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Philadelphia Real Estate News | The Untold Stories
Dated: September 10 2021
What does art have to do with real estate news?
Great question! Makes me flash back to my college days being asked why I double majored in Art and Business.
As an artist, my eye is trained to see the form and flow in negative space which often has the strongest impact in design, and can be seen as form itself.
I find the same perspective valuable in analyzing real estate news from both national and local sources.
Often dangerous rip tides are not immediately visible in what appears to be calm water. Ok, I'm mixing metaphors but you get the idea?
Connecting negative spaces with stories from this week are a prime example;
- Supreme Court throws out eviction moratorium
- More Philly landlords are selling properties and deferring maintenance, which threatens the supply of affordable housing
- Hedge Funds Buying Residential Properties
- Who's outbidding you by tens of thousands of dollars for that home of your dreams? - NBCNews.com
- What Happens When Hedge Funds Buy Up Neighborhoods - TheFederalist.com
- Investment Firms Aren’t Buying All the Houses. But They Are Buying the Most Important Ones
Sound familiar? Like 2008?
During the mortgage crisis, we saw Wall Street funds use bailout money to buy distressed properties across the country to hold in REIT's as long-term rentals. It appears the same dynamic is well underway post-COVID.
How do these tie together?
The connectivity lies in the "negative space" between these stories. Just like statistics can be a one dimensional polaroid, so can news bytes.
For instance, tenant moratoriums appear to be in the best interest of renters, but is that how it played out?
With individually owned rental properties disappearing into hedge funds, we are losing the local neighborhood landlords who tend to be more friendly and negotiable.
Rents are skyrocketing. Buying at today's higher values means owners have to raise rents to make the numbers work. Not only are we facing a housing crisis with evictions, there are no longer Mom & Pop landlords willing to work with tenants in various situations.
Another dimension is the undermining of generational wealth. Yes, today's market is strong and hopefully these families yield equity from the sale of their rental properties. But real estate wealth is a long game. Holding and passing on income generating properties to future generations is at the core of wealth creation.
I was first alerted to this dynamic listening in Clubhouse discussions with lenders, institutional investors, realtors and advisors from across the country.
Other news stories of interest:
"Economists don’t expect the variant to push the U.S. back into recession. But the loss of steam could prolong the recovery of the millions of jobs lost during the pandemic ...At the same time, that damping effect could ease inflation pressures if it reduces consumer demand."
According to Kevin C. Gillen, senior research fellow at Drexel University’s Lindy Institute for Urban Innovation, this market is like none he’s seen in his years of analyzing Philadelphia residential real estate sales. Since last summer, he says, the market has outstripped even the 2008 market..."
Sandy Smith, PhillyMag.com
Examples of negative space in art, including one of my own:
PS - if you can guess which one is my original art, I'll buy you coffee!
Susanna Kunkel, Realtor
Luxury Specialist - CLHMS
eXp Realty, LLC
Susanna provides executive level service to all her clients based on her years in corporate CEO offices. Creative marketing, global networking and local expertise. Her unique mix of business savvy and....