Mortgage delinquencies and lumber prices soar, apartment rental payments hold steady, the DNC and housing, and what's up with Airbnb and its IPO.
In Today's News
Mortgage Delinquencies Show Record Spike in Q2 2020
The Mortgage Bankers Association reported this week that delinquencies saw the highest quarterly spike the MBA has ever recorded as they reached their highest level overall in nine years. As of June 30, 8.22% of all loans outstanding were considered delinquent, up 386 basis points from last quarter and 369 basis points from the year-ago quarter.
Why it matters: Delinquencies, unless resolved, lead to foreclosures. Millions of foreclosures leads to a hammered housing market and great social distress. None of this is good.
Soaring Lumber Prices Could Hamper Construction Demand
While builder sentiment and demand are both up, there are some risks affecting the market for residential construction, including a recent doubling of lumber prices, the National Association of Home Builders (NAHB) said today.
Why it matters: The NAHB estimates the jump in lumber costs adds $14,000 and $5,000 to typical single-family home and apartment prices, respectively. U.S. production has to go up or Canadian tariffs have to come down, or both, for the new construction market to avoid a slowdown.
NMHC Says Apartment Rent Coming in at Near Pre-Pandemic Levels
The National Multifamily Housing Council says its survey of 11.4 million professionally managed apartment units across the country found 86.9% made a full or partial rent payment by Aug. 13.
Why it matters: The payment performance so far in August is only 2 percentage points less than at the same point last year. That's an encouraging sign for landlords and property owners amidst dire predictions of widespread evictions because of nonpayment in a pandemic-plagued economy.
Today on Millionacres
The Democrats, Biden, Harris, and Housing
Millionacres' Deidre Woollard breaks down what the third night of the Democratic National Convention had to say about housing when it comes to the party's platform and its leadership, including Sen. Kamala Harris.
Why it matters: The virtual convention shared poignant stories about homes lost to foreclosure and more, providing some color to what's already come out on paper: that a Biden administration may aim to limit some of the tax breaks now provided to high-income earners who use popular offset programs like 1031 exchanges. Public housing, meanwhile, might see a surge in investment. Nothing's in stone until the election is settled, of course.
Airbnb Stock is Coming: What Will it Mean for Hosts?
Millionacres' Matt Frankel reports on what appears to be an imminent IPO from the uber-successful short-term rental site. There's a little we know and much that we don't so far.
Why it matters: Airbnb's CEO has said the company would like its most loyal hosts to also be shareholders. How that would really happen, and what that might mean to a company so hammered by the pandemic, remains to be seen.