Quick programming note: I’m going to be on a family vacation for the next couple of weeks so I won’t be posting every day. I hope that all of you can find some time to get outside and enjoy the month of August!
What I’m Reading
No End in Sight: US apartment rent growth and occupancy both hit new records in July as affordability challenges in the for sale market continues to turn marginal buyers into renters. Real Page Its difficult to see how this dynamic changes anytime soon short of supply catching up with demand which is a stretch for reasons ranging from politics to cost pressures to labor shortages. Keep in mind that upward pressure will increase further when/if mortgage rates increase as it will make buying a house even less affordable.
Take My Money: An online survey commissioned by Breeze, an insurance company, found that 65% of American workers who said their jobs could be done entirely remotely were willing to take a pay cut of 5%. Bloomberg Anyone who doesn’t think this trend has some level of staying power is either deluding themselves or is an office broker/landlord.
Leveraging Up: Zillow is borrowing money in the bond market using its iBuying portfolio as collateral. The move was inevitable as Zillow and Opendoor battle for market share. At some point these companies still need to find a way to actually make money on their transactions. Yahoo Finance
Round Trip: Lumber prices are now back below where they were this time a year ago. What a wild ride. Calculated Risk Blog
Throwing in the Towel: Amazon appears to be winding down its drone delivery group in the UK after promoting it as the delivery method of the future for several years. Wired UK
Chart of the Day
The hot real estate market is not just a United States story. Housing prices are rising faster than rents across the developed world. Take a guess what happens next.
Source: Financial Times
WTF
Runaway Bride: A Louisiana man was arrested in his wedding tuxedo last weekend for allegedly shooting his friend and chasing his new bride down the interstate after accusing the two of having an affair. (h/t Adam Siegel) Yahoo News
Paging Mr. Darwin: An 18 year old TikTok “star” who went by Timbo the Redneck was crushed to death after falling out of his truck ‘Judy’ while spinning donuts because Florida. Daily Mail
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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