increases.

The average monthly rent for an apartment rose to $1,099 in the second quarter, up 0.8% from the first quarter, according to data to be released Wednesday by real-estate research firm Reis Inc. REIS +1.49% That was the 18th consecutive quarter of rent increases. For the 12-month period ended in June, rents rose 3.4%.

Effective rents—which tend to be lower than asking rents—were up in all 79 U.S. metro areas tracked in the Reis report. West Coast cities that have been the model of recovery continued to top the list of highest rent growth for the quarter and over the past 12 months. Rent growth exceeded 6% over the past year in San Francisco, San Jose and Seattle.

Even cities that aren't normally associated with fast rent growth, such as Charleston, S.C., and Nashville, Tenn., posted strong growth over the year, up about 5% or more for the year.

"You have definitely seen that recovery now spread to all of the major markets around the country, even if some of them were laggards," said Ryan Severino, an economist at Reis. "It's a very pervasive recovery."

Economists said the growing demand for rental housing partly reflects changing preferences among younger renters, who tend to prefer urban areas. But the demand for rentals also reflects tight mortgage-lending standards that have shut out potential homeowners from the market.

"If you can't get into a single-family house and you can't get a mortgage, well, you don't need a mortgage to get an apartment," said Stephanie Karol, an economist at IHS.

But household incomes have stagnated, resulting in a financial squeeze for a growing number of renters. Median household income was $50,017 in 2012, below 2007's peak level of $55,627, after adjusting for inflation, according to U.S. Census Bureau data.

In the Raleigh-Durham, N.C., metro area, rents rose 1.2% in the second quarter, the seventh-largest rent increase in a metro market, according to Reis. Rents have risen 3.3% in the past year.

Raleigh resident Abbie Swank, 23 years old, began looking for a one-bedroom apartment last August. Ms. Swank, who works as a bartender at P.F. Chang's China Bistro, was surprised by the prices and realized she would have to make sacrifices.

"I went to some that were in the $700 to $800 range, but they were the size of my living room now, or the area was tucked back in the woods," she said. "I didn't want to come home at 2 o'clock in the morning" to a home located in an isolated area.

In January, Ms. Swank settled on an apartment 15 minutes outside of downtown with a monthly rent around $900. "I like where I'm living now, but it's not really where I wanted to be completely," she said. "I really wanted to live downtown. I just can't afford it."

Ms. Karol of IHS said such elevated rents are leaving many households struggling. "When you compare that kind of growth to what we've seen in wages and salaries, you start to see, wow some of these costs are just out of this world for a lot of people," she said.

There could be some good news on the horizon for renters. While apartment vacancies, a barometer of demand, fell in more than half of the 79 metro areas included in the Reis report, they were unchanged nationally at 4.1% in the second quarter. That could mean supply is finally starting to catch up with demand, a sign that rent growth could slow at some point. According to the Reis report, the market is expected to deliver 180,000 new multifamily units this year.

"We think new supply will self-correct rising rent," Ms. Karol said. "It will be a continuous process of easing over the next few years."

But Mark Zandi, chief economist at Moody's, says affordability problems will likely remain, especially for lower-income households. "There's going to be a very severe housing-shortage problem," he said. "People are going to be in very difficult situations. This is a problem that's going to be increasingly severe over the next few years."

 

LUXURY IS The Only Game In Town! - Florida Billionaires Row

June 20, 2014

Miami's Uber-Lux Regalia Residences Tower Nears Completion

Miami's Uber-Lux Regalia Residences Tower Nears Completion

Residential News » North America Edition | By Michael Gerrity | June 6, 2014 11:27 AM


The developers of the Regalia oceanfront condominium residences have something new to celebrate this week; their project has just received a temporary certificate of occupancy. In addition, 85 percent of the project is currently under contract to close, with wealthy buyers coming both from the United States, and internationally from places like Brazi...


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GENERATION X - and beyond - COMPLETE SUSTAINABILITY DEMANDS by our Youth

June 20, 2014

Growing Urban Development Trend: Walkability

Residential News » North America Edition | By Michael Gerrity | June 18, 2014 9:00 AM


Based on a new report by the Center for Real Estate and Urban Analysis at George Washington University School of Business in conjunction with LOCUS: Responsible Real Estate Developers and Investors, walkable real estate development projects and places are on the rise nationwide.

The report titled: Foot Traffic Ahead: Ranking Walkable Urbanism in America's Largest M...


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DuXplore Family of Companies: CHAIRMAN of the DECADE!

June 20, 2014

GARDNER SHIELD 2014.jpg

Lawrence Adam Gardner



Experience: DuXplore Inc Family of Companies™


DuXplore Inc ® Progressive Innovation ™ : Founded 1998: Director; Duxplore Inc, a Nevada Corp was conceptualized in 1998 and established in 1999. A Portion of Profits made by the Duxplore Family of Corporations is applied toward multiple charitable causes.From inception, Duxplore Inc, has been comprised of principals who have extensive experience in most real estate industries to include, but not limited to, real estate co...


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GEORGIA ALLOWS EQUITY CROWDFUNDING WITHOUT ACCREDITATION!

June 20, 2014

GEORGIA Real Estate Trust Fund No. 37

THIS COLLECTION:
These Units are all located in GEORGIA STATE, USA
This Portfolio is 5 Units 
5 Homes
We will be donating 1 Home to A Veteran
Portfolio Value: $685,000.00 USD
Portfolio Contract Cost: $507,000 USD
Taxes Due: $2,173.18 USD
We have vested interest of: $177,000.00 USD leaving a balance to raise of $332,173.18 USD

You will receive an equal share as a percentage based on the tota...

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PRICES BEGIN TO SKYROCKET ON REAL REAL ESTATE!

June 20, 2014

U.S. Home Prices to Rise in 6.3 Percent in Coming Year, Says CoreLogic

Residential News » North America Edition | By WPC Staff | June 3, 2014 10:13 AM  


According to CoreLogic's latest Home Price Index (HPI) report, home prices nationwide, including distressed sales, increased 10.5 percent in April 2014 compared to April 2013. This change represents 26 months of consecutive year-over-year increases in home prices nationally. On a month-over-month basis, home prices nationwide, including distre...


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INVESTORS & HEDGE FUNDS ARE KEEPING THE ASTRONOMICAL COME BACK OF REAL ESTATE VALUES TO THEMSELVES!

June 20, 2014

312,000 U.S. Homes Regain Positive Equity in Q1

312,000 U.S. Homes Regain Positive Equity in Q1

Residential News » North America Edition | By Michael Gerrity | June 5, 2014 10:49 AM ET

According to a new report by CoreLogic, more than 300,000 homes returned to positive equity in the first quarter of 2014, bringing the total number of mortgaged residential properties with equity to more than 43 million.

WPC News | National Home Equity Distribution by LTV SegmentThe CoreLogic analysis indicates that approximately 6.3 million homes, or 12.7 percent of all residential properties with a mortgage, were st...


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US REAL ESTATE - INVENTORY SHORTAGES INCREASE AS FORECLOSURE RATES PLUMMET

June 20, 2014

Foreclosure Activity in U.S. Down 5 Percent in May

Residential News » North America Edition | By WPC Staff | June 10, 2014 8:00 AM  


According to RealtyTrac latest U.S. Foreclosure Market Report for May 2014, foreclosure filings -- default notices, scheduled auctions and bank repossessions -- were reported on 109,824 U.S. properties in May 2014. This is a 5 percent decrease from the previous month and a 26 percent decrease from May 2013 to the lowest monthly level since December 2006. The repo...


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UTOPIAN SOCIETY KEY FEATURE!

June 20, 2014

Indian Developer Launches 'Child-Centric' Homes

Residential News » Asia-Pacific Edition | By Rebecca Bundhun | June 6, 2014

A company in India is building residential property developments with a focus on nurturing children's abilities and talents, offering special facilities and celebrity-coaching on site in activities ranging from tennis to personality and leadership skills.

606-Gera-GGV-IV_Layout_Cam_011.jpgThe concept, called "ChildCentric Homes", has been launched by a Gera Developments, an Indian developer.

The Indian p...


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The Next Best Thing OFF Wall Street!

June 7, 2014

"Investors Raise $8 Billion for Acquisitions"

special-reports/logo-hw.png"Larger Wall Street investors rushing into the market have raised between $6 billion and $8 billion, with the intent to acquire between 40,000 and 80,000 foreclosed homes in the months ahead."

"The Next Big Thing on Wall Street"

special-reports/logo-wsj.png"The business of buying foreclosed homes, renovating and renting them out is morphing from a largely mom-and-pop business into the next big thing on Wall Street.

Blackstone Group LP has become the biggest U.S. investor in si...


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