In 2015, I attended an event featuring an economist whose speech was entitled “Ahead of the Curve.” The economist explained that he studied macroeconomics, reviewing national and global market trends rather than specific markets or short-term movements. In his speech, the economist predicted that the U.S. economy would continue sustained growth until around 2019, when it would experience a short-term dip before recovering quickly into another “Roaring 20s.” Six years later, these predictions appear rather on point. Growth was steady in the U.S. until the onslaught of the COVID-19 health crisis, which caused a major economic pullback in many sectors.
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If this economist’s predictions continue to be accurate, we’re all in for a bright future. As businesses reopen, travel restrictions are removed and consumers head back out into the market, there is a palpable vigor for a return to normalcy. According to a recent Wall Street Journal (WSJ) article, household incomes increased 21.1% in March of 2021, the largest monthly increase since 1959. During the pandemic, many consumers sheltered at home and socked away their stimulus payments. Now, fueled with government funds and increased savings, many Americans are poised to leave hibernation and return to spending money on goods, services, and travel. |
The effects of this spending are already being felt. WSJ reports that overall spending in May was well above pre-pandemic levels, with spending on goods up nearly 20% from February 2020. Spending on recreation rose 3.5% in May over the previous month, as did spending on travel, with scheduled seats on U.S. airlines climbing into the summer. Higher-income spenders appear to be driving the spending growth, as households with incomes of more than $200,000 spent 16% more on restaurants in May than in April. And if you’ve been out to a restaurant, store, or local brewery lately, you’ve likely felt both the unease and excitement of large public gatherings (and perhaps unfortunately, the traffic) of a post-COVID world. |
Real estate markets will react, creating new opportunities for development and growth in markets across the country. There will be hurdles, of course, such as limited supplies of labor and materials, but no market is perfect. These constraints shouldn’t scare away investors, who want to capitalize on the 6.4% growth in the U.S. economy for the first quarter of 2021. Oxford Economics predicts the highest rate of annual growth in consumer spending since 1946, at 9% for the year. |
It will be exciting to watch where this growth takes us over the next year and decade. Weintraub has seen incredible growth in demand for real estate legal services over the past several months, and even recently hired a new associate to the team that we’re excited to welcome in August. Now, if only the Sacramento Kings could put together a decent basketball team… |
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Local Beat:
News from the Sacramento Commercial Real Estate Market
Loomis highlights the intersection of necessary development and community preservation:
Local product John Bissell leads Origin Materials through the process of going public:
Big plans for the former site of Arco Arena:
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Off the Wall:
Funny or Interesting Stories Featuring Legal Real Estate Issues
Owner forced to pay damages to “artists” for removal of graffiti:
Cheerleader’s profane rant protected as free speech:
What does the government know about UFOs?
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Words from Weintraub:
More Free Legal Advice from the Experts
The latest on COVID-19 and masks in the workplace:
Intellectual property protection from beyond the grave?
The battle over hard seltzers has gone legal:
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I am an attorney that assists clients with commercial real estate matters, including buying, selling, leasing, and management of real property. I also help clients structure investments in real estate, handling projects relating to financing, investment, and joint ventures. In addition, I regularly advise clients on general corporate matters, from formation and management to operating issues to third party contracts for licensing, research and development. I have a diverse background, with experience in private practice and in-house counsel, on both litigation and transactional cases, and in non-legal roles. I like working with sophisticated clients who demand top notch legal advice to help them manage their legal issues in an efficient and effective manner. I look forward to working and/or connecting with you soon.
Mark Ellinghouse 916-558-6091
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