Displaying items by tag: rentals

While it might seem like the real estate industry is performing poorly, appearances can be misleading. That is according to Todd Henderson, Co-Head of Global Real Estate DWS Group. Real estate was ranked as the S&P 500's third worst-performing sector in 2022, but Henderson believes the real estate business is a lot stronger in reality. He asserts that the market from rentals to home buyers is doing well with exception of commercial office buildings. He told Yahoo Finance that “The underlying fundamentals of real estate are quite strong.” According to Henderson, rental vacancies finished last year at 5.3%, the lowest vacancy rate on record since 1988, while the rental industry saw 7.5% income growth in 2022, the highest historically, except during the recovery from COVID. He also noted another positive development, an increase in millennial homeownership. He said this will continue to bolster housing market activity. According to recent Pew Research, from 2016 to 2021, nearly every U.S. state saw an increase in the number of young adults aged 25-44 forming new households. Henderson also notes that the market has seen an increase in cash buyers. According to data analytics firm Attom, Americans bought one of every three single-family homes and condos with cash in 2022.

Finsum:While it seems like the real estate market is struggling, Todd Henderson, Co-Head of Global Real Estate DWS Group, believes the underlying fundamentals remain strong due to rental vacancies being the lowest in years, an increase in millennial homeownership, and an increase in cash buyers.

(New York)

Governor Andrew Cuomo of New York has just announced that he will sign a dramatic bill which overhauls New York’s rental market. The bill would make permanent laws which govern over one million apartments in New York City. The bill needs to pass through the state’s Assembly and Senate on Friday, but if enacted, would greatly limit landlords’ ability to work around rent control regulations. “We believe this is going to be a huge shift in the ability of people in New York City and the surrounding areas to live in their communities comfortably without fear of being displaced”, says Senator Brian Kavanaugh.

FINSUM: Looking at the details of this bill, it appears more an effort to get votes by saying ”we froze rent increases”, than it is a well-thought out plan. We wonder if this will have an impact on the growing package of incentives wealthy people have to leave the New York area.