A tough jobs report on a lot of levels, an argument for temporary big city downturns, rents are falling but not everywhere, a national mask mandate, and opportunity zones in 2021.
In Today’s News
A Jobs Report Without Silver Linings
A New York Times report about today’s jobs report said it wasn’t so much the declining new jobs created that’s so gloomy; it’s that the report offers some indication that temporary unemployment is becoming more permanent for many.
Why it matters: The unemployment rate is falling because fewer people are looking for work, The Times adds, a classic conundrum in a struggling economy. The surging coronavirus’s impact of so much joblessness on residential foreclosures and retail business closures won’t be pretty. A booster shot in the form of a widely administered vaccine can’t come soon enough.
Big Cities are Cycling Down Now But It’s Temporary
Some capital markets participants point to New York as a problem now, as it has been in the past. Each time, cities have sprung back.
Why it matters: New York City is a good example of how cities go through cycles, and right now, one Big Apple doesn’t spoil the whole bunch, either. This GlobeSt.com report is an encouraging read for investors and everyone else with a stake in the economic health of our nation’s cities.
Falling Rents as a National Average Mask Some Strong Spots
A new report from Apartment List shows falling rents in the nation’s largest, priciest markets don’t tell the whole story. They’re actually up in a large number of smaller markets, and overall trends are now following more typical patterns.
Why it matters: Anything returning to normal sounds like good news now, and this report provides where investors might go prospecting for some decent deals on rental properties in an otherwise dismal market for many.
Today on Millionacres
What Would a Mask Mandate Mean for Small Businesses?
President-elect Joe Biden says one of his first acts in office will be to ask Americans to commit to wearing masks for the first 100 days of his administration. If enough do it, can that help save some teetering small businesses?
Why it matters: Millionacres’ Maurie Backman explains why a huge surge in mask-wearing might counter the huge surge in COVID-19 and help retailers by making people more comfortable to go into their stores, among other palliative effects while we all wait for vaccines to do their work.
Opportunity Zones Could Stand Up and Stand Out in 2021
In the spring of 2019, Skybridge Capital head man Brett Messing famously told Institutional Investor: “Opportunity zones are like high school sex. Everyone is talking about it, but nobody is doing it.” 2021 might be the year.
Why it matters: A massive amount of capital gains taxes could be deferred if they pour into opportunity zones ahead of April 15 (and those extended deadlines), and there’s pressure to justify those breaks in the form of getting tangible development underway in those more than 8,000 opportunity zones across the country. Together, those two forces could make 2021 the year the Opportunity Zone Program really gets some legs.