Cracks in the office foundation, soaring lumber prices' effect on affordability, "equity-rich" homeowners grow, residential REITs, and the "right kind" of retail.
In Today's News
Are Cracks Starting to Emerge in the Foundation of the Office Sector?
There are some fundamental strengths to the office rental sectors as well as some fundamental challenges to those assumptions now posed by a lingering pandemic.
Why it matters: This insightful Trepp analysis looks at the big picture -- the societal factors that affect every market -- and at some individual major metros. It's a good read for investors, owners, and managers as they look ahead.
Soaring Lumber Prices Limit Housing's Growth
The National Association of Home Builders (NAHB) said today that the average price of lumber has risen 80% since mid-April, adding thousands to the cost of a typical newly built home.
Why it matters: The demand for single-family homes has been a highlight in an economy otherwise laid low. But the NAHB also said today that housing affordability has hit an 18-month low. Adding this stress can't help those in the market to buy or sell.
Far More "Equity-Rich" Homeowners Than Loans Underwater
ATTOM Data Solutions said in a report today that homes it deems to be "equity-rich" account for 27.5% of the U.S. market while those considered "seriously underwater" account for only 6%.
Why it matters: "For now, homeowners are enjoying the gains when it comes to what, for most, is their most significant asset," says the data firm's chief product officer, Todd Teta. That caveat -- "for now" -- is important, but for now the housing market is doing very well in a very traumatized economy.
Today on Millionacres
Are Residential REITs Safe Right Now?
Residential rentals have seemed like a safe bet for investors. Shelter, after all, is like food, an essential. But how much has the pandemic changed things for residential REITs?
Why it matters: Millionacres' Aly Yale looks at how assumptions about residential rental investing, through the lens of REIT investing, is no longer safe. That doesn't mean it's a bad investment. Far from it. Just make sure to pick and choose based on an individual issue's merits.
These 2 Real Estate Stocks Are Down 10% in 2020. Time to buy?
Millionacres' Matt Frankel puts his seasoned investing eye on two issues that are in the middle of the pack when it comes to their valuations relative to their long-term performance and stability.
Why it matters: Just because a stock is down doesn't mean it's a good deal. These two REITs merit some serious "buy" consideration because they are, as Matt says, the "right kind of retail."