Inflation fears fed more flame, Airbnb changes rules and gets a Nantucket sleighride, Dollar General as a pandemic-ender, Sun Belt migration here for the long term.
In Today’s News
Prices paid by U.S. consumers rose in May by more than forecast, extending a months-long buildup in inflation that risks becoming more established as the economy strengthens, Bloomberg reports today [subscription required].
The Millionacres takeaway: The year-over-year jump was the largest since the Great Recession. Economists quoted in this piece say it’s not just a pandemic snapback either. A classic prescription for inflation is to raise interest rates. Not a lot of official talk about that yet, but we shall see.
Airbnb Changes and the Short-Term Rental Wars
If travelers need to pay high cleaning fees and follow lots of house rules — as what’s allegedly happening with Airbnb (NASDAQ: ABNB) — they might as well stay in an expensive hotel, our Laura Agadoni writes.
The Millionacres takeaway: Airbnb better listen to the complaints it’s been receiving, Laura says, because alienating one’s customer base (guests and hosts) is no way to succeed.
Two wealthy summer residents led a battle over Article 90, a proposal that sought to cut the number and duration of vacation rentals allowed on the Massachusetts island, The Wall Street Journal reports today [subscription required].
The Millionacres takeaway: This is an interesting look at the dynamics involved in a notably high-dollar, high-toned market that could repeat themselves in markets of all kinds across the country as real estate investors — from corporations to mom-and-pops — come to grips with neighborhood pushback on short-term rentals.
Also on Millionacres
Disruptors in business change our lives. Think Apple and the smartphone. Amazon and e-commerce. Uber. Now comes Dollar General (NYSE: DG) and the grocery industry.
The Millionacres takeaway: Dollar General already is in a hyper-charged expansion mode. Now there’s the possibility it could add pharmacies. How much that would change the game for this already game-changing chain could be dramatic.
America’s Sun Belt is experiencing record inward migration, resulting in a major shift in supply and demand for housing and commercial real estate. There isn’t any one factor that supports this trend; rather, a number of factors back this as a lasting trend.
The Millionacres takeaway: Our Liz Brumer describes the phenomenon and notes that being able to identify long-term trends can help investors stay ahead of the curve and seize investment opportunities in the marketplace.
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