Apache is functioning normally

January 23, 2024 by Brett Tams

In recent years, the real estate landscape has undergone a profound transformation, marked by the popularity of build-to-rent homes. This innovative housing model, conceived for rental purposes, has emerged as a trend that not only caught the eye of industry stakeholders but has also redefined the expectations of both landlords and tenants.

In this deep dive, we will unravel the foundation of build-to-rent homes, comb through its growth path from its inception, evaluate its current status and think about the potentially far-reaching impact it may exert on the rental market.

Understanding build-to-rent homes

Build-to-rent homes represent a departure from conventional real estate development, as they are residential properties designed and constructed with the sole purpose of being rented out rather than sold. These purpose-built developments often manifest as part of larger rental communities, strategically incorporating an array of amenities and services to elevate the overall living experience for tenants.

What characterizes build-to-rent homes?

The terms “build to rent,” “built to rent,” “BFR” and “B2R” are interchangeable, all denoting properties constructed explicitly for long-term rentals. Rather than being purchased from other owners, these homes are constructed by owners with the specific intent of catering to tenants.

These properties can be owned by individuals or managed by companies, particularly within build-to-rent communities. The variety of build-to-rent homes includes single-family dwellings on standard-sized lots, small lot homes with closer proximity, duplexes featuring two attached units, triplexes with three attached units and row homes and a series of side-by-side houses sharing a common wall.

The origins of the trend

The roots of the build-to-rent trend delve into the need to adapt to the changing dynamics of the housing market. Factors such as urbanization, a shifting preference for flexibility among millennials and young professionals and a heightened desire for a convenient and hassle-free lifestyle contributed to the initial emergence of this trend. Its early development stages can be traced back to the early 2010s, witnessing a significant surge in build-to-rent developments that were crafted in response to the needs of the housing market.

The evolution of build-to-rent

The evolution of build-to-rent homes is intertwined with the broader socioeconomic shifts shaping our cities and communities. As urbanization accelerated, there was a demand for housing solutions that catered to the dynamic lifestyles of individuals seeking convenience, flexibility and a sense of community. The traditional model of homeownership faced challenges in meeting these evolving needs, paving the way for the rise of build-to-rent homes.

These purpose-built developments were conceived as more than just housing units; they aimed to create entire communities tailored to the modern renter’s lifestyle. Developers, typically a property management company, envisioned amenities like those of apartment buildings like fitness centers, swimming pools, communal spaces, co-working areas and on-site services to foster a sense of belonging and convenience within these rental communities. The objective was not merely to provide shelter but to curate an enhanced living experience that rivaled traditional single-family rentals.

Current status and popularity

As we cross the threshold from 2023 into 2024, the build-to-rent trend continues to gain momentum, asserting itself as a prominent player in the real estate domain. Investors and developers, discerning the potential for stable returns in the rental sector, have propelled a surge in construction projects exclusively dedicated to build-to-rent properties. The demand for such homes spans a diverse demographic spectrum, encompassing young professionals, families and retirees, all of whom are drawn to the benefits that build-to-rent communities offer.

The surge in popularity is not only a result of demographic shifts but also indicative of changing attitudes towards homeownership. The younger generations, in particular, are increasingly valuing flexibility and experience over the long-term commitment of owning a home. The advantages of build-to-rent properties, such as communal living, shared amenities and hassle-free maintenance, align seamlessly with these changing preferences.

Impact on landlords

Build-to-rent homes have ushered a shift for landlords, presenting a host of advantages that extend beyond the traditional rental model. One of the most significant benefits is the higher renewal rate. Tenants, appreciating the convenience and plethora of amenities provided in these purpose-built communities, are more inclined to renew their leases. This not only ensures a stable income stream for landlords but also fosters a sense of community and stability within these rental developments.

The streamlined management of build-to-rent properties is another boon for landlords. Centralized management, often facilitated by professional property management companies, allows for more efficient operations. From maintenance and security to community events and amenities, the integrated approach reduces the burden on individual landlords, contributing to a smoother and more sustainable rental model.

Furthermore, the scalability of build-to-rent developments provides investors with the opportunity to diversify their portfolios. The ability to own and manage multiple units within a single community or across various locations enhances the potential for economies of scale and mitigates risks associated with individual property management.

Impact on tenants

Tenants, the primary beneficiaries of the build-to-rent paradigm, stand to gain numerous advantages from choosing these purpose-built homes. These properties are meticulously designed with tenant needs in mind, offering an array of amenities such as fitness centers, communal space and on-site maintenance services. The emphasis on privacy is a notable characteristic, often achieved through detached or well-insulated units, setting build-to-rent homes apart from traditional rental options and providing tenants with a more comfortable and private living experience.

The communal aspect of build-to-rent living is a significant draw for tenants: This living experience aligns with the social preferences of modern renters, particularly the younger demographic, who prioritize connections and experiences over isolated living. The flexible lease terms offered by build-to-rent developments also cater to the transient nature of contemporary lifestyles. With the option for shorter leases and the absence of the burdensome responsibilities associated with homeownership, tenants can embrace a lifestyle characterized by mobility and adaptability.

Looking ahead at the future of single-family homes

As we cast our gaze into the future, the build-to-rent trend is poised to continue shaping the housing landscape in profound ways. The flexibility, convenience and community-oriented features of these developments are likely to attract an even broader spectrum of renters.

Moreover, advancements in sustainable and smart building technologies hold the promise of further enhancing the appeal of build-to-rent homes, making them a sustainable and forward-thinking choice for both landlords and tenants.

The integration of green building practices, energy-efficient technologies, and smart home solutions align with the growing emphasis on sustainability in the real estate sector. These innovations not only contribute to environmental conservation but also offer cost-saving benefits for both landlords and tenants. As society becomes more conscious of its ecological footprint, the incorporation of sustainable practices in build-to-rent developments positions it as a responsible and future-ready housing solution.

The confluence of these trends is not merely a fad; rather, it signifies a redefinition of how we conceptualize and experience rental housing. The integration of these elements is set to leave an major mark on the housing market, influencing its trajectory for years to come.

Looking for a place to rent, whether build-to-rent or something different. Check out our available apartments and houses for rent here.

Apache is functioning normally

January 16, 2024 by Brett Tams

A college degree can be a major rite of passage and career stepping stone for millions of Americans. Putting one’s education to work can unlock professional rewards and a solid financial future.

However, there’s no denying that the cost of tuition can be daunting. The student loan debt balance has surged 66% over the past decade and, according to the Federal Reserve, currently totals more than $1.77 trillion (that’s trillion, not billion).

Having those payments unfurling before you can be stressful and frustrating, and the effects of student loan debt can be far-reaching. It can seem as if some of your personal, professional, and financial goals will have to wait until you can pay off what you owe. But there are ways to manage those loans and navigate this situation. After all, student debt is what you are going through, not who you are.

Here, you’ll learn more about student loan debt, how it can impact borrowers’ life decisions, and ways to minimize those effects and manage debt more effectively.

Student Loan Debt Statistics

To understand how impactful student loan debt can be, here’s some perspective. Consumer debt in the United States is measured by the Federal Reserve in five distinct categories — home, auto, credit card, student, and other debt.

Using the Federal Reserve Bank of New York data from 2023, here’s how household debt stacks up in the U.S.:

• Mortgage debt (excluding HELOCs, or home equity lines of credit): $12.14 trillion

• Student loan debt: $1.599 trillion

• Auto loan debt: $1.595 trillion

• Credit card debt: $1.079 trillion

Here’s how educational debt stacks up more specifically: In 2023, the average student loan borrower carried $37,338 in federal debt and $54,921 in private debt.
💡 Quick Tip: Enjoy no hidden fees and special member benefits when you refinance student loans with SoFi.

Impact of Student Loan Debt on Life Plans

Given the cost of student loan debt, some borrowers may delay big life decisions, such as buying a home or starting a family until they are further along in their loan repayment or have their debt totally paid off. Here are some specifics about the potential negative effects of student loan debt. Then, more happily, you’ll find tips on managing what you owe.

Homebuying

One landmark study in the Journal of Labor Economics found that a $1,000 increase in student loan debt lowered the rate of homeownership by approximately 1.8% for people in their mid-twenties who went to a public college for four years. This is equivalent to a delay of about four months in achieving homeownership per $1,000 in debt.

Indeed, as student debt has increased, homeownership among younger Americans has decreased. Experts, however, caution that this is a complex situation and not a matter of student debt meaning you can’t buy a house.

It’s true that student loans can raise a person’s debt-to-income ratio (DTI), a critical measure of creditworthiness. And it can slow an individual’s ability to save for a down payment.

That said, there are ways to get a mortgage with a student loan. By managing debt responsibly and building your credit score, you can achieve this goal. It’s also wise to look into the various mortgages available with as little as 3% down or even 0% for qualifying candidates.

Pursuing Graduate School

If you have undergraduate student loan debt, you may decide to delay or forgo enrolling in a graduate or professional degree program. Graduate school can often mean even more debt. According to the Education Data Initiative, the average graduate student loan debt is $76,620 among federal borrowers, with only 14.3% of that coming from the borrower’s undergraduate studies.

That said, an advanced degree can mean increased job opportunities. For example, the starting salary for those who majored in computer and information sciences of a recent graduating class was $86,964 with a bachelor’s degree and $105,894 with a master’s degree. And if you want to go to medical school, law school, or business school (which can lead to fulfilling and lucrative careers), you will need significant additional training. So it’s important to determine if taking out the debt is worthwhile vs. your anticipated earning potential.

Employment and Career Choices

What you’ve just read indicates some of the ways that student loan debt can impact your career plans. There are a couple of other ways that your loan balance might impact your career:

• If you have significant debt and are faced with the choice between your dream job at a lower salary and a basic job at a higher pay grade, you might opt for the one that fattens your bank account even though it doesn’t thrill you.

• Also, some companies (particularly those in the financial industry) may check your credit score as part of your job application. Student loans could build your score if you pay on time, and they could broaden your credit mix. But loans also create the opportunity to make a late payment or miss one entirely. Those are aspects of your payment history, the single largest contributor to your score. If you don’t stick to your schedule and pay what you owe every month, you could wind up with a lower score.

Marriage and Divorce

Student loans can also impact one’s personal relationships. According to a 2023 Student Loan Planner® survey, one in four borrowers said they delayed their marriage plans due to student debt. In addition, more than half of respondents (57%) said their student loans were a source of considerable stress in their marriage or relationship.

Marriage can impact your student loan payments, depending on the types of loans you have and the repayment plan you are on. If you are on an income-based repayment plan, your monthly bill might change based on how much you and your spouse earn and how you file your taxes.

Marriages and money can create complex situations that are hard to fully decode. When looking at the impact of student loan debt on divorce, it can be tricky to unravel the interplay of factors. One survey conducted a few years ago found that 13% of respondents attribute student loan debt as a cause of their divorce. Yet some couples with student loan debt were more likely to delay divorce due to their student loans and how it might impact their ability to repay their debt. So in matters of the heart and the wallet, there isn’t a clear consensus.

Recommended: How Marriage Can Affect Your Student Loan Payments

Starting a Family

According to the USDA and other government statistics, it can cost more than $330,000 to raise a child to age 18. That’s no small amount, and it’s a daunting figure for many. Those carrying a hefty amount of student debt may delay parenthood as they pay off their loans.

One landmark New York Times survey in 2018 found that among people who didn’t plan to have children at all, 13% said it was as a result of student debt. In a more recent study of those with high student debt, 35% said they were waiting to have kids due to the impact of their loans on their finances. Still others may respond to this scenario by adopting strategies to pay off student loans faster.

Saving for Retirement

One of the negative effects of debt on young adults is that their retirement savings can be impacted. A recent study conducted by Fidelity found that 84% of borrowers felt that their loans impacted their ability to save for their retirement.

A study from a few years ago bore this out: Research by the Center for Retirement Research at Boston College found that Millennials who had never borrowed student loans saved twice as much for retirement by age 30 as college graduates who have student debt.

Here’s another bit of intel that supports the fact that student debt can make it harder to save for your future. Fidelity also found that the percentage of student loan borrowers who put at least 5% of their salary into their retirement plan rose from 63% to 72% during the Covid-19 loan payment pause.

Delaying retirement savings can mean playing catch up in your later years. Typically, the earlier you start saving for retirement, the more time your money will have to benefit from compound interest.

It can seem overwhelming to start saving for retirement while you’re still paying off student loan debt, but doing both at the same time can help you meet your financial goals in the future.
💡 Quick Tip: Refinancing could be a great choice for working graduates who have higher-interest graduate PLUS loans, Direct Unsubsidized Loans, and/or private loans.

How to Manage Your Student Loans

As you’ve just read, student loans can impact many areas of your life. But you are not alone in this situation, and your loans will not be with you forever. Focus on smart solutions to help you manage your debt repayment. Consider the following strategies.

Keep Paying

Even when money is tight, it’s wise to pay on time, as much as possible. Timely payments are the single biggest contributing factor to your credit score, an important financial metric. So do your best to keep current on those monthly installments.

Make a Budget

It’s hard to effectively manage your student debt and your finances in general if you don’t know how much money you have coming in and going out. If you don’t yet have a budget or yours isn’t working well for you, commit to reviewing different budgeting methods and finding one that works.

This process of tracking your money and possibly trimming your spending could reveal ways to free up more funds to pay off your debt.

Repayment Plans

There are federal student loan repayment plans that base your monthly payment on your income or ones that give you a fixed monthly payment. Those that are based on your income may help you lower your monthly payment.

It can be worthwhile to consider your options. For fixed payments, you may have a choice between standard, graduated, and extended plans. If you focus on income-driven repayment (IDR) plans, you will likely review the SAVE Plan (which replaces REPAYE), PAYE, IBR (income-based repayment), and ICR (income-contingent repayment) plans. With IDR plans, once you satisfy a certain number of months of qualifying payments, you can be eligible for forgiveness on the remaining balance of your loan(s).

Deferment and Forbearance

If you are finding it challenging to pay your federal student loans, you may be able to take advantage of deferment or forbearance, which are both ways of pausing or lowering your payments for a specific period of time. Perhaps you haven’t yet found a job after graduation or have another situation that is impacting your ability to pay; these programs can help qualifying borrowers out.

The main difference between is that during deferment, borrowers are not required to pay the interest that accrues if they have a qualifying loan. With forbearance, however, borrowers are always responsible for paying the interest that accrues, no matter what kind of federal loans they have.

Forgiveness

Here’s another path to lessening the impact of student loans on your life: forgiveness, which means you may not have to pay back some or all of your federal student loans. For these programs, there are a variety of qualifying factors, such as whether you’re a teacher, government employee, or worker at a nonprofit. Other factors could be that you have a disability, your school closed, or you declared bankruptcy, among others. It’s worthwhile to research your eligibility because the upside could be significant.

Recommended: A Look at the Public Service Loan Forgiveness Program

Refinancing

Another possible way to reduce the impact of student debt on your life is student loan refinancing.

When you refinance your loans you take out a new loan with a private lender. Depending on your credit history and financial profile, you can qualify for a lower interest rate, which could substantially lower the amount of money you pay in interest over the life of the loan (depending on the term you select, of course). Two important notes about this:

• When you refinance federal loans with a private loan, you forfeit federal protections and benefits (such as the forbearance and forgiveness options mentioned above).

• If you refinance for an extended term, even though your monthly payment may be lower, you may pay more in interest over the life of the loan.

To see how refinancing could help you manage your student loans, take a look at an online student loan refinance calculator.

The Takeaway

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

SoFi Student Loan Refinance
If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOSL0124001

Source: sofi.com

Apache is functioning normally

January 6, 2024 by Brett Tams

The seniors who are often the parents of Generation X and Generation Y (millennials) could become a pronounced expense for their kids in the coming years, but adult children also want to see their parents successfully age in place.

This is according to a commentary from Sarita Mohanty, president and CEO of elder financial advocacy organization The SCAN Foundation in a commentary published by Fortune.

There will be 16 million “middle-income” seniors in the U.S. by 2033, Mohanty said, citing a 2022 study from the National Opinion Research Center (NORC) at the University of Chicago.

“As NORC’s research summary explains: ‘Many will struggle to pay for the health, personal care, and housing services they need. […] Even with home equity, nearly 40% will not be able to afford assisted living,’” she cited.

These kinds of expenses have only become more burdensome over time, Mohanty said.

“In 2002, adults over 65 spent $48,000 (adjusted for inflation) a year on average, according to data from the Bureau of Labor Statistics,” she wrote. “Today, the average is $58,000, a more than 20% increase. The average rent and medical costs for those in assisted living currently stand at $65,000 a year.”

The far and away preference for both U.S. seniors and their children is for the seniors to age in place in their own homes, Mohanty said. Citing a survey from Today’s Homeowner, 89% of Americans at or over the age of 55 want to remain in their homes.

But a late 2023 survey by CNBC found that nearly 60% of Americans feel they are not on track to retire comfortably, Mohanty pointed out, and that lack of assurance in their own retirement security means the younger generations are often unprepared to assume any support position for their parents.

“Something has to give,” she said. “If you’re in the sandwich generation – Gen X and older millennials – and want to share in the responsibility for their parents’ retirement, you should begin by thinking of your parents’ retirement plans in the context of your own.”

In December, the U.S. Department of Housing and Urban Development (HUD) announced a $40 million notice of funding opportunity to connect seniors in affordable housing with resources that could help them age in place.

The reverse mortgage industry often describes its product as a vehicle that can help older Americans remain in their homes since a core requirement of any reverse mortgage is for the borrower to remain in the property as their primary residence.

Apache is functioning normally

January 2, 2024 by Brett Tams

Home decor is a manifestation of personal style, and 2024’s interior design trends provide even more ways to express your point of view—boldly.

The accent walls and mid-century modern furniture that ruled 2023’s interior design trends aren’t disappearing entirely. But in the upcoming year, we can say goodbye to standard design rules and all-minimal-everything. Embrace clashing patterns, chrome counters, ultra-luxurious materials, and maximalism. Whether that means trading in beige soft sheets for a Barbiecore pink bedding set, or adding bow-adorned wallpaper to your kitchen a lá Sandy Liang, nothing is off-limits in 2024.

Like a fun pair of heels or sparkly party dress, 2024’s home trends are all about embracing creativity and fun. With expert input from interior designers and trend predictors, explore the five most popular interior design trends of 2024 that will help you express your individuality through your space.

2024 Interior Design Trend: Kitschy Kitchens

Oleksandr Shcherban//Getty Images

Gone are the days of clean marble and white walls in the kitchen. In 2024, we can expect to see more personality, color, and spunk in this essential area.

“We’re going to say goodbye to farmhouse kitchens, and hello to Kitschy Kitchens, or what we like to call ‘Kitschens,’” says Pinterest global trends and insight lead Sydney Stanback. “A way that people can tap into this trend is through incorporating thrifted finds, vintage appliances and eye-jarring pops of paint into their kitchen designs and cooking areas.”

2024 Interior Design Trend: Plenty of Patterns

Harrison Eastwood//Getty Images

Clean white walls are on their way out. “Having languished in the realm of neutrality for what feels like an eternity, we’ve witnessed the rise and subsequent demise of farmhouse, mid-century modern, and the all-encompassing minimalism craze. The universal aesthetic is teetering on the edge of ‘been there, done that,’” says Danielle Walish, Havely’s VP of merchandising and product design. “People are craving homes with character, personality, and a bit of oomph–a bold departure from the subdued styling that has held sway for too long.” Now, it’s time for a pattern on pattern (on pattern) renaissance.

“We’re not just talking about a small print here and there,” Walish elaborates. “It’s all about mixing it up–upholstery, textiles, wallpaper and beyond. From classic stripes to whimsical florals, modern motifs to organic botanicals. It’s all about making a statement.”

2024 Interior Design Trend: Master Metals

First chrome metallics came for statement earrings, then they came for home interiors. In 2024, metallic hues will enter living spaces in a new, big way.

“A trend that we’ve been seeing pop up recently, specifically within the fashion space–thanks to a certain very iconic artist who was on tour this summer–is cool silver tones. And cool silver tones and bold chrome will continue to grow in 2024, but will also evolve into the home category,” Pinterest’s Stanbuck says. “People trade in their trusty neutrals for something a bit more hardcore. We especially see that Gen Z and Millennials on Pinterest are driving this heavy metal aesthetic.” Aluminum accents are a shortcut to bring the shiny trend into home decor.

2024 Interior Design Trend: Saturated Spaces

asbe//Getty Images

Whether you want a pop of pink or a moody sitting room, 2024 is all about accessorizing with color. “From rich blacks and sultry navies to more lively hues of blues, greens, and even pinks, the color trends of 2024 advocate for a daring approach,” says Havenly design editor Heather Goerzen. “Excitingly, we’re observing a refreshing pushback against the ubiquitous all-white aesthetic. Whether through the application of monochromatic paints or the embrace of deep, saturated color schemes, color in all its glorious shades is reclaiming the spotlight.”

The expert notes that the trend manifests everywhere from painted alcoves and striking wallpapers to deep wood tones and evocative upholstery. “If ever there was a moment to unleash your color perspective,” Goerzen says, “it’s now.”

2024 Interior Design Trend: Updated Luxe Materials

Quiet luxury was never just about fashion; it also crept into the home. “A year ago, everything, everywhere, was light-washed oak, calacutta marble, and matte accents,” Havenly VP of creative and design Shelby Girard reflects. “At first, this felt like such a refreshing scene–it was simultaneously calm and inspiring, collected and effortless. However, with such widespread adoption, particularly with new builds, the aesthetic began to feel a little…expected.” That’s why, in 2024, we’re seeing a return to luxurious materials of yore.

“As traditional design is once again taking center stage, we’ve seen a backlash against the usual materials and a desire to seek out elements that in and of themselves are more unique, dramatic, and notable,” Girard explains. “Think richly veined marbles in a range of striking colors, lush velvets with added dimension, crystal chandeliers for a hint of glamour, dark wood tones that speak to heritage, and un-lacquered hardware for a lovely patina.”

Why trust Harper’s Bazaar?

For more than 150 years, Harper’s Bazaar has been the preeminent fashion, beauty, and lifestyle resource for women at every age. We cover what’s new and what’s next in home by working with the world’s leading authorities in interior and architectural design, textiles, and more. Every story we publish has been thoroughly researched and vetted by our team of editors and industry experts.

Tatjana Freund is Hearst’s Fashion & Luxury Commerce Editor, covering beauty, fashion and more across multiple brands. Previously, she worked at ELLE.com and Marie Claire. She’s a fan of whiskey neat, podcasts that give her nightmares, and one time Zoë Kravitz laughed at a joke she made.

Source: harpersbazaar.com

Apache is functioning normally

January 1, 2024 by Brett Tams

Mortgage interest rates continued their decline this week and have hit the lowest level in six months since May of 2023. Mortgage interest rates are now at an average of 6.61%, easing from 6.67% last week. The typical monthly mortgage payment for a $400,000 home is now at $2,046. While NAR’s Pending Home Sales shows flat data from October to November, the recent week’s rate decline should motivate buyers who had been priced out of the market.

There are many signs of encouragement heading into 2024 in the housing market, such as more housing inventory from home builders, lower mortgage interest rates, and demographics. This year, even the youngest baby boomer (born between 1946 and 1964) turned 60 years of age. Baby boomers are the largest share of home buyers and may be looking for their retirement property. Last year, half of older boomers paid all cash for their homes and are less concerned with mortgage interest rates. Additionally, millennials (the largest adult generation) may be looking for their first property or a move-up family home. Housing demand is apparent. With added inventory and better mortgage interest rates, 2024 looks like a better year.

Source: nar.realtor

Apache is functioning normally

December 29, 2023 by Brett Tams

Broker, Fulfillment, Servicing Software Products; Housing for the Aging Population

This website requires Javascrip to run properly.

Broker, Fulfillment, Servicing Software Products; Housing for the Aging Population

By:
Rob Chrisman

Thu, Dec 28 2023, 10:54 AM

If someone reports their company for tax evasion in the U.S., he or she will receive 30 percent of the amount collected. Have you ever loaned someone money and had them not pay you back? Here’s one thing that you can do to them (IRS’ 1099-C). While we’re on the general topic, despite strong retirement savings, Fidelity Investments’ Q3 2023 analysis reveals a surge in hardship withdrawals and 401(k) loans, addressing short-term financial challenges. By the numbers: 3 percent took hardship withdrawals (up from 1.8 percent in 2022). 8 percent tapped into 401(k) loans (compared to 2.4 percent last year). The silver lining? Retirement balances are on the rise, and savings rates remain steadfast. For those planning retirement, consider suggesting reverse mortgages as a game-changer. They offer an alternative, allowing access to funds without swiftly depleting hard-earned savings. If you haven’t set up reverse division at your shop, well, 10,000 people a day turn 62. Today’s podcast can be found here, and this week’s is sponsored by Gallus Insights. Mortgage KPIs, automated at your fingertips. Gallus allows you to go from data to actionable insights. If you can use Google, you can use Gallus. Hear an Interview with attorney Brian Levy on the NAR lawsuits and the implications for housing finance moving forward.

Broker and Lender Software, Products, and Programs

Are you a compliance nerd? A group of mortgage industry veterans has launched a software company for loan servicing that is getting a lot of attention. Keep your eyes and ears open for MESH software (Mortgage Enterprise Servicing Hub), which is their brand name for a series of software products aimed at loan servicers. The first product runs hundreds of compliance rules on loan portfolios daily, so servicers have a daily review of all loans against everything the CFPB, Agencies and States can throw at them. Look up “MESH Auditor”.

It’s time to start planning for the year ahead! Join the Computershare Loan Services (CLS) team from January 22 – 24 in The Big Easy for MBA’s Independent Mortgage Bankers Conference. With CLS’ originations fulfillment, co-issue MSR acquisition, subservicing, and mortgage cooperative, IMBs can streamline their operations, minimize expenses, and maximize profits. Contact the CLS team today to schedule a meeting in New Orleans.

Ring in the new year with a kinder outlook by joining us for the highly anticipated “Kind Mindset” event presented by Kind Lending. Taking place on January 16th, 2024, at The Buckhead Club in Atlanta, GA, this immersive event is designed to empower attendees with valuable insights on growth, success, and mindset. With an impressive lineup of speakers, including Kind Lending’s CEO/Founder, Glenn Stearns, and special guest Captain Charlie Plumb, 6-year Prisoner of War and former Fighter Pilot, this event promises to be a transformative and inspirational experience. Get ready to cultivate a “Kind Mindset” and embark on a journey of transformation and success. Register today.

Aging, Down Payments, and Housing Demographics

Do you think getting old is hard? The U.S. Census Bureau released a report showing that about 4 million U.S. households with an adult age 65 or older had difficulty living in or using some features of their home. About 50 million, or 40 percent, of U.S. homes had what were considered to be the most basic, aging-ready features: a step-free entryway into the home and a bedroom and full bathroom on the first floor. About 4 million or 11 percent of older households reported difficulty living in or using their home. The share increased to nearly 25 percent among households with a resident age 85 or older. Over half (about 57 percent) of older households reported their home met their accessibility needs very well, but only 6 percent of older households had plans to renovate their home in the near future to improve accessibility.

In general, Zillow expects home prices to remain roughly flat in 2024, with only a 0.2% increase in its housing market index. Existing home sales are expected to fall further to 3.74 million. Zillow does mention that this forecast does not take into account the latest forecast from the Fed, and the expectation for big rate cuts in 2024.

Falling mortgage rates have put some spring in the step of the homebuilders, according to the latest NAHB / Wells Fargo Housing Market Index. As one would expect, with mortgage rates down roughly 50 basis points over the past month or two, builders are reporting an uptick in traffic as some prospective buyers who previously felt priced out of the market are taking a second look. With the nation facing a considerable housing shortage, boosting new home production is the best way to ease the affordability crisis, expand housing inventory and lower inflation. But builders have lagged production for so many years…

Non-builder loan officers find the builder world a tough nut to crack. Many, if not most, big builders are dealing with the mortgage rate issue by subsidizing buy-downs. Builders generally build free upgrades into their models, and these funds are being used to buy down the rate. The builder gets full price for the house, loses a few points on the mortgage, which might have instead gone to upgraded countertops or something else.

Even if one can get approved for a loan, buying can still be prohibitively expensive. Receiving help from family and friends for that crucial down payment can be a major turning point for many consumers. In fact, nearly 2 in 5 homeowners (39 percent) have received down payment assistance, according to LendingTree’s Mortgage Down Payment Help Survey, of nearly 2,000 U.S. consumers. 78 percent of Gen Z homeowners reported some financial support for a down payment, mostly from their parents. 54 percent of millennials have received down payment help, followed by 33 percent of Gen Xers.

Almost a third (31 percent) of Americans think putting down 20 percent for a down payment is obligatory. However, 59 percent of current homeowners say their down payments were less than 20 percent of the home’s purchase price, and just 29 percent put down 20 percent or more. One in 10 Americans never took out a mortgage, while 15 percent had a mortgage but have since paid it off. Baby boomers are the most likely to have paid off their mortgages, at 29 percent.

As anyone shopping for a home can tell you, it’s slim pickings out there. For many years we have been seeing the biggest squeeze in the starter home category. It appears that for years part of the problem is a lack of confidence to move up to the next category. People in starter homes are staying put, which is keeping homes off the market.

Capital Markets

It was another slow news day yesterday without any meaningful economic data or news to move sentiment. However, investors are laden with optimism as a soft-landing for the economy comes into view and seem to be throwing caution to the wind with over 150 basis points of Fed Funds easing fully priced in for next year. In accordance with that, benchmark bonds rallied to fresh highs yesterday after the U.S. Treasury sold $58 billion in 5-year notes to excellent demand. The strong auction exposed some short positioning, and it invited additional late buying. That followed Tuesday’s $57 billion 2-year Treasury auction that attracted a record number of indirect buyers to snap up high yields before the Fed’s anticipated rate cuts, which are fully priced in to begin at the March meeting in just over 80 days. Yields on benchmark treasuries have dropped to levels not seen since the summer.

Today has a fuller calendar than the past two sessions in regard to economic news. We are under way with initial jobless claims (+12k to 218k, a little higher than expected), continuing claims, advanced economic indicators for November (goods trade balance, retail inventories, and wholesale inventories), none of which moved rates. Later today brings the NAR’s Pending Home Sales Index for November, Freddie Mac’s Primary Mortgage Market Survey, and another large amount of supply from the Treasury, headlined by $40 billion 7-year notes. We begin the day with Agency MBS prices worse a few ticks (32nds), the 10-year yielding 3.81 after closing yesterday at 3.79 percent, and the 2-year is down to 4.25.

Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

December 28, 2023 by Brett Tams

CAAS, TPO, Tech, LOS Products; Fitch on First American’s Hack; Freddie and Fannie Forecasts

This website requires Javascrip to run properly.

CAAS, TPO, Tech, LOS Products; Fitch on First American’s Hack; Freddie and Fannie Forecasts

By:
Rob Chrisman

Wed, Dec 27 2023, 10:54 AM

Susan Toste writes to Ira Selwin who sends me (see how these things work?), “Can you believe it is 364 days until Christmas and people already have their lights up?” Goldman Sachs asks interviewees, “How many square feet of pizza are eaten in the U.S. each year?” (The trick is to work through the logic, not necessarily come up with the right answer.) Learning math is something that everyone does, to one degree or another, and doesn’t typically go onto a resume. (I learned math a whole different way than they do now in China or Japan.) What’s on your resume? How about Scapulothoracic Hypermobility? The Financial Times reports that “Banks (worldwide) shed 60,000 jobs in one of worst years for cuts since financial crisis.” I regularly receive questions about the number of LOs who have left our business. “Plenty” doesn’t ever satisfy the person asking the question, but I don’t know the exact number. Many LOs gradually scale back the number of states in which they’re licensed but continue originating: how do you count them? But a decent source is the NMLS site: knock yourself out. Anyone searching for a new company home can post their resume for free at www.lendernews.com where employers can view them for a nominal charge of $75. Today’s podcast can be found here, and this week’s is sponsored by Gallus Insights. Mortgage KPIs, automated at your fingertips. Gallus allows you to go from data to actionable insights. If you can use Google, you can use Gallus. Hear an interview with Gallus Insights’ Augie Del Rio on how lenders are benchmarking and leveraging data to make more informed analytical decisions.

Broker and Lender Programs, Software, and Products

Amazon was able to fulfill the one billion purchases made during its cyber deals event thanks to automated decision systems developed by its Supply Chain Optimization Technologies team. Much like Amazon, Dark Matter Technologies’ Empower LOS uses process automation to drive down costs and make loan production faster and more efficient. With solutions for retail, wholesale and correspondent lenders, Empower’s all-in-one functionality provides users with lights-out automation, unrivaled efficiency and exceptional borrower and user experiences in a new era of mortgage lending. Explore how Empower can transform your business.

“Did you know yesterday was National Thank You Note Day? At Optimal Blue, we couldn’t think of a better opportunity to express our sincere gratitude for our clients and partners across the industry. This includes 3,500+ originators, 1,200 lender companies (including 64 percent of the top 500 lenders), 2,400 broker companies, 260 investors, and 70+ industry vendors. While we didn’t drop handwritten cards in the mail, we are packaging up plenty of product innovations to send to you in 2024. In fact, we plan to bring you even more innovation in the coming year. And as a company that already averages 300+ product enhancement releases annually, this is not a commitment we make lightly. On behalf of the entire Optimal Blue team, we wish you a happy New Year. We can’t wait to tackle the year ahead as your trusted partner.”

“AFR Wholesale® is excited to present a unique opportunity that benefits you and your clients: the Jingle Bell Float Down. From now until 12/29/2023, lock your loans with us and enjoy the security of our special offer. With the Jingle Bell Float Down, you can lock your loan for up to 30 days. When the loan goes for final review, we’ll adjust to the current day’s rate, ensuring you get the best deal without falling below your locked price. This offer applies to all AFR’s loan programs and is available through the Correspondent Non-Delegated, Correspondent Table Funded, and Brokered Channels. *Please note, some exclusions do apply. Ready to lock in your loans? Visit the AFR Loan Center now! To learn more about this exciting opportunity, connect with AFR: visit here, email us, or call: 1-800-375-6071. Don’t miss out on this special offer: Contact AFR today!”

Tired of high fixed costs and low retail volume? Thinking of adding a correspondent channel but not sure how to do it efficiently? Blue Water (“Blue Water Financial Technologies Services, LLC”) has a comprehensive Correspondent-as-a-Service (CAAS) solution that allows firms of any size to quickly go from 0-60… fast. NonQM, Seconds, Whole Loans and/or regular way agency loans and MSRs are ALL supported. Ingest multi-seller tapes, price different product types, access agency pricing + LLPAs and price them quickly and automatically! Manage AOT, manage investors, optimize for pools, and analyze commitments all within the same system. We’ll help you integrate with your LOS for point and click onboarding, and with integrated transfer and exceptions remediation tools operations have never been easier or more reliable. From pricing, valuations, transactions, transfer, QC, to boarding, Blue Water makes it easy to scale up your origination business. Connect with our expert Sales Team.

First American: Fitch Weighs In

As reported last week in this Commentary and continuing yesterday, on Dec. 22, FAF announced via an 8K SEC filing that on Dec. 20 it had experienced a cybersecurity incident and decided to isolate certain systems. The company is actively working to restore operations and has retained outside third parties and notified law enforcement and regulatory authorities.

Last week’s cyber incident is supposedly unrelated to the May 2019 cyber incident where FAF reached a $1 million settlement with the New York Department of Financial Services in late November 2023. Four years!? Title insurance companies routinely work with sensitive personal information including bank records, and therefore data protection is critical to their operational success. The same, of course, can be said for mortgage banks, credit unions, and banks.

Gerry Glombicki, CPA, CISSP, CCSP, CISA, ARM, and a Senior Director at Fitch Ratings, writes, “First American Financial Corporation’s (FAF) recently disclosed cybersecurity incident is unlikely to affect the company’s ratings in the near term due to the significant headroom in the ratings, according to Fitch Ratings. However, the ratings could be impacted the longer business operations remain constrained, if the investigation shows weak corporate governance or risk management, or material adverse information is disclosed.

“Fitch does not believe that the recent cyber incident will materially affect FAF’s capital position or financial performance because the company is the second largest U.S. residential title insurer and a leader in the commercial title market. However, future rating actions cannot be completely ruled out until the incident is resolved and all relevant information is disclosed.

“Fitch affirmed the ratings of FAF’s senior debt ratings at ‘BBB’ and the company’s title insurance operating subsidiaries Insurer Financial Strength (IFS) ratings at ‘A’, all with a Stable Rating Outlook, on Aug. 24, 2023.”

Fannie and Freddie’s Thoughts on 2024

Many will say that economic forecasting is like driving a car blindfolded and getting instruction from a person looking out the rear window. But that doesn’t stop people and companies from taking periodic stabs at it.

If you’re hoping that lower borrowing costs will boost activity, Fannie Mae’s right there with you. But home sales will only marginally rise higher. Mortgage rates will average 6.7 percent next year, close to levels seen this summer. The housing market will see some upside in the coming years, but persistent challenges will limit a bigger shift, according to Fannie Mae’s latest forecast. “Total home sales in 2024 will come in at about 4.8 million, largely flat compared to this year’s expected level, followed by a jump to 5.4 million in 2025.

“The drivers of slow sales are well known at this point: unaffordability, lock-in effects, and a lack of existing inventories freezing much of the housing market. While we believe these dynamics will slowly dissipate over time, they will remain obstacles in 2024. Still, existing home sales will undergo a slow recovery starting next year, after they hit a likely low point in October, at a seasonally adjusted annualized rate of 3.79 million. Meanwhile, sales of new homes have also continued benefiting from the housing shortage, as well as builders’ willingness to provide mortgage buydowns.

“This trend continues into our 2024 forecast, in which we expect new home sales to decline from current levels only slightly due to a modest economic contraction,” according to the report.

While the shift in monetary policy has spurred a sharp drop mortgage rates this quarter, Fannie Mae noted a limit to how far these rates will fall: it projects that the 30-year fixed rate will average 6.7 percent in 2024, before falling to 6.2 percent in 2025. That’s down from the current level of just below 7 percent, after they soared close to 8 percent earlier this year.”

Fannie’s somewhat friendly competitor also sent out its outlook. If you don’t want to take the time to click on the link: economic growth lower than 2023, unemployment higher (stop me if you’ve heard this before), mortgage rates are expected to be in the 6-7 percent range during the year, and Freddie thinks that home prices will rise more than 6 percent. For the tens of millions of Millennials who don’t own a home yet, for-sale inventory is expected to remain depressed, and Freddie sees a slight increase in dollar volume for purchase originations while refinancing is stagnant. Lastly, Freddie believes that the U.S. Federal Reserve will start cutting rates. All pretty safe bets.

According to the ICE First Look at November mortgage performance data report, mortgage delinquencies remained historically low in November, despite a seasonal rise. While default rates remain low overall, past-due FHA loans hit a 9-year high in November (excluding a surge at the start of the pandemic) and early-stage VA delinquencies reached their highest non-pandemic level since 2009; both segments bear close watching in the months ahead. Fewer serious delinquencies, combined with low foreclosure referral rates, contributed to Foreclosure starts and active foreclosures running 23 percent and 24 percent below 2019 levels, respectively. Prepayments fell again amid the usual seasonal pullback in home purchases, combined with the residual effects of elevated interest rates.

Capital Markets

As expected, this week began with a quiet start in the bond markets. There isn’t a whole lot to report, aside from the U.S. Treasury completing a solid $57 billion 2-year note sale in the early afternoon yesterday. Additionally, the FHFA Housing Price Index was up 0.3 percent month-over-month in October after increasing a revised 0.7 percent in September. The S&P Case-Shiller Home Price Index was up 4.9 percent year-over-year in October after increasing 3.9 percent in September.

Forecasts by “the smartest guys in the room” about a housing price collapse have proven to be entirely wrong. The S&P 10-city composite rose 5.7 percent, up from a 4.8 percent increase in the previous month, and as noted above the 20-city composite rose 4.9 percent. Sure, some over-inflated markets, like San Francisco, saw a small decline, but the strength in home prices came despite a sharp rise in mortgage interest rates in October. We all know that the average rate on the 30-year fixed loan crossed 8 percent before Halloween, the highest level in more than two decades. Rates, however, dropped steadily through November and more sharply in December, with the 30-year fixed rate now hovering around 6.7. That should help prices.

Much like yesterday, the domestic highlight of today’s calendar once again will be Treasury supply, headlined by $26 billion reopened 2-year FRNs and $58 billion 5-year notes. As for economic news, it consists of just Richmond Fed’s manufacturing and services indexes and Dallas Fed Texas services, both for December, and both due out later this morning. The MBA’s mortgage application survey won’t be published but will be back next Wednesday morning and will consist of two weeks’ worth of stats. We begin the day with Agency MBS prices a touch better/higher than Tuesday’s close and the 10-year yielding 3.86 after closing yesterday at 3.89 percent.

Employment for AEs

Logan Finance Bucks Mortgage Industry Trends with Strong Q4 Growth! As the year-end fast approaches, Logan Finance finds itself in a thriving environment sparking growth that has more than doubled over the last two years. “There’s a great need for Non-QM lending and we are positioned well to handle the influx of new business,” says Aaron Samples, Logan’s Chief Revenue Officer. TPO partners, if you missed the year-end pricing special announcement, see our LinkedIn profile at Logan Finance Corporation. Mortgage broker clients can get rate discounts of up to .375 on select loan products through the end of December, so bring your deals to Logan! Logan’s growth is also fueling several new hires including Wholesale and Correspondent industry veterans Nick Pabarcus and Dave Weatherford, who will focus on recruiting and growing our network. And speaking of hiring, Logan Finance is looking for Non-QM superstar AEs, so contact Aaron Samples for hiring information. Learn more about Logan’s growth at Loganwholesale.com and Logancorrespondent.com.

“Spring EQ’s TPO division continues to experience rapid growth as demand for home equity solutions accelerates. To meet this demand, Spring EQ is excited to announce a new second lien program designed for Correspondent partners. Eligible delegated and non-delegated sellers will now have the opportunity to take advantage of Spring EQ’s competitive suite of products, including fixed-rate second mortgages and adjustable-rate HELOCs. Explore Spring EQ job postings and come join our growing team of fun and experienced mortgage professionals! At Spring EQ our primary focus is second mortgages. So, think of us first for all your seconds. Want to become a Spring EQ Correspondent partner? Click here to get started.”

Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

December 26, 2023 by Brett Tams

Historically, Virginia has been home to some pretty influential individuals, from our nation’s first president, George Washington, to Star-Lord himself, Chris Pratt.

Wanna fall in line with this wide range of greatness? Check out some of the most affordable cities in Old Dominion.

Virginia state average rent prices

Virginia isn’t exactly the most affordable place to live in the Union.

Still, it’s better than most of California — so that’s something. The average rent price for a one-bedroom apartment in Virginia is $1,791. This is a slight decrease of 0.2 percent. Hey, every little bit helps, right?

The cheapest cities in Virginia for renters

Virginia’s a surprisingly large state, so there’s a ton of variation all around, from landscape to seasons and rent prices. With a population of just over 8.5 million, however, it sometimes feels like there are not enough living quarters to go around.

As a result — ye olde supply and demand comes into play and you see this in rent prices. Still, there are some affordable spots if you know where to look. Here are the 10 cheapest places to live in Virginia:

10. Richmond

Average 1-BR rent price: $1,277
Average rent change in the past year: 10.22 percent

The capital city kicks off our list of the top 10 cheapest places to live in Virginia, despite an uptick of 10.22 percent in the last year. Located in the east-central portion of the state, Richmond is ideal for people looking to pursue higher education because it’s home to four well-regarded colleges and universities.

Richmond’s reputation for opportunity and diversity draw Millennials in droves, as it’s the second-ranked city that Millennials are flocking to. It’s also a favorite spot for outdoor enthusiasts, as it’s a top 10 location for runners.

Situated on both sides of the James River, Richmond residents enjoy proximity to this treasure, not to mention a less than two-hour drive to the East coast beaches. Plus, there’s a ton of historic significance to the area, so there’s plenty to see and learn and do.

Find apartments for rent in Richmond
Buy a house in Richmond

9. North Chesterfield

Photo source: Chesterfield County VA Government / Facebook

Average 1-BR rent price: $1,193
Average rent change in the past year: 2.51 percent

Just south of Richmond, the suburban city of North Chesterfield hasn’t seen as much of a price increase over the last year. Still, a one-bedroom apartment runs an average of $1,193 per month — 2.51 percent higher than last year.

North Chesterfield has a lot going for its 350,000-plus residents. Chesterfield County boasts the lowest crime rate in the Greater Richmond Area and is known as the 17th Best Place to Live in America.

One of the most popular outings in North Chesterfield is Pocahontas State Park, a nearly 8,000-acre park, which includes three lakes, an aquatic center and an event amphitheater (among other features).

Find apartments for rent in North Chesterfield

8. Daleville

Photo source: Daleville Town Center / Facebook

Average 1-BR rent price: $1,163
Average rent change in the past year: -7.48 percent

In the mountainous region of western Virginia lies the quiet community of Daleville. With just under 3,000 residents, Daleville is obviously one of the smallest cities on our list of the cheapest places to live in Virginia.

Inventory is pretty low in such a small town, so that’s why it’s not exactly super cheap to live here. Still, rent is down 7.48 percent from last year, for an average of $1,163 for a one-bedroom!

Daleville is north of the larger city of Roanoke, in the Blue Ridge Mountains. A relatively new addition to the city is Daleville Town Center, a live/work/play community that’s pedestrian-friendly.

Daleville’s proximity to all things nature makes it extremely compelling to potential new residents. Indeed, it’s a stone’s throw from some of the state’s best outdoor activities, including hiking, fishing, cycling and water sports.

Find apartments for rent in Daleville

7. Portsmouth

Average 1-BR rent price: $1,134
Average rent change in the past year: 14.3 percent

Portsmouth has everything a person could expect in a coastal community, and then some. Located right on the banks of the Elizabeth River and a short jaunt from the ocean, it’s only appropriate that the historic Norfolk Naval Shipyard is found in Portsmouth. It’s also a five-minute ferry ride away from Norfolk and all the fun it entails.

Although the average one-bedroom apartment has increased 14.3 percent over the last year, a Portsmouth unit runs about $1,134 — considerably less than many others in Virginia. This is something of a steal, considering everything Portsmouth offers.

Locals love to stroll the Olde Town Historic District to see and understand how far the city has come together. Rich in American history, Portsmouth is nonetheless very modern. Along the waterway is High Street, a fabulous and gorgeous place to enjoy food, drinks and shopping.

Of course, this creative community comes with public art installations and galleries to inspire people of all persuasions.

Find apartments for rent in Portsmouth
Buy a house in Portsmouth

6. Newport News

Average 1-BR rent price: $946
Average rent change in the past year: 2.26 percent

Great (Newport) news! This city is the first on our list that checks in at under a grand per month for a one-bedroom. Rent is up 2.26 percent from one year ago — bringing the monthly total to an average of $946. So, maybe get in while the getting’s good?!

Founded after the colonial settlement of Jamestown, the coastal city is close to Williamsburg and Virginia Beach. Newport News is right on the banks of Hampton Roads Harbor in southeast Virginia and is fully steeped in history — come see all of the monuments and tours for yourself.

Although much of Virginia is pet-friendly, Newport News is especially so. The city has seven pet-friendly parks, as well as a bunch of pet-friendly restaurants and hotels. You can even take them on the grounds of some local attractions, such as Endview Plantation!

Find apartments for rent in Newport News
Buy a house in Newport News

5. Chesapeake

Average 1-BR rent price: $861
Average rent change in the past year: -37.31 percent

Rent in Chesapeake, Virginia has experienced the biggest dip of any city on our list by far — dropping more than 37 percent since last year. Currently, the average one-bedroom rent rate is $861 per month.

Yet another coastal Virginia gem, Chesapeake has been a happy home to Americans since the very beginning. Every year, residents and visitors flock to see actors recreate the epic Battle of Great Bridge, a major turning point in the Revolutionary War.

The Chesapeake African American Heritage Trail and the Virginia Civil War Trails offer even more in-depth looks at the area’s cultural and historic significance.

There’s also a ton of waterway fun to explore. People love to “Paddle the Peake,” and recreational boaters particularly enjoy the beauty of the Intracoastal Waterway. Don’t forget to keep an eye out for the more than 200 species of birds that call the area home!

Find apartments for rent in Chesapeake
Buy a house in Chesapeake

4. Lynchburg

Average 1-BR rent price: $848
Average rent change in the past year: 4.17 percent

Just east of the Blue Ridge Mountains is Lynchburg, a picturesque city/town with units that fall well under the thousand-dollar-per-month threshold. At $848 per month for a one-bedroom rental, Lynchburg is nonetheless creeping up slightly in price (an increase of 4.17 percent over the last year).

About 50 square miles, Lynchburg is found smack in Virginia’s geographic center. Locals love all of the outdoorsy opportunities this location affords, including hikes on the Appalachian Trail and in the Blue Ridge Mountains, skiing at Wintergreen Resort and water fun on Smith Mountain Lake. Plus, it’s only 180 miles from Washington, D.C., so it’s easy to access one of the country’s major metropolitan areas for the weekend.

If socializing is key, there’s no limit to Lynchburg’s offerings. From regular Art in the Park events to Movies on the Lawn, the city puts out an event schedule other towns try to rival. Don’t forget to stop by any of the area farmers markets for fresh produce!

Find apartments for rent in Lynchburg

3. Petersburg

Average 1-BR rent price: $827
Average rent change in the past year: -4.81 percent

Edging closer to the top of our list of the cheapest cities in Virginia is Petersburg. Just about 20 miles south of the capital city of Richmond, Petersburg is close enough to everything convenient, without being too busy. Rent fell 4.81 percent here over the last year — bringing the average one-bedroom rental to only $827 per month!

Like many parts of Virginia, Petersburg figured prominently in the Civil War. A visit to the 2,700 acre Petersburg National Battlefield is a great way to see where the country has been and where we never want to go again.

Seriousness aside, there’s plenty of tongue-in-cheek fun in Petersburg. Take a ghost walk through the city’s historic downtown or head over to Sycamore Street in Uptown for authentic Mexican food, shopping and music.

Find apartments for rent in Petersburg
Buy a house in Petersburg

2. Vinton

Photo source: Town of Vinton / Facebook

Average 1-BR rent price: $788
Average rent change in the past year: 0.00 percent

Everything’s staying even-steven in Vinton, which holds the same rent price of $788 per one-bedroom unit as one year ago. Just east of Roanoke in southern central Virginia, Vinton is one of the smaller cities on our list, with just over 8,000 residents.

The town is a quaint community with plenty of access to city amenities. Outdoorsy types particularly love Vinton’s access to parts of the Roanoke Valley Greenway Network, not to mention the Roanoke River Blueway.

The adorable downtown area makes even the newest residents feel at home right away. Local restaurants, shops and entertainment are easy to support, since everyone feels like friends! The super-low crime rate is another major perk of life in Vinton.

Find apartments for rent in Vinton

1. Roanoke

Average 1-BR rent price: $593
Average rent change in the past year: -29.16 percent

Great news for future Roanoke residents — not only is it the cheapest city in Virginia, but rent is also dropping! Down more than 29 percent from this time last year, it costs under $600 for a one-bedroom in the Star City of the South.

Roanoke might be cheaper than some surrounding areas because there’s more inventory. Home to almost 100,000 residents, Roanoke is a pleasantly sized metropolis situated between Atlanta and New York City, just next to the picturesque Blue Ridge Parkway.

This mountain town is decidedly outdoorsy but is also a hub of all things arts and culture-related.

Roanoke citizens also love their food and drink, with any number of eateries and breweries to choose from on a night out on the town. Life is easy (and cheap!) in this picturesque Virginia city.

Find apartments for rent in Roanoke

The 25 cheapest places to live in Virginia

Ever wanted to live in Williamsburg or Manassas? These are just two of the cities in Virginia that round out the 25 cheapest places to live list. Check out the full 25 here.

Methodology

Rent prices are based on a rolling weighted average from Apartment Guide and Rent.’s multifamily rental property inventory as of May 2021. Our team uses a weighted average formula that more accurately represents price availability for each unit type and reduces the influence of seasonality on rent prices in specific markets.

We excluded cities with insufficient inventory from this report.

The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.

Source: rent.com

Apache is functioning normally

December 25, 2023 by Brett Tams

Entering the real estate finance world in the summer of 2022 as a 23-year-old, I immediately felt like a fish out of water. Attending industry-related conferences and visiting clients, I was typically the only person in the room under the age of 30.

Our industry is full of professionals with decades of experience, but with that much experience often comes difficulty with connecting and understanding the next-generation consumer. My goal with my career in mortgage is to help bridge the generational gap between mortgage professionals and next-generation borrowers. With that in mind, let’s take a look at some key characteristics that set my generation (Gen Z) apart from previous generations.

For Gen Z, technology is second nature

Gen Z is considered those who were born between 1997 and 2012 — today, members of Gen Z are between 11 and 26 years old. We are the cohort succeeding millennials and have grown up with rapid technology progression, an increase in multi-generational households and the “influencer” era.

I was seven years old when my parents first bought the iconic Motorola RZR flip phone, and 12 when my parents gave me my first iPhone. The eldest Gen Zs quickly adapted to Apple’s iPhone technology and the youngest Gen Zs usually were “screen kids” throughout their childhood on tablets or their parents’ smartphones. Relying on and mastering technology has been second nature for myself and my peers. It is hard for me to remember a time without the desire for high speed wifi or cellular data.

So, what does this mean for the world of real estate finance? It means that loan originators need to realize the importance of having a digital brand. In the current work-from-home lifestyle, the lack of in-person connection will create a reliance on connecting through digital platforms and communication methods that next-generation borrowers are very familiar with.

Gen Z’s savings present an opportunity for investment

Speaking of the normalcy of a work-from-home lifestyle, COVID reached its peak when the eldest part of Gen Z was either entering the workforce or attending college. Going through this transitionary stage of life during a time of panic and crisis forced a lot of us to move back home in 2020 to be with family. Three years later, a majority of my friends are still living rent-free at home in our childhood bedrooms because it saved money and was easy. This is a unique characteristic that has given my age group the opportunity to live rent-free and save a lot of money early on in our twenties.

What does this mean for the real estate finance world? This trend of living in a multi-generational household means older Gen Z (ages 20-26) most likely have a lump sum of money saved up just sitting in a bank account. As an industry, we have the duty of educating my age group on the financial implication of investing in real estate and what it means for our financial future.

One last characteristic I want to highlight within my generation is the lack of trust in big corporations. It is crucial for our industry to understand the hesitancy my generation has with trusting large institutions without a lot of research and referrals leading them to that organization. Where previous generations relied heavily on large corporations to build rapport and familiarity, Gen Z relies on public figures or relatable individuals in their network when it comes to choosing a company to work with.

For example, in the past, people may have chosen to work with State Farm as an insurance provider because of its market share or brand recognition. Gen Z does not care about brand recognition — they will choose a State Farm competitor if their favorite influencer or social media account has given a referral or posted about a positive experience with that service provider.

All in all, Gen Z’s entry into the home buying market brings forth new borrower characteristics to the market. If we put forth the effort to understand and reach these future borrowers and lead with authenticity and financial education, I truly believe we can get my generation into the home buying game earlier in life than previous generations.

Ally Carty is a “Gen Z Guru” and national account executive for ActiveComply.

Apache is functioning normally

December 22, 2023 by Brett Tams

Kelsey Hermanson in a “The Little Mermaid”-themed bathroom at her Seattle-area home. Each room in her 3,300-square-foot house has its own Disney-inspired theme. The company celebrates its 100th anniversary on Monday.Credit…Meron Tekie Menghistab for The New York Times

Skip to contentSkip to site index

It’s Not Enough to Love Disney. They Want to Live Disney.

For some, a dream is a wish your heart makes at home.

Oct. 13, 2023

The Mickey Mouse-shaped topiaries in front of Kelsey Hermanson’s house are the first hint at what visitors will find inside.

“You know how when you’re walking through a Disney park, and you have the option to go to Tomorrowland or to Fantasyland, and you have these different worlds that you get to sort of walk through and be in?” said Ms. Hermanson, 37. “That’s kind of how our house is.”

That is to say, each room in Ms. Hermanson’s 3,300-square-foot Seattle home has its own Disney-inspired theme.

The stairwell, for instance, pays tribute to “Peter Pan” with star-shaped pendant lighting fixtures, vintage décor on the windowsill that recalls Captain Hook’s galleon and wall decals of Wendy, her siblings and Peter scaling the wall.

warm hospitality — and so on and so forth. “Our house is not subtle by any stretch of the word,” said Ms. Hermanson, a stay-at-home mom and content creator, of the home she shares with her husband, Eric, and two children. “But I think the styling is a little bit more elegant.” That is to say, the Disney characters aren’t always so obvious in her rooms and she doesn’t plaster her home in merchandise.

The desire to take home a piece of the Walt Disney Company, which marks its 100th anniversary on Oct. 16, goes back to the company’s earliest days. Walt Disney himself began selling Disney merchandise in the late 1920s and Disney memorabilia, like an original Space Mountain vehicle which sold at auction for $40,000, can garner high bids.

partnerships with Ruggable and the wallpaper manufacturer Sanderson. For some grown-up Disney evangelists (also known as “Disney adults”), it’s not enough to pepper in a few Donald and Mickey tchotchkes — they want the whole house swathed in Disney décor.

Part of Disney décor’s prevalence is its success on social media. On TikTok, for example, the hashtag “Disney home décor” has more than 42 million views and “Disney home” has over 275 million. Ms. Hermanson grew her Instagram following of more than 150,000 by sharing photos and videos of her rooms and her D.I.Y. projects.

Though Ms. Hermanson does earn some income from occasional sponsored posts (not for Disney) and affiliate links, she maintains that her designs are for her enjoyment first. “If social media went away tomorrow, I’d still be happy and be like, ‘Well, I’m so glad I was able to bring my little idea to so many people,’” Ms. Hermanson said. “I’ll probably be 80 years old and still decorating.”

Ginny Phillips, a blogger in Nashville, takes cues from Disney’s parks with a dopamine décor twist. “It’s just that super happy, bright, rainbow explosion,” said Ms. Phillips, 39. “I really think that it does boost my mood.” She shares her house with her husband and three children (all of whom, she said, are happily onboard with the Disney-inspired décor).

step-by-step tutorial, and people are still, almost four years later, recreating that,” she said. A gallery wall of Disney artwork sits opposite the hallway.

In her office, Ms. Phillips painted a rainbow version of the Spaceship Earth design, and incorporated retro accents like a burnt orange sofa set against a backdrop of rainbow-hued wooden planks and a monorail print. “The parks are just so, so important to me, and there’s so much nostalgia there because I visited as a kid,” Ms. Phillips said. “But then also my kids have grown up there.”

Understanding build-to-rent homes

What characterizes build-to-rent homes?

The origins of the trend

The evolution of build-to-rent

Current status and popularity

Impact on landlords

Impact on tenants

Looking ahead at the future of single-family homes

Student Loan Debt Statistics

Impact of Student Loan Debt on Life Plans

Homebuying

Pursuing Graduate School

Employment and Career Choices

Marriage and Divorce

Starting a Family

Saving for Retirement

How to Manage Your Student Loans

Keep Paying

Make a Budget

Repayment Plans

Deferment and Forbearance

Forgiveness

Refinancing

The Takeaway

Related

2024 Interior Design Trend: Kitschy Kitchens

2024 Interior Design Trend: Plenty of Patterns

2024 Interior Design Trend: Master Metals

2024 Interior Design Trend: Saturated Spaces

2024 Interior Design Trend: Updated Luxe Materials

Why trust Harper’s Bazaar?

Broker, Fulfillment, Servicing Software Products; Housing for the Aging Population

Option 1: Copy and send this link

CAAS, TPO, Tech, LOS Products; Fitch on First American’s Hack; Freddie and Fannie Forecasts

Option 1: Copy and send this link

Virginia state average rent prices

The cheapest cities in Virginia for renters

10. Richmond

9. North Chesterfield

Photo source: Chesterfield County VA Government / Facebook

8. Daleville

Photo source: Daleville Town Center / Facebook

7. Portsmouth

6. Newport News

5. Chesapeake

4. Lynchburg

3. Petersburg

2. Vinton

Photo source: Town of Vinton / Facebook

1. Roanoke

The 25 cheapest places to live in Virginia

Methodology

For Gen Z, technology is second nature

Gen Z’s savings present an opportunity for investment

Related