Welcome to the Pocket List, investors 👋

Let’s make some money today, shall we?

First, let’s check in on mortgage rates…

The 411 on rates… Rates continue their march south, thanks largely to Treasury yields falling as economic data continues to point towards a rate cut later this month. We should get a better idea of just how big that rate cut will be (0.25% or 0.5%) following today’s jobs report.

THE LEAD

We are so back

Follow the money, my friends...

Major REITs and other big swingin’ investors are making yuge investments in rental properties.

Why? 

Two words: higher rents.

According to one of those large investors (KKR), "new supply is likely to taper off after 2025, at which point we are optimistic about rent growth."

The huge boom in multifamily construction we saw during and in the aftermath of the pandemic is slowing. And I've got receipts: multifamily building starts were down 22% in July (vs. the same period last year).

Shocker...

It appears the massive influx is finally catching up with builders (and their investors). Declining rents have made it a much less sexy proposition to keep building.

Of course, the high interest rate environment and uncertainty around the election probably aren’t helping.

As the number of new buildings contracts, fat cat investors are betting that rents will begin to rise again (because, you know, economics).

💭 Mr. Pocket Listing says… The smartest guys in the room probably aren't wrong. I would caution, however, that rents are highly dependent on geography. For example, places like the Sun Belt are being hit the hardest right now. As is Austin, TX.

Still, it could make sense to re-think your rent pricing strategy and consider the impact as you look for new doors.

WHAT ELSE?

More industry headlines I’m keeping an eye on…

• Housing inventory falls as mortgage rates drop (Read)

• Construction spending posts bigger-than-expected drop in July (Read)

• Mortgage refinance demand is 94% higher than a year ago, as interest rates fall again (Read)

• Apartment Construction Is Slowing, and Investors Are Betting on Higher Rents (Read)

• The New Home Financing Rule of Thumb Is Why Regular Americans Can’t Afford To Buy a House (Read)

• All the reasons you’re fed up with the big city, and where to live instead (Read)

• Home Price Cuts Reach Highest Level in 5 Years as Sellers Show ‘Patience and Modesty’ (Read)

• Will Falling Interest Rates Push Up Home Prices Even Further? (Read)

DIY

Let’s get tactical…

• Where New Investors Should Be Looking to Buy This Fall (Read)

• Should Investors Start Using 40-Year Mortgages? (Read)

• Why Billionaires, Including Jeff Bezos, Love This Asset: What You Need To Know Now (Read)

• Homes With These 10 Features Had the Highest Sale-to-List Ratio (Read)

• I’m a Buyer’s Agent. Here’s How the New NAR Rules Have Impacted My Business (Read)

• Concessions Are Rising, But Private Landlords Should Never Offer Them (Read)

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

PROPERTY TOUR

It’s time to get a pulse on markets around the country…

(1) After Analyzing the Largest Rental Markets—Here’s Where Prices Could Fall (Read)

(2) These housing markets are poised for a downturn — and they’re not in Florida or Texas (Read)

(3) Real Estate Experts Say These Will Be the Best US Cities To Buy Property in the Next 5 Years (Read)

(4) 10 Housing Markets That Will Plummet in Value Before the End of 2024 (Read)

SURVEYING

Last week, I asked, “What are your thoughts on owning college student housing rentals?”

You guys avoid student rentals like the plague. Just 11% of you were interested.

Here’s today’s question…

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One last thing…