Home prices rising pretty much everywhere, legal pot gives some pop to property values, Los Angeles landlords put on notice, CRE’s building labor shortage, the last mile just keeps getting pricier.
Today on Millionacres
Where Are Home Prices Rising the Most? Throw a Dart
Real estate investors may well profitably do that right now in the U.S. housing market. According to the National Association of Realtors (NAR), 99% of measured metro areas reported gains in the median sales price of single-family existing homes from 2Q20 to 2Q21
The Millionacres takeaway: The trade group’s report also came with the caveat that such heady gains aren’t likely next year, so it’s time to consider what that could mean for your residential real estate investing strategies.
Legal Pot: A Gateway Drug to Popping Property Values
One of the big arguments for legalizing marijuana, even for those who don't care to indulge, is that it's a cash cow for the tax coffers. But new research shows that's happening in ways perhaps unexpected as state after state loosens their grip on reefer madness.
The Millionacres takeaway: You don't have to buy a house next to an opium den or something to profit from all this. In fact, you can't -- legal dispensaries are not a place where the product is consumed. But there are multiple ways for real estate investors to get involved.
It’s Now Easier to Sue Los Angeles Landlords for Harassment
The nation’s second-biggest city just joined some California counterparts in enabling tenants to pursue legal action against their landlords for actions such as failing to perform necessary repairs, refusing to acknowledge receipt of tenant payments, or inquiring about a tenant's immigration status.
The Millionacres takeaway: The landlord-tenant climate already can be pretty ugly, and if the situation deteriorates further, we could see more cities impose comparable guidelines to offer tenants the maximum amount of protection. And that's something real estate investors with income properties in their portfolios should be aware of, our Maurie Backman writes.
Also in Today’s News
CRE’s Ongoing Problem: A Labor Shortage
The coronavirus isn’t causing a crisis in the commercial real estate business, according to this GlobeSt.com piece. It’s the labor shortage.
The Millionacres takeaway: Investment in new construction remains strong, but there are both short-term and long-term issues around birth rates, other demographics, and related realities that can affect how and when buildings get built and occupied. Long-term strategizing should include these considerations.
The Struggle to Site Last-Mile Distribution Facilities
Driven largely by e-commerce, demand for last-mile industrial facilities is at an all-time high, Commercial Property Executive reports, and bidding wars have broken out across the industry.
The Millionacres takeaway: Undeveloped land for this kind of use is "extremely rare," this report says, leaving redevelopment as the best and maybe only option. That and going multistory. That’s grist for the mill when it comes to considering commercial and industrial real estate investing options.