In less than two years, mortgage rates have more than doubled. At the end of 2021, the average 30-year fixed-rate mortgage had a 3.11% interest rate, according to Freddie Mac. Now, at the beginning of November 2023, the average has climbed to 7.94%.
The picture isn’t necessarily any brighter for other mortgage types either. For an adjustable rate mortgage (ARM), the average 5/1 ARM (meaning the interest rate is fixed for five years and then changes once per year after) has an annual percentage rate (APR) of 8.16%, while a 10/1 ARM comes in at 8.23%, according to Bankrate.
But will the picture look different in 2024? It depends who you ask. Some experts take a stronger view on rates falling in 2024, while others are less certain that will happen. In general, though, most seem to think that mortgage rate drops are more likely to occur toward the second half of 2024, though the change might be relatively small.
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Will mortgage rates go down in 2024?
Fannie Mae, for example, projects 30-year fixed-rate mortgages will start 2024 at an average of 7.1% and fall to 6.7% by Q4 2024.
“In 2024, do not anticipate mortgage rates to drop significantly. The current market environment leans towards stability rather than volatility and fear,” says Nathaniel Pitchon-Getzels, a buyer’s agent and listing agent at Compass.
“Before we see rates come down, it’s possible we’ll experience another rate increase. If they do decrease, it’s likely to be a gradual shift, possibly occurring at the end of the second quarter or the beginning of the third quarter,” he adds.
Rhonda Fisher, a real estate broker at Trust Equity Group and eminent domain expert with Consumer Notice, takes a similar view.
While she says she hopes mortgage rates come down in 2024, “the economic forecast suggests otherwise. With a strong employment market and inflation not decreasing as quickly as hoped, it doesn’t appear the Federal Reserve will be able to bring down rates anytime soon. The current rates are slated to continue until next year.”
Depending on economic variables like inflation, however, it’s possible that overall interest rates, including mortgage interest rates, will trend downward next year.
“If inflation and the economy weaken then we should expect to see interest rates lower toward the end of 2024,” says Fisher.
One way to get an idea of when mortgage rates are turning the corner and heading lower is to see when mortgage lenders stop making discount points mandatory. In the current environment, lenders often require homebuyers to pay money upfront in exchange for lower mortgage rates, in order for lenders to then be able to sell those loans to investors, explains Dan Green, CEO of Homebuyer.com.
“If you want to look smart and predict when mortgage rates will fall, keep an eye on discount points. Discount points will be a leading indicator for next year’s rates. When lenders start charging fewer points to buyers, that’s your signal that rates are about to drop,” he says.
He also thinks rates for different common loan types will generally move cohesively.
“Mortgage rates are generally close for the four major loan types – conventional, FHA, USDA, and VA. Over the last five years, VA and USDA loans averaged 0.25 percentage points below conventional loans, which averaged 0.15 percentage points lower than FHA loans. Buyers shouldn’t expect much change there,” says Green.
Learn more about your mortgage rate options here now.
Navigating the real estate market in 2024
If rates aren’t expected to drop significantly in 2024, what does that mean for buyers and current homeowners?
“Exactly what I always say to folks: what are your goals, what are you hoping to accomplish?” says Fisher. “For example, if a homeowner needs to make home improvements or renovations that are costly, a cash-out refinance might prove financially better than a personal loan.”
Some homebuyers also might be better off buying now than waiting to see if mortgage rates in 2024 drop.
“In the upcoming year, buyers need to be strategic and act promptly if they want to purchase a house. Waiting may lead to substantial losses in equity because property values continue to rise,” says Pitchon-Getzels.
Some sellers are also offering concessions, such as rate buy-downs in this environment, adds Fisher.
Still, it’s important to be mindful of what you can truly afford. Even if you think interest rates will drop and you can refinance later, that can be a risky strategy.
“When you buy a home, you have to expect that you’ll make its payments for the next 30 years because, even if mortgage rates drop, there’s no guarantee you’ll be eligible to refinance,” says Green. “What if you take a pay cut? What if you fall ill? What if life throws you a curveball?”
Instead, he says, “the best strategy for a homebuyer is to pick a mortgage and a payment that’s comfortable and stick with it. If the market improves and refinancing is possible, that’s terrific and lucky. But if refinancing is never an option, that’s okay, too, because the payment you’re making is within your zone of comfort.”
If you are in the market for a mortgage, be sure to shop around with different mortgage providers to see where you can get the best rate. Even a small difference in interest rates can add up to thousands of dollars in interest over the life of your loan, depending on the specifics, so it’s important to find the best fit for your circumstances.
The title of today’s recap gets a question mark because it’s fairly impossible to conclusively tie today’s market movement to measurable motivations. In other words, we don’t have any economic reports or stand-out news headlines that coincide with a bigger push of volume and volatility. Instead, domestic traders simply started selling first thing in the morning and backed off quickly after the first few hours. The rest of the day (essentially 10am through the close) was spent drifting sideways. If we want to jump to a fairly safe conclusion, it would be hard to disprove the notion that bond traders are feeling somewhat apprehensive about this week’s Treasury auction cycle.
09:25 AM
Slightly weaker overnight with small but notable uptick in selling as U.S. trading ramped up. 10yr up 5.2bps at 4.629. MBS down a quarter point.
02:43 PM
Steadily weaker all day. MBS down almost half a point. 10yr up 8bps at 4.656
04:48 PM
What looked like a very faint trend a few hours ago now looks like a flat line. Current levels are right in line with 10am. 10yr yields up 6.8bps at 4.645. MBS down just over 3/8ths.
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If you’re wondering if remote work might be right for you but don’t know where to start, make this guide your first step.
November 7, 2023
Remote work has progressed from a dream to a distinct possibility for many people, a shift fueled by pandemic-era necessity and technological breakthroughs. In fact, about one-third of U.S. workers who can work from home now do so all the time, according to the Pew Research Center.1
That’s great news for job seekers who want to work remotely—the ranks of whom are still robust. What’s driving the continued interest in remote positions? For employees, the benefits can range from greater job satisfaction and significant financial savings to increased productivity and improved work-life balance. In fact, the same 2023 Pew survey cited above found that 56% of employees felt they could get more work done and better meet deadlines when working remotely.1
“Working from home often allows you to plan your work around your life, rather than your life around your work,” says Kyle Elliott, a career and executive coach in Santa Barbara, California. “You’re able to create more flexible schedules that allow you to more easily attend to being a modern human—like running errands, going to appointments, or caring for a child or parent.”
Of course, what works for most might not necessarily be what’s ideal for you. So how do you determine if remote work might be a good fit? And what are work-from-home careers that pay well? Don’t worry—we’ve got insights to help you answer those questions and several more.
Is a work-from-home career right for you?
Real talk: Even if you’re hoping to find a new job, not every person thrives in a remote work environment. These questions can help you determine your potential fit—before you put a ton of energy into the job search.
What are your career interests and dreams?
Tech, finance, and professional and business services are the sectors in which remote work is most common, but don’t assume remote work is a no-go if your industry falls somewhere outside of those categories. It’s possible to find work-from-home careers in a staggering number of fields, including manufacturing and food services. The biggest fit factor isn’t industry but rather the type of work you want to do. Hands-on work is impossible to do remotely, for example, and spans across industries. Think: surgeon, construction foreman, hair stylist, airline pilot.
How would you rate your ability to manage yourself?
Though digital tools can make it easy to collaborate with coworkers from anywhere, working remotely may mean less management overseeing how you spend your time on tasks and fewer informal opportunities to ask clarifying questions. That’s why employers that allow remote work tend to look for self-starters who are well organized and proactive about seeking guidance if they get stuck on a task or want to stretch into new responsibilities.
“Work-from-home careers require significant dedication and self-motivation,” says Elliott. “You have to be honest with yourself and decide if you can be productive in an entirely remote job.”
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Do you have the right setup to work remotely?
Those with a spare room or already established home office will have an easier time operating in careers where you can work from home than someone sharing space with multiple roommates and a yelping dog. Also, consider that working from home may mean losing a lot of office-based infrastructure—like access to a printer, endless pens and paper clips, and free breakroom snacks. While some employers might offer a home office stipend or an initial flat sum to help you get your home office up and running, usually you’ll have to purchase extras like supplies and snacks on your own.
Tip: Many companies allow you to split your direct deposit between savings and checking accounts, providing an effortless way to save with each paycheck.
Can you draw a clear line between work and life?
Toni Frana, lead career expert at FlexJobs, points out that it’s crucial for remote workers to stay vigilant about the hours devoted to work versus their personal time—or else they risk letting their professional pursuits swallow up their day. “From a life balance perspective, remote employees must understand the importance of setting boundaries between work time and nonwork time because it can be easy to blur the lines when working from a home office,” says Frana.
Are you a social butterfly?
Even with a calendar full of virtual meetings, some people prefer social interactions to take place in real life. In fact, feelings of loneliness and isolation are a notable drawback of careers you can do at home. If you’re more extroverted, staving off such loneliness might require seeking out more off-the-clock social opportunities.
7 work-from-home careers that pay well
(Salary estimates provided by Glassdoor as of September 2023)
Social Media Manager
Average annual salary: $57,099
How it’s growing: The overall field of advertising, promotions, and marketing managers is expected to grow 6% (faster than average) between 2022 and 2032, according to the U.S. Bureau of Labor Statistics. And with social media now a business necessity across industries, it’s fair to say that this niche represents a healthy slice of that projected growth.
What the gig involves: Social media marketers use platforms on behalf of companies to attract and engage with potential and current customers. The role can include everything from writing posts and responding to customer comments to cultivating an audience and analyzing social media metrics to determine a marketing campaign’s success and help shape future efforts.
Why it’s doable from home: Social media, by definition, takes place online.
Project Manager
Average annual salary: $96,460
How it’s growing: The U.S. Bureau of Labor Statistics estimates 6% job growth in the project management industry through 2032. Industry experts say the looming retirement of a sizable swath of current project managers means plenty of demand for fresh faces in the field.
What the gig involves: Project managers flex organizational and people skills to help teams execute initiatives smoothly and efficiently while ensuring projects stay on time and on budget. Though you can find project manager positions in almost any industry, the role is prevalent in project-intensive fields, such as IT, construction, energy, transportation, and health care.
Why it’s doable from home: Digital tools make remotely coordinating and managing teams easier than ever. Even in industries like construction—where much of the work is done on-site—technology can help to lessen the frequency of on-site visits.
Data Analyst
Average annual salary: $80,115
How it’s growing: The need for operations and research analysts (which includes data analysts) is expected to grow a stunning 23% from 2022 to 2032, according to the U.S. Bureau of Labor Statistics.
What the gig involves: As the volume and velocity of business data grow, companies need assistance making sense of it all. Data analysts help by collecting, cleaning, and interpreting data to answer questions and solve problems for organizations in a wide variety of industries.
Why it’s doable from home: Even in industries where data is related to on-site operations (say, manufacturing or retail), analyzing that data requires digital tools.
Virtual Assistant
Average annual salary: $44,540
How it’s growing: The job outlook for the overall field of secretaries and administrative assistants is expected to shrink by 10% between 2022 and 2032, according to the U.S. Bureau of Labor Statistics. However, demand for virtual assistants seems to be bucking that trend.
What the gig involves: From freelance virtual assistants who juggle multiple clients to full-time staff positions dedicated to assisting one executive, this role can take a lot of forms. But at its core, being a virtual assistant means helping companies or business leaders with office-related tasks—which might mean anything from scheduling meetings and coordinating work travel to proofreading presentations and managing social media accounts.
Why it’s doable from home: With everything from board meetings to team brainstorm sessions increasingly taking place online, digitally supporting such work can be seamless.
Web Developer
Average annual salary: $81,756
How it’s growing: Demand for web developers and digital designers is expected to grow 16% (much faster than average) between 2022 and 2032, according to the U.S. Bureau of Labor Statistics.
What the gig involves: Web developers create and maintain websites: Front-end developers focus more on the site’s visual design and navigation, while back-end developers focus more on coding and managing site access. (Full-stack web developers, as you might guess, span both front- and back-end responsibilities.) Day-to-day duties can vary considerably, depending on whether you’re building sites for multiple clients as part of an agency or working at a larger company. But typical responsibilities include designing user interfaces, writing and reviewing code (such as HTML or JavaScript), testing web applications, and posting site content.
Why it’s doable from home: The online nature of the work makes it an easy fit for working from home.
Sales Representative
Average annual salary: $93,041 (includes commissions).
How it’s growing: The U.S. Bureau of Labor Statistics projects 1% employment growth for sales representatives between 2022 and 2032, slightly below average compared to the expected 3% growth for the overall job market.
What the gig involves: Armed with a combo of strong interpersonal skills and deep product knowledge, sales representatives work to understand customers’ needs and then sell them solutions—which can include anything from complex tech products to baby bottles, depending on where they work. You might focus on wholesale, business-to-business, or consumer accounts, implementing day-to-day sales activities to achieve established sales targets.
Why it’s doable from home: Though some sales representative roles demand extensive travel and in-person client meetings, digitally native brands can be successfully handled from anywhere with a strong Wi-Fi connection and other digital tools.
IT Support Specialist
Average annual salary: $48,253
How it’s growing: Job growth for computer support specialists is expected to grow 5% between 2022 and 2032, according to the U.S. Bureau of Labor Statistics.
What the gig involves: IT support specialists troubleshoot common tech issues for end users, whether that means internal employees struggling to access a server or external customers who can’t get the company’s app to work properly. Robust knowledge of standard computer systems is a must, as is the ability to communicate clearly (and patiently!) with people across all levels of tech know-how. In addition to fielding help requests, IT support specialists may manage systems to keep them operating effectively and make recommendations to improve those systems.
Why it’s doable from home: The rise of remote work means there’s less need for in-office IT support staff. And specialized digital tools make it easy to effectively handle everything from customer ticket management to remotely accessing company devices.
How to Start Your Work-From-Home Career Search
Step 1: Tailor your job search terms.
While remote-only job boards and social media groups can be incredibly useful, hunting through the haystack of large, general job boards is worthwhile as well. Include search terms like “remote,” “virtual,” or “telecommuting” alongside job titles in your search queries (e.g., “remote IT support specialist”). On websites dedicated to job postings, for example, you can also search for the job title that interests you and list the location as “remote” to filter the findings. Note: Not all could-be-remote job openings will trumpet that fact in the job listing. Look for clues like “flexibility” and “work-life balance,” indicating that an employer may be open to remote or hybrid work models.
Step 2: Put the word out.
Even without decades of work experience under your belt, your network can be a powerful way to find your next great gig—but only if people know what you’re looking for. Don’t just say you’re open to new opportunities on your professional profile; adjust your settings to enable the “open to work remotely” feature. And if your job search comes up at networking events (whether that means an alum mixer at your college or an industry message board), don’t be shy about specifying that you’re looking for a remote role.
How to Get a Remote Job
1. Highlight your remote qualifications (even if you’ve never worked remotely).
If you have experience working remotely, you’ll want to state that clearly in your resume and cover letter. But even without such experience, you’ll want to show potential employers that you have the skills—such as self-direction, strong communication, and problem-solving—that align with remote work. Did you lead a big group project in college where everyone worked asynchronously? Or maybe you broke down larger deadlines into daily tasks in your last role? Do you have experience coordinating with team members spread out across geographies and time zones? Now is the time to highlight such skills. You might also want to add a technology section to your resume to specifically highlight your experience with digital collaboration tools and software.
Finding a quiet, tidy, and well-lit spot is a smart move for any virtual meeting, but when interviewing for a remote position, that backdrop can reassure potential employers that you have an environment conducive to remote work. It’s important to test any tech you might use in the interview (such as headsets and cameras) ahead of time. You could even ask a friend to join you for a brief video meeting to give feedback on your audio and lighting.
3. Get prepped to answer questions about remote work.
What interests you about a remote position? Why do you think you’re well suited for remote work if you don’t have remote experience? What do you think will be your biggest challenge in working remotely? Though career experts generally advise job hunters not to introduce the topic of remote work during an interview, you may be asked about it at some point. To avoid being put on the spot (or blurting out a cringe-worthy answer you’ll regret later), think through potential responses beforehand. Another thing to be ready for—negotiating your salary. Hint: Just because you’re asking to work remotely doesn’t mean you have to settle for less than you’re worth.
Ready, set, go! Start exploring careers you can do at home
There’s no time like the present to look for one of the work-from-home careers described above, especially given how dramatically attitudes about remote work have changed in recent years. If you’ve ever dreamed of cutting your commute time to zero minutes, consider this a sign to investigate the opportunities that await.
Landed that dream remote job you’ve been hoping for? Set up your direct deposit with a new Discover Cashback Debit account.
1 “About a third of U.S. workers who can work from home now do so all the time.” Pew Research Center, Washington, D.C. (March 30, 2023) https://www.pewresearch.org/short-reads/2023/03/30/about-a-third-of-us-workers-who-can-work-from-home-do-so-all-the-time/
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Bonds are starting the new week in slightly weaker territory. There are not compelling motivations for the move in terms of data, events, or headlines, but that doesn’t mean we don’t have any justification. In fact, a rally as big as the one seen during the previous 3 business days is often followed by at least a temporary correction/consolidation. Depending on the broader context, these corrections can last a day or significantly longer.
In some cases it is actually the big initial rally that is the correction before the longer-term trend continues (as seen in the chart above). While that gloomy eventuality can’t be ruled out, it would depend on economic data and inflation in the coming weeks and months.
Either way, we now have a few useful pivot points overhead. These levels don’t predict the future, but if yields break and hold above these levels, it would be a bit more bearish than another random move higher. Another way to use this chart would be to conclude that a correction in yields isn’t too troubling until it starts breaking these ceilings.
With its stunning sunsets and iconic cacti, Phoenix is not just a hub of natural wonders, it’s also an evolving hotbed of real estate activity. The Phoenix housing market in 2023 is certainly not the same as the years prior. So, if you’re intrigued by the Phoenix housing market, here’s a comprehensive exploration of its current state.
Phoenix housing market prices and dynamics
Let’s begin with the golden number. In 2023, the Phoenix housing market witnessed a 2.3% year-over-year rise, catapulting the median sale price to $440,000. When you compare this figure with the national numbers, Phoenix proudly stands 5% taller than the national median.
However, the Phoenix housing market isn’t just about escalating prices. It tells a broader story. The number of owners finding new homes was 1,307, marking a 20.5% decline from the previous year. This decrease, juxtaposed with rising prices, hints at an intriguing supply-demand dynamic.
Homes in Phoenix are flying on and off the market quicker than a desert hare. They’re staying on the market for just 35 days on average, a full 8 days shorter than in 2022. Despite this, the Phoenix housing market remains somewhat competitive. The majority of homes are selling for just below their asking price. However, it’s heartening for sellers that about 22.9% of homes bucked the trend and sold above their list price.
Migration patterns in the Phoenix housing market
Phoenix’s allure is undeniable. Between July and September 2023, 70% of Phoenix homebuyers chose to settle down within the comforting confines of the Phoenix metropolitan area.
An intriguing 30% of Phoenix’s populace peeked over the city’s fences, contemplating relocation. On the national front, Phoenix’s charm called out to 2% of relocators. Seattle, Los Angeles and Tucson (pictured above) topped the list of cities whose residents made their way to the desert. But where are exiting Phoenicians casting their wandering eyes? The picturesque Prescott Valley, tranquil Show Low and forested Flagstaff emerged as the top choices.
Nature’s effects on the Phoenix housing market
Today’s homebuyers aren’t just looking at granite countertops and swimming pools. The Phoenix housing market, set against a backdrop of global climate discussions, prompts buyers to consider nature’s whims as well.
Floods: 12% of Phoenix homes face potential flood threats in the next three decades.
Fires: A significant 54% of properties sit under the shadow of potential wildfires.
Winds: Fortunately, severe winds give Phoenix a wide berth.
Heat: A sizzling 79% of Phoenix homes could feel the heat soaring to worrying levels in the coming years.
Getting around in Phoenix
No look at the Phoenix housing market would be complete without assessing how its citizens move. Phoenix scores 41/100 on the Walk Score®, making it largely car-dependent. Transit options are available but limited, scoring 36/100, while bikers can find solace with a fairly bikeable score of 56/100.
Final thoughts on the Phoenix housing market
The Phoenix housing market story unfolds as a tale of rising prices, quick sales, migration trends and nature’s ever-evolving effects. For buyers and sellers alike, navigating this market requires a blend of data-driven insights and a touch of desert intuition.
The Phoenix rental market: An inside look
The appeal of Phoenix is not only evident in its thriving housing market but also in its rental market. Let’s dive into the numbers and trends defining the Phoenix rental market in 2023.
Snapshot of average rents in Phoenix
If purchasing a home in Phoenix isn’t an option, renting is an attractive alternative. Here’s a concise breakdown of the average rent across various apartment types:
Studio: Holding steady, a studio apartment carries an average price tag of $1,122 per month, reflecting no annual change.
1-bedroom: Renters looking for a bit more space can expect to pay an average of $1,274 for a one-bedroom apartment, marking a slight 3% dip from the previous year.
2-bedroom: Those craving more space will find the average rent for two-bedroom apartments at $1,577, a 4% annual increase from the previous year.
Price ranges and their popularity
The Phoenix rental market is diverse, catering to a variety of budgets. A deeper look into the apartment rent ranges showcases a clear preference among renters:
Budget-friendly: Surprisingly, apartments in the $501-$700 bracket are virtually non-existent, with 0% availability. The $701-$1,000 range, often sought after by budget-conscious renters, constitutes only 4% of the rental market.
Mid-range: Apartments priced between $1,001-$1,500 are slightly more available, making up 17% of the market. Those between $1,501-$2,100 claim a more significant chunk, with 27% of apartments falling into this bracket.
Premium choices: Reflecting the city’s growth and the demand for luxury living, a whopping 51% of apartments are priced at $2,101 and above. This dominance underscores a trend towards upscale living in the heart of Phoenix.
Rental market implications
Phoenix’s rental market paints a picture of a city in flux. The predominance of higher-priced rentals suggests a shift towards luxury living and indicates a potential rise in disposable incomes among the city’s populace. However, the relative scarcity of budget-friendly apartments could pose challenges for students, young professionals or those seeking affordable housing options in Phoenix.
As Phoenix continues to grow and evolve, understanding these rental dynamics will be crucial for potential renters, real estate investors and policymakers to ensure that the city remains both welcoming and accessible to all.
Looking for a place to stay in Phoenix? Check out our apartments and homes for rent in the area.
A native of the northern suburbs of Chicago, Carson made his way to the South to attend Wofford College where he received his BA in English. After working as a copywriter for a couple of boutique marketing agencies in South Carolina, he made the move to Atlanta and quickly joined the Rent. team as a content marketing coordinator. When he’s off the clock, you can find Carson reading in a park, hunting down a great cup of coffee or hanging out with his dogs.
California’s population of homeless veterans has plateaued despite billions of dollars in state spending to create housing for former military service members. Now, Gov. Gavin Newsom wants to shift the state’s resources to focus on veterans with serious mental health conditions.
$6.4 billion mental health bond he’s sending to voters in the March primary election, would set aside funding specifically for veterans with serious behavioral health conditions.
That’s a shift from California’s last two major efforts to fund housing for veterans, both of which created units for a general population of former military service members.
The first effort began in the late 1990s, when the state built seven new veterans’ homes over a period of 17 years. Today those veterans homes are underused. They were built to house about 2,400 people, but only 1,575 veterans live in them. The 300-unit veterans home in Barstow was so underutilized in 2020 that Newsom moved to close it as he braced for a pandemic recession, although lawmakers blocked him from shutting the site.
The second push centered on a pair of ballot measures voters approved in 2014 and in 2018 that allocated $4.6 billion to build housing specifically for former military service members. The money created the Veterans Housing and Homelessness Prevention Program, which has supported the construction of about 3,250 housing units for veterans to date.
Veterans advocates and state officials view the programs — along with federal efforts led by the Department of Veterans Affairs — as successful in reducing homelessness among former military service members. In the last 12 years, veteran homelessness in California has decreased by more than 30%.
But the trend in California mostly accounts for gains made during the Obama administration, when veteran homelessness peaked nationwide and the Department of Veterans Affairs moved aggressively to place former troops in housing. Since 2014, the number of homeless veterans in California has mostly plateaued around 10,000 to 12,000 people, according to annual counts released by the Department of Housing and Urban Development.
Alex Visotzky, senior California policy fellow at the National Alliance to End Homelessness, said the high numbers of veteran homelessness result from the challenges veterans face on returning home in California’s competitive housing market.
“When housing markets are unaffordable and incredibly competitive, those with the greatest needs are going to be more likely to fall out,” he said.
Newsom’s new strategy in the mental health bond, advocates say, should help those most in need. The California Department of Veterans Affairs estimates that half of the state’s unhoused veterans suffer from some kind of behavioral health issue.
The money in the bond would go to the state’s Department of Housing and Community Development, which would work with CalVet “to focus specifically on housing veterans experiencing behavioral health challenges,” said Assemblymember Jacqui Irwin, the Thousand Oaks Democrat who wrote the bill that ultimately put the bond on the ballot.
Studies have shown veterans are overrepresented in the nation’s homeless population. They may experience personal challenges, such as post-traumatic stress disorders or other mental health issues as well as disabilities related to their military service.
“Transitioning from that very specific culture and society to civilian life is a lifelong process,” said Amy Fairweather, director of policy at the veterans advocacy group Swords to Plowshares. “If you do have any physical or mental disabilities, dealing with those and trying to re-enter civilian life can be very difficult.”
Napa County as the state’s first veterans home. That site is still in operation, housing around 600 veterans on a picturesque property in wine country.
Altogether, the state now has eight veterans homes. The two largest homes are in fairly remote communities — one is in Napa County’s Yountville and the second is in Barstow in the Mojave Deserts. Moving to them can mean living at a long distance from a veteran’s family. That geography somewhat limits interest in the homes.
The homes account for the lion’s share of CalVet’s $650 million annual budget. Some advocates have called on the state to put money into programs that would benefit people who don’t necessarily want to live in a veterans home.
“The state should keep its promises to the current home residents, but as things change, the program needs to be less structured on just providing room and board for a very limited number of people and more structured on providing skilled nursing facility care for those who need it,” said Ethan Rarick, executive director at Little Hoover Commission, which published a report on the veterans homes in 2017.
Outside of the veterans homes, California approved a series of bonds meant to help military service members find housing beginning in 2008. The Veterans Bond Act, passed that year, provided $900 million to veterans through the CalVet Home Loans Program.
In 2014, California passed an initiative creating the Veterans Housing and Homelessness Program, which put $600 million toward building multi-family homes for veterans. A second ballot initiative in 2018 gave another $4 billion to the program.
The federal Department of Veterans Affairs, meanwhile, has kept up steady funding for housing vouchers that can provide a place to live for former troops. The Veterans Affairs Supportive Housing program, commonly known as HUD-VASH, was a centerpiece of the Bush and Obama administration’s efforts to curb veterans’ homelessness. It provides rental assistance to over 100,000 veterans nationally.
A steep drop in veteran homelessness
The number of homeless veterans in the U.S. peaked in the Great Recession, when the VA in 2007 reported some 154,000 former troops were homeless.
At that time, Fairweather of Swords to Plowshares said many of those deployed in the Iraq and Afghanistan wars were starting to come back home “to a society that wasn’t prepared for it.”
On top of that, they and older veterans struggled in the economic downturn, which led to more unemployment and homelessness.
“It all came together in a way that was really disadvantageous to the veterans,” she said.
Last year, the VA estimated about 33,000 veterans were homeless nationwide. According to the 2021 annual homelessness assessment report by the federal Department of Housing and Urban Development, more than half of them are over age 55. The data also shows that Black veterans are more likely to be homeless than veterans belonging to other races.
Advocates say veterans can be reluctant to ask for help.
“When veterans ultimately fall down that hole into homelessness, what is happening along with that is that they’re losing connection with friends and family, because they’re ashamed that their life is falling apart and it’s hard for them to ask for help,” said Stephen Peck, president of the veterans support organization U.S. Vets.
San Francisco native and Army veteran Latoya White has struggled to stay housed in the dozen years since she left the service. She has found it difficult to afford rent even though she was able to keep decent jobs at a grocery store, the San Francisco airport, and now as a city bus driver.
She was unfamiliar with the resources the VA offered to veterans, like housing vouchers.
“I’ve always had benefits through my job. I don’t think that then the VA had as many resources as they have now. I did go to the VA and they’re so limited on what they could help me with. So, you know, I just went and got a job and I just was really self sufficient,” she said.
After sleeping in her car and couchsurfing for several years, White reached out for help from the advocacy group Swords to Plowshares. That led her to transitional housing, and then to an apartment in San Francisco this June through the HUD-VASH program.
“A lot of us didn’t even know anything about the HUD-VASH program,” said White, 34. “A lot of veterans don’t even know that there is assistance out there for them.”
What does Newsom want to do?
Putting the money into the mental health bond comes with a tradeoff.
In advancing Newsom’s mental health plan, lawmakers amended an early version of Assemblymemer Irwin’s veterans’ housing bill that would have issued more bonds for the existing veterans’ housing program. Without new funding, the program that supports construction of multi-unit veterans’ housing is expected to run out of money in 2024.
Still, representatives for Newsom’s ballot measure in a written statement said the bond would create more capacity to help former troops.
“Proposition 1 adds new money for California’s most vulnerable veterans without any redirection or reprioritization from the current program. Without Proposition 1, there would be zero funding for homeless veteran housing moving forward, which is why the measure is so critically needed,” the statement read.
All together, the ballot measure going to voters includes $6.4 billion to fund projects for behavioral health issues and those at the risk of homelessness. It also includes a proposal to adjust how the state spends money it collects for mental health services from a tax on personal income over $1 million, aiming to direct more of the money to housing.
The $1 billion for veterans housing will be distributed in the form of loans and grants by the Department of Housing and Community Development.
Representatives from veterans’ groups say the program’s success could hinge on getting the word out, and providing services that provide a path out of homelessness.
At U.S. Vets, Peck said the nonprofit strives to create a community where veterans help veterans.
“Building that community is really important,” he said. “A federal veteran who’s been through the process already is probably more effective than we are as social workers.”
Gibson, who currently lives in transitional housing provided by Swords to Plowshares, has started to find that community through the nonprofit.
“I talked to them about how I’m struggling with some issues and they are pretty open and supportive about it,” she said.
Gibson hopes that federal and state services fund more community-oriented programs like hers, so more veterans are able to feel like they are home.
Supported by the California Health Care Foundation (CHCF), which works to ensure thatpeople have access to the care they need, when they need it, at a price they can afford. Visit www.chcf.org to learn more.
“It all starts with a team effort,” Medve said. “I built an A-team just like in the Naval Academy where I played football, track, and tennis. I learned that you win as a team, and you lose as a team and everybody I can trust – every single one of my employees – implicitly do … [Read more…]
A new report released by credit bureau Equifax and Moody’s Economy.com revealed that 4.46 percent of mortgages were at least 30 days past due at the end of the first quarter, up from 3.98 percent the prior quarter and 2.92 percent a year earlier.
More troubling, the foreclosure rate surged to 1.39 percent from 1.08 percent last quarter, and was more than double the 0.58 percent rate a year ago.
The increases in both delinquency rate and foreclosure rate were the largest since the firms began reporting such data in 2000.
Florida led the nation in delinquent first mortgage payments, with 7.03 percent of borrowers falling behind, followed by Nevada at a rate of 6.59 percent and Rhode Island at 5.85 percent.
The national default rate for closed-end second mortgages was 5.36 percent, with 11.98 percent in default in California, followed by 11.41 percent in Florida and 9.87 percent in Nevada.
Home equity lines of credit weren’t half as bad with a national default rate of 2.37 percent, but Alaskan borrowers led the nation at a rate of 5.15 percent, followed by Nevada at 4.97 percent and Florida at 3.75 percent.
Bucking the trend was North Dakota, which had the lowest first mortgage default rate at just 1.40 percent, a default rate of zero on home equity loans, and the lowest closed-end second mortgage default rate in the nation at just 1.51 percent.
In terms of overall delinquency rate, Florida, Nevada, and Mississippi fared worst, while North Dakota, South Dakota, and Wyoming performed the best.
Meanwhile, a record $715 billion in consumer debt is now delinquent or in default, up from $300 billion three years ago, proving that a spillover is a very real problem.
The world of real estate is vast and varied, with numerous options catering to renters’ diverse needs. Among the many choices available, private-owner house rentals have carved out a distinct niche, appealing to those seeking a more individualized experience.
These rentals, run by individual homeowners rather than large corporations, possess their own unique set of merits and challenges. We’ll provide an in-depth exploration of the benefits, drawbacks and nuances surrounding houses for rent by a private owner, contrasting them with more traditional rental avenues.
Defining private-owner house rentals
Private-owner house rentals refer to properties that are rented out by individual homeowners rather than by property management companies or real estate corporations. These private-landlord rentals can range from vacation homes to apartments to single-family residences and more.
Pros of privately owned house rentals
If you’re looking for a place to rent, private-owner house rentals emerge as a unique option, often favored for their personalized approach and distinct charm. Unlike properties managed by larger firms, these rentals offer potential benefits that arise from direct interaction with individual homeowners and the idiosyncratic character of their properties. Let’s delve into some of the prominent advantages of choosing private owner house rentals over those run by large companies.
Personal touch: Private homeowners might offer a more personal touch compared to larger property management firms. This could mean more flexibility in terms of lease agreements, move-in/move-out dates or any other limitations and stipulations.
Direct communication: Renters often communicate directly with the property owner, often leading to quicker response times for maintenance requests or other concerns.
Unique properties: These rentals might have distinctive and unique properties that aren’t typically found in larger apartment complexes or managed communities. Think crown molding, brick walls, hardwood floors and more.
Potential for lower costs: Without the overhead of a property management company, private owners might offer better rental prices.
Flexible terms: Some private owners might be open to short-term leases, month-to-month arrangements or other non-traditional rental agreements.
Cons of privately owned rental properties
Now that we’ve covered some of the most appealing aspects of private-owner rentals, let’s dive into some of the downsides and pitfalls that can potentially affect your experience with a private-owner house rental.
Inconsistency: The experience can vary widely from one private owner to another. While some might be highly professional and organized, others may be less so.
Limited amenities: Private rentals might not offer the same amenities that larger complexes or communities do, such as swimming pools, fitness centers or security services.
Maintenance delays: Some private owners might not have the resources or connections to address maintenance issues as promptly as larger management firms.
Lack of formal process: There may be a lack of formal processes in areas like application screening, security deposits and lease agreements, which could lead to potential legal disputes.
Potential for bias: Without the procedures and policies of a larger company, there might be more room for unconscious bias or discrimination in the rental process.
Private-owner house rentals present a compelling blend of advantages and challenges. While their personal touch can provide renters with a tailored experience, the potential inconsistencies and lack of standardized processes can pose challenges.
As with any rental decision, potential tenants should carefully consider the pros and cons before making any decisions, ensuring that their choice aligns with their preferences, needs and expectations for a harmonious living arrangement.
Other considerations when looking at houses for rent
Like most of life’s major decisions, there’s more to consider about private-owner house rentals than just the pros and cons.
Research is key: Due diligence is essential when considering a private owner house rental. Potential renters should research the property, check references and understand the lease terms thoroughly.
Legal protections: Both renters and landlords should be aware of local rental laws and regulations to ensure that they’re both protected. This might include understanding rights related to security deposits, eviction processes and property maintenance.
Contracts: even if renting from a private owner, having a written lease or rental agreement is crucial. This document should clearly outline the terms of the rental, including rent amount, duration of the lease, maintenance responsibilities and any other relevant details.
While there are many advantages to this type of arrangement, potential challenges can arise. As always, thorough research and understanding of the rental agreement are essential for a successful rental experience.
Nuances in legalities between a house and an apartment
Understanding the differences between renting a house and an apartment from a private owner goes beyond just the physical structure; there are also legal nuances to consider. Both situations will involve lease agreements and rights for tenants and landlords, but there are some distinctions to be aware of:
Zoning and land use
Houses might be situated in areas with zoning restrictions that dictate how the property can be used. For instance, certain residential zones might prohibit running a business from home or may have specific parking regulations. On the other hand, apartments are generally in zones designated for multifamily dwellings, which can come with their own set of rules and regulations.
Maintenance and repairs
For houses, the responsibility for external areas like lawns, gardens and driveways often falls on the tenant unless otherwise stipulated in the lease. With apartments, the responsibility for maintaining common areas typically rests with the property management or homeowners association.
Security deposits
Both houses and apartments usually require security deposits to cover wear and tear. However, with houses, there might be additional deposits or fees for landscaping or potential damage to larger outdoor areas.
Utility responsibilities
In apartments, certain utilities like water, trash collection or electricity might be covered by the landlord or the property management, especially if they are shared resources. In contrast, tenants renting a house usually bear the responsibility for all utilities, including water, electricity and garbage.
Liability
Homeowners might have broader liability concerns. For example, suppose a person gets injured on the property, like slipping on an icy driveway. In that case, the responsibility might fall onto the homeowner or the tenant, depending on the terms of the lease. In apartment complexes, the liability for common areas is usually on the property management or owner.
Subleasing and assignments
Lease agreements for houses might be more flexible compared to apartments, which may have stricter guidelines enforced by property management. This isn’t a strict rule, but a general trend given that a private landlord might negotiate these terms.
Pets and modifications
Apartments often have strict rules regarding pets, alterations or additions to the unit. Houses might have more flexibility, but that’s not a given. Still, a house renter might have more latitude to request permissions for larger modifications or to keep larger pets, possibly dodging some breed restrictions in the process.
Is a private-owner house rental right for you?
While the basic principles of landlord-tenant law apply to both houses and apartments, the specific responsibilities, rights and restrictions can differ based on the nature of the property. Renters and landlords need to be clear on these nuances to ensure a smooth rental experience and avoid potential disputes. Navigating the intricacies of real estate rentals requires a nuanced understanding of each available option. Private-owner house rentals offer an alternative to the conventional rental route, underlined by a personalized touch and distinctive property features.
However, as with all choices, potential renters must balance these benefits against possible drawbacks. By staying informed and conducting thorough research, renters can make educated decisions and find a home that aligns seamlessly with their needs.
A native of the northern suburbs of Chicago, Carson made his way to the South to attend Wofford College where he received his BA in English. After working as a copywriter for a couple of boutique marketing agencies in South Carolina, he made the move to Atlanta and quickly joined the Rent. team as a content marketing coordinator. When he’s off the clock, you can find Carson reading in a park, hunting down a great cup of coffee or hanging out with his dogs.
While high mortgage rates are keeping everyday working Americans out of the housing market, wealthy buyers with the means to buy multi-million dollar homes in cash are doing just fine.
In fact, luxury home prices, sales and inventory are all outpacing the regular real estate market, a reversal from last year when high-end buyers pulled back.
That’s according to a new report from Redfin, which shows the median price of luxury U.S. homes rose 9% year over year to $1.1 million in the third quarter, while the median price of non-luxury homes climbed only 3.3% to $340,000. Both hit their highest level of any third quarter on record.
The Redfin analysis defines luxury homes as those estimated to be in the top 5% of their respective metro area based on market value, and non-luxury homes were defined as those estimated to be in the 35th to 65th percentile based on market value.
The luxury housing market’s resilience in today’s chilled real estate environment is likely due to wealthy home buyers’ ability to buy with cash and avoid today’s 7% to 8% interest rates.
Almost 43% of luxury homes that sold in the third quarter were purchased in cash, up from nearly 35% a year earlier, according to Redfin. Contrast that with just 28% of all-cash purchases of non-luxury homes, which remains essentially unchanged from the third quarter of 2022.
“Wealthy home buyers have more tools to weather the storm of high mortgage rates,” said Jason Aleem, senior vice president of real estate operations for Redfin. “Many of them can afford to pay in cash, meaning they’re escaping high mortgage rates altogether.”
Aleem said other buyers are choosing to take on a higher rate and refinance down the road — “an expensive option that isn’t feasible for a lot of lower-income consumers.”
“Affluent Americans are still spending big, in large part because of pandemic savings and resilient housing and stock values,” he added.
The trend, however, may not last, according to Redfin chief economist Daryl Fairweather.
“While many luxury buyers have the resources to forge ahead even when mortgage rates are elevated, stubbornly high rates and home prices will likely push some affluent house hunters to the sidelines in the coming months,” he said. “High costs, along with the uptick in the number of high-end homes for sale, could cause luxury price growth to cool.”
For now, though, luxury inventory is holding up well compared to other segments of the housing market. The total supply of luxury homes for sale grew almost 3% from a year earlier compared with a record 20.8% decline in the supply of non luxury homes, Redfin reported. New luxury listings rose 0.3% while new non-luxury listings fell 22%
Luxury home sales are sluggish compared to last year, but they’re not as down compared to other homes. Luxury sales dropped 10.6% year over year compared to a 17% drop in non-luxury sales, according to Redfin.
Where luxury home sales jumped the most
In Tampa, Florida — home to many cash buyers — luxury home sales surged by almost 36% year over year, according to Redfin, the biggest increase in the country. Luxury new listings also rose almost 14% year over year in the third quarter, the biggest increase in every metro other than New York.
Next came Las Vegas (33.4%), Austin, Texas (14.5%), Sacramento, California, (10.1%) and San Francisco (9.6%).
“It’s an opportune time to be a cash buyer, and there are a lot of cash buyers in Florida,” said Eric Auciello, Redfin Tampa sales manager. “We’re still seeing many affluent house hunters move in from the Northeast and West Coast because they want lower taxes, different politics and/or to be closer to family. Tampa also has a ton of new construction, a lot of which is high-end condos.”