California’s SB 9 is now a done deal — what lies ahead? An eviction tsunami is predicted, and landlords’ chins are still sticking out. A look at multifamily investing in a hot market.
Today, It’s All About Housing
Fresh off thwarting his own recall, California governor Gavin Newsom has signed into law Senate Bill 9, which his office says will lead to the creation of more than 84,000 new affordable homes.
The Millionacres takeaway: That pledge is part of a $22 billion commitment to addressing housing and homelessness. Also included is expediting construction of an estimated 6,500 shovel-ready affordable multifamily units in projects Newsom’s office says have been stalled by constraints on the supply of tax-exempt bonds and low-income housing tax credits.
The Millionacres takeaway: We highlighted Laura’s take on this issue several days ago, but now that this coming sea change is a fait accompli, we think it bears repeating.
We could soon see the start to a massive eviction wave that could impact as many as 750,000 households by year’s end, according to a recent Goldman Sachs study. Here’s what investors need to know.
The Millionacres takeaway: Our Liz Brumer writes that evictions at this scale will impact the real estate market and beyond. Landlords can’t be expected to continually take a hit from moratoriums, but increased homelessness or transitional housing increases the risk of transmission of COVID-19, and that could prolong the pandemic and put a number of households at risk. No one really wins in this scenario.
Our Laura Agadoni says that for the first time since she’s been a landlord, she hasn’t wanted to look at the year-end figures for any of her properties.
The Millionacres takeaway: Laura gives her personal and professional take on the results of a survey of over 2,500 landlords of rental properties in 10 cities conducted by the Joint Center for Housing Studies (JCHS) at Harvard University. It’s not a pretty picture. For a lot of reasons.
Second-quarter 2021 saw massive increase in multifamily investment volume to the tune of 34% quarter over quarter — up to $52.7 billion, according to a recent report from CBRE. Vacancy rates are down, rents are up, and it seems like a really great time to be buying multifamily properties.
The Millionacres takeaway: Of course, it’s great to be told that things are up and things are down in all the right directions, our Kristi Waterworth writes, but truly understanding why the market is doing what it’s doing is kind of important. She explains.
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