What I’m Reading
Tale of the Tape: Mortgage debt as a percentage of GDP sits just below 50%, high on a historical basis but nowhere near GFC levels of over 70%. Calculated Risk
Roll Up: Blackstone’s BREIT purchased Sunbelt rental apartment owner Preferred Apartment Communities in a 5.8 billion deal. Wall Street Journal Once again, to paraphrase Andreessen Horowitz, permanent capital is eating the (commercial real estate) world.
Dried Out: The American West’s megadrought deepened so much last year that it is now the driest in at least 1,200 years. Associated Press There are massive economic implications here as well as the obvious environmental ones. Many of the areas most impacted in the Colorado River Watershed are also experiencing substantial population growth. Some municipalities have already halted development. Others will likely follow.
Coming to Grips: Business districts are struggling to grasp a future where the number of office workers is substantially diminished, making it difficult for service businesses to survive. The Economist
Shifting Gears: The self storage industry appears poised for another strong year. While occupancy and rental rates will likely moderate slightly, the shift in the way people live and work should continue to provide a tailwind for demand. Multi-Housing News
Chart of the Day
The Canadian housing market just hits different.
Source: Dallas Fed
WTF
Getaway Car: A drunken woman on a motorized suitcase led police on a chase through an airport before being arrested because Florida. Click Orlando
Going for a Dip: A man was arrested for breaking into a house, stripping down and soaking in the bathtub because Florida. Shore News Network
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
Visit us at RanchHarbor.com