HotPads Daily

A Closer Look at the 2011 U.S. Rental Market

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Today we released our 2011 Rental Housing Report and made some predictions for 2012. We found that rental prices for two bedroom units grew 3.75 percent in 2011 while two bedroom units for sale saw a 1.83 percent drop in price across the top 20 most populated U.S. metros. (Jump to graphs)

Studio rentals remained the highest growth segment, with a 7.12 percent increase over the year. One and two bedroom rental properties also saw a price increase, 2.59 percent and 3.75 percent respectively, while three bedrooms dipped by .31 percent.

Popular metro areas like New York, Boston, Miami, San Francisco, Los Angeles, and Chicago had some of the most expensive rental listings in the U.S., as measured by median listing prices of two bedroom properties. Rental listings in San Francisco appeared in particularly high demand, staying active for just 28 days on HotPads, compared to an average of 49 days across other top metro markets.

Unlike rentals, homes for sale saw a further decline in 2011, sinking 1.83 percent across the largest metro areas, as measured by the median for sale listing price of two bedrooms on HotPads. A similar trend could be seen among the listed price of three bedroom homes for sale, which declined by .19 percent. In 2011 the most expensive two bedroom properties could be found in San Francisco, Los Angeles, and New York.

While we expect demand for rental properties to remain high throughout 2012, we anticipate a slower growth compared to last year. As the price of homes for sale continues to decline, we believe more home shoppers will consider buying over renting (buy vs rent data below). We also predict more foreclosed and long standing for sale properties will re-enter the market as rentals in 2012, which should increase the rental supply and help ease prices. However, if economic conditions extend consumer uncertainty, we may continue seeing would be home owners continue to rent.

The data in this report is calculated based on the median listing price of 500,000 concurrently active rental listings on HotPads across the top 20 most populated U.S. metros. For consistency, two bedroom properties were used to determine the rental and for sale year over year price changes. The Buy vs Rent ratio is calculated by dividing a metros median house price by annual rent. Higher ratios mean it is more expensive to buy than rent a comparable home. The 20 metro areas include major cities like Atlanta, Baltimore, Chicago, Dallas, Detroit, Houston, Los Angeles, Miami, Minneapolis, New York, Philadelphia, Phoenix, Riverside, San Diego, San Francisco, Seattle, St. Louis, Tampa, Washington, DC. 'Metro Areas' consist of a densely populated urban core and its less-populated surrounding territories, ex: "San Francisco-Oakland-Fremont, CA" and "New York-Northern New Jersey-Long Island, NY-NJ-PA".

Need more info? Get in touch at press@hotpads.com

Visual Rental Trends, January 2011 - December 2011

Manhattan: Then, Now, and in 2212

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Just over 200 years ago, Manhattan was on the verge of a historic transformation which would make it one of the most navigable, diverse, and desirable cities in the world. The transformation took place in 1811 and was spurred by the decision to organize the city into a grid. The methodically structured streets made it possible for architects, engineers, and visionaries to build a densely packed metropolis, which would prove essential for incubating the creative and financial powerhouse we know today. 

The pictures from the Museum of the City of New York and views from the windows of properties listed on HotPads help visualize the dramatic progress over 200 years. What do you think Manhattan might look like in 2212? 

Is Washington In a Foreclosure Distortion Bubble?

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Given the complexity of the housing market, ongoing economic turbulence, and a growing demand for transparency from grass root movements, we think being able to organize and easily present housing data is more important than ever. That's why over the last few years, HotPads has been monitoring and visualizing national housing trends through dynamic heat maps.

All of our maps offer a unique perspective on macro and micro trends. From broader level Rent Ratio Heat Maps to local pricing HotSpots, we build tools that help clarify what's going on in the market. In the mix of interesting trends, we sometimes find patterns especially worth highlighting.  

After rendering the most recent Foreclosure Heat Map, we noticed a particularly symbolic pattern. While most of the country is suffering from high foreclosure levels per capita (shaded red), Washington D.C. seems to be insulated from the crisis (shaded light blue).

While the presence of federal jobs and other unique factors may help Washington's housing market stay afloat, this protective lid may also contribute to a Washington distortion bubble. Some may argue this distortion field makes it difficult for policy makers and politicians to fully grasp the pressing foreclosure woes of average Americans (although the recent temporary holiday reprieve is a positive sign).

When we noticed that the Occupy Movement is declaring December 6th as the National Day of Action to Stop Foreclosures, we wanted to contribute some data to help raise awareness of the issue. Washington may be covered with a protective dome, but the rest of the country is struggling. You can see the latest national foreclosure heat map here - zoom in to see local conditions in your town.

Moving Light Sculpture On the Bay

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If you're into stunning views, San Francisco does not disappoint. From panoramic scenes on Twin Peaks to Golden Gate Bridge sunsets from Crissy Field, San Francisco offers some of the most scenic backdrops around. In the near future, the Bay Bridge will add another unique glow to the city...with a moving light sculpture display. Celebrating the 75th anniversary of the Bay Bridge, Leo Villareal (an international light artist) will transform the bridge into one of the biggest moving sculptures in the world.  

If you're considering a new place with a view of the bridge, the display is set to open in 2013. 

Introducing a Faster way to Find Property Managers

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Once the excitement of buying an investment property settles, the fun really starts. Things like finding and screening new tenants, answering maintenance calls, and dealing with all the other nuances of managing a property can sometimes be a little overwhelming. So how do you avoid that inevitable "I lost my keys!" tenant call?  Well, hiring a property manager is a good place to start.

That's why we're excited to announce the Property Management Finder, a comprehensive search directory that makes the lives of property owners much easier. Just type in a location, select a property type, and we'll connect you with the most relevant local management company. It's way easier than making an extra set of keys. 

Our directory already has hundreds of property management companies from across the U.S. and we're adding new ones daily. If you're a property manager and would like to make your company searchable on HotPads, you can start by listing it here. 

We think this will reduce the stress of owning a property while giving more exposure to the best property management companies around. Ready to discover a property manager near you? 

Celebrating 6 Years!

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6 years ago we introduced a map-based search experience to a handful of friends with less than 10 listings. We were convinced there needed to be an easier way to find a place to live. Only Dora, our pug, could have imagined that a few years later HotPads would grow to 4.5 million rental and for sale listings and reach a crowd of 5 million people every month! 

We're convinced the only reason we were able to build and grow the site is because of your support along the way. Many of you helped spread the word, gave us excellent ideas for new features, and sent amazing gifts like coffee pots to keep us buzzing.  As we celebrate our 6th birthday today, we would like to give a huge thank you for all of your support! 

 

We're still humbled every time people send us notes, emails, or tweets describing how they found their place on our site. At the end of the day, this is what drives us to build an even better product. So as we roll into the next year, we're committed more than ever to making the internet a significantly better place to find a place.

 

A brief glance at what happened over the last 12 months:

- We launched several features to make the housing search easier. 

- We moved the company from Washington DC to San Francisco.
- We threw a pretty awesome office open-house party.

- We broke 5 million monthly visitors this summer.

- We expanded the team to 20 HotPadsters.

 

- We introduced some of the first mobile housing search apps in the market and currently have a few hundred thousand downloads.

- We were mentioned in places like the New York Times, Wall Street Journal, NPR, CNN and about 60 other publications. 

- We became experts in shuffleboard (and got a remote controlled fish).

Most importantly, we had a chance to meet many of you and consider ourselves pretty lucky to share this 6th birthday with you today!