Hawkhill Homes

🏡💡The evolving landscape of housing: innovations in flexible renting and co-ownership will be key to addressing affordability and building wealth - and catering to the rising demand from "Forever Renters"🌐 ⚡🚈"Change happens gradually, then suddenly". Insightful housing and renting trends in "The Rise of the Forever Renters" yesterday The Wall Street Journal 🌎 🛤️Americans who would traditionally be homeowners have become long-term renters, including some with no plans to ever buy a home. Renters are changing savings patterns, sparking new developments, and inspiring businesses. 📢🔑 The transformation of buildings into luxury apartments reflects a nationwide trend, with higher-income Americans opting for long-term rentals over traditional homeownership. As the demand for rental luxury grows, it sparks new developments and businesses catering to renters' evolving needs. ⏯️🔑Purpose-built rental communities, build-to-rent subdivisions, are on the rise, offering lifestyle choices without the burden of homeownership. The influx of higher-income renters, evident in the record number of millionaires renting homes, has led to a decline in lower-priced rental options. 🏦 🔑Financial planners suggest that forever renters need to adjust their investment strategies, exploring real estate investment trusts and other tradable securities for a diverse portfolio. 🐂🔑There are hundreds of new rental developments rising up to serve a wave of higher-income and older renters flooding into America’s towns and cities searching for luxury without commitment, retirement without feeling old and tidy lawns without owning lawn mowers. 🪙 🔑For those that aren’t buying homes out of choice, financial planners are preaching that they need to adjust. A simple portfolio that mixes stocks and bonds isn’t going to cut it for the forever renter. 🐂🏦 🔑These renters need to find other ways to invest in real estate, be it real-estate investment trusts or other tradable securities, to have the diversity needed for a healthy portfolio 💯🌄 In this dynamic housing landscape, innovative solutions and co-ownership models will play a crucial role in ensuring housing affordability and fostering wealth-building opportunities for all. 🏠💡 #HousingInnovation #RentingTrends #WealthBuilding #CoVista

💡Insightful cover story in this week's Barron's - "Homeownership is likely to remain out of reach for millions of Americans - Even With Rate Cuts and Help From D.C." Rate cuts and subsidies from Washington may help, but homeownership is likely to remain out of reach for millions of Americans. Navigating the Housing Market: Challenges and Opportunities in Today's Landscape 🏘️💡 Today's housing market presents a complex picture of challenges and opportunities. While affordability concerns and inventory shortages dominate headlines, there's a growing undercurrent of innovation and adaptation. For those willing to look deeper, the current landscape offers unique prospects, particularly in entry-level homes and alternative housing models. As we navigate these turbulent waters, it's crucial to recognize both the hurdles and the potential for positive change and growth in the housing sector. Key Statistics: 🚀 Home-builder stocks up 110% since early 2021 (Source: Market data) 📈 Average home prices increased by 38% in recent years (Source: National Association of Realtors) 🏗️ The country needs up to 7 million new houses to alleviate shortages (Source: Housing industry estimates) Insights: "There's no quick fix," says Alan Ratner of Zelman & Associates - A Walker & Dunlop Company, who doesn't see significant relief until 2026. However, this timeline presents opportunities for strategic investors and innovative thinkers. Susan Wachter, professor at The Wharton School School, emphasizes the importance of homeownership: "If you don't get into your starter home, it prolongs your period of rent and hinders your savings in the form of building equity." Opportunities: 🏠 Entry-Level Homes: With first-time buyers struggling to enter the market, there's a growing demand for affordable starter homes. Investors and developers focusing on this segment could see significant returns. 🔄 Innovative Housing Models: As traditional homeownership becomes challenging for many, alternative models are gaining traction. These include: 🏛️ Co-Ownership solutions 💻 Hybrid renting alternatives 🏙️ Community ownership 📅 Path to Ownership: rent-to-own services 🏭 Modular and prefab homes 💻 Technology: Proptech solutions that make homeownership more accessible or reduce construction costs will be game-changers in the current market. 🏛️ Government Initiatives: Proposed policies aimed at increasing housing supply and affordability could create new opportunities for developers and investors alike. While challenges persist, the housing market's fundamentals remain strong. For those willing to innovate and adapt, the current landscape offers unique opportunities to create value and address critical housing needs. #housinginnovation #communityownership #CoVista

📊 Recent data from Zonda's "Baby Chaser Index" reveals significant demographic trends impacting housing markets, with notable effects in Texas and Oklahoma. 🏘️ This shift, driven by intergenerational migration patterns, is reshaping real estate dynamics in key metropolitan areas. 🔍 Key Findings: 25% of baby boomers plan to retire near their adult children and grandchildren, a trend termed "Baby Chasing." 👵👴➡️👨👩👧👦 🤠 Texas markets dominate the index: 🌟 Austin: Ranked #1 for 4 out of 5 years 🥇 Dallas: Secured the #4 position 🏙️ Houston: Placed in the top 10 🛢️ Oklahoma City: Emerging as a significant player, ranking #9 and consistently in the top 10 since 2020. 🚀 Market Highlights: Austin: Continues to attract millennials despite challenges in the tech sector, with boomers following suit. 💻🌵 Dallas: Leading in master-planned communities, offering a balance of urban amenities and suburban space that appeals across generations. 🏙️🏡 Houston: Strong showing in the index, reinforcing Texas's overall appeal in this demographic shift. 🌆 Oklahoma City: Positioned as an affordable alternative to more expensive markets, with major development projects underway and set to host part of the 2028 Olympics. 🏗️🏅 Implications: This demographic shift is creating multigenerational demand in these markets, driven by: 💰Relative affordability compared to coastal markets 💰 💼Strong job markets, particularly appealing to millennials 💼 👴 Lifestyle amenities attractive to both younger and older generations 👶 #babychasers #demographicshifts

"This is a soft landing based on economic data" according to Torsten Slok, Chief Economist Apollo Global Management, Inc. 🏦 The bottom line is that the US economy is not in a recession, and there are no signs of a recession on the horizon 🏦 Looking at the latest incoming data, the facts are the following as of September 7th: 1. The unemployment rate declined in August, and looking at the establishment survey and the household survey, it is difficult to see strong signs of a slowdown in job creation 2. Wage growth accelerated to 3.8% in August and wage growth remains sticky well above pre-pandemic levels 3. Daily data for debit card transactions shows that consumer spending has been accelerating in recent weeks, driven by spending on clothing, food services and drinking places, sporting goods, and motor vehicle and parts dealers 4. Weekly data for retail sales went up last week and remains solid 5. Jobless claims have declined for several weeks 6. Continuing claims have declined for several weeks 7. Default rates and weekly bankruptcy filings are trending down 8. The Fed’s weekly GDP model suggests GDP is 2.4% and the Atlanta Fed GDP Now says GDP this quarter will be 2.1% 9. Weekly data for S&P 500 forward profit margins shows that profit margins are near all-time high levels 10. The stock price of staffing firms is rebounding, which suggests that we could get a rebound in job openings   #marketvolatility #economicdata

Recent Redfin data shows a resurgence in starter home sales, with pending sales climbing +10.2% year-over-year in July 2024, while other price tiers fell 🏘️Fifteen month lows in mortgage rates: One reason starter home pending sales may be strengthening is the recent fall in mortgage rates, which began in mid-July First-time homebuyers, who make up a significant proportion of the starter-home market, are more sensitive to rate drops as they are less likely to have a large down payment, meaning rate changes have a greater impact on their monthly payments 🏘️ “The overall market remains sluggish, but we are beginning to see first-time homebuyers come off the sidelines, buoyed by falling mortgage rates and an increased number of homes hitting the market,” said Redfin Senior Economist Sheharyar Bokhari. “Not only do you have young families and investors looking at starter homes, you also have buyers who have been forced to consider less-expensive options due to near-record home prices...” Key Takeaways 📊 Rising Demand: Pending sales of starter homes reached their highest level since October 2022, outperforming middle and upper-tier homes 💲 Moderate Price Growth: The typical U.S. starter home sold for $250,000 in July, up 4.2% YoY 📦 Inventory Increase: Starter home inventory increased by 18.9% YoY, helping to balance the market 🔑 Affordability Factor: Recent drops in mortgage rates have made starter homes more accessible to first-time buyers ⚖️ Market Balance: Increased inventory is satisfying demand without causing price spikes, creating opportunities for both buyers and sellers Starter homes are proving to be resilient - for investors and homebuyers alike, these properties offer a blend of affordability, growth potential, and market stability 🏘️💼

📊 Housing Market Insights: Opportunity in Scarcity? 🏘️ The US housing market is facing significant challenges, but with challenges come opportunities. A summary of key themes from The New York Times deep dive into the housing shortage "What Kalamazoo (Yes, Kalamazoo) Reveals About the Nation’s Housing Crisis" and why this could present a long-term opportunity for SFR investors: Key Themes: 🏗️ Chronic Undersupply: Since 2010, we're building only 1.1 million homes annually vs. the 1.6 million needed for population growth 🏦 Tighter Lending: Post-2008, stricter lending standards affect both developers and homebuyers 🏘️ Shifting Development Patterns: Builders are moving away from speculative building to pre-sold properties 🏙️ Widespread Impact: The housing crunch has spread beyond high-cost cities to places like Kalamazoo, Michigan 📋 Policy Changes: Cities and states are adjusting zoning laws and offering subsidies to boost housing supply SFR As A Good Long-Term Investment: 📈 Supply-demand imbalance: We're building far fewer homes than needed, suggesting sustained demand 🏠 "Naturally occurring affordable housing" is dwindling as older homes get renovated or fall into disrepair 💼 Middle-class affordability issues are spreading, potentially increasing the renter pool 🔨 Cautious builders mean new supply will likely remain constrained, supporting property values 📅 The housing shortage is a long-term issue, potentially providing stable returns for patient investors #SFR #seculartrends #housingshortage https://lnkd.in/e-2SEQhx

🌎 ⏯  The Future of Living: Renting Everything? 🏡 💼 🚀 As Ownership becomes out of reach for many, a Reimagined Future for renting focused on flexibility and modern day hybrid ownership is emerging as a major trend, adopted first by a younger generation and becoming mainstream 🚀  CoVista.co Hawkhill Homes 🦅 😎  The The Wall Street Journal highlights the major trend among younger generations that's reshaping our relationship with ownership - in "the Extreme Renters Who Own Nothing, Not Even Their Jeans" August 17 😎 💯 Key Takeaways 💯 🔑  Extreme renting - not just homes, but furniture, clothes, and even kitchenware 📱  Prioritizing flexibility over ownership in various aspects of life 💰  Seeking affordability in a high-cost world 🌿  Embracing sustainable options like rentable Christmas trees 🚗  Rethinking car ownership through leasing and short-term rentals 📸 Professionals renting high-end equipment instead of purchasing 🔢 Key Summary 🔢 🏘 Housing market challenges are fundamentally reshaping attitudes towards ownership 🏘 🌟 Tech-enabled rental services are rapidly expanding beyond traditional categories for wealth building and hybrid ownership CoVista.co 🌟 🚁 Some see significant cost savings, while others value the ability to easily relocate or upgrade 🚁 👩🔧 This trend spans across industries - from fashion to electronics to home goods 💃 👨👩👦  Americans are embracing a rent-first lifestyle, preferring to try things out rather than committing to ownership 👨👩👦 🍀  More than one in four Americans say they rent or lease their car, clothing, electronics or furniture, according to a new survey commissioned by the personal-finance firm Credit Karma 🍀 👾  Some extreme renters say they can save money by not owning their high heels, hand drill or sofa. With prices for so many things much higher than they were a few years ago, it can feel like a cost saver to pay for maternity clothes for a few months or camping equipment for a weekend instead of buying them outright 👾 ⚡ A lot of people say they just prefer the flexibility—even if they end up spending more money over time. After all, it is a lot easier to pick up and move if you don’t have to take the kitchen table with you ⚡ #nextgenSFR #alignedincentives #foreverrenters

📊 Recent reported Q2 earnings from public SFR REITs Invitation Homes and AMH showed continued resilience for SFR and housing, and also highlights the continued need for operational excellence. Both companies raised their full-year 2024 Core FFO guidance, demonstrating confidence in their business models and market conditions. ⚡ Tailwinds from improved affordability with borrowing costs dropping (10-year hitting the lowest level since June 2023 at 3.765%), from strong demand fundamentals for rental housing, and from an on-going supply shortage of housing provide strong support for the sector - in light of the current volatility in today's broader market environment. ⚡ ⏩ However, property expenses remains a focus with "Turns & Repairs and Maintenance" along with elevated taxes in certain markets for INVH. ⏩ 💯 Controlling property-level expenses has been a top priority for most Single Family Rental investors and operators over the past decade. Overall, increased visibility into portfolio-level operations and property-level insights, coupled with local, on-the-ground operations, will truly differentiate the next generation of best-in-class SFR operators. 💯 Hawkhill Homes 🏡 Invitation Homes vs AMH 🏡 Both leading single-family rental companies reported solid Q2 results: Invitation Homes ✅ Total revenues: ↑8.8% YoY to $653M ✅ Core FFO per share: ↑7.3% YoY to $0.47 ✅ Same Store NOI: ↑3.8% YoY ✅ Same Store Average Occupancy: 97.5% ✅ Blended rent growth: 5.0% Dallas Tanner, CEO: “...financial and operating results demonstrate the solid performance of our teams and satisfaction and loyalty of our residents. Millions of families across America rely on the convenience and flexibility of leasing a single-family home, and we’re proud to be the premier choice among many available options. Through our best-in-class operating platform, Genuine Care for our residents, and our strategic approach to growth — including our burgeoning third-party management business and our valuable homebuilder relationships that are developing needed new housing communities — we believe we remain well positioned to continue our industry-leading occupancy, strong growth, and unwavering commitment to further elevating the resident experience. AMH: ☑ Rents and other single-family property revenues: ↑7.1% YoY to $423.5M ☑ Core FFO per share: ↑8.5% YoY to $0.45 ☑ Core NOI (Same-Home): ↑5.9% YoY ☑ Same-Home Average Occupied Days: 96.6% ☑ Blended rent growth: 5.3% "The consistency and predictability of the AMH platform was on full display in the second quarter. Our teams did a great job executing across all areas of the business, driving positive impacts on both the topline and controllable expenses..." stated David P. Singelyn, Chief Executive Officer at AMH. "...This quarter was another example of the earnings power of the total AMH platform and our ability to consistently create shareholder value now and into the future." #SFR #propertyservices #bestinclassoperations

🚡 Momentum continues for Texas and Dallas becoming powerhouses of the global economy, and a formidable finance capital in the US. On the heels of SpaceX and X's announced move to Texas, a recent article from leaders Fortress Investment Group highlight their involvement in the founding of the Texas Stock Exchange (TXSE) along with several other founding members including BlackRock Citadel. 🚡 🏦 TXSE aims to transform Dallas into the new capital of capital. This innovative exchange promises to deliver commercial benefits and a competitive alternative to NYSE and NASDAQ, prioritizing retail investors and lowering fees for all. 🏦 🐂 Dallas is emerging as a prime investment hub, and here’s why: 🐂 💡 Business-Friendly Environment: 💡 Texas offers a supportive climate for businesses, free from onerous taxes and regulatory hurdles, making it a top destination for corporate relocations. 💵 Economic Strength: 💵 Texas boasts the world’s eighth-largest economy and is the number one job creator in the U.S. Over the past five years, more corporate headquarters have relocated here than any other state. 🐴 Financial Sector Growth: 🐴 Dallas has surpassed New York in financial and banking sector employment, with major firms like JPMorganChase, Charles Schwab, Goldman Sachs, and Wells Fargo expanding their presence. 👑 Fortress Investment Group’s Commitment: 👑 Fortress has chosen Dallas as its co-headquarters, recognizing the city’s unmatched combination of professional opportunities and quality of life. With significant local investments, including in the Texas Stock Exchange, Dallas is poised to become a dominant financial center. 🚀 Innovative Projects: 🚀 Companies like MP Materials and Mammoth Freighters have chosen Dallas for their groundbreaking ventures, further establishing the city as a key player in the global economy. 🌎 Dallas, with its business-friendly environment and booming economy, is poised to become a dominant financial center. 🌎 https://lnkd.in/eWnksmb7 #dallaseconomicstrength #texasfinancialhub

💡 Recently released Harvard University "State of the Nation's Housing 2024" report highlights the pressing challenges and opportunities faced by homeowners and renters across the U.S. Harvard Joint Center for Housing Studies (June 2024) 💡 🔑 The study highlights several key points: 🔑 📈 Rising Costs: Home prices have surged to new highs, with the median sales price now about five times the median household income. Meanwhile, rental costs have also seen significant increases, creating unprecedented affordability issues. 📈 👫 Homeownership Challenges: Elevated interest rates have pushed mortgage costs to 30-year highs, making homeownership increasingly difficult, particularly for first-time buyers and households of color. 👫 🏘 Cost Burdens: Both renter and homeowner cost burdens have hit record highs, with millions of households spending over 30% of their income on housing. This strain is exacerbated by rising insurance premiums and property taxes. 🏘 🏢 New Multifamily Units: A surge in multifamily completions has slightly cooled the rental market, but operating costs for property owners have risen, impacting profitability and future project financing. 🏢 🏔 For-Sale Inventory Shortages: The shortage of existing homes for sale has driven more buyers toward new construction. However, the development of affordable, entry-level housing remains constrained by regulatory and economic barriers. 🏔 🌋 Homelessness and Climate Change: The number of people experiencing homelessness has reached a record high, and climate change poses increasing risks to the housing stock, with a growing number of properties located in disaster-prone areas. 🌋 ⚡ Compelling Investment Opportunity in Housing, Single-Family Rentals (SFR) ⚡ 🦅 🚵♂️ Hawkhill Homes Innovative housing models address homeownership and affordability challenges and provide flexible living solutions through CoVista.co (coming soon) 🦅 🚵♂️ 🔦 In this challenging housing landscape, Single-Family Rentals (SFR) present a promising investment opportunity. With homeownership out of reach for many, SFRs cater to the increasing demand for quality rental homes, providing a stable income stream and potential for appreciation. 🔦 🚦 Additionally, SFR investments contribute to alleviating the housing crisis by offering more families access to comfortable and affordable living spaces. Addressing the nation’s housing issues will require a coordinated effort from policymakers, the private sector, and nonprofits. 🚦 #stateofhousing #innovationaddressingaffordability #CoVista #coownership #comingsoon