# Category Archives: Stock

### How Much The \$100 Is Worth In Every State

Traveling to various states in the United States will have anyone notice the difference in how much the dollar is really worth. The prices for goods is not fixed and variable. The prices change depending where a person is in the US.

The difference in prices

One gallon of gas will cost \$1.82 in South Carolina, while it will cost \$2.74 in Hawaii.

An average Tennessee resident will pay half the price of the electric bill of an average Connecticut resident.

Tuition fees on public colleges will also vary by state.

Regional Price Parities

The government has been keeping tracks of price disparities for years now. They have created what they call Regional Price Parities which measures the fluctuations of prices across the states.

The Bureau of Economic Analysis recently published their data last July. This data shows that the dollar can swing 30 percent more of what it can buy.

Example of price disparities

For a better understanding, imagine a store which offers a wide array of goods and services. Each of the items are priced according to its national-average price. Now, imagine a cart is filled with items that totals \$100 from that store.

In Hawaii, 85 percent of the items in a cart is what the \$100 is worth. While in Mississippi, one can get \$115.30 worth of items for the \$100.

Real value of the dollar

The dollar’s “real value” is highest in Mississippi and Arkansas which is worth \$114.30, while it is worth the least in the District of Columbia at \$84.70, Hawaii and New York at \$86.40, New Jersey at \$87.30, California at \$89, and Maryland at \$90.70.

Calculation

The data used to calculate the Regional Price Parities is from the Consumer Price Index (CPI).

For the Consumer Price Index, the government is keeping tracks of a lot of goods and services such as college textbooks, electricity, cars, and even cereals. It also keeps track of rents which is variable in various states.
The “real value” of the dollar is also different in rents. The \$100 is worth roughly \$63 in Hawaii and is worth \$160 in Arkansas.

Conclusion

So when an Alabama resident visits New York and looks into his New York City Illustrated Map to check where to avail of services in the city, he is now well aware of the lesser value of his money.

### Is There Trouble In San Francisco’s Real Estate Market?

Is San Francisco’s hot real estate market showing signs of trouble? According to a note to its clients, analysts at Morgan Stanley through their leader Vance Edelson said that the tech IPO slowdown has started some concerns that one of the hottest real estate markets might be ready for a pause.Edelson and his team looked at commercial real estate market wherein rents have risen by about 70% since 2009.Demand has consistently been robust as proven by only 6.5% vacancies in the cities’ office space.

Edelson and his team wrote that robust demand since the Great Recession has been in question because the pickup in subleasing earlier this year including the weaknesses in the AlphaWise survey that was done earlier in the week and tech IPO slowdown is now in the spotlight. Office absorption tracks the IPO market overtime but there are strong mitigating factors that include strong pre-leasing of new space, constraints in future development and vacancy that is still considered to be very close to historic lows.

Edelson and his team have also charted the number of tech IPO’s against commercial net absorption rates to be able to measure the difference between office spaces that have been just vacated and office space that has just been occupied. Based on the chart, the pace for new tech IPO’s have slowed down most particularly with tech space where over half of the companies that are filing for SEC are said to have disclosed material weakness.

Disclosing material weakness usually means problems with a company’s financials although it is not a sign that the company is in a bad state. They are just being realistic about their condition although this is not a positive sign for the market. According to the report, sub-leasing increased to 1.4 million square feet of office space or 1.5% of available stock which means that companies occupying large amounts of space are sub-leasing to smaller tenants in order to supplement their leases.

It is expected though that the market will remain fairly balanced although it is clear that the market is slowing down. The market is facing some problems finding enough tenants to occupy 7% of current available space.