Dave:
You’ve noted the multifamily boom in supply. We’ve talked about that quite a lot on this show. So when you’re talking about affordability, are you specifically talking about renters who are, that’s the whole country, right? So the multifamily rent situation is driving down the overall rents, right? So that would include single family or single family rents outperforming at this time.
Lu:
It’s interesting that you brought up single family, although my team doesn’t focus a lot on the single family, single family rental, but we do monitor single family market closely and the reason being that’s part of the housing ladder, if you were to say, right? So the renter will be naturally moving up the housing ladder to single to become a single family homeowner. So anything happens on the single family side has implication on the rental side as well. So I would say single family has been also going through a period of rapid price appreciation and that of course has been driving up the single family rental price as well. But recent data has been a little discouraging, discouraging in the sense that we are seeing the transaction volume has now been picking up during the spring buying season and the housing appreciation if you really depends on which metric we are monitoring, but we are seeing month over month price decline, nominal price decline to be more accurate, which still puts us on the year over year game. But that game has been fading. That is an indication the renters has been holding up to their rental units for longer. At the national level, we are seeing the first time home buyers average age has been moving up and right now we are sitting at 38,
Which is very daunting for millennials to become a first time homeowner. But if that situation is easing a little bit because the single family inventory has been creeping up at the same time it was the multifamily construction boom because we are seeing the locking effect has been finally easing little as people getting acquainted with the six handle and there has been the life events putting some of the existing home for sale and also the single family building has been churning up the inventory which has been providing this more benign spring purchasing season for the first time home buyers. And that has been, I mean, loosening up the price lever a little bit and if that were to persist and of course it gives renter a lot more options in the next few months.
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