Real estate is a complex, exciting, and potentially profitable industry. Whether you are a real estate agent, investor, or buyer, understanding the market is key to your success. Join us below as we review some key figures and real estate facts impacting the 2021 market, along with some interesting real estate facts you may not know!
Interesting Real Estate Facts for the 2020-2021 Market
Investing in real estate is a potentially lucrative business and many plan to make the most of early 2021’s low mortgage rates. However, whether you invest in buying to flip or buying to rent, location and price are vital. Check out these real estate facts below!
Statistics and Real Estate Facts
- According to Dodge Data & Analytics, the value of multi-family and commercial construction starts in the top 20 metro areas lost 23% in 2020.
- According to the US Census Bureau, renter-occupied housing units made up 30.4% of the inventory in the fourth quarter of 2020.
- In 2019, the United States had over 43 million renter-occupied homes. This number has been steadily rising since 1975.
- The US Census Bureau reports that individual real estate investors own over 74% of rental properties.
- Over 30% of millennials view a garage as unnecessary. (Born2Invest)
- The revenue of the US property management industry reached an unprecedented 88.4 billion U.S. dollars in 2020.
- Investing in smart home technology is worth it! According to a survey by Venturebeat, 63% of individuals want smart home security and climate controls, while 58% would appreciate smart lighting options.
- Research from the National Association of Realtors indicates that nearly 80% of buyers believe that neighborhood quality is more important than square footage.
Market Insight and Real Estate Facts
- The New York Post reports that more and more Americans spend over half of their income on housing, sharply highlighting the nation’s affordability crisis.
- S. home prices hit a record high in 2020, topping off at just above $320,000. (The Mortgage Reports)
- According to popular site Zillow, home values across the US have increased 7.2% since 2018.
- Zillow surveyed several economists and real estate experts across the US to find that around 14% expect a recession in 2021.
- The short-term rental market is booming! Boasting an average nightly rent of $217, or considerably more in popular tourist spots, experts expect continued growth in the years to come.
- According to Zillow, the hottest real estate market for 2021 is Austin, Texas. However, keep an eye on Henderson, NV, which is also seeing great growth rates.
- With low inventory and sky-high prices, San Francisco is the nation’s most expensive rental market, according to Zumpter.
- The strongest markets for buyers according to Redfin are Dallas, Houston, and Miami with the lowest numbers of competitive bids for houses.
Fun and Bizarre Real Estate Facts
Iconic Landmark or Real Estate Billboard?
The Hollywood sign, synonymous with glitz and glamor, is one of the world’s most recognizable images. The sign itself and meaning have changed through the years. However, in 1923 when the “Hollywoodland” sign was erected, it was actually an ad campaign for real estate development. The LA Times reported in June of 1923 that the real estate development effort employed over 200 men with an estimated 300,000 cubic yards of dirt moved to make way for new homes in the Hollywood Hills.
The Deal of a Lifetime
In 1876, the United States paid Russia $7.2 million for 375 million acres, or what we now know as Alaska. That breaks down to just $52.08 per acre! Even in today’s market, that was a steal considering the wealth of oil deposits discovered in recent decades.
Seeing Red? Congratulations are in Order!
Paying off a home mortgage is a celebratory feat in any country around the world. However, homeowners in Scotland celebrate uniquely; by painting their doors red. So, if you are lucky enough to travel to Edinburgh, be on the lookout for the hardworking owners who achieved this goal!
Home a Bit Dated? Just Tear it Down
Looking for a fixer-upper with vintage charm in Japan? Good luck! The popular prefabricated homes in Japan depreciate over time and have a lifespan of around 30 years. So, the typical protocol when someone moves out or dies is to tear down and rebuild. This unique real estate trend is mainly due to low-quality construction servicing high demand, poor maintenance, and constant building code revisions.
Add the Ghostbusters to Your Speed Dial
Some haunted locations draw people in while simultaneously sending others running for the hills. That said, if you are selling a haunted home in New York State, be prepared to sign a separate disclosure statement. In what has become known as the “Ghostbuster Ruling,” this NY Supreme Court decision in the case of Stambovsky v. Ackley compels sellers of real property to disclosure if they believe the property is haunted. Spooky!
The Paperclip House
As home prices across the US sore, just imagine buying a home with a paperclip, yes, a paperclip! Kyle McDonald, a Canadian blogger, did just that after making 14 trades over 12 months on his way to a whole house! Kyle’s stellar and ingenious bargaining skills earned him worldwide notoriety in addition to the house in Saskatchewan.
A Truly One-of-a-Kind Apartment
Few places boast romantic allure like Paris, France. Yet, how many of the millions of visitors to the Eiffel Tower realize it was once someone’s home? The treasured landmark designer, Gustov Eiffel, actually built and maintained ownership of a secret apartment in the tower. Over the years, many notable people offered Gustov thousands to spend just one night there, which he refused. Instead, only invited guests, such as Nikola Tesla, got the inside tour. Now the not-so-secret hideaway is open for public tours.
There is Such a Thing as Too Much Pizza
In a quiet neighborhood in Albuquerque, NM, is the iconic home from AMC’s hit show Breaking Bad. In one scene, the character Walter White tosses a pizza onto the roof. Apparently, fans often recreate this on the actual home, much to the current owners’ dismay. In 2015 they told NPR, “We’ve removed close to 200 pizzas from our property in the last year and a half. That is too many pizzas.”
“I’ll be Back” … to Collect the Rent?
Actor and former governor of California, Arnold Schwarzenegger is known for many things, but the landlord does not usually come to mind. Arnold put his business and economics studies to good use by investing his bodybuilding winnings in multi-family buildings near Madison, WI. So, by the time he graduated from the University of Wisconsin, he was already a millionaire. Imagine having the Kindergarten Cop as your landlord, pretty cool!
The Sun Sets Twice in Dubai
In 2004, construction began on the Burj Khalifa in Dubai. Towering 2,722 feet above the streets below, the Burj Khalifa holds a combination of business offices, private residences, and hotel accommodations. That said, lucky and quick visitors can take advantage of more than just the beautiful views from the two observation decks. This is a rare place where you can see the sunset twice! Once from the ground, and after a quick trip to the top, watch it slip over the horizon one more time!
These real estate facts tell us that the market can be a crazy and unexpected place. Thankfully, the property management experts at Bay Property Management Group are ready for whatever circumstances arise.
Our team of experienced managers and leasing professionals handle your rental business’s daily operations, which frees up valuable time for owners. So, whether you have a secret apartment in an iconic landmark or a portfolio of single-family homes, give us a call today to see how full-service rental management can take your business to the next level.