What's the Scoop on Rental Prices?

 

Rental Prices Continue To Tick Up, but the Wild Increases  Appear To Be Over  By Clare Trapasso  Realtor.com Feb 23, 2023 As the new year kicked off, the wild run-ups in rental prices                                            that terrorized tenants last year appear to have leveled off. January was the 12th month in row where rent growth slowed,                                according to the Realtor.com® monthly rental report. Monthly                                        rents were down $ 80 from the peak in August, but they were still                              up 2.9% year over year, to hit a median $ 1,726 a month in the                            nation’s 50 largest metropolitan areas. (Realtor.com looked at rents for studios, one-bedroom and                                      two-bedroom apartments, condos, townhomes, and single-family                        homes in the 50 largest metros. Metros include the main city                                        and surrounding towns, suburbs, and smaller urban areas. “The biggest takeaway is while the rental growth is slowing,                                   the affordability concerns continue,” says Realtor.com                                           Senior Economist Jiayi Xu. Tenants have been grappling with sticker shock as rental prices                              soared during the COVID-19 pandemic. Many couples and individuals                          moved out on their own, while others were would-be homeowners who were trapped in rentals after being outbid or priced out of the for-sale housing market.                      This strained the limited supply of rentals, driving prices upward. Rents were the lowest in Oklahoma City, the only one of the 50 largest                      metros where tenants can still find a home for just under $ 1,000 a                            month. Median rents in the metro were $ 982. Louisville, KY,                          and Birmingham, AL, rounded out the top three most affordable                            metros with median rents of $ 1,167 and $ 1,178 respectively. But renters in those lower-priced parts of the country shouldn’t                                    get too comfortable. Prices rose the most in the cheaper Midwest                            and South metros, going up 10.5% year over year in Indianapolis, 8.8% in Birmingham, and 8.3% in Columbus, OH. Meanwhile, rents dropped the most in some of the hottest real                                      estate markets during the pandemic. Monthly rents went down                              6.2% in Las Vegas, 3.8% in New Orleans, 3.6%                                                  in Sacramento, CA, 3.4% in Phoenix, and 1.4% in Austin, TX. “With high rents across the country, places that offer relative                                  affordability tend to be in high demand, which means more                                          competition and that these lower prices might not last                                                  ” Realtor.com Chief Economist Danielle Hale said in a statement.                            “Many of these metros have fewer available rental homes                                        than [in] previous months, and fewer apartments to choose from                            means prices are likely to go up.” Rents also jumped the most for studios, typically the smallest units.                              They rose 3.9% year over year in January, to a median of $ 1,417 .                            For one-bedroom apartments, rents increased 2.8% to $ 1,609,                                for two-bedroom units, rents ticked up 2.5% to $ 1,934 a month. Prices might wind up rising in some of the nation’s priciest metros                                as companies order workers back to their offices. That could mean prices jump in places like Silicon Valley’s San Jose, CA, and San Francisco. The median rents in the cities were $ 3,005 and $ 2,809 a month respectively. “People may move from suburban or cheaper metros to tech hubs because of return to office mandates,” says Xu. “It will boost rental demand once more and increase rental prices.”

The Associated Costs with Finishing a Basement

By Bill Gassett  RisMedia   January 24, 2023

If you have an unfinished basement in your home, you might have long had plans to make it into a usable space. Your basement could be used for many different purposes; entertaining, exercising, watching movies, or perhaps another bedroom.

Your basement could become a valuable addition to your home, but at what cost? We will look at how much is a finished basement to ensure you have the budget to improve your home.

What does it cost to finish a basement?

The average finished basement cost varies depending on many things. The current condition and what you want to do to the basement are prominent factors.

Perhaps you want to add a bathroom or turn the space into a media room, and these choices will affect the cost.

Homeowners’ average finished basement cost is between $22 and more than $60 per square foot. You should budget around $20,000 to more than $65,000 to finish your basement.

However, if you want to create a few specialty rooms, with quality flooring, in a large basement, your costs could be considerably higher than these averages.

Many specialty finished basement projects could cost much more.

So do you have the budget to complete your basement project? Let’s look at a breakdown of construction costs:

§  Framing; $7 to $16 per linear foot

§  Flooring; $1 to $20 per square foot

§  Waterproofing; $2 to $10 per square foot

§  Electrical; $500 to $3,000

§  Finishing; $5 to $8 per square foot

§  Labor; $25 to $100 per hour

Framing costs

With the increase in lumber prices, framing has become more expensive. You can expect to pay at least $7 per foot of timber to frame the basement. This cost includes nails and other materials, but the cost will increase if you plan to use steel instead or if there are load-bearing walls.

Flooring costs

The basement will probably need a subfloor if there isn’t one already. The subfloor can cost $2 to $7 and improve the insulation in the room.

The final cost of flooring depends on your choice of finishes and is where you can save if you need to. Vinyl flooring can cost just $1 per square foot, whereas you could pay $25 per square foot for a good wood floor.

Waterproofing expenses

Ensure the space is adequately waterproofed to prevent your newly finished basement from flooding. This can cost as much as $10 per square foot, depending on the size and what is required to keep the room dry.

It is worth the extra money to ensure you don’t have a mold or water problem.

Electrical costs

If your basement already has lights and outlets, this cost will be lower, but if you are starting from scratch, it can cost up to $3,000 on average. If you already have electricity in the basement, you might only need some additional outlets and lights, reducing your expenses.

Finishing expenses

With the framing complete, drywall, insulation, and paint need to be added to the bill. Drywall costs around $2 per square foot, and insulation is a similar expense. Paint can cost between $2 and $4 per square foot, but don’t forget it isn’t just the walls; the ceiling also needs to be finished.

Labor costs

The labor cost will likely be your most significant expense in the project. Depending on your location, a good basement contractor could cost between $25 and $100 per hour.

You should get a few quotes before deciding on the contractor to hire. The quotes might not set out their pricing in the same way, however, and you need to compare them fairly.

Some might include the labor in the total project cost, though others could charge hourly. Also, research the contractor, check customer feedback, and ask them questions before you decide.

Other basement options

Sump pump installation

Even when waterproofing the basement, water could still ruin your new space. A sump pump will ensure water doesn’t accumulate, though it could cost over $1,000. If you live in an area more susceptible to flooding, this could be an important extra cost.

Furniture expenses

If you don’t already have furniture for your new living space, you need to budget to furnish the room.

HVAC upgrades

You’ll want to make sure the basement area will be a nice place to be no matter what the weather is like outside. This might mean you need a new HVAC system if your current system cannot serve the new space.

Final thoughts

There are many options when finishing a basement. It is essential to plan carefully and take out all the necessary permits. Consult with a local REALTORⓇ if you want to know the value added to your property upon completion.