Source: US Bureau of Labor Statistics & Federal Reserve Bank of St. Louis
But labor force participation has yet to recover to pre-Great Recession levels as highlighted in the following chart from Hoya Capital. This suggests that the USA economy has some ways to go before it has accomplished true “full employment.”
Homebuilders and REITs dipped, pressured by an uptick in interest rates highlighted by a sudden surge in the 10-Year bond yield. Homebuilders have lost nearly a quarter of their market value so far this year.
Industrial commercial real estate has experienced a great run over the last few years, and its performance didn’t slow down during the first half. Warehouses and distribution centers are getting an extra push from two rapidly growing industries: e-commerce and third-party logistics companies (3PLs).
Vertical manufacturing—which places large, floorplate-spanning manufacturing zones at the base of new buildings, with packaging and offices above—will be part of the next phase of development at this former New York City military base.
More and more, larger companies that don’t want to be locked into decades-long leases are considering the upsides of flexible spaces. In August, WeWork launched HQ by WeWork to serve the needs of medium-sized businesses. And other giants (think: Amazon, Verizon, and more) have already begun turning to co-working spaces to house entire divisions of their companies
While there is little doubt that e-commerce and demographic trends continue to weaken the outlook for lower-productivity retail assets, brick and mortar stores continue to be the most efficient distribution channel, for now.
After a half-decade of building rental apartments, developers are switching gears to construct for-sale condo projects, which should open up more homeownership options that are less expensive than single-family homes but still not cheap.
One example is Opendoor, a startup that flips homes that attracted attention in June when it announced it had raised $325 million from a long list of venture capitalists. The financing valued the 4-year-old company at more than $2 billion.
Attitudes against real estate developers lead to more regulation, punishing developers, which winds up thwarting housing affordability. UCLA researchers Paavo Monkeonen and Michael Manville find that perceived harm is just part of story. A more powerful motivator for opposing new housing may be the drive to punish someone else–namely, developers.
Commuting by public transit for higher income persons has hit an all-time high in the Seattle metro area, but the percentage is highest in the greater New York area, followed by the Bay Area, Chicagoland, greater DC and Boston.