The Current Challenge for Investors

– Following up on old listings that have gone cold
– Spending hours prospecting with little to show for it
– Struggling to balance client work with business development
– Even when using CRMs and automation tools, much of the process still requires heavy human involvement. Agents are often left juggling between serving current clients and trying to secure future ones.

How AI Fits Into Real Estate

AI doesn’t replace the human touch that makes real estate personal. Instead, it acts as a filter, allowing agents to focus on what they do best, advising clients and closing deals, while automating the early, repetitive work.

Key ways AI is now helping agents include:

Property Data Scraping: AI tools can pull listings from platforms like Redfin or MLS, using filters aligned with an agent’s target market.
Smart Outreach: Instead of mass cold calls, AI can send personalized SMS or ringless voicemails to homeowners at scale.
Conversational AI: Automated agents can manage the initial back and forth until motivation or interest is confirmed.
Pipeline Delivery: Only qualified conversations move into the agent’s CRM, saving hours of wasted effort.

A Practical Example: NextProp AI

One emerging solution in this space is NextProp AI, a platform designed specifically for real estate professionals. Rather than offering generic marketing automation, it focuses on two core pain points for agents and investors:
Engaging Realtors and Listings at Scale: The system scrapes data from Redfin/MLS and automatically starts conversations with listing agents, filtering down to opportunities that fit the buyer’s exact criteria.

Direct to Homeowner Outreach: Investors can upload homeowner lists—or, with our new feature, connect directly with data providers such as BatchData through their API. The platform then sends ringless voicemails to initiate the outreach, and when homeowners call or text back, an AI agent manages the conversation to ensure only motivated sellers reach the agent’s desk.
The result is a consistent flow of qualified leads, delivered with minimal manual effort.

Why This Matters for investors and We Buy Houses

The real benefit isn’t just efficiency, it’s focus. By letting AI handle the first 20, 30, or even 50 conversations, professionals can dedicate their energy to building relationships and structuring deals.
This doesn’t just increase productivity; it enhances client service. Instead of being distracted by prospecting, agents can give more attention to active clients while still keeping their pipeline full.

The Future of Lead Generation

As AI continues to evolve, it will likely become as essential to real estate as CRMs and listing portals are today. Agents who embrace it early gain a competitive edge, not because the technology replaces them, but because it amplifies their ability to connect with the right clients faster.
Real estate has always been about timing and trust. AI ensures agents spend less time chasing the wrong doors and more time opening the right ones.

Investor Activity: What the Numbers Say

Institutional investors—typically large entities such as hedge funds, private equity firms, or real estate investment trusts (REITs)—have steadily acquired Arizona housing over the past several years. These groups aim to generate profits through long-term rentals, short-term vacation stays, or eventual resale. In many metropolitan areas, such as Phoenix and Tucson, this trend has contributed to tighter inventory, rising home prices, and increased rent burdens.

Investor Impact on HOAs: Short-Term Rentals, Fair Housing, and Community Integrity

Over the years, tensions have escalated in communities where investors buy homes and convert them into Airbnb-style rentals; this changes the character of neighborhoods, increases noise and traffic complaints, and puts added pressure on HOAs to enforce potentially outdated rules, often without clear legal authority or guidance.

Investor-owned homes used as short-term rentals often lead to transient occupancy, inconsistent rule enforcement, and confusion over liability when problems arise. HOAs must frequently update governing documents to clarify rental restrictions and enforce the rules in their communities. This may trigger an influx of disputes and present a financial burden if they acquire legal fees, forcing HOAs to walk a tightrope as they work to cater to the needs of their community without violating state and federal laws.

Legal Gray Areas and the Role of State Policy

Arizona lawmakers have begun to respond to concerns about investor influence in housing. Some proposals under consideration include limiting the number of properties an entity can own in a given area or restricting how homes can be used (i.e., short-term versus long-term rentals). However, efforts to regulate investor activity often clash with property rights advocates and face resistance from real estate lobbies.

HOAs are not state regulators, but they do have an obligation to enforce community standards. At the same time, they must navigate fair housing laws, avoid discriminatory practices, and respect owners’ rights—even when those owners are LLCs or large investors.

HOAs must be careful not to create policies that unintentionally discriminate against protected classes, such as limiting occupancy in a way that could be seen as targeting protected classes, such as families. Additionally, Arizona law requires that enforcement be reasonable and consistent. This is especially important when complaints lead to legal action.

The Future of Community Associations in a Shifting Market

As investor activity potentially cools, many community associations may hope for some relief from the intense pressure of recent years. But even with the current movement in investor activity, many neighborhoods are already saturated with investor-owned homes, meaning the effects will linger. The impact is greater in popular metro areas like Phoenix, where investor purchases accounted for 10% of homes, and it remains one of the top 5 cities for investors.

To manage this, HOAs should take proactive steps, including:

• Reviewing governing documents to ensure rental restrictions are current and enforceable.
• Consulting legal counsel when drafting or updating rules related to leasing, noise, or usage restrictions to avoid potential litigation.
• Educating board members and residents on fair housing compliance and the legal limits of HOA enforcement powers.
• Engage with local lawmakers and publicly support legislation that reduces investor impact.
• Be open and transparent with residents regarding the measures taken to garner trust and support.
• Stay informed about pending legislation that could impact association governance or investor behavior.

Associations that are well-informed and legally prepared will be in the best position to maintain their community values. Whether or not investors remain a dominant force, HOAs must lead with clarity and compliance.

A Community-Level Approach to a Statewide Issue

Ultimately, Arizona’s investor-heavy housing market touches nearly every aspect of residential life—from affordability and availability to neighborhood culture and property maintenance. As the state seeks long-term solutions to its housing shortage, community associations will play a vital role in shaping how investor ownership is managed on the ground.

While the fluctuation in investor purchases may signal a moderation in investor appetite, the need for proactive governance is more important than ever. Vigilant HOAs that respond with clear policies, legal diligence, and a community-first mindset will be best equipped to protect their residents and uphold neighborhood standards.

For homeowners and board members alike, the question isn’t just whether investors are buying homes—it’s how their presence changes the fabric of communities, and what associations can do to respond wisely, fairly, and within the law.

Before August 17, 2024, the process was simple. Sellers paid the buyer’s agent commission—typically 2.5% to 3%of the home’s sale price—as part of the standard 5% to 6% total commission split between both agents. For veterans using a VA loan, the Department of Veterans Affairs (VA) explicitly prohibited them from paying their agent’s commission directly, ensuring they weren’t hit with unexpected costs at closing. The system worked, and veterans got the keys to their homes without extra financial strain.

But now? The NAR settlement has blown up that model. Sellers are no longer required to pay the buyer’s agent. Buyers—including veterans—must now negotiate their agent’s fee upfront, either by convincing the seller to cover it or paying it themselves. And while the VA has updated its rules to allow veterans to pay these fees (something that was forbidden before), that doesn’t change the fact that thousands of dollars in unexpected costs could now stand between a veteran and their dream home.

The NAR Settlement: A $418 Million Bombshell in Real Estate

The March 2024 settlement—a $418 million agreement between the NAR and home sellers who sued over inflated commission practices—didn’t just tweak the system. It rewrote the rules. Here’s what changed:

• No More Automatic Seller-Paid Commissions

Before, sellers had to offer a commission to the buyer’s agent, and it was non-negotiable. Now? It’s optional. Sellers can choose to offer nothing, leaving buyers to cover their agent’s fee—or risk losing representation in a competitive market.

• Buyers Must Sign a Contract Before House Hunting

Want to tour a home? First, you’ll need a signed agreement with your agent outlining their fee. No more casual showings—this is a legal commitment before you even make an offer.

• VA Loans Had to Adapt—or Veterans Would Get Left Behind

The VA quickly revised its policies to allow veterans to pay buyer-broker fees, something that was strictly prohibited before August 2024. Why? Because without this change, veterans would’ve been shut out of the market overnight. But now, they face a harsh reality: If the seller won’t pay, the veteran must.

The New Reality for Veterans: Higher Costs, Tougher Negotiations

So, what does this mean for veterans trying to buy a home today?

1. The “No-No” Loan Now Comes with a Catch

The VA loan still offers no down payment and no PMI—two of its biggest perks. But the “no extra costs” part? That’s over. If a seller refuses to pay the buyer’s agent, a veteran could be on the hook for $10,000, $15,000, or more in agent fees on a typical home purchase. For many, that’s a deal-breaker.

2. Sellers Hold All the Power—And Are Just Finding Out

In a hot market, sellers can afford to be picky. If a veteran’s offer doesn’t include seller-paid agent fees, their bid might get tossed aside in favor of a buyer whose agent is already covered. Veterans now have to compete harder—and that could mean paying more just to stay in the game.

3. Agents Are Rethinking Who They Work With

Some agents may hesitate to take on VA buyers if they know the seller won’t pay their fee. Why? Because 3% of $400,000 is $12,000—and if the buyer can’t (or won’t) pay, the agent works for free. Veterans need to find an agent willing to fight for them—or risk being left without representation.

4. The VA’s Quick Fix Isn’t Enough

The VA’s decision to allow veterans to pay agent fees was a necessary move, but it doesn’t solve the core problem: Most veterans don’t have an extra $10K+ lying around to cover their agent. The VA loan was designed to remove financial barriers—not create new ones.

Pro Tips

The game has changed, but veterans aren’t out of the fight. Here’s how to adapt and still land the home you want:

1. Be Ready to Walk Away.

Not every home is worth overpaying or covering extra fees. If a seller won’t budge, keep looking. The right home—and the right deal—will come along.

2. Not all agents understand VA loans—or are willing to negotiate hard for veterans.

Work with someone who specializes in VA loans and knows how to structure offers to include seller-paid fees.

3. Look for homes where the seller is motivated (divorce, relocation, inheritance). Consider stale listings.

Motivated sellers and those who’ve been on the market a while (check your local average DOM “days on market” and focus on properties that are past that average number) are normally more willing to make concessions.

The Bottom Line: The “No-No” Loan Isn’t Dead—But the Rules Have Changed

The VA loan is still one of the best deals in real estate—no down payment, no PMI, and competitive rates. But the NAR settlement has added a new hurdle: buyer’s agent fees. Veterans now have to negotiate harder, budget smarter, and choose their agents wisely.

The “No-No” loan isn’t gone—but it’s not as simple as it used to be. For veterans who adapt quickly, the dream of homeownership is still within reach. For those who don’t? The market just got a lot tougher.

Fortunately, HOAs in Arizona are not without tools. Through a combination of legal enforcement and practical prevention, associations can address these situations responsibly and effectively — particularly when encampments are tied to neglect by a specific property owner.

Foreclosure as a Last-Resort Enforcement Tool

In cases where homeless encampments are tied to an abandoned, neglected, or rented property, the HOA may face repair costs for surrounding common areas that are damaged by the encampment. Community Governing Documents often allow these repair costs to be assessed directly to the negligent owner through standard assessment practices. When a homeowner fails to pay these assessments in this scenario, foreclosure can become an option that the HOA can take by enforcing its lien rights. Many times, this will be the step that gets a homeowner to take action so that they do not lose the property.

Foreclosure is a serious step, but it gives the HOA the ability to regain control of a property that has become a safety hazard if the owner chooses not to pay their assessments and correct the violations. Once in control, the association can begin the cleanup process and prevent further unauthorized occupation.

Sending a Criminal Abatement Notice to the Property Owner

When a homeowner allows — either through negligence or tacit approval — their property to become overrun by squatters or encampments, the HOA can issue a criminal abatement letter. This formal notice outlines the violations occurring on the property and demands prompt corrective action by the owner. If the owner fails to correct the conditions on their property within the time prescribed to them, an Association may then pursue a restraining order to abate and prevent continuing or recurring violations and/or criminal activity. If the owner still fails to cooperate and to abate the violation, the appropriate authorities can abate the violation, and their costs will be a lien on the property.

Even though it is not a legal filing, a criminal abatement notice is important to document how the HOA has tried to enforce compliance. This step can sometimes be the push to motivate the property owner to take action, or if they don’t, then the HOA can escalate through other legal means if the property is continuing to deteriorate.

Compelling Compliance by Filing for an Injunction

If the abatement letter is ignored and conditions worsen, the HOA can seek a court-issued injunction ordering the homeowner to bring the property into compliance with the association’s governing documents and applicable local laws.

An injunction provides real legal force. When a property owner does not comply with a court order, additional penalties and even an arrest warrant could be avenues to address the situation. Sometimes dire circumstances necessitate a swift remedy when community safety and property values are at stake.

Being Proactive to Ensure Long-Term Stability

Prevention is the best strategy when there is an opportunity to be proactive and legal disputes are not occurring. HOAs can adopt certain protocols to lessen the risk of encampments, such as:

• Make property owners register details for when they rent their property
• Provide community residents with education on best practices when they see suspicious activity
• Add fences, gates, or regular patrols to vulnerable areas
• Deter unauthorized overnight stays with lighting and surveillance
• Collaborate with social services and law enforcement to address urgent situations promptly

Balancing Empathy with Community Standards

Homelessness is a complex issue, so when possible, it’s best to connect these individuals with social services, local shelters, and other outreach help. Legal and safety issues can be balanced with mindfulness of the community’s values and upholding standards.

Final Thoughts

Homeless encampments present real challenges, but Arizona HOAs have effective, enforceable options. Whether through prevention, foreclosure, abatement, or injunctions, boards can and should act decisively when a neglected property threatens the health, safety, and cohesion of the community.

By combining legal strategy with thoughtful prevention and consistent enforcement, HOAs can navigate these issues responsibly and maintain the integrity of their neighborhoods.

REAM: What inspired you to become a real estate agent, and how did you get started in the industry?

JR: I got into real estate because I was passionate about building something of my own while helping people through one of the biggest financial decisions of their lives. Early on, I saw how many homeowners were frustrated with the process—delays, miscommunication, deals falling through—and I wanted to create a team that would raise the bar. I started out with just grit and a phone, knocking on doors and making calls. Over time, I built a system that could scale and serve families at a high level, and that turned into The Roy Group.

REAM: How have you adapted to changes in the Kansas market over the years to maintain such a high success rate?

JR: Kansas has seen its fair share of ups and downs—housing shortages, interest rate spikes, and shifting buyer expectations. We’ve stayed ahead by investing heavily in training, technology, and our team structure. Whether it’s adapting our marketing, refining our pricing strategies, or expanding our inside sales team, we always stay proactive rather than reactive. Flexibility is key, but so is consistency—especially in how we communicate with our clients.

REAM: What trends are you seeing right now, and how should buyers and sellers adapt?

JR: Inventory remains tight, and rates have pushed some buyers to the sidelines. But motivated buyers are still out there, and they’re focused on value and move-in ready homes. Sellers need to price strategically—buyers are pickier than they were in 2020. For buyers, patience and having your financing lined up is more important than ever. We’re also seeing more investors entering the market, taking advantage of opportunities others miss.

REAM: For someone looking to invest in real estate for the first time, what key advice would you give them?

JR: Know your numbers. It’s not just about buying a house—it’s about the return. Understand cash flow, cap rate, and what kind of rehab a property needs before making a move. Work with people who’ve done it successfully, and don’t try to shortcut the learning curve. I’d also say: stay disciplined. A great deal doesn’t usually come from emotion—it comes from patience and planning.

REAM: What’s one of the biggest challenges you’ve faced in a deal, and how did you handle it?

JR: One of our toughest deals involved a last-minute financing collapse—just days before closing. It was a dream home for the family, and they had already given notice at their rental. We pulled every string, called every lender, and found a solution through a local bank within 48 hours. It was a reminder that deals don’t fall apart—they’re saved or lost based on how hard your team is willing to work.

REAM: What specific causes or organizations do you support, and how did you get involved with them?

JR: In the past, we’ve supported organizations like the Wichita Children’s Home and the Kansas Food Bank. Both serve vulnerable populations in our community—kids and families who need immediate support and long-term care. Giving back to causes like these aligns with our mission of serving people, not just in real estate, but in real life. Whether it’s through financial donations, volunteer time, or raising awareness, we believe strong communities start with businesses that show up and contribute.

REAM: Can you share a story about a time when your charitable efforts made a meaningful impact?

JR: A local single mom was moving into her first home but had no way to move her belongings. She also couldn’t afford movers. We donated our truck, brought team members to help, and got everything moved in one day. She was in tears by the end of it. Real estate is more than transactions—it’s people’s lives. That day reminded us why we do what we do.

REAM: How do you work to maintain balance between your home life and work life?

JR: It’s not easy when you run a high-volume team, but I’ve learned to protect family time the same way I protect appointments. I schedule dinners with my family, unplug on Sundays, and make sure I’m present when I’m home. I also hire and train great people so the business doesn’t need me 24/7. Trust and delegation are critical.

REAM: What is something your colleagues would be surprised to learn about you?

JR: Most people don’t know I’m an introvert at heart. I love leading and being around the team, but I recharge with quiet time and close family. I also have a creative side—music, journaling, even some sketching. That’s not what most people expect from a sales leader.

REAM: Tell us a bit about yourself outside the office.

JR: Outside of real estate, I’m a husband, dad, and pretty serious Kansas (KU) football fan. I love coaching my kids’ sports teams, traveling with my wife, and doing anything outdoors—whether that’s a weekend lake trip or just grilling in the backyard. I’m all about building a great life, not just a great business.

Ranno brings a proven track record of transforming organizations through digital innovation and a wealth of expertise in expanding markets and developing sustainable SaaS product models in the real estate and education sectors and for member associations. She joins NAR from property management software provider RealPage, where she served as Vice President of Product Management. During her tenure at RealPage, Ranno successfully developed and executed product vision and strategy for a $304M business unit, driving significant revenue growth and business transformation.

“Elizabeth offers a rare and extremely valuable combination of in-depth knowledge of the real estate industry, a passion for education and training, and a sharp business acumen. She not only understands how to create content that resonates with our members, but she also knows how to build sustainable revenue streams to support long-term growth. We’re excited for her to lead the next chapter of innovation in our education and events programming,” said NAR CEO Nykia Wright.

Prior to her role at RealPage, Ranno served as Vice President for LEAP Innovations, a Chicago-based nonprofit organization focused on tailored education and training experiences for students. At LEAP, Ranno lead a cross-functional team that launched a tech-enabled education content suite, and she was instrumental in redesigning the organization’s educational business model to generate revenue that reduced dependence on philanthropic funding.

Ranno’s earlier roles include serving as Vice President of Product Management for ISACA, an IT governance member association; Vice President of Product and Planning for the American Health Information Management Association; and Chief Product Officer for the Professional Education Institute’s Real Estate Education and Training Events unit, where she transformed its $100 million real estate education business into an online platform, successfully expanding into global market events while more than doubling its product margin.

In her new role, which begins May 5, Ranno will oversee NAR’s education initiatives and major events, focusing on enhancing member engagement and delivering high-quality educational experiences. Her appointment marks a significant step forward in NAR’s commitment to excellence in real estate education and professional development.

“I’ve spent my career at the intersection of real estate, technology, and education—building tools and experiences that empower professionals to thrive in a constantly evolving market. I’m excited to bring that passion to NAR and help deliver learning opportunities and events that are more engaging, practical and valuable for our members,” said Ranno.

“Your Castle offers a unique model for real estate teams that acts as more of a partnership,” said Jaden Hanson, co-founder/owner of Mile High Lifestyles at Your Castle Real Estate. “They are truly invested in our growth and success. We now have an entire team to support us with managing broker support, daily training and in-house professional printing. Since joining the company, we have been adding two to three new agents per week, including top producing agent Juan Munoz, and my co-founder, Sean Nealon, who is also a top producer.”

“We couldn’t be more thrilled to welcome Mile High Lifestyles to Your Castle Real Estate,” said Jeremy Lambert, director of recruiting at Your Castle. “They are the type of high-caliber professionals that thrive in our agent-first environment. We provide the systems, support, and structure that top-producing teams need to scale, and we’re excited to help them break new records in 2025.”

“The atmosphere on our team is incredibly positive, and I have many people to thank for it,” said Hanson. “Several agents are stepping into leadership and support roles, including Amanda Hoang, Amber Page, Abraham Barrera, Adriana Ramirez, Euna Klein, Becca Jacobson, and Deanna Koether. Above all, I want to give special recognition to our top producer of 2024, Joe Solomon. Joe has become a selfless leader, and we wouldn’t be where we are without him.”

Your Castle is known in the industry as a data-driven agency that provides its agents with relevant data to help with the sales process. It recently purchased new Customer Relationship Management technology to help support their agents, called Rechat. The company provides an in-house marketing team and print shop that is available to agents for the entire process from listing to selling to buying. It also offers training for agents of all levels and stages of their careers.

Beyond generating rental income or serving as an infrequently used guest house, today’s ADU marketplace offers a practical solution for housing family members of all ages. Whether accommodating aging parents, adult children, or relatives, Accessory Dwelling Units (ADUs) can provide a comfortable and independent living space while maintaining proximity to the main residence. This arrangement promotes multigenerational living and strengthens family bonds by allowing loved ones to live nearby while preserving privacy and autonomy.

ADUs can also serve as transitional housing for family members during life changes such as downsizing, job relocation, or divorce. Instead of facing the challenges of finding suitable housing in a competitive market, family members can reside in the ADU temporarily or long-term, providing stability and support during times of transition. For instance, multigenerational housing might look like a basement ADU for grandparents, where they have their own, separate entrance and living quarters. It might come in the form of a detached ADU in the backyard to house adult children. ADUs offer so many ways to maximize the benefits of multigenerational housing.

Below are 10 top reasons homeowners are opting to increase residential living space through an ADU addition for the purpose of multi-generational living.

1. Post-Pandemic Proximity: Especially after the tragedies witnessed at retirement communities in the wake of the COVID pandemic, more and more families prefer to have their aging family members living near them rather than in a senior housing community. To that end, families are adding separate space for their aging parents by converting their garage into a living unit, attaching an ADU to their home, or building a detached ADU in their backyard.

2. Caring for Elderly Parents: As more families decide to take in mom and dad when they’re too frail to live alone, they also end up with challenges of caring for their elderly parents. Families who have the resources often hire outside caregivers to help with this care and support. Sometimes a live-in caregiver is a good option because it provides this support person free housing (and even food) as partial payment for their labor. A great option for such a caregiver is a separate unit on the property such as an ADU. According to Generations United, 79% of multigenerational home dwellers say living together makes it easier to meet the care needs of at least one family member.

3. Space Shifting: Some senior retirees have decided that their current ‘family sized’ home is too large for them. So, they decide to build themselves an ADU in their own backyard that suits their needs better. Something between 800 to 1200 square feet with 2 to 3 bedrooms and 1 to 2 baths, usually in one story, becomes the perfect fit for retirees. They then allow their younger family members like sons and daughters or nieces and nephews to come live in their main home on the property.

4. Retirement Income Strategy: Another unique twist on the above scenario comes out of the fact that many seniors and retirees have already paid off their mortgage and therefore have very few property costs (only taxes, insurance and maintenance). So, again, they build themselves an ADU in their backyard, fence it off from the original main home, and rent out the large home to a tenant. This rental payment provides them the income they need in retirement.

5. Affordable Housing: With the cost of purchasing a property at an all-time high, Millennial and Gen Z families are being priced out of the real estate market and unable to purchase their own home, even as their family grows. We’ve seen a trend wherein the parents of this generation, those that already have a home, choose to build an ADU in their backyard to house their adult children and their young family. They see this as a great way to create to add value to their property while also providing a comfortable home for their adult children (and see their grandkids often).

6. Post-College Living: ADUs are also being built by some families to house ‘young adult’ children who are coming back to live at home after college. Many recent graduates choose to come back to live with mom and dad after college in order to save money without paying rent. These ADU spaces allow young adults to live at home but also have their own living space for independence.

7. Childcare and Shared Parenting Support: Multigenerational living provides a built-in support system for raising children. Grandparents can help with childcare, school pickups, or extracurricular activities, reducing the need for external childcare services and fostering strong family bonds. This arrangement also allows parents to focus on their careers or other responsibilities, knowing their children are in trusted hands.

8. Empty Nester Downsizing: When two generations of family both have their own home, it might make sense for the older empty nester parents to sell their home, and build an ADU in their children’s home back yard. The families see this as a way to keep the family close together, and also gain more financial stability and resources by cashing out of the parent’s home, which often has plenty of equity.

9. Cultural Tradition: Some cultures prefer to have multiple generations living under one roof and believe that aging relatives should live with their adult children. Often, with three generations “under one roof”, things can get tight. The ability to build a second (or even) a third living unit on a single property allows the whole extended family to live together while everyone also has their own independent space.

10. Co-Ownership Solutions: And the last one might not exactly be traditional multigenerational living, but its an interesting trend we’re seeing. Again, because of the high costs of housing, younger individuals, couples and families struggle to afford the purchase of a home. In some cases, two young families combine their resources to purchase a property together and build an ADU, which allows both to live on the property in their own individual homes.

As of 1980, only 12% of American adults lived in a multigenerational home. Today, those numbers are far higher…and understandably so. ADUs allow families to accommodate aging parents, adult children and other relatives while maintaining privacy and independence. With skyrocketing housing prices and often limited, or unsuitable, inventory, ADUs provide a more affordable multigenerational housing option—one that can proffer an additional income stream to help offset mortgage payments or contribute to savings. Multigenerational living is a great option for those seeking to take a litany of uncertainties out of the familial living and financial equation.

Sources:

www.nar.realtor/sites/default/files/documents/2024-home-buyers-and-sellers-generational-trends-04-03-2024.pdf

https://www.nar.realtor/blogs/economists-outlook/home-for-the-holidays-the-rise-of-multi-generational-home-buying

https://www.gu.org/app/uploads/2021/04/21-MG-Family-Report-WEB.pdf

REAM: What initially drew you to real estate, and how did you know it was the right path for you?

JP: I had always been interested in real estate. My grandfather was a local builder, my father-in-law as well, so I have always seen the value of home ownership. I started my working life in Social Work and Education and quickly realised the political environment and low wages in those areas weren’t working out for me. With the support of my husband I took a leap of faith and realized immediately that this was what I was meant to be doing!

REAM: How has your background in psychology and business influenced your approach to working with clients?

JP: Everything I did prior to real estate has made me a better agent. I understand not just the financial but also the social and emotional aspects of buying and selling property. I also excel at conflict resolution, and problem-solving, skills that are utilized in nearly every real estate transaction. This paired with my ability to explain the complex processes involved in selling or purchasing a home, ensure my clients can make intelligent, rational and informed decisions.

REAM: What was the biggest lesson you learned from your time working in education and social work?

JP: Everyone is different and it’s critical to not jump to conclusions about what is best for your clients. My job is to bring insight and options to the consumer. Their job is to choose the best path forward for themselves. Social work is basically the same.

REAM: What experiences led you to lead your own real estate team? Did you have concerns about starting your own team?

JP: Starting a team is always scary, and frankly I’ve done more wrong then I initially did right, but ultimately it’s about having a clear vision of what you want to build. I know that I want to help as many people as I can realize the dream of home ownership, particularly historically marginalized groups. My capacity to serve solo has a cap, so building a team that can serve more clients was the logical next step.

REAM: What has been the most rewarding moment in your real estate career so far?

JP: Wow, it would be hard to name just one. Every transaction is an opportunity to help someone move forward in their journey, so I feel such emence gratitude at each and every one. It’s a true privelage to help people achieve their goals.

REAM: Who are your real estate mentors? How do you seek to emulate them?

JP: Johanna Fatheree out of Texas has been my greatest mentor by far. I wouldn’t be where I am without her support and encouragement. I try hard to channel her calm whenever things get crazy. Phil Gerdes out of Maryland is a great mentor as well. Not only is he dynamic and passionate but he is wholly focused on contribution and giving back and this is somehting I really strive for as well.

REAM: How are you involved in your community? Is there one group you support especially? Why did you select that cause/group?

JP: I have the privilege to work in the area I grew up in so my whole family is really embedded into the community. At the moment I am serving on the board of our local YWCA and it’s an organization I’m really passionate about.

REAM: The real estate market is always evolving—how do you stay ahead of trends and changes?

JP: I believe when you stop growing you die and it’s the same with real estate. When agents stop learning, evolving, striving to improve then it’s time to get out of the game. Staying current with the political, financial, and social changes impacting real estate is critical to the health of my business, that means I dedicate time each day to ensure I’m well informed.

REAM: Tell us a bit about yourself outside the office.

JP: I’m not much different in my personal life as I am in my work life. I love to laugh, learn and listen to other people. I have a wonderful circle of great friends but most of my time outside of the office is spent with the love of my life, and husband of 20yrs and my two kids. Everything I do is for them.

REAM: What advice would you give to someone considering a career in real estate?

JP: The barriers to entry are really low, but don’t let that fool you. Becoming successful in real estate recquires a ton of personal development, lots of trial and error, and a commitment to never giving up. If you’re willing to put in the work this can be the best job in the world!

Key Highlights

• Single-family existing-home sales prices rose in 89% of measured metro areas – 201 of 226 – in the fourth quarter, up from 87% in the previous quarter. The national median single-family existing-home price climbed 4.8% from a year ago to $410,100.
• Thirty-two markets (14%) recorded double-digit annual price appreciation (up from 7% in the prior quarter).
• The monthly mortgage payment on a typical, existing single-family home with a 20% down payment was $2,124 – down 1.7% from one year ago.

WASHINGTON, D.C.—Almost 90% of metro markets (201 out of 226, or 89%) experienced home price increases in the fourth quarter of 2024, as the 30-year fixed mortgage rate ranged from 6.12% to 6.85%, according to the National Association of Realtors^®’ latest quarterly report. Fourteen percent of the 226 tracked metro areas posted double-digit price gains over the same period, up from 7% in the third quarter.

“Record-high home prices and the accompanying housing wealth gains are definitely good news for property owners,” said NAR Chief Economist Lawrence Yun. “However, renters who are looking to transition into homeownership face significant hurdles.”

Compared to one year ago, the national median single-family existing-home price elevated 4.8% to $410,100. In the previous quarter, the year-over-year national median price increased 3.2%. In the past five years, from 2019 to 2024, the median home price rose by 49.9%.

Among the major U.S. regions, the South registered the largest share of single-family existing-home sales (45.1%) in the fourth quarter, with year-over-year price appreciation of 2.1%. Prices also increased 10.6% in the Northeast, 8.0% in the Midwest and 4.0% in the West.^[i]

The top 10 metro areas with the largest year-over-year median price increases, which can be influenced by the types of homes sold during the quarter, all experienced gains of at least 14.9%. Six of the markets were in the Midwest. Overall, those markets were Jackson, Miss. (28.7%); Peoria, Ill. (19.6%); Chattanooga, Tenn.-Ga. (18.2%); Elmira, N.Y. (17.6%); Fond du Lac, Wis. (17.6%); Cleveland-Elyria, Ohio (16.4%); Bismarck, N.D. (15.8%); Akron, Ohio (15.5%); Blacksburg-Christiansburg, Va. (15.0%); and Canton-Massillon, Ohio (14.9%).

Eight of the top 10 most expensive markets in the U.S. were in California. Overall, those markets were San Jose-Sunnyvale-Santa Clara, Calif. ($1,920,000; 9.7%); Anaheim-Santa Ana-Irvine, Calif. ($1,360,000; 4.7%); San Francisco-Oakland-Hayward, Calif. ($1,315,600; 5.2%); Urban Honolulu, Hawaii ($1,103,100; 3.2%); San Diego-Carlsbad, Calif. ($985,000; 5.7%); Salinas, Calif. ($943,900; -5.0%); Los Angeles-Long Beach-Glendale, Calif. ($939,700; 6.3%); San Luis Obispo-Paso Robles, Calif. ($927,200; 1.7%); Oxnard-Thousand Oaks-Ventura, Calif. ($920,000; 0.3%); and Boulder, Colo. ($840,700; -1.0%).

Almost 11% of markets (24 of 226) experienced home price declines in the fourth quarter, down from 13% in the third quarter.

“While recognizing many workers may not have the option to relocate, those who can or are willing to move may find more affordable conditions, especially given the wide variance in home prices nationwide,” Yun said.

Housing affordability marginally improved in the fourth quarter. The monthly mortgage payment on a typical existing single-family home with a 20% down payment was $2,124, down 0.8% from the third quarter ($2,141) and 1.7% – or $37 – from one year ago. Families typically spent 24.8% of their income on mortgage payments, down from 25.2% in the previous quarter and 26.5% one year ago.

First-time buyers found slightly better affordability circumstances compared to the prior quarter. For a typical starter home valued at $348,600 with a 10% down payment loan, the monthly mortgage payment declined to $2,083, down 0.9% from the previous quarter ($2,101). That was a decrease of $35, or 1.7%, from one year ago ($2,118). First-time buyers typically spent 37.4% of their family income on mortgage payments, down from 38.1% in the prior quarter.

A family needed a qualifying income of at least $100,000 to afford a 10% down payment mortgage in 43.8% of markets, up from 42.5% in the previous quarter. Yet, a family needed a qualifying income of less than $50,000 to afford a home in 2.2% of markets, identical to the prior quarter.