Look At What Is Booming!
Look At What Is Booming! from King World News
With the Dow hitting a new all-time high, look at what is booming.
January 14 (King World News) – Gerald Celente: As people lose their jobs and wages diminish, the “rent but can’t buy a house” trend will continue to escalate.
Just as they did back when the Panic of ‘08 hit, the Bigs will build new houses and buy ones in foreclosure to rent out to cash-strapped consumers.
New home construction is speeding at a pace not seen since 2007. Many of the buyers are not individuals but institutional investors who are betting that families want to exit the cities and live in suburbs even if they are unable to buy a home there.
“Every institutional investor is considering this space,” Trevor Koskovich, who sells property investments at NorthMarq, told the Wall Street Journal. NorthMarq was part of a $235-million deal in which a Chicago investment firm bought five gated communities in Arizona…
No Money, No Home
Demand for space outside of cities combined with low-interest rates has pushed home prices to record levels. However, that has placed homeownership beyond the reach of average earners in 55 percent of U.S. counties, compared to 43 percent a year ago, according to analytics firm Attom Data Solutions.
Landlords who own single-family houses report record occupancy and rising rents since last March.
As a result, builders now are putting up houses to sell wholesale in packages to investors.
For example, the Journal reported that the five Arizona projects bundled 943 one- and two-bedroom houses built by Taylor Morrison Homes for developer Christopher Todd Communities. The two are partnering to build more “rental villages” across the U.S. southwest.
The share of single-family homes built for investors will grow fivefold to 5 percent in the next few years, Darin Rowe, Taylor Morrison’s rental chief, told the Journal.