LANDLORD NEWSLETTER
February 2024
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We hope you have had a great start to the new year! Wishes for you and your
family to have a prosperous and healthy 2024.
Valentine’s Day It’s that time of year where we tell our landlords how much we
care about them.
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WELCOME SASHANA HAMILTON
EXECUTIVE ASSISTANT
Sashana Hamilton is a seasoned professional with over 12 years of expertise in customer service,
administrative support, and human resource management. Her career journey has equipped her with
a wealth of knowledge, particularly in delivering value to customers, training and coaching
employees, creating processes, and efficiently managing projects.
Born in the Caribbean on the beautiful island of Jamaica, Sashana naturally enjoys the outdoors,
spending time at the beach, and listening to some good reggae music. She is also a devoted
mother to two boys who serve as her daily motivation to excel.
With a deep passion for enhancing service levels in the real estate and property management
industry, Sashana is dedicated to making the needs of your property and tenants her top priority.
She is always ready and enthusiastic to assist you with all your property management needs,
ensuring top-notch service and client satisfaction.
WINTER STORMS
Please know that we are taking precautions during these freezing temperatures and
winter storms to help protect your properties. We have sent out helpful freeze warning
notices a few times to all tenants and have winterized vacant properties. We have asked
that tenants report any issues to 3G Properties immediately. Stay warm and safe out there!
WHY SHOULD INVESTORS BUY IN TEXAS?
By JONATHAN LANSNER | jlansner@scng.com | Orange County Register
PUBLISHED: December 4, 2023 | UPDATED: December 11, 2023
California investors shed rental houses. It’s a national trend, too!
State's single-family rentals dropped by 81,548 units in 2017-22
Have hordes of investors – from mom and pops to Wall Street giants – gobbled up
single-family residences across the state to make them rentals?
Well, my trusty spreadsheet looked at state-by-state Census Bureau stats detailing
who lives in single-family residences, detached and attached, and whether the
occupants were owners or renters. Figures from 2022 and 2017 were compared.
These figures showed the fears of potential homeowners being squeezed out by
investors are perhaps overblown. Renter-occupied single-family housing is largely on
the decline. Let me explain.
Who rents?
Yes, California has the most single-family rentals in the nation at 2.1 million units, or
15% of the US total. Remember, the vast majority of this housing is owned by small
investors.
Next in scope for this renter’s option is Texas with 1.3 million units, then Florida’s
897,078, Pennsylvania’s 602,495 and Ohio’s 584,589.
But between 2017 and 2022, the number of California’s single-family rentals dropped
by 81,548 units, according to Census data. That’s the second-largest dip among the
states and 11% of the 742,000 decline nationwide.
Florida had the biggest drop at 87,803, and then after California came Georgia at
61,744, Illinois at 56,852 and Michigan at 51,461.
Note that 10 states had gains in renter-occupied, single-family residences led by
Texas, up 53,414, followed by Alabama at 7,473, New York at 6,017, Montana at
3,753, and Rhode Island at 3,251. However, no state had more rental increases than
ownership gains.
Now this California slide was only the 21st largest drop on a percentage basis – off
4% in five years vs. a 5% national dip. So it’s not any major sell-off.
Alaska had the biggest percentage decline, falling 20%, then Wyoming was down
16%, and New Hampshire was off 14%. Rhode Island had the biggest percentage
gain, up 11%, then Montana at 7%, and Texas at 4%.
Who owns?
This dip in rental homes is a sharp contrast to owners who occupy their single-family
residences.
California ranked No. 1 with 6.8 million owner-occupied homes in 2022, 9% of the US
total. Next was Texas at 6.3 million, Florida at 4.8 million, Pennsylvania at 3.4 million
and New York at 3.2 million.
And California added 400,768 owners of single-family residences in the past five
years. That gain equaled 6% of the 7.2 million US increase and ranked only behind
Texas (up 873,038) and Florida (up 771,406).
Only the District of Columbia had a decline, and that was just 312 units.
Again, the Golden State’s gain looks small on a percentage basis. Ownership rose
only 6% – the third smallest advance among the states and roughly half the 11%
surge nationally.
Census stats show the top gains for ownership were in South Carolina at 20%,
Florida, Idaho and Delaware at 19%, and Utah at 18%. Texas was No. 11 at 16%.
Lows? DC was essentially flat then came Connecticut, up 5.6%.
Bottom line
A solid economy – minus the painful pandemic lockdowns – and cheap mortgage
rates that persisted through early 2022 helped nudge more Americans into living (and
owning) in single-family residences in this period.
Don’t forget US builders created 4.8 million new homes in the five years ended in
2022 including 310,000 in California.
So a buying rush – plus residential investment headaches associated with pandemic
life – appears to have convinced more landlords to sell their single-family rentals,
statewide and nationally, than any wave of investors who were recent buyers.
Still, rentals remain a significant slice of single-family residences.
Census stats show across California, 23% of this kind of housing is occupied by
renters vs. 16% nationally. Only Hawaii’s 25% is higher. New Hampshire is lowest at
8%. Texas is at 17%, and Florida at 16%.
Yet that share is shrinking. In 2017, 25% of California’s single-family residences had
renters vs. 18% across the US.
Texas is Winning the US Economy
Noah Sheidlower Dec 29, 2023, 11:48 AM CST
Texas is becoming the poster child of the US economy.
A new Wells Fargo analysis determined that Texas is outpacing many states regarding
GDP and employment growth, despite some struggles in commercial real estate.
These findings echo a Bank of America report from earlier in December that determined
the Southeast’s economy may outpace other regions of the US.
In 2023, Texas experienced the third-fastest growth in terms of population, increasing
1.6% between July 2022 and July 2023 — compared to 0.5% nationwide. This amounted
to about 473,000 new residents, many moving from different states.
In 2023, net domestic migration — the number of people who moved into Texas from
another state, minus those who moved out — was around 187,000 people, second to
Florida. Between 2021 and 2022, more than 668,300 people moved into Texas overall —
over 102,000 from California — according to Census Bureau data. An additional
128,500 people came from other countries between July 2022 and July 2023.
Texas’ economy is growing fast and adding jobs
Compared to the country's 4.9% GDP growth in the third quarter, Texas had 7.7%
growth. Texas has also far outpaced US real GDP growth for the last five quarters,
positioning the state to become a "superstar economy." Texas is outpacing all but six
states in real GDP growth since the fourth quarter of 2019 at 12%.
If you would like to read more, click here.
2024 Texas Real Estate Forecast Predicts More Inventory and
Increased Rents
By Colby Farr | 11:32 AM Jan 5, 2024 CST
More single-family homes and office spaces are expected to be
delivered across the state in 2024, according to a new report by
the Texas A&M Real Estate Research Center.
In a nutshell
The center published its 2024 Texas Real Estate Forecast on Jan. 4,
which examines big-picture trends that may affect the market. The
center’s research team then uses several principles to project how the
market will perform in 2024.
"The 2024 Texas Real Estate Forecast is not just a prediction,”
research director Daniel Oney said in a statement. “It's a thoughtful,
consensus-based economic tool for empowerment. It equips real
estate decision makers with the knowledge needed to navigate the
complexities of the Texas real estate market."
Several highlights from the report include:
Residential market
Single-family inventory is expected to increase with construction
projected to reach prepandemic levels.
Single-family prices are expected to remain near $340,000.
Multifamily rent is expected to grow 2.5% over the previous year.
For more information click here.
Local Market Reports
November 2023
(December and January not available yet)
Please bear in mind 3G Properties Group handles basic maintenance requests
and is not a general contractor or construction company. We are happy to work
with YOUR preferred vendors as long as 3G obtains proof of their liability
insurance, copy of their W9 and coordinates the repairs. As your property
management company, we are charged with coordinating all maintenance with
your resident as part of our liability protection for both you and 3G. If the owner,
resident and vendor are communicating outside of our Maintenance Coordinator
and/or 3G team, this can cause significant problems. We expect to pay your
vendor through our system so all of your annual expenses are reflected on your
1099. 3G Properties Group strives to provide you with a “hands off” experience
as much as possible, relieving you from maintenance burdens and headaches!
Notes from a few of our residents and other landlords!
-The process was easy and I would highly recommend.
Holli
-The entire process was very smooth and Michelle Peters-Hill added a few personal touches that made us feel special. Definitely recommend!
Staci
From shamrocks to snacks to step dancing, historically, St. Patrick’s Day
traditions are widely varied, but one thing is for sure: They’re all a lot of fun and
not just for the Irish. Here is a simple recipe to celebrate the holiday and
throughout the year:
Easy cheesy Irish boxty-type potato cakes
Ingredients
1 ½ cups grated raw potatoes
1 cup all-purpose flour
½ cup shredded Cheddar cheese
1 cup leftover mashed potatoes
¼ teaspoon salt
¼ teaspoon ground black pepper
1 egg
2 tablespoons ranch dressing
1 tablespoon milk
2 tablespoons vegetable oil
Directions
1. Mix grated potatoes with flour in a large bowl.
2. Stir Cheddar cheese and mashed potatoes into the grated potato
mixture; season with salt and pepper.
3. Beat egg, ranch dressing, and milk together in a separate bowl; pour
mixture into potatoes and stir.
4. Heat vegetable in a large skillet over medium heat.
5. Drop tablespoon size scoops of the potato mixture into the hot oil.
6. Pan-fry until golden brown, 3 to 4 minutes on each side.
