New York moves on restaurants and bars, metro home prices rise nationwide, HUD public-private project gets plaudits, lessons from an apartment REIT, and a zenith for Zoom towns.
In Today's News
New York Announces New Curfew for Restaurants and Bars
Restaurants and bars will come under a new nightly curfew this week as the Empire State combats a surging outbreak of COVID-19.
Why it matters: Usually we look to California for things to happen first, but in this case, New York -- the whole state -- might be on the leading edge of another nationwide slamming shut of retail space doors. That would be a severe blow to an economy still on the brink, and to landlords of millions of properties.
Metro Home Prices Up Across the Nation in Q3 2020
The National Association of Realtors reported today that single-family home prices rose in the third quarter this year in every metro area the trade group tracks, and by double digits in 65% of them.
Why it matters: The typical mortgage payment on a single-family home is now $1,059 and the household income needed to sustain that rose to $50,819. Affordability in these turbulent economic times could also be a growing problem, and that could impact investment opportunities in this market.
HUD Rental Assistance Pilot Generates More Than $10 Billion in Construction
The U.S. Department of Housing and Urban Development said today that the Rental Assistance Demonstration (RAD) program has now facilitated more than $10 billion in capital investment since the program's inception to improve or replace 140,000 public housing units -- the majority of which house extremely low-income families, seniors, and persons with disabilities.
Why it matters: The demonstration project brought together private investors and public housing authorities to provide secure, quality affordable housing in a way that provides an ROI for investors and a clear public benefit. Its success could pave the way for more such opportunities.
Today on Millionacres
This Apartment REIT Sees More Trouble Ahead
Millionacres' Matthew DiLallo takes a hard look at Equity Residential (NYSE: EQR), a real estate investment trust (REIT) with a major focus in big markets like New York, San Francisco, and Boston. The CEO sees tough sledding ahead but says he's confident in an eventual rebound in big markets that feature a strong presence in the knowledge industries.
Why it matters: This knowledge could apply to your next REIT investment, if this reasoning sounds reasonable to you.
What Are Zoom Towns, and Should You Invest in One?
Zoom (NASDAQ: ZM) towns are housing markets that are suddenly booming as remote work becomes more mainstream. These towns are generally smaller cities, often in close proximity to amenities like beaches, ski resorts, or other attractions that tend to draw in vacationers.
Why it matters: Millionacres' Maurie Backman points out that Zoom towns aren't necessarily a bargain for renters or buyers, especially in areas that were already high-priced. But they do offer a different quality of life and possible new rental streams for investors, especially in vacation destinations.