FOMO and the housing market, record apartment demand, home flipping in a flop, Nextdoor going public, Airbnb and the eviction ban.
In Today's News
Millennials' Real Estate FOMO Goes Haywire
Pointing to a "dunger" in New Zealand, or dilapidated house, as exhibit A, this Bloomberg Opinion writer says today that what's happening in many places -- including here -- is a stimulus-fueled search for a better quality of life that has morphed into a frenzy driven by the fear of missing out (FOMO).
The Millionacres takeaway: As this piece posits, "Survivalism, stimulus and the search for space make it easy to ignore warning signs" of a boomerang on buyers that may be waiting when the excitement cools.
Apartment Demand Hits Record High in Second Quarter
Demand for apartments has hit unprecedented levels, according to new data from RealPage, with Dallas-Fort Worth leading the way among individual cities, GlobeSt.com reports today.
The Millionacres takeaway: The demand is being driven by younger people moving out of their parents' homes and by the allure of luxury apartments to anyone who can afford them -- and more people now can.
Today on Millionacres
Home Flipping Profits Hit Lowest Point in 10 Years
It hasn't been a great year for home flippers. According to the 2021 U.S. Home Flipping Report by ATTOM Data, only a mere 2.7% of all home sales were flips in the first quarter of the year -- the lowest share seen in 21 years.
The Millionacres takeaway: Our Aly Yale notes that housing is cyclical -- and these challenges won't last forever. Once prices level out and foreclosure moratoriums lift, home flippers should see strong profits and prime opportunities once again.
Nextdoor Is Going Public Via SPAC: Should You Invest?
Our Matt Frankel says he's just learned that neighborhood-focused social networking platform Nextdoor has agreed to go public via merger with a special-purpose acquisition company, or SPAC, known as Khosla Ventures Acquisition Co. II (NASDAQ: KVSB).
The Millionacres takeaway: Matt says this deal values the business at $4.3 billion, and he lays out more about the upcoming IPO that investors should consider.
Airbnb Takes a Stand on COVID-19 Evictions
Airbnb (NASDAQ: ABNB) wants to prevent landlords from advertising on its site if they evict a nonpaying tenant from July 1 throughout the end of the year (at least). That's a new turn of events for a vacation-rental platform.
The Millionacres takeaway: Our Laura Agadoni says some hosts might feel as if Airbnb has overstepped its boundaries. If you're an Airbnb host, you might want to think twice about using its service. And if you're a host or investor in Airbnb, it's always a good idea to pay attention to the way this company conducts business.