Welcome to the Pocket List, investors 👋

Here’s what we’re getting into today…

• What we can learn from the biggest, publicly traded, real estate investors

• The 5 types of houses that could plummet in value this year

• 10 cities to buy in NOW

• Your FREE pocket listing

Plus, a whole lot more.

Let’s make some money today, shall we?

First, let’s check in on mortgages…

Rates have been falling steadily since last week’s Fed decision (or lack thereof). Markets were relieved to hear that the Fed didn't plan to raise rates. The jobs report last Friday further assured markets that rate hikes were off the table… and perhaps the Fed could cut sooner rather than later.

THE LEAD

Take notes

Do you smell that?

It’s the sweet aroma of freshly printed earnings reports.

Once again, it is earnings season for publicly traded companies. In addition to the impact on your stock portfolio, it means we get to hear from real estate giants.

Earnings calls and reports, especially those of multifamily REITs, can provide some super valuable insights into the state of the rental market…

Improvement in demand drivers

There was a common theme throughout many of the multifamily REIT’s earnings calls: a mention of job growth. Economic factors like a resilient job market and slowing inflation are bullish signs for the rental market.

To be fair, last Friday, the April jobs report pointed to a slowdown (but, on the bright side, that could give the Fed the flexibility it needs to lower rates).

This shouldn’t come as a shock…

Large real estate players pointed out that renting remains way more affordable than buying in most markets…

• Avalon Bay said that in the markets it serves, it is “more than $2,000 per month more expensive to own versus rent a home.”

• Essex Property Trust indicated, “the median cost of owning a home is 2.5 times more expensive than renting in our markets.”

Low inventory and high interest rates continue to force would-be buyers to rent.

Location, location, location

Rent growth has been largely determined by geography. Certain markets like the Sun Belt and Austin, TX have struggled with rent growth. That’s led to concessions.

But more than a few of the publicly traded REITs said they expect rent to pick up in some of the most hard-hit regions. That’s because supply is expected to slow its roll.

💭 Mr. Pocket Listing says… Let’s remember that most of the data from an earnings report is historical. So, what piques my interest is the forward-looking insights… like a slowdown in supply across specific oversaturated markets.

Having a look at a transcript (or an AI-generated summary) of an earnings call for one of the publicly traded REITs with exposure to your geography could offer some eye-opening tips as to what’s next. I find that they’re overlooked, data-rich assets.

WHAT ELSE?

More headlines I’m keeping an eye on…

• NAR chief economist predicts falling long-term interest rates, rising existing-home sales in 2024 (Read)

• First-time home buyers pounce as 30-year FHA loan rate dives below 7% (Read)

• At 2022 Rates, 10 Million More Households Could Afford a New Home (Read)

• ‘The 30-year fixed-rate mortgage is a uniquely American construct,’ analyst says. Here’s why (Read)

• Soaring insurance costs could finally put a lid on home prices, real estate experts say (Read)

• Housing May 6th Weekly Update: Inventory up 0.6% Week-over-week, Up 33.1% Year-over-year (Read)

• US Renters Seeing Chance of Owning a Home at Record Low, NY Fed Survey Shows (Read)

Let’s get tactical…

• Avoid My Mistakes: Single-Family Renovation Lessons I Learned the Hard Way (Read)

• 5 Types of Homes That Will Plummet in Value in 2024 (Read)

• Where are the best opportunities for real estate investors? (Read)

• NAR clarifies details on buyer broker agreements (Read)

• Here’s When To Buy a New House, According to Kevin O’Leary (Read)

• The One Renovation Guaranteed to Increase ROI—No, It’s Not the Kitchen or Bathroom (Read)

• Home Buyers’ Ideal Community (Read)

• Are Adjustable Rate Mortgages a Lifeline for Lower Rates? Or the Most Dangerous Thing You Could Do? (Read)

• More home sellers are paying capital gains taxes — here’s how to reduce your bill (Read)

• Want to fire your real-estate agent? Try this. (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) Bloomington, MN is on the list // The Top 10 Rental Markets Where College Grads Can Find an Affordable Home, a Great Job, and Lifestyle Perks (Read)

(2) Fort Wayne, IN is #2 // The 50 Best Places To Buy a Home for Under $250,000 (Read)

(3) Richmond, VA made the list // I’m a Real Estate Agent: Buy Property in These 10 Cities To Be Rich in 10 Years (Read)

SURVEYING

Last week, I asked, “Do you think the # of single-family investment properties should be capped?”

More than 75% of you think it should be.

Here’s today’s question…

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One last thing…