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Illustration: Sarah Grillo/Axios
The prices for U.S. student housing have never been higher, rising to an average of nearly $92,000 per bed, data shows.
How we got here: Previously a lightly invested subsection of the housing market, investment managers, REITs and cross-border investors jumped in with both feet and were behind 50% of all acquisitions in the sector by early 2018. That's up from just 30% a few years ago, new reporting from Real Capital Analytics finds.
The big picture: Student housing prices are just the latest example of the ongoing doldrums in the U.S. housing market that has been driven largely by decreasing home affordability, even though price increases have slowed in 2019 and mortgage rates are near record lows.
The housing market is still out of reach for average Americans, according to the U.S. Home Affordability Report, released Wednesday by ATTOM Data Solutions. The report found that median selling prices were too high for average wage earners in three-fourths of U.S. real estate markets in Q2.
What to watch: "After robust gains over the past five years, the nationwide nominal house price index is now 40% above its 2012 low-point and 4% above the peak reached in 2006," analysts at JPMorgan cocluded in a recent study.
At more than $90,000 per bed and all-time low expected returns, student housing could be maxed out for investors, Costello says, but there's still room for prices to rise.
Protests against a proposed Chinese extradition bill in Hong Kong have continued as groups of protesters occupied and ransacked the city's legislative chamber Monday and were met with tear gas. The city's leader, Carrie Lam, condemned the "extreme violence and vandalism."
Why it matters to the market: The growing unrest could dampen the territory's prominent financial market, which saw a major boom in the first half of the year.
Millions of residents have taken to the streets and the protests are already impacting business decisions. Real estate developer ESR Caymen canceled its $1.24 bullion listing in June because of the turmoil, according to Japan's Nikkei Asian Review.
The bottom line: Analysts say the financial market has yet to suffer any serious consequences, but if protests lead to regulatory changes, "then that's a whole other story," Yuguchi Yutaka, partner in the KPMG Asia listing advisory group, told Nikkei.
Global manufacturing numbers continued to weaken in June, with a worldwide gauge of factory activity rendering its weakest reading since October 2012 as the number of new orders contracted sharply.
The big picture: June's reading is the first time since November 2012 that the index has been in contraction for two consecutive months, with the fall in the manufacturing numbers seen in both developed and emerging countries. However, developed countries, particularly in the eurozone, have been hit the hardest.
Be smart: Capital Economics further noted that manufacturing PMIs fell in all of the world's largest economies except the U.S. and Brazil in June.
Of note: IHS Markit's data also showed China's PMI fell to a five-month low of 49.4. U.K. manufacturing fell to 48, the lowest level since February 2013.
Zoom's stock became a victim of its own success Monday as Goldman Sachs analyst Heather Bellini raised her price target to $66 from $53, but lowered her rating from Neutral to Sell, arguing that "market expectations from a valuation perspective have gotten ahead of themselves."
The big picture: Like Beyond Meat and other recent IPOs whose shares have jumped more than 100% in the months, and sometimes days, since their IPOs, many Wall Street analysts remain bullish on the overall company but are growing wary of the extreme price tags.
Axios' Shane Savitsky writes: The average person on Earth is now 4.4 times richer than their ancestors were in 1950, according to an analysis by Max Roser, founder and editor of Our World in Data.
The biggest winners have been smaller nations that have benefitted from the explosion of the global economy, usually via successes in technology or finance — places like South Korea (a 32.2x jump in per capita GDP since 1950), Taiwan (30.4x) and Singapore (27.5x).
Go deeper: Check out an interactive version of the graphic above, where you can view and compare each country's growth, created by Axios' Harry Stevens.