Rental Real Estate Industry News – October 3, 2013
In this week’s rental news headlines, see how the government shutdown could affect the real estate market, and why the consumer protection agency could be coming after multifamily. Understand the lawsuit that will legalize short-term rentals in New York City (as long as the host is present), and the changing multifamily footprint.
A few days with the spigots turned off in Washington, D.C., won’t exactly bury the needle on new home sales. But if we’re still in a shutdown 30 days from now, all bets are off, as the real estate market would take a huge hit from an extended “lights out” period for certain federal expenditures.
In the appeal, Airbnb and a host argued that the city’s law allows people to rent out homes or apartments, or parts of these spaces, for less than 30 days if the resident of the space is in the unit at the time.
The US home-ownership rate has dropped to an 18-year-low at about 65 per cent – down from a peak of 70 per cent before the crash – and economists predict it’s going to fall further. Some industry watchers are now asking if the US, after a multi-decade push towards home ownership, is shifting towards being a nation of renters.
Average household size in the U.S. is 2.63 person per dwelling. Divide the population of 314 million people by 2.63 persons equals 119,391,634 households. Roughly 40 million of these are rental households. We are on our way to finding out how many people reside in just multifamily.
The Consumer Financial Protection Bureau (CFPB) has amassed more resources and aggressively expanded its regulatory authority over new business sectors. Sooner rather than later, the multifamily industry will become its focus.