Survey: Single-Family Renters More Likely to Stay Longer

Renters who opt for single-family homes over apartments are more likely to live in those homes for five years or longer and more interested in ultimately becoming a homeowner, according to a study released Monday.

Some 26% of single-family-home renters said they planned to live in their current rental for five years or more, compared with 22% for renters in multifamily buildings. Three out of every five single-family renters also said they planned to become a homeowner within five years, compared with just 44% of apartment renters.

More than 14 million renters live in single-family homes in the U.S., but over the past year the sector has received much more attention from private-equity funds and other institutional investors looking to build large pools of rental homes by purchasing foreclosures and other distressed properties at fire-sale prices.

While some critics have questioned the ability of these firms to effectively manage hundreds or thousands of single-family homes scattered across a city, the lower turnover of single-family tenants could help reduce costs for landlords.

The survey, conducted by ORC International for Premier Property Management, also found that a majority of apartment and single-family renters indicated that they rent because they

INVESTMENT PROPERTY: Tips For First-Time Landlords

You can't or don't want to sell your existing home.

If those two statements ring true for you, becoming a landlord might not be a bad idea.You can move to another home for less than the income you could get for renting your home.

The housing recovery is underway, but it could still take years for many homeowners to surface from their underwater status. Selling now would beselling at a loss.

Other homeowners aren't underwater, but don't have enough equity to sell at a decent profit. Selling now could be only a break-even proposition.

Homeowners stuck with a mortgage larger than the value of their home, are cashing in on rising rents by renting out their existing home and moving to a home that costs less - if only temporarily.

The deal can even work if the home you move to costs the same as or even more than your current housing costs, provided your new housing costs are sufficiently offset by the rental income from your existing home.

Do the math

In the best of all worlds, the rent should cover not only your existing home's mortgage, but property taxes, insurance, upkeep and other costs of owning a home. If not, you'll have to make up the difference.

In today's skyrocketing rents market, you likely can swing the rental income you need.

However, you face a greater obstacle than making the deal pencil.

Hiring a property manager could cut into your rental income, but landlording, especially for first-timers, is not a piece of cake.

Take some cues from T.J. Rubin, broker owner of Fulton Grace Realty in Chicago.

He offers some tips to help you make the transition to a new job as a landlord.

MARKET TRENDS: More young Americans leaving the parental nest, boosting housing recovery

WASHINGTON – Americans are feeling increasingly confident in the future and more and more are striking out to set up their own homes, a move that is helping propel the housing recovery.

The deep financial crisis and recession of 2007-2009 kept many Americans from leaving their parents’ nests and drove others back into them, putting a sharp brake on the pace at which new households formed.

Household growth averaged about 500,000 per year from 2008 through 2010 — less than half the rate seen at the height of the housing boom in the years just before that. The pace in 2010 was the weakest since 1947.

Instead of having too many houses, we are turning to a situation where there aren’t enough

But the rate at which individuals or families are getting their own homes picked up over the past two years, underpinned by a steady if tepid economic recovery and gradual labor market gains. In 2011, households increased 1.1 million and they grew closer to 1.2 million last year.

“The rise in household formation bodes well for the housing recovery. Instead of having too many houses, we are turning to a situation where there aren’t enough,” said Guy Berger a U.S. economist at RBS in Stamford, Connecticut.

Indeed, housing has turned from the economy’s sorest spot to its brightest, with new building activity at 4-1/2-year highs. Housing activity in turn spurs related areas like furniture.

That is because of people like Linna Chhean. After graduating from college in May 2007, she moved back in with her parents, helping out in a family-run business.

The 27-year-old finally moved into her own one-bedroom apartment four weeks ago after she was hired as a designer in the Dallas offices of a global public relations firm.

“I wanted to get a job in my field, which is art. I was working for them in a convenience store, which is not what I wanted to do at all,” said Chhean.

BRIGHTENING PROSPECTS

The worst recession since the Great Depression of the 1930s cost the economy 8.8 million jobs and drove the unemployment rate up to 10%.

Dim job prospects and growing financial stress undercut the pace of household formation — a

RENT VS BUY: Macro Rent-vs.-Buy Decision Fraught With Micro Decisions

The timeless rent-vs.-buy decision comes in a host of variations.

There are factors that go beyondaffordability.

There are cost differences bylocation.

For those who plan to move into a newly built home, there's abuying a new home-vs.-rentingscenario.

The rent-vs.-buy decision can get really quirky, including renting to cover a home with an underwater mortgage.However, to help level the playing field in any of a host of rent-vs.-buy scenarios, there are basics to consider.
While the information may appear to be self-serving, coming from ForRent.com, the online listings service for apartment communities offers an informative infographic to lay the groundwork for beginning to make a choice.
For starters, let's look at just some the pros and cons.
Renting pros
Rent an apartment and you've got the flexibility to move when you decide, and on fairly short notice.
That leaves your with more money available to invest, perhaps in some holding expected to do better than a 2 to 3 percent return that's expected on home values next year.
What's more, your time is also free from maintenance, landscaping chores and other upkeep, except those necessary for your own furnishings.
Renting cons
Of course, while you are socking your money away in stocks or bonds in a market that could crash any day, you won't have the benefit of new equity accumulation from today's recovering owner-occupied housing market.
And you may not be suited for close-in, higher-density apartment living, sharing parking, hallways and common area features.
Home ownership pros
With homeownership, provided you buy a single family home, you'll get more privacy, perhaps a quieter home.
More importantly, you are likely to enjoy increased equity in your home that will add to your personal wealth, help you build a nest egg and give you a source of liquid cash should the need arise.
There are also nearly a dozen tax shelter benefits that come with a shelter you own, from the mortgage interest, mortgage insurance and property tax deduction to the grand- daddy benefit of them all - a tax exclusion on certain capital gains.
Home ownership cons
Of course, you won't be able to call the super to take care of your property. That's your job.
Until you have some equity gain, you may actually have less access to cash. Not only will you have a mortgage payment, but also homeowner's insurance, property tax payments and the cost of upkeep.
You could face unexpected costs if you don't pay a premium for earthquake or flood insurance in certain areas if disaster strikes.
You get the idea. This isn't just a dollar and cents decision.
If you'll be moving soon, renting could be a better deal. If you'll be around longer, say five to seven years, buying wins.
It's tough to get into a mortgage for less than 20 percent down and even low down payment home loans force you to come up with some kind of down payment. That requires planning and saving.
ForRent.com has many more conditions you must begin to consider before the rent-vs.-buy decision is a done deal.
Check out the infographic below. Mouse over and click to get cozy with the kinds of decisions - within the rent-vs.-buy decision - that you'll have to make before settling on one or the other.

See more infographics.

RENTING OR BUYING: 'Renter Nation' Just A Myth: 93% of Millennial Renters Plan To Buy A Home Someday

Trulia‘s Chief Economist discusses the findings from Trulia’s latest American Dream survey. Consumer optimism about homeownership is rebounding as the housing market recovers, even among young adults who were often pegged as renters for life during the recession. Meanwhile, rising prices will encourage some homeowners to sell in 2013.

Trulia’s year-end 2012 American Dream surveyreveals how today’s consumers are more optimistic about the housing market and more ready to buy. For Millennials, the recent housing bust shapes their near-term expectations about the market in general, but nearly all young renters want to buy in the long run. Going into 2013, consumers expect inventory to expand, and it looks like that will happen so long as prices keep rising: as price gains push more homeowners into positive equity, more will be willing to sell.

To get Americans’ take on homeownership, we worked with Harris Interactive to conduct an online survey of 2,083 U.S. adults between November 15-19, 2012. For the full methodology, see below.

Americans More Bullish on Buying HomesAs 2012 wraps up, the housing market is looking up on all fronts. It was the first year since 2006 in which home prices will have increased. In addition, construction and sales are both significantly up from their lowest point during the housing crisis, and vacancies, delinquencies, and foreclosures have all come down. Key for the housing market, job growth has picked up, and unemployment has fallen to 7.7% from 8.2% six months ago and 9.8% two years ago. These trends all give consumers more buying power and more confidence in the economy

As a result, consumers are increasingly bullish on buying homes. More than 1 in 4 Americans (27%) are more positive about homeownership than they were six months ago, compared with 19% who reported feeling more negative about homeownership. That translates into more renters being eager to buy in the next two years:

Survey	% of renters planning to buy in next two years
January 2011	22%
May 2012	28%
November 2012	31%

But homeownership still has its skeptics. In November, 72% of consumers said that homeownership is part of their personal “American Dream.” That’s unchanged since May and up a bit from 2011, when 70% of consumers said so in our January and August surveys. But fewer consumers today believe in homeownership than in 2009 and 2010, when 76% and 77% (respectively) agreed. Will this sentiment bounce back, or has the housing crisis permanently taken the dream of homeownership down a notch? Only time will tell.

Millennials and the Housing Bust: Shaken, Not ScarredThe housing crisis looms especially large for younger adults–those aged 18-34 years old–who’ve only been thinking seriously about housing in these recent years of boom and bust. They have no memory of the decades when home prices rose modestly but steadily, or when mortgage rates were 7%, or up to 10%. These younger adults had a particularly rough recession: their unemployment rate peaked at 10.6% in October 2009, compared with 10.0% for adults overall, and many put off the decision to buy or rent their own home, and instead doubled up with roommates or lived with parents. This age group really matters for the housing market: their decisions about forming households and homeownership directly affect housing demand.

Our survey shows these Millennials haven’t been permanently scarred by the recession. Few have written off homeownership. Among 18-34 year-olds, 72% say homeownership is part of their personal American Dream–same as for the adult population overall. And the vast majority of young renters plan to own: 93% of 18-34 year-old renters plan to purchase a home someday. Older renters are more likely to say they’ll never buy than these young renters are. And, 43% of these younger adults are homeowners already. That leaves very few young adults who rent today and plan to rent forever.

However, despite these long-term aspirations, younger adults see a very different near-term housing market in their crystal ball. Consumers, regardless of age, expect both rents and housing prices to rise in 2013; they also expect more inventory, both for rent and for sale, and higher mortgage rates:

	% expecting increase	% expecting decrease	Difference (increase minus decrease)
Rents	46%	9%	37
For-sale inventory	41%	14%	27
Home prices	46%	19%	27
Mortgage rates	40%	15%	25
For-rent inventory	35%	15%	20
Note: respondents could also answer “no change” or “not sure”.

Younger adults, though, have a harder time imagining price increases and higher mortgage rates than older adults who have lived through more years of rising prices and high rates. Just 37% of Millennials expect prices to rise in the next year, and 22% expect prices to fall:

Age:	18-34	35-44	45-54	55+
% expecting prices to rise next year	37%	43%	49%	55%
% expecting prices to fall next year	22%	15%	19%	18%
Note: respondents could also answer “no change” or “not sure”.

They’re also much less likely than older adults to expect higher mortgage rates: among 18-34 year-olds, 32% expect rates to rise next year and 20% expect lower rates next year. That means younger adults may be in for a rude awakening when they try to buy. With lower expectations about prices and mortgage rates, Millennials have higher hopes than older adults that homeownership will remain relatively affordable. Today’s young renters may be overestimating what they’ll be able to afford to buy when their time comes.

Rising Prices Will Encourage Sales in 2013Nearly one third of renters want to buy in the next two years–but will they find homes for sale? In 2012, inventory was down 23% nationally year-over-year, and down 43% since the summer of 2010, according to the Department of Numbers’ HousingTracker. Much of this decline is thanks to fewerforeclosed homes on the market. In 2013, two forces could add to inventory, expanding the options for would-be buyers: (1) more construction of new homes, and (2) more homeowners selling existing homes. Our American Dream survey shows that rising prices in 2013 could trigger more sales–and therefore bring more inventory onto the market.

Among current homeowners, 22% said they are somewhat likely, fairly likely, or extremely likely

INVESTMENT PROPERTY: Rents to Keep Rising

Rents are forecasted to rise nationally 4.6 percent next year, and that’s following a 4.1 percent increase this year, according to the National Association of REALTORS®.

What’s more, rents are expected to continue to climb for the foreseeable future, rising more than 4 percent a year for 2014 and 2015, forecasts Reis, a market research firm. 

“The pendulum has definitely swung back in favor of landlords, not renters,” Ryan Severino, senior economist for Reis, told USA Today.

Rents are rising even more rapidly in some areas. For example, rents in San Jose, Calif., and San Francisco have been climbing at a 13 percent to 15 percent annual rate as of late last year, according to MPF Research. Other metro area seeing rent increases of more than 5 percent by the end of September include Oakland, Calif.; New York; Denver; Houston; Nashville; and Columbus, Ohio, MPF reports. 

The rise in rental costs are causing more renters to consider home ownerships, says Greg Willett, MPF vice president. Mortgage rates are at historical lows and home prices are up, but still way below their 2006 peak. 

http://realtormag.realtor.org/daily-news/2012/11/28/rents-keep-rising?om_rid=AAEL-v&om_mid=_BQtk4LB8vbKE6m&om_ntype=RMODaily

INVESTING: Rental Market's Big Buyers

Private-Equity Giant Blackstone's $1 Billion Bet on Foreclosed Family Homes

Blackstone Group LP BX +1.77% has become the biggest U.S. investor in single-family rental homes by spending more than $1 billion since the start of 2012 to acquire more than 6,500 foreclosed houses in eight metropolitan areas, according to people briefed by Blackstone.

The firm also is finalizing a loan for at least $300 million from Deutsche Bank to support this business, these people said.

Numerous private-equity firms have crowded into the business, some as early as last year, looking for a way to bet on the recovery of the housing market. Blackstone's growing commitment to this strategy offers fresh evidence that the purchases of foreclosed homes, which began as a mom-and-pop pursuit, is gaining legitimacy among the biggest private-equity firms.

The demand from these firms and other investors could help strengthen the housing recovery, analysts say. Earlier this year, the Federal Reserve expressed support for the strategy as a way to clear the backlog of foreclosures that has weighed down the market.

Video From the Archive

What does Warren Buffett see that no one else does? He just made an outsize bid on ResCap loans, the latest example of his bet that the housing market represents a great

INVESTMENTS: The income property: Your late-in-life retirement plan

"Income property can be an important bridge to retirement for those without quite enough to retire in the traditional sense," says J. Camarda, a real estate investor, Certified Financial Planner, and Chief Investment Officer of Jacksonville, Fla.-based Camarda Wealth Advisors. Because real estate is such an inefficient market, it's possible to find awesome bargains with a very high return on investment, Camarda says. And if you can manage the property yourself, you can collect more income.

If you purchase the right property at the right price and on the right terms, he says, a rental property can produce significantly more income than traditional passive investments.

This article will describe how much you can expect to invest and earn, how to choose a location for your rental property, and problems that might derail your plans if you aren't careful.

How Much Money Do You Need?

If you plan to finance your purchase with a mortgage, you'll need to take action before you retire, says associate broker Janice Leis, who serves the premier residential areas of Philadelphia and South Florida.

Mortgage lending guidelines typically require applicants to be employed and have at least two years of steady employment history in the same occupation.

Lenders also require a substantial down payment, typically 30% or more, if you won't be occupying the property, says John Walters of LeWalt Consulting Groupe in St. Petersburg, Fla.

If you don't have the cash to make such a large down payment, consider using your IRA funds. All equity growth and income from rental receipts will grow inside your IRA tax-free, Walters says. Purchasing the property with funds inside a Roth IRA, on which you've already paid taxes, means all your earnings and equity can grow tax-free forever, he says.

After you've tackled the hurdle of affording the purchase, you need to think about ongoing expenses. Owning residential income property is like owning a principal residence in that there are variable expenses outside the mortgage, says Rob Albertson, a multi-million dollar residential real estate agent with Austin Fine Properties/PLR in Austin, Texas. There are maintenance costs for minor items (like leaky faucets) and major items (like a new roof).

Don't forget about marketing expenses and periods of vacancy and tenant change-over when you won't be earning income. Albertson recommends factoring no higher than a 92% occupancy rate into your calculations, even in a hot rental market. Be conservative in your estimates of expenses and income.

Tax considerations will also play into what you can afford.

"One of the chief benefits associated with rental property is the ability to claim a depreciation deduction on your federal income tax return," Walters says. Depreciation reduces the value of your property each year to approximate wear and tear. It lowers your tax basis so that you pay less tax on the property when you sell it.

First and foremost, discuss the financial feasibility of your plans with a CPA, a real estate attorney and an insurance agent to see how much everything will cost, recommends Leis.

Get valuable interest rate discounts on select new home equity loans from Wells Fargo.

Choose a Location

Purchasing the least expensive property you can find won't help you earn a return on your

BUYING A HOME: Buying Beats Renting

Are you staying put for at least three years? Savvy financial experts recommend you buy versus rent!

A new analysis by Zillow, a real estate information marketplace, providing vital information about homes, real estate listings and mortgages, reveals that the "break-even horizon" in more than 200 metros and 7,500 U.S. cities is three years (or less!). This is great news for wary buyers who have been fearful of declining home values in many cities.

These hard-hit cities are making a come back. The report found that in some of these areas the break-even horizon was less than two years!

"Across most of the country, historic levels of affordability make buying a home a better decision than ever, especially considering rents have risen more than 5 percent over the past year," said Stan Humphries, Zillow Chief Economist. "This is the first analysis of metros and cities that presents the buy versus rent decision in an intuitive way, by telling consumers how long they must live in the home before buying breaks even with renting financially. It's much more understandable, and therefore useful, than the abstract notion of a simple ratio of prices to rents. If we want consumers to act on market information, we have to align it with how they think about the issue and make it straight-forward to grasp."

This analysis took into account the full picture of homeownership: downpayment, mortgage, transaction costs, property taxes, utilities, maintenance, tax deductions, and adjustments for

LANDLORD ISSUES:Boston rental unit inspection plan debated

A proposed ordinance that would require most rental properties in Boston to be inspected once every three years was met with mixed reactions Thursday as city councilors, landlords, and tenants butted heads on whether more inspection requirements would place an unfair burden on responsible landlords.

Discussion of the proposal by the City Council was prompted by Mayor Thomas M. Menino, who earlier this month called for a change to the city’s current law after a slew of high-profile citations were issued against apartments around the city.

In a meeting at City Hall that lasted nearly three hours, city councilors and representatives of tenant and landlord associations bandied ideas on how to target absentee landlords, many of whom live out of state.

Menino’s proposal would require landlords to obtain an inspection once every three years, though property owners with a good track record could apply to opt out. Owner-occupied properties with one to three units would automatically be exempt from the more frequent inspections.


Under current law, rental properties need to be inspected only when units are turned over to new tenants, but landlords rarely notify the city when new tenants move in.

The proposal would also create a database of contact information for all rental property owners, so landlords are easily accessible when problems are identified.

“We’re really going to be able to go after some of these midsized investors that don’t care about Boston, don’t care about the neighborhood, but are now buying a lot of properties,” said Sheila Dillon, director of Boston’s Department of Neighborhood Development.

But many were wary of establishing new rules, saying that they would create undue hardship for responsible property owners. Fees for inspections are $50 per unit for buildings with one to three units, and $75 per unit for buildings with four or more apartments.

Michael Ferguson, facilities director for Peabody Properties, a real estate firm, argued that the ordinance would not be fair to companies like his, which have 24-hour maintenance staff and conduct their own inspections each year.

“We are transparent, compliant, and accountable on a daily basis to our tenants,” Ferguson said.

Councilor Mark Ciommo pushed for the exemption to be extended to properties with up to six units.

Councilor Michael P. Ross said he recognized the need for more accountability but hoped for something “very liberal, very exempting.”

“I don’t think we need a system that punishes the entire real estate industry for the bad apples,” Ross said. “I think we need a system that goes after the bad apples.”

Ninety-eight percent of inspections performed by the Inspectional Services Department on rental properties are prompted by complaints, usually from tenants or neighbors, according to the department.

Brian Swett, chief of the Office of Environmental and Energy Services, said the city needs a more proactive system that identifies small code violations before they become larger health and safety hazards.

Several councilors were skeptical that the Inspectional Services Department would be able to handle the increased workload. Inspection officials projected that they would have to conduct 50 percent more inspections per year, requiring 12 additional employees.

Bryan Glascock, acting commissioner of the Inspectional Services Department, said the fees would just about exactly cover the costs of the additional inspectors. Councilor Tito Jackson was not convinced.

“It’s a big deal when you come before the council and you’re asking for 50 percent more

INVESTMENT PROPERTY: Multifamily Still Doing Just Fine

The multifamily housing sector continues to improve, fed by people renting homes and the improving for-sale market, the National Association of Home Builders reported Thursday.

The trade group says that its Multifamily Production Index came in at 54 out of 100, climbing three points from the prior quarter and marking its eighth consecutive quarterly improvement. The reading is the highest since the second quarter of 2005, back before the housing market took its huge dive.

The quarterly index examines confidence surrounding construction of rental and for-sale units. As with the group’s single-family index, any reading over 50 indicates that more respondents think conditions are improving, with increased construction and sales potential.

More Americans burned by the housing debacle are looking to rent, particularly in big cities where glitzy towers boasting amenities including resort-style pools and outdoor kitchens are springing up. And those who can afford to buy are racing to tap mortgage rates that continue hovering near record lows.

Indeed, the index component tracking full-price rental properties came in at 63, indicating those developers are quite comfortable moving forward with new projects. The reading has topped 60 for four consecutive quarters—the longest sustained period of strength since the index’s 2003 inception, the NAHB reports.

This “continues to give us the signal that the rental market is healthy,” says David Crowe, the

VIDEO & HOME DESIGN: How to design a small rental apartment - Tiny Amazing Eclectic Space

RENTALS: The Cheapest, Priciest Areas to Rent an Apartment in the Hub

Everybody knows it's bad out there fortenants and very likely getting worse (forlandlords, not so much). The latest quarterly report from RentJuice/Zillow, covering approximately 85 percent of the apartment availabilities in Greater Boston, only reinforces the point.

Just take the aggregates: the average apartment rent for Boston proper in the first quarter of 2012 was $2,228, and in the second quarter was $2,503; the average apartment rent for Greater Boston was $2,218 in the earlier quarter, and $2,308 in the quarter ending June 30. Rents in some areas in particular were way up: North Cambridge, 20 percent; Belmont, 42 percent. Some were down: the rest of Cambridge, East Boston. Generally, though, the numbers reflect a rental market that appears to be trending toward ever-more demand amid tight supply, no matter how much construction there is or is planned (check out our Rental Heatmap for that).

The only real bright spot for tenants might be the availabilities coming up after the summer: Seven out of 10 rental listings being marketed now, according to the report, are noted as becoming available in early September. So there's that. 

The 20 most expensive areas:

Wellesley $4,435
Waterfront $4,255
The Harborfront* $3,667
Belmont $3,520
Needham $3,469
Arlington $3,438
Theater District $3,435
West End $3,368
Back Bay $3,328
Kendall Square $3,280
Seaport $3,262
Downtown Boston $3,256
South Boston $2,969
Bay Village $2,914
East Cambridge $2,904
South End $2,890
Teele Square $2,876
Brookline Village $2,875
Union Square $2,870
Central Square $2,853

And now the 20 cheapest:

Framingham $1,363
Everett $1,377
Norwood $1,512
Quincy $1,544

BOSTON HOUSING NEWS: Boston, developers betting tiny Seaport apartments will be a big thing

A small platform, painted black with images of kitchen appliances and living room furniture outlined in bright neon, was celebrated Thursday as the future of housing in Boston’s fast-growing Seaport District.

The platform, with a faux wall on one side, was a mock-up of the ultrasmall apartments under construction at the Seaport’s newest residential building, the Boston Wharf Tower on A Street. With units as small as 450 square feet, the apartments fit Mayor Thomas M. Menino’s call for more affordable housing in the district for young professionals who want to live near work and social attractions.

“From the very start of our plan for the waterfront and Fort Point Channel, we knew housing would be a crucial part of the equation,” Menino said Thursday during a ceremonial ground-breaking at that $100 million Boston Wharf Tower. “This project will help turn this neighborhood

MARKET TRENDS: Millennial (Echo Boomers) Generation: A Look At Housing Desires And Rental Needs

The housing and credit crisis has made being frugal very trendy. It’s now "cool" to save money rather than waste money. Even big banks are cashing in on the trend and coming up with hip tag lines like, "frugal is the new cool" as they promote ads and videos online that help consumers learn ways to save money.

The Millennials (those born 1980-1995, approximately–there is some disagreement about the exact years) share some specific desires regarding their housing needs. They want to drive less and have public transportation nearby. They don’t necessarily need or want to own right now. Instead, they might prefer to have a newer, hip and modern place they rent over one they own and have to fix up. They may be strapped for cash, so they want amenities included in the rent–like the use of a gym. Small is good for them since this generation is trying to save money on things like their utility bills.The poor economic times are causing some major shifts in homeownership. Many young people are opting to rent longer rather than buy partly driven by the fact that they can’t afford a downpayment or don’t qualify for a loan. Also, there is a larger than ever percentage of single people. These smaller households are seeking highly walkable places to live and work.


While renting may be the solution for many in this generation, some younger people still want to own their own home. In particular, single moms and women from the Millennial generation view homeownership as important to them. Making that happen could be difficult if they don’t take

MARKET TRENDS: Returning Veterans Hunker Down In Hostile Housing Market

It's tough out there being a military veteran trying to find a job. It's even tougher trying to afford a home - even if they can land a job.

Casualties among military personnel with boots on the ground in the housing market are often disproportionately higher than those among civilians.The Center For Housing Policy (CFHP) offers the latest in a flurry of recent studies that reveal how those who bravely serve to protect the nation - as well as the nations of others - face a steep, uphill battle at home, in the housing market.


Even with access to federal job training initiatives and other programs for returning troops, many of the jobs veterans enter after time on the battlefield offer wages too low to make housing affordable.


CFHP latest "Paycheck to Paycheck" study edition, "Can veterans afford housing in your community?" examines data from the first quarter of 2012 and reveals the gap between wages and the costs of housing, both rental and owned, in more than 200 U.S. metro areas, for workers in occupations targeted by job training programs for returning vets.
"Because many veterans have been off the job market for years while serving multiple tours of duty, they often struggle to find employment," said CFHP researcher and report author Laura Williams.


"In many housing markets, the jobs America's servicemen and women may find waiting for them after deployment do not pay enough to afford the costs of buying a home, and in some markets and for some occupations, veterans cannot afford the costs of renting a modest rental home," Williams added.


CFHP examined housing affordability prospects for workers in five jobs targeted by the

MARKET TRENDS: Housing Market Turns Corner; U.S. Home Values Post First Annual Increase In Nearly Five Years

Zillow’s second quarter Real Estate Market Reports, released today, show home values increased 2.1% from the first to the second quarter of 2012 to $149,300 (Figure 1). On an annual basis, home values rose 0.2% from June 2011 levels (Figure 2), marking the first annual increase in U.S. home values since 2007. In addition to showing both quarterly and annual appreciation, national home values also rose for the fourth consecutive month, increasing 0.7%. Notably, home value appreciation in the second quarter was the highest since the fourth quarter of 2005.

Nationally, home values reached their bottom in February of 2012 and have since appreciated at very robust monthly growth rates. Despite encouraging monthly growth, we do not believe that this monthly rate is sustainable and expect it to taper off towards the end of the year. According to the Zillow Home Value Forecast, we expect national home values to appreciate by 1.1% over the next year (June 2012 to June 2013).

The housing market’s recovery continues to show tremendous variation market by market. Sixty-seven of the 156 markets covered by the Zillow Home Value Forecast are expected to see increases in home values over the next year, with the largest increases expected in the Phoenix metro (9.9%) and theMiami metro (6.1%). We believe that ninety-six out of the 156 markets have already hit a bottom in home values, including Boston, Miami, and Phoenix. In some of the hardest hit markets, the bottoming process has been quite different than we had initially expected. Due to very low inventory levels paired with greater consumer and investor appetite and low mortgage rates, home values have appreciated faster than anticipated in markets like Phoenixand Miami, creating a V-shaped recovery in home values.

Home Values

The Zillow Real Estate Market Reports cover 167 metropolitan areas (metros) of which 98 showed quarterly home value appreciation. Five metros remained flat, while 64 metros show home value losses. Nearly one-third of metros covered by the Real Estate Market Reports posted annual increases in home values. The largest annual increase was in Phoenix, where home values rose 12.1% from the second quarter of 2011 to the second quarter of 2012. Phoenixis benefiting from high demand for homes from investors looking to convert them into rentals, high demand from mainstream buyers pulled back into the

RENTALS: 48% of property managers say rents rose over past 12 months: TransUnion

Roughly 48% of property managers surveyed by TransUnion said rental prices increased over the last 12 months on the majority of their properties.

The credit firm surveyed more than 1,200 large and small managers. Last year, less than 40% of respondents said rents were rising.

Roughly 70% of large managers, those handling more than 200 properties, said rents increased from last year.

"The rise in rental prices, coupled with a decrease in vacancy rates and the ability to attract new residents with less effort are all positive signs for the market and rental property managers," said Steve Roe, vice president of TransUnion rental screening solutions.

Even though rents are rising, demand remains high and managers are not having a problem locating new residents, according to the survey.

Nearly 73% of the managers said it was not difficult to find new occupants, compared to 67% last year.

The survey showed 83% of managers said vacancy rates were less than 5%, and more than 70% reported no vacancies.

Investors and would-be property managers flooded the Federal Housing Finance Agency with applications to take advantage of the rental boom. The agency continues to work on a pilot program to rent out previously foreclosed homes owned by Fannie Mae.

It will closely monitor how these property managers handle the homes in still fragile markets.

More than half of small property managers said they had a renter "skip out" on a unit and left