- Zero Flux
- Posts
- Mom and Pop Investors Getting an Edge in the Housing Market
Mom and Pop Investors Getting an Edge in the Housing Market
More young adults now live with their parents than at any point since 1940 and 9 More Real Estate Insights
The Real Estate Professional’s Secret Weapon - Land id™
Discover extensive nationwide private parcel data, create & showcase powerful, shareable, interactive maps of any property: Fast, Easy and Mobile, with Land id™.
With the brand new streamlined Property Info Cards, Land id™ brings industry leading data and contextual layers to the forefront in a single tap or swipe.
Latest Rates
Loan Type | Rate | Daily Change | Wkly Change | 52-Wk Low/High |
---|---|---|---|---|
30 Yr. Fixed | 6.90% | +0.03% | +0.07% | 6.61/8.03 |
15 Yr. Fixed | 6.33% | +0.01% | +0.01% | 5.95/7.35 |
30 Yr. FHA | 6.36% | +0.03% | +0.07% | 6.00/7.44 |
30 Yr. Jumbo | 7.06% | +0.01% | +0.01% | 6.95/8.09 |
7/6 SOFR ARM | 7.58% | +0.99% | +0.99% | 6.11/7.58 |
30 Yr. VA | 6.37% | +0.02% | +0.07% | 6.02/7.46 |
New here? Join the newsletter (it's free).
Real Estate Trends
Profit Margins for U.S. Home Sellers Mostly Unchanged Despite Renewed Price Spike link
The median U.S. home price hit a record $365,000 in Q2 2024, boosting raw profits for sellers back over $130,000, yet profit margins remained mostly unchanged. This is due to the rising costs sellers faced when initially purchasing their homes.
Profit margins increased from Q1 2024 to Q2 2024 in 58.8% of metropolitan areas but were still down annually in 62.5% of these areas. Higher-end markets saw the most significant decline in profit margins year-over-year.
Despite a stable 55.8% profit margin on typical home sales, raw profits marked the highest since 2022, with notable increases in cities like Chicago and New York. However, cash sales declined slightly to 39.1% of all transactions in Q2 2024.
More young adults now live with their parents than at any point since 1940 link
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/2ffa12bf-0940-496e-8e7b-9d468699438d/image.png?t=1721884595)
Image
The share of 25-35 year-olds living with parents has doubled from 7% in 1970 to 17% in 2022, returning to levels not seen since the 1940s. This trend reflects a significant reversal from the mid-20th century when economic growth enabled more young adults to move out on their own.
Economic challenges, including declining incomes and rising housing costs, have made it financially difficult for young adults to afford living independently. In 2022, only 18% of young adults living with their parents had incomes that would allow them to comfortably afford local rent prices.
Image
Even among college graduates, the trend of living with parents is increasing, with 12% of 25-35 year-olds with degrees living at home in 2022, double the rate from 1980. The burden of student debt and high housing costs contribute to this trend, affecting even those with higher education.
Please note: I send an email most weekdays at 6:00 ET, so if you don’t see the email in your inbox in the future, please check your spam.
All-Cash Offers From Big Investors Recede, Giving Mom and Pops an Edge in the Housing Market
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/9e744984-65d3-4c78-aeb2-e5a5cefe1ae8/image.png?t=1721884265)
Image
The share of investors purchasing homes with cash fell to 64% in Q1 2024 from 69.7% in Q4 2021. This is the lowest share since 2008, easing competition for regular homebuyers.
Small investors now dominate the market, making up 62.6% of purchases in early 2024, the highest in history. This shift reduces artificial demand and upward pressure on prices.
Cities with the highest all-cash investor purchases include Portland-South Portland, ME (81.3%), Albuquerque, NM (81.2%), and Toledo, OH (80.5%). New York City saw 64.5% all-cash purchases, slightly above the national average.
Something I found Interesting
Second Great Resignation Could Emerge as Workers Seek Higher Pay, Remote Work link
Forty percent of fully in-person workers prefer a hybrid or fully remote work arrangement. This indicates a significant shift in workplace preferences, potentially driving another wave of resignations.
A ResumeBuilder.com survey found that 28% of workers plan to quit their jobs this year, mirroring the first Great Resignation. The trend is particularly strong among younger workers aged 18-34.
Job changes are seen as a faster way to increase salaries, especially for younger employees. Career strategist Julia Toothacre notes this group often switches jobs to find the best fit for their career goals and work environments.
Pro Member Only Content Below
Deep Dive: Per Harvard, U.S. Commercial Real Estate Is Headed Toward a Crisis, and This is Why
(This content is restricted to Pro Members only. Upgrade)
How Tech is Changing the Game for Commercial Real Estate Brokers
(This content is restricted to Pro Members only. Upgrade)
Indiana markets are indicative of the Midwest regional housing boom
(This content is restricted to Pro Members only. Upgrade)
Why a Foreclosure Wave Isn’t on the Horizon
(This content is restricted to Pro Members only. Upgrade)
This Semiconductor Hot Spot Is Seeing a Crazy Apartment Boom
(This content is restricted to Pro Members only. Upgrade)
Off Topic
America spends more money on dining out than it does on food at home
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/b8ce2457-22df-4058-b56b-08082842a7ee/image.png?t=1721897205)
Image
Unreal Real Estate
You are in for a surprise!
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/2983562d-cf83-45f8-aa13-92d57f2b4a6b/image.png?t=1721897532)
Image
It would mean a lot if you could reply and tell me which story you liked the most. 🙏
That's all, folks.
Cheers,
Vidit
P.S - Read past newsletters here
Referral Milestones
Discount | Referrals Needed |
---|---|
3 MONTHS FREE on the Pro Plan | 1 |
30% off FOREVER on the Pro Plan | 5 |
50% off FOREVER on the Pro Plan | 10 |
75% off FOREVER on the Pro Plan | 15 |
100% off FOREVER on the Pro Plan | 25 |
If you are finding value, please consider helping the newsletter by becoming a paying subscriber
A subscription gets you:
✓ More issues per week
✓ Special reports on new housing studies
✓ Exclusive insights that are usually tucked behind paywalls (which I cover the costs for)
✓ Curated Top 10 lists
✓ The latest updates on prop-tech funding rounds
Want to sponsor the newsletter? Details here
Reply