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- Utah Multi-Unit Prices Surge 12.2% YTD; Bountiful 16-unit Listed for 3.2M;
Utah Multi-Unit Prices Surge 12.2% YTD; Bountiful 16-unit Listed for 3.2M;
This week in the Canovo Report…
👉 Median Sold Price for Utah Multi-unit up 12.2% YTD
👉 Bountiful 16-unit listed for 3.2M
👉 North Salt Lake Duplex sells for $517k
👉 Skyrocketing Rental Crisis Sets In
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Happy Investing,
David
// NEW MULTI-UNIT LISTINGS THIS WEEK
> Our team has analyzed these deals using our custom bulk property analyzer. If you’d like more detail regarding any of these listings, click the links below.
Canovo Group may not be the listing brokerage for the above properties. The information provided is not guaranteed and should not be relied upon to make investment decisions. Buyers should complete their own analysis and due diligence before making any investment.
// SOLD MULTI-UNIT LISTINGS LAST WEEK
> Here's a roundup of multifamily properties sold over the past week. We've estimated their selling cap rates using our bulk analyzer.
// FAIR MARKET RENT RATES
> Below you will find the current Fair Market Rents for each Metropolitan Area in Utah as published by HUD.
Fair Market Rents, as defined in 24 CFR 888.113 are estimates of 40th percentile gross rents for standard quality units within a metropolitan area or nonmetropolitan county.
// UTAH MARKET SNAPSHOT
> Utah Multi-Unit (2+ units): Median Sales Price - June 2024
The median sold price for multi-unit property is up 12.2% year to date going and up 17.05% in June compared to June 2023.
Source: wfrmls
// INTEREST RATES & FINANCING
> Mortgage Rates as of 7/3/2024
Source: mortgagenewsdaily.com
Sponsored by: Spencer Allen | Trillion Mortgage NMLS #2296408
// TOP HEADLINES, REPORTS, & INSIGHTS
Renters in the U.S. must earn $66,120 annually to afford a median-priced apartment, but most only make $54,712, creating a significant affordability gap.
Main takeaways:
The income needed to afford the typical apartment is at its highest point since 2022, with median asking rents nearing record highs.
Only 39% of renters earn enough to afford median-priced apartments, with affordability being especially challenging in major metros like New York and Miami.
Despite some cities seeing a drop in rents, the overall trend points to a widening gap between wage growth and rent costs, suggesting ongoing housing affordability issues.
Tides Equities, a significant player in the Texas multifamily market, is grappling with foreclosures across its Dallas portfolio as elevated interest rates challenge its financial stability.
Main takeaways:
Foreclosure Challenges: Two of Tides Equities' properties in Dallas, Tides at Whispering Hills and Tides on Lawler East, are slated for a foreclosure auction, highlighting ongoing financial difficulties.
Expanding Foreclosure Issues: This brings the number of Tides' properties in the Dallas-Fort Worth area facing foreclosure or returned to lenders to five, indicating deeper troubles within its expansive portfolio.
Market Pressures: After acquiring nearly 15,000 units in Texas during a period of low interest rates, Tides Equities has struggled with debt repayment as rates surged, leading to increased financial strain.
Opus Green introduces a new wave of eco-friendly townhomes for sale in Millcreek, shifting away from the prior rental model amidst Utah's booming housing market.
Main takeaways:
The development features 139 units with two and three bedrooms, emphasizing energy efficiency and proximity to nature, priced below the area's median.
Initially planned as rentals, the majority of Opus Green homes are now for sale, responding to local demand and a shift in housing policy favoring ownership.
Millcreek's strategic location near transit lines and a new park showcases a broader trend of sustainable living and denser housing solutions in suburban settings.
With existing home inventories at a 30-year low, potential homebuyers are increasingly turning to new construction as a viable alternative according to the report provided by the Joint Center for Housing Studies at Harvard University
Main takeaways:
The supply of existing homes for sale has significantly dwindled, leading to an increase in new home sales, which now represent 15% of all single-family home sales.
The "lock-in" effect is causing homeowners to hold onto properties due to favorable historical mortgage rates, contributing to the low availability of existing homes.
Efforts to ease the housing shortage include changes in zoning laws, innovative construction methods, and government initiatives to reduce regulatory barriers and promote diverse housing solutions.
I hope you found this weeks report valuable. If you have any questions, feedback, or if I can serve you in any way, don’t hesitate to reach out!
David Robinson
Principal Broker/Managing Partner
> Whenever you’re ready there are a few ways I can help you:
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