Immigration Boosts Renter Demand, Builder Confidence Is Growing

On The Market

BiggerPockets

Investing, Education, Business, News

4.8 • 859 Ratings

🗓️ 7 October 2024

⏱️ 34 minutes

🔗️ Recording | iTunes | RSS

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Summary

Did immigrants help keep landlords afloat during this tough housing market? New data may be pointing to just that. Today, we’re discussing one rarely mentioned housing market factor—immigration and immigrant renters. We’re talking about documented AND undocumented immigrants, asylum seekers, and what the effect of the massive influx in immigration has been on the renting market. John Burns from John Burns Research and Consulting, joined by VP of Demographics Eric Finnigan, is back on the show to discuss immigration, household formation, migration patterns, mortgage rates, and the effects each of these factors has on the housing market. With immigration exploding (we’re in one of the largest immigration years EVER), the next obvious question is: how is this affecting rents/available homes? John and Eric bring in new data to share how immigration may have “bailed out” landlords during the worst parts of the market. But that’s not all. We also touch on John Burns Research’s newest house-flipping survey and how flippers are surviving (thriving?) in today’s market. Why are builders becoming more bullish on the housing market? And could the recent mortgage rate cuts open the spigot of homebuyer demand in this already supply-constrained market? We’re digging into the data that answers these questions in today’s show. In This Episode We Cover The newest immigration and housing data pointing to some surprising conclusions for landlords Why immigrants crossing the southern border are NOT just settling in border towns How immigrants may have “bailed out” multifamily investors struggling to fill units New multifamily supply and why builders are becoming more bullish in today’s market Whether or not lower mortgage rates will lead to higher home prices The state of house flipping in 2024 and whether flippers are still making money And So Much More! Links from the Show Join the Future of Real Estate Investing with Fundrise Join BiggerPockets for FREE Find an Investor-Friendly Agent in Your Area Dave's BiggerPockets Profile U.S. Immigration Crisis: What It Really Means for Housing Markets and Investors Get on the List for John Burns Research: jburns@jbrec.com Fix and Flip Survey Master the Real Estate Formulas Before You Buy with “Real Estate by the Numbers” Jump to topic: 00:00 Intro 02:11 Immigration is Exploding 04:59 Why “Households” Matter 06:40 Immigrants Boost Demand 08:50 Landlords Got “Bailed Out” 11:47 MORE Multifamily Development? 15:58 Mortgage Rate Cut Implications 23:37 Are Flippers Surviving? 29:06 Grab the Data! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-258 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	The real estate market has been a challenge for a while.
0:02.5	We talk about this all the time on the show.
0:04.9	You probably hear a lot about supply and interest rates being high.
0:10.0	But today, we're bringing out a new but really important data set into the mix of your
0:15.4	understanding of what's happening in the broader housing market.
0:19.1	It's immigration and how the influx of new people coming into the country is impacting
0:24.3	the housing market.
0:25.9	And of course, we're still going to talk about interest rates and supply and all that as we
0:30.4	start to look forward to 2025.
0:32.9	But I think the new data that we're going to bring into this conversation is going to shed
0:36.8	new light and provide new insights into the housing market as we'll start looking forward
0:41.6	to 2025.
0:48.2	Hey, everyone, it's Dave.
0:49.9	Welcome to On the Market.
0:51.3	Today, I am joined by John Burns, who runs a company called John
0:55.6	Burns Research and Consulting. They are specifically focused on gathering and analyzing
1:01.2	real estate data. And he's even brought on a bonus guest, Eric Finnegan, who is the vice president
1:08.2	of demographics for the firm. And we're going to get into some new data and
1:12.4	research that they're doing that honestly, I haven't seen anywhere else and I think is going to
1:16.7	really help us all understand what we could expect in the years to come. We're going to be
1:21.9	talking about household formation, which if you don't know, is sort of like population growth,
1:27.1	but is actually a bit more important for the housing market than population growth.
	...

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