What I’m Reading
Spreading Out: There is building anecdotal evidence that a substantial portion of surging demand for housing is due to the US undergoing another episode of average household sizes shrinking, much as it did in the 1970s. Calculated Risk
Whack a Mole: People are ricocheting between skyrocketing rents and a red-hot home market, upending old seasonal patterns as job and wage growth drive a new economic cycle. Bloomberg
Exodus: California is losing more than twice as many people to domestic migration as it was before the pandemic according to a new report from the University of California. The change is largely being driven by a drop in the number of people moving to California from other parts of the U.S. and is most acute in the high-cost San Francisco Bay Area. Wall Street Journal
Rebound: The distressed opportunity that many investors hoped for in the hospitality industry never really materialized. However, that hasn’t kept money on the sidelines for long. By the third quarter of 2021, hotels were trading at a robust pace ahead of 2019 levels, in anticipation of a stronger revival of the hospitality industry in the not-too-distant future. Bisnow
Help Wanted: Increased activity in the commercial real estate debt markets has created a labor shortage in the last several months. Globe Street
Chart of the Day
Physical store sales surged in 2021, with gains outpacing online stores.
Source: Deutsche Bank Research
No Shit: In today’s edition of Everything is a Shortage, global fertilizer demand has sent the market for manure soaring. (h/t Nicole Deermount) Financial Post
Bending the Rules: A man was kicked off a United Airlines flight because he was wearing women’s underwear as a face mask because Florida. Fox 4
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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