Build-to-Rent News: Hot Inflation Pushes December Rate Hike Odds Above 90% (Nov 11)

What happened today

Inflation ran hot again, and the Build-to-Rent sector is feeling it in rates, regulation and supply. Here are the four stories behind today's episode of Build 2 Rent News.

Rate hike odds top 90%

October CPI rose 0.4% against 0.3% expected. Core and shelter each rose 0.3%. According to CME FedWatch, markets now put the odds of a 25 basis point Fed hike in December at 90.5%, with 9.5% odds of a 50 basis point move. The 30 year mortgage rate moved from 7.18% to 7.3%, per Mortgage News Daily.

Sources: Real Estate News, HousingWire.

Progress Residential settles with the FTC

Progress Residential and its owner, Pretium Partners, will pay $49.75 million to settle charges brought by the FTC and four states, the largest settlement against a landlord in FTC history. $48.5 million goes to the FTC for renter redress and $1.25 million to Arizona. The order requires advertising the true total monthly rent, with all mandatory fees included. There is no admission of wrongdoing, and a federal judge must still approve the settlement. For single-family rentals, all-in pricing is becoming the standard.

Sources: FTC, Atlanta Journal-Constitution.

Idaho breaks ground on its largest Build-to-Rent townhome community

Layton Construction and Dominium have started the 251-unit Residences at Wilson Creek in Caldwell, Idaho. The community sits on 27 acres with two to four bedroom townhomes, fenced backyards, walking paths, a dog park and 2 acres of open space. Completion is expected by the end of 2028.

Source: Idaho Business Review.

Australia's Build-to-Rent pipeline grows

Deutsche Asset Management, FYVE and Binah plan 414 Build-to-Rent apartments in a 34-storey tower in Liverpool, Western Sydney, with planning approval expected in 2027. In Perth, 60 social and affordable units are underway in Butler, and Western Australia raised its land tax exemption from 50% to 75%.

Source: Financial Standard.

Watch the full episode

Watch the full episode on YouTube, and see where rents and income are moving in the Build 2 Rent Market Scorecard.

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