Mortgage rate 6.09% | Med. list price $399,950 | Pending home sales 9.3% | New listings 4.2% |
| Mortgage rates from Freddie Mac; pending home sales from the National Association of Realtors; additional housing data from Realtor.com. | - Mortgage rates rose to 6.09% this week from 6.06% last week for a 30-year fixed-rate home loan, according to Freddie Mac. At this time last year, rates were at 6.96%.
- List prices fell 0.3% year over year for the week ending January 17, compared to this same week last year, according to Realtor.com. The median price currently hovers just under $400,000 at $399,950.
- Pending home sales plummeted 9.3% month over month and 3% year over year in December, according to the National Association of Realtors, marking a sharp slowdown in contract signings despite lower mortgage rates.
- New listings inched up 4.2% for the week ending January 17, compared to this same week last year, as sellers re-entered the market after the holidays, according to Realtor.com. The total number of listings (new plus old) rose 9.5%, providing plenty of options for shoppers hoping to get a jump on buying a home this year.
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THE BIG STORY Vishakha Mathur never imagined becoming a landlord. But when a new job meant a move to New York City in 2024, she decided to make the leap: Rather than sell the Boston condo she’d bought in 2023, she rented it out. “Since it was my first time, a lot of things surprised me,” she admits. The biggest curveball was when her tenants stopped paying rent, resulting in an eight-month eviction process. Another shocker was the cost of repairs. “Fixing a leak was more expensive than I expected,” she says. Add in a property manager to help her navigate this new enterprise, and the payoff of becoming a landlord has so far been minimal: “I break even each month.” Mathur is part of a new wave of landlords entering the market who are reshaping what owning rentals looks like. One survey by rental platform Avail of nearly 2,000 users found that 53% became landlords in the last five years, with the most (17.4%) entering the market just last year. Although 58% purchased a property specifically to rent out, one-third backed into this business by renting out their former residence. An extra 12% became landlords through indirect paths (say, after inheriting a home), while one in four started a business with a family member. “We fell into it,” says Hilary Reiter Azzaretti, whose fiancé moved in with her in 2022. Rather than sell his condo in the ski town of Park City, UT, they rented it out. “It just didn’t make sense to part with it when it’s such a solid investment and with the Olympics coming back in 2034.” Their gamble proved so successful that they’re now considering buying a second rental property in Italy. Many of today’s “accidental landlords” feel like they’ve stumbled on a goldmine. Still, the learning curve can be steep. “I never expected how often guests forget things or how often things disappear,” says Misty Valdez, who has bought two short-term rentals in Broken Bow, OK, in the past two years. “I’m still not over the missing spoons.” Should you become a landlord? Landlords have received a lot of flak lately. President Trump announced a ban on institutional landlords buying homes, blaming them for the current housing crisis. The reality, though, is that large investors with 100+ homes own less than 1% of US real estate; 66% is owned by landlords with just one or two properties. If you’re interested in becoming a landlord, there are plenty of ways for beginners to break in. No clue how to crunch numbers? Platforms like Rent To Retirement show listings that break down initial output, cash flow, and ROI. Don’t want to be on the hook for tenant gripes and leaky faucets? BiggerPockets’ property manager database can help you find someone to do the dirty work. Can’t afford an entire rental? Purchase a slice of one by joining a real estate investment club. Although profits from rentals may not make you rich overnight, today’s landlords are often okay with that, seeing this venture as more of a way to broaden their financial holdings for the long haul. “When friends or family ask why I don’t just sell and move the money into stocks or something else, I explain that this is part of my diversification,” says Mathur. “It’s not about maximizing profit. It’s about keeping options open, balancing risk, and having a mix of financial and lifestyle flexibility. If I ever move back to Boston, it gives me a place to land. And if my circumstances or goals change, I have the flexibility to sell later and use that equity toward a home wherever I end up.” | | |
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From The Crew Looking for tactical advice about the biggest HR challenges? From managing open enrollment to building an inclusive workplace, People Person has you covered. Each episode of this new show features a candid convo between HR leader Kate Noel and top industry experts. Tune in now wherever you get your podcasts. |
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WHAT'S UP THIS WEEK The strongest buyer’s market in over a decade: According to Redfin, there were 47.1% more US home sellers than buyers in December, the largest gap since 2013. In certain markets, this imbalance is much more pronounced—like Austin, TX, where there are 128% more sellers than buyers. Find out where buyers have the most power. A more affordable 2026: Zillow predicts that thanks to falling mortgage rates, rising incomes, and slow price growth, homes should become more affordable by year’s end in every major metro…that is, except for the hottest market of all. 💲The cheapest housing market in the US: MoneyLion found that Greenville, MS, holds the dubious honor of having the lowest average home value in the US at $44,931—and it’s projected to go even lower this year. Take a look at where home prices are falling fastest. America’s most clicked on (and picked on) home: This listing racked up 34,720 views in one day before a buyer snapped it up for $712,000 over asking price. Sure, the photos are nice. But the property also became a source of jokes—often at the expense of the kids who lived there. Got a C-note? Nearly 1,000 parcels of land in California will soon go up for auction, with bids starting as low as 100 bucks. And weirdly, real estate in this area is “booming.” Your home’s new showstopper: Yelp has found that this oft-overlooked area has become an eye-catching style statement and a top-selling point, too. These floating tiki huts are Airbnb gold but also highlight an untapped opportunity: It’s entirely legal to build on the ocean for free. That is, if you can figure out how. 🫧 Have you burped your house lately? Here’s why that’s a good idea. |
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REAL TALK Wouldn’t it be nice if you could print out a house as easily as you fire off a few copies of that work presentation? This is now a reality at HiveASMBLD, which just broke ground on the world’s first hybrid 3D-printed affordable housing development. Zuri Gardens, a 13-acre community in Houston, features 80 printer-built homes for sale, starting at $275,000—well below the local average (plus many buyers are eligible to receive credits ranging between $50k and $125k through grant programs that can whittle down that price further). Here’s more about how this game-changing technology from the company’s co-founder and co-CEO, Timothy Lankau. Q: How did you get involved in 3D-printing homes? “Co-founder Ethan Wong and I were traditional homebuilders interested in bringing more automation into the process to address cost escalation. There are not many promising technologies other than 3D printing, so we dove into it along with some of the first movers in 2021.” Q: What are the hurdles to this technology taking off? “The main challenge has been whether we can move the needle on cost and production time savings. At this point, quite a few companies can 3D-print a house. But we are not aware of any company other than ours that has 3D-printed multiple houses that have sold on the market at true cost savings passed onto homeowners. We think there is an unlimited market for these homes so long as they are at or below the cost of stick-framed homes. But if they are more expensive, even by a little, it is a limited market because homes are already too expensive.” Q: How have you made 3D-printed homes affordable? “It has helped that we have never had tens of millions of dollars to develop our technology; this has forced us to develop a practical system, focusing on a smaller footprint system and less expensive mortars. And the more volume we can do on a given site, the lower our costs. Zuri Gardens is our opportunity to show how this technology can work on a larger scale to push costs down. We estimate that there are between 200 and 300 of these homes worldwide. We have contracted to do about 100 this year, and think this may make us the highest-volume builder of 3D-printed homes in the world by the end of 2026.” Q: Have you ever lived in a 3D-printed home, and what’s it like? “I have. They are more energy efficient due to their well-sealed envelopes. Their thick concrete walls are more soundproof, so they are quieter on the inside. Overall, it just feels safer and more solid to me. There are also not many limits on what printers can do architecturally in terms of layout, size, or look. For investors, we think these homes are great for rentals due to their lower cost and higher durability.” | | |
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YOU ASKED, WE ANSWERED In slow markets, landlords have devised a variety of tricks to reel in tenants without budging on rent. One popular tactic is to offer one month (or more) free to tenants who move in. Providing complimentary moving trucks, Amazon gift cards, or free movie or sporting event tickets are also popular enticements. Tenants also go crazy for “rental improvement allowances” to make their apartments feel like home. “Tenants stop focusing on what they don’t like about the apartment and what they could do with that allowance,” explains Andy Heller, founder of Regular Riches, who has bought, owned, and sold over 100 properties. “And that way, you’re not sinking money into something tenants don’t want.” (Although you’ll want to make sure you’ve got veto power in case they’re inspired to, say, tear down a wall or paint the entire place purple.) Although these extras do cost money, they’re temporary hits that allow landlords to maintain their property’s long-term value, while offering tenants the psychological rush of getting a little something extra for free. Got a question about real estate? Share it here, and we’ll answer it in a future issue. |
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HOUSING MARKET OF THE WEEK This week, we’re heading to the capital of Pennsylvania to hear from Austin Glanzer at 717 Home Buyers, who has bought, sold, or wholesaled around 300 homes here over the past seven years and owns 25 rentals in the area. Average home price: $255,315 (up 4.7% YoY) Homes that sell over list price: 35% Homes that sell under list price: 40.4% Average rent: $1,350/month Lay of the land: “Pennsylvania has received several government grants aimed at expanding manufacturing, and I expect that trend to continue,” says Glanzer. However, he adds, “There are some potential downsides to investing directly in the city of Harrisburg. Many people don’t realize that a large portion of the city near the river is in a flood zone, which can create additional risk and costs. I believe many of the areas surrounding Harrisburg, such as Mechanicsburg, have shown more consistent appreciation due to their proximity to major highways and strong commuter access.” This is why he recently bought a two-bedroom, three-bathroom townhouse here for $172,000, rehabbed it, then listed it for $259,999. His advice: Weigh the pros and cons of flipping versus renting based on your market’s needs. “I decided a flip made more sense than holding it as a rental because demand from first-time homebuyers here remains very strong,” he says. He also thinks investors should keep their renovation spending in check rather than go all-out to create the perfect house. “I chose a lighter rehab instead of an overhaul to not push the price beyond what today’s buyers can afford,” Glanzer explains. “And rather than listing at the highest possible price, I priced lower than I could have to increase buyer interest and lead to a faster sale. To anyone flipping houses, focus on affordability.” Have a real estate market you’d like to highlight? Share it here, and we’ll feature it in the future. | | |
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