Your Daily Digest for Real Estate Investing, 7/22/21
Defaults are falling as deferral is near, rising rents fuel inflation, another Florida condo evacuation, sticking to that short-term rent, and why public storage is still a good buy.
In today’s news
One million homeowners are at increased risk of foreclosure
The percentage of homeowners who are in arrears with their mortgage payments continues to decline, but at the current rate of improvement, it is likely that there will still be 1 million homeowners at increased risk of foreclosure as estate protection expires in September Inman reports today.
The Millionacres Takeaway: Black Knight data reported here shows the national crime rate is at its pre-pandemic lows, but the settling of many of these homeowners and the housing market is getting closer.
Rising rents threaten to prop up inflation
The rental market, which collapsed during the pandemic, has declined faster than many economists predicted, and renters across the country are facing sticker shock, the New York Times reports today [subscription required].
The Millionacres Takeaway: Rapidly rising rents will continue to make affordability a problem in many markets, and may also put pressure to raise wages, which will drag out the recovery for many small businesses and large employers alike.
Another condo building in Surfside, Florida is being evacuated after being deemed unsafe
People living in a waterfront condominium just blocks from last month’s deadly building collapse in Surfside, Florida volunteered to evacuate because of structural problems identified by an engineer, the Wall Street Journal reports [subscription required].
Take away the Millionacres: This evacuation was voluntary after the Condominium Association was informed after an initial inspection of structural issues that are throwing lives and property investments into turmoil for each of these residents and owners. The aftermath of the Miami disaster continues.
Today on Millionacres
Why now is a better time than ever to rent a short term rental
As a real estate investor, if you have a short-term rental in your portfolio, you might be sitting pretty well right now. Vacation rental demand has escalated this summer as state travel restrictions were lifted and a boosted economy made 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 hold out. Our Maurie Backman argues why the good times could just go on after school started.
Don’t let the price of this REIT put you off
Public Storage (NYSE: PSA) has been scorching hot last year. The self-storage REIT (Real Estate Investment Trust) is up nearly 60%, pushing its share price to over $ 300 per share.
The Millionacres Takeaway: While that price point makes it seem expensive, a closer look suggests that public storage stock is cheaper than it appears. Our Matthew DiLallo explains why.
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