The Light: Market Opportunities | John Burns Real Estate Consulting

The Light: Market Opportunities


Despite the tremendous economic distress caused by COVID-19, our clients continue to find strong renter and home buyer demand for newly built homes across the country. This week we highlight the markets and real estate segments where we are consulting most frequently.
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  • Tampa home buyers continue to take advantage of low mortgage rates, and COVID-19 issues have also caused renters to seek lower density rental environments. New home sales agents report they could sell more homes if they had more hours in the day.
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  • Nashville remains on the radar of both infill developers and apartment owners, even after the decade-long boom it experienced. Despite a strong concentration of health care and tourism, Nashville’s economy remains a magnet for young professionals and empty nesters/retirees and we have strong growth prospects in the longer term for the region.
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  • Atlanta has become a prime target for single-family rental communities with its strong population growth and increased in-migration. Atlanta’s single-family rents grew 6% over the last year—the second-fastest in the country.
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  • Phoenix builders pioneered the single-family build-for-rent space, and development and leasing activity there continues to soar. Nearly 30 actively leasing BFR communities there average a 96.0% occupancy rate. Most of these communities are considered horizontal apartments; we are seeing more traditional townhomes and detached homes planned and proposed.
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  • Salt Lake City housing demand is keeping its momentum. We have been writing about the “Great American Move” for weeks, and perhaps no market has benefitted as much as Salt Lake City, which was previously never considered a high-growth market. The recent migration of tech workers from higher-priced markets like Southern California and the Pacific Northwest has been fueling Salt Lake’s growth for years. This migration has created more of a tech-based economy, which has spurred work-from-home demand across the region.
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  • Boise has also benefitted from Northern California and Pacific Northwest migration and is even capturing some buyers priced out of Salt Lake City.
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  • The Inland Empire in Southern California and the outlying areas in Northern California from Sacramento to Gilroy have benefitted tremendously from renters driving further out to become homeowners.
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  • Austin, Dallas, and Houston all continue to boom as well, with Austin benefitting from tech migration and Dallas and Houston entry-level buyers benefitting from low mortgage rates.

How long can this continue? What other markets are hot? How can new home sales and new home rentals both be strong during a recession? We will be happy to discuss these questions and others with you.


Lesley Deutch If you have any questions, please contact Lesley Deutch, Managing Principal, at (561) 998-5814 or by email.
Ken Perlman If you have any questions, please contact Ken Perlman, Managing Principal, at (858) 281-7214 or by email.