These 2 assets are the top picks for real estate investors

Unsubscribe below if you would like to stop receiving future emails

New here? Join the newsletter (it's free).

Reverse mortgage volume rose in July while securitizations fell link

• Reverse mortgage endorsements increased by 4.3% in July, signaling a higher demand for these loans, especially among older homeowners. This growth contrasts with a decline in Home Equity Conversion Mortgage (HECM) securitizations, which dropped 2.9% during the same period.

• The dip in securitizations could indicate a tightening in the secondary market, despite the growing interest in reverse mortgages. This may reflect broader economic uncertainties or shifting investor sentiment.

• Specific regions like the West Coast saw a more pronounced increase in reverse mortgage activity, driven by higher home values and aging populations looking for additional income streams.

Holiday Shift & Eclipse Boost Q2 Hotel Fundamentals link

• Hotel demand grew by 1.3% in Q2, surpassing the 0.6% rise in supply, leading to a 0.7% increase in occupancy rates. This demand was driven by an earlier Easter and increased leisure travel due to a solar eclipse.

• Revenue per available room (RevPAR) increased by 2.2% year-over-year, bolstered by a 1.5% rise in average daily rate (ADR). This indicates stronger pricing power in the hotel industry despite the competition from short-term rentals and cruise lines.

• Hotel wages grew by 4.6% in Q2, though this is a slowdown from Q1's 5.5% growth. Hotel hourly wages remain over $10 below the national average, reflecting ongoing wage pressure in the industry.

Apartment Occupancy and Rent Growth Continue to Stabilize in July link

• U.S. apartment occupancy remained stable at 94.2% in July 2024, continuing a three-month trend. This rate is historically typical for July, signaling a stable market.

• Effective asking rents increased by 0.3% in July, pushing the year-to-date rent growth to 2.2%, consistent with 2023. However, annual rent growth was minimal at 0.3%.

• Concessions are steady, with 14% of units offering deals. The average concession increased slightly to 28 days, indicating slight pressure in some markets.

Multifamily and industrial assets are the top picks for investors link

• Real estate investors remain hopeful about market recovery, though they acknowledge ongoing challenges like high interest rates and economic uncertainty. Many are taking a cautious approach to new investments.

• Multifamily and industrial assets are the top picks for investors, with many viewing them as more resilient to economic downturns. The strong demand in these sectors is a key factor behind this confidence.

• Investors are increasingly focused on risk management strategies, such as diversifying portfolios and emphasizing properties in stable markets. This is a shift from previous years when risk-taking was more common.

More senior households are carrying high levels of debt link

• Senior households are increasingly burdened by debt, with nearly half of households aged 65 and older carrying mortgage debt, up from 38% two decades ago. Rising healthcare costs and limited income growth contribute to this financial strain.

• The average debt for seniors has more than doubled since 2001, reaching around $31,000 in 2022. This financial pressure can impact retirement security, forcing many to work longer or rely on Social Security.

• Urban areas are seeing the highest levels of senior debt, with cities like Los Angeles and New York highlighting the issue. High housing costs in these regions exacerbate the problem, making it difficult for seniors to pay off their debts.

This is the Number of Apartments the US will Add This Year

America’s Quietest Places To Live, Ranked—Including Ones That Don’t Break the Bank

America’s Top 10 Safest Communities

Top 10 Opportunity Zones Where Median Home Price Nearly Doubled Quarterly

Cities with the Highest Rent in 2024

Mapped: Countries Experiencing the Most Positive Emotions

They bought a zoo!

Link to the listing

That's all, folks.

Cheers,

Vidit

P.S - Read past newsletters here