Real Estate in Secular Uptrend

Rising Rents Are Hitting American Suburbs Hardest -
Suburban rent growth exceeds its urban counterpart in 28 of 33 metro areas, a new study finds

Media and politicians love to talk about rising rent to gain political credits. The reality is gross rental yield is less than mortgage rate… landlords are subsidizing tenants.
Before Fed rate hikes, gross rental yield is 8-9%, mortgage is 2-3%.
Today, gross rental yield is 6-7%, mortgage is 7-8%.

What about the landlords who locked in 2-3%?




Actually is three tiered.

Starter = Less than 0.75 median price. Red-hot
Move-up/ Investment = 0.75 to 1.25 median price
Luxury = More than 25% above median price Ice-cold

Have been like that for more than a year.

Why use y/o/y? House prices bottom around Feb and have been climbing.

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This is only for new buyers which are a tiny percent of total home owners. It’s annoying when they click bait or just don’t understand the terms or math.

Repeat after me: building any new homes reduces housing costs for all

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At least they are honest in the title and admit prices are up.

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