A shortage of homes for sale has forced more prospective buyers to rent. That is driving up prices in the rental market.

The U.S. median rental price in June jumped 8.1% compared to a year ago, reaching $1,575, realtor.com® reports. Also, two-bedroom units saw the largest increase in rents at 10.2%, as the demand for more space continued to remain high.

Rental prices in 44 of the largest 55 metros broke records last month. The largest gains were recorded in Riverside, Calif.; Tampa; and Phoenix, which all posted increases above 20% year-over-year, realtor.com® reports.

“The surge we’re seeing in rental prices is likely to exacerbate the K-shaped, or uneven, nature of the pandemic recovery in the U.S.,” says Danielle Hale, realtor.com®’s chief economist. “Rents are rising at a faster pace than income, which is adding to the challenges faced by lower-income Americans as they struggle to recover from job losses and other hardships brought about by COVID.”

Rental prices aren’t likely to ease unless there is a shift with a higher number of homes for sale and rent, Hale adds.

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Investors are snatching up homes and are being blamed for contributing to the inventory shortages in several markets across the country. Investors are buying homes and then holding on to the properties, often turning them into rentals, and not returning very many homes back onto the market from their growing portfolios. Housing experts say that in some markets it’s exacerbating housing shortages.

Investors have been blamed for taking away the most housing inventory in Phoenix; Charlotte, N.C.; Miami; Tampa, Fla.; and Chicago, according to a new analysis from realtor.com®. Overall, investors are contributing to the inventory shortage in 31 of the top 50 U.S. markets, the study shows.

“Today’s buyers are facing a tough market and data shows they aren’t just competing with each other,” says Danielle Hale, realtor.com®’s chief economist. “With deep pockets and more flexibility, investors can be daunting competition for the typical home buyer.”

In many markets, buying a home is attractive to investors, especially when home prices and rental prices are rising.

Realtor.com® researchers analyzed U.S. deed records from January 2000 to April 2021 to determine the number of investor sales versus purchases in the 50 largest U.S. markets.

Investors currently are buying more homes than they are selling. But they can contribute to inventory levels too. For example, investors are selling more homes than they are buying in about 19 markets of the 50 tracked, and replenishing the most number of homes for sale on the market in Atlanta, Dallas, Baltimore, Los Angeles, and San Francisco, the realtor.com® study shows. The markets where investors are contributing tended to post smaller inventory drops than markets where investors were holding on to properties longer, the study notes. But two notable exceptions are in Atlanta and Dallas, where inventory gaps have grown larger despite more investors selling.

“High home prices, slower rent growth, and uncertainty over the future of work in these markets are likely causing investors to re-evaluate their property portfolios in these areas,” Hale says. “And with homes still selling quickly, even in these metros, an investor deciding to sell can look forward to being able to reposition their dollars elsewhere in a very short period of time.”

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Apartment rents are on the rise, but not everywhere. That said, “finding a cheap apartment often feels like winning the lottery,” notes Apartment Guide, a listing and resource for apartments nationwide, in a recent study.

Apartment Guide identified areas throughout the country where rent is affordable and less than the nationwide average of $1,711 per month for a one-bedroom apartment. For example, Maryland, Alabama, and Michigan have seen significant decreases in average rents over the past year. Also, some of the cheapest apartments tend to be near city centers and often along the East Coast, according to the study.

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Co-working spaces continue to have a big moment in the commercial sector as more businesses are drawn to flexible and short-term solutions amid COVID-19 and its latest fast-spreading delta variant.

Technology companies are reportedly one of the major industries that are snatching up co-working spaces, such as WeWork, The Wall Street Journal reports. Their rental contracts may be for “hot desks” or for more than 50,000 square feet leases that span just a month.

Some companies are turning to such short-term solutions while they make decisions on return to work policies in the pandemic. Many companies had originally planned for this fall, but a surge in COVID-19 cases may put that timeline in jeopardy.

“In a time of uncertainty we provide flexibility to corporations and small businesses trying to figure out what their employees want,” Melinda Holland, WeWork’s head of sales for the U.S. and Canada, told The Wall Street Journal.

WeWork, a giant in this space, has seen business quickly climbing in the pandemic. It generated $215 million in revenue in July, one of the strongest desk sales months on record. Industrious, another shared space firm, also reported some of its strongest sales in the company’s nine-year history last month.

“Inquiries are off the charts with very short lead times,” Debra Larsen, chief executive and founder of WorkHouse, which rents out desks in New York. “Companies are solving for September.”

Companies are using flexible spaces to give employees who are working from home another option for work. Some firms are using these spaces as a substitute for their pre-pandemic headquarters that may congregate a higher number of people. Or they’re using it as a way to recruit more employees—without relocating them—by offering them workspaces all across the country.

While co-working spaces take off, leasing activity in the office market has been recovering much more slowly. Office vacancy has climbed to 18.5% in the second quarter, which is nearing a 19.7% record that was reached in 1991, according to Moody’s Analytics.

“Companies are still in that discovery phase that work is going to be done differently,” Julie Whelan, global head of occupier research at CBRE Group, told The Wall Street Journal. “The beauty of these [co-working] providers is that if something doesn’t work they can bail and try something new.”

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The blistering cold temperatures throughout the country this week may put some properties at risk of damage. Watch out for these signs.

Many areas of the country are experiencing blistering cold weather, even those that aren’t used to freezing temperatures. Rapid temperature swings could cause substantial issues to a home’s foundation, warns Groundworks, a nationwide foundation services company.

Every year, one in 60 homeowners file claims related to water damage or freezing, according to the Insurance Information Institute. That accounted for nearly 20% of all insurance claims in 2020—at an average cost of more than $10,000 per claim. The price tag to fix a damaged foundation could easily stretch even higher.  

REALTOR® Magazine caught up with Brian Black, Groundworks’ director of sales training and business development, to learn more about how a harsh winter could be affecting a home’s foundation and the signs of potential damage.

Q: How can cold, wintry weather damage a home?

A: Brutal cold is damaging in several ways, depending on your home’s foundation type. If you live above a crawl space, your home’s pipes are typically located beneath the floors. Freezing temperatures can cause pipes to burst, resulting in extensive damage. Frozen pipes are more than just frustrating. According to the Federal Emergency Management Agency, a one-inch flood caused by a broken pipe can result in about $25,000 in damage. 

If you have a basement or slab foundation, it’s the concrete you need to worry about. Concrete is porous, meaning it absorbs water. Water expands when it freezes, causing concrete to break and crack. When the spring thaw eventually arrives, water can easily find its way into your home through these cracks.

Furthermore, frozen ground is one of the three causes of inward basement wall movement. The other two are the weight of the soil and the weight of water in the soil. When these three contributors combine, it pushes basement walls inward.

What are the signs to look for?

For homes with a crawl space, the first sign of a problem is cold floors. As the issue progresses, homeowners will notice a problem when a faucet is no longer working. If none of the faucets are running, the frozen pipe is probably near the main water line.

Homeowners with basements and slab foundations should look for cracks both inside and outside their home. Cracks can vary in size and direction. That can help tell professionals why the problem is occurring. Inward wall failure will show as horizontal and vertical cracks on the basement wall or even drywall.

What should homeowners do if they suspect any damage to their foundation?

It’s best to have a foundation specialist inspect any cracks as soon as possible. Your home’s foundation supports everything in your house. If it’s damaged, you’ll discover costly secondary problems very quickly. So, it’s best to act fast.

Foundation work isn’t a DIY project. Choosing a company with the knowledge and tools to best solve your specific foundation problem is the best choice. Look for a company that customizes repair options to your home, offers long-term warranties and has a history of working with the specific soil and climate in your area.

What makes a home vulnerable to frozen pipes?

First, it’s important to understand where the majority of your pipes are located. In different parts of the country, pipes are installed in different areas of a home. In warm-weather regions, pipes are weatherized to handle summer heat and are placed in exterior walls and attics. But this makes them vulnerable to damage during rare cold events. In cooler climates, pipes are often located within the floor joists in basements and crawl spaces.

The best way to prevent frozen pipes and create a more comfortable environment overall is to seal out any outside air through encapsulation. But there are some easy steps you can take to beat the freeze and keep water flowing right now. Consider insulating pipes, allow for a constant drip, open cabinets to allow for warm air circulation and remember to leave the heat on and keep a consistent temperature throughout your home during the winter.

What can homeowners do to “winterize” their property?

The number one most effective route to winterize your crawl space is through encapsulation. Sealing your crawl space from outside air and circulating warm, conditioned air protects pipes and creates a more comfortable living environment. Plus, you can save nearly 20% on your energy bills. Homes with basements have a similar process involving sealing the rim joist where pipes enter and exit the home, along with moving warm air throughout your home. All homeowners should check for plumbing leaks and look to improve energy efficiency by replacing filters or adding a smart schedule on their thermostat before sub-zero temperatures and blustery winter weather hits.

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Reprinted with permission

Office buildings are looking for ways to add in more outdoor spaces for employees to relax, work, and meet up. It’s become a must-have space since the pandemic and an important amenity in trying to attract employees back to the office.

“We’ve been involved in office space and building design, and the evolution of office buildings, for 40 years,” Dan Kaplan, a senior partner at FXCollaborative, an architecture firm, told the Commercial Observer. “And, over the last 10 to 12 years, the demand for exterior space in office buildings has grown, and, with the pandemic, it has really exploded.”

More green and outdoor space have become a greater priority for office buildings, whether a newer or older building.

“There are plenty of great buildings that are older and vintage, and might not have the ability to activate terraces to provide outdoor space, but this is a place where all owners and landlords are looking to set themselves apart,” Michael Slattery, associate CBRE field research director, told the Commercial Observer.

Even projects like The Spiral in Manhattan feature a spiral of outdoor decks throughout the skyscraper’s 1,005-foot height. Each one of the 65 stories has a terrace.

“People don’t like to be holed up,” Jeffrey Paine, co-founder of Duda/Paine Architects of Durham, N.C., told the Commercial Observer. “People want to be able to step outside during the day, even in a high-rise office building.”

Office buildings want their employees to be able to use the terraces and outdoor spaces all year too. They’re bringing outdoor space heaters as well for when the weather cools. Also, more “green” is being added indoors. Biophilic elements like indoor plants also are being brought into office spaces.

“People have realized that having the ability to go outside, and having the ability to integrate that with indoor space, is just a tremendous advantage in this culture of trying to attract and retain new talent,” Elliott Ingerman, partner for the Tribeca Investment Group, told the Commercial Observer. “If you’re working 10 to 12 hours a day, take a little pop out to a terrace. Post-pandemic, we now realize we have to lure people back tow ork. Work should not be a boring environment.”

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