What I’m Reading
Another One Bites the Dust: Katerra, a SoftBank backed startup that said it could slash the cost of building and renovating apartments with offsite construction, is going bankrupt and may not even have enough cash to pay severance. This is the latest edition to the graveyard of ventures backed and run by VCs and finance bros who arrogantly think they can disrupt a “dumb” industry like construction. The Information
Competitive Edge: Austin-based Homeward, which makes all cash offers to buy homes on behalf of its customers and leases to them until they are ready to move, has raised $160MM. This makes individual bidders more competitive and also gets rid of the sale contingency problem for move-up buyers. It also represents yet another avenue for more liquidity to enter the system, likely pushing prices even higher than they would have gone otherwise. TechCrunch
Size Matters: Shrinking packages are one way that companies are concealing higher prices. Consumers are paying more for a growing range of household staples in ways that don’t show up on receipts — thinner rolls, lighter bags, smaller cans — as companies look to offset rising labor and materials costs without scaring off customers. Washington Post
Baby, Come Back: Now that the economy is reopening, restaurants are ditching expensive delivery services in droves. As a result, the delivery platforms are offering better deals to eateries while shifting more of the cost burden to consumers. Eater
I didn’t see how this business was viable before the pandemic and I certainly don’t see how it is now. Reality is that these companies couldn’t make money during the pandemic boom where everyone was ordering delivery and now are entering a much more difficult environment. Much like the non-bank mortgage originators, there is a reason that delivery platforms rushed to go public in 2020 – that was truly as good as it gets.
See Ya: Some employees are quitting their office jobs rather than giving up working from home. Top employees are going to have this sort of leverage going forward. Would imagine this is a trend that will have some staying power for lower level employees as well so long as we continue to see a worker shortage. Once things balance out, it will likely taper off. Bloomberg
Chart of the Day
Shot: Rising prices have now overwhelmed the affordability benefit of declining rates.
Source: Odeta Kushi
And Chaser: Homebuying intentions collapsed in May.
Source: The Daily Shot
WTF
Let It All Hang Out: A British man wearing a rabbit mask was arrested for flashing a fire crew who was trying to help a woman who he was harassing. Leicester Mercury
Perfect Name: A man named Lawrence Florida was arrested for stealing White Claws from a restaurant and scissors from a barber shop because Florida. Zephyr Hills Free Press
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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