🏠 Debt on the rise & property predictions

Gen Z is struggling to pay their monthly credit card bills.

While debt is on the rise for every demo — thanks, inflation — ages 18 to 29 are missing the most payments, according to Insider. They’re also the most vulnerable group when there are layoffs, which the Federal Reserve predicts will affect one million Americans next year.

How will Gen Z ever catch up? It’s easy. Just do as Paris’ shirt says:

SPILLING THE (REAL)TEA

$300,000 just to park? That’s the going price for these futuristic spots beneath luxurious apartment buildings in New York City where robots retrieve residents’ cars.

How much do professional soccer players make? Well, if you’re on Lionel Messi’s level (who Forbes named the highest-paid athlete this year), enough to own an estate in Argentina, a mansion in Ibiza, and an abode in Barcelona. Architectural Digest did a deep dive into the footballer’s real estate dealings.

Pretty soon, you won’t need a MetroCard anymore to get around New York City, where a more sophisticated, tap-and-go metro system is on its way. But for artist Thomas McKean, who’s been using MetroCards to make his art for more than 20 years, that means he’s going to have to find a new medium.

Celebs are losing weight from the diabetes drug Ozempic — and now even our architecture is trending toward a thin aesthetic. The world's skinniest skyscraper is now complete, standing 91-stories tall in none other than New York City.

TO REFINANCE OR NOT TO REFINANCE?

The answer for most homeowners right now is “no,” since interest rates are still hovering around 7%. Here’s a quick guide to when you should consider refinancing your mortgage:

01 — When interest rates are low: If today’s interest rates are lower than your current interest rate (which they most likely are not right now).

02 — When your credit score has improved: If you’ve raised your credit score since you took out your mortgage — let’s say 740 or above.

03 — When you’ve gotten your debt-to-income ratio down: If you’ve paid off a few debts — maybe a car, student loans, or credit cards — since your move-in date.

WHAT'S BREWING

📚 What we're reading: Lessons in Chemistry. A bold, smart, and often hilarious tale about a scientist in 1960's California whose career takes an unlikely turn when she becomes the star of a beloved TV cooking show. You'll want to add this one to your reading list 👇

🎧 What we're listening to: High Low with EmRata is yet another celebrity podcast no one asked for, but for some reason, we can’t stop tuning in.

👀 What we're watching: The FIFA World Cup kicked off in Qatar this past week. After tying with England and Wales, the USA will play Iran this Tuesday. 🇺🇲⚽

🛒 What we're adding to our shopping cart: Black Friday has been bad for our bank accounts, and Cyber Monday deals are currently assaulting our inbox. Let’s actually empty our carts this week — who’s with us? 😅

PROPERTY CRUSH

Dreaming of a second home where you can go to sip margaritas by a pool overlooking the Pacific? If you’ve got $90 million laying around (casual), then we know the perfect place.

El Cielo 2 is a cliffside compound sprawled across 2.43 acres, and it’s the most expensive piece of real estate to ever hit the Los Cabos, Mexico, market. Take a peek inside.

PROPERTY PREDICTIONS

The Host Co. is a platform for short-term rental hosts where they can sell their guests the products they’ll need during their stay. Based on the company’s own market data, here are some of their 2023 predictions:

What will motivate travelers to pursue short-term rentals in 2023?

We saw a lot of “bucket list” travel in 2022, coming out of the pandemic. But in 2023, we’ll see budget-conscious travelers choosing short-term rentals for weekend getaways and travel within three hours driving distance of their homes.

Now that big events are back, we’ll see travelers booking short term-rentals for the Super Bowl in Phoenix, Coachella in the Colorado Desert, and other large festivals.

Theme parks are showing a huge boom, with short-term rentals nearby also seeing record bookings.

How is technology further expected to transform the short-term rental industry?

Tech-savvy travelers are now expecting the amenities of hotels in their short-term rentals. In 2019, only 40% of Americans had stayed in a short-term rental. Now, that percent is 80%. Short-term rentals are rapidly moving to a more tech-enabled state with keyless entry, digital concierge (both human- and AI-enabled), and consistently strong WiFi throughout a property.

What will motivate new short-term rental hosts in 2023?

There are two really interesting trends motivating hosts, and they are on opposite sides of the age gap:

1) For Boomers and older GenX it’s extra retirement income. The fastest growing demographic of hosts is still women over 60.

2) For young people… it’s TikTok! The “side hustle” and “passive income” trends have increased STR ownership among young people. And TikTok has also helped inform young people about the value of home equity.

How will STRs compete with traditional hotels in 2023?

We’ve heard the current short-term rental industry being called “high demand, extremely low predictability." In order to compete with hotels, short-term rentals are becoming increasingly streamlined. This means consolidation of property management companies and property management software. It also means that short-term rentals need consistent cleaning protocols, consistent amenities, and even consistent in-home products like soap. Travelers need to know what they are getting before they arrive, and what to expect if they rebook.