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- New Trend: Millennials are buying homes with friends
New Trend: Millennials are buying homes with friends
Apartment Rent-to-Income Ratios Continue to Fall and 9 More Real Estate Insights
Startup PromoTix ($48M in traction) is saving the events industry
PromoTix is solving the event industry’s challenges around high ticket fees and low attendance. Ticketmaster and competitors charge up to 40% of the ticket price to book, deterring guests who can’t afford the added cost. Combined with a crowded marketing space, events struggle.
PromoTix is raising funds to expand. Already profitable, with 656k users and $48M in sales in its first 30 months, PromoTix has low-fee and no-fee SaaS pricing, as well as patented marketing tools that drive attendance.
Latest Rates
Loan Type | Rate | Daily Change | Wkly Change | 52-Wk Low/High |
---|---|---|---|---|
30 Yr. Fixed | 6.87% | -0.02% | +0.03% | 6.61/8.03% |
15 Yr. Fixed | 6.32% | -0.01% | +0.02% | 5.95/7.35% |
30 Yr. FHA | 6.33% | +0.00% | +0.05% | 6.00/7.44% |
30 Yr. Jumbo | 7.05% | +0.00% | +0.00% | 6.95/8.09% |
7/6 SOFR ARM | 6.59% | +0.01% | -0.01% | 6.11/7.55% |
30 Yr. VA | 6.35% | +0.00% | +0.05% | 6.02/7.46% |
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Macro Trends
Millennials are buying homes with friends link
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42% of Millennials report purchasing a house by themselves, while 14% have bought homes with friends. This shift reflects a broader trend of unconventional homeownership strategies within this generation.
Buying as a couple remains the most common method, with 47% of Millennials doing so, but significantly fewer Gen X (4%) and Baby Boomers (1%) have bought homes with friends. This highlights generational differences in home-buying approaches.
In 2022, a majority of Millennials (52%) owned their homes for the first time, despite numerous challenges. This milestone underscores the evolving housing market and the adaptability of Millennials in achieving homeownership.
Real Estate Trends
Apartment Rent-to-Income Ratios Continue to Fall link
Rent-to-income ratios fell to 22.7% in June, continuing a trend since October 2023. This drop aligns with stagnating rent growth nationwide.
The lowest rent-to-income ratios are seen in Midwest cities like Detroit, Chicago, and Pittsburgh. Conversely, Riverside and San Diego, California, have the highest ratios.
Average monthly incomes on leases hit nearly $8,800 in June, equating to over $105,000 annually. This figure accounts for all income sources per unit, including dual-income arrangements.
Housing Demand Stalls As Homebuyers Wait for Lower Rates link
Mortgage rates have dropped recently but remain higher than last year, failing to incentivize homebuyers to act. New pending sales are significantly lower compared to the same period last year.
Inventory has seen a 2.6% jump, the largest weekly increase this year, with 668,000 single-family homes currently unsold. Despite the inventory rise, homebuyer demand remains sluggish.
Home prices have stayed relatively stable, with the median price at $450,000. Price reductions are up slightly, but there's no significant sign of increasing demand.
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HUD announces $175M funding opportunity for rental construction, renovation link
HUD’s Continuum of Care program will distribute $175 million for developing new rental housing units with supportive services for the homeless. Of this, $65 million is earmarked for states with populations under 2.5 million.
Permanent Supportive Housing (PSH) projects will be the primary focus, providing non-limited rental housing with support services for disabled homeless individuals. Up to 20% of each award can be used for supportive services and operating costs.
The funding aims to address both immediate and long-term homelessness issues, emphasizing construction, acquisition, or rehabilitation of housing units. Incentives are also offered for projects in partnership with Indian tribes and Tribally Designated Housing Entities.
Something I found Interesting
What a Kamala Harris presidency could mean for housing link
Kamala Harris's potential presidency could see a focus on housing affordability, continuing some Biden-era policies like rent caps and affordable housing grants. However, these policies might face strong opposition and have limited impact due to Congressional resistance.
Harris’s experience as California's Attorney General during the 2008 financial crisis suggests she understands housing finance intricacies, yet some analysts believe her administration might prioritize consumer issues over complex financial regulations like Basel III.
The Biden administration's initiatives on affordable housing, such as adjusting the Low-Income Housing Tax Credit program and repurposing federal land, may influence Harris's approach, although her past policies leaned towards supporting Black homeownership and rent-burdened tenants.
Pro Member Only Content Below
These Retailers Saw a Surge in Traffic in Q2
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These Apartment Markets Scheduled to See Deliveries Decrease in the Coming Year
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Demand Is Returning For This Asset Class
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Guess, How Many Americans Don’t Want To Go To College Now
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Inside the Rising Appeal of This Lakefront Town
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Off Topic
We’re spending more time watching videos on social media
(That’s cutting into how much we stream TV and movies)
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Unreal Real Estate
Yes, this is the front of the house.
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It would mean a lot if you could reply and tell me which story you liked the most. 🙏
That's all, folks.
Cheers,
Vidit
P.S - Read past newsletters here
Referral Milestones
Discount | Referrals Needed |
---|---|
3 MONTHS FREE on the Pro Plan | 1 |
30% off FOREVER on the Pro Plan | 5 |
50% off FOREVER on the Pro Plan | 10 |
75% off FOREVER on the Pro Plan | 15 |
100% off FOREVER on the Pro Plan | 25 |
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