Evictions moratorium ruled unconstitutional, lumber prices whack new housing, the risk of short-term leases, Sephora steps up, and a look at zoning for multifamily housing.
Today on Millionacres
Federal Judge Rules Eviction Moratorium Unconstitutional
This week, a federal judge in Texas ruled the federal moratorium on evictions to be unconstitutional. And while that could put a large number of renters in a tough spot, it could also spell relief for struggling landlords.
The Millionacres takeaway: Our Maurie Backman points out that nearly 60% of single-family units in the U.S. are owned by mom-and-pop landlords with one to two buildings in their name. And it's these landlords who have been hurt by long-standing eviction bans. The case may not be over, of course, but this is a significant ruling and a case to watch.
Lumber Issues Whack at Housing Starts, Affordability
Record-high lumber prices are jacking up the price of new construction, sparking concerns about affordability and even demands for accountability by the nation’s largest residential housing trade group.
The Millionacres takeaway: Lumber prices affect remodeling as well as new construction, so high prices for this essential commodity hit at the bottom line for both. Now add to that concerns about affordability: The higher prices go, the more potential buyers can be shut out of the market for that particular property.
Also in Today’s News
Retailers Sign More Short-Term Leases in a Risky Bet for Mall Owners
Retailers and their landlords are engaged in a high-stakes game of risk right now. And it will be a few years until we find out which party is on the winning side, says this CNBC piece posted today.
The Millionacres takeaway: Those short-term leases may keep some cash coming in now, but what are the risks? They’re worth knowing, and the points being made in this article would seem to be relevant to commercial real estate in general, not just malls.
Sephora to Open 60-Plus Freestanding Stores in 2021
Sephora is embarking on the largest store expansion plan in its 21-year history in the United States, Chain Store Age reports.
The Millionacres takeaway: Along with those several dozen new freestanding outlets, the beauty giant is planning to open some 200 locations inside big-box Kohl’s (NYSE: KSS) stores. Hard to see a downside on this one from the CRE perspective, especially for optimists.
A Push for Zoning Reform in Connecticut
The New York Times reports today [subscription required] that momentum is growing for multifamily housing to be built in a state full of detached single-family houses.
The Millionacres takeaway: Advocates for affordable housing are pushing this issue in Connecticut and around the country, and it all begins with local, even hyperlocal, zoning boards. A reminder here that that’s the place to pay attention to what’s happening in your backyard, whichever side of the issue is yours.