Alegria Capital Management

This is not the plot of a new Netflix sci-fi series. Ex-Walmart executive Marc Lore recently announced plans to build Telosa -- a sustainable, pedestrian-friendly, $400B city to be designed by Danish architect Bjarke Ingels somewhere in the western US, per Dezeen. Here’s the plan:... 1. Lore buys a chunk of empty desert land, then donates it to a community endowment. 2. Telosa keeps the land, while residents pay ground leases to rent it. 3.That income, plus appreciation, funds the city and services like education and health care. Telosa’s goal is to receive its 1st residents in 2030 and expand to 150k acres and 5m residents over the next 40 years. Features include: Self-driving electric cars and aircraft Renewable energy Aeroponic farms A big central tower called Equitism Though Telosa’s a long way off the concept isn’t new. It’s based on economist Henry George’s Progress and Poverty (1879), which spawned the Single-Tax movement, now known as Georgism. Under Georgism, citizens pay a single tax to rent land, but aren’t taxed on improvements to the land, income, or labor. Some much smaller Georgist communities still exist: Free Acres, New Jersey -- founded in 1910, it has a population of ~250 people Arden, Delaware -- founded in 1900 by an architect and a sculptor -- and its neighbors Ardentown and Ardencroft Fairhope, Alabama -- founded in 1894, making it the oldest single-tax colony in the US Fun fact: Telosa is derived from an ancient Greek word for highest purpose.

2Q21 Real Estate Market Cycle Monitor Report Full report, if you'd like to learn about how real estate market cycles work: https://daniels.du.edu/assets/Cycle-Monitor-21Q2.pdf... Source: Dr. Glenn Mueller

Recovery Cycle Boosts Commercial Real Estate *How the pandemic broadened the real estate risk/reward spectrum *Which property types investors favor and why... *The urban real estate outlook trends driving gateway cities *The property types that benefit most from rising inflation

Overview of the Economy + Real Estate (July 30) By Dr. Peter Linneman, Professor Emeritus at the Wharton School of Business... https://trademarkproperty.com/2021-state-of-the-industry-w/

HPA’s website says the company is committed to making homeownership a reality for more people. Our process is easy, transparent, and built on a foundation of choice and flexibility, it says. Home Partners is helping more people get into great homes, in neighborhoods they love, with the opportunity to build a more secure financial future. Renters lease a home for three to five one-year terms, depending on which state they’re living in, and then purchase the home from HPA ...at any time at a predetermined price. Potential buyers must go through a credit check and application process as would any homebuyer. George Nehme, chair of the Pikes Peak Association of Realtors board, says HPA’s program fills a gap in the homeownership world. The HPA helps buyers that are in a credit crunch where they’re not qualifying [to buy], he says. It helps them get themselves situated to buy the home from HPA. HPA’s site contains a detailed guide to properties it’s interested in buying. New construction, for example, must be 100 percent complete, and the newly built homes must have central air. HPA won’t buy condos, and caps payment in Colorado Springs at $500,000 per home. Each city in which it buys has a different cap. In Denver, the only other Colorado city where HPA buys homes, the cap is $550,000. Prime targets for purchase can’t be located close to structures that would impair value, such as industrial buildings, high-traffic roads, railroads or airport runways. Nor can they have dirt driveways or be foreclosed or probated properties. HPA doesn’t buy manufactured housing. The guide also covers everything from appliances to fences. A check of the Better Business Bureau national website shows dozens of complaints about HPA, largely surrounding the $99 nonrefundable application fee, which an HPA representative explains on the site covers the cost of running a credit check and other routine examination of an applicant’s financial situation. Other complaints focus on condition of homes and questions surrounding who’s responsible for repairs. Nehme couldn’t say whether HPA’s entrance into the local market is a positive, but says HPA represents another driver of price growth due to its deep pockets, which allow it to compete in markets with extremely low inventories.

Home flipping rate and gross profits decline across the U.S. in first quarter of 2021

Tech workers migrated away from San Francisco, Boston, and Chicago in the greatest numbers in 2020 and moved to Austin, Nashville, and Charlotte according to Bloomberg. Biggest Net Migration OUT 1. San Francisco Bay Area, -80.4 per 10,000 2. Boston, -54.4... 3. Chicago, -53.4 Biggest Net Migration IN 1. Austin, 217.0 2. Nashville, 154.7 3. Charlotte, 145.8 I'm always fascinated by these kinds of trends. Also, can Austin take any more tech folks? https://lnkd.in/ebt8ffct

Lots of foreclosures coming unlikely Source: REI Ink Magazine; June 2021

There’s no bubble. How do real estate market cycles work? Read this in full.... https://www.burns.orbit-hub.com/r/d239d52381b64209155cc6fda&

The Colorado Springs-area housing shortage has gone from bad to worse. The inventory of single-family homes listed for sale dwindled to just 881 in October a record low over the last 25 years, according to a Pikes Peak Association market trends report and Gazette historical data. By comparison, home listings totaled 1,940 in October 2019 and topped 2,900 five years ago. Based on the pace of recent sales, October’s supply would last about half a month until exhausted, assum...ing no additional homes came on the market, the association’s report showed. https://gazette.com//article_f05f015a-1edf-11eb-8a0d-bb94d

U.S. records strongest quarterly gain on record. Reopening local economies pushed GDP growth to 33.1 percent in the summer quarter. Although the gain was on the high end of expectations, the overall economy remains 3.5 percent below the level at the end of last year. Following strict shutdowns in April and May, most states began to relax restrictions on nonessential businesses to some degree. At the same time, CARES Act stimulus started reaching households as delayed unemplo...Continue reading

Real Estate + Evonomic Update By Peter Linneman For the week ending October 23, 2020 from a webinar done with Willy Walker, CEO Walker & Dunlop.... Economic Update / 10-23-20 https://www.linnemanassociates.com/covid-19-update

Quantitative easing (ie money being added to the economy) is continuing and this will eventually result in higher prices throughout the economy (inflation).

This is what’s occurring and has been for a while. Covid is further exacerbated the trend of Americans moving from primary to secondary markets.

The COVID-19 pandemic has disrupted many things about our lives, and these changes run much deeper than wearing masks and social distancing. In the housing market, the pandemic has renewed a trend away from densely populated urban centers and toward more spacious dwellings in the suburbs. This trend is so significant that it is driving headlines in the industry and beyond. Zillow released research in August showing that rent prices are increasing in suburban areas while sta...gnating in urban centers. Researchers hypothesized that suburban rentals may now be more appealing for renters who no longer need to commute or are temporarily unable to enjoy some of the amenities of urban living. https://rei-ink.com/the-great-migration/

The U.S. economy dropped by almost 32% in the second quarter of 2020, leading 55 million Americans to file for unemployment. Under normal circumstances, the disastrous economic consequences of the COVID-19 pandemic would lead to a massive wave of foreclosures. But if anything is true of 2020, it’s this: The phrase under normal circumstances simply doesn’t apply. Historically, there’s been an unfailingly strong correlation between... https://rei-ink.com/mortgage-forbearance-a-sign-of-the-tim/

Rick Sharga of RealtyTrac

When you sell a piece of real estate, are you using the process that will get the highest price possible? The work of two U.S. academics who last week won the Nobel Prize for economics suggests you almost certainly aren’t. Stanford University’s Paul Milgrom and Robert Wilson won the prestigious prize for their work on auction theory and how the design of auctions can be changed to maximise the price paid for an asset. A close look at their research suggests the way real estat...Continue reading

Demand is high and home sales in Texas are up 11 percent year over year, but Dallas real estate attorney Rachel Khirallah says we're in the eye of the storm. She says we'll see a hundred percent increase in foreclosures in the middle of next year. She says "we're expecting anywhere from 100,000 to 200,000 foreclosures in the state of Texas alone. In states such as Florida, California and Nevada we're forecasting a 200 percent increase." She says too many people are delinquen...t on their mortgages. "Most of it has to do with the pandemic because people have lost their jobs or had a reduced income, and as a result had to request either a forbearance agreement through their lenders and once those expires their monthly mortgage payments are going to be due again. The stimulus bill is not going to help that piece of it at all. It's going to be a huge trickle down effect." https://www.radio.com//lo/foreclosures-could-spike-in-2021

The 4th highest skyscraper in Vancouver is coming and it's gonna look twisted, but nice #NewRealEstate #yvrrealestate #vancouverrealestate #skyscraper #bcrealestate #realestatenews http://www.westerninvestor.com//vancouver-council-approves