This week’s roundup highlights housing affordability, the rental inventory mix in Los Angeles and investors’ thoughts on opportunity zones. First, First American analyzes how mortgage rates and wage growth have impacted housing affordability and home prices in 2019. Next, Apartment List delivers its rent report for November, noting that apartment rents have remained essentially flat since June, with year-over-year growth at 1.4%. Arbor’s Chatter blog offers a breakdown of the rental stock in Greater Los Angeles, noting that larger apartment buildings are gaining ground in the region. Then, NREI provides an interview with economist Sam Chandan who provides his outlook for the commercial real estate industry and the factors that will impact its performance in 2020. Finally, Commercial Property Executive discusses investors’ insights on opportunity zones from a recent industry conference, with many agreeing that while there are still many unknowns, there are economic and business benefits to making investments in these designated areas.

The Dynamic Forces that Re-Shaped Housing Affordability in 2019

First American – October 28

“When incomes rise, consumer house-buying power increases. When mortgage rates or nominal house prices rise, consumer house-buying power declines.”

November 2019 Rent Report

Apartment List – October 29

“Rents have now remained essentially flat since June. Year-over-year growth currently stands at 1.4 percent, just ahead of the rate from this time last year.” 

A Primer on Greater Los Angeles Rental Inventory

Arbor Chatter – October 30

“Small multifamily made up the dominant share of rental inventory in Greater Los Angeles, but large multifamily stock is rising in the region.”

Schack Institute’s Sam Chandan Talks About His Outlook for CRE Industry’s Future

NREI – October 28

“The Schack Institute’s Sam Chandan discusses the outlook for commercial real estate and how the industry is working to improve diversity.” 

Opportunity Zones Take Shape Despite Mixed Reviews

Commercial Property Executive – October 29

“At the Connect Opportunity Zone conference last week, investors described some of the exciting projects that this new economic stimulus program has set in motion.”