Inflation's Surprising Impact: Homeowners vs. Renters

Bank of America Study Insights on Inflation

New data from Bank of America shows that inflation is affecting renters more than homeowners. One of the key findings of a study from Bank of America is that renters are spending less on expenses outside of housing compared to homeowners. This doesn't come as a surprise, considering that rents continue to increase nationwide. This will obviously have a more significant impact on renters than on homeowners, who typically have a fixed-rate mortgage. One of the advantageous aspects of our country's housing market is the availability of 15-year and 30-year fixed-rate mortgages.

This allows homeowners to weather periods of high inflation without being…

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Huntsville, Alabama Top 5 City To Lead a Rich Life


Wanting to live a rich life? Well, you're in the perfect place! Huntsville is one of five surprising cities where you can lead a rich life, enjoying everything it has to offer, including affordable housing and a great income.

U.S. News & World Report ranked Huntsville, Alabama as the “Best Place to Live” in 2022 and ranked Huntsville #2 in 2023, which GoBankingRates factored into ranking Huntsville as one of the five surprising cities “To Live a Rich Life”. Some key factors that contributed to this ranking are: being one of the fastest-growing metros in Alabama, having a strong job market, a cost of living that is below the national average, an excellent school district, a vibrant downtown,…

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Huntsville Approves More Apartments


Huntsville recently issued an $18.6 million building permit for yet another apartment complex in the area. Investors seem to be banking on increased demand as there are more announcements of job growth in the area and a shift towards a 'Renter Nation' amid a 50-year low in homeownership across the US. Typically, when you have new jobs coming to the area, oftentimes people will rent for the first six months or a year to learn the area before they buy, which seems to be what investors are banking on.

It definitely feels like we have way too many apartments in the Huntsville, Alabama marketplace and it's going to be really interesting to see what happens. Obviously, this investor is getting their building permits…

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Home Prices Hit New Highs in May 2023

In a surprising turn of events, home prices have soared to record heights in May 2023, according to the Black Knight Home Price Index. As we explore the reasons behind this surge, we uncover two significant factors influencing the housing market. A decline in new listings, coupled with the growing acceptance of higher interest rates among buyers, has contributed to the present situation. But where is the demand coming from amidst high prices and limited supply?

Why Prices Are Surging & Current Median Home Price

According to investment firm Black Knight Home Price Index, home prices hit a record high in May. Currently, 2023 is on pace to have about an 8.9% appreciation, which is not far off from some of…

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Zillow Weighs in on Housing Crisis: A Closer Look at the Challenges & Solutions



The housing crisis in our country has reached a critical point, and Zillow has stepped in to shed light on its severity. Many economists have attempted to determine the size of this crisis, with estimates ranging from 2 million to over 6 million homes. Zillow came up with a pretty common-sense approach and the number they came up with was about halfway in the middle, which was 4.3 million homes.

I really like the approach that they took which was based on their search volume and their search portal, alongside assessing the current housing demand. According to their findings, they believe there are 8 million families across the US in need of housing. However, the…

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Secure Your Future: Beat Inflation With Real Estate

“You will own nothing and be happy.” Owning nothing and being happy sounds like a crazy quote, but it seems to be coming to fruition in everyday life and you don't want to allow this to happen to you as an individual or as a family. Consider simple things we used to own, like VCRs and DVDs for movies. Nowadays, we merely rent a streaming service from Netflix or a movie from Amazon. These seemingly insignificant changes are contributing to more substantial shifts, like the declining rate of home ownership.

In a world where owning nothing seems like a radical concept, it's essential to consider the implications it might have on your future. As we witness shifts in everyday life, such as the…

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Is A Real Estate Bloodbath Coming? Insights and Potential Impacts



Is a real estate bloodbath coming? Barbara Corcoran, a real estate investor and a Shark Tank personality, recently stated that we are likely to experience a bit of a real estate bloodbath before this thing gets better. It's important to note that she is specifically referring to commercial real estate, not residential properties. The state of commercial real estate across the country is in significant trouble.

A Substantial Drop For Commercial But Not Residential

Barbara further explained that she believes we may witness a substantial 40% drop in commercial real estate values before they stabilize. I think she may be right, particularly on a national scale. However, locally, it is…

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Is Huntsville the Worst Alabama City to Invest in?

Is Huntsville the worst city in Alabama to invest in? You might be surprised by the answer. A recent study utilizing data from Zillow has raised some concerns about the investment potential of properties in Huntsville. While the study focuses primarily on cash flow, it overlooks a crucial aspect of investment properties—appreciation. In fact, when you consider the strong appreciation rates and the multiplier effect of leveraging your money in Huntsville, this city emerges as a top contender for high returns. So, before dismissing Huntsville as an unfavorable investment destination, let's delve deeper into the factors that truly matter for investors.

Considerations in Zillow Study

Cap…

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Housing Starts Surge and Builder Confidence Increases in May

In May 2023, there was an impressive 8.5% month-over-month increase in single-family housing starts. However, compared to the previous year, there was a decline of 6.6%.

There is also good news regarding building permits, which saw a 4.8% month-over-month increase. This indicates positive prospects for future housing supply in the country. Builders are currently more confident about the housing market, as reflected in a 5-point month-over-month increase in builder sentiment. Their confidence stems from the improvement in the supply chain and the high demand for housing, despite elevated interest rates.

Builders are currently feeling extremely confident in housing demand and expect…

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Affordable Housing Crisis Continues to Widen

Median Family Income & Housing Supply

You know we're facing a housing crisis in this country, but how is that affecting the average family in the US? The median family income in the US is sitting at $75,000. By definition, that means 51% of the family households in the US are making $75,000 or below. Taking into account today's interest rates, a family with the median income can afford to purchase a home priced at $256,000. For the housing market to be balanced and to be affordable, we would need 51% of available housing in the US to be at or below that $256,000 price point. Unfortunately, we're nowhere close to that here in the US.

We're at less than half of that, we're actually sitting at…

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