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Biden goes big on infrastructure, pending home sales slip year over year, big firms dumping office space, behold the "untethered class," and now they're printing houses, for real.
In Today's News
The New York Times says [subscription required] the president's plan, which he begins selling today, would fix 20,000 miles of roads and 10,000 bridges, while also addressing climate change and racial inequities and raising corporate taxes.
The Millionacres takeaway: If it comes to fruition, this would be the largest investment in our nation's decaying infrastructure since the 1960s, not long after the U.S. first began building interstate highways. Highways lead to and from homes, commercial real estate, and everything else we do, and that's just for starters about how much infrastructure matters. Taxes aren't fun, but someone has to pay for this stuff.
The National Association of Realtors reported today that pending home sales decreased by 10.6% in February, with all regions showing a decline, and after eight consecutive months of year-over-year gains, pending home sales decreased by 0.5% from a year ago. Plus, the trade group's Pending Home Sales Index fell below 100 in the Northeast and West. An index of 100 is equivalent to the level of pending sales in 2001.
The Millionacres takeaway: This is kind of a "best of times, worst of times" saga unfolding here. Supply continues to seriously lag demand, flipping some of these metrics in the red while driving up prices to record levels. It's a great time to sell. For homebuying, not so much.
This Wall Street Journal article [subscription required] provides some specifics on how the rise of remote work means demand for office space could be permanently lower for some major companies.
The Millionacres takeaway: In the meantime, you can just as easily find equally well-researched and -reasoned arguments on why the office space business is recovering. For real estate investors, it's a reminder that not all markets are created equal. Pay attention to the details of what's happening in yours.
Today on Millionacres
Behold the arrival of the "untethered class," a new label for that group of people who can live wherever they want because they can work wherever they are.
The Millionacres takeaway: An Apartment List report coins a new term while pointing out where people are moving, probably because of the pandemic. Where they're heading and what they're leaving behind can provide an opportunity for alert investors.
The California desert will host the first-ever 3D-printed housing community. The developer, Palari Group, is planning to build 15 sustainability sourced, 3D-printed homes on a five-acre plot in Rancho Mirage, near Palm Springs.
The Millionacres takeaway: Our Jeff Piltch concludes that 3D printing and modular technologies have converged and into a combination of sustainability, cost savings, and efficiency that will be hard for real estate investors to ignore as they consider the future of housing development.
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