Inflation cools, foreclosure rates and rents hit 20-year marks -- in opposite directions, rating a mall REIT's recovery, revitalizing restaurants.
In Today's News
U.S. Consumer Price Growth Posts Smallest Gain in 7 Months
Prices paid by U.S. consumers rose in August by less than forecast, snapping a string of hefty gains and suggesting that some of the upward pressure on inflation is beginning to wane, Bloomberg reports today [subscription required].
The Millionacres takeaway: Inflationary pressures are seen as a threat to consumer sentiment, which is key to sustaining spending that's the backbone of a retail-driven economy that sustains commercial real estate -- and so on and so forth. (Maybe this coronavirus-stricken economy still has good bones after all. It's all so connected.)
CoreLogic Reports June U.S. Foreclosure Rate Lowest in Over 2 Decades
The data firm reports today that serious delinquency rates declined for the 10th consecutive month in June as U.S. homeowners remain resilient in the face of the pandemic.
The Millionacres takeaway: The expiration of forbearance agreements that remain could have some effect going forward, since the CoreLogic researchers found they are among a group where serious delinquencies still exist. But all in all, it looks like little reason to expect a flood of foreclosures to fill flipper shopping lists.
Soaring Rents Make It a Very Good Time to Own an Apartment Building
National asking rents rose 10.3% in August, The Wall Street Journal reports today [subscription required], the first double-digit increase in the more than 20 years that RealPage data has been collected. In several hot cities, the rent increases were much greater than the national figure.
The Millionacres takeaway: That performance is despite eviction moratoriums and an economy still in recovery. What will it be like when conditions are ideal? Now might be a good time to stake a claim in rental property of your own or a real estate investment trust (REIT) that specializes in multifamily.
Today on Millionacres
Macerich Sees a Brightening Future. Do We?
Macerich (NYSE: MAC), one of the largest mall REITs, made a bold call about its business recently. Our Reuben Gregg Brewer shares here what you need to know.
The Millionacres takeaway: There's reason for optimism about this veteran operator but also some skepticism about its future prospects, especially compared to some of its rivals.
National Restaurant Association Seeks More Federal Bailout Funds
Just when people started going out to eat again in encouraging numbers, the delta variant surged, sending a lot of people to the hospital or worse, and others back home to order in. Our Laura Agadoni looks at new developments in bailout efforts and the ramifications overall.
The Millionacres takeaway: Perhaps the Restaurant Revitalization Fund will be replenished. If not, expect more changes in the dining landscape. Maybe there will be an uptick in furniture sales, Laura notes, as people will need dining room furniture for eating their delivered food.