The Round-up Volume 14: No Flying Foreclosures Given
At the beginning of the summer who could’ve guessed that home prices would go bananas, out of reach, yet thousands of people would flee the largest cities.
August 28, 2020
Heading into this summer, who could’ve predicted this:
- Home sales are going bananas 🍌
- Prices are getting further and further out of reach 🔭
Tens of millions are unemployed and job security is tenuous for countless others, but the housing market doesn’t give a flying foreclosure.
With that, let’s get rolling!
What to Know
Rhove Co-founder and CEO Calvin Cooper dropped in on the 614Startups podcast, where he talked about his background, Black-owned businesses, and Rhove’s founding. Oh, and Rentership:
“It's a way for everybody who lives in a building to have the ability to own a stake in their property. Much like how you would buy a share of any asset through a mobile app... So our app allows you to turn your rent into a vehicle for savings and ownership.”
Holy Homebuying 😮
Homes are selling like hotcakes, driven by record-low interest rates and (probably) people wanting to get the heck away from their in-laws during a pandemic. Brushing off our ECON 101 notes here... It’s no surprise prices are rising because of all the demand. In fact, the median existing-home price jumped 8.5% to $304,100, a new all-time high and out of reach for many first-time buyers.
What’s it all mean? Well, for homebuilders and real estate agents it means more pouring foundations and more post-closing photo ops on the front stoop. The level of confidence among homebuilders reached its highest on record in August. Of course, you’d be confident too if your business grew 23% year over year in the midst of a global pandemic.
“Housing has clearly been a bright spot during the pandemic,” said Robert Dietz, Chief Economist for the National Association of Homebuilders.
Sure, it’s a bright spot when you’re a homebuilder.
On the other hand, millennials are facing their second economic catastrophe in little more than 10 years. They were already struggling to save for homeownership before prices skyrocketed.
Less Dense 🌆
Apparently many of those homebuyers are coming out of what were some of the country’s hottest apartment markets prior to the pandemic. In Manhattan, where you pay a premium to be around other humans, rents plunged 10%.
Previously red-hot Austin, Texas saw its first drop in rent prices in more than a decade. And San Francisco, where you pretty much need to be Elon Musk to not have a roommate, is facing a potential exodus of high-tech workers who can work remotely from more affordable communities.
Construction is also taking a hit, as fewer apartments are being built.
Campaign Season 🇺🇸
Do you feel it in the air? No, not that first crisp of autumn... the political rancor.
Knowing how stressful the year has already been, it’s tempting to tune it all out. But no matter your political beliefs, now is the time to be engaged in our democratic process. In a year in which governments had to institute eviction moratoriums to help keep renters from being forced out on the street, you better believe these topics hit close to home 🏠.
Need to register to vote?
With home and apartment markets in flux, and the economy on shaky ground, we think it’s a perfect time for every renter to become an owner.
Since Rentership debuted last month, we’ve been overwhelmed by the positive response, including from renters at our very first property, Gravity. With a few clicks, Gravity residents claimed their first 50 Rentership units (RNT) at no cost. Just for being a resident 🚀
The only thing better than claiming a stake in the place you call home is growing that stake. Residents at Gravity can grow their stake in the Rhove app, anytime, in as little as $1 increments.
Just like monthly payments for homeowners, you can set monthly RNT buys right in the app. Automatically grow your stake to create even more value while you rent. It couldn’t be easier.
Claim your stake. Grow your stake. No stakes in the ground.
If you want to get in on the movement, refer your apartment and we’ll take care of the rest.
Quote of the Week
“Just imagine if every renter was an owner. That's the world we're going to create."Calvin Cooper, Co-founder and CEO of Rhove, featured on the 614startups Podcast.