October 6, 2025 • 31 mins
In episode 29, Pat and Zach are back with another episode of Real Estate News to unpack three major housing & credit headlines you need to know right now:
- Reporting Rent Payments: More renters are using their monthly payments to build credit. What does that mean for tenants and landlords? Read more: https://www.cnbc.com/2025/09/15/using-rent-payments-to-boost-credit-score.html
- New Homes vs. Existing Homes: For the first time in decades, new construction is selling for less than existing properties — by nearly $40K. What’s driving this rare flip? Read more: https://www.forbes.com/councils/forbesfinancecouncil/2025/09/16/the-role-of-direct-investment-opportunities-in-the-ai-revolution/
- Mortgage Rates Drop Sharply: The Fed hasn’t even cut rates yet, but mortgages just hit their lowest level since 2022. Read more: https://www.cnbc.com/2025/09/16/mortgage-rates-drop-to-3-year-low-ahead-of-fed-meeting.html
The guys break down what these shifts could mean for buyers, renters, and investors. Don’t miss their takes, insights, and a few laughs along the way.
Follow and subscribe so you never miss the latest in real estate trends, tips, and market moves. Got a question you want answered on air? Email us at questions@therentishpod.com
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
SPEAKER_11 (00:03):
What's going on, everybody?
Welcome to season two of theRentish Podcast.
I'm Zach and I'm here with myco-host Patrick.
SPEAKER_06 (00:10):
We're two rookies chasing the dream of real estate
investing.
In this podcast, we'll talkabout property management, wild
stories, and everything inbetween.
We don't know it all yet.
SPEAKER_11 (00:20):
But that's the point.
We're learning as we go, justlike you.
We'll bring in the experts toeducate and inform us and we'll
figure it out together.
So let's laugh, learn, and diveinto real estate side by side.
Uh thanks for listening to theshow.
If you've listened this far, weappreciate you and uh thank you
for hanging out with us.
If you want to follow the show,you can do so in a bunch of
different ways.
We're available on basically allpodcast platforms out there.
(00:40):
Just go to your podcast serviceof choice and search The
Rent-ish Pod.
And while you're there, give usa like, give us a follow, give
us a subscribe, hit thenotification bell to be notified
when new episodes drop.
And go on social media andfollow us at The Rentish Pod.
And also email questions attherentish pod.com.
All right.
Well, property management realestate, everybody.
(01:01):
Hey, it's what we're here totalk about.
Y'all love it.
Uh Patrick, I think we're gonnaget uh into the news on this
episode.
Is that right?
SPEAKER_06 (01:08):
Yeah, so we're gonna do some real estate rundown, I
think is the I don't know ifthat is that the official name?
Yeah, the new official name ofthe news segments.
Yeah, they didn't like realnews.
SPEAKER_11 (01:20):
Or what was it before?
We called it real news realnews, like for real estate, and
they were like, that's awful.
It's really bad.
It's like, all right, seasontwo, brand new, brand new
segments.
SPEAKER_06 (01:30):
I mean, real estate rundown isn't terrific either,
if I'm being completely honest.
Damn.
But it's better than real news.
No, it's better than real news.
Real estate rundown.
It's you know the RER.
Your alliterative R.
The RER.
We're gonna get into the RER.
Real estate rundown.
Yes, we're gonna talk about thethree biggest headlines in real
estate that you need to know.
(01:51):
We'll give you the quick hitsfirst and break down what they
really mean for renters,investors, and anyone keeping an
eye on the market.
So making waves this week.
Article one will be on rentreporting from CNBC.
The topics rent payments beingreported to credit bureaus.
Renters could soon see theirmonthly payments impact their
credit scores, changing the waythat credit worthiness is
(02:13):
calculated across the US.
Article two is mortgage rates,also from CNBC.
Topics about rates droppingahead of a Fed cut.
Mortgage rates are dipping asinvestors anticipate a Federal
Reserve rate cut, making it apotential sweet spot for home
buyers.
And article three is new versusexisting home prices.
(02:33):
It's an article from Forbes.
New homes are now cheaper thanexisting homes for the first
time in years.
Uh they're being sold at lowerprices than existing homes,
shaking up the housing marketdynamics.
So that's what we'll bediscussing today.
SPEAKER_11 (02:47):
Those articles all seem interesting things that I
would like to read with myeyeballs.
So well said let's get into it.
You want to get into it?
Yeah, let's do it.
All right, I've got number onehere.
So uh I'm gonna re I'm gonna hityou with reporting rent
payments.
So more renters are reportingrent payments to credit bureaus.
Here's what to know.
Again, this comes from CNBC, soyou can check out the article
there.
I'm not sure if what do we linkthe articles in the description
(03:09):
of the of the episodes?
Cool, we do that.
That's nice.
Oh so go to the description andclick on the article if you want
to read along with us.
But basically, the gist of it isthat more renters are now using
their rent payments to build orimprove their credit scores.
According to a new trans unionsurvey, the share of renters
whose rent payments are reportedto credit bureaus increased to
13% in 2025, which is up 11% in2024.
(03:33):
From 11% in 2024.
Excuse me.
It's like, what happened?
SPEAKER_12 (03:37):
Went from 2 to 13.
What happened?
SPEAKER_11 (03:41):
The survey conducted in March with 2006 renters shows
that while adoption is stillrelatively low, patience is
growing, especially amongyounger renters.
Experts say reporting rent canboost credit scores
significantly, but the benefitsdepend on how the services are
structured and whether renterscan keep up with payments.
Patrick, before we get into kindof like the the who, what, when,
(04:01):
where, and the why and all thatstuff, have you heard of
services like this that arebasically like doing like like
rent reporting and like I have Ihave heard of it, yeah.
SPEAKER_06 (04:10):
I think it's it's getting more popular, it seems.
Yeah.
I guess the article uh backsthat up.
But I I I hadn't heard of ituntil like maybe the past two
years or so.
SPEAKER_11 (04:20):
I let me tell you, I you know, I'm not sure if we're
gonna call out any of thespecific companies that do such
a thing, but I've heard the sobleep this out, producers.
I've heard the built ad onbasically every podcast I
listened to recently where it'slike tenants love paying rent.
It's like make your rent workfor you and but play with built
or whatever, and it's like getrewards and whatever.
(04:41):
And so it's like incentivizinglike do like doing more with
your rental payments, and Ithink that impacting your credit
score is part of that orwhatever.
So it seems like they're tryingto gain get get that audience to
grow.
They're advertising on likepodcasts and I think probably
YouTube ads and stuff like that,but they're out there, they're
they're probably everywhere.
Uh so you've you've heard of theI know built.
SPEAKER_06 (05:00):
I have a friend who's trying to get me to get
the built card.
Oh, it's a card.
I mean, there is a card.
Yeah, I mean, I think there's awhole program for it.
I know the built card allows youto pay your rent and get cat,
like get cash back on it, Iguess.
Because they they they allow youto use the card, but like they
give you an accountant routingnumber so you can pay it as
though it were ACH.
Huh.
SPEAKER_11 (05:20):
Okay.
Well, why it matters.
So rent reporting services trackpayment history and share it
with one or more of the threemajor credit bureaus.
So there's Experian, Equifax,Trans Union.
Uh, this could be especiallyvaluable for credit invisible
consumers, uh, so people whohave little to no credit
history.
So basically, the idea in thatrespect would be that young
(05:41):
renter, invisible credit file,doesn't have a whole lot of
stuff to back up.
They're maybe relatively new,just turned, you know, of age to
be able to get a credit line andstart building up credit
history.
The idea that, you know, thesekids are going off to college
or, you know, you renting yourfirst apartment, and you can
suddenly start making an impacton your credit and developing
that line of credit and buildingit, keeping it maintained,
(06:02):
keeping the score high withouthaving to have this extensive
credit history like a lot ofpeople just kind of stumbled
into.
So yeah, kind of a cool, kind ofa cool concept.
Transunion found including rentpayments and credit reports can
raise scores by an average of 60points, giving renters a
stronger foundation for securingloans, mortgages, and credit
cards.
Yeah.
I mean, that's cool.
Yeah, very cool.
(06:22):
What do you do to manage yourcredit?
What do you mean, what do I do?
SPEAKER_06 (06:25):
I pay my uh I pay my credit card bills on time.
Yeah.
Like you don't take advantagesof any extra services that are.
Well, yeah, I mean, if if it'swhat you were getting at, he's
like, yeah, I actually am signedup for like the credit reporting
on uh to when I pay my rent.
Oh, really?
Yeah, it's just like the freethe free version.
So I it's only going to one ofthe bureaus, I think.
But um yeah, I'm on that.
I mean, I I pay my rent on time,you know.
(06:46):
I I I monitor to make sure thateverything's reporting
correctly.
So yeah, I mean it's just likemight might as well.
Okay, you know, um, since Isince I know that I am somebody,
I've got it set on autopay, youknow, I know I know I'm making
my payments, so I'm like, itcan't really hurt.
Yeah.
SPEAKER_11 (07:01):
Yeah, I uh I I agree with all of that.
I also maybe it's just a forceof habit, but one of the very
first apps I ever downloadedwhen I got an iPhone and I
started like messing around withcredit cards and stuff when I
was in like high school goinginto college was credit karma.
Yeah, yeah.
Um, and that's been around for along time at this point, but
they have like tips, tricks, andsuggestions for boosting credit
(07:22):
rates as well.
That's like one of those liketypical like weekly checks.
Like just out of force of habit,I'll open the credit karma app
and just be like, I wonder whatmy credit score is like right
now, even though it's alwaysaround the it's like always in
the same area.
SPEAKER_06 (07:34):
So yeah, the company I bank with, Capital One, they
have like a credit, I think it'scalled credit wise, like right
on the app, so I can seeeverything on that, which is
really helpful.
I I do check up on that.
Maybe like you said, once a weekor once every two weeks.
SPEAKER_11 (07:47):
Yeah.
SPEAKER_06 (07:47):
So who is reporting rent?
SPEAKER_11 (07:49):
Generationally, younger renters are leading
adoptions.
So 18% of Gen Z renters reportedrent payments in 2025.
This is down from 26% in 2024,but still the largest share.
That's an interesting jump.
If 26% of Gen Z renters werereporting rent payments in 2025,
what the heck happened that itdropped all the way down to 18%?
(08:11):
They started reporting it andthen they were like, wait a
second, nah, never mind.
We're just gonna take that away.
16% of millennials reported rentactivity, and then 12% of Gen X
and 8% of baby boomers are also.
I guess that makes sense.
SPEAKER_06 (08:23):
I mean, the younger you are, probably the more
inclined you are to build yourcredit.
SPEAKER_11 (08:27):
You might be just more informed generally, too.
Yeah, or like that, yeah.
I bet you if you compiled a listof baby boomers into a room and
said, How many of you realizethat you could be reporting your
payments for rent?
Well, a lot of baby boomersprobably pay more.
SPEAKER_03 (08:42):
Could you report mortgage payments and build your
credit?
SPEAKER_11 (08:45):
I mean, mortgage payments are like that's
automatic because it's a loan,it's by default.
You're right, you're right,you're right.
So it really is just the rentalpayments.
So it's like you have to findthe rare baby boomer that's also
renting.
SPEAKER_06 (08:56):
Yeah, I also wonder if if these percentages are
about baby boomer renters orjust baby boomers in general.
SPEAKER_11 (09:01):
Yeah, that's that would be an interesting thing to
know if it was like specificallyfor renters or not.
But yeah, Gen Z made up 15% ofrespondents in the transunion
survey.
Millennials are about 28%, Gen Xis 30%, and baby boomers are
27%.
So some solid numbers there, andyou get some really interesting
takeaways there.
But yeah, it definitely seemslike it's SKUs young for these
reporting services.
All right, what to considerbefore signing up?
(09:23):
So there's a few things that youneed to take into account here.
So experts caution that not allrent reporting services work the
same way.
Renters should ask a few keyquestions before enrolling.
Number one, do you need it?
If you already have a strongcredit history, reporting rent
may not take a major difference.
So for those with thin or nocredit files, the impact can be
substantial.
But if you have a strong credithistory, this might not boost it
(09:44):
as much as you think it would.
So you might not even need it.
Number two, what's the cost?
Some services are free, butothers charge between$6.95 and
$9.95 per month with possiblesetup fees of$25.95.
So there can be some prettycostly services out there that
do this sort of thing.
You got to know which bureausare included.
We kind of covered that already.
What gets reported?
Some services report onlyon-time payments, some report
(10:07):
late payments.
So it's like you got to makesure that you really read the
rules and stipulations of thesekinds of services.
And then how do you cancel?
So you got to be on top of it.
And just like a personal hottake thing.
I don't understand how there'sthis many people that forget to
cancel their subs for likeanything.
Yeah.
Like they have these commercialswhere it's like, do you not
realize how many subscriptionservices you're subscribed to?
(10:28):
And it's like blah, blah, blah,can help you find all the things
you're subscribed to.
I'm like, I know exactly whatI'm subscribed to.
Yeah, right.
I know exactly how much I'msubscribed to and how much it
costs me every single month.
It's like, do you think thatthere's just people out there
that just are subscribed toeverything?
Yeah.
SPEAKER_06 (10:42):
And they just forget what they're just auto-p put it
on auto pay and just, yeah.
Yeah.
I think it's probably morecommon than I would than I would
think.
That's crazy.
SPEAKER_11 (10:49):
Producer Musei says he doesn't think most Americans
budget.
It's interesting.
Could be an interesting articleto put it in the news segment
one of these days, is budgetingbudgeting practices of Americans
and renters or homeowners,whatever, you know?
Yeah.
Pat, a couple questions for youbefore we move on to the next
article.
Uh, do you think landlordsshould be should automatically
report rent payments to creditbureaus for tenants, or should
(11:09):
it always be optional?
SPEAKER_06 (11:10):
So, my opinion is is it should always be optional.
I think because like payingrent, like that's you know,
unless you can buy, everyoneneeds to pay rent to live
somewhere.
Yeah, and that to me isdifferent than opening a credit
card or like going to the bankand taking out a loan, you know,
which is like the traditionalthings that credit would be
reported to.
I don't think it should bydefault be reported for
(11:31):
something like renting that youhave to do anyways.
I get why some people mightmight think that.
I just personally disagree withit.
But I think like offering thatoption to tenants who might, you
know, who are making these hugepayments that aren't a
traditional loan and being ableto build their credit in like
the sort of more non-traditionalway, I think is really can be
really helpful.
SPEAKER_02 (11:51):
Okay.
SPEAKER_11 (11:51):
Yeah, I agree.
I think that it in uh in a caselike that, I would be a little
bit I would favor the tenants'freedom to kind of make that
decision on their own.
Yeah.
Obviously, I think a lot oflandlords could be in the right
space for that, but you alsodon't want to do that sort of
thing without like having thatother half consent to it.
Right.
Because there's a lot of factorsyou may not be taking into
(12:13):
account.
SPEAKER_06 (12:13):
Well, I think like with landlords, maybe like their
main incentive to want torequire tenants is to
incentivize tenants to pay ontime.
That way, if they pay late, it'sgonna impact your credit.
You know, I I get that argument.
I think a counterpoint would belike, oh, there's a lease
agreement if they're not payingon time, you know, like they're
breaking the agreement and thenother or you know, there's
already threats in place.
But yeah, that's just myopinion.
SPEAKER_11 (12:34):
Yep.
I'm totally on that with you.
But uh yeah, so just to kind ofwrap this article up, Matt
Schultz, uh chief credit analystat Lending Tree, had a had a
quote the the more that you cando to improve your score, the
better it is for your overallfinancial situation.
That was his quote there.
So the more the better the moreyou can do, the better your
credit is.
Thanks, Matt.
(12:55):
Appreciate it.
But uh genius.
Yeah, but but uh Shishi Woo ofthe National Consumer Law Center
warned went renters to weighrisks.
She says, quote, if you wereconcerned about your job and
unsure if you're going to beable to make your rent payments
six months from now, maybe it'snot the best time to sign up.
End quote.
So we got we got some twodynamite quotes here from the
(13:18):
producers.
So thank you guys for puttingthose in there.
Rent reporting can be a powerfultool, particularly for younger
renters and those buildingcredit from scratch, but it's
not risk-free and may not beworth the cost for those with
established credit history.
So do your research.
As we always say, do yourresearch.
All right, Pat, what you got forme?
SPEAKER_06 (13:35):
All right, next up we have an article by Forbes.
New homes are now cheaper thanexisting homes.
Here's why.
For the first time in decades,the US housing market has
flipped.
New homes are selling for lessthan existing ones.
In June, the medium sale pricefor an existing home was
(13:55):
$441,500, while the median pricefor a new home was just$401,800.
That makes sense.
Did I say those numbers right?
SPEAKER_11 (14:07):
I think you numbered just fine.
SPEAKER_06 (14:09):
441500 versus 401800.
SPEAKER_11 (14:12):
I get it.
SPEAKER_06 (14:13):
We follow?
SPEAKER_11 (14:14):
Hey, here's my lizard brain in action.
Is as soon as numbers get intothe hundred thousands, it
becomes exponentially hard toread them.
SPEAKER_06 (14:23):
Yes.
SPEAKER_11 (14:23):
Like, I don't like reading$441,500.
That sounds awkward.
SPEAKER_06 (14:28):
But you said it really seamlessly.
I feel like I didn't.
You did a good job.
I think you did fine.
The bottom line, Zach.
Yeah, the bottom line.
However, you want to say thosenumbers.
The bottom line is there's a$40,000.
That's a number I can say.
$40,000.
Yeah, easy.
There's a$40,000 gap, and it'sunprecedented.
SPEAKER_11 (14:48):
Unprecedented.
SPEAKER_06 (14:48):
Since uh 1968, new homes have only been cheaper 22
times.
I don't know what that does thatmean like 22 months or that's
interesting.
SPEAKER_11 (14:56):
Yeah, new homes have only been cheaper 22 times.
Maybe it means that becausewe're always in a state of
basically inflation has alwaysgone up since the beginning of
time.
SPEAKER_05 (15:05):
Yeah.
SPEAKER_11 (15:06):
And then it's like you'll have dips where it drops
down or like prices kind ofscale back a little bit.
So maybe the housing that mediumprice has only reduced 22 times.
I don't know how long thatstretch of period is that it did
reduce, but it means that$441,500, that was like a medium
price at one point, and then itscaling back at all is is
(15:28):
considered one of those 22times.
SPEAKER_06 (15:31):
Seven of those instances have occurred since
May of 2024, though.
Where new where new homes havebeen cheaper?
So seven of the 2020 22 timesthat new homes have been cheaper
than existing homes has been inthe past like basically year,
year and a half.
SPEAKER_11 (15:45):
Well, I mean, that says to me that we're in a time
of economic uncertainty.
Let's let's call it that.
SPEAKER_07 (15:50):
Yeah.
SPEAKER_11 (15:51):
Where it's like economics are constantly
changing and fluctuating.
And I think that that thatprobably me makes a lot of sense
why there's been so many sorecently.
SPEAKER_06 (15:59):
Yeah.
The this June discount wasespecially drastic.
The new homes, new homes soldfor 9% less than existing ones,
uh, shattering the previousrecord, which was a 3% less.
Okay.
So um experts say the anomalycomes down to builder
incentives, changing homedesigns, and a glut.
That's a that's the word of theday.
(16:20):
So I I don't I don't use thatword, it's not part of my
vernacular.
SPEAKER_11 (16:25):
No, it doesn't sneak in there often, but it's a good,
it's a good word.
It's very aggressive sounding.
It's like it's a glut of newconstruction.
SPEAKER_06 (16:31):
Glut of new construction.
And not necessarily a preferencefor older properties, which I I
think what I might have assumedbefore reading the article is
that like, oh, more people wantolder properties with like, you
know, maybe more character orhistory or whatever.
Yeah, sure.
But it seems like it's it morehas to do with with the the
manner in which the new homesare are being built, which also
(16:53):
makes sense.
SPEAKER_10 (16:53):
Yep.
SPEAKER_06 (16:54):
Historically, new homes almost always cost more
due to updated finishes, modernlayouts, obviously, no like wear
and tear from previous owners.
Right.
But since April 2024, the trendhas persisted each month, fueled
by aggressive builder strategieswhere new homes undercut the
existing ones.
SPEAKER_11 (17:12):
So tell me, Patrick, why are builders kind of cutting
down these prices then?
Like, why are these scalingback?
SPEAKER_06 (17:16):
So 60% of builders have offered perks like mortgage
rate buy downs, closing costhelp, upgrades, according to the
National Association of HomeBuilders.
So those incentives basicallypoint home buyers to purchase
newer homes to basically getthese sort of discounts that
they wouldn't get on you knowexisting older homes.
(17:40):
That's interesting.
And 30% of builders lowered thesticker prices outright, which I
wonder why.
Yeah, that seems kind of kind ofcrazy.
SPEAKER_11 (17:47):
I don't 30% of them were like, all right, whatever.
Yeah, discount Tuesday.
Come and buy the house for 30%less.
Yes.
SPEAKER_06 (17:56):
Well, I it's part of it might have to do with the
shrinking home sizes as well.
The average new home has droppednearly 400 square feet since
2015, now averaging about 2.3thousand square feet.
But I think that's somethinglike with newer homes, the
average newer home going down insize, that you know, obviously
would decrease the the medianprice of the newer homes.
(18:18):
Despite slimmer margins, though,publicly traded builders are
holding strong.
The SPDR SP home builders ETF,say that five times fast, is up
12% this year, uh beating thebroader SP 500's 10% gain.
SPEAKER_11 (18:31):
Now I'm no I'm no stock expert, and I don't want
to, we're not a financialpodcast per se.
But I do think the spider SPhome builder ETF is one of the
general ETFs.
I I have like an investmentportfolio where it just like
takes like small little amountsof like spare change and like
invests it into these differentETFs that are like generally
(18:53):
pretty safe, like long-terminvestments that build up over
time.
And the home builders one mightbe one that I've I've put like a
little bit of money in to justlike have gained money over
time.
SPEAKER_06 (19:03):
Well, I wonder if the the point that the article
was making with that stat wasthat it's not that new
construction is in trouble.
Yeah, it seems like it's it'sdoing well.
Yeah, it seems it's doing verywell.
And the prices are are goingdown compared to like existing
homes.
SPEAKER_11 (19:19):
Yeah, before you kind of got into the article,
the first thing I would havethought about just off the top
would have been like the cost ofmaintaining and upkeep or
renovating or like doing anysort of like damage work on like
a historical home, like olderhomes, older construction,
places that have been around fora while.
When you go in to buy that kindof thing, like you're probably
looking at like a inspectionreport and then having to invest
like all sorts of money intolike making sure that things
(19:42):
need to get fixed, a new waterheater, a new AC, like all that
general stuff.
But it's like a brand newconstruction is like brand new.
It's like but it's like rightoff the get, there's no problems
to have to fix after you buy it.
It's just that you're buying itat the cost that it is for a
brand new development.
That would have been my originalthought.
SPEAKER_06 (19:58):
Yeah, and no, and that that makes sense.
I think it's a perfectly logicalway to look at it.
Um, but it sounds like the alsoon top of like newer the way
that newer constructions aregoing, a lot of existing homes
are not being sold.
Like, just like the market ofexisting homes is not as big,
and therefore the prices aregoing up.
Okay.
SPEAKER_11 (20:18):
Uh, for example, homeowners a lot simple more
simple than I was making it up.
SPEAKER_06 (20:21):
Yeah, well, homeowners with a sub 4%
mortgage they're reluctant tosell.
And also, existing homeowners'values are up 49% since before
the pandemic.
So the giving them like sort ofan incentive to to hold out for
an even higher price as theprices just seem to be keep
going up.
Right.
So yeah, I think that's that's ahuge part of it.
Here's a really interesting statthough from the article that
(20:44):
caught me completely bysurprise.
I have you read the the medianhome buyer age act.
SPEAKER_09 (20:50):
Uh I literally just got to it in the article.
SPEAKER_06 (20:51):
Dang, okay.
I was gonna ask you what it'swhat you thought it was.
Uh 56 years old is the currentmedian home buyer age, which is
up from 31 years old back in1981.
SPEAKER_11 (21:02):
That is crazy today.
That is crazy.
I mean, there's plenty of uhthere's plenty of reasons why
that could be the case.
So yeah, it's very fascinating.
SPEAKER_06 (21:11):
Yeah, I mean, I think, yeah, that just I think
that shows a little bit wherethe home buying market is,
especially for young people.
Yep.
Like that's that is to me a wildmedian age.
Yeah.
SPEAKER_11 (21:26):
God, I hope I'm not 56 now.
Buying the house.
Yeah, oh my god.
SPEAKER_02 (21:30):
Oh no.
That's tough.
SPEAKER_06 (21:32):
Tough well, I also wonder if that has to do with
like people, like largecompanies who are buying a lot
of houses, and like the peoplewho like are running those
companies, even if they're likenot buying the house for
themselves, they're just buyingit to like flip or whatever.
Yeah, could be.
Uh, speaking of which, the top10 firms made up 44.7% of all
new single-family closings in2024.
(21:54):
So that might be exactly what'sgoing on.
Probably, yeah.
But yeah.
The expert outlook here isbuilders still face high
inventory and will likely keepoffering discounts and
incentives through 2025.
Economists expect the priceinversion could last another
year or two, but not forever.
In short, today's unusual trendreflects oversupply in builder
(22:15):
strategy, not a permanent reset.
New homes won't stay cheaperforever.
SPEAKER_11 (22:20):
No, thank you, Patrick, for talking about new
homes and how they're beingcheaper.
It's interesting, it isfascinating.
Real quick, we're just gonna hitthis last one.
Mortgage rates drop sharplyahead of expected Fed rate cuts.
So, again, this is one of thosethings where there's a lot of
great information out there.
Use your best judgment andresources when kind of taking
all this stuff into account.
Speak with the professionals, goout there, consult the people
(22:42):
that you really believe thatknow their stuff.
Again, Patrick and I are kind ofjust learning along the way.
But this is actually a prettyimportant and impactful thing
for the housing market right nowand for for mortgage rates.
So this past Tuesday, we'rerecording this on September
18th.
This past Tuesday, as investorsmoved ahead of a widely expected
interest rate cut by the FederalReserve, the average rate of the
30-year fixed mortgage dropped12 basis points to 6.13%,
(23:06):
according to Mortgage NewsDaily, which marks the lowest
level since late 2022.
The decline reflects bond marketactivity as investors bought
into mortgage-backed securitiesin anticipation of the Fed's
upcoming policy decision.
Now you might be asking, whydoes this matter?
That's exactly what I was.
Who cares?
I think everyone could prettymuch unanimously agree that a
(23:27):
lower mortgage rate is generallybetter.
You generally want to see that.
Okay.
Makes you more likely to want tobuy real estate.
Yeah, mortgage rates are closelytied to yields on
mortgage-backed bonds in UStreasuries, which often shift in
anticipation of Fed moves.
So while a Fed rate cut iswidely expected, its effect on
(23:48):
long-term mortgage rates isn'tguaranteed.
So back in September 2024,mortgage rates initially fell
before the Fed's rate cut, butthen rose paradoxically after
the announcement.
So some analysts warned the samecould happen again.
Okay.
And in some historical contexts,past cycles, Fed rate cuts have
had mixed effects on long-termborrowing.
(24:09):
So we don't know exactly whatit's going to do, but like when
the Fed cut rates during therecessions, longer-term yields
like the 10-year Treasury, itgenerally fell, dragging
mortgage rates lower.
So, but when cuts occurredoutside of recessions, the
effect on mortgage rates waslimited.
So anything could happen.
We we truly, really don't knowwhat's exactly going to happen
here.
It's kind of just one of thosewait and see and do your
(24:31):
research, keep your eyes on thekeep your eyes on the prize, as
it were.
Today's environment resemblesthe latter with the economy
still expanding despiteinflation and high borrowing
costs.
So it's gonna be an interesting,it's kind of like a weird
amalgamation of the two.
SPEAKER_06 (24:44):
Yeah.
I don't know if this was alreadybrought up, but like the article
had an amount, and then itsounds like as of yesterday of
us recording it, it dropped evenmore.
Is that is that accurate?
Did I understand that correctly?
SPEAKER_11 (24:56):
I think we were discussing that earlier and
whether or not we should includeit in the article.
Did we get confirmation on that,producer Muse?
Okay.
No, no confirmation on that, butthat's again again, just like we
I said.
SPEAKER_06 (25:05):
Jury forget that the evidence is dismissed.
SPEAKER_11 (25:09):
Again, that uh like the news moves quick.
Things could change by the endof today, the business day.
You know, it's like you neverknow what's exactly gonna
happen.
So make sure you're up to dateon your knowledge, make sure
that you're checking these newswires and all these sources and
places that you trust to getyour good information.
Um, real quick, just a coupleexpert perspectives.
Matthew Graham, the COO ofMortgage News Daily, had a
(25:30):
little bit to say about uh aboutall this stuff, kind of compared
today's setup to September 2024and warned that while rates have
dropped ahead of the feds move,they could climb again
afterwards on the opposite endof the spectrum.
Willie Walker, which is a greatname.
Uh, he's like the the likeWillie Wonka of the real estate
industry.
Willie Walker, CEO of Walker andDunlop, he reviewed data from
(25:54):
nine Fed rate cut periods since1980 and said recession-driven
cuts typically bring downlong-term rates, while
non-recession cuts have littleeffect.
Predicts at least 25 basispoints cut, possibly followed by
another.
Uh, expects yields could riseagain within weeks, cautioning
that investors may be, quote,buying on the rumor and selling
(26:14):
on the news, end quote.
SPEAKER_06 (26:16):
That's a good quote.
Buying on the rumor, selling onthe news.
Sounds like I don't know ifthat's very official.
SPEAKER_11 (26:23):
Hearing all this, is now the right time for buyers to
lock in or should they wait?
I mean, that's kind of theage-old question, right?
SPEAKER_06 (26:31):
So, what I've what I've kind of heard from the
experts we've brought in andother people I've talked to is
just like it seems like theremight never be a good time, and
ultimately now oftentimes is thebest time.
Now is the best time.
Obviously, in ex you know,extreme circumstances that might
not always apply.
But I I I generally think likewaiting and hoping for like an
(26:52):
unknown is probably not the bestidea.
At least, you know, uh in mostcases.
I don't know what you what youhad to think about that.
SPEAKER_11 (27:00):
No, I I kind of agree.
I mean, I think it's like whatwaiting around for things like
this to make a huge impact maynot really matter a whole lot in
the long run.
Like, you know, we have hadenough guests on the show to
kind of teach us the fact thatit's like if you feel like it's
the right time, it's probablythe right time.
Yeah.
Um, there's gonna be a lot ofyou know voices out there
telling you that it might not bethe right time.
(27:21):
But it's, you know, you kind ofhave to trust your gut, trust
your instincts, and do yourresearch, make sure you're well
prepared and equipped and goright into it.
So, like, I don't know ifthere's really ever gonna be a
great answer for is it the righttime?
But I certainly think that allthis is worth keeping an eye on.
Right.
As uh if you're in the marketright now for your first real
estate investment or your firstproperty or whatever it is,
(27:42):
now's the time to kind of watchthe news, make sure that you're
informed.
But yeah, so mortgage rates havehit their lowest level in nearly
three years.
But but like we said before,history shows the drop may not
last.
So whether the Fed's expectedcut translates into sustained
relief for home buyers willdepend on how markets react.
Once the policy move isofficially official.
So for now, officially official.
(28:03):
Officially official.
The rentish pod.
Officially official.
For now, borrowers may seeshort-term opportunities, but
volatility remains high, andexperts warn that the rates
could rebound quickly.
Okay.
But that is it.
That's the news.
That is the news news.
SPEAKER_06 (28:19):
What's it?
Real estate rundown.
SPEAKER_11 (28:20):
Real estate rundown.
RER.
Producer just made like a tigeremotion.
I like that.
Welcome to the Rurr.
Look at the soundboard.
Thank you guys for listening toanother episode of The Rentish
Pod.
It's been a pleasure to hang outwith you.
We learned a lot about the newsand what's going on in real
estate.
Stay tuned for a lot of more funstuff to come out of season two
(28:44):
of the Rentish Podcast,including other interviews,
special segments, fun and games.
Patrick and I talking aboutmovies.
SPEAKER_06 (28:50):
Doing uh doing a uh soda pop ranking.
SPEAKER_11 (28:53):
Soda pop ranking.
Yeah.
We'll punt that to March whenMarch Madness happens.
SPEAKER_07 (28:58):
Oh, yeah.
SPEAKER_11 (28:58):
That way we we can keep the show going until March.
Uh follow us on social media atthe Rentish Pod.
You can email questions attherentish pod.com.
Uh follow us on Spotify, Apple,get notified when new episodes
come out by hitting the bell andgive us a rating, a review, five
stars, ten stars, whatever yougotta do.
And uh tell your friends, peoplethat you you know you work with
(29:20):
or colleagues, friends that areinto property management, have
their own real estateinvestments.
If you think that they might geta laugh or a yuck or just learn
maybe a little a thing or twoout of our show, send them our
way.
Give them the Rentish.
And yeah, for for now, I've beenZach.
That's been Patrick, and we'llsee you guys next time.
The Rentish Podcast is recordedin Cincinnati, Ohio, hosted by
(29:44):
Patrick Giro and me, ZachRotello, produced by Mussey
Gebermescal and CharleneMulchendani, edited by Elliot
Mongenis.
Theme song by me, Zach Rotello.
SPEAKER_06 (30:45):
Yes, we're gonna talk about the three biggest
headlines in real estate thatyou need to know.
We'll give you the quick hitsfirst and break down what they
really mean for renters,investors, and anyone keeping an
eye on the market.
So making waves this week.
Article one will be on rentreporting from CNBC.
The topics rent payments beingreported to credit bureaus.
Renters could soon see theirmonthly payments impact their
(31:08):
credit scores, changing the waythat credit worthiness is
calculated across the US.
Article two is mortgage rates,also from CNBC.
Topics about rates droppingahead of a Fed cut.
Mortgage rates are dipping asinvestors anticipate a Federal
Reserve rate cut, making it apotential sweet spot for home
buyers.
And article three is new versusexisting home prices.
(31:31):
It's an article from Forbes.
New homes are now cheaper thanexisting homes for the first
time in years.
Uh, they're being sold at lowerprices than existing homes,
shaking up the housing marketdynamics.
So that's what we'll bediscussing today.
SPEAKER_11 (31:45):
Those articles all seem interesting things that I
would like to read with myeyeballs.
So well said.
Let's get into it.
You want to get into it?
Reporting rent payments.
So more renters are reportingrent payments to credit bureaus.
Here's what to know.
Again, this comes from CNBC, soyou can check out the article
there.
Basically, the gist of it isthat more renters are now using
(32:07):
their rent payments to build orimprove their credit scores.
According to a new trans unionsurvey, the share of renters
whose rent payments are reportedto credit bureaus increased to
13% in 2025, which is up 11% in2024.
From 11% in 2024.
Excuse me.
It's like, what happened?
SPEAKER_12 (32:25):
From 2 to 13.
It jumped up so high.
SPEAKER_11 (32:29):
The survey conducted in March with 2006 renters shows
that while adoption is stillrelatively low, patience is
growing, especially amongyounger renters.
Experts say reporting rent canboost credit scores
significantly, but the benefitsdepend on how the services are
structured and whether renterscan keep up with payments.
So who is reporting rent?
(32:50):
Generationally, younger rentersare leading adoption.
So 18% of Gen Z renters reportedrent payments in 2025.
This is down from 26% in 2024,but still the largest share.
16% of millennials reported rentactivity, and then 12% of Gen X
and 8% of baby boomers are alsoI guess that makes sense.
SPEAKER_06 (33:11):
I mean, the younger you are, probably the more
inclined you are to build yourcredit.
Yeah.
SPEAKER_11 (33:15):
You have to find the rare baby boomer that's also
renting.
SPEAKER_06 (33:18):
Yeah, I also wonder if if these percentages are
about baby boomer renters orjust baby boomers in general.
SPEAKER_11 (33:24):
Yeah, that's that would be an interesting thing to
know if it was like specificallyfor renters or not.
But yeah, Gen Z made up of 15%of respondents in the transunion
survey.
Millennials are about 28%, Gen Xis 30%, and baby boomers are
27%.
So some solid numbers there, andyou get some really interesting
takeaways there.
But yeah, it definitely seemslike it's SKUs Young for these
reporting services.
SPEAKER_06 (33:52):
Here's why.
For the first time in decades,the US housing market has
flipped.
New homes are selling for lessthan existing ones.
In June, the medium sale pricefor an existing home was
$441,500, while the median pricefor a new home was just$401,800.
(34:15):
The bottom line is there's athere's a$40,000 gap and it's
unprecedented.
Experts say the anomaly comesdown to builder incentives,
changing home designs, and aglut.
That's a that's the word of theday.
So for and not necessarily apreference for older properties,
which I I think what I mighthave assumed before reading the
(34:35):
article is that like, oh, morepeople want older properties
with like you know, maybe morecharacter or history or
whatever.
Yeah, sure.
But it seems like it's it morehas to do with with the the
manner in which the new homesare are being built, which also
makes sense.
SPEAKER_02 (34:50):
Yep.
SPEAKER_06 (34:53):
Giving them like sort of an incentive to to hold
out for an even higher price asthe prices just seem to be keep
going up.
Right.
So yeah, I think that's that's ahuge part of it.
Here's a really interesting statthough from the article that
caught me completely bysurprise.
I have have you read the themedian home buyer age act?
SPEAKER_09 (35:11):
Uh I literally just got to it in the article.
SPEAKER_06 (35:12):
Dang, okay.
I was gonna ask you what it whatyou thought it was.
Uh 56 years old is the currentmedian home buyer age, which is
up from 31 years old back in1981.
SPEAKER_11 (35:23):
That is crazy to me.
That is crazy.
I mean, there's plenty of uhthere's plenty of reasons why
that could be the case.
So yeah, it's very fascinating.
SPEAKER_06 (35:31):
Yeah, I mean, I think, yeah, that just I think
that shows a little bit wherethe home buying market is,
especially for young people.
Yep.
Like that's that is to me a wildmedian age.
Yeah.
SPEAKER_11 (35:46):
God, I hope I'm not 56.
Oh my god.
Oh no.
SPEAKER_02 (35:52):
That's tough.
SPEAKER_11 (35:56):
Mortgage rates drop sharply ahead of expected Fed
rate cuts.
So this is actually a prettyimportant and impactful thing
for the housing market right nowand for for mortgage rates.
So we're recording this onSeptember 18th this past
Tuesday.
As investors moved ahead of awidely expected interest rate
cut by the Federal Reserve, theaverage rate of the 30-year
fixed mortgage dropped 12 basispoints to 6.13%, according to
(36:19):
Mortgage News Daily, which marksthe lowest level since late
2022.
The decline reflects bond marketactivity as investors bought
into mortgage-backed securitiesin anticipation of the Fed's
upcoming policy decision.
Now you might be asking, whydoes this matter?
That's exactly what I wasasking.
Who cared?
I think everyone could prettymuch unanimously agree that a
(36:40):
lower mortgage rate is generallybetter.
You generally want to see that.
Okay.
Makes you more likely to want tobuy real estate.
Yeah, mortgage rates are closelytied to yields on
mortgage-backed bonds in UStreasuries, which often shift in
anticipation of Fed moves.
So while a Fed rate cut iswidely expected, its effect on
(37:01):
long term mortgage rates isn'tguaranteed.
So back in September 2024,mortgage rates initially fell
before the Fed's rate cut, butthen rose paradoxically after
the announcement.
So some analysts warn the samecould happen again.
What's going on, everybody?
Welcome to season two of theRentish Podcast.
I'm Zach and I'm here with myco-host Patrick.
SPEAKER_06 (00:10):
We're two rookies chasing the dream of real estate
investing.
In this podcast, we'll talkabout property management, wild
stories, and everything inbetween.
We don't know it all yet.
SPEAKER_11 (00:20):
But that's the point.
We're learning as we go, justlike you.
We'll bring in the experts toeducate and inform us and we'll
figure it out together.
So let's laugh, learn, and diveinto real estate side by side.
Uh thanks for listening to theshow.
If you've listened this far, weappreciate you and uh thank you
for hanging out with us.
If you want to follow the show,you can do so in a bunch of
different ways.
We're available on basically allpodcast platforms out there.
(00:40):
Just go to your podcast serviceof choice and search The
Rent-ish Pod.
And while you're there, give usa like, give us a follow, give
us a subscribe, hit thenotification bell to be notified
when new episodes drop.
And go on social media andfollow us at The Rentish Pod.
And also email questions attherentish pod.com.
All right.
Well, property management realestate, everybody.
(01:01):
Hey, it's what we're here totalk about.
Y'all love it.
Uh Patrick, I think we're gonnaget uh into the news on this
episode.
Is that right?
SPEAKER_06 (01:08):
Yeah, so we're gonna do some real estate rundown, I
think is the I don't know ifthat is that the official name?
Yeah, the new official name ofthe news segments.
Yeah, they didn't like realnews.
SPEAKER_11 (01:20):
Or what was it before?
We called it real news realnews, like for real estate, and
they were like, that's awful.
It's really bad.
It's like, all right, seasontwo, brand new, brand new
segments.
SPEAKER_06 (01:30):
I mean, real estate rundown isn't terrific either,
if I'm being completely honest.
Damn.
But it's better than real news.
No, it's better than real news.
Real estate rundown.
It's you know the RER.
Your alliterative R.
The RER.
We're gonna get into the RER.
Real estate rundown.
Yes, we're gonna talk about thethree biggest headlines in real
estate that you need to know.
(01:51):
We'll give you the quick hitsfirst and break down what they
really mean for renters,investors, and anyone keeping an
eye on the market.
So making waves this week.
Article one will be on rentreporting from CNBC.
The topics rent payments beingreported to credit bureaus.
Renters could soon see theirmonthly payments impact their
credit scores, changing the waythat credit worthiness is
(02:13):
calculated across the US.
Article two is mortgage rates,also from CNBC.
Topics about rates droppingahead of a Fed cut.
Mortgage rates are dipping asinvestors anticipate a Federal
Reserve rate cut, making it apotential sweet spot for home
buyers.
And article three is new versusexisting home prices.
(02:33):
It's an article from Forbes.
New homes are now cheaper thanexisting homes for the first
time in years.
Uh they're being sold at lowerprices than existing homes,
shaking up the housing marketdynamics.
So that's what we'll bediscussing today.
SPEAKER_11 (02:47):
Those articles all seem interesting things that I
would like to read with myeyeballs.
So well said let's get into it.
You want to get into it?
Yeah, let's do it.
All right, I've got number onehere.
So uh I'm gonna re I'm gonna hityou with reporting rent
payments.
So more renters are reportingrent payments to credit bureaus.
Here's what to know.
Again, this comes from CNBC, soyou can check out the article
there.
I'm not sure if what do we linkthe articles in the description
(03:09):
of the of the episodes?
Cool, we do that.
That's nice.
Oh so go to the description andclick on the article if you want
to read along with us.
But basically, the gist of it isthat more renters are now using
their rent payments to build orimprove their credit scores.
According to a new trans unionsurvey, the share of renters
whose rent payments are reportedto credit bureaus increased to
13% in 2025, which is up 11% in2024.
(03:33):
From 11% in 2024.
Excuse me.
It's like, what happened?
SPEAKER_12 (03:37):
Went from 2 to 13.
What happened?
SPEAKER_11 (03:41):
The survey conducted in March with 2006 renters shows
that while adoption is stillrelatively low, patience is
growing, especially amongyounger renters.
Experts say reporting rent canboost credit scores
significantly, but the benefitsdepend on how the services are
structured and whether renterscan keep up with payments.
Patrick, before we get into kindof like the the who, what, when,
(04:01):
where, and the why and all thatstuff, have you heard of
services like this that arebasically like doing like like
rent reporting and like I have Ihave heard of it, yeah.
SPEAKER_06 (04:10):
I think it's it's getting more popular, it seems.
Yeah.
I guess the article uh backsthat up.
But I I I hadn't heard of ituntil like maybe the past two
years or so.
SPEAKER_11 (04:20):
I let me tell you, I you know, I'm not sure if we're
gonna call out any of thespecific companies that do such
a thing, but I've heard the sobleep this out, producers.
I've heard the built ad onbasically every podcast I
listened to recently where it'slike tenants love paying rent.
It's like make your rent workfor you and but play with built
or whatever, and it's like getrewards and whatever.
(04:41):
And so it's like incentivizinglike do like doing more with
your rental payments, and Ithink that impacting your credit
score is part of that orwhatever.
So it seems like they're tryingto gain get get that audience to
grow.
They're advertising on likepodcasts and I think probably
YouTube ads and stuff like that,but they're out there, they're
they're probably everywhere.
Uh so you've you've heard of theI know built.
SPEAKER_06 (05:00):
I have a friend who's trying to get me to get
the built card.
Oh, it's a card.
I mean, there is a card.
Yeah, I mean, I think there's awhole program for it.
I know the built card allows youto pay your rent and get cat,
like get cash back on it, Iguess.
Because they they they allow youto use the card, but like they
give you an accountant routingnumber so you can pay it as
though it were ACH.
Huh.
SPEAKER_11 (05:20):
Okay.
Well, why it matters.
So rent reporting services trackpayment history and share it
with one or more of the threemajor credit bureaus.
So there's Experian, Equifax,Trans Union.
Uh, this could be especiallyvaluable for credit invisible
consumers, uh, so people whohave little to no credit
history.
So basically, the idea in thatrespect would be that young
(05:41):
renter, invisible credit file,doesn't have a whole lot of
stuff to back up.
They're maybe relatively new,just turned, you know, of age to
be able to get a credit line andstart building up credit
history.
The idea that, you know, thesekids are going off to college
or, you know, you renting yourfirst apartment, and you can
suddenly start making an impacton your credit and developing
that line of credit and buildingit, keeping it maintained,
(06:02):
keeping the score high withouthaving to have this extensive
credit history like a lot ofpeople just kind of stumbled
into.
So yeah, kind of a cool, kind ofa cool concept.
Transunion found including rentpayments and credit reports can
raise scores by an average of 60points, giving renters a
stronger foundation for securingloans, mortgages, and credit
cards.
Yeah.
I mean, that's cool.
Yeah, very cool.
(06:22):
What do you do to manage yourcredit?
What do you mean, what do I do?
SPEAKER_06 (06:25):
I pay my uh I pay my credit card bills on time.
Yeah.
Like you don't take advantagesof any extra services that are.
Well, yeah, I mean, if if it'swhat you were getting at, he's
like, yeah, I actually am signedup for like the credit reporting
on uh to when I pay my rent.
Oh, really?
Yeah, it's just like the freethe free version.
So I it's only going to one ofthe bureaus, I think.
But um yeah, I'm on that.
I mean, I I pay my rent on time,you know.
(06:46):
I I I monitor to make sure thateverything's reporting
correctly.
So yeah, I mean it's just likemight might as well.
Okay, you know, um, since Isince I know that I am somebody,
I've got it set on autopay, youknow, I know I know I'm making
my payments, so I'm like, itcan't really hurt.
Yeah.
SPEAKER_11 (07:01):
Yeah, I uh I I agree with all of that.
I also maybe it's just a forceof habit, but one of the very
first apps I ever downloadedwhen I got an iPhone and I
started like messing around withcredit cards and stuff when I
was in like high school goinginto college was credit karma.
Yeah, yeah.
Um, and that's been around for along time at this point, but
they have like tips, tricks, andsuggestions for boosting credit
(07:22):
rates as well.
That's like one of those liketypical like weekly checks.
Like just out of force of habit,I'll open the credit karma app
and just be like, I wonder whatmy credit score is like right
now, even though it's alwaysaround the it's like always in
the same area.
SPEAKER_06 (07:34):
So yeah, the company I bank with, Capital One, they
have like a credit, I think it'scalled credit wise, like right
on the app, so I can seeeverything on that, which is
really helpful.
I I do check up on that.
Maybe like you said, once a weekor once every two weeks.
SPEAKER_11 (07:47):
Yeah.
SPEAKER_06 (07:47):
So who is reporting rent?
SPEAKER_11 (07:49):
Generationally, younger renters are leading
adoptions.
So 18% of Gen Z renters reportedrent payments in 2025.
This is down from 26% in 2024,but still the largest share.
That's an interesting jump.
If 26% of Gen Z renters werereporting rent payments in 2025,
what the heck happened that itdropped all the way down to 18%?
(08:11):
They started reporting it andthen they were like, wait a
second, nah, never mind.
We're just gonna take that away.
16% of millennials reported rentactivity, and then 12% of Gen X
and 8% of baby boomers are also.
I guess that makes sense.
SPEAKER_06 (08:23):
I mean, the younger you are, probably the more
inclined you are to build yourcredit.
SPEAKER_11 (08:27):
You might be just more informed generally, too.
Yeah, or like that, yeah.
I bet you if you compiled a listof baby boomers into a room and
said, How many of you realizethat you could be reporting your
payments for rent?
Well, a lot of baby boomersprobably pay more.
SPEAKER_03 (08:42):
Could you report mortgage payments and build your
credit?
SPEAKER_11 (08:45):
I mean, mortgage payments are like that's
automatic because it's a loan,it's by default.
You're right, you're right,you're right.
So it really is just the rentalpayments.
So it's like you have to findthe rare baby boomer that's also
renting.
SPEAKER_06 (08:56):
Yeah, I also wonder if if these percentages are
about baby boomer renters orjust baby boomers in general.
SPEAKER_11 (09:01):
Yeah, that's that would be an interesting thing to
know if it was like specificallyfor renters or not.
But yeah, Gen Z made up 15% ofrespondents in the transunion
survey.
Millennials are about 28%, Gen Xis 30%, and baby boomers are
27%.
So some solid numbers there, andyou get some really interesting
takeaways there.
But yeah, it definitely seemslike it's SKUs young for these
reporting services.
All right, what to considerbefore signing up?
(09:23):
So there's a few things that youneed to take into account here.
So experts caution that not allrent reporting services work the
same way.
Renters should ask a few keyquestions before enrolling.
Number one, do you need it?
If you already have a strongcredit history, reporting rent
may not take a major difference.
So for those with thin or nocredit files, the impact can be
substantial.
But if you have a strong credithistory, this might not boost it
(09:44):
as much as you think it would.
So you might not even need it.
Number two, what's the cost?
Some services are free, butothers charge between$6.95 and
$9.95 per month with possiblesetup fees of$25.95.
So there can be some prettycostly services out there that
do this sort of thing.
You got to know which bureausare included.
We kind of covered that already.
What gets reported?
Some services report onlyon-time payments, some report
(10:07):
late payments.
So it's like you got to makesure that you really read the
rules and stipulations of thesekinds of services.
And then how do you cancel?
So you got to be on top of it.
And just like a personal hottake thing.
I don't understand how there'sthis many people that forget to
cancel their subs for likeanything.
Yeah.
Like they have these commercialswhere it's like, do you not
realize how many subscriptionservices you're subscribed to?
(10:28):
And it's like blah, blah, blah,can help you find all the things
you're subscribed to.
I'm like, I know exactly whatI'm subscribed to.
Yeah, right.
I know exactly how much I'msubscribed to and how much it
costs me every single month.
It's like, do you think thatthere's just people out there
that just are subscribed toeverything?
Yeah.
SPEAKER_06 (10:42):
And they just forget what they're just auto-p put it
on auto pay and just, yeah.
Yeah.
I think it's probably morecommon than I would than I would
think.
That's crazy.
SPEAKER_11 (10:49):
Producer Musei says he doesn't think most Americans
budget.
It's interesting.
Could be an interesting articleto put it in the news segment
one of these days, is budgetingbudgeting practices of Americans
and renters or homeowners,whatever, you know?
Yeah.
Pat, a couple questions for youbefore we move on to the next
article.
Uh, do you think landlordsshould be should automatically
report rent payments to creditbureaus for tenants, or should
(11:09):
it always be optional?
SPEAKER_06 (11:10):
So, my opinion is is it should always be optional.
I think because like payingrent, like that's you know,
unless you can buy, everyoneneeds to pay rent to live
somewhere.
Yeah, and that to me isdifferent than opening a credit
card or like going to the bankand taking out a loan, you know,
which is like the traditionalthings that credit would be
reported to.
I don't think it should bydefault be reported for
(11:31):
something like renting that youhave to do anyways.
I get why some people mightmight think that.
I just personally disagree withit.
But I think like offering thatoption to tenants who might, you
know, who are making these hugepayments that aren't a
traditional loan and being ableto build their credit in like
the sort of more non-traditionalway, I think is really can be
really helpful.
SPEAKER_02 (11:51):
Okay.
SPEAKER_11 (11:51):
Yeah, I agree.
I think that it in uh in a caselike that, I would be a little
bit I would favor the tenants'freedom to kind of make that
decision on their own.
Yeah.
Obviously, I think a lot oflandlords could be in the right
space for that, but you alsodon't want to do that sort of
thing without like having thatother half consent to it.
Right.
Because there's a lot of factorsyou may not be taking into
(12:13):
account.
SPEAKER_06 (12:13):
Well, I think like with landlords, maybe like their
main incentive to want torequire tenants is to
incentivize tenants to pay ontime.
That way, if they pay late, it'sgonna impact your credit.
You know, I I get that argument.
I think a counterpoint would belike, oh, there's a lease
agreement if they're not payingon time, you know, like they're
breaking the agreement and thenother or you know, there's
already threats in place.
But yeah, that's just myopinion.
SPEAKER_11 (12:34):
Yep.
I'm totally on that with you.
But uh yeah, so just to kind ofwrap this article up, Matt
Schultz, uh chief credit analystat Lending Tree, had a had a
quote the the more that you cando to improve your score, the
better it is for your overallfinancial situation.
That was his quote there.
So the more the better the moreyou can do, the better your
credit is.
Thanks, Matt.
(12:55):
Appreciate it.
But uh genius.
Yeah, but but uh Shishi Woo ofthe National Consumer Law Center
warned went renters to weighrisks.
She says, quote, if you wereconcerned about your job and
unsure if you're going to beable to make your rent payments
six months from now, maybe it'snot the best time to sign up.
End quote.
So we got we got some twodynamite quotes here from the
(13:18):
producers.
So thank you guys for puttingthose in there.
Rent reporting can be a powerfultool, particularly for younger
renters and those buildingcredit from scratch, but it's
not risk-free and may not beworth the cost for those with
established credit history.
So do your research.
As we always say, do yourresearch.
All right, Pat, what you got forme?
SPEAKER_06 (13:35):
All right, next up we have an article by Forbes.
New homes are now cheaper thanexisting homes.
Here's why.
For the first time in decades,the US housing market has
flipped.
New homes are selling for lessthan existing ones.
In June, the medium sale pricefor an existing home was
(13:55):
$441,500, while the median pricefor a new home was just$401,800.
That makes sense.
Did I say those numbers right?
SPEAKER_11 (14:07):
I think you numbered just fine.
SPEAKER_06 (14:09):
441500 versus 401800.
SPEAKER_11 (14:12):
I get it.
SPEAKER_06 (14:13):
We follow?
SPEAKER_11 (14:14):
Hey, here's my lizard brain in action.
Is as soon as numbers get intothe hundred thousands, it
becomes exponentially hard toread them.
SPEAKER_06 (14:23):
Yes.
SPEAKER_11 (14:23):
Like, I don't like reading$441,500.
That sounds awkward.
SPEAKER_06 (14:28):
But you said it really seamlessly.
I feel like I didn't.
You did a good job.
I think you did fine.
The bottom line, Zach.
Yeah, the bottom line.
However, you want to say thosenumbers.
The bottom line is there's a$40,000.
That's a number I can say.
$40,000.
Yeah, easy.
There's a$40,000 gap, and it'sunprecedented.
SPEAKER_11 (14:48):
Unprecedented.
SPEAKER_06 (14:48):
Since uh 1968, new homes have only been cheaper 22
times.
I don't know what that does thatmean like 22 months or that's
interesting.
SPEAKER_11 (14:56):
Yeah, new homes have only been cheaper 22 times.
Maybe it means that becausewe're always in a state of
basically inflation has alwaysgone up since the beginning of
time.
SPEAKER_05 (15:05):
Yeah.
SPEAKER_11 (15:06):
And then it's like you'll have dips where it drops
down or like prices kind ofscale back a little bit.
So maybe the housing that mediumprice has only reduced 22 times.
I don't know how long thatstretch of period is that it did
reduce, but it means that$441,500, that was like a medium
price at one point, and then itscaling back at all is is
(15:28):
considered one of those 22times.
SPEAKER_06 (15:31):
Seven of those instances have occurred since
May of 2024, though.
Where new where new homes havebeen cheaper?
So seven of the 2020 22 timesthat new homes have been cheaper
than existing homes has been inthe past like basically year,
year and a half.
SPEAKER_11 (15:45):
Well, I mean, that says to me that we're in a time
of economic uncertainty.
Let's let's call it that.
SPEAKER_07 (15:50):
Yeah.
SPEAKER_11 (15:51):
Where it's like economics are constantly
changing and fluctuating.
And I think that that thatprobably me makes a lot of sense
why there's been so many sorecently.
SPEAKER_06 (15:59):
Yeah.
The this June discount wasespecially drastic.
The new homes, new homes soldfor 9% less than existing ones,
uh, shattering the previousrecord, which was a 3% less.
Okay.
So um experts say the anomalycomes down to builder
incentives, changing homedesigns, and a glut.
That's a that's the word of theday.
(16:20):
So I I don't I don't use thatword, it's not part of my
vernacular.
SPEAKER_11 (16:25):
No, it doesn't sneak in there often, but it's a good,
it's a good word.
It's very aggressive sounding.
It's like it's a glut of newconstruction.
SPEAKER_06 (16:31):
Glut of new construction.
And not necessarily a preferencefor older properties, which I I
think what I might have assumedbefore reading the article is
that like, oh, more people wantolder properties with like, you
know, maybe more character orhistory or whatever.
Yeah, sure.
But it seems like it's it morehas to do with with the the
manner in which the new homesare are being built, which also
(16:53):
makes sense.
SPEAKER_10 (16:53):
Yep.
SPEAKER_06 (16:54):
Historically, new homes almost always cost more
due to updated finishes, modernlayouts, obviously, no like wear
and tear from previous owners.
Right.
But since April 2024, the trendhas persisted each month, fueled
by aggressive builder strategieswhere new homes undercut the
existing ones.
SPEAKER_11 (17:12):
So tell me, Patrick, why are builders kind of cutting
down these prices then?
Like, why are these scalingback?
SPEAKER_06 (17:16):
So 60% of builders have offered perks like mortgage
rate buy downs, closing costhelp, upgrades, according to the
National Association of HomeBuilders.
So those incentives basicallypoint home buyers to purchase
newer homes to basically getthese sort of discounts that
they wouldn't get on you knowexisting older homes.
(17:40):
That's interesting.
And 30% of builders lowered thesticker prices outright, which I
wonder why.
Yeah, that seems kind of kind ofcrazy.
SPEAKER_11 (17:47):
I don't 30% of them were like, all right, whatever.
Yeah, discount Tuesday.
Come and buy the house for 30%less.
Yes.
SPEAKER_06 (17:56):
Well, I it's part of it might have to do with the
shrinking home sizes as well.
The average new home has droppednearly 400 square feet since
2015, now averaging about 2.3thousand square feet.
But I think that's somethinglike with newer homes, the
average newer home going down insize, that you know, obviously
would decrease the the medianprice of the newer homes.
(18:18):
Despite slimmer margins, though,publicly traded builders are
holding strong.
The SPDR SP home builders ETF,say that five times fast, is up
12% this year, uh beating thebroader SP 500's 10% gain.
SPEAKER_11 (18:31):
Now I'm no I'm no stock expert, and I don't want
to, we're not a financialpodcast per se.
But I do think the spider SPhome builder ETF is one of the
general ETFs.
I I have like an investmentportfolio where it just like
takes like small little amountsof like spare change and like
invests it into these differentETFs that are like generally
(18:53):
pretty safe, like long-terminvestments that build up over
time.
And the home builders one mightbe one that I've I've put like a
little bit of money in to justlike have gained money over
time.
SPEAKER_06 (19:03):
Well, I wonder if the the point that the article
was making with that stat wasthat it's not that new
construction is in trouble.
Yeah, it seems like it's it'sdoing well.
Yeah, it seems it's doing verywell.
And the prices are are goingdown compared to like existing
homes.
SPEAKER_11 (19:19):
Yeah, before you kind of got into the article,
the first thing I would havethought about just off the top
would have been like the cost ofmaintaining and upkeep or
renovating or like doing anysort of like damage work on like
a historical home, like olderhomes, older construction,
places that have been around fora while.
When you go in to buy that kindof thing, like you're probably
looking at like a inspectionreport and then having to invest
like all sorts of money intolike making sure that things
(19:42):
need to get fixed, a new waterheater, a new AC, like all that
general stuff.
But it's like a brand newconstruction is like brand new.
It's like but it's like rightoff the get, there's no problems
to have to fix after you buy it.
It's just that you're buying itat the cost that it is for a
brand new development.
That would have been my originalthought.
SPEAKER_06 (19:58):
Yeah, and no, and that that makes sense.
I think it's a perfectly logicalway to look at it.
Um, but it sounds like the alsoon top of like newer the way
that newer constructions aregoing, a lot of existing homes
are not being sold.
Like, just like the market ofexisting homes is not as big,
and therefore the prices aregoing up.
Okay.
SPEAKER_11 (20:18):
Uh, for example, homeowners a lot simple more
simple than I was making it up.
SPEAKER_06 (20:21):
Yeah, well, homeowners with a sub 4%
mortgage they're reluctant tosell.
And also, existing homeowners'values are up 49% since before
the pandemic.
So the giving them like sort ofan incentive to to hold out for
an even higher price as theprices just seem to be keep
going up.
Right.
So yeah, I think that's that's ahuge part of it.
Here's a really interesting statthough from the article that
(20:44):
caught me completely bysurprise.
I have you read the the medianhome buyer age act.
SPEAKER_09 (20:50):
Uh I literally just got to it in the article.
SPEAKER_06 (20:51):
Dang, okay.
I was gonna ask you what it'swhat you thought it was.
Uh 56 years old is the currentmedian home buyer age, which is
up from 31 years old back in1981.
SPEAKER_11 (21:02):
That is crazy today.
That is crazy.
I mean, there's plenty of uhthere's plenty of reasons why
that could be the case.
So yeah, it's very fascinating.
SPEAKER_06 (21:11):
Yeah, I mean, I think, yeah, that just I think
that shows a little bit wherethe home buying market is,
especially for young people.
Yep.
Like that's that is to me a wildmedian age.
Yeah.
SPEAKER_11 (21:26):
God, I hope I'm not 56 now.
Buying the house.
Yeah, oh my god.
SPEAKER_02 (21:30):
Oh no.
That's tough.
SPEAKER_06 (21:32):
Tough well, I also wonder if that has to do with
like people, like largecompanies who are buying a lot
of houses, and like the peoplewho like are running those
companies, even if they're likenot buying the house for
themselves, they're just buyingit to like flip or whatever.
Yeah, could be.
Uh, speaking of which, the top10 firms made up 44.7% of all
new single-family closings in2024.
(21:54):
So that might be exactly what'sgoing on.
Probably, yeah.
But yeah.
The expert outlook here isbuilders still face high
inventory and will likely keepoffering discounts and
incentives through 2025.
Economists expect the priceinversion could last another
year or two, but not forever.
In short, today's unusual trendreflects oversupply in builder
(22:15):
strategy, not a permanent reset.
New homes won't stay cheaperforever.
SPEAKER_11 (22:20):
No, thank you, Patrick, for talking about new
homes and how they're beingcheaper.
It's interesting, it isfascinating.
Real quick, we're just gonna hitthis last one.
Mortgage rates drop sharplyahead of expected Fed rate cuts.
So, again, this is one of thosethings where there's a lot of
great information out there.
Use your best judgment andresources when kind of taking
all this stuff into account.
Speak with the professionals, goout there, consult the people
(22:42):
that you really believe thatknow their stuff.
Again, Patrick and I are kind ofjust learning along the way.
But this is actually a prettyimportant and impactful thing
for the housing market right nowand for for mortgage rates.
So this past Tuesday, we'rerecording this on September
18th.
This past Tuesday, as investorsmoved ahead of a widely expected
interest rate cut by the FederalReserve, the average rate of the
30-year fixed mortgage dropped12 basis points to 6.13%,
(23:06):
according to Mortgage NewsDaily, which marks the lowest
level since late 2022.
The decline reflects bond marketactivity as investors bought
into mortgage-backed securitiesin anticipation of the Fed's
upcoming policy decision.
Now you might be asking, whydoes this matter?
That's exactly what I was.
Who cares?
I think everyone could prettymuch unanimously agree that a
(23:27):
lower mortgage rate is generallybetter.
You generally want to see that.
Okay.
Makes you more likely to want tobuy real estate.
Yeah, mortgage rates are closelytied to yields on
mortgage-backed bonds in UStreasuries, which often shift in
anticipation of Fed moves.
So while a Fed rate cut iswidely expected, its effect on
(23:48):
long-term mortgage rates isn'tguaranteed.
So back in September 2024,mortgage rates initially fell
before the Fed's rate cut, butthen rose paradoxically after
the announcement.
So some analysts warned the samecould happen again.
Okay.
And in some historical contexts,past cycles, Fed rate cuts have
had mixed effects on long-termborrowing.
(24:09):
So we don't know exactly whatit's going to do, but like when
the Fed cut rates during therecessions, longer-term yields
like the 10-year Treasury, itgenerally fell, dragging
mortgage rates lower.
So, but when cuts occurredoutside of recessions, the
effect on mortgage rates waslimited.
So anything could happen.
We we truly, really don't knowwhat's exactly going to happen
here.
It's kind of just one of thosewait and see and do your
(24:31):
research, keep your eyes on thekeep your eyes on the prize, as
it were.
Today's environment resemblesthe latter with the economy
still expanding despiteinflation and high borrowing
costs.
So it's gonna be an interesting,it's kind of like a weird
amalgamation of the two.
SPEAKER_06 (24:44):
Yeah.
I don't know if this was alreadybrought up, but like the article
had an amount, and then itsounds like as of yesterday of
us recording it, it dropped evenmore.
Is that is that accurate?
Did I understand that correctly?
SPEAKER_11 (24:56):
I think we were discussing that earlier and
whether or not we should includeit in the article.
Did we get confirmation on that,producer Muse?
Okay.
No, no confirmation on that, butthat's again again, just like we
I said.
SPEAKER_06 (25:05):
Jury forget that the evidence is dismissed.
SPEAKER_11 (25:09):
Again, that uh like the news moves quick.
Things could change by the endof today, the business day.
You know, it's like you neverknow what's exactly gonna
happen.
So make sure you're up to dateon your knowledge, make sure
that you're checking these newswires and all these sources and
places that you trust to getyour good information.
Um, real quick, just a coupleexpert perspectives.
Matthew Graham, the COO ofMortgage News Daily, had a
(25:30):
little bit to say about uh aboutall this stuff, kind of compared
today's setup to September 2024and warned that while rates have
dropped ahead of the feds move,they could climb again
afterwards on the opposite endof the spectrum.
Willie Walker, which is a greatname.
Uh, he's like the the likeWillie Wonka of the real estate
industry.
Willie Walker, CEO of Walker andDunlop, he reviewed data from
(25:54):
nine Fed rate cut periods since1980 and said recession-driven
cuts typically bring downlong-term rates, while
non-recession cuts have littleeffect.
Predicts at least 25 basispoints cut, possibly followed by
another.
Uh, expects yields could riseagain within weeks, cautioning
that investors may be, quote,buying on the rumor and selling
(26:14):
on the news, end quote.
SPEAKER_06 (26:16):
That's a good quote.
Buying on the rumor, selling onthe news.
Sounds like I don't know ifthat's very official.
SPEAKER_11 (26:23):
Hearing all this, is now the right time for buyers to
lock in or should they wait?
I mean, that's kind of theage-old question, right?
SPEAKER_06 (26:31):
So, what I've what I've kind of heard from the
experts we've brought in andother people I've talked to is
just like it seems like theremight never be a good time, and
ultimately now oftentimes is thebest time.
Now is the best time.
Obviously, in ex you know,extreme circumstances that might
not always apply.
But I I I generally think likewaiting and hoping for like an
(26:52):
unknown is probably not the bestidea.
At least, you know, uh in mostcases.
I don't know what you what youhad to think about that.
SPEAKER_11 (27:00):
No, I I kind of agree.
I mean, I think it's like whatwaiting around for things like
this to make a huge impact maynot really matter a whole lot in
the long run.
Like, you know, we have hadenough guests on the show to
kind of teach us the fact thatit's like if you feel like it's
the right time, it's probablythe right time.
Yeah.
Um, there's gonna be a lot ofyou know voices out there
telling you that it might not bethe right time.
(27:21):
But it's, you know, you kind ofhave to trust your gut, trust
your instincts, and do yourresearch, make sure you're well
prepared and equipped and goright into it.
So, like, I don't know ifthere's really ever gonna be a
great answer for is it the righttime?
But I certainly think that allthis is worth keeping an eye on.
Right.
As uh if you're in the marketright now for your first real
estate investment or your firstproperty or whatever it is,
(27:42):
now's the time to kind of watchthe news, make sure that you're
informed.
But yeah, so mortgage rates havehit their lowest level in nearly
three years.
But but like we said before,history shows the drop may not
last.
So whether the Fed's expectedcut translates into sustained
relief for home buyers willdepend on how markets react.
Once the policy move isofficially official.
So for now, officially official.
(28:03):
Officially official.
The rentish pod.
Officially official.
For now, borrowers may seeshort-term opportunities, but
volatility remains high, andexperts warn that the rates
could rebound quickly.
Okay.
But that is it.
That's the news.
That is the news news.
SPEAKER_06 (28:19):
What's it?
Real estate rundown.
SPEAKER_11 (28:20):
Real estate rundown.
RER.
Producer just made like a tigeremotion.
I like that.
Welcome to the Rurr.
Look at the soundboard.
Thank you guys for listening toanother episode of The Rentish
Pod.
It's been a pleasure to hang outwith you.
We learned a lot about the newsand what's going on in real
estate.
Stay tuned for a lot of more funstuff to come out of season two
(28:44):
of the Rentish Podcast,including other interviews,
special segments, fun and games.
Patrick and I talking aboutmovies.
SPEAKER_06 (28:50):
Doing uh doing a uh soda pop ranking.
SPEAKER_11 (28:53):
Soda pop ranking.
Yeah.
We'll punt that to March whenMarch Madness happens.
SPEAKER_07 (28:58):
Oh, yeah.
SPEAKER_11 (28:58):
That way we we can keep the show going until March.
Uh follow us on social media atthe Rentish Pod.
You can email questions attherentish pod.com.
Uh follow us on Spotify, Apple,get notified when new episodes
come out by hitting the bell andgive us a rating, a review, five
stars, ten stars, whatever yougotta do.
And uh tell your friends, peoplethat you you know you work with
(29:20):
or colleagues, friends that areinto property management, have
their own real estateinvestments.
If you think that they might geta laugh or a yuck or just learn
maybe a little a thing or twoout of our show, send them our
way.
Give them the Rentish.
And yeah, for for now, I've beenZach.
That's been Patrick, and we'llsee you guys next time.
The Rentish Podcast is recordedin Cincinnati, Ohio, hosted by
(29:44):
Patrick Giro and me, ZachRotello, produced by Mussey
Gebermescal and CharleneMulchendani, edited by Elliot
Mongenis.
Theme song by me, Zach Rotello.
SPEAKER_06 (30:45):
Yes, we're gonna talk about the three biggest
headlines in real estate thatyou need to know.
We'll give you the quick hitsfirst and break down what they
really mean for renters,investors, and anyone keeping an
eye on the market.
So making waves this week.
Article one will be on rentreporting from CNBC.
The topics rent payments beingreported to credit bureaus.
Renters could soon see theirmonthly payments impact their
(31:08):
credit scores, changing the waythat credit worthiness is
calculated across the US.
Article two is mortgage rates,also from CNBC.
Topics about rates droppingahead of a Fed cut.
Mortgage rates are dipping asinvestors anticipate a Federal
Reserve rate cut, making it apotential sweet spot for home
buyers.
And article three is new versusexisting home prices.
(31:31):
It's an article from Forbes.
New homes are now cheaper thanexisting homes for the first
time in years.
Uh, they're being sold at lowerprices than existing homes,
shaking up the housing marketdynamics.
So that's what we'll bediscussing today.
SPEAKER_11 (31:45):
Those articles all seem interesting things that I
would like to read with myeyeballs.
So well said.
Let's get into it.
You want to get into it?
Reporting rent payments.
So more renters are reportingrent payments to credit bureaus.
Here's what to know.
Again, this comes from CNBC, soyou can check out the article
there.
Basically, the gist of it isthat more renters are now using
(32:07):
their rent payments to build orimprove their credit scores.
According to a new trans unionsurvey, the share of renters
whose rent payments are reportedto credit bureaus increased to
13% in 2025, which is up 11% in2024.
From 11% in 2024.
Excuse me.
It's like, what happened?
SPEAKER_12 (32:25):
From 2 to 13.
It jumped up so high.
SPEAKER_11 (32:29):
The survey conducted in March with 2006 renters shows
that while adoption is stillrelatively low, patience is
growing, especially amongyounger renters.
Experts say reporting rent canboost credit scores
significantly, but the benefitsdepend on how the services are
structured and whether renterscan keep up with payments.
So who is reporting rent?
(32:50):
Generationally, younger rentersare leading adoption.
So 18% of Gen Z renters reportedrent payments in 2025.
This is down from 26% in 2024,but still the largest share.
16% of millennials reported rentactivity, and then 12% of Gen X
and 8% of baby boomers are alsoI guess that makes sense.
SPEAKER_06 (33:11):
I mean, the younger you are, probably the more
inclined you are to build yourcredit.
Yeah.
SPEAKER_11 (33:15):
You have to find the rare baby boomer that's also
renting.
SPEAKER_06 (33:18):
Yeah, I also wonder if if these percentages are
about baby boomer renters orjust baby boomers in general.
SPEAKER_11 (33:24):
Yeah, that's that would be an interesting thing to
know if it was like specificallyfor renters or not.
But yeah, Gen Z made up of 15%of respondents in the transunion
survey.
Millennials are about 28%, Gen Xis 30%, and baby boomers are
27%.
So some solid numbers there, andyou get some really interesting
takeaways there.
But yeah, it definitely seemslike it's SKUs Young for these
reporting services.
SPEAKER_06 (33:52):
Here's why.
For the first time in decades,the US housing market has
flipped.
New homes are selling for lessthan existing ones.
In June, the medium sale pricefor an existing home was
$441,500, while the median pricefor a new home was just$401,800.
(34:15):
The bottom line is there's athere's a$40,000 gap and it's
unprecedented.
Experts say the anomaly comesdown to builder incentives,
changing home designs, and aglut.
That's a that's the word of theday.
So for and not necessarily apreference for older properties,
which I I think what I mighthave assumed before reading the
(34:35):
article is that like, oh, morepeople want older properties
with like you know, maybe morecharacter or history or
whatever.
Yeah, sure.
But it seems like it's it morehas to do with with the the
manner in which the new homesare are being built, which also
makes sense.
SPEAKER_02 (34:50):
Yep.
SPEAKER_06 (34:53):
Giving them like sort of an incentive to to hold
out for an even higher price asthe prices just seem to be keep
going up.
Right.
So yeah, I think that's that's ahuge part of it.
Here's a really interesting statthough from the article that
caught me completely bysurprise.
I have have you read the themedian home buyer age act?
SPEAKER_09 (35:11):
Uh I literally just got to it in the article.
SPEAKER_06 (35:12):
Dang, okay.
I was gonna ask you what it whatyou thought it was.
Uh 56 years old is the currentmedian home buyer age, which is
up from 31 years old back in1981.
SPEAKER_11 (35:23):
That is crazy to me.
That is crazy.
I mean, there's plenty of uhthere's plenty of reasons why
that could be the case.
So yeah, it's very fascinating.
SPEAKER_06 (35:31):
Yeah, I mean, I think, yeah, that just I think
that shows a little bit wherethe home buying market is,
especially for young people.
Yep.
Like that's that is to me a wildmedian age.
Yeah.
SPEAKER_11 (35:46):
God, I hope I'm not 56.
Oh my god.
Oh no.
SPEAKER_02 (35:52):
That's tough.
SPEAKER_11 (35:56):
Mortgage rates drop sharply ahead of expected Fed
rate cuts.
So this is actually a prettyimportant and impactful thing
for the housing market right nowand for for mortgage rates.
So we're recording this onSeptember 18th this past
Tuesday.
As investors moved ahead of awidely expected interest rate
cut by the Federal Reserve, theaverage rate of the 30-year
fixed mortgage dropped 12 basispoints to 6.13%, according to
(36:19):
Mortgage News Daily, which marksthe lowest level since late
2022.
The decline reflects bond marketactivity as investors bought
into mortgage-backed securitiesin anticipation of the Fed's
upcoming policy decision.
Now you might be asking, whydoes this matter?
That's exactly what I wasasking.
Who cared?
I think everyone could prettymuch unanimously agree that a
(36:40):
lower mortgage rate is generallybetter.
You generally want to see that.
Okay.
Makes you more likely to want tobuy real estate.
Yeah, mortgage rates are closelytied to yields on
mortgage-backed bonds in UStreasuries, which often shift in
anticipation of Fed moves.
So while a Fed rate cut iswidely expected, its effect on
(37:01):
long term mortgage rates isn'tguaranteed.
So back in September 2024,mortgage rates initially fell
before the Fed's rate cut, butthen rose paradoxically after
the announcement.
So some analysts warn the samecould happen again.
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