Archive | Housing and Finance RSS feed for this section

One Week Left in 2025: Why Residential Rental Properties Will Shape 2026 By TW Shortt 

4 Jul

As 2025 ends, it is worth pausing long enough to separate noise from the signal. Real estate markets are often explained after the fact, but they are best understood through experience—especially local experience. 

Working through multiple market cycles in Hardin County—from the late-1980s slowdown to the post–Cold War Fort Knox adjustments, the mid-2000s correction, and the pandemic-era surge—has made one thing clear: while the circumstances change, the core market patterns do not. 

The data from 2024 and 2025, viewed through that long lens, points clearly toward residential rental property as a defining segment for 2026. 

A Market That Was Already Cooling 

Well, before any recent employment headlines, the residential market was signaling a shift. In 2024, 82 percent of single-family listings were sold. By 2025, that number slipped closer to 72 percent, even as total listings increased. 

That combination—rising inventory and declining sell-through—has always marked a transition from momentum-driven markets to fundamental-driven ones. I have seen it repeatedly. When that line is crossed, sellers must adjust expectations, and investors who understand cash flow begin to re-enter the picture. 

Rentals Have Always Moved First 

Over decades of brokerage and property management work, one lesson has held: rental housing reacts differently to uncertainty than owner-occupied housing. 

When buyers hesitate, they rent. 
When jobs feel less secure, households delay purchases—but not housing. 

I saw this after the base realignments at Fort Knox. I saw it during the 2008 fiscal crisis. I saw it again during COVID. Each time, rental demand firmed up before softening, and well-located rental properties retained their value better than speculative owner-occupied inventory. 

Blue Oval and Market Psychology 

The latest news about job reductions tied to the Blue Oval project introduces uncertainty—not just for those directly affected but for the broader market. In real estate, psychology often moves faster than statistics. 

In my experience, announcements like this do not cause immediate collapse. Instead, they cause hesitation. That hesitation shows up first in buyer behavior: longer decision times, fewer marginal buyers, and more households choosing to rent “for now.” 

That shift tends to strengthen rental occupancy and stabilize rental income, even as sales volume slows. 

What 2026 Is Likely to Reward 

Based on what we saw in 2024 and 2025, and on decades of local market behavior, 2026 is shaping up to be a year when rental fundamentals matter more than narratives. 

Expect: 

  • Stronger interest in income-producing residential property, 
     
     
  • Premium pricing for rentals with documented rent history and stable tenants, 
     
     
  • Less tolerance for underperforming or poorly managed properties, and 
     
     
  • A renewed focus on cash flow, cap rates, and operating expenses. 
     
     

This is not a market for shortcuts. It is a market that rewards experience, discipline, and realism. 

Closing Perspective 

Real estate does not change because of headlines alone. It changes because people adjust how they live, how they spend, and how much risk they are willing to take. After forty years in this market, I am confident that residential rental property has consistently been one of the most resilient segments during periods of transition. 

As we close out 2025, the signals are familiar. For those willing to look past the noise and focus on fundamentals, 2026 is already taking shape. 

Disclaimer: This column reflects the author’s views and is for general informational purposes only; it should not be relied upon as financial, legal, or real estate advice. 

TW Shortt is a Hardin County real estate broker, past president of the Heart of Kentucky Association of REALTORS and writes the Focus on Finance column on housing and local economic issues. 

Tags: , , , ,

Is the lack of public transport in Hardin County a legitimate issue?

4 Jul

Many people received the recent online transportation survey published by The Lincoln Trail Area District; LTADD is ideally suited to conduct the research and, if appropriate, eventually propose a solution. But is public transit an issue? Do community members need transportation to join the workforce? Are there elderly people who lack transportation to medical appointments? Are there residents struggling to get to a grocery store due to transportation issues? Let’s look closer.  

Hardin County is a community of kind people. We would not stand for conditions where the elderly, handicapped individuals, and people who wanted to work could not do so. While there is no government solution for everything that ails us, many communities have found that implementing a public transit system works for them. Some implemented systems were at a net monetary loss.  

The study is designed to gather the facts. Most people I spoke to about this issue agree that a community of our size needs a public transit system. They usually quote an anecdotal story about someone they know who needs transportation and is detrimentally affected by the lack thereof. To get the facts, we do not have to look far.  

One of those facts is that we already have a public transit system in Hardin County called the Transit Authority of Central Kentucky (TACK). These folks offer three categories of service: Fort Knox, Medicaid Services, and Public Services. I see TACK’s brightly lettered vans all over the community, yet I still run into people who have never heard of them or the service.  If this was not enough, at the risk of getting on a soapbox, what about the two hundred churches in Hardin County with a 12-passenger van parked behind them six days a week? Could an interdenominational leader come to the table with a solution?  

In conclusion, our tendency to turn to the government to solve every challenge is coming to an end. Every aspect of American worker production is now taxed, so it is time to find different solutions.  

Tags: , , , ,

Will Artificial Intelligence Replace Real Estate Agents? 

4 Jul

The short answer is yes—but not immediately, and not without some important qualifications. 

Anyone paying attention to the rapid development of artificial intelligence can sense that meaningful change is approaching and approaching quickly. Even casual users of AI tools recognize how quickly the technology is evolving. Professionals who spend their workdays analyzing data, processing information, and communicating with clients increasingly ask a simple question before beginning almost any task: Can artificial intelligence help with this? 

Often, the answer is yes. 

Recently, while discussing the renovation of a commercial building with a client, we wondered what the property might look like after certain improvements. Within seconds, an AI system showed the upgraded building. Moments later, the same system produced rough renovation cost estimates and a preliminary pricing memo. Tasks that once required days of research and consultation were completed in minutes. 

Experiences like this are becoming common across many industries, and real estate will not be immune to this technological shift. 

In fact, the industry is already experiencing structural change. One of the most significant developments in recent years involved federal antitrust litigation against the National Association of Realtors regarding commission practices within the Multiple Listing Service (MLS). In Burnett v. National Association of Realtors (W.D. Mo. 2023), a federal jury concluded that certain industry rules related to buyer-agent commissions could restrain competition. Following the verdict and related litigation, NAR agreed in 2024 to a nationwide settlement exceeding $418 million and adopted new rules affecting how commissions are communicated through MLS systems. At the same time, the U.S. Department of Justice has continued examining brokerage practices across the country. 

For decades, the MLS system helped structure cooperation between brokers by allowing listing agents to offer compensation to buyer agents. As those rules evolve, one of the traditional pillars supporting the brokerage model has begun to weaken. 

Another traditional role of real estate agents has been pricing property. Yet it is becoming increasingly difficult to argue that human judgment alone can outperform modern data systems. Artificial intelligence can analyze thousands of comparable sales, neighborhood characteristics, economic indicators, and pricing trends within seconds. Automated valuation models continue to improve, and as their accuracy increases, consumers will place greater confidence in these systems. 

At the same time, buyers and sellers now have unprecedented access to real estate information. Online platforms such as Zillow, Redfin, and Realtor.com allow consumers to examine listing histories, review neighborhood statistics, estimate property values, and even take virtual tours of homes—often without ever speaking to an agent. Much of the information that was once required for a professional intermediary is now available directly to the public. 

Looking ahead, it is not difficult to imagine the next stage in the evolution of the real estate marketplace. A fully integrated AI platform could allow property owners to list homes directly while buyers enter detailed search preferences. The system could instantly match buyers and sellers based on price, location, and property characteristics. Showings could be scheduled automatically, and self-guided tours could become routine. Agents might enter the process later, assisting primarily with negotiations, legal matters, or complex transactions. 

In such a system, artificial intelligence would perform many of the routine tasks currently handled by agents. Listing distribution, buyer searches, comparative market analysis, marketing materials, and document preparation could all be automated. 

However, the disappearance of real estate agents is unlikely to occur overnight. 

Real estate transactions involve large financial commitments, legal complexity, and emotional decision-making. Many buyers and sellers still value experienced guidance when making one of the most important financial decisions of their lives. Negotiation skills, local market knowledge, and the ability to manage complicated transactions remain in areas where experienced professionals can add real value. 

The challenge for agents is not to resist technology but to adapt to it. 

Those who learn to use artificial intelligence as a tool—while strengthening their negotiation skills, local expertise, and advisory roles—will continue to find opportunity. Those who ignore it may eventually discover that the profession they once knew has changed beyond recognition. 

Tags: , , , ,

Ridding Small Cities of Trailer Parks Deteriorated Beyond Livability: Turning Yesterday’s Trailer Parks into Tomorrow’s Neighborhoods 

4 Jul

by: TW Shortt 

Small cities across America face a recurring problem in their housing landscape: aging mobile home parks that have deteriorated beyond reasonable repair. Many of these parks were built decades ago during periods of rapid housing demand, often with minimal infrastructure standards. Over time, the homes wear out, utilities fail, roads deteriorate, and the property slowly declines. 

The question for communities is simple but important: What should be done when a trailer park has reached the end of its useful life? 

The Fort Knox area has already seen a successful answer to that question. 

In Radcliff, the Magnolia Point Neighborhood stands today as a clear example of how distressed land can be transformed into a stable residential neighborhood. The site was once occupied by a mobile home park that had deteriorated to the point of being beyond practical use. Instead of allowing the property to continue to decline, the land was redeveloped into a small residential neighborhood containing 39 permanent homes. 

The project was developed in 1988 by TW Shortt Realty, a local brokerage firm.  At the time, the redevelopment demonstrated that aging trailer parks need not remain permanent fixtures in a community’s landscape. With thoughtful planning and cooperation with local planning authorities, a distressed property could be transformed into a neighborhood of traditional homes. 

What was once a trailer park is becoming a residential subdivision with permanent foundations, paved streets, and individually owned lots. The development integrated naturally with surrounding neighborhoods and replaced temporary housing with permanent homes. 

Projects like Magnolia Point illustrate an important planning tool known as Planned Unit Development (PUD). 

A Planned Unit Development allows a city to approve a comprehensive development plan rather than forcing every lot to meet rigid zoning rules. Instead of focusing solely on minimum lot sizes or strict dimensional standards, the planning authority evaluates the neighborhood’s overall design and determines whether the development improves the community. 

This flexibility often makes redevelopment possible, where conventional zoning would make it difficult. 

Former mobile home parks are particularly well-suited for this approach. These properties already have defined boundaries and internal roads, but the original layouts were rarely designed for long-term residential use. Through Planned Unit Development, the property can be redesigned to include modern infrastructure and permanent homes. 

Streets can be rebuilt, drainage systems engineered properly, utilities modernized, and the land subdivided into individually owned lots. In many cases, the density remains similar to that of the original park, while the quality of housing improves dramatically. 

This transformation accomplishes several important objectives. 

First, it replaces deteriorating housing with homes built to modern construction standards. Permanent homes constructed on foundations become real estate rather than personal property, allowing buyers to obtain standard mortgage financing such as FHA, VA, or conventional loans. 

Second, redevelopment allows the property’s infrastructure to be rebuilt correctly. Older trailer parks often contain undersized utility lines, improvised drainage, and narrow internal streets. A redevelopment project offers the opportunity to rebuild those systems to meet modern engineering standards. 

Third, surrounding property values often stabilize or improve when a distressed property is replaced by an attractive residential neighborhood. What was once a declining parcel is becoming a productive part of the community. 

Importantly, redevelopment of aging trailer parks does not necessarily mean eliminating affordable housing. Instead, it can improve the quality of that housing while maintaining reasonable density. Small homes, modular cottages, or compact residential lots can still provide attainable housing options while functioning as traditional real estate. 

Cities across the country are increasingly reconsidering the redevelopment of aging mobile home parks through this strategy. The key conditions are usually straightforward: the property must be under unified ownership, the site must be vacant or ready for redevelopment, and local planning authorities must be willing to use flexible zoning tools such as Planned Unit Development approval. 

When those conditions come together, a property that once supported deteriorating temporary housing can be transformed into a stable residential neighborhood. 

Every community eventually faces decisions about how to handle land that has reached the end of its original life cycle. The choice is whether those properties remain trapped in decline or whether they are reimagined for the future. 

The Magnolia Point development in Radcliff shows that the path forward can be both practical and beneficial. With thoughtful planning and a willingness to rethink outdated housing patterns, trailer parks that have deteriorated beyond livability can give way to neighborhoods that serve the community for generations to come. 

Tags: , , , ,

Housing Affordability Begins at the Local Level

4 Jul

In her June 26, 2026, The News-Enterprise syndicated column, S.E. Cupp, titled “Who Cares About Housing?” Certainly Not the President” argues that President Trump has failed to address America’s housing challenges by not supporting recently proposed federal housing legislation. 

The column illustrates a common misunderstanding about where the real obstacles to housing affordability lie. 

While federal policies can influence mortgage financing, tax incentives, and lending regulations, the greatest barriers to affordable housing are found much closer to home. Local governments determine whether housing can be built through zoning ordinances, subdivision regulations, permitting requirements, infrastructure planning, development fees, density restrictions, and approval processes. These decisions directly affect the cost, quantity, and speed of residential construction. 

Describing America’s housing market as a single, national “housing crisis” oversimplifies a much more complex issue. Housing markets are local. Communities experiencing rapid population growth face different challenges than rural counties or smaller cities. One-size-fits-all federal legislation is unlikely to solve problems that vary significantly from one community to another. 

The recently proposed housing legislation contains provisions that may have merit, but it is difficult to argue that it would increase housing affordability without addressing the local regulatory barriers that often prevent new housing from being built in the first place. It risks becoming another piece of legislation that allows elected officials of both parties to claim progress while producing only modest practical results. 

Real improvements in housing affordability will come when local communities carefully examine their own land-use policies, encourage responsible development, streamline approval processes where appropriate, and create an environment in which builders can deliver more housing at prices that working families can afford. 

Before assigning blame to Washington, we should recognize that many of the most effective solutions begin at city halls, planning commissions, and county fiscal courts across America. 

TW Shortt 
Radcliff, Kentucky 

Tags: , , , ,

From Duty Station to Portfolio: How Military Families Build Wealth Through Real Estate 

22 Jun

Dominic Schroeder is a retired U.S. Army Military Police veteran whose career took him around the globe. As a REALTOR® with REALTY WORLD Knox Realty Group – The Fort Knox Office™, he brings that same discipline, planning, and attention to detail to help clients navigate complex real estate transactions throughout Hardin County and the Fort Knox region. 

For most Americans, building wealth requires years of saving, investing, and careful financial planning. For military families, however, another opportunity often goes overlooked: turning required relocations into a long-term real estate investment strategy. 

Here in the Fort Knox area, active-duty military members receive Permanent Change of Station (PCS) orders and move to a new duty assignment. Many families simply rent a home or purchase a house and sell it when they leave. Others take a different approach. They buy a home, live in it during their assignment, and then keep it as a rental when orders send them elsewhere.

 

Over a military career, this strategy can lead to owning several income-producing properties. 

One of the most valuable benefits available to service members and veterans is the VA home loan program. Qualified borrowers can often buy a home with no down payment, competitive interest rates, and no private mortgage insurance. These advantages make homeownership more accessible and can let military families start building equity much earlier than many civilian households. 

Continue reading →

Tags: , , , ,

More Than $125 Billion: The Hidden Savings Account Most Homeowners Never Think About

22 Jun

TW Shortt, CRS®, CRB®, is Principal Broker of REALTY WORLD® Knox Realty Group, LLC,

Right now, an estimated $125 billion (about $380 per person in the US) or more of homeowners’ money sits in mortgage escrow accounts across America.

Let that sink in for a moment.

That money doesn’t belong to banks. It doesn’t belong to insurance companies. It belongs to homeowners who must deposit funds each month to pay future property taxes and homeowners’ insurance premiums.

Continue reading →

Tags: , , , ,

Newer Entries →