In Today’s Email

• Blackstone’s REIT

• Built-to-rent homes

• Home prices increase

• Did you know?

• Quick reads

Blackstone limits withdrawals from REIT

• In recent months, Blackstone Inc's real estate income trust, BREIT, has faced a significant surge in investor redemption requests, resulting in limited withdrawals from the fund.

• In April, withdrawal requests amounted to $4.5 billion, but only $1.3 billion or 29% of those requests were fulfilled. This follows similar trends in previous months, where redemption requests have surpassed the fund's capacity to meet them.

• As the demand for real estate investment options continues to grow, alternative platforms like Groundfloor provide an attractive solution. With Groundfloor, investors have the opportunity to diversify their real estate investments and potentially achieve higher returns while maintaining liquidity and flexibility in their investment portfolios.

Built-to-rent homes

• Buying a home today is difficult for many, leading to a surge in demand for rental properties, especially single-family homes. Affluent neighborhoods are mostly occupied by homeowners and less desirable areas housing more rentals.

• As a solution, built-to-rent housing is gaining traction as an attractive option. These developments provide new, well-managed homes with amenities, eliminating the need for a substantial down payment or long-term commitment. However, not all states have embraced this trend, with some lacking any plans for such housing.

• Arizona stands out with the highest per-capita rate of built-to-rent housing, offering an appealing alternative for those who desire the benefits of apartment living with the freedom of a detached home. While it cannot singlehandedly solve the housing crisis, built-to-rent housing contributes to increasing the housing supply.

Home prices are on the rise

• The housing market is experiencing steep competition and low supply, resulting in a rise in home prices. Nationally, home prices in March 2023 increased by 0.7% compared to the previous year.

• While the 10-city and 20-city composites showed slight declines in year-over-year prices, there was an overall month-to-month increase in prices. Regional differences are evident, with the Southeast showing the strongest gains and the West experiencing the weakest performance. Miami, Tampa, and Charlotte saw the highest year-over-year price gains, while most cities reported lower prices compared to the previous year.

• Economic conditions, job markets, population growth, and local housing supply and demand dynamics all play a role in the regional differences in housing prices. The Southeast region may be experiencing stronger gains due to favorable economic factors, such as job opportunities and population growth. On the other hand, the weaker performance in the West could be attributed to factors like high housing costs, limited affordability, and potential oversupply in certain markets.

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Quick Reads Around The Block

Groundfloor opens the door to personalized and accessible real estate investments, empowering individuals to take control of their financial future. Groundfloor offers a unique synergy of investment and lending, empowering individuals to both invest in real estate projects and provide funding to developers, all through one integrated platform.