What I’m Reading
Signs of Life: “Multifamily concessions rose sharply in the spring and fall of 2020 as multifamily demand waned due to job losses and social distancing measures. The impact was felt most in high-cost gateway markets, while secondary and tertiary markets benefited from the shift in demand. Concessions declined in the fourth quarter, raising possibilities that demand is recovering or rents are being reset.” What is interesting in multifamily right now is that it is basically two markets – expensive gateway cities that are performing terribly and have massive concessions and everywhere else where performance is pretty good. Hopefully this means that the big cities are turning the corner. Yardi Matrix
Optimistic: While 1031 investors are concerned about possible elimination of the tax break, those who focus on Opportunity Zones are more optimistic about potential Biden Administration reforms. Bisnow
Double Whammy: The local hotel market is typically one of the biggest beneficiaries of a city hosting the Super Bowl. However, a combination of COVID and having a host team playing in the game have thrown cold water all over Tampa area hotel owners’ high expectations. Wall Street Journal
Pent Up: COVID has spurred wealthy millennials to leave rentals and buy homes for the first time. However, they are often million dollar pads rather than traditional starters. This is dispelling two myths: 1) that millennials are doomed to rent forever and 2) that they are all broke. Turns out that a not-insignificant number have been renting by choice and saving up large down-payments all along. Business Insider
Bailed Out: When the pandemic hit, banks cut credit to businesses that suddenly looked risky. Investors happily stepped in, buying their stocks and bonds and possibly saving some of them from ruin. New York Times
Cruise Control: A new generation of autonomous truck technology is emerging, funded in part by North American trucking companies, truck manufacturers, and even railroads and driven by shipper demand for trucking capacity and carrier need for truck drivers and improved safety. JOC.com
Chart of the Day.
It took 15 years for construction spending to reach its prior peak in nominal terms.
Source: Calculated Risk Blog
WTF
Subtle: A man who called 911 twice to find a ride home was found to have a tattoo of the state of Florida on his head when he was arrested because, well, Florida. The Smoking Gun
Exposed: Six percent of respondents in a new survey said that they will be watching the Super Bowl naked this year but did not provide clarity as to whether this will be a group activity. Bandt.com
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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