What I'm Reading We're Number 1: Money laundering is a problem across the economy but nowhere is it more prevalent than in the real estate - especially in the US. Miami Herald Less for More: While many companies have responded to supply chain shortages and wage inflation by raising prices,...
October 11th – No Vacancy
What I'm Reading No Vacancy: Apartment vacancies hit another low in September, according to RealPage, declining to 2.7%, with rents hitting all-time highs. Globe Street A point of interest here is lender underwriting. One thing that has kept the market (sort of) in check is that multifamily properties are typically...
October 8th – Substitution Effect
What I'm Reading Substitution Effect: Construction material shortages are forcing homebuilders and contractors to turn to substitutes and hunt for alternative suppliers as they rush to meet high demand for new housing. However, its a double-edged sword and swapping out materials to minimize delays can add to costs. Wall Street...
October 5th – Honey Badger
What I'm Reading Staying Remote: PriceWaterhouseCoopers is freeing the entirety of its U.S. workforce to work remotely full-time, a decision that will impact 40,000 client services workers. The Real Deal In response, the CMBS markets did their best honey badger impression. Will be interesting to watch this one play out: ...
October 1st – Pointing Fingers
What I'm Reading Pointing Fingers: Frustrations are boiling over at the Ports of LA and Long Beach as freight continues to pile up. Truckers are pointing fingers at a lack of dock help to offload ships. Port officials are pointing to a struck driver shortage. The only thing that both...
September 22nd – Spooked
What I'm Reading Spooked: With $300 billion in outstanding debt, troubled mega-developer Evergrande has been dubbed the "Chinese Lehman." After expanding for years, the company has been scrambling to pay suppliers, and warned investors twice in as many weeks that it could default on its debts. If this were to occur,...
September 21st – Logjam
What I'm Reading Logjam: The Los Angeles / Long Beach port logjam has enough containers to cross half of the US if laid end-to-end. Amazingly, the problem is getting worse. The average wait is currently 8.7 days compared with 6.2 in mid-August, according to L.A. gCaptain Respite: The producer price...
September 17th – Locals Only
What I'm Reading Locals Only: The greater Phoenix area has record demand for new rental housing. However, cities are pushing back, leading to higher prices. AZ Big Media Looks like California has exported its shitty land use politics as more Golden State residents move to the desert. Cooling: August's CPI...
September 14th – Chop Shop
What I'm Reading Chop Shop: Single family rental platforms are increasingly allowing investors to buy shares in homes for as little as $10. The Real Deal IMO, this trend is a governance nightmare waiting to happen. Small investors would be far better served buying shares in Invitation Homes or American...
September 9th – Back to School
What I'm Reading Back to School: COVID caused slowing of new supply in the student housing market, helping to stabilize rents. Now that class is back in session, some of the world's largest property investors are pumping billions of dollars into buying and developing off-campus housing. (h/t Mike Deermount) Wall...