Navigating Post-Election Real Estate Booms and NYC's Rental Law Shake-Up | Real Estate Market Update w/ Martin

What if the post-election landscape could be your golden ticket to real estate success? Join Martin Perdomo, the Elite Strategist, on Wealthy AF as we explore the sizzling US multifamily market and its latest trends. With the Federal Reserve's back-to-back interest rate cuts igniting a homebuyer resurgence, the market is heating up like never before. Redfin’s homebuyer demand index is soaring, and pending home sales have jumped 4.7% year over year. Although mortgage rates remain high, early-stage buying is on the rise, signaling it's time to strategize whether you're buying, flipping, or holding properties.

In this episode, we also spotlight a monumental shift for New York City renters thanks to the new Fairness in Apartment Rental Act. This legislation now requires landlords to shoulder broker fees, potentially saving renters thousands in upfront costs. But what does this mean for the future of rents in the Big Apple? We break down the implications, weighing the pros and cons of this controversial law that has the real estate industry buzzing. Dive into these dynamic changes and discover how they might shape your wealth-building strategies in today’s evolving market.

Transcript

Speaker 1: 0:00

Have you been waiting for a sign to jump back into the housing market while the numbers are in, and they might just surprise you? The real estate landscape is shifting right now, right after the election. That's right, baby, it is time to take notice. Welcome back to Wealthy AF, where we break down the latest trends in personal development, entrepreneurship and investing. I'm your host, martin Perdomo, the Elite Strategist, and in today's episode we're diving into the current state of the US multifamily market, one of the most talked about sectors in real estate.

Speaker 1: 0:37

Now that the election is behind us and the Fed has cut interest rates for a second month in a row, homebuyers are jumping back into the market. Redfin's homebuyer demand index surged 15% last weekend, marking its highest level in nearly 18 months, even though mortgage rates are still near their peak, with 30-year fix at 7.0101. Early stage buying is on the rise. Mortgage rate locks for purchases have doubled since last month, but it's clear that buyers who hit pause during the election uncertainty are now ready to make their move, despite home sales prices staying stubbornly high and mortgage prices being just $200 shy of their all-time high. A recent Redfin survey found that 22% of Americans are now more likely to move after the election, signaling pent-up demand about to be unleashed. Yes, pending home sales have already risen 4.7% year over year in early November and, if it's buying trends hold, we could see even more growth in the coming weeks.

Speaker 1: 1:55

If you're looking to invest in real estate, these numbers show that the market is heating up and you don't want to miss out. Guys, whether you're buying, flipping or holding, timing is everything, and now may be the moment to strike. Tune in as we dig deeper into how these trends will affect your wealth building strategies and what moves you should be making now to ride this wave. But before we dive deeper, let me ask you a question. Are you feeling stuck in today's market, not sure how to navigate these high interest rate and economic uncertainties? If you want to master real estate even in challenging times, my personal real estate coaching program is designed for you. Whether you're buying, selling or investing, I'll show you how to thrive in any market, just like today's.

Speaker 1: 2:47

Head over to WealthyAFai and let's get you started. Don't wait for the market to change. Learn how to win right now. Now back to the show. Did you know?

Speaker 1: 3:00

New York City renters just got a major financial break. Imagine this Instead of paying thousands of broker fees up front. Renters in New York City are now off the hook thanks to the new law shifting that burden onto landlords. Here's the big news the New York City Council just passed the Fairness in Apartment Rental Act and it's a game changer. What does this really mean? Traditionally, renters had to pay a broker up to 15% of their annual rent. That's about $4,200 to $6,300 on an average New York City apartment. With median rents around $3,500 a month. Tenants were paying almost $13,000. Just to move in in New York City, this is insane, but not anymore.

Speaker 1: 3:50

The new law flips the script and forces landlords to cover those broker fees. But there's a twist. Some experts argue this could drive rents even higher as landlords look for a way to offset these new costs. It's a controversial move and the real estate industry is pushing back hard. Let's talk numbers New York City renters typically face upfront costs of 48% more than renters who lease with no fee apartments. This is part of the reason why a guy like me, a native New York City guy, born and raised in NYC, and I remember looking at those buildings, dreaming and saying what do I need to do, what do I need to learn to be able to buy and own buildings like this Today, knowing what I know, understanding what I understand about real estate. This is why you can't give me an apartment building in New York City Because of these type of laws and the type of things. The way the system is rigged in New York against entrepreneurs and investors real estate investors is just the reason why I won't go there.

Speaker 1: 5:04

Let's continue on. This bill could relieve renters of thousands, but the real estate board of New York warned it might shift the burden back through higher rents. What's the takeaway? New York City is shifting power towards renters, but we'll have to watch how landlords react, with potential fines of up to $2,000 for noncompliance. So now I have some friends over there in New York City that are big investors, big developers down there. Guys, I wish you the best of luck with this new law, because this is a freaking, brutal, brutal monster of a law that's not playing in our favor.

Speaker 1: 5:46

This law could reshape the rental landscape in New York City. Is this the beginning of more renter-friendly policies nationwide? I don't think so. We'll have to wait and see. Personally, I don't think so.

Speaker 1: 5:58

New York City, chicago, illinois and those major blue cities states are, uh, where these issues we tend to see these issues arise. I am, by the way, I am the poster child of poverty, grew up in poverty, grew up on welfare and food stamps when it was okay. Coupons back in the day, coupons right. So not knocking the blue states. I believe we need social services, but, as an entrepreneur, today we need to do better. New York needs to do better. Why would developers, redevelopers, investors want to provide affordable housing when you rig the game like this against the investors?

Speaker 1: 6:43

I understand there are some bad folks on both sides. There are some bad folks on the renter side that take advantage and don't pay rent and it takes years to evict people in New York City. And then there are some landlords that just don't do jack shit in the apartments and they just collect money. I get that there's bad on both sides, but we need to do better. These blue city, these blue states, new York City specifically I don't want to mention color, but this blue New York City's particularly you need to do better. If you're watching in the border, you're listening at the council, you need to do better. This will not. This will not produce better quality housing or affordable housing. This will just scare money away from going into the housing that you desperately need. If you're ready to turn your goals into gold, you're in the right place, because being broke was never the plan. Let's be wealthy AF and that's a wrap in this week's weekly market update Peace.