Redfin: The emotional and financial stakes of buying a home have never been higher
Who better than to psychoanalyze the housing frenzy than Redfin’s CEO?
Consider how the pandemic has been good for Redfin — its stock has quintupled since the middle of March 2020. (The company says 86 percent of furloughed employees have returned.)
And CEO Glenn Kelman, who oversees an army of more than 4,000 real-estate agents across the country and a team of data scientists and economists, has emerged as one of the housing market’s best-informed observers.
Curbed published an interesting deep dive into Kelman’s history with housing. And it’s worth taking a moment to read it, beginning to end.
While we all have our own opinions of the Great Recession subprime meltdown and the COVID-19 lockdown’s impact on housing, Kelman’s take is unique in that it includes his missteps, both personally and professionally, under the scope of housing event.
For example, Redfin’s chief economist, Daryl Fairweather, and her colleague Christian Taubman told Curbed that the company’s surveys find two in five consumers think climate change will affect the value of their home within five years.
How does Kelman take this stat: He feels that means three in five consumers are not concerned with climate change.
And that’s a different take altogether.
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So it begins: Rents skyrocket, forcing people to the brink of eviction
The end of the federal ban on evictions came amid soaring rents that make it harder for people to find new places to live.
Tenants and advocates have dreaded a wave of evictions that was predicted to follow the end of the federal ban on evictions during the pandemic.
Yet in many areas nationwide, eviction filings have increased only moderately since the Supreme Court ruled President Biden’s extension of the eviction moratorium unconstitutional. (NYT, paywall.)
BUT NOTE: Evictions remain well below prepandemic averages, according to the Eviction Lab at Princeton University.
Yet, getting good data on where low-to-moderate homeownership initiatives to this population remain elusive.
Furthermore, those numbers do not capture evictions that were filed during the pandemic but are only now being executed — right as rents surge far beyond prepandemic prices and the budgets of many renters.
Rents rose 10.3 percent annually in professionally managed apartments in the third quarter of 2021, according to data from RealPage, a real estate data analytics firm, as vacancy rates plunged below 3 percent for the first time in three decades. Adjusted rents rose by $150 from the start of the pandemic to $1,580.
The good news is those numbers do not capture prices of units owned by smaller landlords, which tend to be more affordable.
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Arizona housing is still booming, due to one important demographic
Arizona’s housing market isn’t the only thing booming. So is Hispanic homeownership, according to a new market research report.
(Here is the link but you’ll have to answer THREE survey questions before it will let you access the content.)
“Arizona is adding Hispanic homeowners faster than any other state in the nation”, said Marcela Fuentes, treasurer at the Tucson Association of Realtors.
“The Hispanic community in Arizona is investing and consuming more and contributing to higher homeownership,” Fuentes adds. “Between 2020 and 2040 it is estimated that 70% of the new homeowners will be Latino.”
The recently released 2021 comprehensive Hispanic Market Research Report — covering Pima, Santa Cruz and Cochise counties — shows that in the past 10 years, homeownership among Tucson-area Hispanics has grown 12%, while homeownership has declined 11% for non-Hispanics.
According to the Claritas Knowledge Center, Tucson-area Hispanics represent a large share of the total population: Pima County has 415,174 Hispanics (39%), Santa Cruz County has 39,479 Hispanics (85%), and Cochise County has 46,740 Hispanics (37%).
In this designated market area (DMA), since 2010, the number of Hispanics in Tucson has grown 19%. The report also highlights that the Hispanic population grew significantly between January 2020 and January 2021. in the next 5 years, the projected growth is 12% — 5 points over the non-Hispanic population.
Additional data shows that Hispanics have larger households, averaging 3.5 persons per home compared to the non-Hispanic average of 2.6%. Also, 89% of this population are of Mexican descent.
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