Currently Reading

How the Recovery May Further Expose America’s Wealth Gap

Advertisement

How the Recovery May Further Expose America’s Wealth Gap


June 11, 2020
Couple paying bills
By ivanko80

The housing market is rebounding with unexpected strength, but as stimulus support measures come to an end, securing housing will be one more arena where America’s wealth gap will rear its head, according to Forbes. New home building and luxury apartments are not likely to be affected by the end of rent and mortgage forbearance, halt to evictions, and unemployment benefits. But those who are teetering on the edge of bankruptcy may find themselves unable to pay rent or mortgages in the coming months, leading to an increase in foreclosures and missed rent payments. And small business owners who were relying on small business loan programs to get through the pandemic may find that they do not have the resources to continue. In order to keep people renting during this economic strife, Forbes reports that apartment operators may offer incentives such as two to three months of free rent.

There is an old saying in the real estate development business: when a novice makes a mistake, it’s because they missed the nuances of the market; when a pro makes a mistake, it’s because they missed the obvious. Some participants in the residential sector have been applauding the resilience of homebuyer demand and rent collections while looking over their shoulder, bracing for a sudden slap in the face when the government “stimulus” winds down.

Is that slap really obvious, and real? And if so, will it be felt by the entire housing market, or only at certain levels of the market? We need to look a little deeper, because very little is obvious in this environment.

All agree that steps were taken very quickly to inject money into the economy and to provide relief for people with mortgages. These measures have included:

Read More
 

Related Stories

Market Data + Trends

Case-Shiller: September Home Prices Break 6-Year High

Realtor.com warns that prospective homebuyers may not find a better deal in the future as home prices continue their climb. According to the S…

Economics

As Mortgage Rates Lower, Millions of Americans Can Save Big

With mortgage rates down to a new low, a record 19.4 million Americans could save hundreds per month. The average interest rate for Freddie Mac’s…

Market Data + Trends

Mortgage Demand Increases for First Time This Month

After a brief pause for the presidential election, mortgage applications are now back to booming. For the week, mortgage applications to purchase…

Advertisement

More in Category




Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.