Real estate is a complex, exciting, and potentially profitable industry. Understanding the market is key to your success whether you are a real estate agent, investor, or buyer. Join us below as we review some key figures and market statistics for investors. Find out what’s impacting the 2023 market and some interesting real estate facts you may not know!
Interesting Market Statistics for Investors in 2022
Investing in real estate is a potentially lucrative business, and many made the most of 2021’s low mortgage rates. However, many market factors changed throughout 2022. That said, location and price are vital whether you invest in buying to flip or buying to rent. So, check out these real estate facts and market statistics for investors below!
Rental Statistics and Real Estate Investing Facts
- Over 45% of renters pay rent equal to 30% or more of their gross household income. (Pew Research Center)
- According to Rent.com, over 44 million housing units in the U.S. are renter-occupied. Additionally, 42% of renters live in single-family homes.
- The number of renters above the age of 60 increased by 43% between 2007 and 2017. More retiring baby boomers choose to rent rather than buy new homes to downsize. (RENTCafe)
- More versatile homes are preferred by renters and homebuyers post-pandemic. Most people look for more space, quiet locations, and larger floor plans. (Realtor.com)
- The U.S. Census Bureau reports that individual real estate investors own over 74% of rental properties.
- Research from the National Association of Realtors indicates that nearly 80% of buyers believe that neighborhood quality is more important than square footage.
- The median rental asking price in the fourth quarter of 2021 was $1,207, according to the U.S. Census Bureau.
- 42% of home buyers think real estate is a better investment than stocks. (NAR)
Market Insight and Real Estate Facts
- According to Redfin, in 2021, the median days on the market before an offer was accepted was 27.5 days.
- For Sale by Owner (FSBO) properties accounted for 7% of home sales in 2020. (NAR)
- According to Forbes, student loans represent $1.7 trillion in debt, impacting the ability of younger adults to buy homes.
- 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.
- On average, homebuyers look at around nine homes before making a purchase. (National Association of Realtors)
- According to the U.S. Census Bureau, vacant for-sale units had a median asking price of $239,000 in the fourth quarter of 2021.
- As of October 2022, the average home in the U.S. is around $357,810. (Zillow)
- Over 30% of millennials view a garage as unnecessary. (Born2Invest)
Rental Property Management Facts
- According to iPropertyManagement, the property management industry employs around 910,000 workers, including self-employed managers.
- U.S. property management generates around $99.449 billion in annual revenue and is expected to grow. (iPropertyManagment)
- According to Rentals.com, smart technology, pet accommodations, privacy, and accessibility are amenities that drive rentals and increase ROI.
- According to iPropertyManagement, there are as many as 326,000 property management companies registered in the United States.
- Remodeling spending is expected to reach $400 billion by Q3 of 2022, with annual improvement and repair spending growing by 9% year-over-year. (JSHC Harvard)
- Most common property management services include maintenance, repairs, rent collection, leasing, marketing, property inspections, and evictions. (iPropertyManagement)
- According to Real Property Management, a balcony can increase an apartment’s value by around 12%.
- 45% of landlords manage their own properties. (TrueList)
What Can Rental Investors Expect in 2023?
Now that we’ve gone over some 2022 market statistics for investors, you may wonder what to expect in 2023. Don’t worry; we’ve compiled a list of trends you and your Northern Virginia property managers can expect for the year ahead.
- Inflation, excessive demand, and inadequate supply will continue to drive real estate prices. (Norada Real Estate)
- Technology advancements will continue to be a main driving force in the real estate industry, from identifying profitable investments to managing rental properties. (com)
- Demand for vacation rentals will remain strong and steady, according to Mashvisor.
- By 2023, short-term rentals should re-establish their position as a more profitable investment strategy than traditional, long-term rentals. (com)
- Rental demand will remain strong due to rising homeownership costs, according to com’s chief economist, Danielle Hale.
- According to a Federal Reserve Bank of Dallas forecast, rental price growth will rise from 5.8% to 8.4% from June 2022 to May 2023.
Fun and Bizarre Real Estate Facts
The real estate industry isn’t all statistics and serious topics. There are tons of fun, bizarre real estate facts to learn about while researching properties and locations. So, here are some real estate stories and facts we find most interesting.
- Iconic Landmark or Real Estate Billboard?
- The Deal of a Lifetime
- Seeing Red? Congratulations are in Order!
- Home a Bit Dated? Just Tear it Down
- Add the Ghostbusters to Your Speed Dial
- The Paperclip House
- The Sun Sets Twice in Dubai
Iconic Landmark or Real Estate Billboard?
The Hollywood sign, synonymous with glitz and glamor, is one of the world’s most recognizable images. That said, the sign itself and its 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 worldwide. 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. If you sell 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 N.Y. 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 U.S. soar, 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!
Why Is Property Management Important for Your Business?
These market statistics for investors and real estate facts tell us that the market can be a crazy and unexpected place. But 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.