What I’m Reading
Scapegoat: Luxury housing developments are often vilified by NIMBYs. However, they play an important role in the housing ecosystem. In a market that is functioning properly, today’s new luxury unit is tomorrow’s move-up and, if not enough new units are built, the fixed housing supply gets bid up to insane levels. The Atlantic
Takeover: New data from CommercialEdge shows that industrial property construction will hit a 5-year high in 2021. The big story though, is Amazon, whose distribution centers will account for 8 of the top 10 largest industrial projects underway in the US this year, with a total footprint of 28.3 million square feet. CommercialSearch
Under Pressure: With court decisions chipping away at the federal eviction moratorium, Washington is in a race against time to get $50 billion in aid to renters to keep them in their homes. Washington Post
Overstated: There is a lot of talk in the housing market about our current conditions constituting a bubble. However, mortgage underwriting remains quite conservative by historical standards. Calculated Risk Blog
Here to Stay (Hopefully): State and local governments temporarily eased rules over takeout alcohol, telehealth and other services. Now, there are growing calls to end the regulations for good. For restaurants, in particular, this would be a huge deal. The growth of takeout hurts their bottom lines under the old rules since booze is typically the most profitable item on the menu. Allowing cocktails to go helps solve this issue and will allow more restaurants to flourish as the economy recovers. (h/t Steve Sims) Wall Street Journal
Chart of the Day
Big yikes. Perhaps the only way that housing supply ever catches up with demand (perhaps decades down the road) through less demand rather than more supply.
Source: Adam Tooze
WTF
Clogged Up: After months of hoarding toilet paper, Americans now have too much of it and sales volume has been flushed. (h/t Steve Sims) Wall Street Journal
Shopping Spree: A couple was arrested for leaving their 4-year old alone in a car outside of a sex shop while they were inside shopping. The Smoking Gun
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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