MReport October 2020

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56 | M REPORT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA The Latest Look at Single-Family Rent Prices A recent report showed that as unemployment rates skyrocketed, renters struggled, and landlords lowered rates in the hopes of keeping their tenants. C oreLogic's Single-Family Rent Index, "which analyzes single-family rent price changes nationally and across more than 80 metropolitan areas," reported this week that U.S. single-family rent growth stabilized for the first time since the beginning of the pandemic. CoreLogic's July 2020 data showed a national year-over-year rent increase measuring 1.7%, That's down from July 2019's 2.9% YOY increase, and it represents the first stabilization in rent price growth since COVID-19 began impacting the nation earlier this year. According to CoreLogic's Index, "In February, the coronavirus (COVID-19) pandemic set off a chain reaction in the rental market. Unemployment rates skyrocketed, leaving cash-strapped renters strug- gling to make ends meet and land- lords lowering rates in the hopes of keeping their tenants, and local economies, afloat. Rent increases slowed sharply from an average of 2.9% in the first quarter of 2020 to 1.7% in May and 1.4% in June." "Increases in single-family rent prices slowed dramatically this spring as the nation began to face the economic impact of the pandemic. As job losses slowed in July, rent growth steadied," said Molly Boesel, Principal Economist at CoreLogic. "However, increases in rents should remain sluggish until the economy starts to expe- rience employment gains." At 4.7%—and for the 20th consecutive month—Phoenix, Arizona, experienced the highest year-over-year hike in single-fam- ily rents in June. That said, com- pared to its average growth rate of 6.5% in Q1 2020, rent growth there has begun to decelerate. Phoenix was followed by Tucson, Arizona, which inched up 4.1% in rent price growth in June, followed by Charlotte, North Carolina at 3.4%. Meanwhile, CoreLogic re- ports that areas that traditionally depend on tourism to help shore up their economy saw an- nual declines in their rent prices: Honolulu, Los Angeles, Miami, and Boston all saw declines, with Honolulu experiencing the worst drop at -1.3%. CoreLogic studies a quartet of tiers of rental prices for a precise look at prices of single-family rentals. In June, prices took a hit across all tiers, with a sustained widening gulf between the low- end and high-end tiers. In June, the national single-family rent growth across the four tiers, and the year-over-year changes, were as follows: • Lower-priced (75% or less than the regional median): 2.5%, down from 3.7% in June 2019 • Lower-middle priced (75% to 100% of the regional median): 1.5%, down from 3.1% in June 2019 • Higher-middle priced (100% to 125% of the regional median): 1.4%, down from 6% in June 2019 • Higher-priced (125% or more than the regional median): 1%, down from 2.5% in June 2019 America's Most Expensive Neighborhoods A new study examines how coronavirus is impacting the U.S. luxury real estate market. P roperty Club recently conducted a study on how COVID-19 is im- pacting the U.S. luxury real estate market by taking a look at the most expensive ZIP codes in the nation. California claimed more than 87 of the 125 entries and two-thirds of the country's most expensive ZIP codes. This includes 94027 in Atherton, California, which took home the No. 1 ranking with a median sales price of $6,690,000 as well as six of the 10 most expensive ZIP codes. Notably, Beverly Hills' 90210 was the second most expensive ZIP code in the nation, with a median sales price of $4,084,000. In addition to listing the priciest neighborhoods, the study showed that urban areas are struggling to attract buyers (approximately 80% of the nation's priciest ZIP codes are in suburban settings). In fact, the 10 most expensive ZIP codes in the nation are all in suburban settings. Only three of the nation's 25 most expensive ZIP codes are in urban settings, and all of them are in Manhattan. The Empire State is home to 19 of the nation's top 125 ZIP codes and five of the top 25 most expen- sive ZIP codes. Overall, New York City is home to eight of the country's priciest ZIP codes, all of which are in Manhattan, while nine Long Island and two Westchester neighborhoods make the list. While California and New York are home to 106 ZIP codes, com- prising over 80% of the nation's most expensive ZIP codes, the remaining ZIP codes are spread across 13 other states includ- ing Massachusetts, Connecticut, New Jersey, Florida, Washington, Nevada, Georgia, South Carolina, Utah, Maryland, Arizona, Colorado, and Wyoming.

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