What I’m Reading
Falling Behind: Debt funds, life insurance companies and banks are out competing agencies on market rate multifamily deals, resulting in a loss of market share. The stiff competition could result in agencies failing to meet their allocations. Globe Street
Substitution Effect: Executives running some of the world’s biggest retailers, manufacturers and consumer-products makers say they are seeing signs that people are becoming less willing to absorb price increases. This includes an uptick in demand for discount products. Wall Street Journal
Caught in the Middle: Mortgage rates have soared but demand is for housing is still strong thanks to existing supply / demand dynamics. This underlying demand makes the Fed’s inflation quelling job more difficult and may result in them having to hike more aggressively. Bloomberg
Brick by Brick: COVID made the dangers of having little microchip manufacturing in the US glaringly obvious. Now manufacturers are racing to build new plants, backed by federal and state incentives. Vox
Baby Come Back: Companies across the US are struggling to get workers back to the office. Austin, Texas is leading the way thanks in part to a hiring boom that has spanned the past decade. Wall Street Journal
Chart of the Day
Recent data from Avalon Bay illustrates the impact of household unbundling on real estate. Look at the chart on the top right. When the number of adults per unit falls, more units are required to house the same number of people.
Source: Rick Palacios
WTF
Back From the Dead: A funeral in Peru was dramatically interrupted after ‘knocking’ was heard from within a coffin, revealing that the woman in it was still alive. Metro
Whacked: The water in Lake Mead has gotten so low that a body from an unsolved 1980s homicide was found in a barrel. 8 News Now
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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