Quick Programming Note: This will be the only post for the week of July 4th since I have better things to do than write a blog on the 4th and you have better things to do than read one on the day after our nation’s birthday. Enjoy the holiday with your family and friends and we’ll see you next week!
Must Read: In a landmark victory for property rights, the Supreme Court ruled in a 5-4 vote that developers and landowners may go directly to federal court and seek compensation for a “taking” of their property. Previously, land owners could not sue in federal court until they had sought and been denied compensation from local officials or a state agency. The decision is likely to have its greatest impact in California where strict regulations for development in cities and along the coast, has led to property owners repeatedly claiming that these regulations and other zoning rules have the effect of “taking” their property.
Windfall: The White House is considering an executive order to index capital gains tax to inflation. It goes without saying that this would face a legal challenge and would also be a huge positive for the real estate industry if it holds up.
Inverse: In a major sign of deflation, some German mortgage bonds are now trading at NEGATIVE YIELDS.
Incentivized Behavior: Its not at all difficult to see the impact of the capping of SALT deductions on US migration patterns. However, high-tax states are apparently in denial and continue to propose increases which will only make matters worse for them.
Rise of the Machines: 5G networks are going to enable even more technology adoption in warehouses by reducing latency, improving computing and offering a digital infrastructure to support mass adoption of the Internet of Things (IoT) at a level that 4G networks could not handle. But See: The roll-out of 5G networks will be challenging at best thanks to the massive amount of infrastructure required.
Paying Up: As institutional investors have “discovered” the student housing sector, prices have pushed upwards to record levels. But See: CMBS loan defaults are starting to rise in the student housing sector.
Deficit: A new report from the Harvard Joint Center for Housing Studies shows that housing supply is falling far short of what is needed in the US, putting pressure on affordability. See Also: Purchasing a median-priced home in the U.S. is a financial stretch for Americans in the majority of markets despite slowing growth in real estate prices, falling mortgage rates and rising wages.
Glut: Miami underwent a condo development boom but now there are no longer enough wealthy foreign buyers moving there to purchase them. However, developers are hoping that Americans fleeing high-tax states will give the market a boost. (h/t Steve Sims)
Upswing: American suburbs are swelling again as rising urban housing costs have led to an exodus of young people from cities – and its often more than the ‘burbs can handle, putting strains on services.
I Can’t Even: Wherein the Financial Times un-ironically asks if Bitcoin has joined the ranks of classic safe haven assets.
Time To Raise Interest Rates: A sneaker exchange website has raised $160MM in VC capital and is now valued at $1 billion. I can’t believe that I just typed that.
This is Art: This Buzzfeed article about millennials and Charmin’s giant roll of toilet paper known as the Forever Roll deserves a Pulitzer.
Chart of the Day
Amazon is now its own biggest shipper.
Score One For Darwin: Selfies are now five times more deadly than shark attacks because millennials.
Who Could Have Known? A man learned the hard way that mixing toxic pufferfish liver and cocaine is a horrible idea because Florida.
I’ve Been Waiting for Someone to Do This: Arby’s is trolling vegans and Impossible Burger fans by making ‘carrots’ that are made entirely of meat.
Frivolous: A man is suing fast food chain Hardees for only giving him two hash rounds with his breakfast order, claiming that his civil rights had been violated.
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