The United States has now recorded more than 5 million cases of COVID-19<\/strong>, but Republicans and Democrats point to different explanations for the increase. Most Republicans and Republican-leaning independents (6 in 10) say the primary reason for the rise is that more people are being tested. <\/strong>\u00a0By contrast, 80% of Democrats and Democratic-leaning independents say the primary reason for the increase is new infections, not just more tests.<\/strong><\/p>\n And why is that important [Insights Collective] \u2026<\/strong> Political polarization has heightened as we head into November, that\u2019s important to remember because resorts and destinations have been politically agnostic \u2013 however visitors are not. <\/strong>Earlier research found Democrats were far more likely than Republicans to say they are concerned about personally contracting or spreading COVID-19.\u00a0 The same survey found that Republicans have become less concerned about contracting or spreading the virus. \u00a0Our data suggests that while tourism leaders and their boards may feel confidently about reopening, source markets may not be receptive to reopening messages because they are of a different political mindset.<\/strong><\/p>\n <\/p>\n New data shows the extended stay sector is holding up much better than other hotel types.<\/strong>\u00a0 Major hotel companies reported declines of more than 80 percent in revenue per room, with occupancy levels below 25 percent as of July 1.\u00a0 The second quarter results for Extended Stay America saw only a 28.7 percent revenue decline, with occupancy at nearly 70 percent.\u00a0 This still resulted in a loss, but a minor one of less than $9 million for a quarter that included the worst period of pandemic so far.<\/p>\n And why is that important [Insights Collective] \u2026 <\/strong>This sectors\u2019 good news is important to track, as hotels are increasingly looking for new segments in need of a room.\u00a0 The extended stay sector is performing in a similar fashion to the vacation rental sector \u2013 both sectors are outperforming hotels.<\/strong>\u00a0 Hotel brands have tried to pivot. Previously the pivot was towards repurposing hotels for homeless solutions, and in a new example, the University of Pittsburgh has completely dedicated one on-campus hotel to freshman students in order to cut down on housing density elsewhere.\u00a0 Several hotel chains are working with universities to take similar steps and alleviate low occupancy rates. These unconventional moves will soon be the norm, as businesses, resorts and destinations are forced to pivot and reinvent themselves \u2013 and their markets.<\/strong>\u00a0 Those that haven\u2019t yet done so will face an uphill battle when the time comes.<\/p>\n New data shows that residential mortgage delinquency rates are climbing.<\/strong>\u00a0 On a national level, 7.3 percent of mortgages were 30 days past due or in foreclosure in May, more than double the 3.6 percent rate seen in May of the previous year.\u00a0 The sharpest rise was seen in mortgages between 60 and 90 days past due, which increased four-fold in annual terms. Also, the percentage of apartment tenants paying rent on time is declining.<\/strong>\u00a0 An industry tracker found that 79.3 percent of apartment households were current on rent as of August 6, a drop of 1.9 percent from the prior month.\u00a0 This represents an additional 223,000 households that are delinquent.<\/p>\n And why is that important [Insights Collective] \u2026 <\/strong>Those are two important indicators, because they contrast greatly with measures of home builder confidence <\/strong>which now matches an all-time high, led by a combination of strong demand for homes and low interest rates.\u00a0 These mixed signals make for a cloudy crystal ball and serve as a reminder not to take any one indicator as the penultimate measure of the economy.\u00a0 Implications for city budgets are numerous if delinquency leads to foreclosure, as property tax bills often go unpaid. In addition to residential mortgage delinquencies, hotel property mortgages are also up dramatically.\u00a0 The City of Beaumont, Texas is trying to be proactive \u2013 having started the process to privatize a major entertainment complex, Ford Park \u2013 home of the South Texas State Fair for 20 years.<\/strong> At $7 million in annual upkeep, a sale to private owners is forthcoming \u2013 and a reduction in annual expenses will be celebrated. We wouldn\u2019t be surprised to see more cities unload facilities to the private sector \u2013 wiping the books of the annual expense that came with their development.<\/p>\nREOPENING<\/h2>\n
\nECONOMY<\/h2>\n
\nNEW REALITIES<\/h2>\n
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