Beyond the Buildings

Latest Episodes:

What’s Driving the Appraisal Industry’s Move to Modernize? Nov 27, 2024

Show notes

The appraisal industry is undergoing its most significant transformation in decades, blending innovation with tradition to reshape how appraisers value real estate.

As the appraisal industry enters a new era driven by technology and changing consumer expectations, advancements like AI-powered valuation tools, as well as desktop and hybrid appraisals may provide an avenue for the industry to offer transparency and lighten some of the cumbersome, paperwork-laden processes that define current standards.

But what does this mean for the future of the industry — and for those who rely on it?

In the latest episode of Core Conversations, host Maiclaire Bolton Smith sits down with Shawn Telford, Chief Appraiser at CoreLogic, to unpack the innovations reshaping how appraisals are conducted. From leveraging risk-based frameworks to streamline processes to modernizing appraisal reports for greater transparency, Telford provides a comprehensive look at how these changes are improving efficiency without compromising quality. For lenders, investors, and homeowners, these shifts offer exciting opportunities and a glimpse into what’s next for real estate valuation.

In This Episode:

1:55 – What is appraisal modernization, how did we get here, and what is the timeline for the overhaul?

6:22 – Erika Stanley does the numbers in the housing market in The Sip.

7:28 – What exactly is going to change in the Universal Appraisal Dataset (UAD) and how will it impact the industry?

12:40 – How will appraisal waivers fit into the new, modernized appraisal standards?

16:05 – Are there any other alternative appraisal methods that this industry change will help support?

17:41 – How will appraisal modernization affect the underwriting process?

20:22 – Does generative AI have a place in the appraisal industry? How could it be integrated into current processes?

24:07 – Erika Stanley reviews natural catastrophes and extreme weather events across the world.

25:13 – What are the challenges that lie ahead for the appraisal industry?

Up Next: Do Appraisers Have What It Takes to Value Short-Term Rentals?

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Geospatial Data: Superpowering AI Infrastructure Planning Oct 02, 2024

Show notes

Over the next few years, it's estimated that nearly a trillion dollars will be spent on data centers, semiconductors, and power grid upgrades. And this is all just to meet the growing computational needs of AI technologies. In fact, industry estimates suggest that global data center capacity could double by 2030, but this growth is far from straightforward.

As AI technologies like generative AI continue to expand, the infrastructure needed to support them is growing at an unprecedented rate. However, data centers cannot just be built anywhere. Placement of new data centers isn’t just about finding enough land — it’s about balancing proximity to power plants, high-capacity transmission lines, and broadband infrastructure, while also considering environmental factors.

Location intelligence plays a pivotal role in this expansion.

In this episode of Core Conversations, host Maiclaire Bolton Smith and Joe Francica, Principal Product Manager in CoreLogic’s Location Intelligence Group discuss how geospatial tools can help mitigate some of these risks by identifying locations that are less vulnerable to natural hazards while also balancing the need for power and broadband access. As AI continues to evolve and the demand for data centers grows, having access to detailed geospatial data will give companies a strategic advantage in making informed, forward-looking decisions.

In This Episode:

2:11 – How much data center capacity will AI technologies (and their power consumption) require?

4:49 – Why is AI consuming so much energy?

8:55 – Which energy sources are data centers using and where are they generally located?

9:31 – How does the availability of broadband play into the equation?

10:40 – How does climate resilience come into play when looking for optimal locations of data centers?

13:04 – how is proximity to an electrical grid or transmission facility part of the equation?

14:29 – Erika Stanley does the numbers in the housing market in The Sip.

15:40 – How are all the variables for optimum data center placement weighted. Is there a hierarchy of importance?

16:42 – Where is the optimal place in the U.S. for data centers?

20:05 – Erika Stanley reviews natural catastrophes and extreme weather events across the world.

20:59 – Where is AI is going to take us in terms of the demand for the data centers, and what do companies that are trying to get ahead of the curve need to think about?

Up Next: What Makes Geospatial Data Unique for Expanding Telco Infrastructure?

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Do Appraisers Have What It Takes to Value Short-Term Rentals? Sep 04, 2024

Show notes

As cities across the country grapple with the rise of platforms like Airbnb and VRBO, the implications for the property industry are becoming more complex. How do you accurately value a property that doubles as a business? What happens when local regulations change?

Despite the lingering questions in the industry, the rising demand for vacation homes and the allure of short-term rental platforms have carved out a significant niche in the market.

However, their increasing popularity brings new challenges, particularly for appraisers, lenders, and underwriters who must navigate the complexities of valuing these unique assets.

As housing affordability concerns grow and the U.S. faces a persistent housing shortage, some communities are clamping down on short-term rentals and imposing stricter regulations. Yet, despite these restrictions, short-term rentals are far from disappearing. Instead, they’re evolving, requiring a fresh approach to property valuation that considers not just the physical attributes of a home, but its potential as a revenue-generating business.

In This Episode:

2:19 – Why are short-term rentals (STR) currently a hot topic in the appraiser industry?

3:38 – Why does the business aspect of an STR make it unique for valuation?

8:34 – What happens when an owner-occupied property is turned into a STR? Does the valuation change?

10:00 – Can any appraiser value an STR?

12:52 – How do 1007 forms apply to STRs?

16:08 – Erika Stanley does the numbers in the housing market in The Sip.

17:28 – What happens if a homeowners association steps in and determines that STRs are no longer allowed?

20:01 – What does the process of getting a loan on a STR look like?

22:45 – Where are things headed for appraisers looking to value STRs?

25:32 – Erika Stanley reviews natural catastrophes and extreme weather events across the world.

Up Next: Appraising PropTech Innovation: Do Short-Term Changes Have Long-Term Effects?

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What Drives Public Perception of Climate Migration? Aug 07, 2024

Show notes

Have you ever wondered what happens to communities when climate change forces people to move?

The economic and social ramifications are both complex and far-reaching. From community fragmentation to insurers potentially refusing coverage in high-risk areas, there are profound consequences stemming from not adapting to a climate in which natural disasters are accelerating.

Dr. Kaitlin Raimi, an associate professor of public policy at the University of Michigan, has researched the multifaceted nature of climate migration, and in this episode of Core Conversations, she sits down with host Maiclaire Bolton Smith to examine how regions like the Rust Belt might emerge as new havens for climate migrants and what measures communities can adopt to enhance their resilience. Dr. Raimi and Maiclaire also discuss the potential for policies to help communities adapt and support their residents in the face of climate change.

In this episode, explore how Americans view climate migrants, how policies could become a crucial factor influencing climate migration, and what the broader impacts of migration may mean for American society and the economy.

In This Episode:

1:38 – What is climate migration and where do migrants typically originate from?

3:32 – How is the U.S. public reacting to major natural disasters and how are these disasters influencing migration patterns?

5:06 – Will it require insurers to cease writing new policies to raise awareness about the impact of accelerating natural disasters?

8:30 – How are U.S. communities perceiving the influx of migrants from wildfire-prone or hurricane-prone states?

10:38 – Why are the Rust Belt states gaining attention as a climate haven?

12:53 – Erika Stanley goes over the numbers in the housing market in The Sip.

13:50 – What are some adaptability measure that are available to keep people in their communities?

18:59 – Erika Stanley reviews natural catastrophes and extreme weather events across the world.

20:27 – What is the future of climate change migration and what ripple effects will this have at the national level?

Up Next: University of Miami Researcher Weighs in on Key 2024 Hurricanes Season Trends

Links:

2023 Economic Look Back: A Tale of Two Housing Markets Nov 29, 2023

Show notes

In the season finale of Core Conversations, host Maiclaire Bolton Smith and CoreLogic Chief Economist Selma Hepp dive into a discussion about the dynamic landscape of the U.S. housing market in 2023.

This year, mortgage rates surged by almost 500 basis points, home prices catapulted by 42% over three years and mortgage payments witnessed a staggering 60% hike. This episode peels back the layers of the housing market, exploring the sometimes-contrasting contexts of the real estate sector with the larger economy.

One of the major topics that this discussion covers is why some homeowners can navigate these economic shifts while others grapple with pressing affordability challenges. Although housing affordability is a crucial point for both homeowners and renters, according to Pete Carroll, executive of public policy for CoreLogic, the affordable housing crisis is a bit of a misnomer. At its core, the crisis is due to a lack of housing inventory with respect to demand.

So, how is it that the U.S. has arrived at a point where inventory is low, prices and interest rates are climbing, and rentals seem out of reach in some markets?

As 2023 comes to an end, join the conversation to reflect on what happened, where we are now, and what we can expect in the future of the U.S. housing economy.

In This Episode:

1:58 – What have the general trends been in the U.S. economy in 2023?

4:09 – Why was there a disconnect in how the housing market and the overall economy fared?

6:05 – How much of the Consumer Price Index (CPI) does housing represent? Did inflation dramatically effect this percentage?

7:47 – Discussing the housing market slowdown of 2023

10:35 – Erika Stanley reviews the number in the housing market in The Sip.

12:08 – How did the U.S. rental market do in 2023?

15:26 – What is the future for adjustable-rate mortgages (ARMs) with the current rates of inflation?

18:05 – How did the lock-in effect affect the overall housing market?

Links:

Up Next: Occupancy Fraud May Be the Next Risk for the Mortgage Industry

Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt

Are Insurers Prepared for an El Niño-Fueled Hurricane Season? Sep 13, 2023

Show notes

El Niño has undoubtedly impacted the 2023 hurricane season. But it is not the only weather pattern that is exerting influence. Ocean temperature — also known as sea surface temperature — is also driving the storms swirling in the Atlantic Ocean. As reports of record-breaking temperatures in the Atlantic appeared this summer, scientists at the National Oceanic and Atmospheric Administration (NOAA) began to postulate that this season will be an above-average one.

As the season progresses, the question has now become: How will insurers fare if one, two or even several storms bring damage to the U.S. housing market?

Another burning question that this conversation touches on is how this summer’s Typhoon Dora in the Pacific Ocean may have created weather patterns that influenced the August wildfire on the Hawaiian island of Maui.

In this episode, host Maiclaire Bolton Smith continues the conversation with CoreLogic's Director of Catastrophe Response Jon Schneyer to talk about if insurers are ready for another storm to hit the U.S. and what this season could bring.

In This Episode:

0:44 - How is the insurance industry going to fare if we get multiple bad storms this year?

3:45 – What does the appearance of EL Niño mean for Pacific hurricane activity? Are the devastating wildfires of Maui connected to this climate phenomenon?

6:18 – Erika Stanley talks about what is going on in the world of weather in the Natural Disaster Digest.

Up Next: Will Scorching Ocean Temps or El Niño Define Hurricane Season?

Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt

Will Wildfire Risk Mitigation Requirements Change the California Insurance Industry? Mar 01, 2023

Show notes

No one wants 430% increases in wildfire insurance premiums and quotes of up to $20,000 per year. So, why are California homeowners dealing with these prices?

In Part 1 of this episode, host Maiclaire Bolton Smith talks to Paul Brown, CoreLogic's director of Insurance Market Strategy for Hazard and Risk Management about legislative changes from the California Department of Insurance and how insurers will need to access big data to effectively translate homeowner wildfire mitigation efforts into insurance discounts.

Find full episodes with these guests in our podcast archive here: https://clgx.co/3zqhBZt

In this episode:

1:39 – Who is Paul?
2:17 – Where to grab your limited-edition wildfire socks
3:26 – Why did California decide this was the year to change how insurance premiums were set?
5:13 – What do these changes mean for homeowners?
7:25 – Katia hosts The Sip, summarizing the important numbers in the property market
8:56 – The $15 million-dollar question: How does wildfire mitigation translate to insurance discounts?
11:35 – Quantifying mitigation strategies requires Big Data

What Does 2023 Hold for the Housing Market and Property Industry? Dec 14, 2022

Show notes

As we wrap up this season, we are bringing back four of our favorite guests to get an update on what happened in 2022 and their outlook on the year ahead.

Find full episodes with these guests in our podcast archive here: https://clgx.co/3zqhBZt

Check out NFIP Risk Rating 2.0 video vignettes here.

In this episode:

1:25 - Catch up with Tom Larsen about natural catastrophes in 2022

5:32 – Hear from Scott Giberson for the latest on the NFIP's Risk Rating 2.0

12:31 - Garret Gray returns to talk about where the insurance industry is headed

17:22 – Get an update from Selma Hepp about the U.S. Economy. *This portion of the episode was recorded at the beginning of Q4.

Nothing is Certain Except Death and (Property) Taxes Jul 13, 2022

Show notes

Discussions about property taxes are often met with a frown and a change of subject. But these homeowner taxes are not just one of life’s inescapable truths; they also help create essential revenue for cities and maintain healthy economies. So, when owners fall delinquent on property tax payments, the consequences can be pronounced.

In this episode, host Maiclaire Bolton Smith sits down CoreLogic Senior Leader of Government Solutions John Gilberti to discuss property taxes, why and how they are collected, the way municipalities use them and what happens if someone is delinquent in paying them.

What Lessons Can We Learn from the USS Arizona? Nov 10, 2021

Show notes

At CoreLogic, supporting veterans is close to our hearts. One organization that we are proud to align with is the World War II Foundation. On Veterans Day, they will release a documentary, Elvis and the USS Arizona, and CoreLogic is a presenting sponsor.

In this episode, host Maiclaire Bolton Smith speaks with Tom Gray from the WWII Foundation to learn more about the documentary and the foundation.