CoreLogic Economic Outlook: June 2019
Multifamily property sales totaled about $100 billion in 2018, the largest annual volume recorded, and apartment prices reached new highs last year. Rent is expected to rise about 3% in 2019 with cap rates close to last year’s level, supporting further gains in property values.
There are several reasons why finding a tenant is difficult. The answer lies in one simple word: qualification. To be considered a qualified tenant, you have to have the right combination of variables. This article will help you identify 10 specific things to look for when searching to fill a vacancy.
US SINGLE-FAMILY RENTS UP 2.9 PERCENT YEAR OVER YEAR IN FEBRUARY
- Rents for lower-priced homes increased faster than those of higher-price homes.
- Phoenix had the largest annual rent increase of the 20 analyzed areas in February.
U.S. single-family rents increased 2.9 percent year over year in February 2019, up from a 2.7 percent increase in February 2018, according to the CoreLogic Single-Family Rental Index (SFRI). The index measures rent changes among single-family rental homes, including condominiums, using a repeat-rent analysis to measure the same rental properties over time. Single-family rents climbed steadily starting in 2010, and annual rent increases have stabilized, fluctuating between 2.7 and 3.1 percent for the past 12 months.
FOR BUYERS, LOWER MORTGAGE RATES SINCE THE HOUSING BUST SOFTENED THE BLOW OF RISING HOME PRICES
As home prices soared in recent years, homebuyers’ struggles with worsening affordability understandably garnered a lot of attention.
Owning property and being a landlord comes with some responsibilities and risks. Property must be kept in good repair and tenants afforded privacy. In turn, landlords need to know the people they choose to rent to will pay their rent on time and comply with the terms of the rental or lease agreement. When they leave, they must return the property in substantially the same condition as when they moved in.
US SINGLE-FAMILY RENTS UP 3.1 PERCENT YEAR OVER YEAR IN DECEMBER
- Rents increased 3 percent for the full year 2018.
- High-end segment rent growth accelerated and low-end segment decelerated in December 2018 compared with December 2017.
- Houston had the slowest annual rent increase of the 20 analyzed areas in December.
U.S. single-family rents increased 3.1 percent year over year in December 2018, up from a 2.9 percent increase in December 2017, according to the CoreLogic Single-Family Rental Index (SFRI). The index measures rent changes among single-family rental homes, including condominiums, using a repeat-rent analysis to measure the same rental properties over time. Single-family rents climbed steadily between 2010 and 2018. Annual rent increases have stabilized, fluctuating between 2.7 and 3.2 percent for the past 12 months. Rent increases averaged 3 percent for full year 2018, a pick up from 2.7 percent in 2017.
MORTGAGE RATE AND PRICE FORECASTS FOR 2019 SUGGEST SLOWER GROWTH FOR “TYPICAL MORTGAGE PAYMENT” THIS YEAR
While the median price paid for a home nationally had risen by just over 5 percent year over year as of last October, the principal-and-interest mortgage payment on that median-priced home had increased by 17 percent, mainly because of the 2018 rate hikes.
US SINGLE-FAMILY RENTS UP 2.9 PERCENT YEAR OVER YEAR IN NOVEMBER
- High-end segment rent growth accelerated and low-end segment decelerated in November 2018 compared with November 2017.
- Seattle rents decreased in November.
NEW DATA FROM THE S&P CORELOGIC CASE-SHILLER INDEX REVEALS REASONS BEHIND SLOWING GROWTH
Home prices in the U.S. grew 5.5 percent in September according to the latest S&P CoreLogic Case-Shiller National Home Price Index. This is the sixth consecutive month of slowing home price growth, which is now at its lowest level since January 2017.