24% Renters Wants to Buy

Good morning, Dwellers! Welcome to another edition of Dwellings Digest, a realtor and investor driven newsletter simplifying real estate, exploring the economy-stock-real estate link, adding a fun twist with niche topics and more. Enjoy!

Quote of the day - “Real estate is the key to building lasting wealth”.

In today’s edition - Seattle leads Labor Day travel with a 30% booking surge, fueled by Alaska cruises. Domestic trips are up 9%, while stable gas prices boost road trips. U.S. home values hit a record $49.6 trillion, driven by new construction and rising equity. Plus, learn how California’s gas taxes and New Jersey’s property value gains are shaping the market. Don’t miss the details!

If you missed yesterday’s newsletter, click here

Mortgage & REITS

New? Join our newsletter – no cost!

🏛️ Economic Sentiment

Labor Day Travel is Up 9% Year-Over-Year

• Seattle Leads Labor Day Travel: Seattle ranks as the top Labor Day weekend destination, with bookings up by nearly 30% from last year, driven by continued interest in Alaska cruises.

• Domestic Travel Growth: Domestic travel for Labor Day is up 9% year-over-year, with popular destinations including Orlando, New York, and Las Vegas. The cost of domestic travel has decreased by 2%, providing travelers with more affordable options.

• Steady Gas Prices: Gas prices remain stable at around $3.50 per gallon, down from $3.81 last year. AAA notes a decline in overall gas demand, although potential hurricanes could still affect prices as the season progresses.

🎢 Impact on Real Estate

U.S. Housing Market Hits Record $49.6 Trillion Value

• Record-Breaking Growth: The total value of U.S. homes surged by $3.1 trillion in the past year, reaching a record $49.6 trillion, driven by a 6.6% year-over-year increase in market value.

• Metro Area Trends: New Jersey metros near NYC led the gains, with New Brunswick and Newark recording over 13% increases in home values, while Cape Coral, FL was the only metro to see a decline, dropping 1.6%.

• Generational Wealth Shift: Millennial-owned home values skyrocketed by 21.5% to $8.6 trillion, outpacing all other generations and reflecting their growing dominance in the home buying market.

🎙️ RE Spotlight

24% of Renters “Seriously Considered Buying” Before Renting

• Affordability Barrier: 76% of long-term renters cite affordability as the primary reason for renting instead of buying, with 89% unable to afford the downpayment for a home purchase.

• Market Timing Concerns: 69% of renters who considered buying believe it's not a good time to purchase due to high housing prices, with 94% reporting prices in their desired area are too steep.

• Millennial Priorities: 85% of Millennial renters find homeownership important within the next three years, yet 77% plan to move soon, highlighting the urgency in addressing market barriers.

✈️ Travel

🏕️ Niche-RE

Maine's Section 8 Housing Program on Hold - Impacts 3,600 Households

• Funding Shortfall: Maine's Section 8 Housing Choice Voucher program, with a $38 million budget, has exhausted 105.5% of its annual allocation by May 2024, forcing housing authorities to pause the program and leaving hundreds of families without critical support.

• Inflation Impact: Due to a zero percent budget increase from HUD to address inflation, MaineHousing and other local authorities are struggling to meet rising demand, highlighting the need for a 3-4% budget boost typically provided in past years.

• Program Reach: The temporary suspension affects over 3,600 households currently relying on the voucher program across Portland, Westbrook, and Brewer, with a potential restart not expected until early 2025, pending federal budget adjustments.

 🩺 Nursing Ownership

Study Reveals - Impact of Nursing Home Ownership Changes on Staffing and Quality Ratings

• Ownership Changes & Quality Decline: Nursing homes that changed ownership saw a 0.1-point drop in their overall 5-star quality rating, driven by a 0.2-point decrease in staffing levels, particularly for registered nurses.

• Staffing Reductions After Acquisitions: The study highlights a notable decline in registered nurse hours per resident after ownership transitions, raising concerns about the quality of care provided under new management.

• Call for Greater Transparency: Researchers urge the CMS to enhance transparency by adding ownership information to their 5-star comparison site, empowering families with more informed choices in nursing home care.

🖼️ Chart-Tastic

🌍 Dwelling of the Day

Desert Skies

Link to Listing

And…that's a wrap on this edition!

Got questions or feedback? write to us [email protected] - we'd love to hear from you.