USA rents accelerate, rising 6.3% annually. Asking prices rose 7.8% year-over-year. At the local level, asking prices rose year-over-year in 96 of the 100 largest U.S. metros.
Demand for apartments is seemingly insatiable. Low vacancy, an improving economy and labor market, and lots of newly completed Class A properties coming online with rents higher than the market average will push asking and effective rents up by roughly 3.3% next year.
In real terms – and as a price-to-rent ratio – prices are mostly back to early 2000 levels.
A majority (85 percent) of the 382 metros covered in August experienced annual home value appreciation. Among the 30 largest metro areas covered by Zillow, 20 saw annual appreciation of 10 percent or more.
Warren Buffett makes several key USA housing points in the Berkshire Hathaway Shareholder meeting: Housing completions have been at record lows; there are currently more households being formed than new housing units completed, and this is decreasing the excess supply; the excess supply will be “sopped up” at different rates across the country; housing is a key reason for the sluggish economy (not the only reason).
The housing market in the south of the United States is among the most attractive asset classes in the world, Marc Faber, the editor of the Gloom Boom & Doom Report, told CNBC on Friday, because while homebuilder stocks had rallied, property prices hadn’t moved much. “If you look at the supply of homes, new construction, and you compare it to immigration into the United States, to the growth of the population, then these markets are very attractive from a longer term perspective,” Faber told Bernie Lo on CNBC’s Straight Talk.
The reason is perhaps not hard to come by. Rohit Prakash, President – American Full House LLC says, “In the last few years property prices in India have risen significantly. Investors who invested at the lows in India have gained from this rise. They are now looking at booking profits and investing in other assets that are available at reasonable valuations. The US real estate market is one such avenue where prices are currently at the lower end of the range with potential for strong upside. In addition, while smaller investors may be hard pressed to find good properties at $100,000 in India very easily today, there are quite a few such opportunities in the US.”
The housing market in Las Vegas may continue to struggle, but for investors, the city is the best place to buy a home and rent it out, a new report revealed on Monday. HomeVestors of America and Local Market Monitor released its list of best markets to invest in rental property, and Las Vegas came out on top… That means investors can buy homes at low prices and have a sizable pool of renters from which to choose… The return could be short-term (the cash flow attained by renting out the property), long-term (the appreciation of the property over time) or both, he said. The risks include future potential home-price drops in the market.
Vacancy rates are falling fast (the excess supply is being absorbed). The falling vacancy rate is pushing push up effective rents. Note: The excess housing supply includes both apartments, condominiums, and single family homes. A record low number of multi-family units will be completed this year (2011). Only 8,700 apartments came on the market in Q1 (in the Reis survey area).
When the real estate market collapsed five years ago, this city’s downtown soon became an emblem of the worst excesses of the building boom. Glittering new towers sat mostly vacant.
Those towers are filling up much sooner than some analysts predicted. The new arrivals, mostly renters, are spurring the establishment of restaurants, bars and shops.
Condo sales here began surging after property owners slashed prices about two years ago, sometimes by 50% or more. … Fewer than 4,000 out of the 22,000 new units built since 2003 remain unsold, according to Condo Vultures.
Apartment dwellers could be facing double-digit rent increases in the coming years as a shortage of new multifamily units coupled with a rise in prime renter-age households gives landlords clout they haven’t see since the mid-1990s, development experts said Thursday. “Demand pressures are building. It’s not bad today because rents have been down the last two years,” said William McLaughlin, an executive vice president with AvalonBay Communities (NYSE:AVB) in the Northeast. “But it feels a lot like 1992, when we were coming out of a deep recession … and we ended up seeing double-digit rent increases after that,” he said.