The Cal State Companies: Center for Real Estate Studies ¨ Cal State Properties ¨ Cal State Investment LTD Partnership
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Leading Residential Income Markets
3rd Quarter 2020
LOS
The current number of markets in the “Sell Phase” is
thirty-one, according to Eugene E. Vollucci, President of
calstatecompanies. The number of markets
in the “Buy Phase” is eleven. Mr. Vollucci states, “This quarter the three top
buy recommendations are Chattanooga, TN, Detroit, MI and Worchester, MA. The
three top sell recommendations are Modesto, CA, San Antonio, TX and New Haven, CT.
The other markets are currently in a hold phase.”
In this edition of our Market Cycles, we find the National
vacancy rates in the second quarter 2020 were 5.7 percent for rental housing
and 0.9 percent for homeowner housing. The rental vacancy rate of 5.7 percent
was 1.1 percentage points lower than the rate in the second quarter 2019 (6.8
percent) and 0.9 percentage point lower than the rate in the first quarter 2020
(6.6 percent). The homeowner vacancy rate of 0.9 percent was 0.4 percentage
points lower than the rate in the second quarter 2019 (1.3 percent) and 0.2
percentage points lower than the rate in the first quarter 2020 (1.1 percent).
Unemployment
rates were higher in August than a year earlier in 387 of the 389 metropolitan
areas and lower in 2 areas, the U.S. Bureau of Labor Statistics reported today.
A total of 37 areas had jobless rates of less than 5.0 percent and 6 areas had
rates of at least 15.0 percent. Nonfarm payroll employment decreased over the
year in 254 metropolitan areas and was essentially unchanged in 135 areas. The
national unemployment rate in August was 8.5 percent, not seasonally adjusted,
up from 3.8 percent a year earlier.
The
second quarter 2020 rental vacancy rate was higher outside Metropolitan
Statistical Areas (8.2 percent) than the rate in the suburbs (5.3 percent) and
the rate in principal cities (5.6 percent). The rental vacancy rate in
principal cities was not statistically different from the rate in the suburbs.
The rental vacancy rates inside principal cities and in the suburbs were lower
than second quarter 2019, while the rate outside MSAs was not statistically
different from the second quarter 2019 rates.
With the uncertainty of the upcoming election we
have put many of our buy/sell recommendations in Market Cycles on hold. Calstatecompanies
publication Market Cycles will keep you informed as the real estate
investment market changes. Our
quarterly newsletter gives a clear, concise analysis of over 175 different
markets across the country, and makes timely recommendations on WHERE and WHEN
to buy or sell in Pockets
of Opportunity. To purchase Market Cycles go to http://www.calstatecompanies.com
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
UTUBE: https://youtu.be/868wrjNPQFM
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