New: 🧠 Market Minds Issue #037

We appreciate each and every one of you for taking the time to read Market Minds. Buckle up and enjoy the free value - and you won’t want to miss the house that we’re sure you’ve seen on TV!

Gen Z Embraces Fixer-Uppers: Some Already Regretting It

As the real estate landscape continues to evolve, a fascinating trend has emerged: an increasing number of Generation Z homebuyers are considering fixer-upper homes as a viable option. A recent survey by Clever Real Estate reveals that about 57% of Gen Zers are open to purchasing homes that require some level of renovation.

This trend is driven by the potential cost savings associated with fixer-upper properties. According to data from StorageCafe, the median sale price of a fixer-upper is approximately $283,000—nearly 29% less than move-in ready homes. For young, budget-conscious buyers, this presents a unique opportunity to get a foot in the door of the housing market and customize their dream home to their specific needs and preferences.labor."

Key Areas to Inspect

As agents, it's especially crucial to encourage these buyers to conduct a thorough inspection to avoid unforeseen expenses and ensure the home's safety. Here are five critical areas to focus on:

• Roof: Check for leaks and potential water damage.

• Plumbing: Assess the age and condition of pipes and plumbing systems .

• Electricity: Evaluate the electrical system's condition and capacity to handle modern demands.

• Walls and Stairs: Inspect for structural integrity, including cracks and stability of stairs.

• Overall Land: Consider the land's condition and potential issues like flooding or land shifts.

The Rise of Build-to-Rent Single-Family Homes in the Sunbelt

The build-to-rent (BTR) single-family home market is rapidly expanding, particularly in the Sunbelt region of the United States. This phenomenon is not just a fleeting trend but a significant part of the housing market, with the National Association of Home Builders reporting that approximately 10% of new housing construction is now BTR properties.

The Epicenter: Southern States

The Sunbelt, especially the Southern states, has become the epicenter of BTR construction. According to a recent report by RealPage Analytics, out of 113,308 BTR units under construction in early November 2023, about 66,500 units, or 41%, were in the South. This figure significantly surpasses other regions like the Western U.S., which had 29,800 units (29%) under construction.

Population Migration Patterns

The South has seen a consistent influx of people for decades, a trend that the pandemic only accelerated. This migration is driven by several attractive factors:

• Affordability: Compared to other regions in the U.S., the South offers more affordable housing options.

• Job Opportunities: There is a robust and growing job market in the Southern states.

• Pleasant Climate: The warmer, sunnier weather is a big draw for many.

Got An Ugly Listing? Earn Easier with Offer Pilot

Unlock a lucrative opportunity with Offer Pilot's exclusive program for agents, offering a generous 35% of the fee on each deal you close.

For example, on a $50,000 deal:

• Standard Commission: $1,500

• Offer Pilot Agent Program: $5,250

This program is perfect for those challenging listings that might not have seemed worthwhile before—think distressed properties, inherited homes, or fixer-uppers. Don't let these opportunities slip away. Submit your deal below and maximize your earnings!

THE Full House

This iconic San Francisco, CA home can be yours for only $6.5M.

You HAVE to look inside, it may look a little different than the show, but it truly is stunning. ✨

TL;DR (Too Long; Didn’t Read)

A rising trend among Generation Z homebuyers is the preference for fixer-upper homes, with 57% open to purchasing properties that need renovation. This interest is fueled by the cost savings, as fixer-uppers are typically about 29% cheaper than move-in ready homes. For these young, budget-conscious buyers, such homes offer an affordable entry into the housing market and a chance to personalize their space. Additionally, there is a significant expansion in the build-to-rent (BTR) single-family home market, particularly in the Southern U.S., driven by factors like affordability, job opportunities, and a pleasant climate.

Have a great weekend - we’ll see you next Saturday.

Cheers 🍻

-Market Minds Team