BPInsights LIVE with Dave Meyer

TL;DR

Dave Meyer discusses current rental market trends and BP Insights tool.

Transcript

hey everyone welcome to this Facebook live YouTube live event from BiggerPockets today we are going to be talking about all sorts of data about the rental market given the really unusual crazy state of the world right now what is going on so we're gonna be providing some up-to-the-minute data about what's happening in the rental markets happy to an... Read More

Key Insights

• Dave Meyer, VP of Growth and Analytics at BiggerPockets, provides a detailed analysis of the current rental market using up-to-date data.
• National rent prices are increasing slightly, contrary to expectations during the current economic climate.
• Deactivated listings are decreasing, indicating that lower-priced apartments are being rented out faster than higher-priced ones.
• The market shows a need for landlords to adjust pricing to attract tenants, with active listings needing to drop by $238 on average.
• There is a significant decline in new rental listings across major cities, with New York experiencing an 85% drop.
• The current economic situation is causing landlords to consider rent discounts of 5-15% to avoid vacancies.
• The timeline for economic recovery is uncertain, but government assistance is currently helping renters meet obligations.
• Dave Meyer encourages investors to keep an eye on potential opportunities due to market volatility.

Questions & Answers

Q: What is the current trend in national rent prices?

National rent prices are slightly increasing, which is surprising given the current economic conditions. Despite the expectation for prices to drop, the data indicates that rents have risen from about $1,945 to just over $1,980.

Q: Why are deactivated listings decreasing and what does it indicate?

Deactivated listings are decreasing, indicating that lower-priced apartments are being rented out more quickly than higher-priced ones. This suggests that landlords may need to adjust their pricing strategies to attract tenants, as the market shows a preference for more affordable options.

Q: How should landlords adjust their pricing strategy in the current market?

Landlords should consider discounting rents between 5-15% to remain competitive and avoid vacancies. The data suggests that active listings need to drop by an average of $238 before they find tenants, indicating a need for price adjustments.

Q: What is the impact of the current economic situation on rental listings in major cities?

There is a significant decline in new rental listings across major cities. For example, New York has experienced an 85% drop in listings coming off the market, highlighting a decrease in demand during the current economic downturn.

Q: What potential opportunities exist for investors in the current market?

Investors may find opportunities due to market volatility, as sellers might become impatient and offer discounts or seller financing. It's essential for investors to remain vigilant and explore potential deals that arise from the current economic conditions.

Q: How is government assistance affecting renters' ability to pay rent?

Government assistance, including stimulus checks and unemployment benefits, is helping renters meet their obligations. While some renters are behind, the situation is not as dire as some headlines suggest, with a 12% drop in rent payments compared to last year.

Q: What is the expected timeline for economic recovery in the rental market?

The timeline for recovery is uncertain, but it's expected that businesses may start reopening in May, with rehiring potentially beginning in June or July. The hope is that demand for rentals will increase over the summer, aiding in market stabilization.

Q: What advice does Dave Meyer offer for maintaining tenant relationships during this period?

Dave Meyer advises landlords to focus on maintaining good relationships with tenants by finding mutually agreeable solutions, especially if tenants were reliable before the pandemic. It's crucial to work together to navigate the temporary financial challenges caused by the current situation.

Summary & Key Takeaways

• Dave Meyer discusses the current state of the rental market, highlighting that national rent prices are increasing slightly despite the economic downturn. He introduces BP Insights, a new data tool for premium members.

• The presentation reveals a decrease in deactivated listings, suggesting a mismatch in market pricing. Landlords may need to adjust rents to attract tenants, with some markets seeing significant declines in new rental activity.

• Meyer provides insights into potential investment opportunities during this volatile period, emphasizing the importance of maintaining good tenant relationships and adjusting rents to avoid vacancies.