Social Benefits of Home ownership

Social Benefits of Home ownership

Improved educational performance, higher civic participation, lower crime rates, and improved health remain the biggest social benefits linked to home ownership, according to a new research paper by NAR Chief Economist Lawrence Yun and research economist Nadia Evangelou, which appears in The Journal of the Center for Real Estate Studies. Some findings from the latest research cited in the paper include:

Health. Children of homeowners tend to be happier and healthier than children of nonowners, even after factoring in income and education levels. More recently, studies have found the wealth-building effect of home ownership and the sense of control it often brings in a stable housing market can positively affect homeowners’ mental and physical health. On the other hand, some studies suggest that areas where housing distress is high tend to see greater rates of mental health and stress-related health diagnoses among residents.

Crime. Research has confirmed homeowners have a lower instance of involvement in crime than nonowners. Also, neighborhoods with stable housing options—regardless of ownership structure—are more likely to have lower crime rates. Some studies have found, however, that foreclosure levels do influence burglary and violent crime rates.

Education. Researchers have found homeowners tend to accrue more wealth and save more money—such financial practices are associated with lower rates of homeowners’ children dropping out of school.

Civic engagement. Home ownership and residential stability continues to be linked with an increased likelihood of electoral participation. Homeowners remain more likely to participate in local elections and civic groups than renters, the paper states.

“Owning a home embodies the promise of individual autonomy and is the aspiration of most American households,” the researchers note. “Home ownership allows households to accumulate wealth and social status, and is the basis for a number of positive social, economic, family, and civic outcomes.”

Source: “Social Benefits of Home ownership and Stable Housing,” The Journal of the Center for Real Estate Studies (2017)

Upscale Staging Is Key in Luxury Condos

Upscale Staging Is Key in Luxury Condos

Looking to get your listing noticed on the higher end of the market? Condo developers in this segment say they lure affluent buyers with models that feature brand-name goods and high-end finishes.

“You want customers to daydream a little bit. Everyone always buys what they see,” Alexander Hovnanian, developer of Nine on the Hudson, a 13-story luxury condo under construction in New Jersey, told The Wall Street Journal. The building’s units will range from about $675,000 to $6 million.

Developers are carefully outfitting models with features such as custom-designed closets, one-of-a-kind artwork, designer light fixtures, and top-notch luxury goods that promote a lavish lifestyle.

Designers do have to make some assumptions when staging luxury units. For example, they’ve found that younger buyers tend to prefer smaller units with pared-down modern furnishings and bright colors. On the other hand, larger units often will include more traditional interiors to attract buyers who are downsizing from a larger home, Highlyann Krasnow, principal at the Design High, an interior design firm based in New York, told The Wall Street Journal.

The idea that staging can make a difference is backed up many agents and brokers outside of the design community. Thirty-one percent of buyer’s agents say that staging a home can increase its value by up to 5 percent, according to a recent survey of nearly 2,000 agents by the National Association of REALTORS®.

Buyers who peruse a staged model unit may be able to make their buying decision faster because it can even evoke feelings of happiness, says Stephen Conroy, an economics professor at the University of San Diego who studies real estate amenities. When buyers can see a unit in person rather than try to visualize it on paper, the experience of seeing and feeling the various finishes offers up “an emotion that’s going to enter into the buying decision,” Conroy told The Wall Street Journal.

Source: “How Developers Sell the Promise of a Luxury Lifestyle,” The Wall Street Journal (Oct. 19, 2017) [Log-in required.]

How Happy Is Your City?

How Happy Is Your City?

Boulder, Colo., is the happiest city in the U.S., according to the National Geographic Gallup Special/Blue Zones Index. The city’s sense of community, access to nature, sustainable urban development, preservation policies, and its clean mountain air help make its residents feel upbeat, according to the index. More people walk to work in Boulder than any other U.S. city per capita—the city has high rates of exercise and low rates of smoking and obesity.

National Geographic and Gallup researchers teamed up to develop an index to assess happiness levels in American cities based on 15 metrics. According to the researches, some key aspects to a happy city include vacation time, civic engagement, financial security, and eating healthy. Researchers conducted nearly 250,000 interviews with adults from 2014 to 2015 in 190 metros.

“There’s a high correlation between bikeability and happiness in a city—in Boulder, you’re more likely to hear the whoosh of a cyclist than the shrill of a siren compared to places like Dallas, Tallahassee, or Los Angeles,” says Dan Buettner, National Geographic bestselling author and researcher, in the analysis. “Cities like Boulder question the unquestioned virtues of development. This benefits visitors, who can experience an emphasis on greenery, a high-quality culinary community, limited marketing onslaught, and no billboards.”

According to the National Geographic Gallup Special/Blue Zones Index, these are the happiest cities in the U.S.:

1. Boulder, Colo.
2. Santa Cruz-Watsonville, Calif.
3. Charlottesville, W.Va.
4. Fort Collins, Colo.
5. San Luis Obispo-Paso Robles-Arroyo Grande, Calif.
6. San Jose-Sunnyvale-Santa Clara, Calif.
7. Provo-Orem, Utah
8. Bridgeport-Stamford-Norwalk, Conn.
9. Barnstable Town, Mass.
10. Anchorage, Alaska
11. Naples-Immokalee-Marco Island, Fla.
12. Santa Maria-Santa Barbara, Calif.
13. Salinas, Calif.
14. North Port-Sarasota-Bradenton, Fla.
15. Urban Honolulu, Hawaii

View the full list of happiest cities.

Source: “These Are the Happiest Cities in the United States,” National Geographic (Oct. 18, 2017)

Battery-Powered Homes Are Becoming Reality

Battery-Powered Homes Are Becoming Reality

Your clients may one day live in a battery-powered home, and that’s getting closer to reality for homeowners in New York, California, Massachusetts, Hawaii, Vermont, and Arizona. Many municipalities in those states are revamping their electrical grids and turning to batteries to make them more efficient. But the average homeowner likely won’t notice the change. Most plans call for batteries to be tucked into a sort of neighborhood junction box or behind a fence in a substation, The Wall Street Journal reports.

Batteries can harness renewable energy sources and make utility companies less reliant on more expensive forms of electricity when demand runs high. “Without batteries and other means of energy storage, the ability of utility companies to deliver power could eventually be threatened,” according to the Journal. “Solar power, especially, tends to generate electricity only at certain times—and it’s rarely in sync with a home’s needs.”

In the aftermath of recent hurricanes, companies such as Sonnen and Tesla helped keep homes powered using batteries, demonstrating the importance of freeing people from total dependence on the electrical grid during emergencies. They found that battery power worked particularly well when combined with rooftop solar panels.

Real estate developer Mandalay Homes has announced plans to build up to 4,000 ultra-energy-efficient homes, which will feature 8 kilowatt-hour batteries from German manufacturer Sonnen. The bulk of the homes will be built in Prescott, Ariz. The development could be the largest home energy storage project in the country, Sonnen Senior Vice President Blake Richetta told the Journal.

In Vermont, Tesla Energy and Green Mountain Power have teamed up to offer 2,000 homeowners a Tesla Powerwall for $15 a month. The 13.5 kilowatt-hour batteries, which retail for $5,500, can be used when the electrical grid is strained at maximum capacity, saving utility companies from having to use pricier forms of electricity. Those savings could then be passed on to consumers.

Source: “Your Next Home Could Run on Batteries,” The Wall Street Journal (Oct. 15, 2017) [Log-in required.]

The Best Places to be a Landlord

The Best Places to be a Landlord

Higher home prices and a tight supply of homes for sale may be the mantra nationwide. But certain markets are still offering lucrative options for investors.

Real estate sales and auction company TenX released its top picks for investors and Texas had the most markets on its list, scoring three out of the top five. Texas continues to post strong growth in employment and home construction. San Antonio topped TenX’s list for best places for investors, posting strong population growth for six years and having incomes hit all-time highs. San Antonio is followed on the list by two other Texas hot spots: Fort Worth and Dallas.

Home prices are rising quickly in Texas, but they remain low compared to some other hot markets, like in California, TenX notes.

“If you look at our report, probably eight or nine of the top 20 markets in terms of housing performance are in either Texas or Florida,” says Rick Sharga, executive vice president at TenX. “The Florida markets will be more directly impacted because Irma hit everything, but even in Texas, a lot of the construction and labor and materials and so forth that’s been going to build new properties in Dallas and Fort Worth and San Antonio might get diverted to rebuild Houston, and that could have a noticeable impact on home sales and home starts over the next six to nine months.”

Investors have had to shift course in many cities as the number of low-priced or foreclosed homes dries up.

“What they’re really looking to do now is make money on the month-to-month rent, so in a lot of cases they’re buying properties at full value,” Sharga told CNBC. “In some cases, they may even be slightly overpaying for properties, but they’re making it up in the rental income over the period of time.”

The following are the top 10 markets for investors, according to TenX:

1. San Antonio
2. Fort Worth, Texas
3. Dallas
4. Columbus, Ohio
5. Tampa, Fla.
6. Orlando, Fla.
7. Indianapolis
8. Austin, Texas
9. Nashville, Tenn.
10. Raleigh, N.C.

Source: “Want to be a Landlord? These Are the Top Markets This Fall for Investing in Rental Homes,” CNBC (Oct. 13, 2017)