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Rent remains high, but more properties offer incentives

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New construction surge prompts landlords and property managers to provide more perks

SEATTLE /PRNewswire/ — Rental concessions—offers meant to entice tenants, such as free months of rent or free parking—are at their highest level in more than two years despite strong renter demand, Zillow’s latest data shows. That’s because property managers are now likely competing for tenants, as new, primarily upscale buildings from the recent construction boom enter the rental market.

About 30% of rental listings on Zillow advertised concessions in October, a surge that signifies a notable shift in the rental market. Within the past five years, concessions reached a peak in February 2021, with 36.7% of rentals offering incentives, coinciding with low renter demand during the pandemic. Those concessions then dropped as far as 19.4% in July 2022. However, the current rise comes as typical rent prices are nearly 30% higher than pre-pandemic levels, and annual rent growth just ticked back up after nearly two years of slowing down.

“The pandemic era’s increase in concessions was a direct response to decreased renter demand. Currently, we’re witnessing a different scenario where the demand for rental housing is high, but there’s been a notable rise in supply,” said Anushna Prakash, an economic research data scientist at Zillow. “To differentiate themselves from newer, potentially more amenity-rich apartment buildings, property managers are stepping up their game, offering more incentives to attract potential renters with a broader range of choices.”

Nationwide increase in concessions
Zillow data shows an astonishing 43 of the nation’s largest 50 metropolitan areas have seen a rise in rental concessions compared to last year. The most deal sweeteners are found in Salt Lake City, Utah, and San Jose, California, where more than half the rentals listed on Zillow in October advertised concessions.

Construction boom and its effects
This trend is especially pronounced in metro areas experiencing a construction boom. According to Fannie Mae’s Mid-2023 Multifamily Construction Update, markets such as Washington, D.C., Dallas and Austin are seeing more new developments, with Dallas and Austin having 74,000 and 66,000 new units, respectively, either recently completed or underway .

Zillow’s data reveals a similar upswing in concessions in those metros and others, including Phoenix and Atlanta, which are also among the top markets for new multifamily construction. This correlation highlights how the influx of new apartments is likely prompting housing providers to offer incentives to attract renters.

10 Metro Areas with the Largest Share of Rental Concessions

MetroShare of Rentals
w/Concessions
Year over Year
(YoY) Change in
Share of
Concessions
Typical Rent in
Zillow Observed
Rent Index (ZORI)
YoY Change in
ZORI
Salt Lake City, UT54.4 %26.5 %$1,6770.7 %
San Jose, CA50.8 %6.3 %$3,2600.2 %
Washington, DC49.6 %-1.2 %$2,3083.9 %
Charlotte, NC47.6 %20.5 %$1,8262.4 %
Minneapolis, MN46.8 %3.4 %$1,6472.7 %
Dallas, TX45.9 %17.4 %$1,8030.6 %
Phoenix, AZ45.1 %10.1 %$1,9020.6 %
Austin, TX44.8 %13.4 %$1,813-2.8 %
Nashville, TN43.8 %8.1 %$1,8960.9 %
Atlanta, GA43.5 %15.2 %$1,9250.4 %

Source: Zillow data

Diverse concession strategies across metros
Conversely, metro areas such as New Orleans (9%), Providence (14%), Miami (14%) and New York (15%) observed the lowest concession rates in October. This varied landscape suggests that property managers across the country are exploring different strategies as they gauge the effectiveness of concessions before potentially adjusting rental prices.

Zillow’s research, echoing the sentiments of economists and housing experts, highlights the fact that new construction and zoning reform are pivotal in enhancing housing affordability. The current trend in concessions, likely fueled by the spike in multifamily construction, is an interesting twist in the quest for affordability. It remains to be seen if the rise in concessions will translate to a significant drop in rent growth.

Zillow provides a clear and user-friendly platform for both housing providers and renters. Property managers can easily list concessions for their properties, while renters can find all available offers under the “Special Offers” tab on participating building detail pages, enabling them to make well-informed housing decisions.

About Zillow Group
Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, great partners, and easier buying, selling, financing and renting experiences.

Zillow Group’s affiliates, subsidiaries and brands include Zillow®; Zillow Premier Agent®; Zillow Home Loans℠; Trulia®; Out East®; StreetEasy®; HotPads®; ShowingTime+℠; and Spruce®.

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2023 MFTB Holdco, Inc., a Zillow affiliate.

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Consumer Corner

5 Home Updates to Provide Peace of Mind for Your Family

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(Family Features) Home improvement projects often focus on updating the aesthetic of your house, but upgrades that make your living space more secure and comfortable for you and your family are sometimes even more important.

From your front door to the interior of your home and more, these ideas from the experts at Masonite, a global industry leader in interior and exterior doors, can help provide greater peace of mind – ensuring what matters most is always protected.

Ensure Your Home is Well-Lit
A well-lit home exterior makes it easier to spot potential threats and may even deter people and animals that don’t belong on your property. Automatic outdoor lighting, either set to a timer or triggered by motion or light sensors, can help you see what’s going on outside. Ensure fixtures on your porch, patio and garage are in good working order and replace burned out bulbs or lights that no longer function. Adding landscape lighting can also aid in security while boosting curb appeal.

Protect Your Home with a Secure Front Door
Upgrading your front door can do much more than just improve the look of your home – it’s also an important part of providing enhanced security for you and your family. With four times more impact resistance than a standard deadbolt lock, the M-Protect Multi-Point Security Lock offers homeowners unmatched protection to keep what matters most safe. The lock works like a standard deadbolt, but with more points of contact, and it is compatible with a wide array of handle sets and hardware, including electronic deadbolts. It can be added to any Masonite Performance Door System – an innovative solution that provides superior energy efficiency, performance and comfort – which is available in a diverse range of finishes, colors and glass styles to fit any home design.

Reduce Fire Hazards
Many elements of a home like furnaces, chimneys, hot water heaters and other gas appliances provide value to homeowners through comfort and convenience but can pose risks without proper maintenance. Hiring a professional to check your heating and air conditioning system annually can help you avoid costly repairs while also protecting your loved ones. Keeping the chimney clean of debris, creosote and soot helps lower fire risk and ensures smoke, carbon dioxide and other gases are safely carried out of the home.

Control Home Systems On the Go
Installing security systems, doorbells, lighting and other systems that can be controlled from a smartphone app, like the Masonite M-Pwr Smart Door, can provide added convenience and peace of mind. You can remotely turn lights on and off, unlock doors, change the temperature, open or close garage doors and check camera feeds while away.

Replace Smoke and Carbon Monoxide Detectors
A simple project to make your home safer, it’s essential to check your smoke detectors regularly and replace the batteries every six months. If you discover the date of manufacture on the back of your smoke detectors is more than 10 years ago, replacement is recommended by the National Fire Protection Association. While checking your smoke detectors, test or install carbon monoxide alarms to ensure you have a way to detect the invisible, odorless gas that can cause serious health problems if left unchecked.

Visit Masonite.com/mprotect to learn more about the latest innovations in home security.


SOURCE:
Masonite

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financial wellness

Moving Season Security: 6 solutions to safeguard valuables

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(Family Features) It’s moving season, which means packing up valuables like tech devices, family heirlooms, jewelry and beyond and trusting they’ll make it safely to your new space. Ensuring a new home or apartment is properly secured is top of mind for many homeowners and renters, for both their personal safety and their most prized possessions.

After moving into a new space, there’s an immediate need to keep valuables and important documents organized and secure in case of theft, fire or flood. Whether or not a large security system is available on-site, Master Lock and SentrySafe’s DIY security and safety solutions equip your home with an extra line of defense and provide new homeowners and renters confidence.

To discover which security and safe storage solutions are right for you, visit MasterLock.com and SentrySafe.com.

Bar the Door

Designed with customer feedback in mind, the Master Lock 270D Folding Door Bar is a reliable, on-the-go solution that’s perfect for securing entry doors during a move-in transition. It offers an updated design from the original – now more compact with a quick-release foldable design for ultimate convenience and portability. Folding to just 16.5 inches and extending up to 43.5 inches, it’s small enough to fit in a backpack but strong enough to prevent forced entry on hinged, patio and sliding doors due to the pivoting rubber grips.

Keep Your Property Secure

Ideal for property access control, the Master Lock 5480D Portable Lock Box is the newest lock box and features expanded storage capacity to accommodate keys, fobs and cards, ensuring safety and convenience when accessing a home or apartment. The dials on the lock box are easy to read and grip, providing smooth operation. Built to last, the solid metal body with a rubber bumper protects against tampering while safeguarding surfaces from scratches and damage.

Turn to a Timeless Security Device

Keeping valuables secure can start with a tried-and-true classic solution. The discus-shaped Master Lock 40DPF Padlock features a wide stainless-steel body for maximum strength, reliability and corrosion resistance. With a fully shrouded design that minimizes shackle exposure to protect against bolt cutters, this versatile security device can be used for a wide range of applications. Extend the security of your valuables during a move by using it on self-storage units and lockers, trailers, vans and moving trucks.

Fireproof and Protect Valuables at Home

Consider the SentrySafe FPW082HTC Fireproof and Waterproof Safe as your go-to line of defense against fire, water and theft with .81 cubic feet of storage. Weighing roughly 55 pounds, this best-in-class fire and water protection solution features 1-hour UL-certified fire resistance at 1,700 F and ETL-verified protection in up to 5 inches of water for 24 hours. This first-of-its-kind safe with Master Lock security built-in technology offers an advanced, multi-point protection system that effectively resists physical attacks and lock manipulation while its pry-resistant hinge bar in the safe door protects against theft attempts.

Safeguard Documents and Files

Provide yourself an extra line of defense with the SentrySafe FHW40100 Digital Fireproof/Waterproof File Safe that safeguards important documents and records with a durable design and peril protection. Built to hold hanging file folders for easy organization, the safe can be easily transported with its convenient carrying handle when moving into a new home or apartment. It’s UL-classified to offer 30 minutes of certified fire resistance at 1,550 F and ETL-verified to protect documents and digital media in the event of a flood for up to 72 hours.

Opt for Renter-Friendly Security

Renters who live in a small space may not be ready for a full-sized safe. The lightweight SentrySafe 1200 Fire Chest is an affordable and convenient security solution that safeguards precious valuables and electronics from theft attempts to keep items safe and sound. Its convenient carrying handle allows users to easily move the chest from room to room and seamlessly pack and store their valuables at the end of their lease.

Photo courtesy of Shutterstock (family moving boxes)


SOURCE:
Master Lock



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financial wellness

Turn Your Tax Refund Into a New Ride

As tax refunds are beginning to come in, it’s an excellent opportunity for people to explore different investment avenues and make the most of their money.

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Make a major purchase more manageable

(Family Features) With tax refunds starting to flow in, many people are considering ways to invest their money.

If you’re looking to purchase a vehicle, putting your tax refund toward a down payment on a used car can be a smart financial decision for several reasons – from reduced interest rates on your loan and shortened loan terms to lower monthly payments – and the timing is right to take advantage of improving market conditions. Consider this information to help make an informed buying decision.

Lower Your Monthly Payment
The more you can invest in the down payment of a vehicle, the lower your monthly cost will typically be and the less interest you will typically pay over the length of the loan. This can lead to smaller, more manageable monthly payments.

A significant down payment can also help offset higher-than-average interest payments and could lead to a shorter term, meaning less total accrued interest. An auto loan calculator can show you how a down payment can affect interest charges.

More Affordable Vehicle Options
Used car prices have been trending downward month-over-month, according to the Bureau of Labor Statistics’ consumer price index. These decreases in used car prices are helping offset higher than normal interest rates. The average sales price for a pre-owned vehicle through Enterprise Car Sales, for example, is approximately $21,000 right now, compared to average new car prices, which are hovering around $44,000.

Vehicle inventory is improving along with an increase in consumer demand for cars, which makes now an attractive time to buy. Many used car sellers feature inventory that is readily available so you can select from options you know are in stock, including different makes and models with a wide range of different features that can offer more affordable options.

“We have a large inventory of vehicles across the country currently priced under $20,000,” said Mike Bystrom, vice president of Enterprise Car Sales. “There are several considerations to keep in mind when shopping for a vehicle, and there is no one-size-fits-all approach. Consumers should weigh their options, but the one thing they shouldn’t compromise on is receiving great customer service.”

Protect Your Purchase
Ensuring your purchase is protected is also a smart financial decision. Take advantage of dealers that offer additional benefits to help protect your purchase and provide peace of mind that your tax refund has been well spent.

Look for a used vehicle that has passed an inspection by an ASE-certified technician and comes with a limited powertrain warranty, as well as extra coverage options such as roadside assistance and a return policy up to a certain amount of days or mileage.

With a little research and careful planning, you can find a reliable used car that meets your needs and puts your tax refund to good use. Visit enterprisecarsales.com for more information.


SOURCE:
Enterprise Car Sales

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