What I'm Reading Micro Marketing: Cities have historically tried to increase job opportunities by trying to attract large companies with tax incentives. In the post COVID remote work world, cities are increasingly focusing their marketing efforts on appealing to individuals who already have a job but are looking for a...
July 16th – Dispersion
What I'm Reading Dispersion: Relocation buyers are fundamentally changing the housing landscape across the country. When higher income individuals and families from the coasts move into more affordable areas, they are able to outbid locals when housing is scarce. The result is a shift to more expensive housing costs. Affordability...
July 14th – Target Rich Environment
What I'm Reading Diamond Hands: Baby Boomers hold the lion's share of real estate wealth in the United States and are showing a higher inclination than previous generations to age in place rather than moving to assisted living. The result has been less housing supply for subsequent generations. New York...
July 9th – Cause and Effect
Charts of the Day Home prices are now around 35% higher than they were at the peak of the housing bubble. http:// At the same time, average 30-year mortgage rates have fallen from around 6.75% in 2006 to just under 3%. http:// Additionally, real disposable personal income is up by...
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...
July 1st – Hiding in Plain Sight
What I'm Reading Hiding in Plain Sight: It's well known that US infrastructure from roads, to bridges, to tunnels is falling apart. The tragic Florida condo collapse this week highlights another type of private infrastructure disaster that may be much more widespread than we currently think. Justin Gillis highlighted the...
June 30th – Spillover
What I'm Reading Pressure Valve: Last year, home prices soared across the US while rents stagnated, thanks to a large amount of vacancy in big cities. Now there are signs of price exhaustion in the for sale market and rent versus own ratios have become extremely skewed. As a result,...
June 25th – Fill Er Up
What I'm Reading Tailwind: American household balance sheets are flush, with assets growth far outpacing liabilities over the past year. A lot of this is due to home price inflation and consumers tapping HELOCs for consumption and investment could provide fuel for economic growth. Bloomberg Waiting List: Winnebago is the...
June 24th – Quid Pro Quo
What I'm Reading Payoff: Gov. Gavin Newsom says California will pay off all the past-due rent that accumulated in the nation's most populated state because of the fallout from the coronavirus pandemic, a promise to make landlords whole while giving renters a clean slate. I'm sure that its just a...
June 22nd – Scapegoat
What I'm Reading Wishful Thinking: Public pension funds are pouring money into alternatives thanks to low yields (and the fact that they still haven't lowered absurdly high return expectations). However, merely investing in alternatives doesn't necessarily generate higher returns. This quote from Jason Zweig sums it up perfectly: "The message...