Above the Fold

America’s Great (Financial) Migration

We’ve talked frequently about the pandemic’s effects on our society and culture. More than a year after a nationwide shutdown, increased data and trends are emerging that offer a bit more insight into how COVID-19 motivated our geographical desires. A recent report from NPR, citing data from a Pew Research study, revealed that 33% of the millions of Americans who moved during the pandemic did so for financial reasons. Most relocated due to a change in job status, and many who moved out were vacating major cities like New York, San Francisco, Washington, D.C., Chicago and Los Angeles. New York City, in particular, saw a 530% increase in the number of move outs in 2020 vs. 2019; and experts see these trends continuing even as America opens back up. 

Consumers across the country have moved back in with family members or opted to pursue dreams of a better, less-stressful life in quieter towns in other parts of the country. Another reason for gravitation toward lower-density areas was a reduced risk of infection. Younger people age 18 to 29 were the most likely to have moved during the pandemic, as they were least likely to have established their own families and ties to a specific neighborhood. The one trend that dominated studies in June and November of 2020 was that the vast number of Americans who did move (61% in June and 42% in November), chose to live with a family member. The study also showed that the majority of those who moved view it as a positive, which could indicate that despite all the stresses of the last year, many of us are finding our “happy place,” even if it was motivated by a pandemic. 

Three Things 

1. Forget Stick-Framing, Now You Can 3D Print Your Home – It’s been just over a month since the first 3D printed home was listed for sale in the United States. Even though that initial home hasn’t even been completed (the model was 3D printed), interest in the technology is exponentially increasing. Companies like SQ4D and ICON are able to “print” houses quickly using sturdy concrete at prices that are cheaper than lumber (which is skyrocketing) and much less labor. Permits in some areas are a problem, but the companies are working with local authorities to get their product out to the marketplace. 
2. It’s Investing, Not Gambling! – After the massive GameStop debacle, fintech firms and developers are seizing an opportunity to keep investors engaged through education. Several companies like Qooore, Invstr, EVERFI and others offer slick user interfaces that combine imagery and smart, quirky content (and even avatars) to bring the often drab and complex world of Wall Street to the masses. Some of the apps do offer real investing options, but help consumers understand and apply concepts like risk management and technical analysis.
3. Bond Yields Continue to Rise – The benchmark 10-year U.S. Treasury note hit another 13-month high of 1.634 Friday as investors digested another $120 billion sale of notes and bonds by the Treasury. The increased debt issued by the government, along with increased optimism around the economic recovery and subsequent inflation fears are all fueling the rise in yields. Rising yields tend to put downward pressure on most stocks and can have exponentially detrimental effects on borrowing costs on companies and consumers. The Federal Open Market Committee has a two-day meeting this week ending Wednesday, where they will likely address inflation risks and rising rates. 

Did You Know?

What You Might Not Know About St. Patrick’s Day

While most Americans celebrate St. Patrick’s Day with parades and green beer, the religious Irish holiday started a bit differently. March 17 is the anniversary of St. Patrick’s death in 461 AD. Born in Roman Britain, and brought to Ireland as a slave, St. Patrick is known for many legends, including using the three leaf clover (or shamrock) to explain the Holy Trinity. Irish families have observed his passing for more than a thousand years and would originally break Lenten prohibitions to dance, drink and feast on bacon and cabbage. The parades were a tradition that actually began in America, as did the use of less-expensive corned beef and cabbage, which was cheaper than ham, thus a more realistic option for impoverished Irish-Americans in the late 19th and early 20th centuries.