In Today's News
Realtors Confident Recovery Is Underway
The National Association of Realtors says more than 90% of its members believe that real recovery from the pandemic is underway in their areas.
Why it matters: The trade group polled agents working in both residential and commercial markets. The homebuying horn has been blowing for several weeks, but a commercial bounce back could mean the economy is recovering at some new depth.
Manhattan Apartment Vacancies Rise, Rents Fall
Reports say there were 10,000 listings in June, a record high, and that a vacancy rate of 3.67% actually is much higher in some buildings. Average rents fell 8% in a month, too.
Why it matters: Manhattan is a bellwether market for high-priced, high-demand apartments. Declining demand and rents there could be a signal for investors to prepare for that in their own portfolios.
One-Third of Mortgages, Rents Missed Full Payments in July
Meanwhile, about one-third of American households have not made a full, on-time housing payment so far this month, according to Apartment List.
Why it matters: This report looked at mortgage and rental payments and found particular distress among younger tenants. With relief ending soon for millions, property managers and investors may soon face extra stress and some tough choices themselves.
Ann Taylor, Lane Bryant Owner, Plans Massive Store Closings
Ascena Retail Group (NASDAQ: ASNA) is said to be preparing for bankruptcy and plans to shut 1,200 of its 3,000 stores. Bed Bath & Beyond (NASDAQ: BBBY) sees a similar fate for 200 of its more than 950 locations.
Why it matters: These two Bloomberg reports today show the demise of brick-and-mortar continuing for iconic names in both malls and shopping centers, further eroding the base of what had for so long been deep-pocketed, reliable tenants of those spaces.
Today on Millionacres
California State Budget Commits $5 Billion to Affordable Housing
A mix of tax credits and targeted programs is aimed at helping to alleviate an affordable housing crunch in the Golden State that may only get worse as moratoriums and deferrals expire.
Why it matters: California is a huge economy unto itself. Underwriting affordable housing means committing billions to incenting private developers and investors to ante up in a segment where demand seems certain.