DK RentalA collection of research and reports on the topic of Economics & Technology in the rental property management business around the globe. Read through, see where opportunities are heading and share your opinions.
Labour shortage narrative challenged by data. If there is a direct correlation between inflation and employment, if inflation decreases, the demand will also decline.
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Who said the real estate investment seminars of the 80s and 90s didn’t work? The long-term investment strategies created mom and pop Inc. Agree or disagree?
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Is this an indication of more issues emerging or a transition point for patient private debt investors?
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Very concerning signs as all the major names in technology announced layoffs. At the same time, we get news about the labour shortage, mainly in low-paid service work. As the high-wage work gets hammered, it doesn’t solve the labour shortage on the lower end. The question I have is after the severance packages run out and the finding a new job drops off, how will it affect the rest of the economy that keeps everything working?
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"The delinquency rate for home equity lines of credit (HELOC) also fell. Just 0.1% of accounts were delinquent in Q3, a new record low for the segment. This segment travels closely with mortgages since they’re unique types of secured debt. Unlike most types of loans, real estate delinquencies aren’t indicative of borrower health. If a market is booming, prices are rising and buyers will scoop the property within days. That means there’s little reason for a mortgage to become delinquent. A borrower in tough circumstances would liquidate before the 90-day mark. That’s why bubbles typically have low default rates. As higher rates persist, a normalization of real estate delinquencies is likely. Just don’t expect a US-in-2008-style bloodbath—credit liquidity isn’t that tight."
The data is sending mixed messages as losses are getting larger; however, the share of mortgages turning into losses is falling!? Are we getting false signals demand is still high and mortgage defaults will accelerate in the latter half of 2023 after people tap out their HELOCs?
Well-written overview of domestic and global challenges that landlords and real estate investors need to prepare and keep in the back of your mind. My concern is how this ripple effect will have on tenants paying their rent if it creates a domino effect. Governments put a ban on evictions during COVID to prevent an outbreak from social unrest. As a result, landlords are dealing with backlogs of evictions and delays from Landlord & Tenant boards. How do landlords manage and prevent it getting worse if this second round happens?