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Learn how to make money in real estate. We cover news, trends, styles, markets, demographics, and technology that affect real estate investing. We also talk to market leaders and trend setters. Lastly, there's a bit of how-to information on nearly every show, with topics, Q&A from listeners, and presentations from our guests. Learn how to make and grow a fortune in your spare time or as a new career.

Jun 24, 2019

FAR 261 We have that Stats

Opening:

How good is that professional athlete? Well, let’s take a look at his or her stats. What’s the batting average? What’s the shooting percentage? From 3-point range? Free Throws? What’s the yards per carry average. What’s the yards after contact average? What is the average air-speed velocity of an unladen swallow? Be the first person to write in or call with that movie reference and I’ll send you a Starbucks gift card. What’s your miles per gallon? How long is your average daily commute? On average, how many hours do you spend watching TV every day? Statistics are all around us all the time. Today I’m going to BLOW YOUR MIND with a complete set of real estate statistics.

Yes I studied statistics in college AND in graduate school. At the graduate level my statistics course, FED 790, was one of my favorite courses. Not so much because of the content, but because the professor was one of the most delightful persons I have ever met. He managed to make a drudgery topic into a class I looked forward to each week. That’s no small feat, because when you are digging deeply into research summaries looking for statistical significance, errors in math, illogical assumptions, blah blah blah. I won’t make you go through any of that pain today. In fact, you don’t even have to do the research. BUT - if you get a copy of the show notes, you will have clickable links for every stat I’m about to throw at you.

 

First let’s do the news!

News:

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Announcements:

  • Lunch with me every Wednesday. Baraonda
  • My latest article in Forbes is out. bit.ly/findredeals.
  • The FAN is here!
  • Would you like to invest in the Flipping America projects across the country? Coming soon you will be able to for as little as $100. That’s right, Flipping America is partnering with Ground Floor Funding to create a crowd-funded platform where you can invest in the deals we are doing here. The fund will pay out an 8% preferred rate of return and can go as high as 16%. You can make money with me, the Flipping America Guy.
  • Flipping America App is in the app store. You can listen to the show, read the show notes, and the entire catalog of shows is now available to you. It’s a free download and there are no upsells or in-app purchases. Free to download, free to listen. Go ahead and give it a try and drop me a line and let me know what you think.
  • Want a quick analytical tool to tell you how strong a potential fix and flip deal is? Download the Property Grade app. You answer 10 simple questions about the property and the app instantly tells you what you can expect to make, your return on investment, your return on cash, and then the program gives the project a letter grade using the proprietary Flipping America Investment Property Grade algorithm.  

 

Topic: Real Estate Statistics!

Between all of the different real estate terms, types of real estate, and people that make up each sector, the industry is pretty complicated. To keep things as simple as possible, we’ve divided up the following stats into relevant sections.

Residential real estate statistics

Residential is what most people think of when they hear the term real estate. It refers to the types of properties that people live on – those that are not intended to be used for anything business-related. This includes single and multi-family homes, as well as condos and townhouses.

  • As of April 2019, there have been roughly 673,000 houses sold in the US this year, which is 12.4 percent more than last year (U.S. Census Bureau, 2019).
  • 5.34 million existing homes were sold in 2018 (down from 5.51 million in 2017). (NAR, 2018)
  • The Midwest has the highest rates of homeownership in the nation at 68.2%, followed by the South at 66.2 percent (U.S. Census Bureau, 2019).
  • 64.8% of U.S. citizens were homeowners in the fourth quarter of 2018 (up from 64.2% in 2017). (United States Census Bureau, 2019)
  • 35.4%of homeowners are under 35 years of age. The age bracket with the highest rate of home ownership (78.5%) is 65 years and over (U.S. Census Bureau, 2019).
  • Madison, WI and Grand Rapids, MI are the two most popular cities for millennial movers (National Association of Realtors, 2019).
  • Based on buyer activity and active inventory, the hottest real estate markets in the country are in Boston, MA and Lafayette, IN (Realtor.com, 2019).
  • Nationwide, the average sale price of a luxury home fell 1.6% in 2019 (Redfin, 2019).
  • Across the US, the median price of a home is $267,300 (National Association of Realtors, 2019).
  • Fishers, IN and Carmel, IN top the list of best cities for families (Apartment List, 2019).
  • 36% of homeowners listed unexpected maintenance or repairs as their biggest regret (Zillow, 2019).
  • The least competitive housing markets in the country are Miami, Dallas, and Houston (Redfin, 2019).
  • The real estate industry will account for 22% of total commercial drone use by 2020 (Federal Aviation Administration, 2016).

Homebuyer statistics

Buying a home is no small feat. Below, you’ll find a few statistics specific to homebuyers.

Selling statistics

Selling a home can be just as big of a hurdle as buying one. From getting a property listed to setting up the open house, finding qualified buyers is a feat in and of itself.

  • Thursday is the best day to list a home. Properties listed on Thursday sell for $3,015 more than on Mondays, which are the worst days to list a home (Redfin, 2019).
  • On average, 98% of final sale prices matched the original asking price of a property in 2019 (Redfin, 2019).
  • This year, the median number of days that a property was on the market before an offer was accepted is 40 (Redfin, 2019).
  • 73%of sellers are more likely to list their home with an agent who leverages video to market their property (National Association of Realtors, 2018).
  • Staged homes sell 25% faster than non-staged homes (Coldwell Banker, 2019).

Rental statistics

Not everyone can afford to buy a home – that’s where renting comes in. Many residential properties are offered as rental units to tenants for non-commercial purposes.

  • Globally, the most expensive place to rent is San Francisco where the rent averages out at $3,690 (Zumper, 2019).
  • In 2019, Henderson, NV and Phoenix, AZ saw the fastest rent growth in the country with an increase of 4.5 and 4.1 percent, respectively (Apartment List, 2019).
  • Across the US, the cost of renting has gone up 66 percent (Realtor.com, 2019).
  • Troy, MI is ranked as the most affordable renting city for families (Apartment List, 2019).
  • Only 8 percent of homeowners regret purchasing a home instead of renting (Zillow, 2019).

Real estate demographic statistics

It may seem like millennials are abandoning home buying in favor of renting, but these stats prove that that may not be the case.

Real estate financing statistics

As student loans continue to ensnare the population into a collective $1.7 trillion debt, real estate financing has been impacted.

Notably, home values are increasing while millions of Americans are spending more than 50% of their earnings on their home purchase.

Real estate marketing statistics

Real estate agents understand the benefits of a good marketing plan. The majority of agents are using their budget for marketing efforts in 2019 in the hopes of gaining better leads.

Real estate agent statistics

A real estate agent or broker is a professional that is licensed to sell property in their state. The business of buying and selling properties can be incredibly lucrative but doesn’t come without its difficulties.

  • 49% of agents report working 40 or more hours per week, while 22% report working less than 30 hours (Placester, 2019).
  • The largest expense for working real estate agents is transportation at around $1,370 per year (National Association of Realtors, 2019).
  • Agents earned 17%of their business from referrals, and only 13% from returning clients (National Association of Realtors, 2019).
  • 62% of agents spend at least one hour a day on marketing (Placester, 2019).

TIP: Getting your titles mixed up? Learn the difference between a real estate broker vs agent.

Commercial real estate statistics

Commercial real estate refers to non-residential property that serves to generate income. This includes shopping malls, hotels, and office spaces.

  • In 2019, the average commercial real estate sale was $1.2 million (National Association of Realtors, 2019).
  • The total dollar volume of commercial sales in the US has decreased since 2018. In the large market (sales greater than $2.5M), sales decreased by 11%. In the small market (sales less than $2.5M), the decrease was closer to 8 percent (National Association of Realtors, 2019).
  • Toledo, OH and Syracuse, NY have the highest rental vacancy rates in the country at 18.1% and 17.9%, respectively (National Association of Realtors, 2019).
  • Based on annual rent, 5th Avenue in New York City has the most expensive retail rates in the world (Statista, 2019).
  • With an average cost of $255.50 per square foot, Hong Kong is the most expensive city in the world for renting office space (Statista, 2019).

 

Your Questions: Send emails to questions@rogerblankenship.com

  • Nikhil, Atlanta, GA, “Good morning. I was listening to a recorded show of FlippingAmerica. I am new to this business and getting organized before I can actively wholesale or rehab. You mentioned that you have some spreadsheet that you can share that estimates the cost of rehab. Could you please share the details?”

Comment Line calls and Questions

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Motivational Thoughts for the day

“The dog that chases 5 rabbits catches none."
-Gordon Catts