What I’m Reading
Chopping Block: The credit tenant net lease sector will be particularly hard-hit if the 1031 exchange is eliminated as proposed in the Biden tax plan. Globe Street
Passed Along: Skyrocketing lumber prices have added $36k to the price of new homes, according to the NAHB. Housing Wire
Surprise: When COVID first hit, California was expected to run a massive deficit as the economy largely shut down. Instead, it ended up with a surplus as capital gains tax collections rose amid a soaring stock market and IPO boom. New York Times
Optimistic Pessimists: Investors are still holding out hope for distressed opportunities, pouring billions into oversubscribed funds even as actual deals remain few and far between. The Real Deal
Cause and Effect: Today’s lumber and microchip shortages both have the same underlying cause – underinvestment. Barron’s
Chart of the Day
Homebuilders are like sharks in that they need to keep moving to survive. Land is their lifeblood – if they don’t have it, they can’t operate. Builders are running out of land.
Source: John Burns Real Estate Consulting
WTF
Busted: A news anchor was arrested for DUI after being found naked and passed out behind the wheel of her car because Vegas. New York Post
Skunked: A man robbing a McDonald’s in England demanded chicken nuggets as well as cash. However, the restaurant was still serving breakfast and he had to settle for an Egg McMuffin before eventually being arrested. Fox News
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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