David Deem 714-997-3486 Dave@DeemTeam.com According to the  U.S.   Census Bureau,   median rent  continues to rise. With today’s  low mortgage rates , there’s great opportunity for current renters to make a move into homeownership that stretches each dollar a little bit further. While the best timeline to buy a home is different for everyone, the question remains:  Should I continue renting or is it time for me to buy?  The answer depends on your current situation and your future plans, so here are some thoughts to help you decide if you’re ready to own a home of your own. 1. Rent Will Continue to Increase This is one of the top reasons why renters decide to move because in most cases, rent will continue increasing each year. As noted above, the  U.S.   Census Bureau  recently released its quarterly homeownership  report , and as the graph below shows, median rent is climbing year after year. When you own a home, you’ll lock in your...

  David Deem 714-997-3486 www.DeemTeam.com By Jameson Doris Texas is hot! Aside from the climate, the rental market is booming in the Lone Star State, with four of the top 15 cities for millennial renters located there, according to a  RENTCafe study .   Analyzing data from 13 million rental applications across the U.S., national internet listing service RENTCafe found the cities where millennials applied the most for rentals this year compared to the past five years.   "We focused on large and mid-sized cities—where millennials represent 38.5 percent of applications—and ranked them based on each city's share," according to the company. In Texas, the four cities that cracked the top 15 list are: Austin (No. 3), Houston (No. 4), San Antonio (No. 5) and Dallas (No. 12).   However, although Seattle, Wash., has topped the list for the past five years, Austin is set to overtake the West Coast city. The Texas capitol came in at No. 1 for 2020 and, according to RENTCaf...

David Deem 714-997-3486 Dave@DeemTeam.com By Bill Gassett If you have a spare room in your home, renting it out can be a way to earn extra to pay the mortgage. There can be problems with this sort of arrangement, however, that could make you wish you hadn't invited a renter into your home, so it's important to be educated about the process as much as possible.   Renting out part of your home  does put you in the position of a landlord with the associated responsibilities. You have to understand what your legal situation is and how to deal with issues that arise in dealing with your tenant.   Let's take a look at the most vital things you have to know when renting a room in your home.   Knowing the Rental Laws Are Vital You have to read up on the laws that will apply to you in your state, as they differ nationwide. There could also be specific rules in your local area; for example, if your homeowner's association has provisions that could prevent your plans. Make sure...

David Deem 714-997-3486 Dave@DeemTeam.com Vacancy rates have decreased over the past year, according to Census reporting. For the second quarter of 2020, national vacancy rates were 5.7 percent in rental housing and 0.9 percent for homeowner housing. On the rental front, that's 1.1 percent lower than the rate in Q2 of 2019, and 0.9 percent lower than the first quarter of 2020—a small, but optimistic improvement. In the homeownership space, the rate was 0.4 percent lower than Q2 2019 and 0.2 percent lower than the year's first quarter.   The overall homeownership rate has increased to 67.9 percent—3.8 percentage points higher than the second quarter in 2019 and 2.6 percent higher than 2020's first quarter.   On a regional basis for rentals, vacancy rates in the South and Midwest reported similar numbers at 7.4 percent and 6.8 percent, respectively. Meanwhile, the Northeast had a vacancy rate of 4.2 percent in the second quarter, while the West was lower at 3.8 percent.   H...

David Deem 714-997-3486 Dave@DeemTeam.com Y ounger generations are moving back in with their parents amidst the coronavirus crisis. What does that mean for the rentals they're leaving behind? According to  new data from Zillow , $726 million in rent is on the line, and that's only counting Gen-Z renters.   According to Zillow, 2.7 million adults moved back in with their parents during the months of March and April, likely due to job losses as a result of the pandemic. In April alone, there were 32 million adults living with their parents or grandparents—a record high.   What if these moves are permanent? As 80 percent of those who moved back in with their parents are Gen Zers, that means 1.4 percent of the total rental market could be at risk.   "The share of adults living with their parents has been high since the global financial crisis of the aughts," said Zillow Senior Principal Economist Skylar Olsen. "Then, it was millennials flocking to the basements and ...

David Deem 714-997-3486 Dave@Deemteam.com April saw decreases in demand for single-family rentals, likely due to stay-at-home mandates put in place during the coronavirus pandemic, according to the latest  Single-Family Rent Index   (S FRI) from CoreLogic. The national rent increased 2.4 percent YoY in April, down from a 2.9 percent YoY increase at the same time last year.   Despite the slowdown, however, CoreLogic reports that rent increases in the lower tier of prices helped prop up national rent price growth. Rent prices at less than 75 percent of the regional median increased 3.1 percent YoY in April, down from 3.6 percent at the same time last year. At the higher price points (rents greater than 125 percent of a region's median rent), prices increased 2.3 percent in April 2020, down from a 2.4 percent gain last year.   Phoenix had the highest YoY increases in single-family rents (6.6. percent). And Tucson, Ariz., experienced the second-highest rent price growth ...

David Deem 714-997-3486 Dave@DeemTeam.com By Nadia Evangelou, Senior Economist, Director of Forecasting, NATIONAL ASSOCIATION OF REALTORS® Nationwide, 34 percent of the millennial renters can afford to buy the typical home compared to 40 percent of Gen X renters. However, the income gap between millennial and Gen X renters has been declining, and millennials actually outcompete older generations in some large local markets. According to an NAR analysis, in 30 percent of the 100 largest U.S. metro areas, millennial renters are more likely than their Gen X counterparts to have the income to buy the typical home. Here are the top 10 metro areas where millennial renters are outpacing older renters: In these metro areas, the income for millennial renters is higher than the income for Gen Xers. Specifically, millennial renters earn, on average, nearly 20 percent or $8,000 more than Gen Xers. For instance, in the Boston, Mass. metro area, ...

 David Deem 714-997-3486 Dave@DeemTeam.com We all want to live more comfortably, especially as rent prices continue to increase. Here are a few suggestions for renters: Make a list of needs vs. wants and choose a neighborhood and property based on needs first.  Allow yourself a stable financial foundation to work from with the knowledge that creature comforts come in many forms and can be added to your life as your budget allows. Look for levers.  If your neighborhood and property allow you easy access to public transportation, then you know you’ll have a key cost-saving measure available if you need it. Similarly, if your property has an on-site gym or your desired apartment has ample storage space, you know you won’t need to budget for those expenses. The balance of amenities that you’re able to establish will allow you choices about how to spend your money, beyond rent. Do your homework.  Research what’s on the market before and during your search, ...