What I’m Reading
Pushback: SB 9, which effectively eliminated single family zoning in California by allowing duplexes, and in some cases four units, in most single family home neighborhoods is set to take effect on January 1st. However, some cities are rushing to pass new restrictions. An initiative has also been launched to gather signatures for proposition that would permanently give planning controls to local agencies which would be on the ballot in 2022. LA Times
Hoarders: Supply chain problems have small retailers stocking inventory at elevated levels. New York Times This is the shift from just in time to just in case business model that I’ve written about several times. The upside is that it dampens potential supply chain disruption. The downside is that it leaves retailers far more exposed if demand decreases, making the possibility of an inventory cycle recession greater.
Better Late Than Never: The Biden administration is redirecting rental assistance funds to areas with greater demand where existing funds are nearly exhausted. Wall Street Journal This is a move in the right direction but frankly should have happened months ago.
Normalizing: The latest FHFA and Case Shiller releases showed signs of deceleration in housing price increases but no signs of actual declines. The Bonddad Blog
Staying Put: The share of homebuyers looking to relocate dipped slightly in October, according to a report by Redfin. Top destinations remain sunbelt cities as well as some inland California areas. However, Redfin Chief Economist Daryl Fairweather noted that some of these regions could fall out of favor as skyrocketing home prices have made them less affordable. Globe Street
Chart of the Day
Public builders are taking over the homebuilding market.
Source: John Burns Real Estate Consulting
WTF
Don’t Drink and Drive: An Illinois motorist with a Tesla tattoo on his face was arrested for DUI after rolling his 1992 minivan. (h/t Steve Sims) The Smoking Gun
Proportionate Response: A Tennessee man was arrested after holding Little Caesars employees at gunpoint when he was told that his pizza would take 10 minutes to make NY Daily News
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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