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43 » VISIT US ONLINE @ DSNEWS.COM WHY ARE LANDLORDS CUTTING BACK ON "PERKS?" As the rental market experiences price and demand increases, landlords are beginning to cut back on many "perks" originally intended to entice potential renters. According to Zillow, just 1 in 100 rental listings currently show any move-in special, CNBC's Diana Olick reports. Additionally, rent prices are up 3.1% year- over-year, to a median rent of $1,530 nationally, the highest level since August 2017. Joshua Clark, an economist at Zillow's HotPads, told CNBC, "is potentially signals more rent growth is to come, as landlords not only reduce incentives to move but also increase prices. Of course, all real estate is local, and deals are becoming more common in some places." A few metroes have gone against this trend, including Orlando, Florida, as well as Boston San Jose, and Atlanta, where rental "concessions" have doubled or even tripled. "Renters are also still likely to see concessions on the higher end, where supply is more plentiful nationally," Olick said. "Construction of multifamily apartments surged over the past five years, but largely in the luxury sector. Developers have had trouble building more affordable housing because of higher costs for land, labor, and materials." While renting has been heating up, demand for homeownership has been waning, according to the latest national index produced by the Florida Atlantic University (FAU) and Florida International University faculty. "e opportunity to generate greater wealth by renting and reinvesting puts downward pressure on the demand for homeownership and prices should follow sooner rather than later," said Eli Beracha, Ph.D., a real estate economist and co-creator of the Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index. Of the 23 metros tracked on the index, data indicates that 19 are in rent territory. is means that, on average, an individual family in these cities would be better off renting and reinvesting in a portfolio of stocks and bonds as opposed to building wealth through equity accumulation from homeownership. THE ROAD AHEAD FOR APPRAISALS In a blog post, Jacob Williamson, VP of Single-Family Credit Risk Collateral Management for Fannie Mae, discussed the appraisal industry, its evolution, and the technological advancements shaping the path ahead. "You probably didn't hear from an appraiser on career day at school—I know I didn't. ere seems to be limited awareness of the career opportunities available in the residential appraisal field, and regulatory changes in the wake of the housing crisis a decade ago have contributed to a lack of incentives for entry. At the same time, increasing digitization of the mortgage industry to make it more efficient is creating a sense of urgency for the traditional appraisal process to evolve," Williamson said. Williamson said 49% of appraisers are between the ages of 51 and 65, and an additional 13% are 66 or older. e issue, he adds, is that 7% of the appraisers have been working in the industry for two years or less, while 52% have been in the industry for more than 20 years. e Appraiser Qualifications Board of the Appraisal Foundation adopted changes in 2018 that state regulatory boards have implemented. ese changes include education and experience requirements that were modified to remove barriers that have deterred qualified candidates from entering the profession. Among the issues Williamson discusses is the evolution of technology, and how that impacts appraisers moving forward. He added that many appraisers must determine the value of a property based on a combination of data. "is gives appraisers the option to analyze the data from their desks without having to visit each property. For those who do want to be in the field, instead of relying on the traditional clipboard and tape measure, appraisers now use tablets, laser measuring devices, and even 3D scans to collect property information," Williamson said. Williamson said this evolution presents "intriguing new opportunities" for appraisers to work in a variety of ways. "Appraisers can run their own business or work for a company—there is no single career path. is flexibility promotes a healthy work- life balance: Appraisers are often able to pivot working hours around family priorities, taking care of business at the most convenient and productive times of the day," he said.

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