What I’m Reading
Leading the Pack: Millennials were supposed to be the generation that spurned home ownership. Instead, they now make up over half of all home purchase applications as the group enters prime household formation years. The generation accounted for 67% of first-time home purchase mortgage applications and 37% of repeat-purchase applications in the first eight months of 2021. Economists expect the trend to continue for years. Wall Street Journal
Gaining Ground: Single family rentals are approaching cap rate parity with traditional multifamily. The trend should continue in 2022. Globe Street
Everything Must Go: Sears’ time as a retailer appears numbered. However, it still has some very valuable real estate that it has been selling to investors. Many former stores are being overhauled for new retailers, but developers are installing high-end apartments, cutting-edge classrooms and even labs at sites around the country. New York Times
Step in the Right Direction: In early 2020 I had been hopeful that one silver lining of the pandemic would be the death open office plans. That doesn’t appear to be in the cards but designs are shifting somewhat to allow for more private spaces. Commercial Observer
Getting Real: Treasury investors are losing more money than they have in four decades, once inflation is taken into account. Bloomberg
Chart of the Day
The wage growth for job switchers vs. job stayers is starting to look like the apartment rent charts for renewals versus trade outs earlier this year.
Source: John Burns Real Estate Consulting
WTF
Perfect Crime: Moments after robbing a Wells Fargo branch in Delaware, a man deposited some of the stolen loot in an ATM outside the bank’s front door, according to police who arrested the suspect on a felony charge. The Smoking Gun
Shushed: A woman told deputies she gave her boyfriend “just enough” poison in his lemonade to shut him up and then called law enforcement “so he wouldn’t die” because Florida. The Tampa Bay Times
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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