What I’m Reading
Back to School: The first half of 2020 was all about a shortage of demand for goods and services. The experience of 2021 has been exactly the opposite – demand is booming, yet supply is limited. The current labor shortage that American businesses are facing is playing a large role. Unfortunately, the labor situation will remain challenging until schools are fully reopened. This is one of many reasons – scientific evidence included – that school openings should have already happened. The New York Times
A Tale of Two Markets: Office lease renewals are all over the place according to a new study by Moody’s, with sunbelt markets performing dramatically better than gateway ones. Phoenix reported lease renewal rate of 79%, with Norfolk and Atlanta following behind at 75% and 74%, respectively. Meanwhile, NYC showed a 40% renewal rate and Chicago clocked in at 50%. Globe Street
Easing Up: The American Council of Life Insurers wants the National Association of Insurance Commissioners to cut the charge life insurers are now required to apply to the value of the real estate they own to 11%, from 15%. This would result in an increase in building value on the books of insurers and would likely result in larger allocations to commercial real estate. Think Advisor
About Time: The biggest percentage gains in real wealth in recent years have gone to those in the bottom 50% of wealth distribution. A lot of this is due to rapid price appreciation at the lower end of the housing market as well as late-cycle wage gains which have gotten a boost from both minimum wage hikes and deficit spending. Still a long ways to go but this is a positive development. Bloomberg
Sweet Spot: Home Depot has been a massive beneficiary of the current housing boom and renovation frenzy of the past year. Housing Wire
Chart of the Day
Amazed that this wasn’t higher in recent years.
Source: JBREC
WTF
Let it Fly: A woman awaiting trial in the murder of her salon co-worker is facing new charges after authorities said she threw feces on corrections officers at the jail because Florida. News 4 Jax
Gateway Drug: A woman is facing a felony child neglect charge after police found cocaine and a cut straw atop her three-year-old son’s copy of Dr. Seuss’s “The Cat in the Hat” because Florida. The Smoking Gun
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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