Utah Multi-Unit ~2x Single Family in 2024

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Rates & Financing

> Mortgage Rates as of 12/26/2024

Property Management

 > Property Management Tip: Offering Flexible Lease Terms

Offering flexible lease terms can be a great way to attract a wider range of tenants, especially in fluctuating markets. Consider offering month-to-month leases, shorter lease options, or a lease renewal incentive. This flexibility can be particularly appealing to tenants who may be uncertain about long-term commitments, like young professionals or those in transition. In return, you’ll benefit from higher tenant retention, fewer vacancies, and potentially even the ability to raise rent more frequently as market conditions change. Flexibility can set your property apart and make it more appealing in competitive rental markets.

Headlines & Insights

Featured Story

> Economic, Housing, and Mortgage Market Review and Outlook for 2025 (FreddieMac)

Key Takeaways:

• The U.S. economy grew strongly in the third quarter of 2024, driven by consumer spending.

• Mortgage rates rose, slowing home sales and construction.

• Homeowners with low mortgage rates were protected from rising housing costs, while renters felt more of the impact.

Economic Overview:
The economy grew by 2.8% in Q3 2024, driven by consumer spending and government investments. The job market recovered from recent strikes and weather events, with 227,000 jobs added in November. Unemployment is at 4.2%.
Inflation is still higher than the Fed’s 2% goal, rising 2.8% over the year. However, inflation is slowing, and the economy is on track for stable growth without a major downturn.

Housing and Mortgage Market:

• Home sales stayed low due to high interest rates. Existing home sales rose slightly in October, but new home sales dropped to the lowest level since 2022.

• Housing construction also slowed, especially for apartments. However, builder confidence is rising, thanks to lower financing costs from recent Fed rate cuts.

• Home prices increased 4.4% from last year but are rising more slowly compared to 2022.

• Mortgage rates stayed high, averaging 6.81% in November, limiting affordability for many buyers.

Top Trends in 2024:

1. Strong Labor Market: Despite economic challenges, jobs continued to grow. Healthcare, education, and government sectors added the most jobs.

2. Interest Rate Fluctuations: Rates were unpredictable in 2024. They started high but dropped slightly after the Fed’s rate cuts in September. Rates are climbing again, finishing November at 6.81%.

3. Rising Homeowners’ Insurance: The average insurance premium rose 13.6% in 2024, adding to the financial strain on homeowners. Lower-income households were hit hardest by rising insurance costs.

Outlook for 2025:

• Economic growth will likely slow slightly but remain stable.

• Mortgage rates are expected to gradually decrease, boosting home sales and refinancing.

• Housing prices will keep rising but at a slower rate, helping more buyers enter the market.

• The labor market will continue to cool, and inflation should move closer to the Fed’s 2% target.

In summary, the economy is holding up well, but high mortgage rates and insurance costs remain challenges for buyers and renters. The outlook for 2025 is positive, with expectations for lower rates and modest growth in home sales.

More News & Reports

Utah

Ogden City Buys Historic Building for Artistic Affordable Housing Transformation: Ogden leaders have approved the $3.6 million purchase of a historic art deco building, formerly the U.S. Forest Service office, with plans to convert it into affordable housing specifically for artists. While the redevelopment could take up to two years to finance, the proposal includes 40-50 housing units in Ogden's arts-focused Nine Rails Creative District.

National

Treasury Yields Climb Amid Jobless Claims Data
The 10-year Treasury yield rose to 4.633% following new jobless claims data, with the market reacting to the Federal Reserve's revised outlook for fewer rate cuts in 2025.

Fed's Williams Confirms More Rate Cuts Possible Amid Economic Uncertainty
John C. Williams of the Federal Reserve Bank of New York stated that further interest rate cuts are anticipated, though future monetary policy will heavily depend on economic data. Despite recent cuts, Williams described current policy as restrictive, aiming to ease inflation pressures.

Families First: Homebuyers With Kids Receive More Financial Help: Homebuyers with children are more than twice as likely to receive financial assistance from family for down payments compared to those without kids, according to a Redfin survey. This support is critical as these families typically target larger, more expensive homes to meet their needs.

Top 10 Cities Ripe for Multifamily Investment: Despite a glut of apartments in many metros, Crexi and PwC spotlight ten cities as prime targets for multifamily investments. Chicago leads, thanks to its vast economy and lower living costs. San Diego and Columbus follow, benefiting from strong job markets and constrained housing supplies, making them attractive for investors looking for growth and profitability.

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