What I’m Reading
Turning Japanese: Not that long ago, global overpopulation was a popular fear. That is no longer the case and global birth trends point towards the opposite, especially in the developed world. The long term aging trend will have many implications, not the least of which is deflationary pressure. Abnormal Returns
IMO, demographic trends are likely a decent starting point when explaining why interest rates have been falling for the past 40+ years. Aging populations are a headwind to growth as fewer workers must support a larger number of retirees. The trend also increases demand for income generating investments.
Sweet Spot: A combination of short term supply pressures, coupled with long term demand trends has apartment rents – especially in the Southeast, Southwest and Mountain West – soaring. Yardi Matrix
Cramped: Roughly 35% of renters are looking to upsize this year, with most of that group doing so in order to find an extra bedroom to use as an office. RentCafe
The Great Migration: In a new report, Redfin says that 31.1% of its users looked to move to a different metro in the second quarter. That is an increase from 27.6% during the same period last year. Its still early but looking like the pandemic-spurred trend of people moving to more affordable parts of the country has staying power. Globe Street
Under Pressure: Some Senate Democrats on the Finance Committee are looking to scale back deductions to pass through businesses from the 2017 tax reform. The 20% deduction for pass throughs has benefitted real estate investors, among others. However, the rollback effort will face substantial resistance on both sides of the aisle and its passage is currently doubtful. The Real Deal
Blink of an Eye: The U.S. officially climbed out of a recession in April 2020, concluding a pandemic-driven economic contraction that lasted two months, making it the shortest on record. National Bureau of Economic Research
Chart of the Day
They’re going to need a new Y-Axis.
Source
Source: University of Michigan Consumer Confidence Survey
WTF
Peeping Tom: A man was caught on surveillance camera taking pictures up a woman’s dress with his cell phone because Florida. Local 10
Nightmare Fuel: A man was bitten by his neighbor’s 5+ foot pet python while sitting on the toilet. Apparently the snake had escaped and slithered through the drain pipes. Associated Press
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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