Biden to propose national rent hike cap of 5%, Top 10 Most Valuable Unicorn Companies

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Supply Chain Stresses Coming Back Link

• Container freight rates are rising, and it currently costs $9,000 to transport a 40-foot container from Shanghai to New York. At the peak of Covid, the cost was $16,000, see the first chart below.

• The sources for the rise in transportation costs are Suez crossings significantly below normal levels, disruptions at some Asian ports, and growth in demand due to restocking.

• The rise in transportation costs is very specific to containers. Freight rates by truck, rail, and air have generally not increased by the same magnitude. Only the Baltic Capesize Index is trending significantly higher.

• Most importantly, if the global economy was slowing down rapidly, then all transportation costs would be falling. That is not what we are seeing, which suggests that global growth continues to be fine.

Skyrocketing Multifamily Expenses Are More Than Insurancelink

• Payroll, utilities, and repairs have seen drastic growth, surpassing revenue increases and straining net operating incomes. Moody's analysis highlights the critical nature of managing these operational costs to maintain valuations.

• Rent increases are necessary for landlords to balance expenses, keeping the average operating expense ratio around 45%. This pressure on renters contributes to higher overall inflation, complicating efforts to reduce interest rates.

• Multifamily owners struggle with insurance coverage, impacting their ability to refinance. This challenge creates broader implications for lenders, adding to financial pressures in the sector.

Seasonal Student Housing Pre-Leasing Grows at Normal Pacelink

• U.S. student housing pre-leasing is at 84.5% for Fall 2024, slightly down from 85.8% last year. This indicates a steady demand, aligning with pre-pandemic trends.

• Month-over-month pre-lease growth was 6% from May to June, higher than the typical summer slowdown. This suggests a robust leasing environment even when students are off-campus.

• RealPage's tracking covers 175 universities, highlighting consistent leasing activity across various institutions. Despite a slight decline, the market remains strong compared to historical levels.

Biden to propose national rent hike cap of 5%link

• Biden's proposal would limit annual rent increases to 5% for landlords owning more than 50 rental units. This cap aims to control rising housing costs, which have surged 32.1% since March 2020 according to Zillow.

• The cap would not apply to newly built units to avoid discouraging new housing construction, a key part of Biden’s housing policy. It also aims to balance rent control with ongoing efforts to increase the housing supply.

• Affordable housing advocates support this measure, though some studies suggest rent control can lead to a decrease in rental housing supply. Critics argue it may prompt landlords to convert rentals into condominiums.

Mid-Year Rental Activity Report: Minneapolis Is Top City in 1st Half of 2024, West Most Desirable Region for Renting Link

• Our mid-year review reveals a growing trend of renters adopting a meticulous approach to their apartment search by thoroughly exploring multiple options before making a decision.

• Minneapolis maintains its dominance as the most sought-after city in the first half of the year, claiming the top spot for five out of six months.

• Atlanta takes third place in terms of rental activity for the first six months of the year with Cleveland hot on its heels, while the nation’s capital ranks sixth.

• The West consolidates its status as the most coveted region for renting, edging out the South and Midwest.

What Happens to the Housing Market When Rates Finally Drop?

Top 10 U.S. States Posting Midyear Declines in Foreclosure Filings

AI's Impact on Hotels

Multifamily Cap Rate and IRR Metrics in Q2

What is going to happen to foreclosures through the end of 2024 per Auction.com

Ranked: The Top 10 Most Valuable Unicorn Companies

A 9 bedroom, 3 kitchens former courthouse, house……For $396K

(International Property)

Link to the listing

That's all, folks.

Cheers,

Vidit

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