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Real Estate Marketing

Home prices are rising faster than wages in 80% of U.S. markets

Climbing home prices and less than significant increases in wage growth have contributed to renting becoming a more affordable option for Americans, according to ATTOM Data Solutions' latest Rental Affordability Report. In 59% of U.S. metros studied, renting a three-bedroom property is less expensive than purchasing a median-priced home. That’s a whopping 442 out of the 755 counties, according to the report. Notably, ATTOM discovered that renting is also a more affordable option in 18 of the nation’s most populated counties and 93% of counties with a population consisting of more than 1 million people. “With home price appreciation increasing annually at an average of 6.7% in those counties analyzed for this report and rental rates increasing an average of 3.5%, coupled with the fact that home prices are outpacing wages in 80% of the counties, renting a home is clearly becoming the more attractive option in this volatile housing market,” ATTOM Data Solutions Director of Content Jennifer von Pohlmann said. In fact, median home prices increased at a faster pace than average weekly wages in 601 of the 755 counties analyzed in its report. Furthermore, home prices outpaced rents in 70% of housing markets, and median home prices rose faster than average fair market rents in 531 counties, according to ATTOM. That being said, 76% of the 469 counties analyzed in ATTOM's Home Affordability Report posted an affordability index below 100 in Q4 of 2018, according to ATTOM’s analysis. “With rental affordability outpacing home affordability in the majority of U.S. housing markets, and home prices rising faster than rental rates, the American dream of owning a home, may be just that — a dream,” Pohlmann concluded. NOTE: The Rental Affordability Report analyzes average rental data for three-bedroom properties in 2018 and early 2019 from the U.S. Department of Housing and Urban Development, along with wage data from the Bureau of Labor Statistics.

Understanding How Millennials Respond To Your Marketing Efforts

How do you market to a generation that lives and works differently than any other generation before it? That’s the challenge that digital marketers are currently facing when it comes to grabbing the attention of the generation known as Gen Y, the selfie generation, the always-on generation or, the term most commonly used, millennials. Here’s what we know about millennials. Millennials are expected to be America's largest generation by 2019, which means they make up a fair share of the marketing audience. Millennials shop differently than past generations. The millennial generation knows how to take advantage of technology to get the best quality for the best price. I’ve also learned that millennials are social media mavens. When they have a great experience with a product or service, they’re happy to let their peers know about it on social media. Millennials have caught on to the idea that most stores will price match, so they have come to expect it. Businesses that actively support and promote a greener economy will get millennials to take a breather from scrolling and learn more about what the company has to offer.

Home price growth slows in most states

The latest data from Black Knight reveals that home price growth has slowed in 33 states and in 71 of the nation’s 100 largest markets. Annual gains decelerated by 1.3% from February to October, according to Black Knight’s latest Mortgage Monitor report. October saw growth flatten to just 0.01%, down significantly from February’s four-year high of 6.7%. (See map below for nationwide declines in home price appreciation; click to enlarge.) The report notes that home price appreciation from July through October was the most tepid four-month stretch in nearly four years. And, while the slowdown is apparent across much of the nation, the west saw the most deceleration, with California the standout as price growth fell below the national average for the first time since early 2012. In February, home prices in California were up 10%, but fell to less than 5% by October, a trend Black Knight said is likely driven by lack of affordability. Washington saw similar declines, falling from February’s 12.4% to 7.5% in October. Now, Nevada, Idaho and Utah have the highest appreciation rates in the nation, with home prices in all three states up at least 10% from last year, while the majority of states have seen growth in the 5-8% range over the last year. (See map below for annual home price appreciation nationwide; click to enlarge.)

How Instagram Analytics Can Help Boost ROI in 2019

To help you strategize for 2019, we’re looking at three key Instagram analytics that can help you improve and develop your overall marketing strategy and drive more traffic your business. Engagement rates Knowing what kind of Instagram content resonates best with your audience could help you plan your content calendar and marketing strategy for the future. There’s no hard-and-fast rule when it comes to measuring your engagement rate, but most marketers will agree that it’s usually based around this calculation: divide the total number of likes and comments by your follower count, which will give you a percentage. Or you can use tools or apps dedicated to deciphering your Instagram Analytics, which will automatically calculate your engagement rate for each post so you can get a snapshot of what content ranks top of the list month after month. Your exposure on Instagram is linked to your post’s engagement levels. By paying particular attention to your engagement rate and the content themes that performed the best, you’ll find strong indicators from your target audience of where you should be investing your time, energy and budget. But with Instagram Analytics, you can focus on your click-through rate and the effectiveness of your link placement with Instagram Stories’ swipe-up feature and your link in bio if you want to drive traffic to your business’ site. Small changes to how you present your bio link will help drive your audience from your Instagram feed to your business website, where they can get more information, make a purchase or browse your brand in more detail. Monitoring the click-through rates of your Instagram Stories helps determine what content works best for driving sales to your website. By focusing on identifying your audience’s behavior patterns, gathering customer feedback and pinpointing what content resonates most with your followers, you’ll be armed with the best information to strategically invest in the future.

How Social Media Is Being Used to Sell Real Estate

Millennials now make up 66 percent of the market for first-time homebuyers, and 99 percent of those looking for homes use the internet to research properties. House hunters are now including property-related hashtags and social media feeds in their searches, and that’s only the tip of the iceberg. 86 percent of home shoppers say they would use video to learn more about a specific community they are considering. How does a home seller use social media platforms like Instagram or Snapchat to move real estate? 69 percent of real estate agents use Facebook because it works. Chances are, it may resonate with a buyer. When 300 hours of video are uploaded to YouTube every minute, it’s essential to create content that differentiates you from the rest of the real estate crowd. This is great for experimenting with different hashtags, captions or photography styles. Make sure to max out your hashtags (you can have up to 30) to tap into that ever-expanding community. You never know when a potential homebuyer may be scrolling through your feed.

Renters paid more for housing in 2018 than they ever have before

According to a new report from HotPads, U.S. renters paid a record $504.4 billion in rent in 2018, topping 2017’s total by $12.6 billion. According to the report, there were approximately 43.2 million renter households in the U.S. this year, nearly 100,000 less than there were in 2017. But despite that decrease, renters still paid out a record high total in rent in 2018, more than the entire GDP of Belgium ($494.7 billion), as rents rose throughout the year. According to the HotPads report, the current median rent is $1,475, up 3% from a year ago. In fact, the total rent increased year-over-year in nearly every major market included in HotPads report, with only Pittsburgh, Pennsylvania; Austin, Texas; and Oklahoma City, Oklahoma showing yearly declines in total rent paid out. Of the 50 largest metro areas in the U.S., renters in the New York City metro area spent the most on rent this year – a total of $55.6 billion, which represents more than 10% of the entire national total. Other markets are still seeing hefty increases, especially those in the Southeast and Southwest. And with rents forecasted to continue growing in 2019, driven by higher mortgage interest rates likely keeping some renters from becoming buyers, that total will likely increase next year. “After several years of a booming economy, more Millennials became financially able to become home owners in 2018,” Joshua Clark, economist at HotPads, said. “However, rent affordability continues to be a challenge, as those who still rent are paying even higher prices now than they were a year ago,” Clark continued.

Homelessness accelerates in expensive rental markets

As more and more Americans become rent burdened, the homeless rates in the nation’s most unaffordable markets continue to grow, according to the latest data from Zillow. According to the company, a renter earning the median U.S. income of $61,240 and renting the median-priced apartment of $1,442 is expected to spend about 28% of their income on rent, increasing from the historical norm of 26%. (Image courtesy of Zillow, click to enlarge) Notably, when the rent burden increases by 2 percentage points, Zillow points out that about 1,500 more people are driven to homelessness. Zillow gathered this data in collaboration with researchers at the University of New Hampshire, Boston University School of Social Work and the University of Pennsylvania. The data reveals that the effects of a larger rent burden are “more extreme” in markets where renters are already spending more than 32% of their income. Zillow Director of Economic Research and Outreach Skylar Olsen said although the nation’s homelessness rate has fallen, some communities still grapple with affordability. In these areas, the median market rate rent consumes 62.9% of the area's median household income. Notably, this cluster is home to 15.1% of the total U.S. population but hosts a whopping 47.3% of the nation's homeless population. “But there are similarities that can be identified, even among communities of wildly varying sizes and locations, and learnings to be shared." You can read more about the report here.

Redfin: Homes keep getting cheaper

In October home sale prices climbed 4.5%, however the percentage of listings that had a price drop of more than 1% reached an 8-year high, according to new data from Redfin. This October, home sale prices reached a median of $297,200, increasing 2.4% from the previous month, Redfin explained. Redfin also reported that 32 of the 71 largest metro areas saw home price increase from September, attributing this growth to home sales shifting to more expensive areas, rather than individual homes increasing in value. “Some homebuyers are adjusting their price range down, and others are backing out of home-buying entirely–deciding that renting is a better deal." “Sellers are now realizing buyer demand isn’t what it used to be and are dropping their prices. Notably, the number of homes for sale increased 1.3% from 2017, reaching the highest level of inventory growth since September 2015. The U.S. Census Bureau announced that residential construction spending was at a seasonally adjusted annual rate of $556.4 billion in September, 0.6% above the revised August estimate of $553 billion. Fairweather said that for the remainder of 2018, Redfin will examine how the California wildfires impact national housing market trends. “The fact is that rising mortgage rates and high home prices have a bigger long-term effect on the local housing market than the fires’ destruction.” As of today, the most recent California wildfires have claimed the lives of 63 people and destroyed more than 135,000 acres. You can read more about the devastation here.

Four Easy Ways To Grow Your Business With LinkedIn

Target specific, professional audiences and decision makers. LinkedIn’s advertising capabilities allow you to use filters like industry, company size and job title to target specific types of individuals -- ideally, the individuals most likely to engage with your brand, service, product or message. LinkedIn recommends targeting audiences of at least 50,000 people for sponsored content and text ads, and at least 15,000 for sponsored InMail. With this, you can promote your articles, e-books and other forms of digital content to LinkedIn users directly. To get the most traction from you sponsored content, you should: • Use the targeting features, such as skills and job titles, to show your content to the types of professionals you want to reach, rather than a general audience. These ads allow you to increase the visibility of your company’s offers, which can (ultimately) lead to more business. This is a win for marketers since lead data is likely accurate and high quality, and it is a win for users because now they don’t have to spend the time filling out all the fields in a contact form. I’ve found LinkedIn to be an ideal place to source new employees for two reasons. The first reason is you’re able to reach the exact types of professionals you need by using the targeting options mentioned earlier, including job title, experience level and skill set. It’s an ever-growing network that’s helping all types of businesses win in their industries.

Are rent prices cooling off?

A new rent price report from apartment search site Abodo says that rental rates nationwide are stabilizing. The monthly report, released Thursday, showed that median prices for one-bedroom units throughout the U.S. fell a “statistically insignificant” .08% from October to November this year. The median price for two-bedrooms fell .24%, according to the report. As far as two-bedroom units go, the rent market of Scottsdale, Arizona, led with a 6.2% increase; city's a median rent was $2,676. The market that saw the largest decline? Cleveland, with a 11.8% loss for November, saw rent drop to $751 from $851, according to the report. Abodo added that it sees this deflating trend for rents increasing through December and the end of the year. From the report: As we had mentioned last month, we thought that rents, though they might fall, would not drop dramatically in November and this has verified. While a few cities showed significant swings, November was basically flat, and we see that trend continuing into December. With competing factors at work, however, we still feel that December will not show broad national average median rent changes.

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Rental Rates on the Rise

Much like the housing market, the rental sector is showing no signs of a slowdown. According to the most recent CoreLogic numbers, which show that U.S. single-family rents were up 2.9 percent year-over-year in April, among some other noteworthy data points. This April’s 2.9 percent year-over-year increase is a 1.3-percent drop in the growth rate since the 4.2 percent peak, it notes. Low-end rental homes—properties with rents 75 percent or less of a region’s median rent—buoyed the index’s overall growth in April, SFRI says. On the other hand, rents for higher-priced dwellings—properties with rents exceeding 125 percent of the regional median rent—skipped ahead 2.7 percent year over year, the report shows. High-end rent growth tracked 1.1 percentage points higher than it did in April 2017, while low-end rent growth was 0.2 percentage points lower than April 2017. Growth also differed considerably across metropolitan areas. Las Vegas posted the highest year-over-year growth in April, at 5.9 percent, trailed by Phoenix (5.5 percent) and Orlando (5.3 percent). Both cities realized robust year-over-year job growth that month, inking gains of 2.8 percent and 3.2 percent, respectively. Honolulu was the sole metro among the 20 assessed to display a dip in the rent index, falling 0.3 percent year over year in April.