Inflation fears intensify, a Big Apple boom in hotel builds, summer gas supply concerns, a housing supply pep talk, and some brokerages to bet on.
In Today's News
U.S. Consumer Prices Jump Most Since 2009, Outpacing Estimates
U.S. consumer prices climbed in April by the most since 2009, Bloomberg reported today [subscription required], topping forecasts and intensifying the already-heated debate about how long inflationary pressures will last.
The Millionacres takeaway: Some are arguing these price jumps are the result of pent-up demand meeting limited supply in many cases. If inflationary pressures continue, however, watch for interest rate hikes and the convulsions that could cause in the real estate market and about everywhere else.
New York Travel Is Down. Plenty of Hotels Are Opening Anyway
A projected 78 New York City hotels with more than 13,000 rooms combined will open in 2021, the largest year for deliveries in recent memory, The Wall Street Journal says [subscription required]. While many suffered construction delays during the pandemic and might hold back on their openings, dozens of others are still on track to open this year or early next.
The Millionacres takeaway: That's certainly some confidence among investors in these properties. If they're right, this could be a harbinger for serious economic recovery in the Big Apple and beyond. But it's not office space, either.
Today on Millionacres
Will Gas Prices, Supply Issues Hamper Summer Travel? Investor Considerations
A projected summer gas shortage could threaten struggling retailers and restaurants just as they were finally expecting good times by raising their costs of doing business and encouraging people to go out less.
The Millionacres takeaway: How the public responds to rising gas prices and shortages perceived and real will help determine the fate this summer of a lot of businesses counting on a successful travel season to get them past this storm.
More Housing Supply on the Way: What Investors Need to Know
Low housing supply has had sweeping effects on the market, sending prices skyrocketing (up 12% over the year) and making bidding wars the norm. For single-family real estate investors, it's created quite the challenge, especially with foreclosures banned and few distressed properties hitting the market.
The Millionacres takeaway: Our Aly Yale highlights some surveys and recent data trends that indicate the market could be in for a much-needed supply fix just a few months down the line. She says this would likely ease pressure on prices and make finding that next investment property much easier (and more affordable).
More Agents, More Money? Brokerages Make the Most of Booming Sales
Publicly traded real estate brokerages have been among the beneficiaries of soaring prices and sales. But will it last?
The Millionacres takeaway: Our Deidre Woollard takes a look at several such stocks and points out why they may provide good returns for years, and market cycles, to come.