Kansas City property owners confront another horrible year on the horizon as government cash/cheese is unlikely to prevent one of the worst real estate revenue downturns in modern history.
Money line from a recent report . . .
"The federal stimulus package provides for $25 billion in rental assistance and extends the eviction moratorium currently in place by one month, to January 31, 2021. While preventing evictions during the winter months is a social and medical necessity, without accompanying relief for landlords this provision amounts to a congressional asset forfeiture, requiring landlords to potentially forgo four months of revenue."
Translation . . .
KANSAS CITY PROPERTY OWNERS STAND TO LOSE MILLIONS IN REVENUE THAT WILL CLOSE MANY HOUSING OPTIONS!!!
The money has to come from some where and it looks like small time property owners will shoulder the burden for a cultural shift and push for Americans to make "housing a human right" paid for by any independent operator unlucky enough to play the rental game.
Thankfully, we have the help of a local real estate insider to unpack how some of this might play out. Here's the word:
"Contrary to popular opinion. The real estate market isn't horrible right now. There are a lot of middle-to-high-income properties that are quickly turning over as buyers are quick to lock in and hope to find some kind of hedge against inflation.
It's the low-income end of the spectrum where all of the misery lies. Despite all of the protesting, evictions are still moving forward and we're seeing a mass exodus to the suburbs and other parts of the city where tenants are doubling up and pushing rental agreements to their limits . . . 2021 is going to be the year of the illegal sublet and couch surfers along with all the misery those situations create. There's still some "hope" because a lot of people are just going to be priced out of homes. Sad as that is, there will be bargains and hopefully people willing to invest in communities rather than just flipping property.
What's for sure is that if you like where you live now: Do your best to try and stay there . . . "
Accordingly, we share just a few news links that support this analysis and suggest that next year won't be brighter for the housing game . . . Check-it . . .
Developing . . .