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We have Dick Burke is senior VP.
Of apartments dot com joining us talking about the rental market and it stayed up there on the market across the U last.
I did carry it.
I'm great -- thanks for having me so you know the Fed is keeping interest rates super -- for really long time so mortgage rates come down and more people buy homes but unfortunately.
While that's happening to small -- more people seem to be ranking.
OK with it.
That -- that is exactly the case Lauren.
Most of those seem to think the housing market in the renal market might -- opposite directions that's not really the case we're finding.
Ten year lows in Vegas rates right now the national vacancy rate is about.
4% very very low and that's really caused by the financing issues which you talked about.
There wasn't credit dried up and away don't mind that slow down building.
Starts from an issuances buildings coming on line -- for now we expect in the next five years Lauren.
But 2.4 million folks are going to be.
Looking for apartments to rent.
And we don't have that capacity right now also supplies coming on line but it's not coming fast enough.
Right and about a hundred.
Go ahead you expect that we expect we wouldn't expect a 150000.
Units -- will come on in the next 1218 months but we're still forecasting.
Vacancy rates for the next you're -- okay.
The real estate market is obviously all about location although most people will -- go what you said we're seeing supply come back a little bit but not nearly enough and the market's definitely.
Hot right now so if you look at the fifty United States in every city in them what is the average -- With the -- -- the average ran in the multifamily world is about a thousand at 21 dollars.
That's four properties with more than five units if you look at smaller buildings was questioned that might be a little bit left.
But the -- amazing -- born is the range.
Within cities even a city like yours New York.
Obviously downtown or midtown crazy rants but in neighborhoods like park Chester -- beta -- you may -- to find something.
For less than a thousand the key is to understand location go to a site like apartments dot com.
And you can poke around -- its -- by location you can focus on the number of -- you can focus -- the amenities and find something that works for you.
And increasingly going above 4% this past year -- and so it's critical the tenants.
Prospective residents look around do their homework and find a -- but you can make it work and even cities like New York San Francisco LA Chicago.
If it's cheaper to buy and -- -- and many instances.
It it depends on how much -- -- what you want about.
The indicators are that a housing.
Homeownership is becoming less expensive.
Relative to -- but I think -- funny about -- is that reading affords flexibility.
Which in these uncertain economic times is very attractive to people.
You have the ability to move quickly if a new job opens up you have the ability to perhaps -- in a neighborhood you might that a -- -- -- ownership was.
We're finding that a third of the folks on our side lord we're looking to rent our former homeowners it is very -- -- Did the foreclosure.
-- -- have anything to do with that people being forced out of their homes because of foreclosure and then turning -- rental market.
With -- without without a -- -- There is real fear.
In light -- what happened in no way don't 910.
That -- homeowners who wasn't all it was cracked up and ready if you look so wonderful investment obviously but a lot of people are still very fearful of that and because of that like this certainly -- of -- They don't have the financial exposure of foreclosure -- -- -- the financial exposure of what's gonna happen to the roof what's gonna have when the tree fall -- and they like the flexibility to afford that's exactly right there's.
A lot of data points on the foreclosure market.
Lately and -- about 25 or so states require.
Foreclosures to go through the courts so that slows them down so in some states are start starting to see this ramp up in foreclosure activity.
When nationally it's coming down but it's definitely heating up in some areas -- -- -- affect the -- -- -- market.
What were five -- finding that folks like you said a moment ago people are still a little bit careful and reticent about.
Owning a home perhaps they can't get credit.
Quick -- Drives people to do is we're seeing more more people moving to renting.
The percentage of the whose home ownership society.
Is coming down in part because the foreclosure but also muted because this the certainly that Randy can afford all -- of flexibility about.
You're you're not tied into a house that might you might appeal to get credit on.
And you might appeal to sell the time comes we're seeing -- real immediate and direct correlation -- between foreclosure rates and the rental market -- Let's talk specifics let's -- into some locations and thousand dollars in rent a month can get to his studio apartment in which cities let's say Providence -- -- You come in under -- thousand whether it when other cities do you have.
Are they are 400000 or -- major -- get -- even big big cities and put in.
You know Chicago and Los is in the right -- -- can do it for less than a thousand -- El Segundo it surprising right in Chicago.
Put buck town Logan Square -- and water.
Welcome in New York even -- -- park Chester.
The key is going on to a satellite apartments account and you can -- finally we're out.
For -- Israel have a broader choice for under a thousand Atlanta.
Phoenix Nashville sounds -- -- -- sort of cities like that we'll have quite a bit of inventory but the trick is you got to become Smart is prospective Tenet.
It maybe you can't find a place in 2000 perhaps you can get a two betterment in defray the cost with a roommate.
Perhaps you can get -- the neighborhood it's not quite as desirable.
Perhaps get an -- building that's not his new orders and have -- -- -- amenity package there are a lot of choices out there it's just being flexible and being knowledgeable and.
And what it up for a lot of college students they finds that after they graduate.
And they go and live in their college town which which college towns have the best friends.
It's Tallahassee -- pretty pretty attractive college -- The champagne Urbana near our hometown of Chicago pretty attractive obviously if you're in the colds very expensive -- -- Columbia grad and -- -- New York's going to be tough UCLA USC it's going to be difficult right that that what we call the sand states Florida Arizona.
Nevada pretty attractive -- Lansing Michigan home Michigan State.
Also was capital by the way very very -- -- get a three bedroom their -- for under a thousand.
Land saying that plus.
You're exactly right -- -- bedroom under a thousand dollars.
Amazing is that right and I guess -- -- he had to then wonder why someone.
To live in and Lansing and until you're -- head of the spartans -- And a -- injuries and I know lineup.
You know I I think you touched on this but there are some great.
CD's that little spots where it's a lot cheaper.
To -- so -- -- that you can go to New York you can go to Los Angeles to find the little pocket there where the rent is that's an unmanageable.
-- -- rent.
Probably increasingly but the slowing down year to date the rough about 4% lower yet we either get maybe one or 2%.
Nationally is this obvious it's driven by supply and demand so units coming on line.
Is going to be slow down rates but they're still getting three or 4% and vacancy is still hovering only at about 4% so.
Slowing down and then moderating in.
When he fourteen -- he's been a bit new buildings come on line.
What is -- building and I thought now seeing off found planes small bank.
-- -- fail without a doubt on the ball to barely getting back to foreclosure there's a ton of single families out.
Private -- is coming in to manage those -- an interesting article today.
About sort of securitize the -- streams coming in from.
The single families that are being bought by the Goldman Sachs in the private equity -- the world.
All the construction that we're seeing is in the multifamily.
Hundred units and up.
Yet that might also be because a lot of families are bigger in terms of the adult children -- living at home the the aging parents are living at home in the same household I suppose.
I got that I think that's -- it's really essentially that.
No construction happened of multifamily units from away -- -- it.
It made a very very slow you look at permit issuance is a construction -- -- at least ten to fifteen year -- -- that's coming back up now but it was very very low contrast that with what happened in the housing market from all Ford always.
Massive building of single family homes built for ownership.
Either never occupied or foreclosure happen so there's a tremendous supply and the single family side.
Much less supply a little differently we think that's what's driving the -- more so than the changing -- densities.
Of Ridder family's okay thank you so much deeper we appreciate your time senior VP -- under heavy ordinance dot com of course your website is on the screen.
Apartments dot com fame but he wants more information have a great at.
Thank you to -- that I right.
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