*as of 10/19; Sources: S&P, BTC, FTSE, DJRE, GOLD

According to Zillow’s Observed Renter Demand Index, rental demand is up 19.2% year-over-year, while the typical U.S. rent is up 2.7% in that timeframe. Single-family rentals have seen a greater increase in demand than apartments, as potential buyers who have been priced out are turning to rentals. Rental demand and rents rose the most in San Jose and San Francisco. Meanwhile, Realtor.com found U.S. median rent fell by 0.4%, the 38th straight month of year-over-year decline according to their numbers, though the pace of decline has slowed. It also found San Jose and San Francisco to be the markets with the highest annual rent change.

➨ TAKEAWAY: As the housing market has stalled, more renters are entering the market, and in places where supply growth has cooled, rent growth is not far behind. The Bay Area has benefited from the AI boom and a supply-constrained market, while cities such as Austin - ranked the #1 city for renters - have seen falling rents even with demand growing.

Slava Rubin and Jan-Erik Asplund discuss the current state of the Pre-IPO fintech market, starting with the evolution of fintech from 2008 to the present and then highlighting key companies like Stripe, Ramp, Revolut, and Plaid. They look at market trends, valuation dynamics, and the impact of AI on the future of financial technology.

🤖 Anthropic credit rating: In June, Anthropic received a BB+ credit rating for its debt offering, putting it below investment-grade and in the junk category. This rating was part of its $35 billion AI chip financing deal with Blackstone, Apollo, and others. Now it’s been reported that Anthropic is offering Blackstone a yield of more than 10% in its latest chip deal.

💵 Forever funds: A number of Wall Street Banks, including Goldman Sachs and Evercore, are reportedly pitching evergreen private equity funds to investors. This innovation would radically change the face of the private equity sector by removing exit pressure and reshaping liquidity options for investors.

📖 First edition Harry Potter: One of only 500 first-edition, first-printing hardcovers of “Harry Potter and the Philosopher's Stone” ever produced sold for $400,000 at Heritage Auctions, the second-highest mark ever achieved for the book.

🏡 Buyer-friendly market: Around two-thirds of U.S. metro areas are either buyer’s markets or trending that way, but because of increasing mortgage rates, buyers have less purchasing power overall.

🚀 Slow week for venture: There were only two funding rounds of more than $200 million last week, led by AI startup Modal Lab’s $750 million round, and robotics company Icon’s $200 million round.

🪙 Quantum concerns: The recent breakthrough made by Google's Willow quantum that significantly reduced error rates brings the technology once step closer to becoming a threat to hack crypto, particularly for tokens where public keys have been exposed.

A vacant hospital in New Kensington, PA, a half-hour northeast of Pittsburgh, is hitting the auction block next month with a starting bid of $150,000. The 90,000 square foot property occupies an entire city block and has been in disrepair since it last sold in 2022. The city has not been able to contact the owners and recently boarded up the entrances. While it is located just blocks from the Allegheny River and primed for redevelopment, it is unlikely to sell in this auction. Any private owner would be on the hook for nearly $2 million in unpaid taxes, and the city would prefer the building be demolished rather than rehabilitated. So as much as you might want to own a creepy abandoned hospital, it might be prudent to at least wait for the judicial sale that will likely come if the auction is unsuccessful.