Strong residential sales, a hurricane a comin', students staying home, big names getting hit hard by the pandemic, and what's going on in New York.
Census-HUD Report Finds Residential Sales Soaring
The U.S. Census Bureau and Department of Housing and Urban Development reported today that sales of new homes surged in July, besting June sales by 13.9% and July 2019 sales by a whopping 36.3% and hitting a nearly 14-year high.
Why it matters: Location still matters, as the Midwest saw a 58.8% monthly spike. Sales in the Northeast actually fell by 23.1% in the month before. This may speak to the macroeconomic goings-on in those areas to which investors should pay heed.
Hurricane Laura Storming Toward Texas and Louisiana
Now potentially a major hurricane, Hurricane Laura's cone of uncertainty this morning put 431,810 homes with a reconstruction value of nearly $88.63 billion at risk of storm surge damage on the Gulf Coast.
Why it matters: Rental property owners in the line of fire will want to prepare their properties and check out their insurance policies. Hopefully they have flood insurance.
Nearly Half of Higher Education This Fall Will Be At Least Partially Online
Trepp reports that nearly half of U.S. colleges and universities plan to be fully or partially online this fall because of the COVID-19 pandemic.
Why it matters: Students not on campus can mean students just staying home. If that happens in big enough numbers, one wonders how much havoc that would wreak on the off-campus housing boom, including to such real estate investment trusts (REITs) such as American Campus Communities.
Today on Millionacres
The Pandemic is Pummeling Franchises, Too, Not Just Mom and Pops
A number of major retailers are closing stores and have not paid their rent in full through July, too.
Why it matters: If this trend continues, a lot more stand to get hurt, including major commercial real estate operators and small investors.
New York City on the Ropes? Fuggedaboutit!
Millionacres' Deidre Woollard shares how comedian Jerry Seinfeld responded to a widely read essay by a local entrepreneur and author who says the Big Apple has died.
Why it matters: Rents are falling, restaurants are closing, and city folk are fleeing to the hills and dales. Seinfeld may say the guy is a putz, and did, but growing reports of such moves nationwide -- prompted by desire for space and the freedom to work from home -- shows that the evidence may be more than anecdotal.