What I’m Reading
Clogged: This week’s housing starts number was a big disappointment, especially given the lack of supply that has helped lead to rising prices. It has a lot to do with a lack of finished lot inventory that has caused a major bottleneck, forcing builders to slow down. Bloomberg
In the Clear? Hotels took the brunt of the pandemic downturn but there was little in distressed transactions thanks mostly to lenders offering forbearance. Now the pandemic is ending and investors appear to be returning as well. Bisnow
Rise of the Machines: Some companies are hoping to automate their way out of severe labor shortages by investing in robotic technology. Washington Post
Priced Out: Food delivery apps are falling by the wayside as customers opt to order directly from restaurants and pick up their food in-store thanks to rising costs. This seems to be a big problem all-around for ride share and food delivery. If platforms charge non-VC subsidized rates, consumers stop using the services because they are too expensive. Uber and Lyft rates are insane right now as they can’t attract enough drivers when wages rise elsewhere and enhanced UI benefits are available. This has pushed costs above those of the taxi companies that they disrupted. Food delivery was a lifeline during the pandemic but that is now falling by the wayside as well. Serious question: are taxi medallions now a viable distressed investment? Business of Business
See Ya: A survey of 83 tech founders and CEOs, found that a whopping 64% plan to downsize their presence in San Francisco and only 40% plan to have 75-100% of their Bay Area workers return to the office full time. sf.citi
Chart of the Day
Housing has a major bottleneck issue thanks to a lack of finished lots. This is not something that will be solved overnight.
Source: The Daily Shot
See Also: Builders were caught flat footed when the market accelerated.
Source: Zonda
WTF
Crack Kills: A 224-pound Russian woman faces some heavy-duty justice for sitting on her husband and strangling him to death with her buttocks during a boozy dispute because Russia. NY Post
Test Drive: A naked woman was arrested for pleasuring herself on the floor of a pickup truck at a Minnesota car dealership. The Smoking Gun
Basis Points – A candid look at the economy, real estate, and other things sometimes related. Visit us at RanchHarbor.com