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5 at 5: Your Daily Digest for Real Estate Investing, 11/18/2020





© Provided by Millionacres
5 at 5: Your Daily Digest for Real Estate Investing, 11/18/2020

Gen Z and the apartment biz, single-family home starts on a high, concerns about banks and CRE, Amazon the drug dealer, and a look at an apartment REIT.

In Today’s News

Gen Z Renters Moving Out and Moving Up

Zillow (NASDAQ: Z) (NASDAQ: ZG) said today that rental concessions, such as a free month’s rent or reduced security deposit, appear to be luring Gen Z out of their parents’ basements and back into the rental market.

Why it matters: Zillow researchers also found that enhanced tools like 3D tours can help attract new tenants from that younger set in the first place. Anything can help nowadays for beleaguered landlords.

Single-Family Starts at Highest Pace Since Spring 2007

Led by solid gains in single-family production, overall housing starts increased 4.9% in October to a seasonally adjusted annual rate of 1.53 million units, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

Why it matters: While the residential real estate surge continues to hit pre-Great Recession levels, the National Association of Home Builders predicts that housing starts could begin leveling off in the months ahead. Always something for investors to watch as they think about their next moves in their market.

‘Some Financial Institutions Will Fail’: Concerns Rise About Bank CRE Loans

Bisnow reports that the stress of troubled loans is mounting, especially among the country’s midsized and community banks, as government support propping up businesses at the start of the pandemic has evaporated.

Why it matters: More troubles with commercial real estate loans could slow lending and CRE activity. Plus, banks hold half of the outstanding CRE debt in this country, more than before the Great Recession. And we know what happened then.

Today on Millionacres

How Will Amazon’s New Pharmacy Biz Affect CRE Investors?

These days, there are very few things Amazon (NASDAQ: AMZN) doesn’t seem to have its hands in. The online retail giant’s latest venture is online-based but definitely something that could shake up commercial real estate.

Why it matters: Millionacres’ Maurie Backman lays out how a drop in in-store visits could lead to a drop in the sales of not just those prescriptions but the other stuff we buy when we’re in a drug store, and how that could lead to possible store closings and shopping center vacancies.

Is UDR a Millionaire-Maker REIT?

Apartment-focused UDR (NYSE: UDR) has done a fantastic job creating shareholder value over the years. Investors who bought $10,000 of its stock 20 years ago would have seen that investment grow into more than $99,000. Can it make millionaires out of its new investors?

Why it matters: Millionacres’ Matthew DiLallo looks at the headwinds and tailwinds alike and concludes that the former look stronger than the latter, something to consider if you’re considering this residential REIT.

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