Jerome Powell Is Going To Love This: Rents Fell For The First Time Since The Onset Of COVID-19
Portfolio Pulse from AJ Fabino
Rental prices in the US have dropped for the first time since the onset of the COVID-19 pandemic, with national median rents for 0-2 bedrooms in the 50 largest metropolitan areas dipping 0.5% in May. Despite relief for renters, affordability remains a challenge. Commercial real estate stocks, including Vornado Realty Trust (NYSE:VNO) and SL Green Realty Corp (NYSE:SLG), are seeing a rally.
June 26, 2023 | 4:48 pm
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POSITIVE IMPACT
SL Green Realty Corp (NYSE:SLG) is experiencing a rally in its stock price as rental prices in the US drop for the first time since the COVID-19 pandemic.
The decrease in rental prices is a positive development for the commercial real estate sector, which has been facing challenges due to the pandemic. As rental prices decrease, landlords may be able to attract more tenants, reducing the risk of longer vacancies. This is likely to have a positive impact on SLG's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Vornado Realty Trust (NYSE:VNO) is seeing a rally, with its stock up 9.5% on Monday, as rental prices in the US drop for the first time since the COVID-19 pandemic.
The drop in rental prices is a positive sign for the commercial real estate sector, which has been facing challenges due to the pandemic. As rental prices decrease, landlords may be able to attract more tenants, reducing the risk of longer vacancies. This is likely to have a positive impact on VNO's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80