The impact of COVID-19 on Urban Real Estate: review of the historical, economic and scientific evidence and a post-pandemic strategy for investing in urban real estate
When I read your paper awhile back, it seemed to confirm an insight I've been "incubating," that Cities are the new Corporation. Separately, I believe one efficient solution to the problem of credit rationing is the fixed point scale for off-balance sheet finance. Powerful, because as a continuous measure of credit impairment it is inextricably linked to the question of price. We certainly have similar ideas about threshold issues. I'm keen to re-read your paper and contemplate how these views, coming from different angles but in similar planes, intersect.
Interesting. Yes, there have been plagues in the past, but this is one is different because of the data infrastructure known as the Internet. So i think we have to be careful using past historical data because the conditions are very different now. Hospitality and travel services tanked because Zoom and other products acted as a substitute for these services. Just like how people got used to consuming via Amazon, consumption patterns are hard to change once they've been set. I suppose I see a similar trend when it comes to coordinating efforts in providing services that are very data centric. Why go into an office when the exact same work can be done remotely? Those with data skills and reliable internet have a supreme advantage in being able to escape the madness. Everyone else, well, yes - major economic scarring. Why else bring out the Fiscal bazookas to fire with the Monetary ones?
The one thing your paper talks about is how interactions between individuals drives growth. I believe in this as it points to some dimensions in attachment theory and calls upon the spirit of Aristotle: man is a social animal. Is there a demand for these kinds of social interactions or will people have gotten used to being in "bunker mode," really only interacting with their proximate immediate family? Remains to be seen. Individual preferences matter as they lead to decisions, even interacting with others. Cities offer a nightlife (and office life) for mating and breeding that rural communities do not: their options set is larger. There's something mysterious in people wanting to congregate together and that human desire isn't going away soon - unless there's been so much scarring that the risks outweigh the benefits.
So I suppose there's some lag that won't emerge for at least a year to see where the new eqiluilibrium settles. San Francisco has a very anti-housing supply expansion policy that makes rent unaffordable for many. How local housing expansion policies interact with another "new normal" remains to be seen. I hope I don't come off as being contrarian. Ha.
Very insightful. Thank you for sharing.
When I read your paper awhile back, it seemed to confirm an insight I've been "incubating," that Cities are the new Corporation. Separately, I believe one efficient solution to the problem of credit rationing is the fixed point scale for off-balance sheet finance. Powerful, because as a continuous measure of credit impairment it is inextricably linked to the question of price. We certainly have similar ideas about threshold issues. I'm keen to re-read your paper and contemplate how these views, coming from different angles but in similar planes, intersect.
Interesting. Yes, there have been plagues in the past, but this is one is different because of the data infrastructure known as the Internet. So i think we have to be careful using past historical data because the conditions are very different now. Hospitality and travel services tanked because Zoom and other products acted as a substitute for these services. Just like how people got used to consuming via Amazon, consumption patterns are hard to change once they've been set. I suppose I see a similar trend when it comes to coordinating efforts in providing services that are very data centric. Why go into an office when the exact same work can be done remotely? Those with data skills and reliable internet have a supreme advantage in being able to escape the madness. Everyone else, well, yes - major economic scarring. Why else bring out the Fiscal bazookas to fire with the Monetary ones?
The one thing your paper talks about is how interactions between individuals drives growth. I believe in this as it points to some dimensions in attachment theory and calls upon the spirit of Aristotle: man is a social animal. Is there a demand for these kinds of social interactions or will people have gotten used to being in "bunker mode," really only interacting with their proximate immediate family? Remains to be seen. Individual preferences matter as they lead to decisions, even interacting with others. Cities offer a nightlife (and office life) for mating and breeding that rural communities do not: their options set is larger. There's something mysterious in people wanting to congregate together and that human desire isn't going away soon - unless there's been so much scarring that the risks outweigh the benefits.
So I suppose there's some lag that won't emerge for at least a year to see where the new eqiluilibrium settles. San Francisco has a very anti-housing supply expansion policy that makes rent unaffordable for many. How local housing expansion policies interact with another "new normal" remains to be seen. I hope I don't come off as being contrarian. Ha.