Former Fed chair in the news, home prices and affordability, lots of people really are leaving big cities, and some high-end hope for malls.
In Today's News
Bernanke: More Multifamily Housing Needed to Combat Affordability Crisis
The former Fed chair says growing supply would ease a demand crunch that's forcing up home prices and that state and local governments will need to step up by helping private developers.
Why it matters: Affordable housing is an area of investment that has long seen public-private partnerships in action, and meeting that growing demand could present some new opportunities in the years ahead, as well.
S&P CoreLogic Case-Shiller Index Shows Highest Home Price Jump Since 2014
S&P Dow Jones Indices say that September's 7.0% growth rate was the highest in six years and that it may reflect both a catch-up of depressed demand from earlier this year as well as presage future strength as COVID-19 encourages potential buyers to move from urban apartments to suburban homes.
Why it matters: This is good news for home sellers, but it does make it tougher for investors to find deals, and for prospective homebuyers who may not be able to afford the higher prices.
Nearly 16 Million People Have Moved From Major Cities During the Pandemic
GlobeSt.com reports that nearly 16 million people fled large cities during the pandemic with 14.2 million filing a permanent change of address form. This is a 1.2% increase from 2019 in permanent change of address submissions.
Why it matters: The article also notes that rents have declined in some of those big city markets because of the exodus, which could help with the affordability issues there and create some new demand for landlords having to settle for less income to keep the cash flow going.
Today on Millionacres
What Could Janet Yellen as Treasury Secretary Mean for Real Estate?
President-elect Joe Biden has tabbed former Fed chair Janet Yellen to succeed Steven Mnuchin as the head of the Treasury Department, which would make her the first woman to have been head of the Fed, Treasury, and White House Council of Economic Advisors.
Why it matters: Millionacres' Deidre Woollard notes that Yellen is a deeply experienced, well-known quantity seen as a steadying force by Wall Street while she was in key posts through some of the most wrenching economic turmoils of the past couple decades. She also has attracted bipartisan support in the past, which wouldn't hurt either.
Mall REITs Might Not Be in As Much Trouble As You Think
Millionacres' Matthew DiLallo looks at how and why one major player -- Brookfield Property (NASDAQ: BPY) (NASDAQ: BPYU) -- is recovering nicely thanks in no small measure to the desire of people with cash to get out of the house and do some therapy shopping in high-end stores.
Why it matters: Matt says this could bode well for the future of malls -- and those who invest in them -- because it suggests consumers won't completely abandon them in favor of shopping online.