Hey everybody! Flip and Dani here, founders of the Freedom Real Estate Group Family of Companies and welcome to another episode of our podcast, which is called Freedom Through Passive Income. That's right.
And this episode is called How Has the Real Estate Market Changed in the Last Decade? Okay, so, number one, there has been an abundance of foreclosures, there's cautious buyers, there is hesitant lenders to soaring prices especially lately. There's low inventory and fierce competition. Yeah, so that seems like that's all in the last six months.
But it was funny as we are like, kind of writing notes about this particular episode that we wanted to record. We're like, Okay, well, what was going on way back in 10 years ago, and it was foreclosures, low inventory. No, foreclosures, cautious buyers, hesitant lenders, because we were coming out of 2008. Right, yeah. And then now, 10 years later, we've got three completely different opposite things going on soaring prices, low inventory and fierce competition. Like it's crazy the night and day that we're seeing from 10 years ago. So we wrote down like, we wanted to hit a few points of some of the most significant things that have happened over the 10 years and try and do it in a very short wee amount of time.
So here we go. Number one, homeownership peak in 2004, was 69.2%. The reason that we're quoting that is to compare it to where we're at now. In 2008, there was still the hesitancy and hesitancy in buyers, the lenders were also more cautious. And only 35% of those who lost their home bought again, according to CoreLogic. That means 65% of people that lost their homes went into renting. So that peak from 2004, is just gone and wiped out based on the 2008 crisis in the fear that that kind of went into people losing their home and all that equity.
Yeah, they're like, I'm not doing that again. And what's actually funny, too, is a little sidenote, we were actually renting in Phoenix, we lived just north of Phoenix, we were renting our house. And they called us. The owner has called us and said, We just got foreclosed on. And so we need to move back into that house. So do you want 30 or 60 days to move? Yeah.
Next, we're moving to Ohio and new construction. So US Bridge reported Ohio alone saw more than 4 billion with a B billion in new construction. And then they're also saying that this is going to fizzle out in the next 10 years. Yeah. And it's amazing how many of our investor friends are into new construction, I mean, new construction over the last 10 years really has seen its boom, and it's continuing to rise. And I keep on kind of sending little messages to all of them, because I love new construction, too. I want to get into it. But I read the economic reports and they are saying they're there. They're already projecting that decline. I'm like, I'm not going to start a new industry or only to see it tank. Or they're to be such high competition, right.
The third thing that we wrote down was millennials. They represent the largest share of homebuyers in the last five years. And that's according to housing finance 2020. The pre pandemic 2020 was expected to be the big homebuying year because millennials just reached 40 years of age, are in their 40s. It's about time for them to move out of mom and dad. Oh, my, I'm not going to go there. I'm just not going to go.
But the work from home trend is from the pandemic, it led a lot of the renters that were renting in that point of time to buy because they went out into the outskirts. Yeah, that outskirts of the area. So because they didn't have that commute to work to have to worry about because they were allowed to work from home. So that ended up being a really big shift to what they were predicting. And it still ended up some of it happening, but in a different way than anticipated. And sidenote, I just tease millennials and it's only because I know it just rubs them the wrong way. I don't mean any of it seriously. So don't send me any hate mail.
But then the number of renter's went up 9.1% In the last 10 years, it's the largest it's been since the 60s.The 60s that’s before you and I were born, crazy. That's a long time ago. And then since 2010, the national average of rent increased 36%. Yes, that's yeah.
And one of the other things is a homeowners have more equity than ever right? We lost it all back in 2008 during the crash for single family at least we call that a crash for single family. The crashes didn't affect multifamily, just so everybody's aware. There's different types of asset classes in real estate and you have to be aware of what you're investing in and why it direct certain times of market, but because of that crash people, large portion of people lost their equity.
And so now that we've seen this, upswing, it go crazy, especially after COVID people have more equity than they ever have had before. We were in Texas. Not too long ago, maybe a month or two ago, and our friends were saying my house doubled. Yeah, literally doubled in price. So it's just crazy.
Another thing, so Dayton, where we are here in Montgomery County, they had a record shattering year in 2021. And the number of sales at the end of 2021 was four times higher than 2011. Yep, four times. That's crazy.
April 2022, seeing stabilization slightly less than the year prior. But still, the higher prices. I mean, we saw it just two months ago. What a neighbor on this side of our house and a neighbor on this side of our house both went up for sale within two days of each other. They both sold in a day. And they both closed in less than four weeks. Yep. Yeah. The new owner still hasn't moved into either house. So we'll take it if they don't. But yeah, it was crazy. Great. Yeah.
And crazy prices on both properties to and median sale price nationally rose 35%. So homes over $100,000 saw the largest increases. So as the bigger you get, the higher they increase. So obviously that's going to have a little bit more weight. But 35% That's pretty big. Yeah. No wonder we're seeing such an upswing.
Yeah. And then remote work has people moving to areas that they've only dreamed about like Florida. Who else is moving to Florida? I can't remember who it was…us! Yeah, but not just not just Florida, but just their vacation spots or places that they just dreamed to live in. And they can still work from home. Yeah.
And yeah, and now they can't, because there's so many people that are, still offering remote work. I think that's a trend that's going to continue. Not all. I don't think it will. I don't think it'll continue as big as people think. I think a lot of people I know some of our team, we love being in office absolutely love being in office. But there's certain industries that are going to just, they're able to hire talent nationwide, right, because they've adopted this work from home atmosphere, and people are able to now live wherever they want because they can find remote work. So that's probably been the biggest one of the biggest changes over the last 10 years. Yeah,
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That's right. Well, we always like to end all of our episodes with Invest Smart. Live Happy. Bye everybody.
Disclaimer: Nothing on this show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on the show are not guaranteed. All investment strategies have the potential for profit or loss.
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