07/05/21 to 07/09/21
Welcome to the first ever Rent to Retirement Monday Weekly Real Estate Recap blog post! We will review key events that happened in the real estate market and economy in the past week.
Of course this is a real estate channel so we’ll keep everything real estate related. However, the real estate market can be impacted by many different dynamics in the economy. You can also watch The Monday Weekly Market Recap video on YouTube.
This week we’re going to touch on the employment numbers, real estate related tech companies, and commercial real estate.
WEEKLY EMPLOYMENT NUMBERS
Weekly umbers taken show that 2.7% of US workers quit their jobs in April, that’s 4 million people! According to the World Economic Forum, 41% of workers globally are considering leaving their current job this year. Why is this happening? Well, it could be your neighbor next door who bought Dogecoin at three cents and is selling it for 60 cents. Maybe it was your little brother that bought GameStop and AMC before their run-ups. Moreover, Covid-19 gave a lot of people time to sit around and think about their lives. Many of those thinkers realized they were living in the rat race. They are now looking for a better work/life balance.
This trend of job quitting also shows a trend of self-reliance as many new “unemployed” peoples are starting their own companies, starting Turo car fleets, or just driving Uber and spending more time with the kids. These new businesses will be started and operated from the home which will drive home prices up even more and increase the demand for larger spaces for home offices. In fact in Cape Coral, FL where we offer investment properties, there is a massive demand for “dens” or a 4th bedroom which often becomes a home office.
With labor in higher demand than ever as the economy reopens, employers are offering high wages and sign-on bonuses, which will increase the propensity for tenants to spend more on rent.
NEXTDOOR & INSTACART
The Nextdoor app lets neighbors connect with each other via smartphone. It is going public with a valuation of $4.3 billion. Nextdoor grew massively during the pandemic as people were forced to stay at home and figure out which neighbor could lend them a roll of toilet paper when the local Wal-Mart was cleaned out. Nextdoor reports that 33% of US households are now on Nextdoor.
Another fast growing app, Instacart, is now valued at $39 billion. Facebook executive in charge of mobile development, Fidji Simo, left the company to become the new CEO of Instacart. Again this shows us more and more people have accepted food delivery, just like amazon packages, and the new normal mode of operation. I wonder how Lay-Z-Boy stock is doing…?
COMMERCIAL REAL ESTATE
At the start of the pandemic we all heard real estate pundits screaming, “Cities are dead! Cities are dead!” However, based on the New York City and Nashville TikTok communities, no, no they’re not. However, with the rise of remote work, central business districts could be threatened. For instance, in Boston, office space makes up around 70% of real estate downtown. CEOs around the country are looking to cut down on their office space to improve their bottom line. Cities that have had smarter city planning with a healthy mix of residential, commercial, and entertainment, have come out of covid with less of a ghost town feel.
Finally let’s wrap up with the economic indicator of the 10-year treasury bond which dropped to 1.3% showing investors are still not confident that we are out of this pandemic yet. Investors still have a large appetite for safer investments like gold and real estate after this pandemic of uncertainty.
THE QUICK RUNDOWN
That’s it for this weekly real estate news and recap! I hope you all enjoyed this quick rundown and please let me know if you have any ideas on how to make this segment better and how it can make you better real estate professionals and investors!