Lumber prices plummet, job switching roils labor market, apartment REITs down but not close to out, the senior living housing market, and TikTokers to follow.
In Today’s News
Lumber Prices Post Biggest-Ever Weekly Drop With Buyers Balking
Lumber futures posted their biggest-ever weekly loss, extending a tumble from all-time highs reached last month as sawmills ramp up output and buyers hold off on purchases, Bloomberg reports.
The Millionacres takeaway: What goes up must come down, amirite? A retreat in this most fungible of commodities was inevitable, but the assumption that this will make new housing less expensive is just that: an assumption.
Forget Going Back to the Office. People Are Just Quitting Instead
As the pandemic clouds lift, the percentage of Americans leaving employers for new opportunities is at its highest level in more than two decades, The Wall Street Journal reports [subscription required].
The Millionacres takeaway: It’s not just low-wage folks in hospitality and retail jobs who are moving on or staying home. Professionals at a lot of levels are taking advantage of the opportunities to work at home and/or get paid more. Filling offices and orders just keeps getting tougher for those businesses that pay the rent for billions of dollars’ worth of retail, office, and industrial space of all types.
Today on Millionacres
Apartment Rents Improve, But Rent Troubles Not Over for Some REITs
Despite rebounding rents, investors still need to be prepared for weak financial results from some of the sector's biggest names. Spoiler alert: These portfolios include a high dose of coastal markets.
The Millionacres takeaway: Our Reuben Gregg Brewer explains why investors should not run scared from apartment-focused real estate investment trusts (REITs) with a focus on major coastal cities. History suggests that the biggest U.S. cities will come back in time. However, there's likely at least another year or two of weak results baked into the cake for landlords with heavy exposure to these locales.
The (Still) Big Opportunity for Some Healthcare REITs
Thanks to the coronavirus pandemic, healthcare REITs have broadly broken into two camps: those with senior housing assets and those without. But investors shouldn't give up on REITs with senior housing assets in their portfolios.
The Millionacres takeaway: If you've been avoiding senior housing-focused REITs because of the pandemic, you might want to go back and have a second look. There are some fundamentals at play that seem pretty immutable.
8 Real Estate TikTokers to Follow Right Now
Real estate and housing content is gaining traction on TikTok. And it's no wonder why: The top creators are offering seriously valuable info that saves consumers money, helps them build wealth, or keeps them from making costly mistakes or errors when buying a home, investing, or prepping for other real estate-related moves.
The Millionacres takeaway: TikTok may be popular with teens and tweens these days, but there's tons of great content out there for professionals, too -- including real estate investors and flippers. Our Aly Yale shares some of her favorites.