What I’m Reading
Spread Out: In a substantial shift from the past decade, more Americans now say that they prefer a community with big houses even if local amenities are farther away. Part of this is due to Millennial household formation and part is due to the pandemic. However, the increased suburban preference is evident across age, ethnic, political and education levels. Pew Research
Pile Up: A record 44 container ships are stuck off the coast of Southern California, waiting for access to the country’s two largest ports. In related (anecdotal) news, I ordered new soccer cleats for my kids yesterday. The earliest delivery options on Amazon were for late September. Get that Christmas shopping done early this year…. Yahoo News
Dirty Secret: Canada’s tax agency has released details of a secret investigation by its auditors linking millionaire migration and suspected tax cheating to high home prices in Vancouver, now one of the world’s most unaffordable cities, after taking five years to fulfil a freedom-of-information request to hand over the material. The study found that rich migrants made more than 90 per cent of luxury purchases in two Vancouver municipalities while declaring refugee-level incomes. So, basically an entire economy based on money laundering. South China Morning Post
Disconnect: There used to be a fairly direct relationship between population growth and economic growth in cities. However, the rise of technology over the past 50 years has made economic productivity possible without vast numbers of workers, creating an environment where cities can outpace average per capital GDP gains yet actually lose population. Bloomberg
Cash is King: A third of all U.S. single-family homes and condominiums sold in the second quarter were purchased with cash, up from 20.6 percent a year prior. There are some states where cash buyers account for a majority of transactions. This is a massive problem for people trying to purchase a starter home. The Real Deal
Topping Out? The office subleasing market may now be nearing its peak. While space continued to be added to the market in Q2 2021, it was at the slowest rate since the pandemic began. Globe Street
Chart of the Day
Household formation bounced back massively starting in the second half of 2020. Now it is well above pre-COVID levels. This is a reflection of strong housing demographics taking over after the initial pandemic shock. It also helps explain why both the for sale and for rent markets are crazy right now.
Source: Apartment List
WTF
Shootout Part I: A man who was unhappy with his haircut pulled a gun on his barber and was subsequently shot by said barber because Florida. Florida Today
Shootout Part II: A man and a woman were shot after an altercation between people on a boat and jet skis on a river because Florida. WFTV9
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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