5 at 5: Your Daily Digest for Real Estate Investing, 7/13/21

© Provided by The Motley Fool 5 at 5: Your Daily Digest for Real Estate Investing, 7/13/21

Consumer prices surge, lumber prices sink, elderly population booms, younger workers could drive office space return, Side white-label brokerage platform eyes IPO.

In Today’s News

Consumer Prices Surge by Most Since August 2008

U.S. consumer prices rose last month at the fastest pace since August 2008, and core prices, which exclude food and energy, the most since November 1991. Fox Business points out that there’s a “base effects” skew in play due to the decline in prices that began during the pandemic’s first days.

The Millionacres takeaway: The usual antidote to inflation is raising interest rates. That can really roil investment markets for all kinds of things — including real estate. If that happens, it’s really game on.

Meanwhile: Lumber Wipes Out 2021 Record Gain With Demand Ebbing

Lumber, which at one point was among the world’s best-performing commodities as the pandemic sent construction demand soaring and stoked fears of inflation, has officially wiped out all of its staggering gains for the year, Bloomberg reports [subscription required].

The Millionacres takeaway: Lumber prices have helped drive up costs, and then prices, of new construction, but it could be a while before the effects are felt. After all, if the market demand is there, why lower the price?

Commerce Secretary: Aging Population Boom to Hit U.S. Economy ‘Like a Ton of Bricks’

Commerce Secretary Gina Raimondo was pushing Congress for President Joe Biden’s proposed $400 billion in spending for at-home care when she observed this week that the number of Americans over 65 will surge from 54 million now to 74 million by 2030, Reuters reports.

The Millionacres takeaway: It’s not just at-home care that will rise in demand. This also speaks to the business prospects of all those senior living businesses out there, too, including many owned by real estate investment trusts (REITs).

Today on Millionacres

Could Younger Workers Save Office Buildings?

Our Maurie Backman takes a look at surveys and more that point to the overall greater desire among many younger workers than their older counterparts to return to the office.

The Millionacres takeaway: If the bosses listen, this could help add fuel to the nascent turnaround in office occupancy around the country, which could, in turn, help fuel the bottom line for owners and investors in those spaces.

Side Prepared to Take White-Label Brokerage Model Public

Side, a real estate technology company that helps independent real estate agents and brokers become boutique brands, has recently raised over $50 million in a funding round, bringing its valuation to $2.5 billion, setting the stage, it says, for a future IPO.

The Millionacres takeaway: If top technology IPO underwriters invest in a real estate business, other real estate investors might want to take note. We are.

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