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Canovo Group Newsletter - JULY 2023

Canovo Group Newsletter - JULY 2023

Cap Rates Up 287 Basis Points, Median Sale Price Down 10.2%, Utah Investment Real Estate At-A-Glance 📈

July 04, 2023

Dear ,

I wanted to share the latest edition of our Utah Investment Real Estate Market Update with you. Our aim is to provide you with valuable insights that go beyond the typical information available. We hope these regular updates and weekly listing alerts will be helpful in navigating the Utah real estate market.

We're constantly working to improve and provide the best content for our Utah Investor Network. If you have any suggestions or feedback on how we can enhance our updates, please don't hesitate to let me know. Your input is highly valued.

If you find the information we provide valuable, we encourage you to share it with a friend who might benefit from it too.

By the way, if you have any questions about buying or selling investment property in Utah, I'd be more than happy to schedule a brief strategy call with you. Just click here to book a convenient time slot.

Thank you for being a part of our network, and we're excited to assist you with your investment needs.

Best regards,

David Robinson

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Utah Market Statistics Summary for May 2023

Top Headlines, Reports, and Articles

Salt Lake City in Top 4 Cities with All-Time High Apartment Inventory Growth

The U.S. apartment market has experienced significant construction activity, leading to record-high inventory growth in several key markets. Among the top 50 apartment markets in the country, 10 witnessed inventory growth rates of 3% or higher in the first quarter of 2023. Four markets, including Salt Lake City, stood out with their all-time high growth rates.

Key takeaways:

Jacksonville and Tampa in Florida have experienced significant apartment construction activity, with both markets achieving all-time high growth rates in inventory.
Salt Lake City has seen a surge in apartment completions, translating to an all-time high inventory increase of 4.1% in the past year, and it is expected to continue with a growth rate of 10.5% in the coming year.
Phoenix, the largest apartment market on the list, reached an all-time high growth rate of 4.1% with the completion of over 16,000 units, with several submarkets witnessing inventory growth of more than 10%.

Source: Kim O’Brien - RealPage.com

Fall in Airbnb Listing Revenues Sparks Fears of Short Term Rental Market Crash

According to recent data from AllTheRooms, revenues per listing for Airbnb have dropped by nearly 50% in cities like Phoenix and Austin, leading to concerns that it could trigger a housing market crash similar to the 2008 subprime crisis. However, economist Jamie Lane from AirDNA, a company that tracks short-term rental performance, argues that the data from AllTheRooms is inaccurate and that revenues per listing have actually dropped by just above 3%.

Key takeaways:

Revenues per listing for Airbnb have reportedly dropped by nearly 50% in cities like Phoenix and Austin, raising concerns about a potential housing market crash comparable to the 2008 subprime crisis.
Economist Jamie Lane disputes the data, arguing that the drop in revenues per listing is around 3% rather than 50%. Airbnb itself also challenges the data, claiming that more guests are using the platform.
Some experts, like Nick Gerli, believe that the decline in Airbnb revenues could lead to a wave of forced selling by homeowners who had listed their properties on the platform, potentially causing a housing bust in certain cities.

Source: Giulia Carbonaro - Newsweek.com

Utah Real Estate Company Settles for Millions After ‘Deceptive’ Investment Workshops

A real estate investment company based in Utah, Response Marketing and Nudge LLC, an affiliate, along with two associated celebrities, Dean Graziosi and Scott Yancey, have agreed to pay $16.7 million in what officials claim to be the largest consumer protection settlement in the state's history.

Source: Kyle Dunphey - Deseret.com

National Rent Growth Stalls as Rental Market Hits Milestone: July 2023 Apartment List Report

The rental market hit a big milestone this month, as national rent growth is finally flat year-over-year after nearly a year of deceleration in the rental market. This means that on average across the nation, apartments today are renting for the same price they did one year ago.

Source: apartmentlist.com