Renters Now Outnumber Homeowners In Big City Suburbs

Renters now outnumber homeowners in previously owner-dominated suburbs, and more communities are set to flip soon, according to a report from RentCafe. Over the past ten years, 103 suburbs have flipped their majorities from homeowners to renters. Many of the communities are in suburbs around Miami, Washington, D.C., and Los Angeles. Suburbs in the U.S.’s 50 largest metros gained 4.7 million people in that time, of which 79% are renters.  About 21 million people rent suburban homes in those metros, 3.7 million more than in 2010. The number of renters grew 22% between 2010 and 2019, while the number of suburban homeowners grew by only 3%. Fifty-five percent of renters are under 45 years old with median household earnings around…

Morning Roundup (9/17/2021)– Rent Growth Overtakes Home Prices, Home Sales Down

Good Morning! Today is Friday, September 17. Elizabeth Warren sent letters to 12 regional Fed presidents asking them to ban ownership of individual stocks among top officials at their banks. The World Bank canceled their “Doing Business” report after an investigation found that management tried to alter data. The Justice Department is fighting against a settlement that would prevent citizens from suing the Sackler family. And in mortgage and housing news… No Bias in Mortgage Biz?: Researchers from the American Enterprise Institute Housing Institute claim studies alleging racial bias in mortgage ignore outcomes that undermine their arguments. Rent Growth Tops Home Prices: Rent growth overtook home price growth in August, a Realtor.com report found. Sales Down In August: Redfin reported…

Rent Prices Hit Record in August

Rent price growth topped home price growth in August, rising by over 10% year-over-year for the first time on record, a Realtor.com report found. The average national rent is now $1,633, up $169 and 11.5% year-over-year. Home prices in the same month grew 8.6%. Rents reached their highest levels ever in 35 of the 50 largest U.S. metros. All but 4 of the 50 hit record highs between June and August.  Two-bedroom units saw the most significant median national growth, up 12.3% to $1,828 year-over-year. Compared to August 2019, it’s even higher: up 16.7%. One-bedrooms rose 11.6% from the same time last year and 14.3% since August 2019. Both broke the record for highest levels in Realtor.com’s data history. Rents…

Morning Roundup (9/10/2021)- Equity Up in Q2, Wells Fargo Fined

Good Morning! Today is Friday, September 10. Tomorrow is the 20th anniversary of the 9/11 terror attacks. US unemployment hit a new pandemic low as it continues to trend down. President Biden announced a new plan to require vaccinations in workplaces of 100 employees or more or face weekly testing. The Taliban allowed 113 Americans and other Western passport holders to leave Kabul. And in mortgage and housing news… Tap That: American homeowners gained a record $1 trillion in tappable equity in the second quarter of 2021, a single-quarter record according to Black Knight. Speeding Like A Bullet: The national median monthly mortgage payment for homebuyers rose 67% faster than rents year-over-year in August, but mortgage hikes are starting to…

Mortgage Costs Rose Faster Than Rents In August, But Trend Down

The national median for monthly mortgage payments increased faster than rents in 25 out of 50 major U.S. metro areas, but rents are speeding up as mortgage hikes begin to slow, a Redfin report found. Average monthly rents increased 9% over the past year, reaching $1,836 in August, but median mortgage payments rose 67% faster. August’s numbers represent the seventh month in a row mortgages outpaced rents. But August also saw a dip in mortgage payment growth, dropping to $1,494, while rents continued to climb. Rent prices have exploded as would-be homeowners struggled to find affordable houses and battled cash-rich investors in bidding wars. “Record high home price growth has priced many renters out of buying, leaving many facing higher…

Just 11% Of Rental Assistance Funds Distributed

Federal efforts to help renters cover their monthly payments have largely failed, as theTreasury Department reports just $1.7 billion of the $46.5 billion rental aid program’s funds have been disbursed, leaving 89 percent untouched. “About a million payments have now gone out to families — it is starting to help a meaningful number of families,” Gene Sperling, who oversees the operation of federal pandemic relief programs for President Biden, told the New York Times. “It’s just not close to enough in an emergency like this to protect all the families who need and deserve to be protected. So there is still way more to do and to do fast. The Emergency Rental Assistance Program was created to provide funds to…

Homeowners, Renters Fear Foreclosure, Eviction

Millions of Americans are feeling insecure about their housing situation, with 2.3 million renters fearing eviction and 1.2 million borrowers fearing foreclosure – or would be forced to move in the next 30 days. Those findings were included in the Mortgage Bankers Association’s report released Monday. The report, by MBA’s Research Institute for Housing America, also found that 5 million US households did not make their rent or mortgage payments in December. “A rapid rollout of vaccines will hopefully slow the virus and lead to a larger reopening of the economy later this year,” said Gary V. Engelhardt, Professor of Economics in the Maxwell School of Citizenship and Public Affairs at Syracuse University. “This would help the labor market and…

Stimulus Package Includes $25B For Rent Aid

The new $900 billion stimulus package agreed to by Congressional leaders includes additional housing relief, but an advocate is warning that more assistance may be needed after the new year. The deal, which is before the House, incudes $25 billion in rental assistance for families struggling to make monthly payments. It also extends the ban on evictions through the end of January. David M. Dworkin, president and CEO of the National Housing Conference, applauded the deal while cautioning that much work remains ahead. “Help is on the way for millions of renters and small business property owners who for months have faced an impending housing crisis,” Dworkin said. “The $25 billion for rental assistance announced by Congress … is a…

Analysis: Renters Largely Making Payments

Renters tend to be prioritizing making monthly payments to their landlords amid the Covid-19 pandemic, according to a new analysis conducted by Freddie Mac. Freddie Mac’s study found: 93.6 percent of renters paid full or partial rent in May.94.2 percent paid full or partial rent in June. The finding most closely aligns with the National Multifamily Housing Council Rental Payment Tracker, which reported 95.1 percent in May and 95.5 percent in June. “The surveys analyzed in this report provide valuable insight into the rental market during this unprecedented time and it is important to consider what each source captures and how that fits into the bigger picture,” said Steve Guggenmos, vice president of Multifamily Research and Modeling at Freddie Mac. “The…

Free Rent! Landlords Offering More Concessions

Landlords across the country are offering more perks to attract would-be renters as the rental market has softened considerably in the last few months, according to an analysis released Tuesday by Zillow. In July, 30.4 percent of rental listings on Zillow offered some sort of concession – up from 16.2 percent in February and just 12.5 percent in July 2019. At the same time, growth in rent costs has slowed from 3.9 percent to 1.2 percent over the same period. “Before the pandemic, rent growth was accelerating and the nation was seeing concessions dwindle. That trend reversed sharply after the pandemic hit in February,” Zillow economist Joshua Clark said. “In a softer rental market, landlords are trying to push the right…