What I’m Reading
Disconnect: COVID-19 has broken the longstanding connection between wage growth and employment levels. Typically, the rise in wages currently seen would have us at near full employment but that has not yet happened. Full Stack Economics
Dispersed: Co-working companies are making big bets on the suburbs, including outposts in malls and other non-traditional office locations as remote workers seek workspaces closer to home. New York Times
Offset: Rising mortgage rates will put pressure on affordability in 2021. However, the millennial demographic tailwind will keep demand high and rising incomes will help limit the negative impact. First American
Long Road: The Ports of LA and Long Beach are getting $5 billion in capital from a combination of the US Department of Transportation, state funds and public-private financing. However, its unclear at this point how the money will actually be spent and implementation could take years. LA Times
Target Rich: NMHC’s quarterly survey of apartment market conditions continues to show the dynamics required for market growth with market tightness, sales volume and equity financing coming in above the break-even level for the third quarter in a row. Globe Street
Chart of the Day
Loss to lease is to levels not seen since we were coming out of the Great Recession. What’s interesting to note here is that new lease rent growth is at the highest levels in history, yet in-place rent roll growth is below average compared to the last decade.
Source: RealPage
WTF
Dog Fight: A violent brawl broke out at a dog show because Florida. To be clear, this fight involved the owners and NOT the dogs. NY Post
The Science is Settled: A new study found a link between meat-free diets and poor mental health, with vegans reporting higher depression and anxiety than meat eaters. Business Insider
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
Visit us at RanchHarbor.com