What I’m Reading
Logjam: The Los Angeles / Long Beach port logjam has enough containers to cross half of the US if laid end-to-end. Amazingly, the problem is getting worse. The average wait is currently 8.7 days compared with 6.2 in mid-August, according to L.A. gCaptain
Respite: The producer price index dropped nearly 1 percent for residential construction goods, excluding energy costs, according to the Bureau of Labor Statistics, the first negative month in 2021. Unsurprisingly, the move was led by a decline in softwood lumber cost. The Real Deal
Sweet Spot: The traditional office recovery has faltered, thanks largely to the delta variant. However, coworking operators are benefitting in this environment and are seeing significant gains in occupancy as companies and employees favor flexibility and convenience. Bisnow
Paying Up: Transportation costs are becoming a major supply chain headache for companies already paying more for raw materials and labor. The bad news is that this likely means that the cost of goods will continue to see upward pressure. The “good” news is explained perfectly by Steven Blitz, chief U.S. economist at TS Lombard:
There is no more transitory price than transportation because the capacity can expand and shrink.
Rise of the Machines: Artificial intelligence is increasingly taking over residential real estate. The largest names in the segment are now employing AI to help find buyers the best options for purchases and financing. CNBC
Charts of the Day
Gross yields on single family rentals are now at housing bubble lows.
However, the homeownership premium is still nowhere near where it was in the subprime boom.
Source: Rick Palacios, Jr.
WTF
Mother of the Year: A mother is facing felony charges for allegedly helping her son beat up another child because Florida. The Daily Beast
Here Kitty, Kitty: A man was arrested for breaking into a neighbor’s home in the middle of the night to pet their cat because Florida. Orlando Weekly
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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