As landlords struggle to get people back into office buildings that emptied during the pandemic, some are turning to entertainment and other enticements such as yoga classes to woo wary workers.
At the Water Garden office complex in Santa Monica, a dance troupe has taken up residence and puts on free performances and classes for kids. Flower arranging classes are packed and the weekly tenants-only comedy show after work is a hot ticket. Musical performances by local artists are a lunchtime draw.
Farmers markets, concerts, art shows and other attractions for office tenants aren’t completely new, but they have taken on urgency as landlords and executives of companies occupying their buildings strive to get workers enthused about showing up.Some property owners are hiring “tenant experience managers.”
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In most commercial buildings, only about half the workers show up at their offices on weekdays, key-card swipes reveal. Office leasing is also weak: Space rentals declined again last quarter to bring the overall total of unleased space in Los Angeles County to nearly 20%, well above the 12% rate before the pandemic.
To get workers in the office, “you need to find new ways to engage people,” said Bess Wyrick, head of programming at the Water Garden for property manager CBRE.
With daily office attendance not mandatory at many companies, “It’s no longer about trying to create a work-lifestyle balance,” she said. “It’s about creating a hybrid workplace where people are excited to come.”
Hybrid work patterns have spread widely since the pandemic shutdown of 2020. As companies bring workers back together, many have reduced the number of days their employees are required to be in the office, creating flexible combinations of office days and remote work days.
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Cosmetic company L’Oréal Group demands that employees work in the office at least three times a week, on days of their choosing. L’Oréal sweetens the office experience with such comforts as a fitness center, restaurant, juice cafe and a cabana-like bar that serves coffee drinks and, depending on the occasion, alcohol.
Disney Chief Executive Bob Iger recently announced that employees working from home must return to the office Monday through Thursday starting March 1. Fridays are typically the least populated days for offices, research shows, and while most employees toil at home that day, a few companies are taking them off the business calendar altogether and working 32 hours a week.
Landlords are also keen to make offices appealing so tenants will keep renting space in their buildings.
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The campus-like Water Garden was a dreary place after being devoid of occupants during the worst of the pandemic, Wyrick said. While they were gone, nearby businesses and restaurants nearby failed or left for other reasons.
“The area was a ghost town,” she said.
Wyrick’s first move was to arrange live performances by local musicians and dancers in the courtyard. Among the complex’s biggest tenants are retailer Amazon and technology firm Oracle.
One of Wyrick’s goals was to make the Water Garden a place people wanted to visit, including neighbors who could walk over to take in a mid-day concert or see pieces by local artists displayed and for sale in the lobbies of the four office buildings. Getting a buzz of life into the campus could help address a common chicken-and-egg complaint about going back to the office — people don’t want to go there if other people aren’t around.
Paying performers to appear, serving free food to tenants at holiday soirees and other planned events are part of a marketing strategy to get the property occupied, she said.
“We will lose money in the beginning,” she said, “but it drives people to put roots in the space.”
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The key measure of success is leasing, and Water Garden has added tenants over the past 12 months. Its 1.4 million square feet of rental space is 86% leased, up from 72% leased a year ago, Wyrick said.
One of her leaps to enliven the place was to agree to an unusually short lease with a well-known dance company for an expansive first-floor space last occupied by a furniture showroom. In exchange, Jacob Jonas The Company agreed to engage with other tenants through free classes, performances and other events.
The nonprofit dance company has performed at Lincoln Center, the Kennedy Center and the Hollywood Bowl, as well as with such musical artists as Rosalia, Sia, Elton John and Britney Spears.
For years, the company was based in the Wallace Annenberg Center for the Performing Arts in Beverly Hills. The chance to dance in a working office complex built to the buttoned-down tastes of 1990s business executives holds special appeal to company founder Jacob Jonas, a Santa Monica native who got his start as a street performer on the Venice boardwalk at age 13.
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“Our neighbors are some of the leading corporations in our country. There’s something really validating about that and sharing our work,” he said. “When you have people working behind a desk from 9 to 5 and then being able to expose them to creativity and expose them to art in such a unique setting, that crossover is rather beautiful.”
Workers and visitors at the Water Garden can take workshops in floral design, see weekly comedy shows and attend movie nights.
Nearly a fifth of the L.A. County’s office space was unleased at the end of last year, according to CBRE, and more empty space may hit the market soon as tenants hoping to save money try to sublease unwanted space due to concerns of a constricting economy and potential layoffs. Some are reducing their space because their employees are working remotely.
“The general consensus among most economists is we’re heading into a recession,” said Bradford Ortlund, a research manager at CBRE. Many companies are declining to expand their offices or reducing space as they wait for the economic picture to come into focus.
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The nature of upmarket offices was already shifting before the pandemic as many landlords toned down the dramatic formality of their entrances originally intended to confer status and trustworthiness on the companies inside. As aloofness fell out of favor, owners set out to make their lobbies and courtyards places to linger and enjoy rather than simply pass through in awe.
Their desire to get people working remotely back into offices makes hotel-like hospitality freshly valuable, said the owners of U.S. Bank Tower, the tallest office building in Los Angeles at 72 stories.
It was built to be an imposing corporate cathedral in 1989, but landlord Silverstein Properties is close to completing a $60-million makeover intended to make it feel more like a laid-back hotel where tenants and visitors are invited to kick back. The lobby will include a cocktail and juice bar, a coffee bar, a grab-and-go market of packaged foods, communal tables, a large lounge with plush seating and cabanas to add a resort flair.
Staff will focus on hospitality, said tenant experience manager Melanie Navas. People’s names and birthdays are to be remembered. The 54th floor is a tenants-only lounge with a coffee bar and weekly breakfast spreads to help inspire a sense of community. There are yoga classes at the gym on the 57th floor with views of the city.
“The goal is to get people to feel like they want to come back to work and come back to the building,” she and, “and having them leave happy.”
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Art is a top priority for Brookfield Properties, the largest owner of office space in downtown Los Angeles, which has a longstanding program of engagement with tenants. Permanent and rotating art displays are pleasant — and good for occupancy, said Bert Dezzutti, head of the western region for Brookfield.
“Younger workers are more likely to return to the office if they are around art,” he said, citing a survey Brookfield commissioned in the United Kingdom last year that also found that art and cultural activities improve people’s sense of wellbeing and makes them more productive at the office.
“One positive that has emerged from the tragedy of the COVID-19 pandemic is a new focus on what makes a ‘happy’ workplace,” the survey report said. Findings suggest that workers want to work in spaces enriched by art, culture and wellness, which they believe promote creativity and contentment.
“The offices of the future must be more than machines for working in,” the report said, “they must cater to the rich inner life that we all possess.”
One youth-friendly program Brookfield puts on in L.A. is an annual music festival that follows the Coachella Valley Music and Arts Festival. Acts from the popular desert concert series appear after work on four August nights at a Brookfield office and retail complex near Crypto.com Arena.
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Musicians from the Colburn School perform acoustic sets at another Brookfield property. There are DJ concerts open to all and wellness events for tenants that include skin care classes and meditative sound baths.
“We’re creating opportunities for people to interact,” Dezzutti said. “It’s all about engagement.”
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As the old saying goes, “In real estate, location is everything.”
You may not know much about REITs, but you might want to consider one of them as a career. They’re great for people who like real estate, enjoy making money, and need consistent work hours.
Real estate investment trusts (REITs) are companies that were formed to make it easier for individuals to invest in real estate.
Want to know what the top paying jobs in Real Estate Investment Trusts are in 2022?
Well, take a look at this list of 25 best paying jobs for real estate investment trusts and see if you can find one that sounds perfect for you. In addition, each job features information about how much each job pays, what you can expect on the job, any job training needed, and other fun facts!
If you are looking for your next career, this article will give you plenty to think about as well as potential opportunities that may be available to you.
What are real estate investment trusts?
Real estate investment trusts, or REITs, have become an increasingly popular way for investors to get involved in the real estate market. REITs allow people to invest in large-scale real estate projects without having to purchase and manage the properties themselves.
In addition, REITs offer shareholders a wide range of benefits, making them a great choice for those looking to invest in this growing market.
How do real estate investment trusts work?
A REIT is a type of company that owns and operates various types of real estate, and because they are exempt from corporation tax on profits generated through rental income and the sale of rental properties; They are a very attractive option for high-earners.
They pile investors’ money together and invest in various commercial real estate, which increases returns over time. In addition, REITs are generally owned by the general public, and they invest in real estate assets.
Lastly, they make a profit through investments or leasing; a return on investment is typically received as a dividend. Real estate investment trusts are similar to mutual funds in that they hold investments, distribute dividends, and pay taxes.
Is a real estate investment career good?
Real estate investment companies are a great place to start a career in real estate.
Real estate investment trusts (REITs) are one of the most productive industries today. They provide steady and consistent growth, as well as good job opportunities with high salaries. Careers in real estate that can lead to better-paying jobs include appraisers and investment bankers.
Best paying jobs in real estate investment trusts
The market for REITs has grown rapidly in recent years, with the total value of REITs reaching almost $3.5 trillion by the end of 2021 (source).
There are many different jobs in the real estate investment trust industry that come with a variety of salaries. The best paying jobs are reserved for the C-level executives:
Chief Executive Officer: The CEO is the highest-ranking executive officer in a company and is responsible for making major decisions that affect the business. CEOs in the REIT industry earn an average salary of $468,000 per year.
Chief Financial Officer: The CFO is responsible for financial planning and reporting, as well as managing relationships with banks and other lenders. CFOs in the REIT industry earn an average salary of $341,000 per year.
Chief Operating Officer: The COO is responsible for overseeing all day-to-day operations of a company. COOs in the REIT industry earn an average salary of $325,000 per year.
Followed by the attorney, which is one of the highest-paying professionals in real estate investment trusts.
Now, we are going to list the most lucrative jobs in REITs. Then, you can decide… is real estate investment trusts a good career path for me.
The higher paid jobs will come with more education needed and years of experience.
1. Real Estate Attorney Jobs
Real estate attorneys are in high demand for their knowledge of transactional law and contractual issues. They work on a variety of deals involving the purchase, sale, or leasing of real estate. As such, they provide critical legal support to the real estate investment trust (REIT) industry.
Real estate attorneys license in their state to practice law. They can prepare contracts, advise clients on purchases and investments, review documents, represent mortgage lenders at closing, or simply provide legal counsel without the requirement of an attorney’s license.
Consequently, real estate attorney jobs are an excellent opportunity for those looking to work in the REIT industry.
Real Estate Attorney: well over 6 figures (average)
2. Real Estate Developer
Real estate developers are typically involved in the design, construction, and marketing of properties. They are also involved in land assembly and subdivision, zoning regulation, and the establishment of building codes.
Builders are involved in all aspects of the development process, from acquiring land to constructing buildings. Promoters are responsible for finding investors and marketing completed projects. In both cases, real estate developers may work either on their own or with a team of partners.
A developer obtains land and constructs assets for sale, while also selling them off when they become old enough to be sold again.
Real Estate Developer Salary: over 6 figures (average)
3. Director of Real Estate and Facilities
The Director of Real Estate and Facilities is responsible for a variety of tasks within the department. These tasks include, but are not limited to, the following:
Acquiring new properties
Negotiating leases
Overseeing property management
Maintaining the company’s physical infrastructure
Developing and implementing strategic plans
A director of real estate and facilities is a key role in any company that deals with real estate investment trusts (REITs). Therefore, this position often leads to advancement opportunities, making it an excellent career choice for those interested in this growing field.
Director of Real Estate and Facilities Salary: $130,000 a year (average)
4. Director of Acquisition
Directors of acquisitions in real estate investment trusts are responsible for finding new properties to invest in for the company.
Typically, they work with their analysts to conduct due diligence on potential investments and analyze the risks and rewards involved in order to provide a recommendation to their superiors.
The acquisition team is responsible for finding investment opportunities for the company, which can be traditional real estate assets or creative ideas that can become a business. They are constantly on the lookout for new and innovative opportunities that can help bolster the company’s growth.
Director of Acquisition Salary: $125,000 a year (average)
5. Real Estate Agent
As a licensed real estate agent, you would help clients buy, sell, and rent properties. In order to become a real estate agent, you must pass an exam that covers topics such as contracts, ethics, and state laws. You would be responsible for understanding the real estate market and helping your clients make informed decisions about their property transactions.
In the case of REITs, you must be a commercial real estate agent who are in charge of dealing with important financial data. They need to know about the internal rates of return, gross rent multipliers, and capitalization rates in order to do their job effectively. In order to become a commercial real estate agent, you will need some background in business and finance. This knowledge will help you understand your client’s needs and better serve them.
Unlike most professions, the more business deals you close as a real estate agent, the better your pay is. Furthermore, many agents work on commission-based pay, so it’s important to be knowledgeable about the market and have a strong sales skill set.
Agents who are successful can make much more than this amount; however, those who are just starting out may make less until they gain experience and build a client base.
Real Estate Agent Yearly Commission: $100,000 a year (average)
6. Investor Relations Manager
An Investor Relations Manager is responsible for managing the relationship between a company and its investors. They must be able to quickly understand complex financial information and communicate it in a clear and concise way. Additionally, they are responsible for communicating the company’s financial performance and strategy to investors.
They are also responsible for updating quarterly reports on the investor’s online dashboard. This can be a high-stress job because you must keep your investors happy especially during a market downtrend.
Investor Relations Manager Salary: $100,000 a year (average)
7. Project Manager
Project managers are responsible for ensuring that a project is completed on time and within budget.
They work in teams to make sure that all aspects of the project are completed. Thus, they must have strong organizational skills. They also typically have experience in leading and coordinating teams.
This is a highly lucrative job for those building new assets for a REIT. The highest-paid 10 percent earned more than $187,000, while the lowest-paid 10 percent earned less than $59,000.
Project Manager Salary: $90,000 a year (average)
8. Accounting Manager
They do this by preparing financial statements, maintaining accounting records, and overseeing the work of accountants and bookkeepers. In order to qualify for this position, you will need at least a bachelor’s degree in accounting or a related field, as well as several years of experience in accounting or bookkeeping.
However, with experience and expertise in the field, it is possible to earn much more than that. Those who work for real estate investment trusts (REITs) can expect to make even more money.
Accounting Manager Salary: $90,000 a year (average)
9. Asset Managers
Asset Management is a process that oversees the operational and financial work of a portfolio of assets. This includes tasks such as budgeting, forecasting, reporting, and analyzing data to make sure the asset is performing well.
As they are responsible for managing the portfolio assets in the real estate investment trust (REIT), they must expect a higher stress job. In addition, their job entails working with other departments in the company, such as accounting, acquisitions, development, and finance.
Asset Managers Salary: $89,000 a year (average)
10. Construction Supervisor
A construction supervisor oversees all aspects of a construction project, ensuring that it is completed on time, within budget, and to the required standard. This position requires a great deal of experience and knowledge in the field, as well as strong leadership skills.
They make sure that everything runs smoothly! Speficially, all the necessary equipment, materials, and supplies are ordered and on-site when they are needed. They also check the quality of the work as it is being done; making sure projects are constructed in accordance with contract documents, standards, codes, and policy.
In order to become a construction supervisor, you need only a high school diploma or GED. However, five years of experience in yard operations or equivalent education and experience is preferred.
Construction Supervisor Salary: $89,000 a year (average)
11. Investment Due Diligence Analyst
An investment due diligence analyst is responsible for conducting an extensive analysis of potential investments for a real estate investment trust. They work with the team to identify opportunities, underwrite deals, and make recommendations. The role is essential in helping the team make sound investment decisions that will benefit the company in the long run.
This job is a key player in the real estate investment trust (REIT) industry.
To be successful in this role, you’ll need experience with REITs or a national brokerage, as well as excellent quantitative skills including the ability to build real estate valuation models and distribution waterfalls.
Investment Due Diligence Analyst Salary: $80,000 a year (average)
12. Financial Analyst
The most common role of a financial analyst is assessing a company’s current and future financial health, which may include issuing stock recommendations, forecasting earnings, and providing risk analysis. Financial analysts may also work with investment bankers to identify new investment opportunities.
However, salaries can vary significantly depending on the size of the company, the city in which you work, and your level of experience.
Financial Analyst Salary: $80,000 a year (average)
13. Business Acquisition Analyst
An acquisitions analyst is responsible for reviewing potential investments and determining the risks and rewards associated with commercial property.
The analysis will include both macro-level information, such as the political and economic environment, as well as more fine-tuned data that is specific to the investment itself.
Many in this role have found a business degree to be well worth the cost.
Director of Acquisition Salary: $78,000 a year (average)
14. Commercial Property Manager
Property management is a growing field, as the demand for individuals who can manage both residential and commercial properties increases. The goal of property managers is to ensure assets are kept in good condition and are appealing to owners and tenants alike.
Real estate investment managers have a very important job, as they are responsible for meeting the needs of property owners, tenants, and investors.
Primarily, they oversee maintenance and repairs, collect rent, screen tenants and enforce lease agreements. They also may negotiate leases, recommend improvements to the property, and coordinate with contractors.
Commercial Property Manager Salary: $75,000 a year (average)
15. Real Estate Photography
Real Estate photography is a specialized field within the photography industry. As such, many photographers start their own businesses in this area.
In order to be successful, it’s important to have strong marketing and business skills. Your portfolio should showcase your best work and be tailored to the types of properties you will be photographing. Additionally, you may choose to offer additional services such as virtual tours or video production.
A real estate photographer would work closely with the marketing team.
Real Estate Photographer: $70,000 a year (average)
16. Marketing Coordinator
Marketing coordinators are responsible for developing and executing marketing campaigns.
They work with the advertising department to come up with ideas. Then, working with the rest of the company to make sure that those campaigns are executed properly. They create all marketing materials, track campaign results, liaise with outside vendors, and organize events.
Given the regulations around REITs, it is highly important that the marketing communications follow the investment directives from the SEC.
Marketing Coordinator Salary: $67,000 a year (average)
17. Maintenance Supervisor
A maintenance Supervisor is a position that requires managing and overseeing the work of others. Thus, ensuring work is completed in a timely, efficient and safe manner.
They are responsible for making sure all company policies and procedures are followed, as well as any legal requirements or safety regulations. Additionally, they manage budgets and expenses, as well as staff.
The ideal candidate will have experience in the property management or construction industries, as well as supervisory experience. A degree in engineering, architecture, or a related field may be beneficial.
Maintenance Supervisor Salary: $65,000 a year (average)
18. Property Appraiser
Appraisers are typically called in when there is a need to settle a dispute about the value of a piece of property, or when someone is buying or selling a home and needs to know how much it is worth.
Most states require that you be licensed in order to practice as an appraiser. The job outlook for appraisers is good; the Bureau of Labor Statistics predicts that employment will grow by 4% from 2020-2030 (source).
Property Appraiser Salary: $60,000 a year (average)
19. Leasing Consultants
Leasing consultants are responsible for meeting and greeting clients, touring potential tenants through a property, and helping them decide whether or not to lease it. They must be knowledgeable about the property they are showing, as well as about the local rental market.
Consequential, this is a good job for someone who is able to close deals, so being persuasive is important.
They should also be outgoing and comfortable working with people from all walks of life. A high level of professionalism is essential, as is attention to detail. Leasing consultants typically earn commissions based on the number of leases they sign, making this a commission-based job.
Leasing Consultant Salary: $50,000 a year (average)
20. Commerical Real Estate Intern
Commercial real estate internships are a great way to get started in the commercial real estate industry. Many internships will give you the opportunity to work with the CEO/COO and learn about all aspects of the business.
In most internships, you will gain vast knowledge while working with every department within the company.
Consequently, interns often have the chance to work with different teams and learn about all aspects of commercial real estate. This is a great way to gain experience in the field. Plus you will get a well-rounded working experience and the opportunity to build your network.
You must be a college student who is detail-oriented, self-starter, creative and strategic thinker in order to be considered for any real estate internship.
Commercial Real Estate Intern Salary: unpaid to $20 an hour
(Source for All Salary Information: Glassdoor.com)
Bonus = Real Estate Investors
Real estate investors use a variety of strategies to make money in the real estate market. Some invest a minimal amount of money, while others take on high-risk ventures.
In order to be successful, investors must be well-versed in real estate investment strategy and have extensive knowledge of the market.
This is why REITs are so popular with most investors. It allows a hands-off approach to real estate investing. Yet, still profit in the real estate appreciation and rental income.
Real Estate Investors Salary: varies on the amount of money invested but most want at least a 6-10% return
What real estate investment jobs are entry level?
Real estate investment is one of the best paying jobs in the world. The job offers a lot of opportunities for growth and allows you to work with different types of people.
It also has a relatively low barrier to entry, making it a great option for those who are starting their careers.
Most people in real estate started at the bottom and worked their way up the corporate ladder with hard work and persistence.
What are the minimum requirements for entry level real estate jobs?
The industry is growing rapidly and there are many different opportunities for those looking to enter the field. However, it’s important to note that entry-level jobs in this field come with specific skill sets and education requirements.
Most require at least a college degree if not at least 5 years of hands-on experience. One of the best places to start without any qualifications and education is as a leasing consultant
If you want to progress quickly in your career in real estate, consider taking a chance on one of the best paying jobs in REITs listed here. In fact, there are many jobs available in real estate investment trusts.
REITs – Which real estate investing job looks appealing to you?
The REIT industry is constantly growing, and with that comes new opportunities for a lucrative career path.
Many of the roles in a REIT are highly challenging, pay well, and are respected by investors. Many people work together as a team to build new projects, manage existing projects as well as work to finance them.
There are plenty of benefits of spending time researching this industry and finding the job for you.
In fact, it is an exciting and rewarding career!
Know someone else that needs this, too? Then, please share!!
Higher mortgage rates may discourage some existing homeowners from selling and giving up record-low interest rates they got over the previous couple of years.
New listings during the four weeks that ended April 23 fell 22.4% nationwide from a year earlier, according to Redfin research. The lack of new homes for sale nationally may have had a positive effect on Dallas-based rental giant Invitation Homes, chief executive officer Dallas Tanner said Tuesday in a first-quarter earnings call.
Rental giant’s new South Texas factory to produce prebuilt homes for D-FW
Tanner said that “lock-in effect” limits supply, supporting home prices and rent growth and keeping renters in their homes. The company, which owned 83,000 rental homes nationwide as of March 31, faces the competitive market itself when selling its own properties.
D-FW Real Estate News
Get the latest news from Steve Brown and the business staff.
“We’re seeing evidence of this supply-and-demand imbalance when we list our homes for sale and receive multiple competing offers at great prices,” Tanner said.
In addition to the lack of inventory of homes for sale, Tanner said rising costs of homeownership are further driving the demand for single-family home leasing.
Nationally, the average monthly cost of owning an entry-level home in the U.S. was $3,428, while the average monthly payment to rent a similar home was $2,130, according to John Burns Research & Consulting.
In the Dallas-Plano-Irving metro division, the average cost of owning a single-family home was $3,389, over $1,000 more than the average cost to rent a similar home at $2,346, according to John Burns data. In the Fort Worth area, homes cost $2,900 to buy versus $2,023 to rent, a difference of $877.
Renting is still far less expensive in Dallas-Fort Worth than in other metros
Tanner said during a recession, more people may stay in rentals and the company could see more opportunities to grow.
“Since our inception, we’ve matured and performed through a variety of operating and macroeconomic environments, including a global pandemic and record-high inflation,” Tanner said. “Throughout this time, we’ve witnessed the resilience and the relative strength of our business.”
The lack of new inventory may also give Invitation an edge over smaller single-family rental companies struggling to grow their portfolios, Tanner said. Invitation, meanwhile, struck a deal with PulteGroup in 2021 to help bring thousands more rental homes to the market.
Nation’s biggest homebuilders could boost D-FW footprint during lending crunch
“As we see some of these smaller operators who are having trouble getting scale or sizing up, there could be potential [mergers and acquisitions] over the next couple of years,” Tanner said.
Investors purchased about 30% of all single-family homes in the Dallas-Fort Worth area last year, according to John Burns data. Companies like Invitation that own more than 1,000 homes represent only a sliver of the local housing market, far surpassed by small investors.
As of March, Invitation Homes owned 2,847 homes in D-FW with an average monthly rental rate of $2,128.
Demographic trends are favoring the company with more millennials reaching its average resident age of 39 and individuals and families wanting the convenience of leasing but the features of traditional single-family homes such as more space, garages and yards for their kids and pets, Tanner said.
“Today’s residents are requesting flexibility and choice, along with the appeal of a down-payment-light lifestyle.”
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This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Right now, many people are exploring different industries looking for the right career change.
As such, people are intrigued about the real estate market, but don’t want to start their own company. So, working for a REIT may be a good fit for you.
Real estate investment trusts, or REITs, are publicly traded investment vehicles that allow investors to pool their money and invest in a wide variety of real property assets. These assets can be diversified by investing in an ETF that holds a portfolio of different REITs.
First of all, careers in REIT tend to be highly lucrative and the industry is growing by leaps and bounds.
When viewed as an industry, REITs make significant contributions to the tax base and the job market. Plus the community is the benefactor of all real estate improvements.
in 2020, REITs contributed an estimated 2.9 million full-time jobs to the U.S. economy (source).
In this article, I will tell you how many positions are available in REITs and what these jobs entail.
What are real estate investment trusts?
Real estate investment trusts, or REITs, are a type of security that owns and operates income-producing real estate. REITs are a great way to invest in real estate without having to be a property owner.
When you buy into a REIT, you are not actually buying any real estate yourself–you are simply investing in a company that owns and operates real estate. The company will not resell the properties it acquires; instead, it will hold on to them and generate profits from rent or lease payments.
How many real estate investment trusts are there?
There are a great number of real estate investment trusts, or REITs, across the globe. These trusts have a combined equity market capitalization of $1 trillion and hold a vast array of properties- from apartments to hospitals to data centers.
In the United States, there are more than 225 real estate investment trusts (REITs) that are registered with the Securities and Exchange Commission (SEC) and trade on one of the major stock exchanges.
Over 1,100 REITs have had tax returns filed according to the IRS. Thus, most REITs are privately held.
What is the job outlook for people in real estate investment trusts?
The job outlook for people in real estate investment trusts is good because the real estate industry is growing and there is a lot of opportunity for people who are interested in this field.
The real estate industry is always changing, so it is a good field to be in if you want to have a lot of opportunities for growth.
The job market for people in real estate investment trusts is expected to grow at a rate of about 10% per year. This means that there will be more high-level positions available in the next few years. In addition, 30% of all REIT jobs require a business degree to start at a managerial level. However, you can find entry-level positions to begin your career.
How Many Jobs are Available in Real Estate Investment Trusts
Currently, there are over 1,500 jobs available in real estate investment trusts on Linkedin and 3000 more on Indeed.
There are many different career paths that one can take on within the industry of real estate investment trusts, with different salaries and opportunities.
Best paying jobs in Real Estate Investment Trusts
Asset managers, for example, can make upwards of $200,000 per year. Other high paying positions include those of developers, acquisitions professionals, and investor relations personnel.
It is important to remember that these roles often intersect and overlap, so it is important to be aware of what companies are hiring for what positions. There are many industries in which you can work for a REIT, including construction projects and residential leases.
Real estate investment trusts, or REITs, are becoming more popular as a way to invest in the real estate market. These trusts are responsible for every aspect of a real estate project, from finding and acquiring properties to managing them and leasing them out. This requires a variety of different professionals, including asset managers, accountants, lawyers, and engineers.
Types of Jobs Available
There are also many jobs available in the field of real estate investment trusts (REITs). A REIT is responsible for every aspect of a real estate project, from development to management.
The company also needs to ensure its success, which requires a lot of hard work and dedication. There are professionals managing the trust’s assets and overseeing its portfolio.
If you’re interested in working in this field, there are many opportunities available to you including:
Property Manager
Commercial Developer
Acquisition Team Member
Financial Analyst
Marketing Coordinator
Construction Supervisor
Check out the full list of available jobs in real estate investment trusts.
Each of these positions has different responsibilities and duties.
For example, a real estate agent is responsible for helping REIT buy or sell properties. A property manager is responsible for overseeing the maintenance and operations of a property, while a financial analyst decides whether or not the assets are living up to their financial obligations. Finally, a commercial developer is responsible for designing, constructing, and managing commercial developments.
How do I become a real estate investment trust professional?
You should be able to identify opportunities and analyze data to make sound investment decisions.
You should have experience in financial analysis, accounting, and investing. Excellent communication and interpersonal skills are also important, as you’ll need to work with clients, investors, and other professionals in the industry.
There are many things to consider when you’re thinking about becoming a real estate investment trust professional. The most important factor is making sure that this is the right career path for you. There are many benefits to working in REITs, but it’s important to make sure that you’re ready for the challenge.
Once you’ve decided that this is the right career for you, there are some basic steps that you need to take in order to get started.
The first step is getting educated on the topic. There are many courses and programs available that can teach you everything you need to know about real estate investing. After you’ve completed your education, it’s time to start building your network. Meeting other professionals in the industry and getting connected with potential mentors will help set you up for success.
The final step is finding a job in the industry. There are many opportunities available, so it’s important to do your research and find the company that’s right for you. Working in REITs can be a rewarding experience, and with the right preparation, you can be on your way to a successful career in real estate investment trusts!
What are the requirements to work in a real estate investment trust company?
The requirements to work in a real estate investment trust company vary depending on the company, but typically a degree in business, finance, or economics is required, along with experience in the real estate industry. Some companies may also require experience in accounting, investment banking, or the law.
In order to work in a REIT company, you must meet some requirements.
First and foremost, you must be passionate about real estate investment. Secondly, you must be able to devote the time and resources necessary to do your job well. Finally, you must be able to meet the company’s standards and uphold its values.
REITs are required by law to invest in real estate–so it’s important that you have a firm understanding of the market before working in this industry. In addition, REITs are limited in terms of the number of shareholders they can have (no more than 50% held by five or fewer people). Lastly, REITs are mandated to pay out 90% of their taxable income each year so that investors can benefit from regular dividend payments.
How Much Can You Earn Working for a REIT?
Smaller companies with lower profit margins usually offer the lowest-paid jobs. Larger companies with higher profits and more complex job tasks often pay more than smaller ones do.
According to Payscale, the average base salary for the REIT industry is $75,000 a year (source). This is above the median salary of $60000. Thus, jobs within the REIT industry are more lucrative than you can find in other industries.
Lead Analysts and Senior Analysts are the most popular jobs within the industry with annual salaries of $80,000 and $90,000. It’s important to note that these figures are national medians and may vary depending on location.
Executive-level jobs offer the highest earning potential with the average salary for a senior executive position reaching well over six figures ($105,000). However, it is also worth mentioning that these earners typically have an ownership stake in their company.
Therefore, if you’re looking to maximize your earnings as a REIT employee then working for a large company is your best bet.
How Many Are Real Estate Investment Trust Jobs Being Created Each Year?
The number of jobs in real estate investment trusts is growing rapidly, with more than 1000 positions becoming available each year.
REITs are a type of business that creates many jobs.
The number and percentage of these jobs will vary depending on the specific industry in which the REIT operates; however, there are always many opportunities for those interested in this field. It’s important to research the particulars of each position in order to decide which is best for one’s interests.
Individuals can be employed in a variety of positions in the REITs sector, including accountants, construction managers, leasing consultants, property managers, and financial analysts.
There are a variety of job opportunities in REITs, depending on the specific department or position you’re interested in.
Many even are early morning jobs too!
Other jobs in real estate investing
Plenty of different jobs are available in the real estate industry and can be broken down into three main categories:
People who invest in real estate
Those who manage or develop properties
Employees who provide support services.
There are a variety of job descriptions to fit your experience level.
In fact, if you keep using these good excuses to miss work, then a job change is probably needed.
REITs – Real Estate Industry a Possibility for You?
It is important to know how many jobs are available in a particular field so you can see if it’s worth pursuing as your career.
As this article showed, real estate investment trusts, or REITs, makeup one of the higher paying jobs. Surprisingly, it has one of the lower barriers to entry as a career field.
Plus, there are more than hundreds of thousands of people who are employed by REITs.
You can earn a lot of money working for a REIT, depending on the company you work for and the job you have.
Start your job search now.
Know someone else that needs this, too? Then, please share!!
How to Make $500 a Month in Passive Income – SmartAsset
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You can produce $500 a month in passive income through savings accounts, certificates of deposit, stocks, bonds, funds and other investment vehicles. Each offers varying rates of return, degrees of safety, convenience, and liquidity. And each requires a significant initial investment to produce the required amount of passive income.
A financial advisor will be able to help with your investment decisions.
How to Make $500 a Month in Passive Income
Passive income generally refers to money you receive automatically without having to do anything such as work for wages. The most common way to generate passive income is through purchasing investments that pay you interest or dividends.
Producing passive income in this way calls for putting in money rather than putting in the effort. However, once you have invested the money, you can cash checks or receive deposits to your bank account without any intervention on your part.
And there are many investments you can make to produce $500 monthly in passive income. Here are some of the most accessible and reliable:
Savings Account
A bank or credit union savings account is as passive, safe and convenient as you can get. The top-paying savings accounts yield around 4.5% annually. At that rate, depositing approximately $133,333 will give you $500 monthly.
Certificates of Deposit
Certificates of deposit (CDs) are relatively safe, somewhat better-paying and a little less convenient than savings accounts. The best one-year bank certificates of deposit yield about 5% annually. So if you buy a $120,000 12-month CD, you’ll get about $500 in passive income each and every month.
Bonds
Corporate bonds are riskier than bank deposits. But AAA-rated bonds are generally considered safe and historically yield a little over 4%. If you buy $125,000 worth of AA-rated bonds, you can expect to receive the equivalent of $500 a month. That usually comes in quarterly, semi-annual or annual payments.
Dividend-paying Stocks
Shares of public companies that split profits with shareholders by paying cash dividends yield between 2% and 6% a year. With that in mind, putting $250,000 into low-yielding dividend stocks or $83,333 into high-yielding shares will get your $500 a month. Although, most dividends are paid quarterly, semi-annually or annually.
Diversified Securities Portfolio
A diversified securities portfolio of 60% stocks and 40% bonds has returned about 6.1% annually on average for the last decade, according to Vanguard. If future performance matches past performance, which is not guaranteed, $100,000 invested in a well-chosen 60/40 portfolio could grow by about $6,000 a year. The return includes dividends as well as price appreciation, so you may have to sell some of your investments to get $500 a month.
Exchange-Traded Funds
Low in cost and easy to buy, passively managed exchange-traded funds (ETFs) produce returns that vary according to whether they track stock, bond or other indexes. To cite one example, Vanguard’s High Dividend Yield ETF yields approximately 3%. You’d need to invest approximately $167,000 to get $500 a month in passive income from that ETF.
Real Estate
Purchasing shares of a Real Estate Investment Trust (REIT) is one popular way to get passive income from real estate. Publicly traded REITS pay dividends at an average rate of about 3%. So you’d need $167,000 to produce $500 in monthly passive income this way.
Other income opportunities that are somewhat less passive can also provide regular monthly income with varying amounts of effort. Drop shipping, for example, is a business model that involves setting up an online store and taking orders for products that pass directly to a supplier, who fulfills them without you having to do a thing except accept payment.
Direct investments in real estate, such as purchasing rental properties, can produce income that the internal revenue service (IRS) views as passive income, entitling it to more favorable tax treatment than earned income from working. However, managing residential real estate can involve considerable effort and attention on your part unless you pay a management company to take care of leasing, repairs and other tasks.
Bottom Line
To generate $500 a month in passive income you may need to invest between $83,333 and $250,000, depending on the asset and investment type you select. In addition to yield, you’ll want to consider safety, liquidity and convenience when selecting the investments you’ll employ to provide monthly passive income. However, once you’ve made the decision and put down your money, you can expect to receive regular payments without much, if any, additional future effort.
Tips for Investing
Financial advisors help investors analyze various investment options and can help create a plan of action to meet their goals. Before investing in any passive income investments, consider talking with an advisor to understand how it fits within your portfolio. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
When investing your money, it is important to diversify your assets among many different types of stocks and bonds. This helps you gain exposure to multiple sectors of the market and benefit from their growth. Our asset allocation calculator helps you select a profile that’s right for you based on your answers to simple questions.
Mark Henricks
Mark Henricks has reported on personal finance, investing, retirement, entrepreneurship and other topics for more than 30 years. His freelance byline has appeared on CNBC.com and in The Wall Street Journal, The New York Times, The Washington Post, Kiplinger’s Personal Finance and other leading publications. Mark has written books including, “Not Just A Living: The Complete Guide to Creating a Business That Gives You A Life.” His favorite reporting is the kind that helps ordinary people increase their personal wealth and life satisfaction. A graduate of the University of Texas journalism program, he lives in Austin, Texas. In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.
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Real estate can be a great addition to your portfolio if you’re hoping to diversify and create passive income. And investment property loans can make it easier to purchase property if you’re interested in owning real estate directly. However, qualifying for an investment property loan is a little different from getting a mortgage to buy a home that you plan to live in. It helps to know what to expect and what’s required before wading in. Here’s what you need to know.
You can also talk to a financial advisor about the pros and cons of borrowing to purchase an investment property.
Understanding Investment Property Loans
Investment property loans are loans that you can use to buy a property that you plan to generate income from. You would do that by leasing it to one or more tenants who pay rent back to you on a monthly basis.
Generally speaking, you can use an investment property loan to buy a property that has between one and four units. The types of properties you may be able to buy include:
Single-family homes
Multi-family homes, such as a duplex or triplex
Condominiums or townhomes
Manufactured homes
There are also investment property loans for investors interested in flipping real estate. Rather than generating a steady stream of passive income, flippers aim to purchase a property at a low price and renovate it, then resell it at a higher price to turn a profit.
Investment Property Loan Requirements
Is it easier to get an investment property loan versus a mortgage to buy a primary home? Not necessarily, as lenders typically impose more requirements for investment property loans.
Compared to a traditional purchase loan for a home, loans for investment properties may require you to have:
Higher credit scores
More cash in reserves
A larger down payment
Evidence of past experience with managing investment properties
You may also need to provide additional details about the property itself. This includes information about the neighborhood where it’s located, how much rental income it’s currently generating and estimates of how much income you expect it to produce once you own it.
Why is getting a loan for an investment property more challenging? One simple reason: These loans can pose a greater risk to lenders.
Let’s say that you have a main home that you live in, which has a mortgage. And you have a second home as an investment property. If your renters don’t pay up or you can’t keep the second home rented long-term, that could put you in the position of having to stop making the mortgage payment in order to keep up with the loan on your primary home.
Once the loan goes unpaid long enough, it goes into default which can lead to other consequences, including foreclosure. Lenders don’t want borrowers to default on investment property loans, which is why they can make it harder to qualify.
Types of Investment Property Loans
If you’re interested in getting a loan to buy an investment property, you have more than one option. Banks, credit unions and online lenders can offer investment property loans.
The range of loans you have to choose from can depend on the lender, while the loan terms that you’re able to qualify for can hinge largely on your credit score, income and the specifics of the property.
The main types of investment property loans include:
Conventional Loans
A conventional loan may be your first choice if you’re planning to buy a single-family home as an investment property. Conventional loans can offer fixed rates and longer loan terms, but you’ll likely need a higher credit score to get the lowest rates.
FHA Loans
The Federal Housing Administration (FHA) allows you to use FHA loans to buy investment properties with multi-family homes with up to four units. There is one requirement: You’ll need to live in one of the units for at least 12 months to qualify.
VA Loans
Veterans and military service members can use the VA loan program to purchase investment properties with as many as seven units, with no money down. Similar to FHA loans, borrowers must live in one of the units to qualify.
Owner Financing
A less traditional option for buying an investment property is owner financing. With this type of arrangement, you borrow from the seller and make payments back on a set schedule. This type of loan agreement may require you to make one large balloon payment at the end of the term.
Home Equity Loans
If you own a home and have a significant amount of equity, you could borrow against it to buy an investment property. A home equity loan provides you with a lump of money that you might use to buy a second home to rent out. Similar to first mortgage loans, home equity loans can offer fixed rates and lengthy terms.
Hard Money Loans
Hard money loans or bridge loans are more commonly used to purchase fix and flip properties. With these loans, you can get the money you need to buy the property and renovate it, but you typically have to pay it back within 12 to 18 months.
When searching for an investment property loan, it’s important to check the minimum qualification requirements first. That can help you weed out loan options that aren’t a good fit. Once you’ve narrowed down the list, you can take a second look to compare interest rates, down payment requirements, fees and loan terms.
How to Get an Investment Property Loan
Getting an investment property loan is something of a process and you may need a little patience to get through it. Here are the main steps involved in getting loans for investment property:
Find a Lender
The first thing you’ll need to do is find a lender that offers investment property loans. You can start with your bank. Then branch out to other banks, credit unions and online lenders to see what options are available.
Apply for a Loan
Next, you’ll need to apply for the type of loan you’re interested in getting to purchase an investment property. At a minimum, you’ll need to provide your personal information along with some details about the type of property you want to buy and the loan amount you’re seeking.
Provide Documentation
Any time you’re applying for a mortgage, the lender will ask for certain financial documents, including tax returns and bank statements. You’ll also need to share any information you have on the property, including its current rental income if available.
Get the Property Appraised
The appraisal determines how much an investment property is worth. A thorough appraisal should also provide you with details of comparable rental properties in the area and the income they generate.
Close on the Loan
Assuming that you’ve checked off all the lender’s boxes, the final step is closing on the loan. At this stage, you’ll need to review and sign the loan paperwork, transfer your down payment to the lender and pay any closing costs due.
Bottom Line
Investment property loans can help you get a step closer to your financial goals if they include owning real estate for passive income. Before applying for a loan, it’s important to understand what’s required to qualify, as well as what you might pay in interest and fees.
Investing Tips
Real estate can be a great investment though owning rental property isn’t necessarily right for everyone. Talking to your financial advisor can help you weigh the pros and cons if you’re unsure whether property ownership is a good move. If you don’t have a financial advisor yet, finding one doesn’t have to be difficult. SmartAsset’s financial advisor matching tool makes it easy to connect with professional advisors in your local area. You can get personalized advisor recommendations just by answering a few simple questions. Get started now.
While the upfront cost might be your main focus when getting an investment property loan, it’s important to consider the longer-term cost of owning rental property. In addition to mortgage payments, you’ll be responsible for maintenance and upkeep, repairs, property taxes and insurance. All of those things can affect your profits when renting property, so remember to look at the bigger financial picture before you buy.
Rebecca Lake, CEPF®
Rebecca Lake is a retirement, investing and estate planning expert who has been writing about personal finance for a decade. Her expertise in the finance niche also extends to home buying, credit cards, banking and small business. She’s worked directly with several major financial and insurance brands, including Citibank, Discover and AIG and her writing has appeared online at U.S. News and World Report, CreditCards.com and Investopedia. Rebecca is a graduate of the University of South Carolina and she also attended Charleston Southern University as a graduate student. Originally from central Virginia, she now lives on the North Carolina coast along with her two children.
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There’s no secret password when it comes to getting a mortgage. But while most people know what to do to get a mortgage — or get a better rate — fewer people give thought about what not to do.
Whether you’re preparing to apply or just got approved, there are perhaps more “don’ts” than “dos” when it comes to getting a mortgage.
New Credit Is Bad Credit
Never apply for any new credit while you’re trying to get a home loan. Opening new credit decreases your net worth by giving you more available debt. This makes you a riskier investment in the eyes of a mortgage lender.
As such, you can suffer from higher interest rates or even get denied a loan. This includes co-signing for other people’s credit, which is the same as applying for your own credit in the eyes of the bank.
Opening new bank accounts and moving money between existing accounts is also a bad idea, even though you aren’t technically applying for any new credit.
And while we’re at it, leasing a car might not be the same as buying one but it also falls under this general category of avoiding new debts.
Quitting Your Job
This one is pretty much a no-brainer. While your credit score and credit history pay a big role when it comes to whether or not you get a mortgage, so does your income.
Quitting your job without having another one lined up is never a good idea, but when you’re applying for a home loan, it’s just about the worst idea out there. Switching careers isn’t the best plan either, even if you have a job waiting for you.
Lenders want to know that you have a steady income stream that (probably) isn’t going anywhere.
Depositing Phantom Funds
Underwriters want to be sure that all funds in your bank accounts are actually yours and not money your parents gave you to make it look like you have more funds than you actually do.
Talk to a mortgage advisor before you put anything into your bank account that doesn’t come from a payroll within 60 days of applying for a mortgage. After 60 days, mortgage lenders are less interested in having a paper trail for everything.
If you’ve just had some kind of cash windfall, keep the money in your mattress until after you’ve closed.
The exception? Properly documented gifts. Talk to your mortgage advisor about creating the right paper trail for gifted money.
Ins and Outs of Credit
Closing old credit accounts can potentially lower your credit score, as the length of your credit history is as important as what you’ve done with your credit. Discuss it with your advisor before you close any outstanding accounts.
The same goes for paying off unsecured credit lines or credit cards while you’re applying for a loan. When you pay off your outstanding consumer credit accounts, you might not be able to use the money for a down payment.
While on the subject of credit cards, we should say that you generally should not be charging significant sums on your credit card before or during the loan application process.
Try and pay off whatever you charge every month. This is because even a few points can make a significant difference in what you pay for your home over the life of the loan in the form of interest.
Discuss your specific situation with your mortgage advisor.
Listen To Your Advisor
If there’s one piece of advice that you should take away from this article, it’s consult closely with your mortgage advisor throughout the process. They’ll be able to tell you what to do and not to do in a manner far more specific to your situation.
Still, be mindful of your credit and remember it is under especially close scrutiny during the mortgage process. Keep your eyes on the prize — your new home.
Nicholas Pell is a personal finance writer based in Los Angeles, CA. He is the last of the die-hard renters.
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Leasing momentum continues Across the portfolio, leasing momentum continued: “We signed more than 1,200 leases for more than 5.9 million square feet in the quarter,” Simon said. “We have an additional 1,500 deals in our pipeline, including renewals for approximately $570 million in gross occupancy cost. More than 25% of our leasing activity in the … [Read more…]
Job growth surprised again in April, this time rising more than expected. Total nonfarm payroll employment rose last month by 253,000 jobs, compared to March, according to data released Friday by the Bureau of Labor Statistics.
“Job growth for the prior two months was revised downwards, but on net, the labor market is stronger than expected, including wage growth up 4.4% over the past year,” Mike Fratantoni, the Mortgage Bankers Association’s chief economist, said in a statement. “This rate of growth is likely faster than would be consistent with the Federal Reserve’s 2% inflation target.”
The unemployment rate also fell slightly to 3.4%, with 5.7 million persons unemployed at the end of the month. Overall the unemployment rate has shown little net movement since early 2022.
“The unemployment rate fell and is now lower than it has been since 1953,” Lisa Sturtevant, Bright MLS’chief economist, said in a statement. “The strong employment report adds to the complicated labor market picture, as it comes on the heels of this week’s JOLTS report that showed that the number of overall job openings fell as fewer people were switching jobs.”
With the resiliency of the job market and the continued wage growth, experts believe the Federal Reserve may not be done hiking interest rates just quite yet.
“The April data suggests that the Fed may not be able to pause interest rate hikes when they meet next month,” Sturtevant said. “And while the risks of a 2023 recession have increased, it is very likely that a downturn later this year would be mild, without significant job losses that often accompany economic recessions, given the current strength in the labor market.”
Sturtevant also said that she does not expect the housing market to take a major hit if labor market conditions weaken.
“The strength of most local housing markets is highly dependent on the local employment situation, and we’ve been seeing that relationship play out over the past several months,” Sturtevant said. “Even if the Fed increases the federal funds rate again next month, it is possible that mortgage rates could come down, with lingering uncertainty in the banking sector and declining consumer confidence pushing investors to safer investments, like U.S. Treasuries. Falling mortgage rates would provide more juice to the U.S. housing market, which has been relatively subdued this spring.”
The construction sector added 15,000 jobs in April, thanks to a large uptick in the specialty trade contractors segment of construction, which gained 26,700 jobs, with residential specialty trade contractors gaining 16,700 of those jobs. Meanwhile, residential construction of buildings lost 1,800 jobs and heavy and engineering construction lost 8,100 jobs, month over month.
““Despite declines in the number of single-family homes under construction, residential construction labor demand remains strong. Building a home does not readily lend itself to outsourcing and automation. Home building still requires manual labor as a key input into the production process,” Odeta Kushi, First American’s deputy chief economist, said in a statement. “There are still a near-record number of homes under construction, and you need more hammers at work to build these homes. Additionally, builders have had trouble attracting and retaining skilled construction workers, making them less likely to part with skilled workers.”
The real estate, and rental and leasing sector gained 9,800 jobs in April, with real estate gaining 8,700 jobs, and rental and leasing added 1,100 jobs.
In February 2020, a combined 300,000 were employed in “real estate credit” and as mortgage and non-mortgage loan brokers. As of March 2023, there were roughly 340,800 people in those jobs, suggesting that the industry still has a large number of cuts to make in the coming months as the housing market remains at a much cooler level than a year ago.
The lion’s share of the job growth in April came from gains in the professional and business services sector (up 43,000 jobs), the leisure and hospitality sector (up 31,000 jobs), the social assistance sector (up 25,000 jobs), and the health care sector (up 40,000 jobs).
“As was the case in recent months, job growth remains concentrated in just a few sectors, particularly health care and hospitality. Although we have seen several public layoff announcements, the job growth in these few sectors continues to offset losses in technology and other industries, including the mortgage market,” Fratantoni said. “A solid job market will provide support to the housing market. However, the inflationary pressures from this strong wage growth will likely prevent the Federal Reserve from cutting rates any time soon, even if they now are at the peak for this rate cycle.”
These days, more Americans are opting to buy their cars online — from researching vehicles to making final purchases and having the cars delivered, all from the comfort of their homes. With the surge of car-buying apps, online car marketplaces and more dealerships that offer online options, it has become increasingly easy and accessible to trade in traditional dealership shopping with online car-buying.
A 2022 Cox Automotive Car Buyer Journey survey found that 68% of car shoppers plan to complete most of the car-buying process online in the future, while 80% of respondents agreed that it’s a good or great idea to buy a car entirely online.
Indeed, buying a car online can be more convenient for many: Buyers can complete the entire process from their couches and have a variety of options at their fingertips. However, there are advantages to in-person car-buying, namely the ability to negotiate, that online car purchases might not offer. Consider these advantages and disadvantages when deciding which option is right for you.
Buying a car online
Consumers who want to purchase a car online have several options. Top car-buying platforms like Autotrader and Carfax offer car listings from dealerships and private sellers and let shoppers search by make, model and price. Online auto dealers like CarMax and Carvana also have apps where buyers can complete the entire buying process and have a car delivered, while traditional marketplaces like Facebook Marketplace and Craigslist allow shoppers to find options in their local areas.
Advantages of buying a car online
Buying a car online offers shoppers the ability to complete the car-buying process at their own pace and without the pressure or hassle of going to a physical dealership. Additional benefits of purchasing a vehicle this way include:
You don’t have to leave your house
The clear benefit of choosing to complete the car-buying process online is the convenience it provides. Shopping through an app can save you time if you’re too busy to visit a dealership and is a useful alternative for those who are unable to visit a lot in person due to accessibility reasons. Most vehicles available through these platforms can even be shipped and delivered to you, meaning you truly do not need to leave your home.
There are more options available
Car apps and online marketplaces allow shoppers to expand their shopping radius and view more options than would typically be available from strictly going to a local dealer. Shopping from a larger pool can make it easier to find the car you’re looking for, which is particularly useful in the current market where supply-chain issues and a shortage of semiconductor chips continue to limit available options.
It’s easy to compare vehicles
Even when you do extensive research online before going to a dealer, it’s hard to keep track of and compare all your car options on the lot. Although some carmakers offer comparison tools on their websites, you can only compare vehicles from that maker — you can compare different cars made by Honda, for example. Many online platforms offer tools that make it easy to compare cars from different makers, side by side.
For example, the online car-shopping platform Edmunds has a car comparison tool that lets you view up to four cars side by side, with information like pricing, consumer ratings, standard features and other specifications like engine power.
Edmunds, and other apps like TrueCar, also offer built-in tools like buying and leasing loan calculators that can help buyers determine how much they can afford to pay monthly.
Disadvantages of buying a car online
Although buying a car online can be convenient, there are also some disadvantages to shopping this way. Here’s what you can expect.
You can’t see the physical condition of the car
One of the most important steps in the used-car buying process is test-driving the vehicle to see how it actually runs on the road. While you can get a general sense of how reliable a car might be online or through a vehicle history report, driving the car in person makes it easier to spot any potential problems, and it helps to ensure you don’t pay for a damaged vehicle.
Note that some online car services like Carvana and Vroom have return policies that allow buyers to return vehicles they’ve purchased, within a certain time frame.
There’s less room for negotiation
When buying a car from an in-person seller or dealer, there’s typically room to bargain down the sticker price. However, some online auto retailers like Carvana do not negotiate on pricing, which means that the price a vehicle is listed at is always the price you’ll pay.
Buying a car in person
Despite the rise of online car-buying, most Americans still buy their cars in person or at least complete the bulk of the car-buying process in person.
Advantages of buying a car in person
Physical car shopping means that buyers can see the cars they’re interested in, in person, and test drive their options. Some additional pros to buying a car in person include:
You can negotiate the price
It’s typical for buyers to negotiate a vehicle’s price down, whether they’re buying from a private seller or from a dealer. And doing so can often save them a lot of money off a car’s sticker price. Note that the recent car market has given dealerships the flexibility to add market adjustments to a vehicle’s manufacturer’s suggested retail price, or MSRP. These adjustments can sometimes be negotiated.
In contrast, as noted above, there’s typically no room to negotiate when buying a car entirely online, which means the price you see is the price you pay.
Potentially more incentives
The number of deals and incentives available to buyers in the current market continues to be limited. However, traditionally, it’s common for manufacturers and dealers to offer incentives and discounts in the form of lower financing rates, lease deals or cash rebates on the lot.
While you can browse new car incentives and rebates offered by make on platforms like Edmunds, incentives are typically not offered or readily available through online car retailers like Carvana, for example.
Disadvantages of buying a car in person
In addition to the inconvenience of visiting a dealer, often limited car options and how hard it can be to compare vehicles side by side, downsides to physical car shopping also include:
Pressure to make a purchase
Online car shopping apps allow you to go at your own pace. If no car piques your interest, you can take a break. However, on the lot, salespeople often have quotas and get paid based on how much they sell. This means they can be pushy and pressure buyers to make a purchase when they’re not ready to, or to buy a car that may not be right for them. Know that you can always walk out at any point during a sale.
Less financing flexibility
Dealerships make money off of financing your car with their lender or loans. This means they want you to finance through them, giving you less flexibility with what financial institution you can use to finance your car. On the bright side, if you enter a dealership with a preapproved loan offer, show the dealer you’re prepared and require it to match your preapproved interest rate, you can save money in the long run.
Bottom line
The important thing to know about how you choose to purchase a car is that it doesn’t have to be all or nothing. You can choose to start your car-buying process online by researching and seeing what cars are in your area, and then visiting the dealership to complete the purchase in person. Regardless of which option you chose, make sure you do your research and purchase through a reliable app, marketplace, seller or dealer.