What I’m Reading
Pick Your Poison Just-in-time inventory management substantially reduced the risk of inventory cycle recessions where over-ordering leads to a glut. In the post-pandemic world, companies are increasingly opting for a just-in-case model where they carry more inventory to insure against supply chain disruptions. Paradoxically, this makes the economy more susceptible to inventory cycle recessions. The Economist The big lesson here is that risk can never fully be eliminated and mitigating it in one area typically increases it in another.
Leveling Off: Rent is still increasing sharply YoY but the pace is slowing somewhat. Calculated Risk
Counter Intuitive: As companies continue to push for workers to return to the office, new research from Stanford found that people are more productive when they work from home. Bloomberg
Compromise: Younger apartment renters who want a home and are now priced out of the for sale market are increasingly turning to build-to-rent communities. AZ Family
Upside Down: Negative leverage – when the loan constant is higher than yield on cost – is now pervasive in the US multifamily market. (h/t Steve Sims) Globe Street
Chart of the Day
Could we be headed for a baby boom?
Source: Bank of America Global Research
WTF
Faux Pas: A 77 year old man was arrested for punching his 84 year old friend over poor golf etiquette because Florida. (h/t Michael Deermount) Fox 5
If This Car’s a Rockin’: A driver distracted by receiving intimate services from his passenger lost track of his surroundings and crashed head-on into a FedEx delivery vehicle, resulting in “injuries to his private area” because Florida. Yahoo!
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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