Study of Marin long-term single family home rental market

Foundation Homes Study

Confirms Strength in

Long-Term Luxury Residential Rental Market

Quarterly Report Reveals Data

By Price and Location Segments

Kentfield—December 4, 2018—Foundation Homes Property Management (www.foundationhomes.com) today released third quarter 2018 results of its comprehensive study of the long-term, single family home (SFH) rental market in Marin County, confirming the continued strength in the luxury segment of the market (properties that rent for more than $8,000 per month).

The study traces the SFH rental market back to 2015. Foundation is particularly well-suited to be conducting the study, having more than $140 million in residential real estate assets under management in Marin County. Its founders, the husband and wife team of Christopher and Darcy Alkus Barrow have been working exclusively in the sector since 2005.

The strongest performing segment, Central/Southern Marin, is defined as Belvedere, Corte Madera, Greenbrae, Kentfield, Larkspur, Mill Valley, Ross, San Anselmo, Sausalito and Tiburon.

Another notable finding was in the statistics related to average price per square foot for rentals in all Marin as well as specific localities. The overall average price per square for rentals in the county was $2.88 while in the “luxury” segment (above $8,000 per month) average rate was $3.37 (17 percent higher).

While there was a Q3 increase in the amount of time that properties remained on the market before renting for the entire market, homes listed by Foundation were on the market for a shorter duration in all categories (40.55 days for Foundation vs. 47 days for the overall market). Homes represented by Foundation also outperformed the average MLS-listed monthly rental rate by over 2%.

“Marin continues to be an extremely strong market for high-end real estate in the most desirable areas,” said Christopher Barrow, Foundation co-founder/co-managing director. “In areas such as Belvedere and Tiburon or Kentfield and Ross, the homes are both larger and more expensive.

“We expect seasonality to continue to have an impact as the holiday season approaches, which usually results in a slow in the mid- to higher-end markets. This is the time of the year that we encounter the ‘accidental landlord,’ someone whose property has been on the sales market for a while but didn’t sell. Because we have been operating exclusively in this segment for over a decade we have both insights and strategies for our clients which help mitigate some of the timing issues.”

The study, conducted under the direction co-founder/co-managing director, Darcy Alkus Barrow, tracks:

• Average listing price
• Average rental price
• Average property square footage
• Average price per square foot and
• Average days on market (DOM)

Approximately half of Foundation’s overall properties are in the mid- to high-end segment, defined as property renting for more than $5,000 per month. Overall, in the luxury market, Foundation says that both supply and demand remain fairly predictable year over year, driven both by outside economic market conditions and seasonality.

For this continuing study, Foundation examined single family homes (excluding condominiums) primarily from the Central to Southern Marin County market, and drew its data from FHI proprietary internal information, Zillow/Trulia and BAREIS Multiple Listing Service (MLS).

About Foundation Homes International

Foundation Homes International (www.foundationhomes.com) is a full-service property management, real estate investment, sales and relocation firm, serving Northern California. Foundation Homes has more than $140 million in residential real estate assets under management in Marin County. Founded in 2010 by the husband and wife team of Christopher Barrow and Darcy Alkus Barrow, Kentfield-based Foundation Homes offers a full suite of real estate services from property management and analysis to lease and sales negotiation. The firm employs web-based technology to support delivery of services by a hands-on team of experienced professionals. The firm’s telephone number is (415) 507-9600.