What I’m Reading
Drying Out: The western mega-drought is forcing cities with water shortages to issue building moratoriums. Ironically, many of the areas hardest hit by the the drought are also experiencing the largest housing and population booms. The forced shutdown of development will force even more people into the increasingly few areas that still have access to water supplies. Take a guess what happens next….. New York Times
Outward Bound: Home buyers during the pandemic have been willing to take on long commutes in exchange for lower prices, a new analysis from Zillow and HERE Technologies found. That is a reversal from prior years and is likely due to the fact that workers expect to travel to their offices less in the future, making commute time less of a factor. Wall Street Journal
Hitting a Wall: Housing starts are up but building permits have declined substantially to their lowest point since last August and mortgage applications for newly built homes have declined for three straight months. The slowdown has a lot to do with cost inflation and labor shortages, as opposed to a decrease in demand. The Real Deal
Bifurcated: Industrial rent growth is surging with vacancies plunging throughout most of the country with coastal markets like the Inland Empire and Los Angeles leading the way. However, the middle of the country is lagging, with rents flat to down in much of the Midwest, thanks largely to a lack of supply constraints. Globe Street
End of an Error: WeWork has pulled the plug on its co-living brand WeLive, handing over the keys to its landlords (who had shelled out millions to build out the properties). Bisnow
Chart of the Day
Longer-dated market-based inflation expectations have been moderating of late.
Source: BCA Research
WTF
Afternoon Dip: A man returning from a doctor’s appointment came home to find a naked woman, who he did not know swimming in his backyard pool because Florida. (h/t Adam Siegel) Yahoo News
Chomp: A bicyclist was seriously injured after he lost a tire going around a curve on a trail and landed on top of a gator because Florida. WPTV 5
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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