ladan-nosratifar

Barbara Ballinger is a freelance writer and the author of several books on real estate, architecture, and remodeling.

What Homeowners Can Do With All Their Stuff

Thu, 29 Feb 2024 16:00:00 GMT

Whether selling or staying put, most homeowners could benefit from a little decluttering.

Three Key Takeaways:

Share with sellers the financial advantage of only taking with them what they’ll use.
Explain how breaking down the process into smaller tasks can lighten the stress load.
Offer ideas on how to dispose of belongings by selling, donating or sharing.

Decluttering makes moving easier for everyone—and less costly, too. It is also helpful for those who want to live more simply in their current residence. In fact, homeowners who have less clutter and are more intentional about what they bring into their space find that a positive for both their mental and financial health.

Many saw the wisdom of doing so during the pandemic when they were stuck at home, looked around, and wondered: Why do I have all this stuff that I never use?

Now, in the dead of winter when many again are indoors for long stretches, can be a good time to encourage clients to begin. Advise them to think of it as an adventure they pursue gradually rather than feel pressure to tackle all at once.

Truly effective—and lasting—decluttering represents a multistep process that varies according to each person’s situation. Those who have inherited a roomful of brown furniture from the 1950s and ‘60s and stacks of books, photo albums, crystal, and more may feel overwhelmed if they don’t want or can’t fit these furnishings into their home or apartment or find consignment shops interested in selling pieces, often because they have so much that’s similar from others hoping to unload possessions.

The following toolbox is offered up as a resource so that anyone can get started on their decluttering journey.

Share What Experts Advise

Marie Kondo became a world-touted expert on the benefits of decluttering with her first book, The Life-changing Magic of Tidying Up. It extolled the virtues of owning fewer belongings to have more space to display belongings that spark joy. Kondo went on to write more books, including one for children , and developed two Netflix series, "Tidying Up with Marie Kondo" and "Sparking Joy with Marie Kondo." She also opened an online store, KonMari, and started a certified-consultant training business .

If the Marie Kondo method doesn't quite spark joy, there are alternatives, such as the “Swedish Death Cleaning,” which involves getting rid of anything not needed, in order to relieve others of the task of discarding a loved one's possessions after they’ve died. Margareta Magnusson, author of The Gentle Art of Swedish Death Cleaning: How to Make Your Loved Ones’ Lives More Pleasant, says the practice offers an underlying message of caring for our heirs.

For those who want more than decluttering and are interested in a minimalist lifestyle, resources abound as well.

Cheer On the Downsizers

Decluttering, even if moving isn't on the immediate radar, is a great idea for many reasons. First, you never know when a move might be necessary. An intentional approach to decluttering well before moving ever becomes a question takes a lot of stress out of the moving process when it finally happens. Doing so can save time packing, slash moving costs and help reduce the amount of new living space someone might require. Even before it's time to move, there's the listing process to think about. Decluttered settings help present a better visual, which helps maximize sales, says Christopher Matos-Rogers, AHWD, GREEN, associate broker with Coldwell Banker Realty in Atlanta.

While many find it tempting to put off the difficult decisions about what to keep and what to toss until after they move, gently explain the wisdom of being realistic about what can fit in their new home, says Barry Izsak, an Austin, Texas-based moving and relocation expert and founder of PackingMovingUnpacking, an online service that helps those moving find movers in their area. “This is especially important for those moving long distances.," he says. "Remind these clients about their new climate. They might be able to ditch most of their winter clothing and that snow blower, too,” he says.

Know When to Suggest Professional Help

Homeowners who can’t handle the task on their own should consider hiring a certified member of the National Association of Professional Organizers or the National Association of Specialty and Senior Move Managers, ideally a professional with years of experience, says Izsak. As a former president of NAPO, Izsak says the national hourly rate professionals typically charged ranges between $50 and $100, depending in part on their locale.

Rhea Becker—who, as the Clutter Quee n , offers organizing services for homes and offices in Boston—says many of her clients appreciate how professionals speed up the process by keeping them focused on maximizing profits and avoiding digressions over each object’s history. “With a professional, you have the best chance to cut the time and get some money on the table since they know what will sell,” she says.

Group Items Into Categories

Whether your clients decide to bring in a professional or go it alone, it helps to have them categorize each item in a given part of their home into one of five groupings: keep, store, sell, donate or toss. Izsak says the litmus test he uses and shares with clients is to save an object only if it fits one of these three criteria: It’s useful, beautiful or loved. Becker suggests homeowners snap photos of favorite items that are difficult to part with to give them a visual memory they can retain rather than keeping the item itself. Here’s specific help you can offer them for each pile:

Sell

Midcentury modern furniture and contemporary art both appeal widely to buyers of all ages, especially if they’re of good quality and in decent condition. Create a list of estate sales specialists and consignment shops in your area that are known for fair dealing. However, be aware that many services that do the work of selling take a big cut, often half the sales price. If your clients are inclined to try to sell items themselves, suggest they try eBay for the best prices. However, if they’re not willing to go through the trouble of shipping sold items, encourage them to post goods on local online sites, such as neighborhood Facebook groups or Craigslist.

Donate

Remember the adage, “One person’s trash is another’s treasure.” Suggest to older clients that they first ask their children to claim beloved items from their childhood. Becker says it’s important to set a time limit for those who are interested to pick up what they want. Donations is another area where you can be a hero by compiling a list of trustworthy sources in your neighborhood for your clients. Take note of what charities will accept and when, and even which ones will pick up donations, saving your clients time and hassle. Some charities have gotten choosier about what they accept. For instance, many won’t take mattresses, box springs, pillow cases, or sheets. Real estate salesperson Christopher Flores with Keller Williams Larchmont in Los Angeles suggests a local halfway house that helps troubled young adults stabilize their lives as a great destination for used goods. “That way, they provide furniture and clothing they don’t need to those who may have nothing,” he says. Remind sellers that they may be able to secure a tax donation from the IRS if they contribute to a qualified tax-exempt organization . Because of recent changes in the tax code, it’s best for clients to keep detailed notes of what they donate and to consult their tax adviser for the exact percentages they will be able to write off.

Toss

Clients may save themselves some work by calling a local trash-hauling company or 1-800-GOT-JUNK , a REALTOR Benefits® partner , which operates nationwide. Have information on pricing and what haulers won't take on hand. Homeowners can also consult HomeAdvisor’s list of trash-hauling service providers by ZIP code. Also, it’s important to be aware of laws governing trash. Some municipalities allow homeowners to leave stuff by the curb with a sign that reads, “please take me,” while others levy fines for such activity. A more organized version of this idea comes in the form of local Freecycle chapters, part of a grassroots nonprofit where local people post stuff for free pickup in their own towns to help keep usable goods out of landfills.

Store Off-Site

It may be tempting to store certain household items off-site, and one in three Americans do, according to StorageCafe

. There are numerous reasons why. Aside from apartments getting smaller, people are unwilling to part with stuff permanently. The pandemic required a bit of a shuffle as well, requiring work-from-home space that didn't exist previously. Some families moved in with one another and needed a place for the extra stuff.

Picking self-storage requires homework. Advise clients to consider units that are locked, insured and climate-controlled and that offer access whenever they want. Prices can vary widely. Also remind clients that self-storage isn’t a great long-term solution, as months can extend into years and beyond. “Often storage is a matter of postponing the inevitable. It’s better to get rid of whatever you don’t need,” Izsak says. “If you know you’re storing something for a granddaughter who will use it in a year, that makes sense. Otherwise, get rid of it now!”

Barbara Ballinger

Content by Barbara Ballinger

How to Increase Cash Flow From a Second Home

Wed, 31 Jan 2024 16:00:00 GMT

Real estate professionals can use these market and financial tips to improve their own property investment strategy or that of their clients.

Real estate professionals who want to invest in a second home, or help their clients do so, need to know how their target market works year-round—not just when the property will be used. That tip came directly from a Florida real estate broker who spoke at the National Association of REALTORS®’ Real Estate Investment Summit about his experience working in a global hot spot for investment activity.

“Understand the specifics of your market that will make it attractive to a second-home buyer,” Gonzalo Mejia, a broker with Watson Realty Corp. in Jacksonville, Fla., said during the virtual conference in June. For example, buyers would have different reasons for coming to the Jacksonville area than, say, Miami or the mountains of Colorado, he said. In seasonal vacation areas like these, real estate agents should know the ins and outs of the summer versus winter cycles so customers can visualize their future investment year-round.

“Keep in mind: People who live in the community tend to care more about the community than those who are just there to have fun,” Mejia added.

Watch playbacks of the three-part Real Estate Investment Summit for a fee.

The three-part annual summit brought together the best tips from the Center for REALTOR® Financial Wellness and the Center for REALTOR® Development , aimed at providing practitioners with tools to plan for their own future through property investment as well as training to help guide their investor clients. The first part focused on how new and established agents can create strategies for generating consistent cash flow and building generational wealth.

Mejia, who recently purchased an investment property in Lima, Peru—which is his birthplace—said that when dealing with investment properties, it’s important to check your personal opinions at the door. “Just because a property wouldn’t look like a good investment to you doesn’t mean it isn’t a good investment for your customer,” he said. He also recommended becoming an ambassador for the destination area you serve. What does it have that is special? Get involved in the community, and stay on top of local government regulations that could affect the use of the home as a short-term rental. You should know whether the area has any restrictions for platforms such as Airbnb or VRBO.

In Rental Investments, Furnishings Matter

In a vacation rental, furniture likely will get broken. So, avoid outfitting your space with expensive items. “I spent more on mattresses, pillows and sheets because that’s what people use the most,” Mejia says. “One of the keys with second homes is good reviews” from vacationers.

Use your real estate negotiation skills to go above and beyond for clients. For example, if a drawback to the home is that it’s far from a shopping district or city center, you might make up for it by helping your customer ensure all appliances are included in the deal. This was Mejia’s strategy when closing on his investment property in the Peruvian countryside.

A caveat when working with picky buyers: Make sure their expectations are realistic, Mejia says. “There is no perfect property; nothing has it all,” he said. Your role is to help the customer achieve their retirement dream and set realistic expectations about the local market’s potential for rental cash flow.

Adjust Your Marketing to Reposition Yourself

If you’re new to attracting second-home buyers to your business, adjust your marketing to create a brand that resonates with your target audience. Whatever your brand says online will help them decide if you are the agent for them. “Your social media is also part of your brand; customers will Google you,” Mejia says.

Research who is searching for and buying property in your market. Is it mostly local people, or is there a second-home perspective? Sites such as realtor.com® can track who is searching for homes in your local market, and this may include international customers. If your market is attracting international buyers, be sure you are familiar with various communication technologies, such as Zoom or Skype, and your internet connection is secure.

Beware of Tax, SEC Guidelines

Consider improving your financial literacy so you’re in a strong position to help second-home buyers, who may need more help through the transaction than typical residential buyers or sellers. It’s essential to partner with a lender who understands how to do financing for second homes and knows the guidelines front and back, Mejia says.

Also, know how to protect your customers’ personal data. For example, the European Union has strict rules around how you collect and store such data.
Working with international vacation-home buyers opens the door for agents and brokers to face new risks related to income and property management. Here are some tips to follow:

Understand the risks and whether your insurance will cover them.
Refrain from working in areas you are not familiar with.
Understand protected classes and that you cannot suggest any preferences on race, class, sex or religion.
Always adhere to SEC Guidelines. It is unlawful to offer compensated investment advice unless you are a qualified and registered investment adviser.
Avoid giving tax advice, as secondary properties can get complex. “You are not CPAs,” Mejia told the summit crowd. “Expert tax guidance is essential” for your clients.
Understand your customer’s plan for using the property and the timeline. “Second-home buyers might not be in a rush,” he says. “Most second-home buyers are just waiting for the right opportunity, so you have to have patience.”

Lauren Pinch

Lauren Pinch is an editor for REALTOR® Magazine.

Content by Lauren Pinch

Why Is Economic Growth Often a Catch-22 for Housing?

Sun, 31 Dec 2023 16:00:00 GMT

NAR symposium brings together lawmakers, business leaders and community stakeholders to discuss how CHIPS investments create surging demand.

NAR Chief Advocacy Officer Shannon McGahn, far right, speaks with a panel of housing experts at NAR's Affordable Workforce Housing Symposium in Columbus, Ohio, on Tuesday.

If you build it, they will come.

That’s true when new businesses or investment opportunities come to an area, breathing new life into the local economy. For example, demand for housing often surges to accommodate a growing workforce. But there’s a catch-22 to economic growth: High demand can put pressure on home prices and, when combined with low housing inventory, lead to an affordability problem that challenges a new workforce.

The National Association of REALTORS® on Tuesday hosted a symposium in Columbus, Ohio—a prime example of a city facing explosive housing demand—to address these challenges. The Affordable Workforce Housing Symposium included a series of panel discussions with government, business and community leaders.

Community leaders said the CHIPS and Science Act, which was signed into law by President Joe Biden last year and seeks to drive investment in U.S. semiconductor manufacturing, research and development, has led to a recent upswing in investment in the Columbus metro area. A new plant is being built, which is expected to create 3,000 new direct jobs and 7,000 construction jobs.

“It’s not just here in Ohio but across the country,” Adrienne Elrod, director of external affairs for the CHIPS program at the Department of Commerce, said during the symposium. “We are going to see significant job growth because of CHIPS, and the affordable housing in those areas will be critically important.”

Indeed, “this unprecedented and exciting growth presents both opportunities and challenges for your communities, especially when it comes to affordable housing supply,” said NAR Chief Advocacy Officer Shannon McGahn. “REALTORS® can work with all stakeholders—from government officials to advocacy organizations to the private sector—to ensure that the economic growth that comes with the CHIPS investments is sustainable for the region and its workforce.”

Access to affordable housing is critical for workforce retention, speakers noted at the symposium. This means households need access to housing that doesn’t require more than 30% of their income, they noted. Elayne Weiss, special policy adviser for the Department of Housing and Urban Development, said the agency is working with state and local governments to incentivize additional housing and provide access to a growing workforce in places seeing CHIPS investments.

“We’re looking for new ways of financing, looking at what policies are getting in the way of building affordable housing, unlocking that supply and working with our partners at all levels,” Weiss said. “We all know the affordable housing crisis has been decades in the making, and it’s not going to be solved overnight. But we know that if we start now, we can really make some good headway.”

State and local officials, housing advocates and leaders in the business community also shared at the symposium how they’re attracting developers who are committed to building quality affordable housing and addressing measures to keep longtime residents in their communities.

“We want to make sure that there’s housing that’s affordable for all our workforce, and that spans a large number of income and family types and family needs,” said Erin Posser, assistant director of housing strategies for the Columbus Department of Development. “We want to make sure that the market is providing and that the supply we need is available in our community.”

Melissa Dittmann Tracey

Sustainable Home Upgrades for Owners on Any Budget

Thu, 30 Nov 2023 16:00:00 GMT

Here’s a breakdown by budget of the projects that can save homeowners money on energy bills—and the potential savings.

Energy-efficient home upgrades could help homeowners cut their annual energy bills in half while also reducing their home’s carbon footprint. But even though consumers are showing a greater interest in sustainability, nearly a third say they think green remodeling projects are too expensive, according to a survey conducted by Thumbtack, a home services website, and Rewiring America, an electrification nonprofit. Another 31% say they don’t know where to begin when considering green upgrades.

Still, low-cost sustainable projects could result in yearly savings of $200 on electricity bills, which adds up over time, the report finds. Despite their reluctance, nearly three-fourths of consumers say they’re prioritizing sustainability in their home projects this year either because they want to lower their energy bills (55%), help the planet (41%) or feel pressure from neighbors to do so (70%), according to the survey.

The findings piggyback off another recent survey from the National Association of REALTORS® that showed members find value in promoting energy efficiency in listings. The 2023 REALTORS® and Sustainability Report revealed that about a third of agents and brokers are using green data fields in their MLS to promote sustainable home features, believing them to be a selling point. Further, 17% of REALTORS® say high-performance homes—those that have undergone green improvements to increase health, operational efficiency and durability—saw an increase from 1% to 10% in the dollar value of offers compared to a similar, nonperformance home. That could equate to thousands of dollars.

How to Make a Home More Eco-Friendly

“The number one question we hear from consumers is where to start,” says Nicole Staple, head of market partnerships at Rewiring America. “Few people can afford to make these upgrades all at once, so the best first step is to take an inventory of the age of your appliances and then arrange for an energy audit of your home. From there, you can start to make a plan to switch to more efficient electric machines before your old appliances reach the end of their useful lives.”

Rewiring America and Thumbtack provide a breakdown of sustainable upgrades by budget and the potential savings that could result. They also factored in government incentives, tax credits and rebates that can help homeowners save on installation costs with some of these retrofits.

Budget: Under $500

Energy-efficient lighting
Estimated cost: $240.56
Potential annual savings: $200 (on yearly energy bills)
Smart thermostat
Estimated cost: $239.53
Potential annual savings: $100

Budget: $1,000 to $5,000

Install EV charger
Estimated cost: $2,230 (not including)
Potential annual savings: up to $1,000 through a 30% tax credit
Double-pane windows
Estimated cost: $1,569 (for 5-8 windows)
Potential savings: $600 with a 30% tax credit and $308 on yearly energy expenses

Budget: $5,000 to $10,000

Heat pump water heaters (two to three times more efficient than traditional systems)
Estimated cost: $5,280
Potential savings: $1,750 in upfront costs (depending on household income), up to $2,000 through a 30% tax credit and $120 in yearly energy expenses
New insulation
Estimated cost: $9,469
Potential savings: $1,600 (for income-eligible households) in upfront costs, a 30% tax credit for up to $1,200 per year and about $400 in yearly energy expenses
Rooftop solar panels
Estimated cost: $9,640
Potential savings: 30% on upfront costs through government incentives (an average of $2,892) and $100 in yearly energy expenses—even after financing the upfront cost of the panels

Budget: $10,000 to $20,000

Heat pumps (three to five times more energy efficient than traditional heating systems)
Estimated cost: $16,588
Potential savings: up to $8,000 (depending on household income) in upfront costs through government incentives, up to $2,000 in a 30% tax credit and $330 in yearly energy expenses

*Households who heat their home with electric resistance, fuel oil or propane can save over $1,000 on their yearly energy bills

Budget: $20,000 to $25,000

Complete all the projects listed above
Estimated cost: $23,000 (using incentives and rebates)
Potential annual savings: $2,500

Melissa Dittmann Tracey

Scammers Are Plotting to Sell Vacant Land Fraudulently

Wed, 01 Nov 2023 17:50:32 GMT

The FBI’s warns that losses from real estate and rental scams are steadily increasing, reaching more than $396 million last year. Scammers are plotting elaborate schemes to dupe potential buyers, property owners and real estate professionals. One of their latest targets is vacant land, warns Charlie Lee, senior counsel and director of legal affairs at the National Association of REALTORS®, in the latest “ Window to the Law ” video.

Scammers comb through public records and flag vacant parcels of land and properties that don’t have a mortgage or other lien, Lee says. Then, they’ll pose as the landowner, asking a real estate agent to list the property. “For the agent, the deal seems too good to pass up,” Lee says. “The seller is willing to sell below market value, the property generates great interest and they’ll quickly accept an offer—with a preference for a cash sale.”

Real estate attorney Victor Petrescu recently warned of an uptick in scammers known as “ title pirates ,” who use fraudulent or forged deeds and other documents to convey title to a property. Often, these scams go undetected until after the money has been wired to the scammer in the fraudulent sale. “These scams have defrauded buyers out of great sums of money and left property owners and brokers and agents having to sort out the mess,” Lee says.

Lee says the following are some red flags to watch for:

The “seller” requests to sell a vacant property for less than its fair market value.
The “seller” only communicates electronically. Many of these imposters are out of state or from a different country and will decline face-to-face meetings, Lee says.
The “seller” typically requests a remote closing using a remote notary—whom they’ll arrange on their own. Beware: The scammer may even impersonate the notary and provide fraudulent documents at closing, Lee warns.

Real estate pros should do their due diligence to verify that any person claiming to be the seller is the actual property owner, Lee says. Ask for multiple forms of identification and proof of ownership, and request a face-to-face meeting. Many of these scammers will only communicate electronically, he says. Test the seller’s knowledge about the property using information beyond what can be found in public records or online, Lee says.

Also, real estate pros should be cautious about any seller who arranges for a notary at closing on their own, Lee adds. Allow the title company to select a notary. If that’s not possible, make sure the notary is a “vetted, independent and approved remote online notary,” Lee suggests. Before transferring any funds in a transaction, ask the seller to provide a copy of a voided check with a disbursement authorization form.

Melissa Dittmann Tracey

Content by Nadia Evangelou

Housing Affordability Conditions Improved in January 2023 for the Third Consecutive Month

Tue, 31 Oct 2023 20:00:00 GMT

At the national level, housing affordability rose in January compared to the previous month, according to NAR’s Housing Affordability Index. Compared to the prior month, the monthly mortgage payment decreased by 3.3% while the median price of single-family homes declined by 2.4%, making home buying more affordable in January. The monthly mortgage payment decreased by $62 from last month.

Compared to one year ago, affordability fell in January as the monthly mortgage payment climbed 39.3% and median family income rose by 6.4%. The effective 30-year fixed mortgage rate was 6.35% this January compared to 3.51% one year ago, and the median existing-home sales price rose 0.7% from one year ago. Mortgage rates have declined for three consecutive months.

As of January 2023, the national index was back above 100, which means that the typical family can now afford to buy based on the median-priced home. An index below 100 means that a family with a median income has less than the income required to afford a median-priced home.

The income required to afford a mortgage, or the qualifying income, is the income needed so that mortgage payments on a 30-year fixed mortgage loan with a 20% down payment account for 25% of family income. The most affordable region was the Midwest, with an index value of 147.3 (median family income of $89,382 with a qualifying income of $60,672). The least affordable region remained the West, where the index was 77.6 (median family income of $99,366 and a qualifying income of $127,968). The Northeast was the second-most affordable region with an index of 111.6 (median family income of $103,153 and a qualifying income of $92,448). The South was the second most unaffordable region with an index of 103.0 (median family income of $83,388 with a qualifying income of $80,976).

A mortgage is affordable if the mortgage payment (principal and interest) amounts to 25% or less of the family’s income.

Housing affordability had double-digit declines from a year ago in all four regions. The South had the biggest decline of 25.3%, followed by the Midwest with a dip of 25.1%. The Northeast experienced a drop in affordability of 22.2%, followed by the West, which fell by 19.2%.

Nationally, mortgage rates were up 284 basis points from one year ago (one percentage point equals 100 basis points) from 3.51 to 6.35%.

Compared to one year ago, the monthly mortgage payment rose to $1,807 from $1,297, an increase of 39.9%, or $510. The annual mortgage payment as a percentage of income increased to 23.8% this January from 18.2% a year ago. Regionally, the West has the highest mortgage payment to income share at 32.2% of income. The South had the second-highest share at 24.3%, followed by the Northeast with a share of 22.4%. The Midwest had the lowest mortgage payment as a percentage of income at 17.0%. Mortgage payments are not burdensome if they are no more than 25% of income.

This week, the Mortgage Bankers Association released data showing that Mortgage applications increased 7.4 percent from one week earlier. Mortgage rates continue to move downwards, and median home prices have come down from the previous months’ highs. Both factors help affordability conditions bringing down monthly payments. Inventory levels are increasing, which will also tame some of the recent price growth. This will be helpful to potential home buyers going into the spring season, in which home sales increase.

Read the data release .

The Housing Affordability Index calculation assumes a 20 percent down payment and a 25 percent qualifying ratio (principal and interest payment to income). See further details on the methodology and assumptions behind the calculation .

Starting in May 2019, FHFA discontinued the release of several mortgage rates and only published an adjustable rate mortgage called PMMS+ based on Freddie Mac Primary Mortgage Market Survey. With these changes, NAR discontinued the release of the HAI Composite Index (based on a 30-year fixed rate and ARM) and, starting in May 2019, only releases the HAI based on a 30-year mortgage. NAR calculates the 30-year effective fixed rate based on Freddie Mac's 30-year fixed mortgage contract rate, 30-year fixed mortgage points and fees, and a median loan value based on the NAR median price and a 20 percent down payment.

Housing costs are burdensome if they take up more than 30% of income. The 25% share of mortgage payment to income takes into account that homeowners have additional expenses such as mortgage insurance, home insurance, taxes, and expenses for property maintenance.

A Home Affordability Index (HAI) value of 100 means that a family with a median income has exactly enough income to qualify for a mortgage on a median-priced home. An index of 120 signifies that a family earning the median income has 20 percent more than the level of income needed pay the mortgage on a median-priced home, assuming a 20 percent down payment so that the monthly payment and interest will not exceed 25 percent of this level of income (qualifying income).

Total housing costs that include mortgage payments, property taxes, maintenance, insurance, and utilities are not considered burdensome if they account for no more than 30% of income.

Michael Hyman

Research Data Specialist

Michael Hyman is a Research Data Specialist for the National Association of REALTORS®.

Content by Michael Hyman

Content with M ichael Hyman

Mom and Pop Business Owners’ Day: Landlords of Small Rental Properties

Sun, 30 Apr 2023 19:30:00 GMT

While March 29 is designated as Mom and Pop Business Owners’ Day, let’s take a look at some facts about mom-and-pop landlords and small rental properties. In real estate, mom-and-pops are owners of small rental properties (1-4 units), and they do the day-to-day management of these properties. But being a mom-and-pop landlord can be challenging, especially when someone is starting out and doing everything from evaluating and purchasing rental properties, finding and screening tenants, collecting rents, keeping the books, dealing with taxes, observing local laws, and performing routine maintenance and repairs.

Among 49.5 million rental housing units in the U.S., nearly 46% of them are small rental properties of 1-4 units. Over 70% of the small rental properties (1-4 units) are owned by individuals, and about 70% are managed by the same owners, defined as mom-and-pop landlords.

The U.S. Census Bureau conducts the Rental Housing Finance Survey every three years. The main purpose of this survey is to learn about the financial health of rental properties. Specifically, it provides insight into the financial, managerial, and physical characteristics of rental properties nationwide by covering topics such as property configuration, ownership and management, rental income and expenses, financing, and capital improvements and expenses.

10 things you need to know about small rental properties in the U.S.:

Nadia Evangelou

Senior Economist & Director of Real Estate Research

Nadia Evangelou is Senior Economist & Director of Real Estate Research for the National Association of REALTORS®.

Content with Nadia Evangelou

A Stunning Stat: There Are More American Households With Pets Than Children

Fri, 14 Apr 2023 16:00:04 GMT

Did you know there are currently more households with pets than with children? According to the U.S. Census, the share of families with children living in their homes under the age of 18 has continued to decline. The share with children in 2022 stands at 40%, down from 48% in 2002. This is likely for two reasons: birthrates overall have been declining (outside of the increase in the last year), and there is a large share of Baby Boomer households whose children may have left the nest already.

While children in U.S. households have declined in the last 20 years, pet ownership has steadily risen. According to the 70% of American households own a pet. This is up from 56% in 1988. Throughout the COVID-19 pandemic, Americans adopted pets for companionship and entertainment. The American Pet Product Association reports that dogs and cats are the most common household pets.

Americans are investing a significant amount of time and financial resources towards their animals. According to the share of Americans who are spending time on their pets and the amount of time spent have both increased. In 2003, 13.2% of Americans spent time with their pets daily. In 2021, that share has grown to 19.7% and 22.8% of women. The amount of time spent on pets has increased from .62 hours in 2003 to .77 hours in 2021. Furthermore, not only is additional time being spent with pets, but financial resources as well. According to the total U.S. pet industry expenditures has grown from $53.3 Billion in 2012 to $123.6 Billion in 2021.

Given the increased share of pets in households and the increased time and resources spent on pets, it is no surprise some home buyers consider their pets the most important factor when making home buying decisions. Factors such as proximity to the vet and outdoor space for pets is important for buyers with pets. Among all unmarried couples, nearly one-third of buyers considered their pet when deciding their neighborhood to purchase in compared to 14% of married couples. One-quarter of single women considered factored their pet into their neighborhood choice in comparison to 16% of single men. This trend is similar to the BLS Time Use Survey which found women are more likely to spend time with pets on a daily basis.

Among those who considered their pet to be very important to their neighborhood choice, they were also more likely to factor in a pet for other neighborhood features than those who did not. Pet lovers also purchased a home in an area with availability of larger lots or acreage and were more interested in convenience to parks and recreation areas and in walkability. This is not a surprise as it is likely not just the human who desires these neighborhood features but the pet themselves who need room to run and play.

For more trends on home buyers and recent activity of buyers, check out the full 2022 Profile of Home Buyers and Sellers report.

Jessica Lautz

Deputy Chief Economist and Vice President of Research

Dr. Jessica Lautz is the Deputy Chief Economist and Vice President of Research at the National Association of REALTORS®.

Celebrating the Single Women Home Buyers for Galentine’s Day

Fri, 31 Mar 2023 22:30:00 GMT

To celebrate Galentine’s Day this year, we will take a page from Leslie Knope’s book from Parks and Recreation and celebrate single women buying homes. These women surpass all odds in the housing market and purchase homes with lower household incomes in an increasingly unaffordable housing market. Let’s look at how they stack up compared to their single male counterparts.

Women have been second only to married couples in the home-buying market since NAR started data collection in 1981. This statistic is striking because up until 1974, women were legally prohibited from obtaining a mortgage without a co-signer. Before the passage of the Fair Housing Act’s prohibitions against “sex” discrimination in housing-related transactions, and the protections of the Equal Credit Opportunity Act, it was commonplace for a widow to need a male relative as a co-signer. Under federal law, women had no legal recourse for this or any other lending discrimination.

In 1981, 73% of home buyers were married couples, 11% were single women, and 10% were single men. Today those shares stand at 61% married couples, 17% single women, and 9% single men. The highest share of single women buyers was in 2006, when the share stood at 22%. Between 2016 and 2022, the share of single women has been between 17% to 19%. In 2010, the percentage of single men rose to a high of 12% but has stayed between 7% to 9% of buyers in recent years.The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

In recent years, an easy explanation for the rise in single women buyers was the drop in the share of Americans who are married. Using Census data(link is external), in 1950, 23% of Americans ages 15 and up had never been married. In 2022, that share stood at 34% of Americans. That translates into 37.9 million one-person households in the US today—29% of all households.

But then, why are women buying homes and men are not? For the possible answer to that, it is best to turn to who is buying and their household composition. Both men and women are most likely to say they are purchasing for the desire to own a home, but significantly more women purchase to be close to friends and family. Women are also more likely to report buying because of a change in a family situation, such as a divorce, death, or birth of a child. When collecting on whether or not a buyer is single now, a data point not collected is if the buyer was once married and is now widowed or divorced, but in both scenarios, the proximity to friends and family may be important to women.

Single women traditionally prioritize where their friends and family are in deciding where to buy a home. For 41 percent of women, their neighborhood choice is determined by the proximity to friends and family, compared to 35 percent of single men. Interestingly, men are more likely to cite retirement as a reason to purchase 18% compared to women at just 5%.

The second central question posed is finances. Women home buyers typically purchase a home as first-time buyers at a household income of $51,400 compared to single men at $64,100. While male incomes do not match that of married or unmarried couples, their higher incomes allow them more buying power than single women buyers. This is especially important when thinking of the recent mortgage interest rate increases and the rise in home prices. This may be one reason why the age of a single woman first-time buyer is a median of 38 while men have a median age of 37 as first-time buyers.

Given lower household incomes, women do make more financial sacrifices when purchasing. Thirty-nine percent of women make financial sacrifices compared to 37% of men who purchase homes. Common financial sacrifices include cutting spending on non-essential goods, entertainment, clothes, and even taking on a second job. These sacrifices only underscore how important homeownership is to women as these sacrifices all outpace those of male buyers. As noted in a previous blog, women are more likely to move in with friends or family before purchasing to avoid paying rent. These sacrifices may add up over several years, contributing to the slightly higher age.

One notable difference is the source of the downpayment. While savings and sales from the last home are the most common sources for single men and women, there are two notable differences in other sources. Men are more likely to sell stock or bonds, use their IRA, or take a loan from their 401k/retirement at 14% compared to women at 10%. At the same time, 11% of single women use a gift from a friend or relative for their downpayment compared to 8% of single men.

Regardless of how these single women enter homeownership, they are finding a way and doing so at a significant pace. They are to be celebrated. To them and to all buyers out there, a happy Galentine’s Day!

Jessica Lautz

Deputy Chief Economist and Vice President of Research

Dr. Jessica Lautz is the Deputy Chief Economist and Vice President of Research at the National Association of REALTORS®.

Love (and Home Buying) Brings Us Together: Married vs. Unmarried Couples in the Housing Market

Fri, 31 Mar 2023 22:30:00 GMT

Our last discussion on home buyers was dedicated to singles, but this one will look at couples making the home purchase together. While these home buyers may be celebrating Valentine’s Day in their new homes, let’s look at their experience in the housing market.

Married couples account for the largest share of home buyers at 61%, while unmarried couples account for 10% of the market. Unmarried couples are notably a sizeable share of the first-time buyer market at 18% of all first-time buyers, up from just 4% in 1985. Overall, the typical age of a married couple purchasing is 53, while an unmarried couple is 47.

Married and unmarried couples have a sizable leg up in a housing market stifled by both a rise in mortgage interest rates and home prices. Married couples who purchased a home as first-time buyers in the last year typically have a household income of $79,200, while unmarried couples usually have a household income of $72,500. These median incomes give both groups considerably more buying power than single home buyers.

Perhaps due to age differences and the proliferation of unmarried first-time buyers, unmarried couples are significantly more likely to make financial sacrifices to enter homeownership than married couples. In examining the sacrifices made by unmarried couples, this group more closely mirrors single home buyers than married couples. Both single buyers (46%) and unmarried couples (43%), for example, are almost as likely to cut spending on non-essential goods. Married couples are far more likely not to make any financial sacrifices at 64%.

The reasons cited for purchasing a home show how different married and unmarried couple home buyers can be. Both are most likely to purchase because they want to own a home of their own. However, the share is quite different: 36% for unmarried couples compared to 16% for married couples. Additionally, the desire to be close to one’s family and because of retirement are more common reasons to purchase for married buyers, while a change in a family situation is more common for unmarried couples.

Regardless of how home buyer couples celebrate Valentine’s Day, we hope they enjoy their new home in a new neighborhood. For all buyers who successfully purchased over the last year while facing tight housing inventory and affordability challenges, that is something to be celebrated. For more home buyers and sellers trends, check out the Profile of Home Buyers and Sellers.

Jessica Lautz

Deputy Chief Economist and Vice President of Research

Dr. Jessica Lautz is the Deputy Chief Economist and Vice President of Research at the National Association of REALTORS®.

National Association of Realtors Blog

Young Adults Moved Home, But Now are Moving Out

Wed, 15 Mar 2023 00:47:42 GMT

Images and content sourced from

The adages of young adults living in their childhood bedroom, above the garage, and in the basement have all rung true in the last two years. The good news for parents is that young adults seem to now be boomeranging back out of the nest.

In 2022, 15.6% of young adults aged 25 to 34 lived at home with family. In 2020, the share of young adults aged 25 to 34 living at home grew to the highest share recorded since 1960, 17.8%. Historically, between 1960 and 1980, the share of 25- to 34-year-olds living at home was less than 10%. Some young adults may have recently moved home due to the flexibility of remote work trends and to avoid paying high rents. Others may be at a family member’s home due to job losses or while obtaining higher education virtually. Regardless of the reason, this may provide a benefit to potential first-time home buyers.

It is possible that moving home allowed these young adults a financial boost that they would not have had otherwise. It could have translated into savings, paying down existing debt, and working on their credit score and debt-to-income ratio. Among student debt holders , 6% cited that the pandemic allowed them to pay off their student debt earlier or get closer to paying it off directly because they moved in with family and avoided having to pay rent. For some, it may have even allowed them the ability to save for a downpayment on a home.

When examining the trends historically, first-time buyers are most likely to rent before purchasing a home. This year the share of buyers that rented before buying remained the majority at 64%. But the share moving from a family member’s home shows a sizeable growth from 21% in 2021 to 27% in 2022. Since 2016, however, there has been an elevated share of buyers who are moving directly from a family member’s home and into homeownership. This compares to 12% to 15% between 1989 and 1995 when NAR first started collecting the data series.

For first-time buyers who lived at home first, about half are making rent payments to family. NAR does not collect whether or not this is fair market value rent, compared to simply contributing rental payments that may cover their share of utilities or groceries. By household composition, it is more common for single women and married couple first-time buyers to live with family before purchasing.

While living at home may not be an ideal, or even a long-term, scenario for many families, if prospective first-time buyers can move home before purchasing, this might financially help them save to purchase a home. The added flexibility of living with family allows a buyer to navigate the tight housing market with a limited affordable housing inventory. National months’ supply stands at just 2.9 months in December of 2022, and 57% of homes are selling in under one month. A potential buyer has the ability to wait for a more ideal home to enter the market that fits their needs.

While this option is available for some young adults, it does speak to a larger trend in the housing market. Those who can take advantage of willing family members to open their door, and those who cannot. As many workplaces transition to more in-office workdays from remote days, this could narrow the ability for many young adults to use this as a savings vehicle for their future homes.

Jessica Lautz

Deputy Chief Economist and Vice President of Research

Dr. Jessica Lautz is the Deputy Chief Economist and Vice President of Research at the National Association of REALTORS®.

National Association of Realtors Blog

All in the Family: Multi-Generational Home Buying

Wed, 15 Mar 2023 00:47:40 GMT

Images and content sourced from

Multi-generational home buying is a way for families to care for one another, support one another, and often buy a home that may have been previously out of reach. Multi-generational buying may be a home where families live in the same home with elderly parents, children who have boomeranged back home, or other extended family members. While this is not a new concept of living, it is one which has gained recent popularity.

This past year, NAR collected data in the Profile of Home Buyers and Sellers , which shows that multi-generational buying is back near an all-time high at 14%. This is up from 11% in the 2021 report. In 2020, the report found a low before the COVID-19 pandemic of 11%, followed by an immediate gain to 15% of all buyers.

Reasons to purchase a multi-generational home vary among first-time and repeat buyers. However, the shares purchasing a multi-generational home are nearly identical: fifteen percent of first-time buyers purchase a multi-generational home, as did 14% of repeat buyers.

For first-time buyers, who struggled to enter last year’s housing market, perhaps it is unsurprising that they are more likely to purchase a multi-generational home due to cost savings and for a larger home that multiple incomes could buy together. First-time buyers, who have a median age of 36, also are more likely to say their adult children have not yet left the nest. On the other hand, repeat buyers, who have a median age of 59, are more likely to say their adult children are now boomeranging back.

For both first-time and repeat buyers, about 30% report that caretaking or spending time with aging relatives is important. First-time buyers are more likely to state that spending time with aging relatives is important versus caregiving. While the data is not collected, it is possible this could mean assistance with childcare for parents, as well.

Among generations, it is most common for Gen Xers (born between 1965-1979) to purchase a multi-generational home. This may not be surprising as they may both be caring for aging parents and experiencing young adults boomeranging back at the same time. In the midst of this, it is not hard to imagine a Gen Xer needing to buy a larger home for all generations of the family to happily cohabit in one home.

It is also more common for minority home buyers to purchase a multi-generational home in comparison to White/Caucasian home buyers. Thus 18-19% of Black/African-American, Asian/Pacific Islander, and Hispanic/Latino buyers purchased a multi-generational home in comparison to 10% of White/Caucasian buyers. The most common reason for all buyers, regardless of race, was for caretaking and spending more time with aging relatives.

As we see the transition of the large Baby Boomer generation age into retirement, it will be interesting to see if they move in with their Millennial and Gen Z children or if they stay put in their own homes. The trend of multi-generational buying appears to be firmly established and one that could expand in the future.

Jessica Lautz

Deputy Chief Economist and Vice President of Research

Dr. Jessica Lautz is the Deputy Chief Economist and Vice President of Research at the National Association of REALTORS®.