Welcome to the Pocket List, investors 👋

Here’s what we’re getting into today…

• Build-to-rent is booming

• What are the 5 cheapest zip codes in each state?

• You might be eligible for $14k (or more) in government rebates

• Your FREE pocket listing

Plus, a whole lot more.

Let’s make some money today, shall we?

First, let’s check in on mortgages…

After last week’s spike, mortgage rates leveled off. There was little economic data to move the needle.

THE LEAD

Build-A-Rental

Build-to-rent properties, or BTRs, are coming off a record-breaking 2023. And they show no signs of slowing down. BTRs are homes built with one goal: rental income (which is why you might want to pay attention).

27.5k BTR homes were, well, built to rent, in 2023. That was a 75% jump from 2022… and a 300% jump from 2021.

Or if you’re more of a visual person…

Staggering growth over the past decade.

“Oh, well, I’m sure it’s slowing down…” Not so fast. There are currently 45k BTR homes in progress that should be occupied by 2025.

Why though? A perfect story has been brewing…

• Homeownership remains expensive for many

• Hybrid work has forced renters to re-think living spaces

• Millennials are in their “nesting years” and are seeking more space

• Renters are seeking fresh construction and new amenities

Boom towns

Not all metros are created equal when it comes to BTR, though. Phoenix, Dallas, and Atlanta make up a huge chunk of new builds…

💭 Mr. Pocket Listing says… It might seem like it’s too late to capitalize on the trend, but let’s think about the macro environment for a second…

• Rents are stabilizing, but still near all-time highs

• Mortgage rates could be stuck higher for longer

• Few expect housing prices to fall significantly in the near term

Zooming in, there are a handful of metros that are showing demand, but supply is lacking…

• Northport, FL

• Raleigh, NC

• Lakeland, FL

• Savannah, GA

This capital-intensive investing strategy is getting attention from institutional investors and home-builders, which should tell you all you need to know (spoiler: there is a lot of money to be made if done right).

What else Mr. Pocket Listing is reading…

• Judge approves multimillion-dollar Realtor settlement, upending the way Americans buy and sell homes (Read)

• Mortgage demand drops as interest rates soar over 7% (Read)

• 5 Cheapest ZIP Codes for Housing in Every State (Read)

• HGTV’s Property Brothers reveal the biggest mistakes new real estate investors make and predict the next hot housing market (Read)

• Don’t Overlook This When Buying an Investment Property—Learn From My Mistake (Read)

• What is an assumable mortgage and is it right for you? (Read)

• Here’s What Will Happen to the Housing Market If Rent Keeps Rising (Read)

• The multifamily markets where expenses are rising the fastest (Read)

• I bought a duplex as my first home. I still have a mortgage, but I only pay around $900 a month and have no regrets. (Read)

Mr. Pocket Listing’s favorite property of the week (a guy can dream, can’t he?)…

DATA DUMP

For all the numbers guys and gals out there…

• 2/3 / 66% of buyers prefer a single-family detached home (Read)

• $145k / The total annual amount Gen Z is expected to pay in rent by age 30 (Read)

• $14k in rebates per household / The US government is issuing $8.8B for its Home Energy Rebates program. Homeowners and landlords are eligible (Read)

• 1.48 million housing units / The number of homes built across the nation’s 50 largest metros from 2020 to 2022 (Read)

• Down 30% / All cash sales fell to a 3-year low in the first quarter of 2024 (Read)

SOCIAL STUDIES

Before we go, one last thing…

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One last thing…