What I’m Reading
Unfinished Business: A new ruling in a Georgia lawsuit between a landlord and tenant found that that by accepting reduced and irregular payments for an extended period, plaintiff Atlanta Life Financial group had created a quasi-new agreement. It ruled that by accepting 16 months of initially reduced rent, and then non-payments outside the scope of the initial contractual agreement, the landlord had waived its rights to collect rent. In other words, accepting partial rent payments could be a major landlord mistake (h/t Steve Sims). Globe Street
Out of Balance: The Wall Street Journal put together an excellent graphic summary of the federal minimum wage and its buying power over the years. IMO, a lot of the issue here has to do with regional inequality, which has skyrocketed in recent decades. Back in the 1960s, the difference between living in San Jose or Toledo was relatively small and a federal minimum wage could be set at a level that made sense in both locales. Today, that is not the case at all. (h/t Taylor Grant) Wall Street Journal
Dispersion: Remote work is changing America’s urban geography. Smaller cities and communities are turning into ‘Zoom towns’ and competing with coastal hubs as workers move to find more space and lower costs. Wall Street Journal
Divergence: in America’s big metros, home prices and rents are going in opposite directions. Home values increased in all of the 100 largest metros in the U.S., according to Zillow data. But in some of the richest cities—San Jose; Seattle; New York; Boston; Austin; San Francisco; Washington, D.C.; Los Angeles; and Chicago—rent prices fell, many by double-digit percentages. This is likely due to demographics – which favor buying, interest rates, and supply. The Atlantic
Tectonic Shift: COVID 19 changed the way that Americans travel. To allocate new infrastructure spending wisely, legislators need to understand how habits have changed and determine whether or not these changes are permanent. City Journal
Chart of the Day
Despite the occupancy concerns, headlines, and spiking sublease availability loans backed by office buildings are still performing relatively well. The takeaway? It can be very beneficial to have long-term leases.
Source: Mortgage Bankers Association
WTF
Mistaken Identity: A zoo tried to pass a Rottweiler off as a wolf because China. NY Post
Hiding Out: A woman was bitten on the butt when she sat down on an outhouse toilet by a bear that was hiding out in said toilet because Alaska. Anchorage Daily News
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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