Author: Brad Beckett

The venerable AAA says Thanksgiving 2020 will be “on the lighter side” when it comes to the number of travelers on our nation’s roads and at airports.  They say effects of the Coronavirus pandemic (not to mention the recent surge and potential lock-downs) have impacted Americans’ decisions to travel, which they predict will be a 10% decline – the largest since 2008.  Stay safe, have a Happy Thanksgiving (11/26) and of course, have a Happy Friday!!! “The wait-and-see travel trend continues to impact final travel decisions, especially for the Thanksgiving holiday,” said Paula Twidale, senior vice president, AAA Travel. “The…

CNBC’s Diana Olick is reporting that fueled by record-low interest rates, homebuyer demand is surging after taking a slight break around election-time.  In particular she cites the latest mortgage application data from the Mortgage Bankers Association showing purchase applications were up 4% this week and 26% annually.  Indeed… Click here to watch the report at CNBC. Click here to see current interest rates.

The U.S. government is reporting that privately‐owned housing starts in October were at a seasonally adjusted annual rate of 1,530,000, which is 4.9% above September’s revised number.  October’s rate for units in buildings with five units or more was 334k.  Privately‐owned housing units authorized by building permits in October were at a seasonally adjusted annual rate of 1,545,000, which was virtually the same as September’s revised number.  Authorizations of units in buildings with five units or more were at a rate of 365k in October. Click here to read the full report at the U.S. Census Bureau.

The Wall Street Journal (reposted in Realtor.com) says big companies that own single-family homes are raising rent at the fastest rate since they emerged from the foreclosure crisis, capitalizing on high demand for suburban housing.  Interestingly, the WSJ says that while mom & pop landlords and individual investors own most of the country’s 16 million rental houses are also raising rents, they’re not raising them as aggressively as the mega landlords – which reportedly increased 7.5% on average in October. “The demand we see today is totally insatiable, and it’s growing,” said David Singelyn, chief executive of American Homes 4…

A new report from RENTCafé says that renters have become the majority 23 big cities (with >100k residents) over the past decade.  Among the reasons for this shift, were the 2008 housing crisis and the Great Recession – which they say caused caused many to postpone their homebuying plans altogether.  Indeed… “The housing crisis of 2008 and the great recession caused many Americans to lose their homes to foreclosure or postpone their homebuying plans altogether. This led to a massive boost in renting in the early years of the 2010-2019 decade — with the number of renters peaking at 111…

The NAHB’s Eye on Housing says that a shift has taken place in the number of multifamily units built as smaller properties, reversing a trend that favored larger buildings over recent years.  Citing data from the Census Bureau’s 2019 Survey of Construction, they point out that the number of multifamily units completed in buildings with 9 or fewer units and 10 to 29 units increased in both relative and absolute terms in 2019 while buildings with 30-49 units or 50 or more units decreased.  In addition they report that the total number of multifamily units completed in 2019 was 352k,…

Local Market Monitor, a National REIA preferred vendor, recently released their monthly National Economic Outlook where they share their thoughts on developments taking place in the U.S. economy. National Economic Outlook By Ingo Winzer November 13, 2020 It looks like the economy is getting better but the recession will still be with us well into 2021. The good news that Covid vaccines may be highly effective means that we can see an end to the pandemic within the next two years and a return to ‘normal’ economic growth; that’s good for real estate values. On the other hand, most Americans…

According to the latest Yardi Matrix Multifamily Report, the average U.S. multifamily rents were flat in October.  However, Yardi says the national numbers appear misleading as the sector is experiencing an ever-increasing divergence between outperforming and underperforming markets.  In addition, rents fell 0.6% nationwide, year-over-year.  Indeed… “With each passing month, outmigration from large gateway markets to secondary and tertiary tech hubs is amplifying. At this point, the apparent winners are markets in close proximity to large gateways but with significantly lower costs of living.” Click here to read the full report at Yardimatrix.com.

The U.S. Bureau of Labor Statistics is reporting that the Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in October, after increasing 0.2% in September.  Over the last 12 months, the all items index increased 1.2% before seasonal adjustment. Click here to read the full release at the Bureau of Labor Statistics.

Pandemic aside, what are the best and worst cities for that morning commute?  The Daily Infographic says it can be either a complete cakewalk or an incredibly tedious task.  Indeed…Today’s infographic takes a look at the best and worst commuter cities in America.  They point out that the worst cities are in larger and more densely packed states – go figure?  On that note, stay safe, be patient and have a Happy Friday! “The five worst commuter cities in America are Washington D.C., Baltimore, Los Angeles, Boston, and San Francisco. On the opposite side of the spectrum are the best…