Profimex Market Review Update – November 24, 2020
Apartment Construction Delays Persist
According to a recent survey, conducted by the National Multifamily Housing Council, 57% of developer respondents said that their projects were delayed. 90% of those said that the permitting was delayed because of COVID-19. 77% of the respondents reported that the starts of their projects were significantly paused. The main reasons for the delayed starts are entitlement and professional services (67%); economic uncertainty (58%); and availability of construction financing (46%). Other issues that were highlighted in the survey are the lack of materials and the price increases, with 58% and 82% of the respondents reporting, respectively.
Moderna Vaccine for Coronavirus Is 94.5% in Preliminary Results: How This Will Affect Real Estate Investors
Recently, Pfizer and Moderna have presented their findings of the third testing phase with promising results. Both vaccines prevent a corona infection with around 95% effectivity. These news come in at the right time, with many countries currently finding themselves in the second wave and individuals becoming increasingly tired of social distancing and working from home. There are several ways how these findings could positively impact the real estate industry. For one, the vaccines must be stored in cold storage, which could result in an increasing demand for cold storage. Further, distributing the vaccine quickly could prevent more retailers from bankruptcy and help revive the damaged hospitality industry.