The Property Management Pulse - August 2023
👋 Hello & Welcome to the 1st Edition of Hemlane Insights!
We heard you and we're excited to introduce the first of many resources we're rolling out that will provide actionable insights you can use for your real estate investments keeping you ahead of the competition.
This month's key RE trends: We're covering all the reasons why everyone and their mother is complaining about the housing market, why home insurance is creating headaches for some states, where rents are cooling most, and what appeals to Gen Z.
🏠 The Big Picture
Fitch Ratings isn't the only thing causing drama this summer.
The US economy is doing well despite banks' doom and gloom talk. Consumer confidence remains high and inflation is cooling from recent rate hikes. However, what's good news for averting a recession is not necessarily the best news for housing as the mortgage rate remains too dang high.
- The monthly cost for a potential homebuyer is 20% higher YOY, which is causing everyone to reevaluate their home buying dreams.
- The number of homes available on the market sank by 19%, the lowest number since February 2022. As a result, prices for new homes are up 3% and older homes are as expensive as new ones.
- It's putting pressure on multifamily assets that were purchased at sub-5% cap rates in 2020 and 2021.
🗓️ Looking Ahead:
- The Feds will determine whether or not to raise interest rates on September 15th. Currently, most people believe that all signs point to yes.
- Expect a flurry of reports including mortgage application data, average rates, and the mortgage refinance index before the end of this month.
📋 Insurance News
🏘️ Rental Round-Up
- Rents are cooling in some cities where there is a mismatch between potential renters and available units.
- Build-to-rent construction is rising across the US, led by Arizona, Texas, and North Carolina - but not in these 10 states.
- Higher interest rates and the collapse of regional banks are causing multifamily construction to hit a wall: New permits were down 33% and with loan rates now at 8%, some developers put their projects on hold.
- Federal agencies are drawing new frameworks for tenant screenings, tenant organizing efforts, and eviction notices for renters. It's good to know that we're not the only ones working hard this summer.
- CBRE released its anticipated Q2 2023 multifamily report which found that both demand and supply are stabilizing.
💡 On Our Radar
- Landlords are finding that Gen Z renters want more than game rooms and pools.
- One of the hottest amenities happening for every generation? EV charging.
- Some home buyers are finding financing in the most unexpected place: the seller of their new home.
- 1 in 4 US home buyers want to move to a different city. Their top destination? Vegas.
- A fun list of the 7 best RE investing podcasts 🎧.
What's hotter than the weather? Living la vida solo. Nearly 30% of American "households" comprise of one person.
Product Updates & Resources
🎬 Watch Hemlane in Action
Missed out on our last demo webinar?
Join us for the next one on August 24th. Learn how you can save time and money with Hemlane by your side!
🤖 Use our AI Tool to Make Killer Listings
Hemlane launched AI-Powered Listing Descriptions to help landlords and property managers find tenants faster.
A product designed with AI to help you overcome writer’s block and create captivating listings effortlessly!
✔️ Your Checklist for the Perfect Rental Property
Looking for your next rental property? Make sure you read this article before you buy!
Learn the art of property selection, unravel the secrets of identifying profitable rental markets, how to assess the condition of potential properties, and how to perform a comprehensive rental property analysis!