Delta variant hits air travel, a look at pedestrian malls, building materials prices rise, California's Senate Bill 9, and a conservation easement to avoid
In Today's News
U.S. Airlines Warn of Dimming Outlook Amid Delta Variant
COVID-19 infections have surged again as the more contagious delta variant spread, derailing momentum in leisure travel in August and snuffing out hope for a quick return to business travel this fall, The Wall Street Journal reports today.
The Millionacres takeaway: The airlines aren't alone, but they're also expressing optimism for a rebound once this surge abates. Perhaps it will be more long lasting this time.
Lessons From the Rise and Fall of the Pedestrian Mall
One of the few bright spots of the pandemic was a renewed appreciation of the importance of outdoor public space for social interaction. In many cities around the world, popular streets were closed to vehicular traffic to create room for recreation and dining. Local officials may soon need to decide whether to revert to the status quo or make the often-popular pedestrianized corridors permanent.
The Millionacres takeaway: This insightful piece from Bloomberg CityLab can alert real estate investors to changes that could be taking place, or already have, in their own cities that could affect the properties they own.
Building Materials Prices: Large Increases Year to Date
Although the recent drop in softwood lumber prices since mid-May is helping bring costs down (after having driven them up drastically earlier in the year), the decline has been offset by large increases in the prices of several other building material products, the National Association of Home Builders reports today.
The Millionacres takeaway: Rising prices are occurring in many sectors of the economy, and in this case, blunt any expectations that falling lumber prices might ease upward pressure on new construction costs.
Today on Millionacres
Will Senate Bill 9 Change California Real Estate Forever?
California's Senate Bill 9 would do away with zoning for single-family homes only. Single-family homes could still exist in California and could still be built, but this legislation would allow multifamily and subdivided lots to coexist in what's always been single-family home country.
The Millionacres takeaway: Our Laura Agadoni says this bill is highly controversial and likely to pass, and if it does, it could open the doors for a lot of new investment and even make living in the Golden State more affordable.
All Real Estate Investors Should Know About this Tax Issue
Conservation easements are a popular way to reduce taxes and help the environment, but one form of them is attracting a lot of attention from lawmakers and the IRS: syndicated conservation easements.
The Millionacres takeaway: Our Lea Uradu, an attorney who focuses on tax law, says that investors interested in adding a conservation easement to their investment portfolio should do their homework carefully, consult with a competent advisor, and avoid syndicated conservation easements.