What I'm Reading Bad Vibes: Homebuilder sentiment dropped 12 points to 55, according to a monthly survey from the National Association of Home Builders, the largest drop in the survey's 37-year history with the exception of April 2020. Sentiment is also declining at a far faster rate than it did...
June 6th – Pick Your Poison
What I'm Reading Leveling Off: Rent is still increasing sharply YoY but the pace is slowing somewhat. Calculated Risk Trade Off: Just-in-time inventory management substantially reduced the risk of inventory cycle recessions where over-ordering leads to a glut. In the post-pandemic world, companies are increasingly opting for a just-in-case model...
May 25th – The Great Unbundling
What I'm Reading The Great Unbundling: A recently published Federal Reserve analysis of household formation shows a meaningful decline in living with roommates / others since the pandemic, coupled with a rise of living alone. This happened as consumption of housing went up during the pandemic and I've referred to...
February 7th – Defying Gravity
What I'm Reading Defying Gravity: Apartment leasing is typically a seasonal business, with demand cooling with the weather in the winter months. That has not been the case in 2021 and thus far in 2022. Both Q4 occupancy and January occupancy increased for the first time in history, according to...
December 2nd – Pushback
What I'm Reading Pushback: SB 9, which effectively eliminated single family zoning in California by allowing duplexes, and in some cases four units, in most single family home neighborhoods is set to take effect on January 1st. However, some cities are rushing to pass new restrictions. An initiative has also...
November 30th – Pass Through
What I'm Reading Limited Competition: Buying real estate off market is much more about avoiding protracted bidding wars and minimizing pursuit costs than it is about buying properties at a deep discount. Globe Street Log Jam: Homebuilders are struggling with labor and material shortages. As a result, construction timelines have...
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...
March 10th – Postponement
What I'm Reading Postponed: The Federal Housing Finance Agency has announced that Freddie Mac and Fannie Mae will extend multifamily forbearance for COVID-19. Qualifying multifamily property owners will be eligible for forbearance through June 30, 2021. The program was scheduled to expire on May 31, 2021. This move includes eviction...