Investment Analysis Archives | Real Estate & Investment Perspective by Karen Lee Bertiger

2026/04/242026/04/24

How to Use Your Down Payment Money

These days, when you’re buying property, you’re probably already aware that you can get concessions from the seller in a lot of instances. So brush up on how to get the most valuable concessions from the seller that will help you, depending on your situation.

What many do not consider: your best bet may NOT be using all of your down payment money for a down payment. If you want to be more sure that you are going to be able to afford the housing costs of the property you are buying, consider this strategy.

Figure out the maxium principal & interest amount you can comfortably pay. Determine the loan amount & THEN shop for your property with the understanding that you will only pay a minimal down payment to get the loan. This will probagly result in a lower purchase price.

Once you have closed & are in the property, after your first payment is due take the REMAINDER (majority) of your down payment & apply it to the principal balance of your new loan. For instance, If you have 20% to put down, put down only 0-3%, get all the best seller concessions for your situation & then take the remaining 15-17% & apply it to the princpal of your loan. When you check your amortization schedule, you may have wiped out about 10 years of INTEREST on your mortgage!

2026/04/152026/04/15

Arbitrage Opportunity

Things to consider for a current real estate opportunity window:

If you have property in a hot market (NE, Midwest) but want to relocate/retire/downsize to Florida in the near future, take advantage of your seller’s market where you are AND the buyer’s market where you want to be in Florida. Of course, that’s only one aspect. You need a real estate professional in Florida to answer questions, find appropriate properties, and guide you through your purchase and assist you in your move. Make sure it’s someone who is up to the task!

2026/02/102026/02/10

Rental Trends

Apartment List reports rents down 0.2% month over month and 1.4% year over year, vacancies at a record 7.3%, and lease-up times hitting 41 days nationwide.

Overall rent trends
● The national median rent fell 0.2% month over month in January and now stands at $1,353.
● January marked the sixth consecutive month of rent declines and the fourth straight winter with a pronounced seasonal dip.
● National rents are down 1.4% year over year, extending a stretch of slightly negative annual rent growth that has lasted more than two years.
● The national median rent has fallen 6.2% from its 2022 peak, reflecting a sustained correction following the pandemic-era surge.

Monthly and annual rent changes
● Rent declines continued but moderated compared to prior months.
○ Month-over-month comparison:
■ January 2026: -0.2%
■ January 2025: -0.1%
○ Year-over-year comparison:
■ January 2026: -1.4%
● The -1.4% annual reading is the weakest year-over-year rent growth since August 2023. ● Despite recent declines, rents remain elevated over the longer term.
○ Current rents are 18% higher than at the end of 2020.

National rent levels in dollar terms
● The national median rent is $1,353, down $20 compared to January 2025.
● Since peaking in mid-2022, median rents have declined by:
○ 5.9% nationally
○ $89 per month in dollar terms

Seasonal shifts in rent growth
● Seasonal patterns have shifted compared to the pre-pandemic norm.
○ Historically, May was the peak month for rent growth.
○ Over the past three years, March has become the peak month.
● Rent declines are now beginning earlier in the year.
○ Prices now tend to start falling in August instead of September.
● Winter slowdowns have been deeper since 2022 due to elevated multifamily suppl

Multifamily vacancy rate
● The national multifamily vacancy rate now sits at 7.3%.
● This is the highest vacancy rate recorded by Apartment List since tracking began in 2017.
● Vacancy pressure reflects a collision between new supply and sluggish demand.
○ Multifamily construction peaked recently but remains elevated relative to historical norms.

Multifamily construction pipeline
● New supply remains historically high, even as the construction wave begins to crest.
○ 2024 deliveries: over 600,000 new multifamily units, the highest annual total since 1986.
○ 2025 deliveries: approximately 500,000 units.
○ 2026 outlook: fewer units than 2025, but still slightly above the long-run average.
● Elevated supply continues to limit landlords’ pricing power as the market absorbs new inventory.

Time on market (list-to-lease)
● Units now take an average of 41 days to lease after being listed.
● This represents a new record high for the index.
○ Year-over-year comparison:
■ January 2026: 41 days
■ January 2025: 37 days
● Time on market has more than doubled since summer 2021.
○ Summer 2021 average: 18 days
● Longer lease-up times align with higher vacancies and negative rent growth.

Geographic rent trends
● Rent declines are concentrated primarily in the Sun Belt.
○ Of 54 large metros with populations over 1 million:
■ 39 saw month-over-month rent declines.
■ 32 saw year-over-year rent declines.
● Southern and Mountain West markets account for most annual rent drops.
● Many Northeast, Midwest, and select West Coast metros continue to post positive annual growth.

Metro-level highlights
● Austin, TX shows the softest rental conditions among large metros.
○ Year-over-year rent change: -6.3%
○ Decline from 2022 peak: more than -20%
○ Austin also leads large metros in new-home permitting, underscoring the impact of supply.
● Other metros with steep declines often overlap with high permitting activity.
○ Examples include Denver, Phoenix, San Antonio, Tampa, and Raleigh.
● The strongest rent growth is occurring in fewer, more supply-constrained markets.
○ Virginia Beach, VA: +5% year over year, the fastest growth nationally.
○ San Jose, CA and San Francisco, CA also rank in the top three, supported by AI-driven tech hiring.
○ Midwest metros such as Chicago, St. Louis, and Minneapolis continue to post steady positive growth.

Market outlook
● Multifamily conditions remain soft entering 2026.
● Negative year-over-year rent growth persists alongside rising vacancies and longer lease-up times.
● While the construction wave is slowing, demand-side risks remain.
○ Labor market weakness and broader economic uncertainty could prolong absorption of new units.
● A meaningful shift in rental conditions will depend on whether demand strengthens as supply growth cools.

2024/08/052024/08/05

JOBS are the Key to a Healthy Economy

AND a healthy real estate market. Along with inventory & interest rates. The FED can’t build homes. They do set interest rates. They will raise interest rates in an attempt to reduce inflation, but they do not control excessive government spending (proximate cause.) We are now facing two pivot points – a large private sector full-time job loss (recession indicator) & explosive inflation that wages cannot keep pace with. The RATE of inflation has come down, but PRICES WILL NOT REVERT. Along with the increase in residential home prices, it now costs more to rebuild a property (which is why insurance costs are exploding.) Increases in values are causing increases in property taxes. Theoretically, if you have an increase in VALUES your property tax rate SHOULD GO DOWN TO PRODUCE THE SAME AMOUNT OF REVENUE. However, if you are not watching your local authorities, they will increase your TAX RATE as well as your ASSESSED VALUE.

2024/08/032024/08/03

You Need to Know This

If someone told you to buy real estate in recent years & that you could refinance when rates came down, they did you a disservice. There is no guarantee anyone can give you on interest rates. What IS known, is the past trajectory of residential real estate prices. Since the Great Recession bottom (2012) the long term trajectory has been UP.

LONG TERM, you are well served to get on the asset ownership ladder. For most people, their equity in their home becomes a valuable asset to help with their retirement. If you think you don’t have the ability to find an affordable property to call home, you may be cheating yourself.

Don’t believe me? Ask me for the charts from reputable sources, which prove the point. In addition, I can offer you up to date info on a daily or weekly basis to help you make your best decisions. I’m going to post it so you can see…