COVID-19 News Round-up for May 22

Credit: BKD

Economic News 
Experts Fear Credit Infection 
Jim Belfiore of Belfiore Real Estate Consulting and other experts are warning the impacts of unemployment and reduced credit availability could result in a “credit infection” that will affect buyers’ ability to purchase new homes. “If unemployment rises further, as it’s expected to, more people are missing their rent and mortgage payments and credit card delinquencies are rising,” Belfiore said. “We’re going to have a bigger infection on our hands. It’s going to infect long term the housing demand.” (Source: Phoenix Business Journal) 

Pandemic Could Continue Rough Times for Senior Housing 

The decrease in seniors moving into elderly homes because of the coronavirus could result in higher leverage expectations over the next 12-24 months and rating downgrades in the REIT sector, according to Fitch Ratings. REITs with senior housing portfolios may experience monthly occupancy declines in the 200400 basis point range. (Source: 

Pandemic Tests Self-Storage’s ‘Recession-Resistant’ Status 

The self-storage industry’s status as a “recession-resistant business” is being put to the test during the coronavirus pandemic. But despite a sour economy, facility investors and operators will likely benefit in the coming months. (Source: National Real Estate Investor) 

Why Multifamily Rents are Holding Up Better than Expected 

Multifamily rental payments have held up far better than many industry experts expected amid the economic wreckage caused by the spread of the novel coronavirus. 87.7 percent of apartment households made full or partial rent payments by May 13thNational Multifamily Housing Council offered speculation and insights as to why in a May 19th report. (Source: National Real Estate Investor) 
ISM Survey Estimates Pandemic Impact on Manufacturing 
Manufacturing revenue for 2020 is expected to decrease, on average, by 10.3 percent. This is 15.1 percentage points lower than the 4.8 percent increase forecast in December 2019 for all of 2020, and 12.2 percentage points lower than the 1.9 percent increase reported for 2019 over 2018. 18 percent of respondents say revenues for 2020 will increase 10.6 percent, on average, over 2019. Conversely, 58 percent say their revenues will decrease, on average, 21.2 percent, and the remaining 24 percent indicate no change. (Source: AZ Big Media) 
Return Stronger Website Launched 
The Arizona Commerce Authority, in partnership with the state’s workforce development network ARIZONA@WORKhas launched The Return Stronger Upskilling website, designed to provide workers who are no longer employed due to the COVID-19 pandemic with a central place to learn about and leverage the many no-cost training opportunities available to them. (Source: Arizona Commerce Authority) 
Municipal Operations Overview Update 
On May 20thRose Law Group posted an update to its list of schedules and availabilities for government offices, planning & development services and public meetings around Maricopa and Pinal counties. (Source: Rose Law Group Reporter) 

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