Delta variant's effect on economy and real estate; single-family rental market attracts more investment; housing starts up despite supply issues, which also are hitting remodeling work.
Today in COVID-19 News
Delta Variant of COVID-19 Isn't Expected to Dent Robust U.S. Recovery
The highly contagious delta variant of COVID-19 doesn't pose an immediate risk to the strength of the U.S. economic recovery, with analysts expecting a robust expansion to continue in the second half of the year, The Wall Street Journal reported today [subscription required].
The Millionacres takeaway: The real estate market moves with the economy, and a continued upward trajectory overall would help that investment segment. Inflation may be more of a concern, economists say in this report.
How the Delta Variant Might Impact Real Estate
Clearly, the escalating threat of the delta variant is bad news from a public health perspective. But it could also be very bad news for real estate investors if it continues to worsen.
The Millionacres takeaway: Our Maurie Backman points out that if things get bad enough, travel, retail, and hospitality are just some of the recovering sectors that could be hit hard by any lockdowns or restrictions that could be reimposed.
Today in Housing News
Canadian REIT Boosts Its Big Stake in SFRs South of the Border
Tricon Residential this week said it had entered into a joint venture with three institutional investors to commit about $5 billion to buy single-family rentals (SFRs) across the United States.
The Millionacres takeaway: The Toronto-based real estate investment trust's (REIT) plans to buy 18,000 SFRs in the next three years adds to the list of major players putting down big stakes in that segment, and to the competition for small players trying to buy a place of their own to flip, rent, or live in. But it could be a good stock investment, too.
Housing Starts Increase in June but Supply-Side Issues Linger
Overall housing starts increased 6.3% in June to a seasonally adjusted annual rate of 1.64 million units, the U.S. Department of Housing and Urban Development and the U.S. Census Bureau said this week.
The Millionacres takeaway: The National Association of Home Builders, in their assessment of monthly housing starts, said lumber prices and supplies availability continue to be a drag on a market that could be even hotter.
Flipping a House or Renovating? Expect to Pay More for These Services
We already know that lumber and paint prices are on the rise, but according to a new report from Houzz, other renovation materials (not to mention various renovation services) are set to spike in cost as well.
The Millionacres takeaway: Our Aly Yale explains that in addition to these added costs, remodeling projects could take weeks or months longer than you might expect. Plan (and budget) accordingly.