This Month In Real Estate Investing August 2024

August 2024 Real Estate News: Kamala Harris, Wall Street, AI Robots, and More

August 2024 has been  a whirlwind month for the real estate industry, with policy shifts, market disruptions, and even a futuristic twist.

Here’s a breakdown of the key stories making headlines this month.

Kamala Harris Takes Aim at Wall Street’s Housing Domination

Vice President Kamala Harris is making waves with her proposal to curb Wall Street’s growing influence in the single-family rental home market.

Her “Stop Predatory Investing Act” aims to limit large investors from scooping up homes and driving up prices, a trend that could see corporate ownership reach 40% by 2030.

Critics argue that this move might not significantly help homeowners, as smaller, local investors also play a crucial role in the market.

Nonetheless, Harris’s broader strategy includes building 3 million new homes, offering tax incentives for builders, and providing substantial down-payment support for first-time buyers, all in an effort to tackle the affordable housing crisis.

Tacoma Residents Fight Against Affordable Housing Plan

In Tacoma, Washington, a heated debate is underway as residents oppose a controversial plan to turn a vacant church into affordable housing for up to 51 young adults.

Neighbors are concerned about increased traffic, noise, and parking issues, arguing that the development is out of sync with the single-family residential zoning in the area.

As the city reviews these concerns, a final decision on the permit is expected soon, with both sides eagerly awaiting the outcome.

Kevin Spacey Refuses To Leave Foreclosed Baltimore Condo

In a bizarre twist, actor Kevin Spacey is reportedly refusing to vacate his $5.6 million Baltimore condo after it was sold at a foreclosure auction for $3.25 million.

The buyer, real estate investor Sam Asgari, claims Spacey has asked to remain rent-free for six months, a request his legal team denies.

Spacey’s financial troubles stem from unpaid legal fees following his 2023 sexual assault trial, despite being acquitted.

Charlie Munger’s Real Estate Wisdom

Charlie Munger, Warren Buffett’s long-time partner, once called real estate a “lousy investment” for companies like Berkshire Hathaway.

However, his statement was more about strategy than a blanket dismissal of real estate.

Munger’s wisdom lies in understanding that success in investing comes from aligning opportunities with one’s strengths.

His avoidance of real estate investments was also influenced by tax concerns and the risks of competing with more knowledgeable investors.

Grant Cardone Predicts Florida and Texas Will Prosper Under Harris

Real estate mogul Grant Cardone believes Florida and Texas could benefit significantly if Kamala Harris wins the presidency.

He argues that these states’ pro-property owner policies, contrasted with the stricter regulations in other states, could attract more investments and residents.

However, cooling housing markets in these states may limit the quick profits Cardone anticipates.

Zillow’s 2025 Home Price Forecast Shows Market Cooling

Zillow’s latest forecast predicts a significant slowdown in U.S. home price growth, with prices expected to rise only 0.9% from July 2024 to July 2025.

This follows a 2.8% increase in the previous year, highlighting the cooling market driven by affordability concerns and rising inventory.

As competition for homes eases, more sellers are cutting prices, with 26% of listings on Zillow receiving reductions in July 2024.

NYC Real Estate Giant Sued for Discriminating Against Low-Income Tenants

The Parkoff Organization, a prominent New York City real estate company, is being sued for allegedly discriminating against low-income renters using housing vouchers.

Undercover “testers” revealed that Parkoff agents ghosted or lied to voucher holders while favoring wealthier applicants.

The lawsuit highlights income discrimination that often correlates with racial bias, drawing attention to the broader issue of fair housing practices.

The Homeownership Nightmare: Investors Hijacking the Housing Market

Investors are quietly taking over the U.S. housing market, buying one in every six single-family homes in Q2 2024.

This surge has driven up home prices and rents, making homeownership increasingly unattainable for many Americans.

With rising profits for investors and fewer opportunities for regular buyers, the American Dream of owning a home is fading fast.

Utah Startup Homie Sues National Association of Realtors

Utah-based real estate tech startup Homie has filed a federal antitrust lawsuit against the National Association of Realtors (NAR), accusing it of anticompetitive practices.

Homie claims that NAR’s policies inflate commissions and that its members steer buyers away from Homie-listed properties due to lower commission rates.

The lawsuit echoes broader concerns about NAR’s influence on real estate transactions.

DOJ Sues Software Company for Rent Price Collusion

The Department of Justice, along with eight state attorneys general, has filed a lawsuit against RealPage Inc., accusing the company of enabling a nationwide scheme among landlords to fix rent prices.

The lawsuit claims RealPage’s software facilitated illegal collusion on rent pricing, raising significant concerns about housing affordability.

Pickleball Courts Hinder Sagamore Beach Resident’s Home Sale

Judith Ann Roan Comeau, a Sagamore Beach resident, has been unable to sell her home due to constant noise from nearby pickleball courts.

Despite reducing the price, Comeau has removed the listing after eight months on the market.

The situation underscores the impact of new recreational trends on property values.

The Potential Impact of Harris’ Unrealized Gains Tax Proposal

The Biden-Harris proposal to tax unrealized capital gains could have devastating effects on the real estate market and investor wealth.

Targeting high-net-worth individuals, the tax could spike property prices, reduce market liquidity, and burden investors with taxes on gains they may never realize.

Critics warn of catastrophic consequences, including a destabilized housing market.

BONUS: AI Robots in Your Home?

In a lighter news item, the $16,000 Unitree Robotics G1 humanoid robot is sparking interest in the future of home automation.

While not yet fully equipped to take over household chores, the robot represents a significant step toward integrating AI into daily life.

Exciting Summer Real Estate Roller Coaster

August 2024 has been an eventful month for real estate, with major developments ranging from Kamala Harris’ legislative push against Wall Street to AI robots creeping into our daily lives.

Whether you’re a seasoned investor or just curious about market trends, staying informed is crucial as the landscape continues to evolve.

Don’t miss the full breakdown on This Month In Real Estate Investing with James A. Brown and his industry-expert guests.

Stay tuned for more real estate news and insights next month!