Landmark Links March 15th – Opportunity Knocks

Bear knocking

Must Read: Develop, LLC and Esri have put together an analytics map that assesses and ranks nearly 8,000 opportunity zones across the US based upon metrics like population growth rate, median household income, retail sales, median home value, bachelor’s degree rate and unemployment rate.  It also overlays hospitals and universities.  I spent a while going through this yesterday and its fascinating.

Economy

Holding Off: Having kids generally makes people happy.  Paying for them, not so much.  The problem is that the cost of raising a child keeps going up and population growth is falling.

Validated: The latest economic data releases show low inflation and softer economic growth, verifying the Federal Reserve’s rate hike pause.

Commercial

An Abundance of Caution: There is still plenty of capital available for commercial real estate but investors are increasingly underwriting deals with more conservative assumptions in the late stage of the cycle.

Bouncing Back: US construction spending notched its largest increase in 9 months in January.

Decoupled?  Massive demand and less use of leverage by institutional real estate investors has allowed the cap rate/borrowing cost correlation to weaken in this cycle. (h/t Steve Sims)

Residential

Run Up: Home owners in the United States now have more home equity than outstanding mortgage debt.

Not As It Seems?  Yes, tech IPOs are likely to create a lot of new wealth in San Francisco this year.  However, a closer look at the finances of your average employee, coupled with the incredibly high cost of a Bay Area home reveals that the predicted buying binge may not materialize.

Don’t Call It A Comeback: After being left for dead a few years back, the home ownership rate is staging a comeback.

Profiles

No Good Options: The average American can’t afford to buy green when environmentally friendly products are priced at luxury levels.

Crackdown: New York and Connecticut have attempted workarounds that would allow residents to bypass SALT deductions in last year’s tax reform law.  The IRS is fighting back.

Get in Line: Wealthy people are flocking to Miami for the tax breaks, and it’s creating massive waiting lists at the area’s elite private schools.

Chart of the Day

This chart is nuts until you read the small print.

Source: Krueger & Catalano

WTF

It’s Always the Ones You Least Expect: A rapper who goes by Selfmade Kash who wears a jewel encrusted credit card around his neck and bragged about credit card theft in songs was arrested and charged with…….credit card theft.

Goals: A woman got wasted after pounding a 6-pack of beer in a Target dressing room before being arrested for shoplifting.  I feel like any parent with young kids can relate to this (except for the shoplifting part).

Surprise Ending: A fox who broke into a hen house in France was trapped inside and killed by the chickens.

Landmark Links – A candid look at the economy, real estate, and other things sometimes related.

Visit us at Landmarkcapitaladvisors.com

Landmark Links March 15th – Opportunity Knocks

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