February 3rd – Backlog

What I’m Reading

Backlog: While obtaining entitlements and cost inflation get most of the attention, one underrated impediment to building more housing is administrative delays.  COVID has made this issue substantially worse and municipalities often have massive backlogs, partially as a result of staffing shortages.  Bloomberg

Bursting at the Seams: As retailers and logistics companies try to stockpile goods to hedge against supply chain problems, they are facing a new challenge: In many parts of the United States, there is little to no space available to stash the merchandise.  Logistics firms are finding new options to deal with a scarcity of storage, including building multistory facilities and choosing locations farther from coastal ports. New York Times

Fake it Until You Make It: Metaverse “real estate” sales topped $500MM in 2021 and are expected to double in 2022.  CNBC The last time that selling fake land was a viable hustle, disputes were settled with duels.  I guess time is a flat circle after all.  

Setting Sail: The pandemic-induced boat sale boom has made marinas an attractive target for real estate investors.  (h/t Steve Sims) Wall Street Journal

Perfect Storm: Household formation, job and wage growth, strong consumer confidence and sharply rising home prices created a perfect storm for multifamily in 2021.  Globe Street

Chart of the Day

Reminder: when it comes to interest rates, nobody knows nothing.

Image

Source: Bank of America Research

WTF

Fake it Till You Make It: A sigh language interpreter is in hot water for signing gibberish during a press conference announcing the arrest of a serial killer because Florida.  ABC 13

Missing Something: A man robbed a bank with a machete, led police on a three county chase and threw the money out the window before getting into a standoff in a church parking lot because Florida.  Tampa Free Press 

Basis Points – A candid look at the economy, real estate, and other things sometimes related. 

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