With the Federal Reserve meeting on Wednesday to discuss the federal funds rate, all eyes have been on May’s Consumer Price Index inflation data. After recording a 4.9% annual increase in April, the CPI rose just 4.0% year over year in May, before seasonal adjustment, according to data released Tuesday by the Bureau of Labor Statistics (BLS).
This is the smallest 12-month increase since the year ending March 2021 and the 11th consecutive month of inflation declines.
The Fed has repeatedly stated that 2.0% is its target for the yearly inflation rate, though it’s unclear if the monetary policymakers will pursue the policy given the likelihood of a recession with further rate hikes.
Indexes that contributed to the annual increase in May were food (+6.7%), motor vehicle insurance (+17.1%), recreation (+4.5%), household furnishings and operations (+4.2%), and new vehicles (+4.7%).
Shelter, which is the largest category, also posted a sizable increase, rising 8.0% year over year (down from 8.1% in April) and accounting, yet again, for 60% of the total increase in the all items less food and energy index which was up 5.3% compared to May 2022.
But that shelter inflation figure is misleading. The BLS’s CPI metric lags asking rents because the CPI measures in-place rent, and because most renters see a change only once per year, the index lags significantly from asking rents on new leases. Peak rent inflation was between May 2022 and February 2023, but has declined in subsequent months and is expected to continue to do so.
“Inflation calmed down in May, and further deceleration looks likely in the upcoming months,” said Lawrence Yun, chief economist of the National Association of Realtors. “It also marks the first month in two years that wage growth outpaced consumer price inflation, improving the average standard of living. Moreover, low inflation means that the Federal Reserve should stop raising interest rates and possibly slash rates towards the year-end or early next year. The yield on the 10-year Treasury is responding positively with a rate decline to 3.7%. That normally means the 30-year mortgage rate is around 5.5% to 5.7%.”
Also aiding in lower inflation figures in May was falling energy costs. For the third consecutive month, the energy index recorded a significant decrease, falling 11.7% compared to a year prior, with the gasoline index dropping 19.7% year over year.
“This is the most closely-watched inflation report in more than a year as the Federal Reserve gets set to meet later this week to decide whether sufficient improvement has been made on inflation to allow them to pause rate hikes,” Lisa Sturtevant, the chief economist at Bright MLS, said in a statement. “For months, home prices and rents have been declining, which would eventually lead to lower overall inflation. However, the housing market continues to show signs of resiliency and prices may have bottomed out across much of the country.”
Compared to April, the CPI recorded a smaller monthly increase, rising 0.1% in May, compared to 0.4% a month prior. Shelter, of course was a major contributor to the monthly increase, rising 0.6% month over month, as the indexes for rent and owner’s equivalent rent both rose 0.5% from April. Other components that contributed to the increase were food, which rose 0.2% month over month after remaining unchanged for two months, and used cars and trucks, which rose 3.2% compared to a month prior. The energy index, meanwhile, fell 3.6% from April, as all major energy component indexes fell.
Despite inflation remaining above the Fed’s target, industry experts believe the Fed will most likely make the decision to pause rate hikes at Wednesday’s meeting.
“We think the Federal Open Market Committee is likely to maintain its 2% target,” a Goldman Sachs’ economic research report read. “That said, if core PCE inflation falls to 2.5% this cycle, we doubt that the FOMC would have much appetite for any further hawkish policy moves that might risk causing a recession just to get the rest of the way to 2%.”
However, economists warn that a rebound in the housing market could complicate things for the Fed.
“The May inflation data and the data on home prices and rents could lead them to deliberate a June rate hike,” Sturtevant said.
A den is an additional room in an apartment that you can use as a multi-purpose space.
Apartments have different floor plans, rent prices and amenities. Depending on what you are looking for, you can pretty much find it when apartment hunting these days. Want a pool or an on-site gym? That’s an option!
One perk that is rising in popularity is the den. Everyone wants more space and dens are a unique way to get it. So, what is a den exactly and how might you use it? We will walk you through the 10 benefits of an apartment with this room and why you might want to rent one.
What is a den?
A den is defined as an extra room, usually without windows or closets. Dens can be found in both one and two-bedroom apartments. They are not considered additional bedrooms as they don’t have that designated closet space that a true bedroom features.
Does a room without windows sound dreary to you? Well, before you confuse a den with a dungeon, let us show you all the ways that an apartment with a den could be used. Essentially, a den is a bonus room where you can do anything you want.
10 benefits of renting an apartment with a den
What would you do with an extra room in your apartment? A den can be just that; it’s an extra room, albeit smaller than a bedroom, to do whatever you want! Here are some of Rent.’s suggestions on what to do with an apartment dent.
1. Built-in home theater
To be considered a den, the room cannot have any windows. This makes dens a cozy, dark space perfect for binging your favorite TV show or streaming the most recent Hollywood hit. With endless streaming platforms at your disposal these days, having a built-in theater room is an awesome perk of apartment living. If you’re a movie lover or Netflix and chill kind of person, an apartment with a den is a must-have. You can invite all your friends over for movies in your dedicated home theater.
2. Optional work-out room
Do you like to work out but don’t have a gym membership or on-site gym? Get some free weights, a Pelaton and a yoga mat and you’ve got yourself a small, personal workout room in the den. It’ll also be cool as there won’t be hot sunlight streaming in from any windows, so you can turn up that music and crank out a quick burn session.
3. WFH spare office
In a world where remote work is more common, you may need a dedicated office space. While some people use their bedroom or living room as a makeshift option, a den is the perfect extra room to transform into a focused work zone. In the den, you have a specific space to go to work and then at the end of the day go back to your main living room without feeling like you never left home that day. You can WFH and live at home without feeling burnt out when you have a den.
4. Meditation or wellness room
We could all use more R&R in a stressful world. If you rent an apartment with a den, you can transform it into a Zen meditation or wellness room. Get a comfortable couch or yoga mat, light a nice candle or essential oils and settle into some dedicated meditation time in your new den wellness room.
5. Private “man den,” “she cave,” or “theysment” space
Bears hibernate in dens, and honestly, that can sound kind of nice. So, why don’t you turn your den into a private space? Do you like to paint? Make your cave a painting studio. Do you like to play poker or chess around some drinks? No matter how you use it, a den is the perfect extra room to make it anything you want it to be.
6. Secondary living space
Are you simply feeling crowded in your apartment and needing more space? Then a den is a great option for additional living space. You can have your bedrooms, kitchen and dining areas and living room plus a den. Extra space in an apartment is always a pro. But, keep in mind you’ll likely pay more in rent for the extra square footage.
7. Peaceful reading room
Escape to a fictitious land by reading or listening to a book. When you turn your den into a peaceful reading room and library, you can go anywhere you want when you escape through the pages of your book. This dedicated reading space can be charming and like your own small bookstore. Get some cozy couches and plush pillows and your den is now your escape.
8. Game room
Do you enjoy game nights with friends? Well, turn your den into the go-to game room. Depending on the size, you could add a pool table or ping pong table here. Or, get a cool table and lots of board games for any sort of competitive gaming setup. Dens are ideal for game rooms.
9. Additional guest room
While it’s not technically a bedroom, a den can double as a spare bedroom for short stays. Get a futon so your guest can have a couch and bed to stay in. This additional room will enable you to host guests without giving up your precious bedroom space or main living room area.
10. More storage space
You probably have too much stuff, as we all do, so extra storage space is never a bad thing. Because apartments are smaller and often have fewer storage options, a den can double as a storage unit. Free up those closets and put your seasonal clothes in the den. Or, fill it with holiday decorations or food storage. Really, you can use it however you like because it’s extra space.
How to find apartments with dens
Does an apartment with a den sound appealing to you? Then it’s time to start the apartment hunt! You can search for apartments in your desired area, within your price range and with the desired amenities — like a den!
Two straight weeks of mortgage rate declines helped spur consumer demand, according to the latest figures from the Mortgage Bankers Association.
For the week that ended June 9, mortgage applications climbed 7.2% from the prior week. It can partly be explained by the 30-year fixed rate decreasing to 6.77% during roughly the same period.
“Mortgage applications were up over the week, but remained well below levels from a year ago,” said Joel Kan, MBA’s vice president and deputy chief economist. “Rates that are still more than a percentage point higher than a year ago, and low for-sale inventory continue to constrain homebuying activity in many markets.”
After 10 steady rate increases by the Federal Reserve, the FOMC is expected to pause hikes at its meeting today. The annual CPI decelerated to 4% in May, the slowest it has been since March 2021.
The MBA data showed that the average 30-year fixed rate for conforming loans ($726,200 or less) decreased to 6.77% last week from 6.81% the previous week. For jumbo loan balances (greater than $726,200), the rate jumped to 6.79% from 6.74% in the same period, according to the MBA.
However, at Mortgage News Daily, mortgage rates were higher on Wednesday morning, at 6.98%.
Refinancing applications increased 6% last week compared to the previous week and were 41% lower than the same week one year ago. However, the refinance share of mortgage activity remained unchanged at 27.3% of total applications. Meanwhile, the purchase index increased by 17% from one week earlier and was 27% lower than last year’s level on an unadjusted seasonal basis.
“Refinance applications accounted for less than a third of all applications and remained more than 40% behind last year’s pace,” added Kan. “Elevated rates have reduced the benefit of a rate/term refinance for many borrowers and continue to discourage cash-out refinances as borrowers are unwilling to give up their lower rates.”
Regarding loan types, the adjustable-rate mortgage (ARM) share of mortgage apps decreased to 6.5% of total applications, the MBA data shows.
The Federal Housing Administration loans’ share decreased to 13.0% from 13.2% the week prior. The U.S. Department of Veteran Affairs loans’ share increased to 12.6% from 12.5% the week prior. And the U.S. Department of Agriculture loans’ share increased one basis point to 0.5% of the total applications.
Policymakers also want to evaluate the impact of their actions on the economy so far. The Fed imposed its fastest series of rate increases since the 1980s, but it wants to avoid over-tightening and causing a significant recession.
May’s inflation data aided the Fed in making today’s decision. The Consumer Price Index in May rose just 4% year over year, before seasonal adjustment, compared to a 4.9% increase in April. Real wages also continue to fall, suggesting that the Fed has cooled, if not broken, the labor market.
“Holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy,” the Fed said in its post-meeting statement. “In determining the extent of additional policy firming that may be appropriate to return inflation to 2% over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.”
But it’s a delicate balance.
A series of bank failures — including Silicon Valley Bank, Signature Bank and First Republic Bank — have spurred concerns that banks are reducing their appetite for new loans, hurtling the economy towards a recession. Fears of a commercial real estate collapse have also emerged.
Fed Chairman Jerome Powell told reporters on Wednesday that it makes sense to moderate rate hikes as the policymakers get closer to the destination. The benefits of that, according to Powell, is that the Fed officials can access more information to make better decisions.
“The main issue that we’re focused on now is determining the extent of additional policy firming that may be appropriate to return inflation to 2% over time,” Powell said. “So, the pace of the increases and the ultimate level of increases are separate variables. Given how far we have come, it may make sense for rates to move higher, but at a more moderate pace.”
Regarding the banking crisis, Powell said that “we don’t know the full extent of the consequences of the banking turmoil that we’ve seen.” However, with today’s decision, the Fed will “have some more time to see that unfolding.”
What’s next?
Investors are waiting for indications of what will happen next, as the macroeconomic policy crafters have yet to break the labor market and inflation levels are still double the 2% target.
The CME FedWatch Tool showed a 98% chance the Fed would hold rates at the current range on Wednesday morning, according to interest rate traders. However, 60% of these investors bet officials will impose a rate hike at the July 26 meeting.
In favor of another rate hike is the fact that employment continues to rise and consumer spending has been resilient. According to the latest labor market report, total nonfarm payroll employment rose by 339,000 jobs in May, compared to April.
The FOMC published new projections for the U.S. economy that expect the GDP to change by 1% in 2023 compared to 0.4% estimated in its March meeting. The unemployment rate is expected to be at 4.1% (compared to 4.5% in March) and the PCE inflation is projected to be at 3.2% (compared to 3.3% in March).
Policymakers also expect the federal funds rate at 5.6% at the end of 2023, which opens the door to the possibility of two rate hikes at the end of this year. March’s projection was at 5.1%.
“Looking ahead, nearly all Committee participants view it as likely that some further rate increases will be appropriate this year to bring inflation down to 2%,” Powell said. “We have been seeing the effects of our policy tightening on demand in the most interest rate sensitive sectors of the economy, especially housing and investment. It will take time, however, for the full effects of monetary restraint to be realized, especially on inflation.”
Today’s Fed decision will have an impact on the housing market. Industry experts believe mortgage rates will remain high compared to last year.
Ahead of the Fed meeting, mortgage applications picked up last week as rates dropped slightly – another factor that impacted rates was the debt ceiling agreement.
On Wednesday afternoon, mortgage rates for 30-year fixed-rate mortgages were at 6.70%, according toHousingWire‘s Mortgage Rates Center. However, at Mortgage News Daily, mortgage rates were higher, at 6.98%.
“For real estate markets, today’s decision by the Fed will ensure that mortgage rates are likely to keep moving sideways for the next couple of months,” George Ratiu, chief economist at Keeping Current Matters, said in a statement. “The 30-year fixed mortgage rate has moved in the 6% – 7% range since mid-November 2022, cresting the upper limit several times over the past few weeks.”
The Fed’s pause means borrowers can see, for June, a stabilization of rates across a range of industries, particularly mortgage and credit cards, according to Michele Raneri, vice president and head of U.S. research and consulting at TransUnion.
Raneri said in the mortgage market, “It remains to be seen if, in the short term, this will spur many who have been holding off to finally engage in a new purchase or refinance, or if they will continue waiting until rates begin dropping.”
The economist Selma Hepp says home prices in some areas are rising because of limited inventory.
Areas that saw price declines during the pandemic are expected to make a comeback, she said.
Anaheim, California; Seattle; and Sacramento, California; topped the list of Metropolitan areas.
The US housing market started off on a solid footing this year as home prices rose.
But it’s not necessarily because buyers are back in droves. High mortgage rates have kept would-be sellers locked into their current properties, making inventory tight and raising demand for the little that’s on the market, Selma Hepp, the chief economist at CoreLogic, said.
In April, prices for single-family homes rose by 2% year-over-year and 1.2% from the previous month, according to CoreLogic’s Home Price Index. The increase is above the seasonal monthly average, which has historically been at 0.9%, Hepp added.
National home prices are expected to grow 4% this year. But not all markets will fall in line with the average. In fact, there is likely to be a bifurcation in price moves across the US.
The trend is set to follow a reversion back to the mean or a return from pandemic-era migration. In the early days of the lockdowns, some markets saw a rapid appreciation in home prices while others saw double-digit declines, Hepp said.
People moved from expensive West Coast markets and cities to more affordable areas. Now, she said that markets that saw values increase rapidly were leveling out to be more in line with the incomes in those areas.
“When you look long-term, home prices tend to revert back to the rate of growth of income,” Hepp said. “And whenever you have a situation where home-price gains exceed income gains, it’s likely to readjust at some point because if folks can’t afford homes in those markets, then there’s no sales activity. That means home prices decline.”
On the other end, markets that experienced steep price plunges are expected to make a comeback, especially areas that have low inventory, she said.
Below is a list of 51 metropolitan areas expected to see the most home-price increases in the next 12 months, from the highest to the lowest.
The data is taken from CoreLogic’s HPI, which measures the year-over-year changes in single-family-home values based on data from more than 400 US cities. The index changes are based on repeat sales of the same properties.
The metropolitan areas listed below have the highest probability of seeing price declines in the next 12 months.
“In these markets, when we look at how much prices exceed local incomes, it has been substantial. And that increases the vulnerability for price declines going forward,” Hepp said.
Finally, while mortgage rates can be difficult to predict, Hepp said that we had likely peaked for the year. CoreLogic expects that mortgage rates will gradually decline for the remainder of the year to about 5.8% if inflation rates continue to decline, she said.
Get ready to unlock a treasure trove of invaluable insights and expert advice that will revolutionize your vacation rental property. In this Redfin article, we dive deep into the world of vacation rentals, revealing powerful strategies to make your property shine and leave guests in awe. From savvy investments that boost your property’s allure to crafting an unforgettable resort-like experience, forging strategic partnerships, and crafting personalized guest interactions, we’ll equip you with the knowledge to exceed expectations and achieve unrivaled success in the fiercely competitive world of vacation rentals.
Whether you own a vacation rental property in the enchanting city of Orlando, FL, or the picturesque town of San Marcos, CA, this comprehensive resource is tailored to elevate your rental business to new heights. Here are 18 transformational secrets to maximize guest satisfaction, earn rave reviews, and propel your property to the one of the most sought after homes in the area.
1. Make your rental stand out
“To maintain a five-star rental property, you’ll want to go above and beyond tenant expectations. Our data shows that including a washer and dryer, upgrading to newer appliances, and providing freshly painted walls in neutral tones will not only make your rental stand out, but also make the process of finding great tenants faster,” recommends Doorstead. “Moreover, by ensuring access to a responsive property manager, you can guarantee that all aspects of the home are well taken care of, truly enhancing the tenant experience.”
2. Pretend your vacation rental is a five-star resort
“The most important thing to remember about managing a vacation rental is that this is the hospitality business, not the landlord and tenant business,” shares Todd Ortscheid, Co-Owner of Revolution Rental Management. “You have to think of what you’re offering more like a hotel or resort than a traditional rental property. This means cleanliness, fast response time, desirable amenities, and a well-maintained property. The more you think of your property as a five-star resort, the better off you’ll be.”
3. Consider creating strategic partnerships
“We recommend partnering with a company that specializes in exclusive vacation rental portfolios. If your property is a top-tier, five-star rental, it’s essential to align it with a company whose branding and services cater to the discerning needs of luxury clientele,” recommends Gary Doss, Co-Owner of SoCal Vacations. “Larger companies that offer a broad range of properties may not be able to meet the high expectations and unique demands of this premium market segment.”
4. Personalize communication
“To ensure a successful guest experience, effective communication plays a pivotal role. It is crucial to make your guests feel genuinely welcomed, leaving a lasting impression. One way to achieve this is by remembering their return and incorporating delightful surprises. Consider offering their favorite snacks accompanied by a bottle of wine, arranging fresh flowers, and providing a personalized welcome message upon their arrival,” recommends Ellie Paget, CEO of HomeSlice Stays.
“Prompt responsiveness is of utmost importance when it comes to addressing guest requests or concerns. Aim to respond to them in a timely manner, never exceeding a 15-minute timeframe. This level of attentiveness demonstrates your commitment to their satisfaction and enhances their overall experience.
By prioritizing personalized communication, you can create an exceptional guest experience that fosters satisfaction and builds positive relationships.”
5. Decorate with style
“When it comes to guest experience and satisfaction, décor has the potential to make a significant difference in how guests perceive your rental property. To ensure an exceptional experience, it is crucial to infuse your property with chic and stylish decor, incorporating appealing color schemes and well-curated furnishings,” recommends Ellie Paget.
“To achieve a truly unique and captivating aesthetic, consider leveraging the expertise of our dedicated team. They can assist you in designing your home, helping you create an environment that not only catches the attention of potential guests through eye-catching marketing images but also provides a one-of-a-kind experience during their stay.
By investing in stylish decor and enlisting professional guidance, you can elevate your rental property’s overall appeal, command top dollar, and leave a lasting impression on your guests.”
6. Make sure you have security and safety measures
“To prioritize the safety and security of your guests, it is important to emphasize on security and safety measures. Install reliable locks, smoke detectors, and fire extinguishers. Provide clear instructions on emergency procedures and ensure your guests feel secure throughout their stay. A focus on safety gives guests peace of mind and contributes to their overall satisfaction,” recommends Damir Dumo from Chalet.
“Smart locks with rotating access keys for each guest are must-haves nowadays. We use a smart home automation system that can be remotely managed for all of our homes.”
7. Leverage guest’s reviews
“Pay attention to guest feedback and reviews,” says Damir Dumo. “Actively seek feedback from your guests and use it to improve your property and services. Address any concerns promptly and implement suggestions that align with your goals. By consistently evolving based on guest feedback, you’ll maintain a high level of guest satisfaction and enhance your reputation as a top-notch rental property.
Ask for a five-star review on the day the guest checks out. If it wasn’t a five-star experience, ask the guest to give feedback directly to you.”
8. Discover your secret formula to winning a rave review
“We’ve found that rave reviews are the secret to creating successful, five-star rental properties,” says ALL IN. “This begins with maintaining excellent communication with our owners, guests, and community management teams. Maintaining a meticulous standard of cleaning, offering modern amenities, and assuring attention to every detail are non-negotiables that must always be upheld as a standard.
We invite the input of our guests and respond promptly to their questions, needs, and feedback. Creating memorable experiences keeps them wanting to share their experience with others.”
9. Elevate your guest’s stay with tailored upsells
“When catering to today’s travelers, it’s important to go beyond providing accommodation and focus on creating memorable experiences. Enhance your guests’ stay by offering exciting upsells and activities that align with your property’s location,” says Kennedy Williams from Mount.
“For instance, if you’re near a beach, consider providing e-bikes, or if you’re situated by a lake, offer kayaks. By incorporating these quality add-ons and upsells, you eliminate the guesswork and reduce trip planning stress for your guests, ensuring your property is a memorable stay for all the right reasons.”
10. Elevate your guest experience through realistic promises and delightful surprises
“The top-performing property managers consistently prioritize the basics of a well-maintained property, comfortable beds, and clean linens to create a memorable guest experience. They also excel in attentive guest communication, providing timely and personalized responses that make guests feel valued and supported,” mentions Hostaway.
“They’re also careful in setting realistic expectations by promoting property highlights without overpromising, along with adding delightful touches like unique decor, outdoor games, or welcome gifts, further enhancing the guest experience.”
11. Thoughtfully prepare your guest’s needs before they arrive
“Take the time to think about your guest experience from their perspective,” recommends Floorspace. “By anticipating their requests, you can provide the amenities, information, and special touches that will make their stay seamless and memorable, while also reducing the amount of communication required.
It’s also helpful to keep in mind the benefits of providing a positive guest experience, which can’t really be overstated. Not only will you garner more five-star reviews, but you’ll also increase your chances of repeat and direct bookings.”
12. Set a competitive pricing strategy
“One thing that often gets overlooked is pricing strategy. You can have high occupancy throughout the year, but if your pricing is not competitive, you will not reach your highest earning potential,” recommends Humberto Pacheco, CEO of Naya Homes. “You will need to research similar listings in your area and take into account factors such as location, size, amenities, and seasonal demand.”
13. Automate communication
“Automating communication in a natural tone through templates or automated messages streamlines your interactions with guests while maintaining a personalized touch,” suggests Alex Withorn from Thorn Point Vacation Rentals. “This approach allows you to experiment with different messaging strategies, refine your communication based on guest responses, and deliver consistently excellent customer service without guests realizing it’s not manual correspondence.
Investing effort in repeat business can significantly contribute to ensuring another great review. By fostering strong relationships with guests and providing exceptional experiences, you increase the likelihood of them returning, resulting in positive reviews from satisfied repeat guests.”
14. Harness the power of preemptive reviews
“When you give guests a five-star review, specifically letting them know before they leave their own review can encourage reciprocity and forgiveness. By expressing gratitude and acknowledging their positive experience, you create a positive feedback loop that encourages guests to leave similarly favorable reviews,” says Alex Withorn from Thorn Point Vacation Rentals
“Being upfront about expectations and educating guests about the review process is crucial for ensuring positive reviews. Transparent communication sets the stage for mutual understanding and helps guests provide feedback that aligns with their expectations, leading to more favorable reviews.”
15. Ensure your guests have a streamlined experience checking in and checking out
“Being in the cleaning industry for so long, I found that attention to detail, open communication, consistency, and streamlined processes leads to a five-star rental experience,” says Celestial Cleaning Service. “Every little thing counts, from beginning to end. The way your entrance is presented with wine and chocolates and a personalized letter, to the ease of checking out. Ensuring all staff members associated with delivering a five-star experience is up to date with your standards in delivering a great experience is key.”
16. Create a cleaning schedule
“To ensure a consistently high standard of cleanliness and maintenance in your vacation rental, it is important to establish a comprehensive cleaning schedule. This schedule should encompass tasks that need to be performed daily, weekly, quarterly, and seasonally,” recommends Jacqueline Barbosa from Morfin Cleaning Services.
“Examples of such tasks include carpet cleaning, window washing, and high dusting. Consider small details such as re-caulking, checking batteries, lightbulbs, filters, and even painting the unit if necessary. It is crucial to use quality products and professional cleaning services to ensure that every area, including appliances and windows, receives proper care.
Attention to detail is key when managing a rental property. In platforms like Airbnb, linens and bedding should be in excellent condition, and all appliances must work properly. Guests should have access to all necessary amenities such as toilet paper and soap, and a complete set of cooking utensils should be provided. It is important to regularly inspect these details and replace anything that is worn or damaged.”
17. Conduct inspections
“To maintain a high-quality vacation rental, it is important to regularly inspect, maintain, and upgrade the unit, including appliances and amenities,” says Jacqueline. “Providing a comprehensive guide for guests, which includes information on internet access, streaming services, local attractions, and useful tips, enhances their experience.
“Essential amenities and toiletries such as toilet paper, soap, and dish soap should be provided and regularly restocked after every visitor. Maintaining open communication with guests, checking in upon arrival, and seeking their feedback throughout their stay are key to providing excellent customer service and ensuring a positive guest experience.”
18. Provide uninterrupted guest service anytime, anywhere
“Providing a smooth and memorable guest experience is essential to maintaining a five-star rental. This involves communicating promptly with guests (no matter what time of the day or night), solving guest problems in a timely manner, and giving guests the tools to create the vacation of their dreams,” shares Sam Ripley from LocalVR.
19. Provide perfectly maintained appliances, ample storage space, and an inviting ambiance for your guests
“When it comes to keeping a five-star rental property, I recommend that all appliances and technology be well maintained and in excellent working condition,” suggests Norma Reyen, Professional Organizer and Owner of Simply Fresh Interiors. “I also recommend making sure that there is enough storage space, such as drawers, cabinetry, shelving, and hanging options. Having an appropriate amount of storage allows for a clean and decluttered space that all guests can enjoy. Lastly, maintaining a fresh-smelling home with good lighting and an airy ambiance will make your rental home memorable.”
20. Monitor booking requests
“Be communicative and professional, but warm and friendly. Don’t allow anyone to book without maintaining a standard; for example, guests must have previous and recent positive five-star reviews,” recommends Michael Skomina, from Host Easy BnB. “Liaise with your cleaners and laundry service, as they are the crux of the business and the most important asset to your success. Follow up and inspect after cleans; if necessary, guide and provide feedback in positive ways to help your services provide the best possible standard that you desire.”
The housing nightmare continues. The National Association of Realtors (NAR) reported that existing home sales for April came in at 5.41 million, down 3.4% from the previous month and 8.6% from last year. But, the savagely unhealthy data line was that home prices are up 14.8%.
Now that we are almost in July, we can safely say the premise that once mortgage rates hit 4%, the mass panic selling of American homeowners who need to get out at all costs, driving total inventory up in the millions, hasn’t happened. In truth, that was always a terrible premise.
My nightmare scenario, on the other hand, has happened and this is bad news for everyone. Total housing inventory has collapsed to all-time lows since 2020 and because this happened during the years 2020-2024, it created forced bidding and drove prices well above my 23% five-year home-price growth model in just two years.
Now that mortgage rates have risen, demand is getting hit, while we are still showing 14.8% home-price growth data. YIKES!
NAR Research: The median existing-home price for all housing types in May was $407,600, up 14.8% from May 2021 ($355,000), as prices increased in all regions. This marks 123 consecutive months of year-over-year increases, the longest-running streak on record.
Since the summer of 2020, I have truly believed that once the 10-year yield broke over 1.94% — which means 4% plus mortgage rates — the housing narrative would change. Home prices have escalated out of control since then, creating more rate move impact damage than it would have traditionally.
Whenever rates rise, we see it impact demand, and mortgage rates are at 6% and no longer at 3%. This is real demand destruction; prices and rates are a double whammy and why I have stressed we need to get inventory higher as soon as possible. The only way this happens is higher rates.
Since March of this year, housing demand has been falling more and more, but inventory is still below the 2010,2013,2016, and 2019 levels, which is a nightmare. Because housing is shelter, people don’t sell their homes to be homeless; it’s where they live. When you’re trying to sell your home, naturally, you’re a homebuyer too.
Rates have risen at the fastest pace ever, which makes houses more expensive, so in theory, some homebuyers can’t move. Home sellers with high equity aren’t as sensitive to higher rates because they bring a more significant down payment. Inventory skyrocketing back toward historical norms of 2 million to 2.5 million, which I would find to be the best thing ever for housing, is not happening this year. NAR Total Inventory Data Back To 1982:
Getting to that historical inventory level will take more time. I have stressed that housing doesn’t move like the stock market. Homeowners are in a better financial position than stock traders, which is why the idea of mass panic selling doesn’t reflect housing reality. You don’t get a margin call at noon and are forced to sell your house in seconds. A real estate investor, on the other hand, doesn’t have that type of shelter relationship with a home, that a homeowner does.
The goal is simple: We need total housing inventory to reach a range of 1.52-1.93 million to return to normal. Currently, we are at 1.16 million. Weakness in demand, time and the massive hit to affordability will get us there, but not at the speed people promoted last October.
Remember, inventory is very seasonal, and in the next few months, the seasonal inventory will fade, but before that happens we should still break over the previous year’s high. We should all be rooting for more inventory to end this madness.
Regarding the monthly supply for housing, we want this to get above four months as soon as possible. This would be a more traditional level for the housing market; we are making some progress here but not where we want to be yet. NAR Monthly Supply Data Before This report
As a nice jump in monthly supply, we see the seasonal push in inventory tied to sales falling, which means the months of supply should increase. This is the best part of today’s existing home report.
NAR Research: Total housing inventory registered at the end of May was 1.16 units, an increase of 12.6% from April and a 4.1% decline from May 2021. Unsold inventory sits at a 2.6-month supply at the current sales pace, up from 2.2 months in April and 2.5 months in May 2021.
Additional bad news from the report is the data for days on the market. The frustrating data line during this savagely unhealthy housing market has been days on the market stubbornly staying at the teenager level. We want this to go much higher to get back to anything normal.
We recently paid a severe price on the home-price growth nationally, and as long as this data line is still at a teenager level, we will not gain the balance in the housing market we need. We need home prices to fall by 17% to return to the peak growth model for the years 2020-2024 — just to have a regular market.
NAR Research: First-time buyers were responsible for 27% of sales in May; Individual investors purchased 16% of homes; All-cash sales accounted for 25% of transactions; Distressed sales represented less than 1% of sales; Properties typically remained on the market for 16 days.
Regarding sales trends, this data line still lags the reality of the rising rate environment, so we have a lot more room to go lower in sales. When mortgage rates were between 4%-5%, it looked more like a traditional downturn in sales with higher rates, adjusting to the massive price gains since 2020.
However, at 6% plus mortgage rates, we are seeing some real demand destruction as the most significant homebuyer in America, mortgage buyers, get hit with a double whammy.
While the purchase application data four-week moving average trend hasn’t gotten to levels that I thought I would see with mortgage rates this high, which was between 18%-22% year-over-year declines, we are picking up the pace now, and that four-week average is down 16.75% year over year. Remember that starting in October this year, the comps will be much harder to work with, so year-over-year declines of 25% to 35% are in play then.
The savagely unhealthy housing market continues until we can get inventory levels to cool down pricing and hopefully reverse some of the extensive material home price damage in America post-2020. If you want more of a guide on knowing when we will see a material change in that discussion, I wrote this article recently to go over what you should be tracking. A good rule of thumb to consider is inventory between 1.52 – 1 .93 million and over four months of supply, and then we are back to a normal marketplace.
Just imagine how much more damage we would have had this year if mortgage rates hadn’t risen. I, for one, am in total agreement with Fed Chairmen Powell: we need a housing reset because nothing good happens with such savagely unhealthy home-price growth.
Multifamily rent growth increased for the third consecutive month in May, albeit at a slower pace, according to the latest Yardi Matrix report. Despite the ongoing market turmoil, the average asking rent in the US was up $7 last month to $1,716. However, rent growth slowed to 2.6% year over year, the lowest level since … [Read more…]
Slickdeals and conducted by OnePoll, the study found 85% believe their home is in “dire need” of some updating, and 78% already have plans for home improvement projects this year.
These home improvers are planning to renovate or redecorate an average of three rooms in the next six months, putting their focus on the living room (49%), primary bedroom (48%) and kitchen (47%).
The results also suggest that the average homeowner plans to spend at least $1,753 on their upcoming projects.
However, 81% are trying to keep their projects as close to their budget as possible. Nine percent of respondents even claimed they could do it for under $500.
“Changing your home to reflect your style can be done even with a smaller budget,” said Vitaly Pecharsky, head of deals for Slickdeals. “This can start with something as simple as decluttering your home to larger changes such as bathroom vanities and appliances. Tapping into seasonal sales can also help you save.”
The most popular aesthetics people currently stick to in their homes are modern (29%), bohemian (12%) and rustic (7%).
When it comes to inspiration, many turn to the classics: decor/architecture magazines (55%), home improvement apps (54%) and TV shows (50%).
According to those polled, the best, most aesthetically-impactful “small” home improvement changes are simple ones like painting walls (46%), decorating with trinkets and tchotchkes (46%), buying new throw pillows (45%) and hanging art (44%).
Over half (52%) have considered changing their home’s aesthetic because of something they found and bought on sale.
Seventy-three percent are willing to purchase something for their home if it’s on sale, even if it doesn’t fit in with their home’s aesthetic.
Pecharsky added, “Finding a sale doesn’t have to mean sacrificing on your home’s aesthetic. By checking back regularly with a deal site like ours, you can find the best products at the best prices.”
For some, it’s the smell of freshly cut grass and the brush of leaves in the breeze, creating an escape from daily stressors. For others, it’s a competitive arena where precision skills are honed. It’s where business is sealed with a handshake, lifelong friendships are forged, wagers are won—and drinking is not only permitted, but encouraged.
It’s been called “a good walk spoiled” (Mark Twain), “the most fun you can have without taking your clothes off” (Chi Chi Rodriguez), and “an endless series of tragedies obscured by the occasional miracle” (many, many folks).
If the allure of golf has you in its grip, as it does for so many, perhaps you’ve entertained the fantasy of living near a golf course. Affordable real estate with great proximity to a course might sound too good to be true, like hitting a hole-in-one with your first swing of the day (or ever). But we’re here to correct that notion.
The data team at Realtor.com® found the places in the U.S. that have the best balance of great access to golf courses, relatively affordable real estate, and weather best suited for days on the greens. Some of these towns you’ve surely heard of and might assume come with a high price. Others are hidden gems you might not have thought of as great golf markets.
Whether you’re a near pro, a weekend duffer, or someone who just likes the idea of living near a course, you might just find your dream home on the green. Even if you’re not a golfer, these cities offer a lot to appreciate, from excellent weather to a high quality of life.
“In most residential golf communities, it’s only about a quarter of residents who are active golfers,” says Brad Klein, a golf course design consultant and golf journalist. “So what that tells you is that a lot of people are drawn to the golf community, even if they don’t play golf.”
Most golf communities draw a highly diverse group of homebuyers who nonetheless share certain bonds: They’re physically active and crave regular social interaction, says Klein.
“If you have golf, you probably also have pickle ball, swimming, platform tennis, a gym, and a social center at the local clubhouse,” he says. “Even if you don’t play, you have all kinds of options living near this sort of community.”
The cities on our list aren’t just golf havens. Many are also places with a high quality of life, where a cost of living below the national average makes them affordable not just in terms of real estate, but also in terms of everyday expenses.
We found these places by first rounding up all the real estate listings on Realtor.com from the past year within a 10-minute drive (in normal conditions) from one or more of the 6,445 public and private golf courses in the nation that we were able to map out. Then we aggregated home price data for those listings by city.
Then we factored in the number of golf courses clustered in those areas and weighed the climate and weather patterns—favoring places with more warm days to hit the links. Finally, we selected just one place per state, to ensure geographic diversity. (Otherwise, the list would be mostly Florida towns, along with some Mississippi locations and a couple of spots in Arizona.)
Let’s tee off into our top 10 locations for finding affordable homes near a golf course.
Nearby golf courses: 28 Median list price* for homes near golf courses: $299,900
Sun City, known for decades as a golf lover’s dream community, has year-round golf weather, a staggering number of nearby courses, and real estate that’s priced about 9% below the national average, vaulting it to the top of our list.
Now, this does come with a caveat: Generally, residents must be aged 55 and up, because this planned community on the northwest corner of the Phoenix metro area is aimed at retirees. The rules for who can live there are a bit complicated, so be sure to read up on the details.
This desert oasis has been drawing golf-minded retirees since it was established in 1960. Sun City was the first active retirement community in the United States, and it earned its pioneering developer, Del Webb, a place on the cover of Time magazine in 1962.
“What’s most impressive about it is how difficult it was to get golf courses out there with so little water,” says golf expert Klein. “The course superintendents getting grass to grow out there, on decomposing granite in the middle of the desert, is just amazing. People must have thought they were crazy.”
The Sun City South Golf Course is one of the most well known of the 28 golf courses in the area.
This 1,700-square-foot, two-bedroom home that backs up to the course is listed for $325,000.
Nearby golf courses: 12 Median list price for homes near golf courses: $245,000
Situated on the edge of the Atlantic Ocean, a little north of Fort Lauderdale, and just south of Boca Raton, Deerfield Beach has great access to golf courses and the shore. (See our annual affordable beach towns list, in case that also strikes your interest.)
The median home price for Deerfield Beach listings within 10 minutes of a golf course is $245,000, far below the national median of around $430,000. That’s because the vast majority of listings are cheaper condos and townhomes under 1,000 square feet.
The climate in Deerfield Beach is classified as a tropical rainforest, with warm, wet summers and mild, dry winters, making it an ideal location for all kinds of outdoor activities year-round.
“I was just in Deerfield Beach,” says Beth Daly, a real estate agent at Re/Max Experience in Fort Lauderdale. “We had the bluest sky, and the ocean was like a glass of water you could see all the way to the bottom.”
Daly says she frequently hears about the golf culture that buyers—especially out-of-towners—are looking for.
“I just had some golfers from Buffalo Grove, outside of Chicago,” Daly says, “They wanted a full-service club to live near, and they had plenty of options to choose from.”
Nearby golf courses: 11 Median list price for homes near golf courses: $215,000
Biloxi is a city that we see often when we look for affordable housing markets with standout quality-of-life features. Homes here are very inexpensive, at just about half of the national median list price.
And the Gulf coast climate means you golfers can hit the links just about anytime of the year. And when taking a day off from playing golf, residents here can enjoy the Biloxi beaches, with the neighboring Gulfport leading our most affordable beach towns list.
This three-bedroom, 2.5-bathroom house on a third of an acre, for $324,900, is near the Sunkist Country Club’s championship 18-hole course.
Nearby golf courses: 11 Median list price for homes near golf courses: $319,000
One of the most iconic Southern cities takes a top spot on our list, with year-round golf weather, homes priced about 25% below the national median, and plenty of opportunities to hit the fairways. The coastal, Gothic city is also known for its antebellum architecture and arts and culture scene.
The whole southeastern Atlantic seaboard is thick with golf culture and an abundance of world-class courses.
“Savannah, and the areas north into the Charleston area—where we hear it called ‘Lowcountry’ golf—is really popular right now,” says Tom Coyne, a New York Times bestselling golf author. “There’s so much more to this area than just the buddy trip for one or two rounds.”
But it’s not just exclusive or high-priced courses that people should think of in the area.
“There’s a sneaky-good public golf course in Savannah, called Bacon Park, which is just really charming and very affordable, and I believe it was designed by Donald Ross [we checked, and it was], a famous golf course tech,” Coyne says. “To be able to play a Donald Ross course for whatever the greens fee is there, it’s just awesome.”
Home shoppers can find a three-bedroom home about a half-mile from the Bacon Park Golf Course for $328,000.
Nearby golf courses: 7 Median list price for homes near golf courses: $194,900
Mobile, located on the Mobile Bay spilling out into the Gulf of Mexico, has the most affordable golf-proximate real estate on our list. Home prices here are less than half the national median of $430,000 in April. And while the home prices aren’t high, the area is rich with golf history.
“Alabama is known for the Robert Trent Jones Golf Trail, where they have a literal trail of courses designed by the great Robert Trent Jones,” Coyne says. The famous golf course architect designed more than 500 courses between the 1930s and the 1990s.
Mobile and the surrounding areas have a subtropical climate, which means lots of rainfall, so it’s no wonder the area has been a center of golf culture since early in the 20th century.
Nearby golf courses: 22 Median list price for homes near golf courses: $290,000
The first thing golf expert Klein asked when he heard about our list: “Do you have Myrtle Beach on the list?”
Myrtle Beach has been referred to as “The Golf Capital of the World” due to the sheer number of courses and the rich golf history in the area. The economy in this oceanfront South Carolina city is driven in large part by the vibrant tourism industry, which is mostly centered on the attraction of the area’s world-class golf courses as well as its amusement parks and famed beach.
Boasting courses from the Pine Lake Country Club to TPC Myrtle Beach, this popular vacation spot is practically synonymous with the sport.
Plus, with home prices per square foot not too far from the national median figure, this golfer’s dream is not just for the well-heeled. And with a population just topping 35,000, Myrtle Beach is the smallest of places on our list, which adds to the homey feel.
For less than $100,000, golfers on a budget can find a two-bedroom condo that’s walking distance from the famous Pine Lakes Country Club.
Nearby golf courses: 13 Median list price for homes near golf courses: $569,900
About an hour east of Los Angeles, in the center of the San Bernardino Valley, you’ll find Riverside. It’s the namesake of Riverside County and the most populous city in what’s called the Inland Empire—a broad swath of Southern California’s noncoastal desert region.
With year-round golfing weather and access to more than a dozen courses within 10 minutes, Riverside has the best combo of prices, nearby golfing, and climate in the Golden State.
To be sure, Riverside is the most expensive place on our list, with homes priced more than 30% above the national average, and even more per square foot. But, in the context of California’s real estate prices, Riverside is cheap. It’s around 20% less expensive than the California average and 40% less expensive than neighboring Los Angeles.
Those looking for a place near downtown Riverside but also close to a golf course might want to look at the Jurupa Hills Country Club, where buyers can find a three-bedroom home near the greens for $455,000.
Nearby golf courses: 35 Median list price for homes near golf courses: $229,000
The last three cities on our list are all in the Midwest, where homes have historically been more affordable than in other parts of the country. In Indianapolis, the capital of Indiana, homes within 10 minutes of a golf course are still 40% less expensive than the national average. And there are a surprising number of golf courses in this region.
Midwestern winters can be brutal, but the average monthly temperature is still above 50 degrees Fahrenheit for more than half of the year. While that might mean residents consider golf more of a seasonal pastime in these final three cities, the prices are less than half of what you would find in a city like Riverside, CA.
One of the most notable Indianapolis courses is built into the site of the Indianapolis 500, mixing golf with another of the town’s iconic draws.
Saddlebrook Golf Club is one of the closest to downtown Indianapolis, and for just shy of $230,000, home shoppers can get a three-bedroom home on a quarter-acre about 1,000 feet from the course.
Nearby golf courses: 26 Median list price for homes near golf courses: $239,900
Cincinnati, located on the Ohio River, boasts low home prices—and low-cost opportunities to play golf on a good public course.
“It’s so much more affordable than golfing in a place like New York or Chicago or L.A.,” says Klein of playing in smaller Midwestern cities.
Moreover, the Rust Belt city has an indelible golf tradition, in part due to the golf royalty from the area.
“In Ohio, you have a great golf history,” says Coyne. “Anyone who’s done anything big in the sport of golf has left a stamp in Ohio. And Jack Nicklaus hails from Columbus, so there’s got to be something good going on in Ohio.”
The Camargo Club, on the northeastern end of the Cincinnati area, has been ranked one of the best in the state. While the homes nearest to the course include custom-built, multimillion-dollar mansions, a three-bedroom home can be found about five minutes away for just under $280,000.
Nearby golf courses: 23 Median list price for homes near golf courses: $249,950
Golf might not be the first thing that comes to mind when you think about Omaha, Nebraska’s largest city located on the Missouri River. The city is home to several Fortune 500 companies, including Warren Buffett’s Berkshire Hathaway. It also boasts one of the best zoos and aquariums in the world.
But there are many options in Omaha for those looking for a home near a golf course, says Chris Bauer, a local Realtor at Berkshire Hathaway HomeServices. He’s found buyers are looking for either a more affordable option, usually near a public golf course, or access to pricier private clubs.
“Those are two different sets of buyers,” he says. “For the avid golfers who would only buy on a private course, you have Shadow Ridge, Deer Creek, Happy Hollow, or the Omaha Country Club.”
And for those looking for somewhere to live near a public course: “Pacific Springs, The Knolls, or Johnny Goodman. Those are all popular. There’s a wide spectrum here,” he says.
Watch: The Best Cities in the U.S. for Home Sellers Right Now
* Median list prices are from the last year on Realtor.com.