RealNews RoundUp
Each week I round-up the best real estate articles and break them down for you in an easy to digest format. Here are the articles I’ve found most interesting over the last couple weeks:
The Article: Wealth: Home Depot offers homes for as little as $15,000
The Highlights: This post states that Home Depot now offers tiny homes for as little as $15,000 or $301/month. The original poster acknowledges that it would require more funds to actually build it out unless you want to live off the grid. Things like electrical and plumbing would make it much more expensive, but still a lower cost-of-living than an already established single family home. This is an inexpensive housing option is ideal for first time homebuyers or investors.
The average tiny house is anywhere between 145-222 square feet.
My Take: Home Depot has actually been selling these small concept homes for several years now (they really took off during the summer of 2020 for obvious reasons), but their popularity has surged in recent years. In fact, in 2017 there was a 67% increase in tiny house sales from the previous year alone, and there has been a steady increase every year since.
Additionally, 63% of millennials would consider buying and living full-time in a tiny house, and 68% of people living in tiny homes own their houses outright/are mortgage-free.
All that said, there is clearly a market for this kind of house, and it’s especially interesting from an investment standpoint. The trouble might occur when dealing with regulations and building/land restrictions which are especially common in coastal areas—where AirBnbs are especially popular. A rural forested escape might be more attainable than a beach bungalow.
The Article: The Street: Jobs Report Shows 311,000 New Hires, But Wage Growth Slows, Easing Inflation Fears
The Highlights: The Bureau for Labor Statistics released a report today stating that 311,000 new jobs were created last month, much more than the 265,000 predicted. However, there was a softer reading on wage gains, which came in below what was forecast suggesting pressures could be easing, especially as there is a surge in layoffs in the tech and industrial fields.
My Take: This is the most significant report outside of the CPI report to predict what might happen with interest rates going forward. We added more jobs than projected, but wage growth, which is what contributes most to inflation, is down and the lowest it’s been since February of 2022.
Having wage growth under control is positive news for mortgage rates. Inflation is still rising, but at a lower rate, adding jobs is positive for the economy and wage growth slowing is positive for inflation. All around good news. Get my full take HERE.
The Article: CNBC: Millennials bought an Abandoned High School for $100,000 and Turned it into a 31-Unit Apartment Building
The Highlights: I loved this story that I first saw in December. A lot of you found it interesting too—it got over 2 million views on TikTok and half a million on Instagram!
Long story short, a realtor-turned-investor converted an abandoned high school into a 31-unit apartment building. It took 18 months to renovate, and now they’re now getting top rents with 100% occupancy!
A couple weeks ago, they gave us a peek inside this modern and unique concept.
My Take: With companies needing less physical space thanks to remote work, and shopping malls and large storefronts closing thanks to the convenience of online shopping, there has never been a better time for innovators to take an idea like this and run with it! It’s turning would-be eyesores into something new and useful.