What I’m Reading
Liftoff: With apartment shortages across much of the country, rents are climbing at the fastest pace seen in decades. Smaller growth markets like Boise continue to lead the way.
With for sale housing expensive and development not keeping pace with demand in most places, the real risk here for landlords is becoming political, IMO. While it may not seem this way right now, rapid, sustained rent growth is not good for landlords over the long term. Such sustained growth will ultimately lead to more political pressure for rent control. It will also probably result in pressure on the GSE’s to loosen credit standards for homebuyers, decreasing demand. RealPage
Sign of the Times: Junk bond yields have now fallen below the rate of inflation according to ICE Bank of America data. The search for yield has reached an absurd level and shows no signs of improving anytime soon. Wall Street Journal
Much Ado About Nothing? Despite a lot of optimism in Washington, supply chain reshoring is unlikely even in the wake of the pandemic. Instead, what is likely to happen is more diversification away from China and other Asian low cost production hubs. Multi Channel Merchant
Lagging: Even as New York reopens, office vacancies continue to hit new highs, creating a major obstacle to the revival of the vital commercial districts that help fuel the city’s economy. New York Times
Under the Microscope: Leases with fixed rental increases are going to come under a lot more scrutiny if the inflationary environment we are experiencing proves to not be transitory. Globe Street
Chart of the Day
Given recent action in the housing market, I would have expected this to be much higher.
Source: David Schawel
WTF
What a Relief: UK Parliament is considering a new bill that would ban boiling lobsters alive and protect the “welfare rights” of crustaceans and mollusks. I, for one am thrilled that all of the big issues have been solved so politicians can focus on this sort of nonsense. NY Post
Explosive: A man was caught on camera exploding a toilet in a public restroom with fireworks because Florida. NBC 2
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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