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Miami Single Family Rental IMN Conference Update

May 27, 2024

🌴 🏘 Despite recent headlines, increasing optimism within SFR and tech innovation was contagious in Miami this week at IMN. Top themes including: the readiness to deploy committed capital; address housing issues related to affordability.

🐂 🏘Now over a decade, IMN held its east coast SFR conference in Miami. The ecosystem of investors, operators and lenders continues to grow with increasingly optimism for the future. Information Management Network (IMN) 🌴 🏘

👨‍🚀 🌕 Major Themes Hawkhill Homes 💡🚀

🤖 AI SFR Advancements: seeing through the hype, there is extremely high value in next gen vertical SFR platforms ready to capitalize on real world AI applications in acquisition-enabled sourcing, valuation, transaction pilots, data-driven decision-making in portfolio management, and customer success. 🤖This will enable next gen SFR platforms to outperform legacy SFR and tech platforms dealing with distracted priorities related to cost synergy and rationalization efforts and on-going sales processes.

🏡 Housing Innovation: co-ownership + fractional ownership, and co-living models addressing major issues in housing affordability, offering flexible solutions for renters, owners, and investors alike continue to raise capital and thrive.

🦅 🌄New living models addressing major problems facing SFR and housing: 1) Wealth Building and 2) Path to Ownership 🦅 🌄 Hawkhill Homes🏔 CoVista.co 🏔 (🌟 "coming soon" 🌟 )

Exploring major trends embracing the "Forever Renter" phenomenon

May 1, 2024

🏡💭Exploring major trends in new home construction embracing the "Forever Renter" phenomenon 💭🏡

🌟In the ever-evolving landscape of housing, a significant paradigm shift is underway, reshaping the concept of homeownership and introducing the notion of the "Forever Renter." 🌟

📊✨ Thoughtful reflections on the surge in single-family homes designed for renting and its implications. The landscape of housing is undergoing a profound transformation 📊✨

1️⃣ Financial Realities: With mortgage rates soaring and home prices escalating, renting single-family homes offers a pragmatic solution. In 2023 alone, builders completed 27,495 single-family rental homes in developments of at least 50 houses, a significant surge from pre-pandemic levels? 📈💰

2️⃣ Lifestyle Choices: Beyond financial considerations, renters are drawn to the lifestyle benefits. From spacious layouts to shared amenities akin to luxury complexes, these developments cater to diverse needs. 💼🏊‍♂️

3️⃣ Addressing Demand: The rental market is stepping up to bridge the gap in housing availability. Approximately 7.3% of newly constructed homes went directly to the rental market between the second quarter of 2022 and the first quarter of 2023, according to the Urban Institute. 🌍🏠

🙍‍♂️ 👨‍👩‍👦 Renting a house may be especially appealing to people in their 30s or 40s who rent apartments and are looking for space and things like a backyard to raise a family, said Doug Ressler, business intelligence at Yardi.

And since the U.S. has built single-family homes at a slower pace than new families formed in the years since the Great Recession, there just aren’t enough houses to go around for everyone who wants to buy one.

“The supply of housing has not kept pace with this demand,” Ressler said.

“Renters are forced to extend and rent longer, and they're going to look for those opportunities that present themselves that fit their lifestyles.” 🙍‍♂️ 👨‍👩‍👦

Blackstone Says Time to Buy Real Estate as Prices Bottom

March 28, 2024

🌟 Jon Gray, Blackstone President, recently offered valuable insights into why the present moment could represent the ideal opportunity to capitalize on the current real estate landscape. Bloomberg

🤽‍♂️ Diving into the Highlights:

✅ Bottoming Prices: Suggests real estate prices are hitting bottom, presenting a compelling opportunity for investors to act swiftly and acquire assets at discounted rates. However, he wisely points out that caution shouldn't overshadow the potential gains.

🏢 Wave of Buying Opportunity: With competition for discounted assets relatively low, there's room for investors to capitalize. Gray anticipates a surge in buying opportunities, particularly as financial institutions grapple with losses from past loans.

Latest Census Population Data Shows Texas Standing Out

March 20, 2024

🌟🏠 Population growth and jobs drive housing - latest county population data paints a fascinating picture of how population growth is quickly shaping the housing market across the US. Texas stands out with 8 of 10 counties with the most population growth, and 6 of the 10 fastest growing counties, including Kaufman County in the Dallas Ft Worth (DFW) MSA which emerges as the fastest-growing county. That's just the tip of the iceberg. 🏠🌟

🌆 Texas and Dallas Leads the Pack:
Texas stands out as the epicenter of this growth phenomenon. Six out of the ten fastest-growing counties in the US, are nestled within the Lone Star State. This trend positions Texas as a key player in driving housing demand and economic expansion. Texas offers a vibrant economy with lower cost of living, diverse job opportunities and top tier schools.

📈 Population Growth Driving Housing Demand:
The Census Bureau's press release highlights a significant uptick in counties experiencing population gains. This surge in growth, from 52% to approximately 60% of counties, underscores a growing demand for housing across the nation.

WSJ: The Rise of the Forever Renters

December 23, 2023

🏡💡The evolving landscape of housing: innovations in flexible renting and co-ownership will be key to addressing affordability and building wealth - and catering to the rising demand from "Forever Renters"🌐

⚡🚈"Change happens gradually, then suddenly". Insightful housing and renting trends in "The Rise of the Forever Renters" yesterday The Wall Street Journal

⏯️🔑Purpose-built rental communities, build-to-rent subdivisions, are on the rise, offering lifestyle choices without the burden of homeownership. The influx of higher-income renters, evident in the record number of millionaires renting homes, has led to a decline in lower-priced rental options.

🏦 🔑Financial planners suggest that forever renters need to adjust their investment strategies, exploring real estate investment trusts and other tradable securities for a diverse portfolio.

💯🌄 In this dynamic housing landscape, innovative solutions and co-ownership models will play a crucial role in ensuring housing affordability and fostering wealth-building opportunities for all. 🏠💡

Wall Street Landlords Are Increasingly Selling Homes Back to Main Street

August 3, 2023

🏘 🐂 Data from Insider shows SFR institutional managers are increasingly selling homes to regular homeowners through the MLS as a more effective channel to unlock value versus portfolio sales which trade at big discounts. The companies — Invitation Homes and AMH — have already sold 1003 homes this year, through July, to non-corporate buyers, according to Insider's analysis of data from real estate tracker ATTOM Data.

✅ That's more than these companies sold to mom-and-pop buyers for all of 2022 (760), and 2021 (498).

🔑 Operational prices have increased substantially in some markets, due to rising property taxes and insurance costs. The lack of housing supply, which has kept prices high even as mortgage rates rise, makes selling homes in markets that cost more to operate rentals a profitable play.

✅ 💡 "The market not having enough overall supply in the resale space has allowed us to, when we decided to sell homes, get really good what I would call kind of end-user sales prices," Dallas Tanner, Invitation Homes CEO said during a July earnings call.

How The Housing Bears Got the Last Year All Wrong

July 24, 2023

🐂 🏘 Morgan Stanley housing strategist Jim Egan was one of the first to predict the housing marketing would prove "weirdly resilient" to higher rates in 2022

💡 👎2022: Last year, as the Federal Reserve ratcheted up interest rates to the highest level in decades, there were many who warned of a looming crash in home prices.

💡 👍 2023: Fast forward to today, and it’s clear that the US housing market has so far proven to be far more resilient than many of the bears expected.

Instead of a giant collapse in home prices as mortgage rates shot above 7%, residential real estate dipped only briefly and is now on its way up again.

Half of Millennials Own Homes. The Rest Fear They Never Will

April 19, 2023

Millennials, the generation born between 1981 and 1996, are falling behind other generations when it comes to wealth, hit by the 2008 economic crisis, stagnating wages, skyrocketing house prices during the pandemic, and now rising interest rates and inflation. For the first time, more than half of millennials own a home. The rest are finding it increasingly out of reach.

The millennial homeownership rate hit 51.5% in 2022, US Census data show. It’s been a slog to get there for the generation that came of age during the financial crisis — by age 30, 42% of millennials owned their homes compared to 48% of Gen X and more than half of baby boomers.

And those who are still renting are starting to think they’ll never get there.

Bifurcated Home Price Correction: Some Markets Have Fallen Sharply, Others Have Barely Moved.

February 6, 2023

Long-term housing trends remain strong. Looking back at historical price increases, COVID was a pull forward in pricing for coastal markets with a subsequent correction over the last year. Despite this, regional markets with strong fundamentals have held up well and are back to their long-term positive trends.

"While national home prices deflated a bit in the second half of 2022, the story varies significantly by market. You could even call it a bifurcated home price correction: Some regional markets have fallen sharply, while others have barely moved.

Among the 150 major housing markets tracked by Burns Home Value Index, 100 markets ended 2022 with local home prices below their 2022 peak. While 50 markets, including places like Milwaukee and Miami, ended 2022 with local home prices remaining at all-time highs.

Wall Street has $110B for homebuying spree. Blackstone, KKR among firms gearing up to purchase single-family rentals

December 23, 2022

Institutional real-estate investors have earmarked as much as $110 billion to purchase or build single-family-rental homes in the coming years, according to an estimate by Zelman & Associates, a real-estate-research and investment-banking firm. The sum is the largest ever amassed by investors to acquire American houses — enough to add almost 400,000 homes to the already expansive inventory of roughly 700,000 single-family properties now controlled by corporate landlords.

"It's the biggest mountain of capital we've ever seen to acquire homes," said Rick Palacios Jr., the director of research at John Burns Real Estate Consulting, a housing analysis and data firm that tracks SFR investment.

Millennials Shut Out of The Housing Market, Again

November 30, 2022

Millennials have always lagged behind other generations in homeownership. Despite the increase in ownership prior to and during COVID in 20019 and 2021, now higher prices, decreasing inventory and higher mortgage rates have shut out the next generation.

Millennials started their careers in the shadow of the Great Recession, when highly paid work was hard to find. Lower earnings, high student debts and reduced wealth have followed them ever since.

There is little respite in sight for those hoping to buy their first home. The housing market is cooling, but mortgage rates are expected to remain high as the Federal Reserve raises borrowing costs to combat inflation. And the high costs of rent, food and other necessities make it more difficult to save for a first-time down payment.

As Mortgage Rates Rise, More People Choose to Rent Single-Family Homes

November 27, 2022

In­creas­ingly, U.S. con­sumers faced with in­fla­tion and the high price of homes are press­ing the pause but­ton on home buy­ing.

The rate on an av­er­age 30-year fixed mort­gage is now 6.61%, more than dou­ble what it was in Oc­to­ber 2021, ac­cord­ing to hous­ing-fi­nance agency Fred­die Mac. As a re­sult, sin­gle-fam­ily home rentals, or SFRs, are now a hot area in the real-es­tate mar­ket.

“We are in the midst of a hous­ing-af­ford­abil­ity cri­sis and peo­ple are suf­fer­ing from sticker shock,” says Gary Berman, CEO of Tri­con Res­i­den­tial, a ma­jor de­vel­oper, builder, and op­er­a­tor of sin­gle-fam­ily homes for rent across the U.S. and Canada.

INVESTOR RESOURCES

AMH Investor Presentation

March 2024

Invitation Homes Investor Presentation

March 2024

NRHC SFR Fact Sheet

2022

Proptech Future - Citi

2022

RCLCO Single Family Rental B2R

2022

SFR 101 - Invesco

2022

SFR NHMC

2021

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