The current number of markets in the “Sell Phase” is forty-eight, according to Eugene E. Vollucci, Director of CRES. The number of markets in the “Buy Phase” is eighteen. Mr. Vollucci states, “This quarter the three top buy recommendations are Milwaukee, WI, West Palm Beach, FL and Youngstown, PA. The three top sell recommendations are New York, NY, Eugene, OR and Raleigh, NC.” according to Mr. Vollucci.
In this edition of our Market Cycles, we find the national vacancy rates in the second quarter 2019 were 6.8 percent for rental housing and 1.3 percent for homeowner housing. The rental vacancy rate of 6.8 percent was virtually unchanged from the rate in the second quarter 2018 and not statistically different from the rate in the first quarter 2019 . The homeowner vacancy rate of 1.3 percent was 0.2 percentage points lower than the rate in the second quarter 2018, but not statistically different from the rate in the first quarter 2019.
Unemployment rates were lower in August in 5 states, higher in 3 states, and stable in 42 states and the District of Columbia, the U.S. Bureau of Labor Statistics reported today. Five states had jobless rate decreases from a year earlier, 2 states had increases, and 43 states and the District had little or no change. The national unemployment rate, 3.7 percent, was unchanged over the month and little changed from August 2018.
While the industry outlook is positive, political and regulatory threats like rent control threaten to upend regional markets. Among respondents to the NMHC Quarterly Survey, sixty-two percent operate in jurisdictions that have either recently imposed rent control or are seriously considering doing so. Of this group, a fifth (20 percent) has already cut back on investment or development in these markets, while an additional 60 percent is considering making changes in the future.
ABOUT THE AUTHOR: Eugene E. Vollucci, is considered to be one of the foremost authorities on real estate taxation and investing and has authored books in these fields published by John Wiley & Sons of New York. He is the Director of the Center for RE Studies, a real estate research organization. To learn more about the Center, please visit our web site at http://www.calstatecompanies.com
