What I'm Reading Staying Power: As the pandemic fades, there was a sense that the effort to shorten supply lines and bring production back home would fade. However, that isn't happening. The construction of new manufacturing facilities in the US has soared 116% over the past year, dwarfing the 10%...
June 15th – Tapping the Brakes
What I'm Reading Tapping the Brakes: From construction cost increases, to higher interest rates and rate cap costs and slowing sales, inflation is taking a toll on the CRE industry. Globe Street My guess? We are about to see a substantial slowdown in new development as the cost of capital...
May 26th – Great Outdoors
What I'm Reading Great Outdoors: Institutional investors are turning their sights on amenity rich campgrounds and RV parks as a way to capitalize on the pandemic boom in vehicle sales and camping. Investors are looking to follow the same institutionalization playbook as single family rentals and mobile homes and see...
May 20th – Holding the Bag
What I'm Reading Holding the Bag: The Federal Reserve now owns $2.72 trillion in mortgage backed securities, up from $1.4 trillion in 2020. It has announced the intent to shrink that amount substantially in order to help tighten monetary policy. However, most of those loans are at much lower rates...
March 29th – Off to the Races
What I'm Reading Off to the Races: Through the first three months of the year, 2022’s national rent growth is outpacing 2021’s record rent growth, according to Zumper’s National Rent Report published last week. Zumper Its almost as if home ownership becoming completely unaffordable creates more renters or something. Time...
March 18th – Taking Flight
What I'm Reading Taking Flight: The message from the Federal Reserve earlier this week was extremely hawkish, forecasting aggressive rate hikes. That being said, the yield curve is now essentially flat (the 5y-30y US OIS curve went negative) and Fed Funds futures are projecting a rate cut in 2024. The...
March 17th – Up, Up and Away
What I'm Reading Up, Up and Away Part I: Demand for single-family rental homes is soaring, pushing prices to record highs, as Americans continue to want larger homes with outdoor spaces per the latest report from CoreLogic. Sunbelt cities like Miami and Phoenix are leading the charge. CNBC Up, Up...
March 16th – On Watch
What I'm Reading On Watch: There is a strong correlation between a dramatic rise in oil prices and recessions. Historically, not every recession is preceded by a 50% rise in oil but every 50% rise in crude has resulted in a recession but not for the reason that you may...
July 2nd – Stop
What I'm Reading Mission Accomplished? With the housing market running white hot for a year, calls are growing for the Federal Reserve to start tapering its $40 billion/month purchase of mortgage-backed securities. Given the current environment - both fixed income and housing - there is a heated debate as to what...
June 14th – Churn
What I'm Reading On the Move: Most multifamily management companies set retention goals for the properties that they manage of 50% or higher. However, the majority are falling far short of this goal according to a new manager survey from manager software platform Zego. The most interesting part? C projects,...