When it comes to the topic of real estate in America, the Las Vegas housing market often emerges as a point of discussion. Known for its neon lights, bustling casinos and luxury hotels, Las Vegas also presents a residential backdrop that is just as dynamic and ever-changing. From market trends to environmental risks, let’s take a comprehensive look at what the Las Vegas housing market has in store for potential buyers, sellers and investors.
The Las Vegas housing market today
First, let’s talk numbers. Currently, the Las Vegas housing market sits in a somewhat competitive niche, making it an interesting ground for buyers and sellers. Homes here are generally on the market for around 35 days, a noticeable increase from 23 days last year. They receive around two offers before the ink dries on the dotted line.
What’s striking is that the median sale price for homes in the Las Vegas housing market is $415,000 — a 2.4% decrease when compared to last year’s figures. However, it’s worth mentioning that the number of homes sold actually inched up by 1.3%, from 934 to 946 homes.
Affordability
A closer look at the numbers reveals that the median sale price per square foot stands at $247, which is a slight 1.6% decrease from last year. For those eyeing the Las Vegas housing market for potential investment, this could mean that now might be a reasonable time to step in.
Homes are selling for about 1% below the list price, giving a little wiggle room for negotiation. The sale-to-list price ratio sits at a solid 98.8%, a minor but interesting 0.48-point drop from the previous year.
Climate impacts on the Las Vegas housing market
Let’s switch gears and discuss something increasingly important in real estate — climate. Las Vegas isn’t just about arid desert landscapes. Las Vegas has some substantial environmental challenges that homeowners need to consider.
According to the First Street Foundation, 5% of properties are at risk of flooding over the next three decades. A substantial 27% face wildfire risks, which can’t be taken lightly given the global uptick in extreme weather events. Astonishingly, a staggering 95% of properties in the Las Vegas housing market are at severe risk due to heat. If you’re eyeing a long-term investment, these aren’t just numbers; these are lifestyle factors that could impact the future value of homes in Las Vegas.
Transportation
Another point to consider is the city’s transportation infrastructure. Walkability and availability/reach of public transport can significantly influence the attractiveness of a residential area.
Las Vegas scores 42 out of 100 on the Walk Score®, showcasing a largely car-dependent environment. Its Transit Score® is just 36, making public transportation a less convenient option for daily commuting. The Bike Score® stands at 46, indicating that the city is only somewhat bike-friendly.
Las Vegas housing market compared to national trends
Zooming out for a bit, the median sale price in the Las Vegas housing market is about 2% lower than the national average. The overall cost of living in the city is also 1% lower than what you would expect to see nationwide.
The Las Vegas housing market is worth your attention
The Las Vegas housing market presents a mixed bag of opportunities and challenges. While prices per home and per square foot are on a minor decline, the number of homes sold has seen a slight upswing.
It’s clear that the Las Vegas housing market is at an interesting juncture. Whether you’re an eager buyer, a potential seller or an observant investor, staying tuned to these trends could be the key to making savvy decisions in a fluctuating market. Just like a night at the casino, the Las Vegas housing market can offer high stakes and big wins — but you need to play your cards right, and it pays to keep an eye on the ever-changing landscape.
The rental market in Las Vegas
Just as the Las Vegas housing market offers tons of opportunities for buyers and sellers, the rental market in Las Vegas paints its own fascinating portrait. For renters contemplating a move to the Entertainment Capital of the World, or for investors considering the potential for income-generating properties, understanding the nuances of this rental market is key.
The current state of Las Vegas rental prices
As of September 2023, the average rent for apartments in Las Vegas ranges from $874 for a studio to $1,462 for a two-bedroom apartment. Interestingly, there is a downward trend in rental prices; the average rent for a studio apartment has declined by 1% to $874, while one-bedroom and two-bedroom apartments have seen more significant decreases of 8% and 11%, respectively.
These declines raise interesting questions about the rental market. It could signify that more people are opting for home ownership, reflecting trends in the Las Vegas housing market where home prices have slightly decreased. Alternatively, it may indicate an increased supply of rental properties, which puts downward pressure on rental costs.
Neighborhood trends in the Las Vegas rental market
Different neighborhoods offer diverse rental options. For instance, in Centennial Hills and Lone Mountain, the average rent for a studio apartment hovers around a steep $1,646 but has decreased by 3% over the year. Contrastingly, in Northern Strip Gateway, the average studio rent is a far more affordable $550.
Comparing Las Vegas to nearby cities
When we compare the Las Vegas rental market to neighboring cities, it’s evident that Las Vegas provides a middle-ground option in terms of rental costs. For example, Henderson, a nearby city, has an average studio rent of $1,442, which is considerably higher than the Las Vegas average.
Apartment price ranges: Where does demand lie?
Further dissecting the rental landscape, the highest proportion of apartments — 45% — falls in the $2,101 and above range. Apartments ranging from $1,501 to $2,100 make up 32%, and those priced between $1,001 and $1,500 contribute to 17% of the market. Interestingly, only 7% of apartments are in the $701 to $1,000 range, and virtually none are available for $500-$700.
Affordability in the Las Vegas rental market
When it comes to affordability, Northern Strip Gateway, Downtown and Huntridge stand out as the most budget-friendly neighborhoods, with average one-bedroom rents at $800, $925 and $950 respectively. This contrasts sharply with the city average of $1,340 for a one-bedroom apartment, offering cost-effective options for those willing to compromise on location.
The Las Vegas rental market at a glance
The rental market in Las Vegas offers a range of options for various budgets and lifestyle needs, aligning well with the trends seen in the broader Las Vegas housing market.
Whether you are an aspiring tenant or an investor looking to dive into the rental market, Las Vegas has a ton of opportunities. As with home ownership, understanding the nuances in rental trends — from neighborhood variances to overarching annual changes — can be the key to making a savvy move in the dynamic landscape of the Las Vegas rental market.
A native of the northern suburbs of Chicago, Carson made his way to the South to attend Wofford College where he received his BA in English. After working as a copywriter for a couple of boutique marketing agencies in South Carolina, he made the move to Atlanta and quickly joined the Rent. team as a content marketing coordinator. When he’s off the clock, you can find Carson reading in a park, hunting down a great cup of coffee or hanging out with his dogs.
Here’s what you need to know to secure a home in Austin, Texas.
Welcome to the ever-changing landscape of the Austin housing market. Known for its quirky culture, burgeoning tech industry and eclectic lifestyle, Austin has been a safe bet for real estate investments for the past decade-plus.
However, as we venture past the midway point of 2023, Austin’s real estate climate is experiencing some intriguing twists. Whether you’re a potential homeowner, a first-time seller or an investor eyeing the Austin housing market, buckle up — there’s a lot to unpack.
Median sale price
The median sale price of a home in Austin is a meaty $571,000. This may sound impressive at first glance, but when you stack it against last year’s figures, there’s a 9.94% year-over-year decrease. This pivotal number is a heartbeat monitor for the Austin housing market, and right now, that beat is slowing down a bit.
So, what does this drop really signify? Is it a sign of market stabilization or a canary in a coal mine?
Average time on the market
A home in the Austin housing market now spends an average of 48 days on the market before being sold. This is a significant increase from the 34-day average of 2022. While the Austin housing market remains competitive, it’s evidently losing some of its previous ferocity. If you’re a buyer, you might find this elongated timeline a tad comforting.
Volume of sales
Let’s talk numbers — 883 homes were sold in Austin in July 2023. This is a 3.8% decline from the previous year. Though the decline is marginal, in the world of the Austin housing market, even a small drop can ripple across the real estate pond.
Opportunity in the Austin housing market
In yesteryears, the Austin housing market was practically a gladiator arena for buyers. Homes would receive multiple offers, almost like suitors vying for a rose in a reality show. Now, the terrain seems a bit more even.
Homes in Austin are selling for about 3% below the list price, and the Sale-to-List Price ratio has declined by 2.6 points to 97.5%. To put the cherry on top, only 17.1% of homes are now selling above the list price — a stark contrast to previous years.
Austin housing market migration
Here comes the really juicy stuff: migration patterns. About 29% of Austin homebuyers are planning their exit, while a more substantial 71% are committed to staying in Austin. On the other hand, people are flocking to Austin from metros like San Francisco, Los Angeles and Chicago. It’s a fascinating migration dance that’s shaking up the Austin housing market dynamics.
But where are Austinites going? Turns out, they have their sights set on places like San Antonio, Denver and Corpus Christi. Whether it’s the allure of a different Texas city or the Rocky Mountain high, Austin’s outbound traffic is certainly something to keep an eye on.
The Austin lifestyle
Let’s not forget why people love Austin in the first place. The city boasts schools like Forest Trail Elementary and Canyon Creek Elementary, rated 10/10 by GreatSchools. The Austin housing market remains a family-friendly arena.
However, climate risks, like moderate flood and fire factors, are creeping into the Austin housing market narrative. Plus, a severe risk of heat waves over the next 30 years is something the Austin housing market simply cannot ignore.
The Austin housing market at a glance
The Austin housing market of 2023 is not what it used to be, but it has not entirely lost its luster either. Prices are more balanced, homes are staying on the market a bit longer and new migration patterns are reshaping its demographics.
For buyers, sellers and investors, understanding the nuances of the Austin housing market is essential for making informed decisions. The market may be in a cooler state, but its complex interplay of factors keeps it as fascinating as ever.
Renting in Austin
So far, we’ve been talking about buying and selling homes. But what about those of us who aren’t ready or interested in making a long-term commitment?
The Austin housing market has a lot to offer renters, too. With the city’s unique culture and growing job market, it’s no surprise that renting remains an attractive option for many. But before you sign that lease, let’s delve into what’s happening in Austin’s rental market.
Austin’s average rental prices
When we talk about rentals, the numbers are quite striking. According to recent data, Austin is witnessing some fascinating shifts in average rent:
In essence, while studio and two-bedroom apartments seem to be getting somewhat more affordable, one-bedroom apartments are moving in the opposite direction. So if you’re considering a roommate, Austin might be a good fit for you.
Neighborhoods in Austin
If you’re looking for the perfect apartment, understanding the Austin housing market at a neighborhood level is essential. Neighborhoods like Market District and Zilker have seen a surge in studio apartment rents, with a 24% and a staggering 147% annual increase, respectively. On the other hand, areas like East Austin and Oak Hill are experiencing decreases in average rent for studios by 8% and 17% respectively.
For the budget-conscious renter, the most affordable neighborhoods for a one-bedroom apartment are Cherrywood, Montopolis and South Austin, with average rents ranging from $1,033 to $1,100. These figures are significantly lower than the Austin one-bedroom average of $1,677.
Breaking down apartment rent ranges
Where does the majority of Austin’s apartment rents lie? According to the data:
$501-$700: 0% of the market
$701-$1,000: A mere 3%
$1,001-$1,500: Occupies 16% of the market
$1,501-$2,100: Commands 22% of the market
$2,101 and above: The lion’s share at 58%
Clearly, if you’re planning on renting in Austin, you’re more likely to encounter higher-end rental costs.
How does Austin compare to other cities?
For those looking outside the Austin housing market, cities like Manor, Round Rock and New Braunfels offer alternatives with differing rental prices. For example, a studio in Manor is going for an average of $3,500, whereas in Round Rock, the average studio is priced at $1,500, a 17% annual decrease.
Austin’s rent trends
Looking at the trend data, rents for all apartment sizes have fluctuated throughout 2023, but one-bedroom apartments have seen a consistent increase. While studios and two-bedrooms show somewhat stabilized rents as of September 2023, only time will tell what the last quarter holds.
The Austin rental market at a glance
Renting in Austin? You’re not alone. Whether you’re here for live music, tech jobs or the infamous Austin weirdness, understanding the rental market is crucial. While Austin’s rental market is complex and dynamic, with neighborhoods and apartment sizes all showing different trends, one thing is clear — the Austin housing market, for buying and renting, remains a topic of captivating shifts and turns.
A native of the northern suburbs of Chicago, Carson made his way to the South to attend Wofford College where he received his BA in English. After working as a copywriter for a couple of boutique marketing agencies in South Carolina, he made the move to Atlanta and quickly joined the Rent. team as a content marketing coordinator. When he’s off the clock, you can find Carson reading in a park, hunting down a great cup of coffee or hanging out with his dogs.
Building your dream home in Texas is an exciting journey, but it comes with its unique set of considerations, shaped by the state’s diverse landscapes and dynamic climate. In this Redfin article, seasoned Texas builders offer invaluable tips for both native Texans and newcomers. These insights will help you navigate the Lone Star State’s home construction landscape.
Essential pre-build tips for your Texas home
1. Figure out your budget and financing before getting started
Managing your finances is a critical aspect of building a house in Texas. Before starting construction, establish a realistic budget that includes all aspects of the project, from land acquisition to finishing touches.
Building a spacious, energy-efficient home in the Dallas area may cost between $200 to $300 per square foot, depending on various factors. Research the current costs of materials and labor specific to that region to create an accurate budget. Consult with local banks or financial institutions to explore financing options, such as construction loans, which can provide you with the necessary funds to complete your project without draining your savings.
Keep in mind that unexpected expenses can arise during construction, so having a financial buffer of at least 10% of your budget is advisable to ensure your project stays on track.
2. Create a realistic construction timeline
Texas’ weather can be unpredictable, which may impact your construction timeline. Work closely with your builder to create a realistic project schedule that takes into account potential weather delays.
For instance, if you’re building a home in San Antonio, where hot summers and occasional heavy rainstorms are common, your construction timeline should factor in weather-related disruptions. Effective project management is essential to keep the construction process on track.
3. Make sure you understand Texas building codes and regulations
Before embarking on your home construction project, it’s essential to familiarize yourself with Texas’ building codes and regulations. These codes can vary from one municipality to another, so it’s crucial to research the specific requirements in your area.
For example, if you’re planning to build a home in Austin, you should be aware of the city’s unique land codes and permitting processes. Multiple layers of review and inspections from various city departments are common in Austin. You can typically find information about local building codes on your local government’s website or by contacting the relevant permitting authorities.
4. Thoroughly research contractors and builders before selecting one
“Texas is known for its flexible contractor laws”, shares contractor review site Bad Texas Contractors. “Unlike many states, it does not require general contractors to be licensed. To safeguard your project, thoroughly research your contractor. Seek references and word-of-mouth recommendations from local homeowners. Visit ongoing construction sites to identify reputable builders. Ensure that the contractor’s claims are verified and that they have a solid track record.”
5. Make sure your builder has local experience
Local home builder Carty Custom Builders, LLC shares, “Building in Austin, TX, requires expertise due to the city’s complex land codes and permitting processes. Engage a builder experienced in Austin’s unique requirements, such as multiple layers of review and inspections from various city departments. Navigating these hurdles is crucial for a positive home-building experience in the city.”
6. Verify builder’s associations and certifications
According to local realtors DFWMoves, “Texas may not require general contractors to be licensed, but reputable builders often belong to the Texas Association of Home Builders or local affiliates. Look for builders with certifications like Graduate Master Builder from recognized industry associations. Request a list of all homebuyer clients from the past three years for a comprehensive view of the builder’s track record.”
7. Choose your location carefully
“Picking the right location and homesite is paramount when building in Texas,” says Republic Grand Ranch, a land company today offering newly developed acreage for sale near Houston. “Opt for larger lots, ideal for single-story ranch-style homes that are popular in the region. Ensure the site is elevated and not prone to flooding or other weather-related issues. Maintain natural tree coverage for shade and privacy.”
8. Consider offsite construction for your Texas home
“Offsite construction is an ideal solution for building homes in Texas,” states home builders Champion Homes. “Constructing houses in a controlled factory environment shields materials and labor from extreme weather conditions. Select materials suitable for the region, such as engineered wood siding, to withstand Texas’ harsh heat and sunlight.”
Tips for the construction and design phase of your Texas home
9. Use finger-jointed studs for strength and stability
“Texas experiences significant humidity variations between seasons,” informs local family owned business Brookson Builders. “Finger-jointed studs, engineered for strength and stability, combat twisting and bowing caused by humidity changes. Using these studs minimizes common issues like bowed walls or drywall blemishes in Texas homes.”
10. Blend functionality with local charm
“In Texas, it’s crucial to merge functionality with the region’s distinct charm when constructing a custom luxury home,” recommends custom home builder CRV Homes. “Tailor your design to the site’s specific topography and climate. Use locally sourced materials like Texas limestone and native plants for landscaping. Incorporate features like wide eaves, verandas, and energy-efficient windows to combat the intense Texan sunshine and reduce energy consumption.”
11. Don’t overlook landscaping
Texas’ outdoor spaces are an integral part of the lifestyle, so don’t overlook the importance of landscaping and outdoor design. Work with a landscape architect to create outdoor living areas that complement your home and the local environment. Native plants, irrigation systems, and outdoor lighting can enhance the beauty and functionality of your property. Additionally, consider factors like outdoor kitchens, patios, and pool installations if they align with your lifestyle and budget.
12.Incorporate energy-efficient features
Texas’ climate can be harsh, with scorching summers and high-energy demands. Consider incorporating energy-efficient and sustainable features into your home’s design. This includes options like solar panels, high-efficiency HVAC systems, and smart home technologies. Investing in energy-efficient solutions not only reduces your environmental footprint but also saves you money on long-term utility bills.
13. Secure homeowners insurance home insurance
Texas is prone to extreme weather events, including hurricanes, floods, and tornadoes. It’s crucial to consider the insurance aspects of your new home. Research and consult with insurance providers in Texas to understand the types of coverage you may need, such as windstorm insurance, flood insurance, and homeowners’ insurance. Ensuring that you have appropriate coverage can provide peace of mind and financial security in the face of unforeseen natural disasters.
Ready to build a home in Texas?
Building a house in Texas is a rewarding venture, but it requires careful planning and collaboration with experienced professionals who understand the intricacies of the state’s construction landscape. By following these insights from Texas builders, you’ll be better prepared to embark on your home construction journey and turn your dream home into a reality.
Nevada is known for its dry climate, untouched natural wonders, and tall, forested mountains. The majority of the state is a plateau, with deep valleys and tall peaks. It has many climate zones, ranging from warm mediterranean in the western part of the state, to vast desert in the south, to high desert in the north.
Weather patterns generally range from dry and hot in metros like Las Vegas,to dry and cooler in areas such as Elko and Genoa. However, throughout the state, weather can often turn into natural disasters, like flooding, wildfires, and heat waves.When these happen, it’s essential to be prepared.
So what are the most common natural disasters in Nevada, how are they changing, and what can you do to prepare? Whether you’re planning a move to Las Vegas or are looking at apartments in Reno, read on for everything you need to know.
1. Nevada drought
Drought is a serious issue in Nevada, which is already the driest state in the US, receiving an average of 9 inches of precipitation per year. The state is one of many in the Colorado River Basin that has been dealing with a long-term “megadrought.” This drought hit a peak in spring 2022, when100% of Nevada’s population was experiencing severe to exceptional drought. This prompted the federal government to enact a tier two water shortage for the state, which is still in place.
The state’s water supply primarily comes from the Colorado River at Lake Mead, which has been shrinking due to chronic overuse and reduced precipitation. To help, Nevada has been working with the other six “basin” states who rely on the Colorado River to reduce water use and prevent an emergency that would require dramatic Federal action. Recently, the Lower Basin States of California, Arizona, and Nevada pledged to save around 1 billion gallons of water by 2026.
Southern Nevada has already adopted extremely strict water conservation measures, reducing water usage by 26 billion gallons compared to 2002, even though its population increased by over 750,000.
Droughts are exacerbated by warmer average temperatures, and can also increase the frequency and severity of other disasters, such as forest fires, dust storms, and heat waves.
How to prepare for drought in Nevada
Because Nevada has been experiencing drought for decades, it’s important to adapt your lifestyle to accommodate lower water use and prepare for future restrictions. For example:
2. Nevada wildfires
Wildfires are a major disaster in Nevada. In fact, from 2000-2018, wildfires burned more than double the number of acres compared to 1980-1999. Recently in 2018, the Martin and Sugarloaf Fires burned nearly 1 million acres. While most wildfires occur in the northern parts of the state, they can happen anywhere.
Most people don’t live within 20 miles of a recent active wildfire, excluding the mountainous cities of Reno and Carson City. However, according to data from First Street Foundation, 60% (733,893) of properties in Nevada are at risk of being affected by a wildfire in the next 30 years. Importantly, only 27% of properties in Las Vegas are at risk of being impacted by a wildfire, with most risk confined to Summerlin South, Enterprise, and nearby areas.
The state’s dry season from May through September (excluding monsoons), combined with parched forests, sets the stage for devastating fires that can spread rapidly. Prolonged drought and heat waves exacerbate the severity of wildfires. The primary causes of wildfires in Nevada are human activity and monsoon lightning. And in southern Nevada, where there are fewer trees, most wildfires are caused by target shooting and fireworks.
Wildfires can also devastate the landscapes and hillsides of northern Nevada, making them more susceptible to flooding, landslides, and mudslides, especially during intense rainfall.
How to prepare for wildfires in Nevada
If you intend to move to Nevada or already live in the Golden State, preparing for wildfires is essential. Here are some tips to help:
Create a defensible space around your property by removing flammable materials and trimming or removing dry vegetation.
Install interior and exterior sprinkler systems, if you have access to enough water and drought restrictions don’t prohibit it.
Install a generator to keep the power running in case of power outages.
Stay updated on fire weather forecasts and follow all fire restrictions.
Prepare for poor air quality by purchasing an air purifier and installing HEPA air filters on air conditioning units.
Build an emergency kit with essentials and valuable documents.
Ensure your insurance adequately covers fire damage, or, if the rising premiums are too high, understand the risks of going uninsured.
Work with your community. This is the most successful way to mitigate fire risk in your neighborhood.
3. Nevada heat waves
Hot, dry weather is common throughout Nevada, especially in the Southern parts of the state, where most of the population lives. Summer temperatures can reach over 100 degrees Fahrenheit throughout the state, especially in July and August. Most recently, during a heatwave in 2023, Las Vegas recorded temperatures above 100 degrees every day in July, with two weeks hitting a daily average temperature of 100.7. The city also hit 110 ten days in a row.
According to First Street Foundation, 66% (1.2 million) of homes in Nevada currently have a Severe Heat Factor, meaning the average daily temperature is at least 95 degrees Fahrenheit for the hottest month of the year. The overwhelming majority of homes at risk are in Clark County, which is home to Las Vegas.
Cities often feel the heat worse than rural areas due to the urban heat island effect. Las Vegas is the worst heat island in the country, experiencing a 5.76 degree difference between urban and rural temperatures. Las Vegas is also the fastest warming city in the US, with average temperatures increasing nearly 6 degrees since 1970.
How to prepare for heat waves in Nevada
Heat waves can be intense and cause health issues, including heat stroke and dehydration. As such, it’s essential to be prepared when they arrive. Here are a few ways to stay cool in extreme heat:
Stay updated on forecasts and advisories.
Prepare a meal plan that doesn’t involve cooking indoors.
Stay hydrated before, during, and after a heat event.
Make sure your air conditioning is functioning properly.
Install a generator in case the power goes out due to strained utility systems.
Limit outdoor activities to the early morning and late evening.
Switch from incandescent to LED light bulbs.
Stock up on lightweight, protective clothing.
Close blinds, shades, and curtains.
4. Nevada flooding
Nevada is known for its dry climate, but it’s actually very prone to flooding. 11% of properties in Nevada have a chance of being severely affected by flooding in the next 30 years, with most located in the mountains and highlands.
Nevada’s flood risk profile is marked by its dry climate, which makes it particularly susceptible to regional and flash floods year-round. Some cities also have a risk of riverine flooding. Recently, in February and March 2023, the winter storms that hit the Sierra Nevadas prompted a disaster declaration in Nevada for flooding, landslides, and mudslides. And, later in the year, an intense late summer monsoon caused flash flooding throughout Clark County.
Nevada is also prone to snowmelt flooding. The Carson Range and nearby peaks in Northwestern Nevada can receive substantial snowfall in the winter, often through winter storms and blizzards. And as temperatures rise in the spring and summer, this snow can melt rapidly, especially during an early heat wave.
How to prepare for flooding in Nevada
In Nevada, preparing for a flood is essential, particularly during sudden intense rain and snowmelt events. Because a large portion of the state is prone to flash flooding, you may not have much time to prepare, so it’s critical to practice and have supplies ready during the spring and summer. Here are a few tips to help:
Familiarize yourself with flood risk maps for your area to see your potential risks.
Consider flood insurance if you’re in a high-risk zone.
Keep emergency supplies on hand, including non-perishable food, water, medications, and important documents.
Elevate valuable items in flood-prone areas of your home, and install sandbags or barriers if necessary.
Invest in flood sensors.
Stay tuned to weather forecasts and alerts, and have a communication plan in place with your family.
5. Nevada earthquakes
Earthquakes are a major risk in Nevada. The state is home to thousands of fault lines, and many regions experience dozens of tiny earthquakes every day. The most notable region is the Walker Lane, which is a trough consisting of thousands of fault lines that pass through most of the Western border of Nevada and into southern California. This is where most geologic activity occurs, although there are notable major faults in the Las Vegas Valley. Reno and Carson City, located along the Walker Lane, are at a particularly high risk, although Las Vegas would suffer far more damage.
There have been 23 earthquakes with a magnitude 6 or greater since the 1840s, with the most recent being the Ridgequest quakes in 2019.
While earthquakes are infrequent, they are by far the most destructive type of disaster in Nevada when they hit. Additionally, Nevada can also be affected by earthquakes with epicenters in California, such as the recent quake in the Sierra Nevadas that was felt in Reno.
How to prepare for earthquakes in Nevada
Earthquakes are irregular but destructive and can cause significant damage to structures, utilities, and water systems. Main shocks can last for minutes, while aftershocks can last for years. They can also strike suddenly, at any time, with only seconds of warning. As such, preparing your home is critical. Here are a few tips to help:
Practice drop, cover, and hold on, so you’re ready when a quake hits.
Purchase earthquake insurance to cover some losses in the event of a quake. This is a separate policy that you purchase in addition to regular homeowners’ insurance. It’s also available to renters.
Make sure you have a durable, charged communication device in case of an emergency.
If you rent, ask your landlord about the building’s seismic history.
Keep your emergency kit stocked, updated, and accessible.
Anchor heavy items to the wall, strap down expensive electronics, and secure small valuables.
Brace your water heater according to state law.
Ensure your gas lines have flexible connections.
If you live in a house built before 1980, it will likely need to be retrofitted. Don’t do this yourself; hire a seismic retrofitting professional.
Final thoughts on natural disasters in Nevada
Nevada’s climate is diverse, dry, and pleasant. Drought, fire, heat, flooding, and earthquakes make it a varied and unpredictable place to live.Many cities in Nevada, especially Las Vegas, continue to be the most popular migration destinations, primarily due to people’s desire for sun. Because of this, the state’s population has increased by over 70,000 since 2020.
If you’re considering moving to Nevada or already call The Silver State home, make sure you’re prepared for natural disasters and long-term weather events. Understanding your risks and adequately preparing are helpful to make the most out of living in Nevada. The National Weather Service and University of Nevada, Reno offer experimental maps that show forecasted and past risks in any given area, which can help you prepare.
Lastly, many natural disasters are worsened by climate change.So no matter how you prepare, reducing your carbon footprint and pushing for systemic change are the best long-term solutions.
This article is for informational purposes only. Individual results may vary. This is not intended as a substitute for the services of a licensed and bonded home services or disaster prevention professional. Always seek expert advice and follow all official guidance before, during, and after a disaster.
Want to learn how to invest in self-storage? I have stored boxes of my stuff plenty of times over the years and there’s a good chance that you have as well (or perhaps you know someone who has). Investing in self-storage facilities can be a relatively low-risk asset for people looking to diversify their income…
Want to learn how to invest in self-storage?
I have stored boxes of my stuff plenty of times over the years and there’s a good chance that you have as well (or perhaps you know someone who has).
Investing in self-storage facilities can be a relatively low-risk asset for people looking to diversify their income streams. Or, perhaps you’re looking for a full-time income and are looking for your own business to start!
So, what exactly is investing in self-storage?
It is when you put your money into self-storage facilities and rent out units to renters.
I have personally used self-storage facilities for many reasons over the years for a short-term period, and nearly every single time I think about the profitability of it all and how passive it seems to be a self-storage owner or self-storage investor.
There are usually no customers at the facility (I’ve almost always been the only one there when dropping off or picking up), but every unit is being rented. Seems like an interesting way to make money with not too much work!
Plus, over 9% of households pay for self-storage units, and there is a lot of demand for new facilities.
Quick Summary
Self-storage investing can be a way to make money and run a business with low expenses
There is a lot of demand for storage units, with many businesses having a very long waitlist
If you don’t want to run a business, you can also buy shares in an REIT or even just rent out your garage or basement
What is Self-Storage Investing?
To put it simply, self-storage investing is when you invest in storage facilities.
More and more people need storage units for many different reasons such as moving, downsizing a home, needing a place to store something that a person doesn’t have room for (such as an RV or boat), or even businesses that are storing extra inventory.
For example, someone might need a short-term lease to store their belongings due to being in between homes (like if they are moving but their next home isn’t ready yet). Or a person on a long trip may decide to sell their home, but they need a place to store their important items.
If you decide to invest in self-storage, you have a couple of options. You can start by purchasing and owning a facility yourself or passively invest by buying shares in a self-storage REIT (Real Estate Investment Trust). I will be going over each of the options further below.
Related content:
Is Self-Storage a Good Investment?
Yes, deciding to invest in storage units can be a good idea.
According to Neighbor, the average profit margin on a self-storage unit is around 41%, and they typically have high occupancy levels of around 92%.
One of the main positives of investing in self-storage is being able to earn income with less work (you’re not dealing with customers all day long – people tend to store their stuff and not visit it often).
Self-storage facilities usually have low expenses compared to other types of commercial real estate investments. Also, self-storage is usually recession-resistant as people still need to store their stuff.
Another benefit of investing in self-storage is the flexibility it offers because you don’t need very many employees to run a storage lot. Some lots that I’ve been to don’t even have any employees – instead, you call the owner when you want to get your stuff and they then send someone down. People tend to store their stuff and not touch it for a while.
Related: 18 Passive Income Ideas To Earn $1,000+ Each Month
Types of Self-Storage Facility for Investment
When investing in self-storage facilities, you may not know that there are a few different types.
This section will discuss the different self-storage facilities you can invest in.
1. Climate-Controlled Storage
Climate-controlled storage is something that more and more people want these days because it can protect their belongings from temperature changes and humidity.
After all, many places get very hot weather, and storage units can get quite hot inside. You don’t want your things to melt into each other.
These types of units are good for storing items like electronics, artwork, or documents.
Now, your location is important in deciding if you need climate-controlled self-storage, as areas with extreme temperatures or humidity obviously will need AC more. For example, a storage facility in Florida may be more likely to have air conditioning than a facility in Alaska. And, a facility in Alaska is more likely to have heat than a storage unit in Florida.
2. Mixed-Use Storage
Mixed-use storage facilities combine multiple types of storage units in one location.
For example, these types of facilities may have climate-controlled, drive-up, boat, and RV storage all in one place. Many storage facilities are like this. They cater to different customer needs and tend to have a broader target market due to being able to store so many different types of items.
People tend to like these forms of storage as they can store all of their belongings in one place, instead of having their stuff scattered across town.
3. RV and Vehicle Storage
With so many people owning RVs and extra vehicles, the demand for storage has increased over the years.
Also, many neighborhoods simply do not allow for RVs or extra vehicles to be parked in front of their home (or even in their driveway, backyard, etc.), so a storage lot is needed.
Some storage facilities may even just be massive warehouses where people can store their RVs, valuable cars, and boats inside.
We have stored an RV in a place like this many times. We have found the typical rent to be around $5 to $10 per foot for our RV in an indoor parking lot, so you can see how quickly storage revenue can add up! Some businesses even have private RV units, and those fetch a much higher rate, such as $400-$600+ per month.
4. Boat Storage
Boat storage facilities specialize in safe storage for boat owners during the off-season or when not in use. These types of facilities typically have long waitlists too.
Boat storage businesses sometimes have both indoor and outdoor options (or they may focus on one or the other), as well as extra services like boat maintenance, hauling, launching, and more.
Coastal regions or areas with nearby water access (such as Florida) are usually good locations for investing in boat storage facilities as there are more boats, of course.
We have used boat storage facilities many times over the years to store our own boat. The amount you can make per boat can be anywhere from a couple hundred to a couple thousand dollars each month, depending on the location and the type of boat (catamaran vs. small fishing boat, for example) you can store. We have paid anywhere from around $1,200 to over $2,000 a month in the past for boat storage.
5. Drive-Up and Outdoor Storage
This is the type of storage that pretty much everyone has seen, as they are very common.
With this type, customers can drive directly to their storage unit, making loading and unloading much easier. These types of facilities are usually single-story buildings. Many times they do not have AC or heat.
Drive-up and outdoor storage facilities give renters an easily accessible storage solution.
How to Invest in Self-Storage
If you want to invest in self-storage, there are a few different ways to do so.
1. Buy an Existing Self-Storage Facility
One of the easiest ways to enter the self-storage market is by purchasing an existing business, such as those for sale by mom-and-pop operations.
This can save you time as everything is in place and you already have customers with rented units. Yes, you can improve some of their processes, but a lot of the hard work is already done for you.
But, purchasing a facility can be expensive upfront, though, because you will be buying a business with land, a building, and an existing customer base.
Just as an FYI – As you’re looking for storage facilities that are for sale, you may come across different classes. Class A facilities usually are higher-quality climate-controlled storage units, whereas Class B and Class C facilities may be lower-quality.
Buying an existing storage lot can possibly make you more money than investing in REITs (discussed further below), but it also means more hands-on management and responsibility because you will be actively running a business and managing employees.
2. Build a New Self-Storage Facility
There are around 2 billion square feet of storage space in the U.S. alone, but there is a high demand for more. Many self-storage facilities have long waitlists even!
I have called many storage lots only to find out that they had waitlists that were years long. I have even several times called every single lot within a few state radius, and found that every single one had a waitlist.
Yes, the storage business is really in that much demand!
As a self-storage investor, you can take advantage of this high demand and build your own storage facility.
To create a self-storage facility from the ground up, you will need to do the following:
Find land to buy – Once you know that an area needs a storage facility, you will need to find land to buy to build on. You will also want to make sure that it is easy to drive to (for example, if you are building an RV storage lot, you don’t want low bridges as the only way to get to your lot because no one will be able to get there then).
Build – After you buy the land, you will need to think about what you want your facility to look like, then hire a construction company to build your plan.
Open up for business– Once the facility is built, you will need to market it and get customers. You will also want to set up the systems to manage daily operations effectively and as passively as possible.
Self-storage is in demand, so building a new storage business can be a way to get started and make money.
3. Buy Shares in a Real Estate Investment Trust (REIT) That Focuses on Self-Storage
If you want to invest in self-storage without actually owning and managing a business, one way is to invest in an REIT.
REITs are a type of investment that allows you to buy shares in a company that owns self-storage facilities. Think of it like shares of stock in a company that you can buy.
With REITs, you can invest in a portfolio of self-storage properties without physically owning or managing the facilities yourself.
This is more passive because you don’t need to hire employees or do maintenance checks.
4. Rent Your Space on Neighbor.com
If you have extra space in your own home such as a garage, closet, driveway, or spare room, you can rent it out as storage space through a platform like Neighbor.
With this site, you can earn $100 to $400+ each month (the rate you can get depends on demand in your area and the type of storage you are renting out).
Here’s how Neighbor works:
Sign up for a free account – Create an account on Neighbor by clicking here.
Describe your space – Write a detailed description of your space, including the dimensions, location, and any features (such as air conditioning or heat). Add pictures of the space as well so that potential renters can see what you are renting out.
Set your price – Choose how much you want to charge for renting your space.
Manage rentals – Connect with interested renters, agree on terms, and manage ongoing rental contracts, all through the Neighbor platform.
You can learn more at Neighbor Review: Make Money Renting Your Storage Space.
Advice for managing a self-storage facility
If you decide to run your own storage facility, then here are my tips for new self-storage operators.
Making money from self-storage
To make money from your self-storage facility, you need to think about what your customers want. So, you may sell amenities to your renters, such as vehicle washing, starting up their vehicle or checking on it, electrical plugins to charge vehicles or RVs, and so on.
You’ll also want to think about how much money it will cost you to actually run the business. Will you need to hire workers? How much will maintenance cost you so that you can keep the facility in good condition?
Security in self-storage facilities
Security is very important for customers when choosing a self-storage facility. Customers care about their stuff and they don’t want anything happening to it, such as it being stolen.
So, you will want to make sure that your facility has a lot of light (especially at night time), security cameras aimed at different angles, and gates with codes. This helps your customers feel safer about leaving their stuff at your storage facility, and also helps to protect your business from liability issues and bad reviews (for example, if a person has their stuff stolen from your facility, they are likely to leave a bad review and this can cause others to not use your storage units as well).
Frequently Asked Questions About How To Invest In Self-Storage
Here are answers to common questions about investing in self-storage.
How can I find a self-storage business for sale?
To find a self-storage business for sale, you can start by searching on websites like LoopNet and BizBuySell. I took a quick look at both of these sites and found many for sale quite easily from anywhere in the hundreds of thousands to in the millions of dollars price range.
What are the best self-storage stocks to invest in?
The best self-storage stocks for you to invest in will depend on your own money goals and the amount of risk you want to take on. Unfortunately, I cannot tell you which is the best self-storage stock, as I am not your financial advisor and I do not know your specific situation. But, I can tell you which ones are popular.
Some of the most popular and best self-storage stocks include Public Storage (PSA), Extra Space Storage (EXR), and CubeSmart (CUBE).
Which self-storage REITs have the best returns?
Real estate investment trusts (REITs) are a popular way to passively invest in self-storage facilities. Several well-known self-storage REITs include Life Storage (LSI), National Storage Affiliates (NSA), and Simply Self Storage (SSS).
Keep in mind that past performance and dividends do not mean that the same will be true in the future, so it’s important to do your own research.
What risks are there with investing in self-storage?
Like with all businesses, there are risks when it comes to self-storage. Some risks include competition, changes in demand, and possible natural disasters that could hurt the facility (such as a severe storm or a flood).
Also, managing a self-storage facility will, of course, require at least some time from you and may even require employees, so you should also think about operational costs and business management.
How profitable can a self-storage business be?
The amount of money that a self-storage business can make depends on many things such as location, demand, and operating costs.
Can owning a self-storage unit generate passive income?
Having a self-storage facility can earn you passive income through rental fees. But, managing a self-storage facility also requires that someone works at the business, to check people in, show units, and check on the property. You could hire employees so that it is more passive for yourself.
You can also earn passive income by investing in self-storage REITs or stocks instead of owning and running a storage facility.
Does self-storage do well in a recession?
Self-storage in the past has performed relatively well during recessions, as people often downsize their homes or need temporary storage. Of course, though, the past doesn’t mean that it will always do well. So, it is always best to do your research and prepare as best as you can.
What is the future outlook for self-storage?
The future for self-storage looks to be positive, as there is a lot of demand for storage units and I’m still constantly seeing waitlists everywhere. In fact, whenever I need to store something even for just a few months, I’m always being told that I need to call a year in advance for a spot.
Many storage facilities have a high occupancy rate, long waitlists, and cannot keep up with demand.
How To Invest In Self-Storage – Summary
I hope you enjoyed today’s article on how to invest in self-storage.
If you are looking to add a new asset class to invest in, becoming a self-storage investor can be an interesting way to bring in a stable cash flow and make more money.
Self-storage is in high demand too, with many businesses currently having a long waitlist.
Factors such as location, demand, the quality of facilities (Class A, Class B, and Class C), and the type of storage lot all can change the success of a self-storage investment.
Are you interested in learning how to invest in self-storage?
When searching for apartments, there’s always so much to consider, like location, price, proximity to parking or public transportation and closet space.
However, there’s another factor to consider in the apartment hunt that has the potential to profoundly impact your day-to-day lifestyle: which floor is best to live in an apartment. There are benefits and drawbacks to all the different floors, from the ground floors to a top floor apartment.
Which floor is best to live in apartment buildings
What’s the best apartment floor to live on? The top-floor apartments have great views and privacy, but ground-level apartments are usually more affordable. In other words, there are pros and cons to living on a lower floor or a higher floor.
Pros and cons of living in a top-floor apartment
Like all things, there are important factors to consider about living in top-floor apartments, like if the building has an elevator to access the higher floors.
Pro: Less noise
Top-floor apartments rarely have to deal with noise coming from both outside of the building and inside from other tenants. However, if you’re a noisy neighbor, living on the top floor could create some potential problems with your downstairs neighbors on the lower floors.
Pro: Panoramic views of the city
The panoramic views from top-floor apartments are nothing to complain about. However, keep in mind that you might not need to seek out a penthouse apartment to get the views you desire. You might be able to see the same sights from the middle floors, which could save you money in the end.
When touring the apartment initially, observe the view so you can make an informed decision before signing the lease.
Pro: Increased security
One advantage of living on the higher floors of an apartment building is that it’s typically safer than lower-level apartments. Depending on the layout of the apartment building and its built-in security measures, basement and ground-level apartments can pose a higher risk of criminal activity and break-ins than apartments on the top floors.
If your prospective apartment is in a high-rise building with a doorman, is within a gated community, has on-site security or requires a FOB or code for access, crime is less likely to occur.
However, if you fear that criminals could easily access a ground-floor window without an alarm system or bars, you might consider “moving on up” to a higher apartment floor.
Pro: More exposure to natural light
Living on the top floor gives you added height and more exposure to natural sunlight. Natural sunlight is a great way to brighten up your place, especially if it’s a small floor plan. While natural light is great, it can also make your place hotter, so keep this in mind when you budget for utilities. You can also enjoy fresh air courtesy of higher-up breezes.
Pro: Fewer pests
Living on the top floor means fewer visits from unwanted pests and critters. Bugs and other pests typically live in or on the ground outside, so they’re more likely to infest apartments that are closer to where they live in nature.
Con: Added cost for rent and utilities
Apartments with the same or comparable floor plans are typically more expensive the higher up they are. And don’t forget that heat rises. That goes for utility costs, as well. Your monthly electric bill could potentially skyrocket in the summer, especially if you live in a warm climate, like the South.
If money is tight, you should strongly consider these factors when choosing which apartment floor to live on and rent. The abundant sunlight drenching your apartment coupled with the “heat rises” concept is sure to minimize heating costs in the winter. However, that same combination might drive up your air-conditioning bill in the summer.
Con: More difficult to access
Living in a top-floor apartment might be attractive, but how easy is it to get there? Does your building have an elevator, or are we talking four to five flights of stairs every time you come and go? How easy would it be to get to your apartment with two weeks’ worth of groceries?
Make sure to pay extra attention to the ease — or difficulty — of getting up to your place. Additionally, there’s the added element of the actual move in and move out, which results in lots of trips up and down the stairs. Keep in mind, apartments that are more than three stories high must have elevator access to meet ADA standards. On the other hand, walking up and down all those stairs does save you from getting a fitness center membership.
Con: Limited emergency evacuation options
Living on a higher floor can often make evacuating during a fire or natural disaster much more difficult than just walking down a few flights of stairs. Check out the evacuation route and plan for your apartment complex.
Will you be walking down 20 flights of darkened stairs filled with smoke? How many apartments and residents are below you that will also be evacuating at the same time? These questions aren’t meant to scare you, rather more to prepare you. It’s smart to have an emergency evacuation plan in mind when moving to an apartment, regardless of the floor.
Con: Building conditions may impact apartment
Most apartment complexes will have a maintenance team dedicated to the care and upkeep of the place. If you choose to live on the top apartment floor, you want to check out the conditions of the exterior roof and see if any damage has occurred that’ll directly affect your apartment.
Pros and cons of living in ground floor apartments
A ground-floor apartment, too, boasts some enticing amenities. When looking for the perfect place in an apartment complex, consider all that a ground-floor apartment has to offer to ensure it meets your wants and needs in a home.
Pro: Easier to access
The first floor of an apartment is ideal for bringing in heavy loads, such as your furniture when moving or that big trip to the grocery store. You don’t have to carry things all the way to the top floor. The ground floor might be the best choice.
Also, if your health will prohibit you from walking up and down the stairs frequently, ground-floor apartments are beneficial.
Pro: Reduced cost of rent and utilities
Living on the ground floor will help you save on utility bills. The lower floors make for a less expensive air-conditioning bill in the summer as the cool air naturally reigns in lower locations. Also, you’ll likely have less exposure to natural sunlight, which will keep your place cooler in the hot months of summer.
And sometimes, apartment complexes will offer lower monthly rent prices for the bottom level because it lacks the views some people desire. Apartments on the top floors always fetch higher prices because of the views. So, living on the bottom floor can help you save money on rent and utility bills.
Pro: More options for outdoor space
Living on a ground floor unit could mean easy access to outdoor space like a backyard or courtyard, which is great for tenants with pets, kids or people who love entertaining outdoors. This isn’t always the case, but it’s something to keep in mind when deciding which apartment floor you want to rent.
Con: Potentially more noise
While street noise might be a con in first-floor apartments, you also get the benefit of not having to worry about bugging a neighbor below you. If you’re the type who brings a recording of city noises with you on vacation so you can actually fall asleep, the ground floor might be your perfect place to land.
On the other hand, late-night vacuuming or the high-heel lover upstairs might get annoying for a first-floor dweller. Decide how much or how little noise you can tolerate from potentially loud neighbors before making the decision about which apartment floor to live on.
Con: Potential for more pests in the home
When you live on the ground floor, you’re generally more susceptible to getting unwanted pests than on a higher floor. This is a major turn-off for some renters. Pests can access the bottom apartment floor more easily, but if you don’t mind killing the occasional roach or have a great plan for pest control, you’re good to go.
Pros and cons of living in a middle-floor apartment
The top and bottom floors are both great options depending on what you’re looking for in an apartment rental, but when it comes to heating and cooling and worrying about the trek to and from the apartment, each showcases opposing extremes. As a result, the middle floors are, in a sense, just right.
Pro: Consistent bill price
The middle floor may not get a seasonal break from heating and cooling costs, but it usually sees a steady power consumption rate during each season. If you’re someone who likes to live on a steady budget, the middle apartment floor can help you plan a more stable budget.
Pro: Easier access to your home
While the middle floor has both top and bottom neighbors, it doesn’t demand a huge hike up the stairs. And if your building has an elevator, access is essentially a non-issue. Living on the middle floor gives you a little workout, but you won’t work up a sweat every time you go home.
Pro/con: Some noise levels
Mid-level apartment floors like those on the third floor aren’t exposed to street traffic noise. However, you’re surrounded by a lot of neighbors and foot traffic in the hallways is a trade-off there.
Choosing the right location to rent
Home is a place of comfort and peace, so you want to ensure it has everything you need to feel safe, secure and happy. Everything from the cost of the apartment to which apartment floor you choose is important. Not sure you want to live in a high-rise apartment building? Determine which type of rental layout is right for you.
It’s not surprising these days to find many homes readied with a backyard pool. Depending on your motives, whether you are a seller trying to add value to your home, or a buyer on the hunt, this topic can be fairly debatable. So, will adding a pool to your backyard add value to your home? Yes…and no.
Typically, putting in the extra dollars and stressors of having a pool installed in your backyard will not substantially increase the value of your home when trying to sell. It would be more beneficial for you to make more physical interior and exterior improvements and additions to the house itself rather than adding an extra asset that may not be appealing to every buyer.
However, there are a few circumstances where a pool may add some value to your property.
1. Everyone in your neighborhood has a pool
If you happen to live in a wealthier and more established neighborhood where most homes have pools, not having one could very likely make it harder for your home to sell. It also could decrease the overall value of the home compared to the others built around you.
2. It won’t take up your whole yard
Similarly, if you can fit a pool into your backyard and still have some leftover yard space this is a huge bonus. Most buyers want the best of both worlds. A pool as well as backyard space for personal hobbies/entertainment purposes.
3. You live in a warm climate
Lastly, if you are located down South or out West, homeowners will most likely be looking for a home with a pool to cool off in because of the hot and humid temperatures. These factors alone or even collectively could potentially add value to your home.
Maximize your chances
Now, as mentioned before, even with the addition of a pool to your backyard, there is still no 100% guarantee of any return on your investment. Nonetheless, if you do happen to add this amenity to your property, you can take a few key factors into consideration that could help improve the selling point.
1. Appropriate design
For one thing, does the design and overall appearance of the pool somewhat coordinate and fit in with the rest of the neighborhood? If yes, you should be fine. If not, you should consider revamping the pool area to conform to the rest of the complementary neighborhood pools.
2. Keep it clean
Next on the list, is it apparent that the pool is clean and regularly kept? Or is it noticeably neglected and never maintained? An unkept pool would scare most buyers by giving the impression that it is too difficult and time-consuming to maintain and keep sanitary.
3. Newer is better
Lastly, how old is the pool? If you are adding a pool to your yard in an attempt to raise the value of your home and sell it, it is crucial to put your home on the market shortly after the pool is finished. You want a new and updated pool to ensure you recoup your costs/investment.
What is the ROI?
Now, the big burning question that everyone is dying to know: Will the money you put into the addition of your pool lead to a comparable increase in the value and sales price of your home?
Obviously, with all home repairs and enhancements, it is critical to not over-embellish your pool area. Whether you are repairing your current pool or building a brand new one from scratch, the goal is to add value to your home in an attempt to sell it.
You want to make sure your design is appealing and tasteful to buyers, not overly dramatic where they will be put off by it. You also want to take into consideration that you probably will not get the full value in return that you initially invested.
The cost alone to just build the pool can range from $30,000-$100,000 depending on how elaborate you want it to be. You then have to factor in extra costs such as filtration, maintenance, and insurance/taxes. While these costs are all very necessary for the addition of your pool, you may not receive the full value and dollar amount you put into it.
The bottom line
While a pool may not add monetary value to the home, it definitely can add value to the overall enjoyment and quality of living. Ultimately, the decision is up to you. Only the homeowner can decide the true return on the expenditure.
Deciding whether to transform your current house into your ideal home or start over with a fresh new space requires careful thought and consideration. There are two options to consider — stay and renovate or move to find something more suitable for your needs. This choice may make some people feel like they are at a crossroads.
Here are some steps you can take to help guide this important decision.
Get an Idea of How Much You Can Afford
If you’re considering moving, it’s important to understand how much of a mortgage you’ll qualify for and how much you can afford to spend on your new home. Connecting with a lender like Pennymac is a great first step. Our Home Connect resource can help set you up for success if and when you’re ready to begin your home search. Explore mortgage options, get BuyerReady Certified and receive advice from trusted real estate professionals.
Get a Comparative Home Analysis
Ask a realtor to provide you with a comparative home analysis to estimate the value of your current home. Determine if your home’s features align with your desires and needs. For example, do you need an extra bedroom to accommodate a new member of the household or your new work-from-home plans?
Understand Your Location Limits
Do you love where you live right now? Suppose you adore your neighborhood or town, but your house just isn’t appropriately sized for you and your loved ones. In that case, consider adding on to your house, whether that’s another bathroom or a second story.
On the other hand, If you have children, you may weigh the desire for a new school district with better academic programs. Or maybe you want to move closer to work. It really boils down to what your main priorities are.
If you’re looking to move to a larger home, keep in mind that a bigger house in your preferred area will likely have higher taxes, utility bills, homeowners insurance premiums and maintenance upkeep costs. On the flip side, if a move means you’ll have a shorter commute, you will save time and transportation costs. Prioritizing your location needs and determining what you are willing to spend or sacrifice to achieve your goals will help influence your decision.
Renovation Reality Check
Choosing whether to remodel or move depends on a lot of factors. Can you be creative with your existing rooms and make relatively easy and straightforward renovations, or are your requirements complex, expensive and challenging to complete?
Hire an architect or contractor to help pinpoint issues with your current house and decide what you need from your home. Want to add a second story? Get estimates on how long that might take and how much it might cost, and determine if you’re okay with living through such a major renovation.
Understanding Your Time Commitment Matters
Buying and selling at the same time can be a lengthy process. Organizing your home and putting it on the market can take months, plus there can be some financial and emotional uncertainty when buying and selling. It may take time to get the sale price you want and to find your ideal next home.
If you decide to move forward with buying and selling your home simultaneously, you’ll want to work with a real estate agent and have a plan for how you’ll manage the process. Timing everything right is essential since you don’t want to be paying two mortgages at once if you’re still waiting to sell your current home.
You’ll also want a savings buffer to help financially manage any complications or slowdowns. For example, you may need to temporarily stay in a hotel or put your furniture in storage.
Contingency Acceptance
A contingency clause in real estate is part of a purchase agreement that outlines specific conditions that must be met in order for the contract to be valid and binding. In some markets, home sale contingency offers are allowed, which means your bid for a house is contingent on the sale of your former abode.
In other markets, home buyer-feeding frenzies can prohibit contingent offers. When you put your house on the market, you have to decide if you’ll buy a new house first or make a contingent offer. If contingent offers are out of the question, you may require a temporary rental after escrow closes on your old home and you’re still looking for your next one.
Closing Costs
In addition to your down payment, you’ll have to pay closing costs, just like you did when you purchased your existing home. After figuring in closing costs, commission, title insurance and additional transaction costs involved in your home sale and purchase, it may be much less expensive to stay in your house and renovate. So don’t forget to calculate closing costs when deciding whether or not to move, but don’t hesitate to negotiate any of those costs either.
Current vs. Past Mortgage Rate, Cash-Out Refinance and Second Mortgage Considerations
A cash-out refinance is when a homeowner refinances their existing mortgage, taking out a new loan for more money than they currently owe. The difference between the new loan amount and the old mortgage balance is given to the homeowner in cash. This allows the homeowner to tap into their home’s equity and use the money for various purposes, including home renovations.
If you have a higher interest rate than the current market, compare keeping your mortgage — and perhaps refinancing at a lower rate and taking cash out to make upgrades — to getting a new house with a new mortgage at a lower rate.
Either way, a lower-rate market can prove to be very favorable whether you stay and renovate or go and start fresh.
However, if your current rate is lower than the current market, it may be in your best interest to explore a second mortgage option that allows you to access the equity in your home while maintaining your low rate on the first.
Evaluate Your Motivators to Move
Many individuals who decide to sell have outgrown their current house and don’t want to build an addition or are too busy to manage an extensive renovation project. There are also those homeowners who have too small a lot to work with, need to move closer to work or are not that vested in remaining in the neighborhood.
Aside from the desire to upsize your home, some other motivators for selling can be:
The need for a less expensive home
Readiness to downsize
The ability to pay cash for the next home
The want or need to relocate for a job, school district, family situation, better climate, etc.
Favorable market conditions
Identifying the primary motivators for your move can help you decide if you should sell your house now or wait.
Ready to Downsize?
Those in a life stage where they are often uniquely ready to leave behind the maintenance of their current home. Trading in the three-bedroom house for a low-up keep city condo provides more opportunities for enjoying the retirement years.
Here are some signs downsizing may be right for you:
Housing expenses have increased and you want to cut costs
There are unused rooms in your home
You desire a more low-maintenance lifestyle
You want a change, such as being closer to family, relocating to a different climate or moving into an amenity-filled active community.
So, What Is the Bottom Line? Should I Sell My House Now?
Making a final decision as to whether or not you should sell your house is as personal and individual as the home you’re thinking about giving up or buying. But with the right calculations and information, you’re closer to finding a long-term solution that will work best for you. Ready to sell your home and begin looking for your new one? Chat with a Pennymac Loan Expert, or use one of our mortgage calculators and start your home buying journey today.
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Tending to a few potted flowers is one thing, but managing an entire garden of vegetables is a big to-do.
Thanks to warmer temperatures, extended sunlight hours, and a general ease to the daily grind, the summer season is often the ideal time for venturing into the world of gardening.
When deciding to turn your backyard into a veritable food factory, it is important to have a few fast facts about farming. You don’t necessarily need to have a green thumb to produce a thriving vegetable garden, but a little bit of researching and strategizing can make the difference between bloom and bust.
Placement Is Key.
Before choosing which vegetables you want to plant, you need to think about where you are planting them. Regardless of climate, it is best to find a space sequestered from any shrubbery or buildings, a space that gets direct sunlight with minimal shade. In this setting, you will have maximum control over the conditions of your garden, allowing you to tweak things such as heat, shade, and irrigation to suit whatever you plant.
Once you have chosen such a location, the next step is to create the perfect conditions for growing vegetables. It is more than just ripping out sod. Actually, most farmers recommend building raised beds for your vegetable gardens.
Traditional raised beds are no more than 4 feet above the ground and contain rows of crops that should be planted in succession to increase their total yields throughout the year. (Planting in succession is defined as rotating crops in your garden to increase its fertility.) Below the raised bed, farmers usually put a base of cardboard that prevents any underground weeds from burrowing through your topsoil.
Play to the Region.
You know your climate best. If, for instance, you live in the Northeast then direct sunlight is a must. Shade is otherwise needed for intensely hot climates that could burn or shrivel up plants.
Another handy recommendation is to use what is around you to build your raised beds. Have a rocky backyard? Take some of those rocks to frame the bed for an aesthetically pleasing garden.
Choosing Soil Depends on the Plants.
However, soil is one factor that does not depend on location, but what you put in it. Most farmers recommend a 50/50 compost mix to enrich soil. Good soil is abundant in organic matter as well as agricultural lime, rock phosphate, and greensand. You can provide your soil an additional boost by scattering it with used coffee grounds, eggshells, banana peels, and shredded leaves.
Fun fact: a sprinkling of baking soda on soil helps grow sweeter tomatoes.
Do Fence It In.
Unless you live in a detention center with mile-high walls, you probably have critters that occasionally cross through your backyard. They are the number one threat to your burgeoning vegetable garden. After identifying what kind of animals you have in your backyard, it is time to plan a defense.
Unless faced with bears and deer, you can usually go with a lower chicken wire fence anywhere from 3 to 4 feet high. The fence should be soft on the top to prevent animals from climbing up it. Likewise, the fence should have an underground apron component to prevent animals from digging into the garden from underneath.
One of the best recommendations for building the fence is to build a solid one. That way the animals don’t know what they are missing.
Special precautions should be taken if you intend on planting sugary berry fruits like blueberries and raspberries. Because birds are attracted to these fruits, they can swoop down and eat them. For prevention’s sake, cover the plants with extra chicken wire or an extremely sheer fabric to allow sunlight in without the pesky beaks of hungry birds.
Now for the Best Part: Choosing What to Plant.
Finally, once you have planned and plotted out your summer vegetable garden, it is time to plant. Timing is of the essence: it is important to plant your crops as soon as possible once into the summer season.
Actually, the best time to start planting is after the threat of frost bite disappears. For most regions of the United States, that occurs between April and May while the first frost bite usually occurs between September and October.
Here are a few of the most popular options for summer vegetables:
Tomatoes
Squash
Zucchini
Corn
Cucumbers
Eggplant
Okra
Peppers
Melons
What’s the Best?
Of these 9 choices (and all their varieties) tomatoes are the frontrunner for producing the best results. The most important trick here is to wait until night temperatures stay above 50 degrees to plant them—they are very temperamental and will otherwise freeze to death. Other than that, they are pretty tolerant plants.
If you love a small challenge from an unsuspecting vegetable, try okra! The veggie loves hot weather, and its seeds are sown directly into the ground.
Carter Wessman
Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.
Arizona’s vast landscapes and diverse architectural styles present a unique backdrop for the real estate market. Whether you’re buying a Spanish-inspired villa in Scottsdale or selling a contemporary home in Phoenix, home inspection is a critical stage that can’t be overlooked. For buyers, this process unveils the home’s hidden stories, ensuring a sound investment. For sellers, it’s an affirmation of the property’s worth and a chance to address possible concerns proactively.
This Redfin article will shed light on the nuances and best practices of inspections in the Grand Canyon State while also featuring expert insights from Arizona home inspectors themselves. Given Arizona’s unique climate and housing trends, understanding the home inspection process in the local context is vital. Let’s get started.
Why should you get a home inspection in Arizona?
Securing a home inspection in Arizona is not merely a procedural step; it’s a strategic move, given the state’s distinct environmental and architectural dynamics. Arizona’s unique climate, marked by intense heat, monsoon seasons, and occasional dust storms, can impose specific wear and tear on properties. These factors might lead to issues like foundational cracks, roof damage, or HVAC inefficiencies that aren’t immediately evident to the untrained eye. Furthermore, with the diverse range of architectural styles and ages of homes in the state, potential hidden complications can vary widely. A thorough home inspection offers buyers peace of mind, ensuring they are making a sound investment, and gives sellers an edge by addressing concerns proactively, promoting a smoother transaction process.
Are there any specialized inspections that Arizona buyers should consider?
Arizona buyers should consider several specialized inspections when purchasing a property. Given Arizona’s unique climate and geographical features, some of the key inspections to consider include a thorough termite inspection due to the prevalence of termites in the state, a comprehensive pool inspection if the property has a pool, a radon gas test, and a geological inspection in areas prone to soil instability or geological hazards.
Kyle Pritchett of Pritchett Home Inspection says that regardless of which specialized inspection you opt for, your inspector should have all the necessary tools and equipment.
“There are a lot of different types of inspections out there today for both sellers and buyers to choose from,” says Pritchett. “So, if you are going to choose one of those, why not choose one that is going to give the inspector an upgrade on what he is able to see? When you select a thermal home inspection, the inspector should be utilizing a top-of-the-linermal camera, which will enable them to detect missing insulation, air leakage, bad window seals, electrical issues, water intrusion, moisture issues, and even pest intrusions they are not able to detect with the naked eye. When making one of the biggest investments of your life, make sure your inspector has the tools to see everything you need to know about the home you’re purchasing.”
Hailey Rodriguez from WIN Home Inspections adds, “In addition to their home inspection, home buyers in Arizona should consider getting an infrared scan to identify abnormalities within the home such as moisture, insulation gaps, energy loss, and electrical hazards that are hidden within the walls, floors, and ceilings of the home.”
Are home inspections required in Arizona?
Home inspections are not legally required in Arizona, but they are highly recommended. They safeguard buyers from unexpected problems and provide an opportunity to negotiate repairs or pricing based on inspection findings.
“Even though a home inspection may not be required for your purchase, it is a great way for a home buyer to prepare for the home they are considering purchasing,” says Dylan Bucknavich of ProInspect. “They reveal a lot about a home and can even include services such as Sewer Scopes, Pool Inspections, and Indoor Air Quality. When purchasing a resale or new home, we highly recommend the buyer speak to few inspectors to get a sense or their experience and level of service.”
How much does a home inspection cost in Arizona?
The cost of a home inspection in Arizona varies based on factors like the property’s size, location, and additional services requested. According to House and Home Inspection Services, home inspections usually cost between $350 and $450 for standard sized houses, though this figure can vary depending on square footage and other factors.
David Dion of Whole Home Inspections recommends prioritizing experience over price when choosing a home inspector. “Home inspection prices in Arizona are generally based on size, age and any additional services requested. It’s important to hire an experienced home inspector who has a trained eye to see what other inspectors may not. Therefore, we don’t recommend using price as your determining factor when trying to find the right inspection company for your needs. However, if a company is a few hundred dollars above or below many others, you may consider asking why.”
Can you sell a house in Arizona without an inspection?
You can sell a house in Arizona without an inspection. However, it’s advisable for sellers to get pre-listing home inspections to attract more confident buyers and streamline the negotiation process.
Expert advice for buyers getting a home inspection in Arizona
“Be present at the inspection, so you can meet the inspector and let them go over the findings with you personally at the end,” says Tim Sponsler of 1st Priority Inspections. “This helps immensely with understanding the property you are purchasing.”
“With inflation and rising costs, life got expensive, really quick,” says Matthew Willer of Truss Home Inspections. “Get a home inspection and get the full picture before making the leap. Repair costs can add up more now than ever before.”
“The average new build home buyer is convinced they do not need a home inspection for a new build, says Cy Porter of CyFy Home Inspections. “The State of Arizona holds builders to a higher standard than most parts of the country. All new build homes in Arizona come with a 2 year state required warranty which includes cosmetic defects. If the buyer wants to have all of their warranted items addressed by the builder, the buyer must identify the defects and present them to the builder. If the builder refuses to address any defects then a complaint can be filed against the builder with the Arizona Registrar of Contractors (ROC). The Arizona ROC will then send out an investigator to verify the defects and then require the builder to address them.” A home inspector can identify warranted defects and hold builders accountable.
“Be sure to hire a licensed, experienced, inspector by asking how long they’ve been performing inspections and how many inspections they’ve performed,” according to DoubleTree Home Inspection Services. “Ask if the inspector provides a review at the end of the inspection to go over the findings so you can see the items for yourself. For items needing repair, it may be preferable to negotiate a discount or credit for repairs, rather than relying on the sellers to make satisfactory corrections.”
“A home inspector may not perform any repairs on a home that they’ve inspected,” says Connor Barickman of Purple Cactus Inspection. “This restriction allows the inspector to remain impartial. The sword cuts both ways because when a home inspector identifies a problem with the home, the inspector is not in a position to provide a quote to remedy the problem. The inspector is not licensed to perform the work and it would be a violation of the code of ethics to do so. Once a problem has been identified, it is time to bring in a licensed contractor. An excellent contractor will be familiar with the most up-to-date standards on how to correct the issues identified on a home inspection report. Furthermore, they can provide accurate written quotes which can be used to make a request of the seller which could be a price reduction, or a request to have the issue repaired before the transaction closes.”
Getting an Arizona home inspection: the bottom line
Getting a home inspection in Arizona is a smart investment. It empowers buyers with information, aids in identifying specialized issues, and facilitates smoother transactions. While not mandatory, an inspection is a practical step towards ensuring a safe and secure real estate investment in the Grand Canyon State.