Connect with us


The rent is too d*mn high for Gen Z: Younger generations are ‘squeezed the most’ by higher rents, BofA says



The rent is too d*mn high for Gen Z: Younger generations are 'squeezed the most' by higher rents, BofA says

Most of Gen Z is too young to remember the 2010 New York gubernatorial candidate Jimmy McMillan.

But over a decade later, they would probably agree with his signature issue (and catchphrase): the rent is too damn high.

This July, median rent payments were 7.4% higher than during the same period last year, according to a Bank of America report released Tuesday. 

The national median price for a one-bedroom apartment has been hitting new highs nearly every month this summer. It was $1,450 for July, according to rental platform Zumper. In the country’s largest city, New York, average rent exceeded a shocking $5,000 a month for the first time ever in June. 

But inflation in the rental market hasn’t hit each generation equally, and no one is getting squeezed harder by the higher monthly payments as Gen Z. Those born after 1996 have seen their median rent payment go up 16% since last July, compared to just a 3% increase for Baby Boomers, BofA internal data shows. 
“Younger consumers are getting squeezed the most by higher rent inflation,” BofA wrote.

The great rent comeback

Early in the pandemic, landlords slashed rents and gave significant COVID discounts to entice tenants to stay instead of leaving urban areas. Once those deals started expiring in 2021, many landlords suddenly raised payments once again, sometimes asking for over double their pandemic value. 

Young people across the board have been hit hard, and rent burdens compared to age can be seen even within a single generation. Younger millennials had their median rent payment grow 11% from last year, while the median payment for older millennials rose 7%. Gen X experienced a 5% median rent increase, according to BofA. 

It’s not a surprise, then, that Gen Z feels so strapped for cash. The majority of young people, 61%, said they want to receive their wages daily instead of twice a week, a practice typically reserved for workers living paycheck to paycheck, according to a report from the Center for Generational Kinetics, which specializes in research across the generations. Rising rent inflation has even priced nearly a third of Gen Zers out of the apartment search altogether. Around 29% of them have resorted to living at home as a “long-term housing solution,” according to a June survey from personal finance company Credit Karma.

It’s no wonder—the rent really is too high.

Sign up for the Fortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations.


Coinbase’s near-term outlook is ‘still grim’, JPMorgan says, while BofA is more positive about firm’s ability to face crypto winter



Coinbase's near-term outlook is 'still grim', JPMorgan says, while BofA is more positive about firm's ability to face crypto winter

Coinbase is well positioned to successfully navigate this crypto winter and take market share, Bank of America said in a research report Tuesday. It maintained its buy recommendation following the exchange’s second-quarter results.

The results warrant “a muted stock reaction,” the report said. Net revenue of $803 million was below the bank’s and consensus estimates, while its adjusted $151 million loss before interest, tax, depreciation and amortization was better than the street expected. Importantly, the company remains “cautiously optimistic” it can reach its goal of no more than $500 million of adjusted EBITDA loss for the full year, the report added.

Coinbase shares fell almost 8% in premarket trading to $80.74.

Bank of America notes that Coinbase had no counterparty exposure to the crypto insolvencies witnessed in the second quarter. The company also has a “history of no credit losses from financing activities, holds customer assets 1:1, and any lending activity of customer crypto is at the discretion of the customer, with 100%+ collateral required.” These rigorous risk-management practices will be a “positive long-term differentiator” for the stock, the bank said.

JPMorgan said Coinbase had endured another challenging quarter, while noting some positives.

Trading volume and revenue were down materially. Subscription revenue was also lower, but would have been much worse were it not for higher interest rates, it said in a research report Wednesday.

The company is taking steps on expense management, and in addition to the June headcount reductions, is scaling back marketing and pausing some product investments, the note said.

The bank says the company’s near-term outlook is “still grim,” noting that the exchange expects a continued decline in 3Q 2022 monthly transacting users (MTUs) and trading volumes, but says Coinbase could take more “cost actions” if crypto prices fall further.

JPMorgan is less optimistic than Bank of America about the company in the near term, saying pressure on revenue from falling crypto markets will have a negative impact on the stock price. Still, it sees positives including higher interest rates, from which the firm will generate revenue. It also sees opportunities for the exchange to grow its user base, leveraging almost $6 billion of cash. The surge in crypto prices in July, and the forthcoming Ethereum Merge are also seen as positive catalysts, it added.

The bank maintained its neutral rating on the stock and raised its price target to $64 from $61.

Sign up for the Fortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations.

Continue Reading


Elon Musk sold $6.9B in Tesla stock in case he’s forced to buy Twitter



Elon Musk sold $6.9B in Tesla stock in case he's forced to buy Twitter

Elon Musk sold $6.9 billion of his shares in Tesla Inc., the billionaire’s biggest sale on record, saying he needed cash in case he is forced to go ahead with his aborted deal to buy Twitter Inc.

“In the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” Musk tweeted late Tuesday after the sales were disclosed in a series of regulatory filings. 

Asked by followers if he was done selling and would buy Tesla stock again if the $44 billion deal doesn’t close, Musk responded: “Yes.”

Tesla’s chief executive officer offloaded about 7.92 million shares on Aug. 5, according to the new filings. The sale comes just four months after the world’s richest person said he had no further plans to sell Tesla shares after disposing of $8.5 billion of stock in the wake of his initial offer to buy Twitter.  

Musk last month said he was terminating the agreement to buy the social network where he has more than 102 million followers and take it private, claiming the company has made “misleading representations” over the number of spam bots on the service. Twitter has since sued to force Musk to consummate the deal, and a trial in the Delaware Chancery Court has been set for October. 

In May, Musk dropped plans to partially fund the purchase with a margin loan tied to his Tesla stake and increased the size of the equity component of the deal to $33.5 billion. He had previously announced that he secured $7.1 billion of equity commitments from investors including billionaire Larry Ellison, Sequoia Capital, and Binance. 

“I’ll put the odds at 75% that he’s buying Twitter. I’m shocked,” said Gene Munster, a former technology analyst who’s now a managing partner at venture-capital firm Loup Ventures. “This is going to be a headwind for Tesla in the near term. In the long term, all that matters is deliveries and gross margin.”

At the weekend, Musk tweeted that if Twitter provided its method of sampling accounts to determine the number of bots and how they are confirmed to be real, “the deal should proceed on original terms.” 

Musk, 51, has now sold around $32 billion worth of stock in Tesla over the past 10 months. The disposals started in November after Musk, a prolific Twitter user, polled users of the platform on whether he should trim his stake. The purpose of the latest sales wasn’t immediately clear.  

Tesla shares have risen about 35% from recent lows reached in May, though are still down about 20% this year. 

With a $250.2 billion fortune, Musk is the world’s richest person, according to the Bloomberg Billionaires Index, but his wealth has fallen around $20 billion this year as Tesla shares declined.    

Sign up for the Fortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations.

Continue Reading


What causes vasculitis? Ashton Kutcher battled rare autoimmune disease



What causes vasculitis? Ashton Kutcher battled rare autoimmune disease

Ashton Kutcher opened up this week about having suffered from a rare autoimmune disease. 

The renowned actor, who has been vocal about running his first marathon in N.Y.C. in the fall, tweeted late Monday evening that he experienced a rare vasculitis episode—an autoimmune flair up—three years ago: “I had some impairments,” he wrote, referring to hearing, vision, and balance issues. “I fully recovered.”

Vasculitis happens when blood vessels thicken, causing inflammation and restricting blood flow in various parts of the body. The immune system is basically attacking your own blood vessels. With decreased blood flow, bodily organs are at risk of being harmed. There are many different types of vasculitis, affecting different parts of the body, experts tell Fortune. Certain types of vasculitis can lead to aneurysms, or a rupture in a blood vessel. In certain cases left untreated, patients are at risk for brain stroke from inflamed blood vessels. 

Because it’s a rare disease, vasculitis is increasingly hard to diagnose given that it can manifest in a variety of ways, says Dr. Anisha Dua, associate professor of medicine in rheumatology at Northwestern University Feinberg School of Medicine. 

And the cause of vasculitis is complex; age, genetics, medication reactions, and previous immune diseases may all play a role. 

“I always think of it more like the perfect storm,” Dua says. “You may have a little bit of genetic predisposition. You may have other things that predispose you to the vasculitis, [your] history of autoimmunity in the family. But that’s not the same thing for every single person.” 

Other environmental factors like dust and toxin exposures are being studied as contributing factors. 

“The exact cause of the initial autoimmune attack is not well understood, however certain host and environmental triggers are thought to play a role in inciting the autoimmune reaction,” Dr. Abbas Kharal, a neurologist at the Cleveland Clinic, says. He adds that more people are struggling with an autoimmune disease now than two decades prior.

How do you treat vasculitis symptoms?

Complications from vasculitis include organ damage, blood clots, and vision loss. Loss of vision can be caused by giant cell arteritis (inflammation of the arteries), which blocks blood flow specifically to the head, and therefore, the pathways to your eyes. 

“Knocked out my vision, knocked out my hearing, knocked out like all my equilibrium,” Kutcher told Bear Grylls in an exclusive clip obtained by “Access Hollywood” for a National Geographic special. “It took me like a year to like build it all back up.”

Some forms of vasculitis are more mild than others; treatment depends on the severity. Symptoms include skin rashes, joint pain, fever, fatigue, weight loss, and loss of appetite. More severe symptoms include weakness, shortness of breath, vision loss or organ failure, Dua says. Some forms might resolve independently, but if certain organs are involved, specialized treatment is needed.

A lot of treatments are meant to calm down the immune system, Dua says, manipulating it to stop attacking itself. Steroids can be used to help restore the immune system, for example, as well as a variety of other medications, depending on the situation. 

“Cerebral vasculitis can be very challenging to diagnose and requires a team of experts in stroke and inflammation to appropriately diagnose and treat, therefore it is important to seek treatment at designated vasculitis centers for this,” Kharal says. 

The disease can be isolating and misunderstood publicly, Dua says, which can lead people to feel confused over what it means for their quality of life. Being more open about talking with professionals is always a good first step.  

“It can be really debilitating,” she says. “Having good sources of information and building some sort of support system is really important.”

Continue Reading

Copyright © 2021 Seminole Press.