What I’m Reading
Liftoff: Apartment List’s national rent survey for May showed its largest monthly jump going back to 2017 as coastal markets rebound and midsized markets that soared in 2020 show few signs of slowing down. This further backs up the story we posted yesterday about OAR picking up. After a year of flat growth (on a nationwide basis) rent inflation is here. Apartment List
Passing Lane: A study from Edge by Ascential calculated that Amazon’s gross market value will reach $631.6 billion by 2025, a compound annual growth rate (CAGR) of 14% between 2020 and 2025. That means that the e-commerce powerhouse is set to eclipse Walmart as the largest retailer in the United States. The study also projects that e-commerce will account for 29% of US retail chain sales by 2025. Business Insider
Sluggish: Over the past decade, the United States population grew at the slowest rate since the 1930s, the Census Bureau reported on Monday, a remarkable slackening that was driven by a leveling off of immigration and a declining birthrate. The South and West continued to gain population at the expense of the Northeast and Midwest. As the old saying goes, ‘demographics are destiny’ and slowing demographic growth will mean a less dynamic economy. Since native birthrate is unlikely to pick up, the best solution is more immigration. New York Times
Liquid Diet: A tidal wave of lender liquidity is targeting the single family rental market, lowering capital costs in an evolution similar to that experienced by the multi-family market decades earlier. Globe Street
Plugged In: Developers are harnessing a growing obsession with data to improve office buildings in ways that could cut costs and streamline operations, saving owners millions of dollars annually. Building owners are using data collection and artificial intelligence to help control systems like heating, lighting, air quality and even the flow of workers. While this clearly helps efficiency, it also raises security and privacy concerns among both tenants and landlords. New York Times
Chart of the Day
The homebuilding space has become far more concentrated over the past 20 years.
Source: John Burns Real Estate Consulting
WTF
Trojan Horse: An arrestee being booked into jail was busted for trying to smuggle fentanyl and Xanax in his prosthetic leg because Florida. The Smoking Gun
Letting Loose: A highly intoxicated woman was arrested for allegedly offering lap dances to strangers and asking police officers if they wanted to ‘bang’ on the sidewalk because Florida. The Daily Mail
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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