Brandon Donnelly

Daily insights for city builders, delivered every morning at 6 AM ET. I’m Brandon Donnelly — a Toronto-based real estate developer and founder of Globizen. I’ve been writing here since 2013.

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Tag: COVID

  • Unnecessarily confusing communication from the CDC

    I saw a headline yesterday that the CDC was now reporting that vaccinated people can spread COVID just as easily as unvaccinated people. I then thought to myself, “this is not a good headline if you’re trying to encourage people to get vaccinated.”

    What I guess this is saying is that vaccinated people who end up contracting COVID (“breakthrough” cases) have similar viral loads to people who are unvaccinated. So it makes sense that they would then be able to transmit the virus to others.

    But the more important point remains that vaccinated people are less likely to spread the virus to others because they are less likely to actually get it in the first place.

    Yes, the vaccines are not 100% effective. But supposedly the latest hospital data suggests that vaccines remain 87% effective at preventing hospitalization. This, of course, means that some vaccinated people will still get sick and that, yes, they might transmit it to others.

    But for the vast majority of people that shouldn’t be the case.

    Update: My point is that clear and consistent messaging is important.

  • Second home and investor mortgage applications accounted for 14.1% of all applications in February

    As a follow-up to my recent post about the rise of the second home, here is a chart (via the WSJ) showing second home and investor mortgage applications as a share of all applications in the US. In February of this year (2021), second home and investment properties accounted for 14.1% of all applications. This is a record number going back to January 2010.

    What’s also interesting about this chart is that, but for COVID, it shows a general decline over the last decade. I’m not sure what the split is between vacation and investment properties, but can we conclude that pre-COVID Americans were becoming less interested or perhaps less able to own a second home? And could the reason be that instead of owning a second home, more people simply started relocating permanently?

    There is also an obvious seasonality to these applications. Each of the above valleys tend to correspond to the spring and summer months. It’s almost as if every fall/winter we start thinking to ourselves, “Right, winter. Let’s look for a place somewhere else.” Is it that, or are there other forces at work here?

  • The roaring twenties

    We’ve all heard stories or know people who have made the decision to leave the city during this pandemic, either temporarily or permanently. Some young people have moved home until things settle down and some people have sold their real estate and bought something outside of the city.

    I don’t know know what the exact numbers are, but you can see this trend being reflected today in downtown rental rates and other indicators. This is happening in many cities around the world.

    But here’s what I think about when I hear these stories:

    1) Are these people assuming that we will never go back to offices and that WFH is our new reality? In this case, the thinking is simple. The world has changed. I need a proper Zoom room and a home gym.

    2) Did these people never really like urban living or have they simply outgrown the city? Pre-pandemic, family formation was still a major pull away from downtowns for many. In this case, a move was going to happen regardless.

    3) Or are these people taking a short-term view of the world and forgetting/ignoring that our global cities are going to rebound and that 2 hour commutes really suck? (Sitting in front of Zoom all day is also no way to live in my opinion.)

    There are both positives and negatives to urban living. There are forces that make people want to centralize and there are forces that make people want to decentralize. And the reality is that many of the benefits and perks of living in a city are temporarily turned off right now.

    Things are not fun right now, but this isn’t going to last. I’m looking forward to the roaring twenties.

  • 85 years of US advertising

    There’s an argument out that there this pandemic isn’t necessarily going to precipitate new changes, it’s simply going to accelerate changes that were already underway. Benedict Evans begins to illustrate this point in a recent blog post called, COVID and cascading collapses.

    In it, he starts by looking at US print advertising revenue. In the first decade or so of the consumer internet, newspapers and magazines actually managed to hold their own. It’s not until after 2008 that they really start to fall off and lose significant market share to internet advertising (most of which belongs to Google and Facebook).

    Intuitively this makes sense. During a crisis, budgets invariably get cut. And then when the market comes back, as it always does, you have people actually thinking about where those dollars should be spent: “Hey, maybe we should put some more money toward that Facebook thing.” It’s a reset moment.

    The other interesting thing about the decline of print advertising is that if look at a longer time horizon — say 85 years, as Benedict did — you can see that its share has been declining for a very long time thanks to television. Of course, now television is changing. US consumers are “cord-cutting” faster than they’re moving to buy things online.

    Cascading collapses, as he calls it.