What I'm Reading Double Edged Sword: The Fed is raising interest rates aggressively to bring down inflation. However, it will also crush investment, which will likely sew the seeds of future shortages as demand recovers quicker than supply can. This is the double edged sword in the housing market right...
June 21st – Help Wanted
What I'm Reading Help Wanted: Construction projects across the U.S. are running short on labor just as $1 trillion in federal infrastructure money starts to kick in. Contractors are responding by offering benefits ranging from signing bonuses to housing allowances to attract and retain workers. Wall Street Journal Drying Up? Over...
June 10th – Back From the Dead?
What I'm Reading Back from the Dead? Single room occupancy units, once a prominent feature of city life in America that cater to low income residents, have been largely zoned out of existence. Now, cities are taking another look at SROs as a revived source of low income housing. Governing ...
May 18th – Breakdown?
I'm travelling during the first half of the week so the next couple of days or so will be charts. Chart of the Day Breakeven inflation rates have been drifting lower of late and I've been seeing hedging costs come in quite a bit as well. The market appears to...
April 1st – Flexing
What I'm Reading Flexing: Leases on warehouse and distribution facilities are getting shorter as landlords seek flexibility to sign new tenants or renew existing leases at inflating rates. Typically, warehouse landlords (and lenders) have favored longer leases with strong credit tenants as a way to mitigate downside. High demand, tight...
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...
February 15th – Upside-Down
What I'm Reading South of the Border: Californians looking for lower mortgage or rent payments are increasingly heading south to Mexico for more affordable prices, and the influx of residents has sparked a real estate boom in Tijuana. Fox Business As I have said in this space before, of of...
February 2nd – Rush Hour
What I'm Reading Rush Hour: Buyers are scrambling to purchase homes while rates are still low. In the meantime, supply is down substantially. As a result, buying has become even more competitive, especially at lower price points leaving prospective homeowners stuck between soaring rents and unobtainable ownership. CNBC Widening Out:...