In the Federal Reserve’s zero lower bound, the millennial generation in Baltimore has been flocking to the city on an illusionary premise of Baltimore’s revival. One of the largest narrative’s in Baltimore was Under Armour’s deployment of gentrification via Kevin Plank’s Sagamore Developments. The narrative has held strong for the past decade inducing millennials to move to the city and buy real estate. In recent times, the narrative has started to crack with with the recent -65% crash in Under Armour’s equity.
In response, management has unleashed the first wave of cost cutting measures including layoffs reported by The Baltimore Sun Newspaper. The first round is roughly two dozen, but we have reason to believe there could be multiple phases. The individuals who are being laid off are the very same millennials who bought into the narrative of revival.
To make matters worst, Baltimore was just ranked the third fastest city in decline by the US Census. It’s so bad, that Baltimore City has reached a 100 year population low.
In any city, a dwindling population always attracts crime, and that is exactly what is happening.
If you piece together the puzzle, it appears Baltimore’s outlook for 2017 is bleak. Residential real estate prices are stalling and it appears that the millennial generation who bought into the revival narrative could be holding the bag.
Across the country, millennials are flocking to urban areas, which is totally reverse from the prior generation of the great migration to suburbia. What millennials in Baltimore don’t understand is the current state of their community and the 50-years of decay will bring a lot of future overhang.
Bonus: Only in a stock market bubble can Under Armour CEO build his own hotel across from head quarters
But better yet, build his own whiskey distillery 1.5 miles away to numb the pain of the -65% <UAA> crash. Strange times in a zero lower bound.