What I’m Reading
Front Row: As boat sales continue to soar and manufacturer backlogs grow, waterfront homes with private docks are becoming even more valuable. In other related news, its a great time to own boat storage facilities and non-seasonal marinas. Wall Street Journal
Sweet Spot: NMHC’s July Apartment Market Conditions report for July showed the tightest market on record with strong, broad based demand for rental housing across the US as the economy continues to recover. Calculated Risk Blog
In the Driver’s Seat: After largely sitting out the recovery from the Great Recession, housing is once again leading the US economy out of a rough patch. Housing’s share of GDP was 17.7% in the first quarter of 2021, which represents a near 14-year high. Builder Online
Failure to Start: The supply of entry-level housing, which Freddie Mac defines as homes up to 1,400 square feet, is near a five-decade low. The lack of entry level housing is not just a problem in expensive metros, it has become pervasive across the US. Wall Street Journal
False Start? Many companies have set Labor Day as a return-to-the-office deadline but the resurgent COVID delta variant could foil that plan as infections (but not hospitalizations) are once again spiking. This is really bad news for both the office sector and the ecosystem of service businesses that rely on office employees. Bisnow
Chart of the Day
Household formation is booming and should continue to for several years based on demographic trends. At the same time, its becoming less affordable to buy a house, even with today’s low rates. Its an environment that is perfect for the rental – both single and multi-family – market.
Source: Jonathan Litt
WTF
Your Tax Dollars at Work: San Francisco is rolling out new trash bins for its city sidewalks. The cost for the first batch of prototypes? $20,000 each. Just wait until the folks bitching about billionaires “wasting” money going to space find out about the government. San Francisco Chronicle
Putting on a Show: A married California corrections officer was convicted of having sex with an inmate in full view of other prisoners. Given the circumstances here, I’m not sure if jail time is the punishment that the judge thinks it is. Breaking 911
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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