Real Estate & Construction News Roundup (3/20/24) – Construction Backlog Falls, National Association of Realtors Settle Litigation, and Commerical Real Estate Market’s Effect on City Cuts
In our latest roundup, bad loans outweigh loss reserves at top six U.S. banks, the FCC announces a proposed rule aimed at “bulk billing,” office-to-multifamily conversion projects grow in major metro cities, and more!
- The National Association of Realtors has agreed to settle litigation that accused them of artificially inflating real estate commissions – a major decision that could reshape the housing market for buyers, sellers and agents. (Rachel Siegel, The Washington Post)
- An NYU professor considers the positives and negatives of cities cutting services or raising other kinds of taxes to offset the continued faltering of the commercial real estate market. (Alan Rappeport, The New York Times)
- Construction backlog fell in February for every size of contractor except for those with under $30 million in annual revenue, while, over the past year, the largest contractors – those with greater than $50 million in revenue – have experienced the greatest decline in backlog. (Sebastian Obando, Construction Dive).
- After months of trying to acquire Wyndham Hotels & Resorts, Choice Hotels International is walking away from the proposed deal after support for its offer fell flat and with industry professionals – and Senator Elizabeth Warren – expressing concern that the merger would create a monopoly. (Jenna Walters, Hotel Dive)
- The Federal Communications Commission announced a proposed rule that, if approved, would prevent housing or other providers from entering “bulk billing” arrangements with internet, cable or satellite companies. (Mary Salmonsen, Multifamily Dive)
- Between 2021 and 2024, office-to-multifamily conversion ballooned from 12,100 units in progress to well over 55,000, with many of these projects being found in major metropolitan areas. (Mary Salmonsen, Multifamily Dive)
- The six largest U.S. banks – JP Morgan, Bank of America, Wells Fargo, Citi, Goldman Sachs and Morgan Stanley – now have just 90 cents set aside per dollar of commercial real estate debt on which a borrower is 30 days late, raising concerns about the possible consequences of a further deterioration in the sector. (Chris Dorrell, Yahoo)
