June 14th – Taking the Plunge

What I’m Reading

Taking the Plunge: Big landlords are increasingly getting into the homebuilding business as demand for single-family rentals continues to surge.  CNBC This is exactly what one should expect will happen given that the monthly cost of home ownership has doubled since January 2021.

Priced Out: The cost of building a home has soared in recent years but it has been more than offset by rising housing values.  Rising rates and home prices are putting tremendous pressure on affordability, calling into question the pace of future development.  MarketWatch  IMO, development cost and more expensive financing are about to take a bite out of the future development pipeline.

Spike: 30-year mortgage rates are quickly approaching, following the recent hot CPI reading.  CalculatedRisk

Long Road Ahead: Port congestion should ease in 2023 as new container vessels are delivered and demand from shippers softens from pandemic highs, but not enough to restore global supply-chain flows to where they were before Covid, according to the head of DHL’s freight-forwarding unit. Bloomberg

Tapping the Brakes: Amazon is slowing their plans to bring some new warehouses on line, delaying openings by up to two years.  Globe Street  

Chart of the Day

This is such a massive tailwind for the residential rental market.  

Source: JBREC

WTF

Undercover Pharmacist: A woman was arrested for stealing opiate-based pills from a nursing home where she was an employee and selling them.  Tampa Free Press

Proportionate Response: An argument over a Toaster Strudel led to a college kid stabbing his roommate because Florida.  Fox 35

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

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