What I’m Reading
Mixed Signals: The US employment report for June continued to show a strong labor market consistent with a strong economy with moderating inflationary pressures. However, other economic data are telling a worrisome story of an economy that could be entering into recession even while the underlying inflation rate remains very high. In other words, “Everything about the economy over the last two and a half years has been extremely unusual and it continues to be.” Peterson Institute for International Economics
Drop it Like Its Hot: Homebuilder cancellation rates are on the rise with more than half of homebuilders reporting an uptick in June. Inman
Into the Spotlight: Industrial outdoor storage (IOS) – land typically used for storage facilities to support businesses ranging from logistics to e-commerce – continues to generate high demand from users. The space is now estimated to be a $200-billion asset class and is increasingly becoming an institutional darling. It has also taken supply out of the RV & Boat storage market as delivery fleets have taken over some outdoor facilities, further limiting supply. D Magazine
Continued Pressure: Apartment vacancy rates continued to decline in Q2. Units under construction are at their highest level since 1974 but a combination of construction delays and people priced out of the housing market are applying pressure to an already tight market, pushing rents higher and vacancy lower. Calculated Risk
Mind Games: After two years of working from home, coming into the office has become the new “remote” – a change in behaviour that many people simply aren’t accustomed to anymore. Instead of framing it as “going back,” employers should approach this as if they are competing for customers with a new offering. Fortune
Chart of the Day
Housing affordability is at its worst level since the 1980s in terms of the payment to income ratio.
Source: Black Knight
WTF
Hitch Hiker: An obese, naked man jumped onto a freeway bound semi trailer in the middle of a rainstorm because Florida. ABC 7
Let it Go: A Brazilian influencer ended up in a wheelchair after experiencing “horrible pain” from holding in her farts in front of her boyfriend. NY Post
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
Visit us at RanchHarbor.com