Delinquencies fall as forbearance expirations near, rising rents feed inflation, another Florida condo evacuation, hold on to that short-term rental, and why Public Storage is still a good buy.
In Today's News
A Million Homeowners Face Elevated Risk of Foreclosure
The percentage of homeowners who are behind on their mortgage payments continues to fall, but at the current rate of improvement, it's likely there will still be 1 million homeowners who are at an elevated risk of foreclosure as forbearance protections start expiring in September, Inman reports today.
The Millionacres takeaway: Black Knight data reported here shows the national delinquency rate is at pre-pandemic lows, but the reckoning for many of these homeowners, and the housing market, keeps drawing nearer.
Rising Rents Threaten to Prop Up Inflation
The rental market, which slumped during the pandemic, has snapped back more quickly than many economists predicted, and renters across the country are facing sticker shock, The New York Times reports today [subscription required].
The Millionacres takeaway: Fast-rising rents will continue to make affordability more of an issue in many markets, and perhaps ratchet up the pressure to raise wages as well, making the recovery drag on for many small businesses and major employers alike.
Another Surfside, Florida, Condo Building is Evacuated After Deemed Unsafe
People who live in a waterfront condominium a few blocks from last month's deadly building collapse in Surfside, Florida, have voluntarily evacuated because of structural problems identified by an engineer, The Wall Street Journal reports [subscription required].
The Millionacres takeaway: This evacuation was voluntary after the condo association was informed of structural problems following an initial inspection, throwing lives and that real estate investment in turmoil for each of those residents and owners. The fallout from the Miami disaster continues.
Today on Millionacres
Why Now's a Better Time Than Ever to Own a Short-Term Rental
If you're a real estate investor with a short-term rental property in your portfolio, you may be sitting pretty right about now. This summer, the demand for vacation rentals has escalated now that travel restrictions have been lifted across states and a boosted economy is making it easier for more people to make plans.
The Millionacres takeaway: It can be tempting to sell while the market is so hot, but maybe it's better to hang on. Our Maurie Backman makes the argument why the good times might just keep on rolling once school starts.
Don't Let the Price of This REIT Scare You Off
Public Storage (NYSE: PSA) has been red-hot over the past year. The self-storage REIT (real estate investment trust) has rallied nearly 60%, pushing its stock price above $300 a share.
The Millionacres takeaway: While that price point makes it seem expensive, a closer look suggests Public Storage's stock is cheaper than it appears. Our Matthew DiLallo explains why.