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.
Excellent article breaking down which group holds the most of the household savings. It’s not the middle class. The 4th & 5th quintiles of households are ok. They are saving money. However, the real deal is what’s happening to the households of the first 3 quintiles. They are net borrowers.
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The Great Retirement, how will the shortage of truckers and health care workers be offset by the sectors that are laying off?
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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?