Data & Nuggets

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40 - Gold Nuggets

As we finished our year-end multihousing apartment report, we were again impressed with the pricing and volume we are seeing in the apartment world. I do not typically have time to farm the data we create, and have access to, as much as I want… so my team and I are going to try and push out mini-blogs with the information (what I call “nuggets”) that I come across on a daily, weekly, monthly, and quarterly basis… it’s a lot, believe me!

 

What is cool about these “nuggets” is that they start to show us trends, and we can ask questions and dig deeper into what the data is trying to tell us! For example, our 2016 Apartment Market Kickoff Report shows that from 2014 to 2015, YOY two-bedroom two-bath apartments in Sugarhouse Class A went up 8.01%… which means that if you rented an 850 SF unit in 2014, you were paying $1,265.50/month vs. 2015, where you would be paying $1,377. That is $111.50/month MORE… $1,338/year!

 

The data we are collecting has me super excited because it helps us in our CORE business… but it is also fun to see what ripple effects exist between our data sets and other market segments. Housing (For Sale), for example, has been VERY interesting to watch. The lack of inventory, increased demand, limited construction vendors and crews… all have helped increase the values.

 

Whitney Vanderhoeven, who works with our team AND sells homes through Preferred Realty of Utah, provided to me today the below graph showing housing prices and inventories from Q1 2011 through Q4 of 2015.

 

Graph 1

 

From Q4 2014 to Q4 2015, there was a 10% increase in Median Sold Home Price, coinciding with our rent growth. It was also interesting to see the fluctuations in total number of homes listed… there may be a seasonality component to some of that I may not understand just doing multihousing and investments… but choppy to say the least! I do like the overall growth of the Median Sold Price… with inventory taking a sharp dip in Q4 of last year, I would imagine we would see that increase as well.

 

Will we see condos in 2016 as pricing increases?

 

At what point will the expensive apartment rents push tenants to buy homes/condos/townhomes? We will be watching the affordability of apartments and pricing thresholds closely!

 

When will supply in the HOUSING world catch up? That may be a PODCAST follow up in itself!

 

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