Adaptive reuse housing conversions are gaining traction as a creative response to affordability gaps in today’s market. A compelling example comes from South Carolina, where a 24-year-old investor is transforming a $2 million motel into a 40-unit apartment complex aimed at cost-conscious renters. At the same time, property tax hikes are creating headwinds for buyers in several key metros, while mortgage rates remain steady, offering an opportunity for strategic rate locks. Together, these developments illustrate both the innovation and constraints shaping today’s real estate landscape.
Adaptive Reuse Projects Provide Affordable Housing Solutions
Read the full story → Business Insider
Corvon Burgess, a 24-year-old real estate investor from South Carolina, is converting a former motel into 40 affordable studio apartments. The $2 million purchase is being funded by combining traditional financing and community redevelopment support. His goal is to deliver clean, modern, income-accessible housing in a market where median rents have become unattainable for many.
This is a prime example of adaptive reuse housing conversions, where non-residential structures—such as hotels or commercial buildings—are reimagined as housing solutions. The project is already generating attention for its innovative model and for demonstrating that affordability and profitability can coexist in the same venture.
The conversion isn’t just about cost savings—it’s about speed. Adaptive reuse often allows faster project completion than ground-up development, which can make a difference in underserved rental markets. In Corvon’s case, many of the units will be move-in ready within months, not years.
Loan Officer Insight: Mortgage professionals should watch for growth in the adaptive reuse space. These projects may involve nontraditional financing or partnerships with municipalities, meaning there’s opportunity to develop products and referral partnerships that cater to this trend. If your market has aging hotels, offices, or vacant commercial space, someone is planning to repurpose them—be ready to support those deals.
Property Tax Burdens Spike in Key Housing Markets
Read the full story → Realtor.com
While attention is often focused on home prices and interest rates, property taxes can quietly erode affordability—and they’re rising fast in many metros. Tampa, FL, saw a staggering 23.3% property tax increase between 2021 and 2023, the sharpest jump among the top 10 metros tracked. Buffalo, NY, and Chicago, IL, followed closely behind.
The increase in property taxes is being driven by rising home valuations, pandemic-era budget pressures on local governments, and infrastructure funding needs. Buyers often focus on their mortgage payment, but in these metros, rising tax bills can add hundreds of dollars monthly to their housing costs.
This has real consequences for loan eligibility and debt-to-income (DTI) ratios. A borrower might qualify for a $2,400 mortgage payment, but if local taxes suddenly add $300 or more to escrow estimates, it can push them over the line—or simply make a deal feel unaffordable.
Loan Officer Insight: Educate clients early in the process about property tax trends in your local markets. Use this as a value-add differentiator in your preapproval process. For example, offer tax projections in your buyer consultations or share a comparison of nearby counties with lower rates. It’s also a great talking point in your Realtor partnership meetings—help agents prep buyers with the full cost picture.
Mortgage Rates Hold Steady, Creating Window of Opportunity
Read the full story → Forbes
Mortgage rates remain unchanged to close out the first full week of May. As of May 9, the 30-year fixed mortgage rate is holding at 6.85%, while the 15-year fixed rate is stable at 6.10%. This consistency offers buyers and refinancers a brief moment of certainty amid an otherwise fluctuating market.
This flatline in rates may be tied to uncertainty around inflation and economic growth. With the Fed taking a cautious stance and the bond market reacting to trade news and employment data, rates have held their ground. For loan officers and borrowers, that stability is something to work with.
The key opportunity here is timing. Buyers who’ve been sitting out due to volatility now have a clearer picture of what their financing will look like. And for those already pre-approved, a small shift in pricing or lender fees could make all the difference in monthly affordability.
Loan Officer Insight: This is a great week to revisit older leads who went quiet due to rate shock. Use the messaging: “Rates haven’t moved—let’s reassess your numbers.” It’s also a strong lock-and-shop window for borrowers with tight DTI scenarios. Use certainty to your advantage, because if bond yields jump again, today’s rates might be gone tomorrow.
Real Estate-Related Stock Performance (as of May 9, 2025)
| Stock | Price | Change |
|---|---|---|
| Rocket Companies (RKT) | $11.96 | ▲ 2.66% |
| UWM Holdings (UWMC) | $4.32 | ▲ 2.61% |
| Zillow Group (ZG) | $66.72 | ▼ 0.05% |
| Redfin Corp (RDFN) | $9.37 | ▲ 3.42% |
| Lennar Corp (LEN) | $109.87 | ▲ 0.27% |
| D.R. Horton (DHI) | $123.47 | ▼ 0.30% |
| Equifax Inc. (EFX) | $270.29 | ▼ 0.32% |
Summary: Lender stocks like Rocket and UWM saw strong gains today, likely tied to positive mortgage rate sentiment and strong Q1 earnings. Homebuilder stocks were mixed, reflecting regional inventory pressures. Watch Redfin—its 3.42% gain suggests investor confidence in its transaction pipeline heading into summer.
Loan Officer’s Perspective: Take Action on Stability and Affordability
- Spotlight Adaptive Reuse: Ask your agents and builder partners if any redevelopment deals are happening locally. Get in front of this trend early and explore financing that aligns with these projects.
- Get Tax Smart: Help clients understand that taxes aren’t static. Offer tools or charts that show how taxes change by area, and weave this into your affordability conversations.
- Capitalize on Rate Consistency: When the market offers predictability, it’s your moment to shine. Use consistent rates as a re-engagement hook—“Still want to buy? Numbers are better than last month.”
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