What I'm Reading Stretching Out: Multifamily investors are increasingly stretching their holding timeframes - sometimes by 2-3x. This is being driven by both a dearth of product coming to market that makes redeployment of capital difficult and a desire to obtain fixed rate debt with inflation surging. WealthManagement.com Bubbling Over:...
December 9th – Dwindling Reserves
What I'm Reading Dwindling: American balance sheets have been historically strong during the pandemic era, thanks largely to infusions of government cash. The infusions boosted consumer spending, helped pay off debts and reduced the urgency of employment. According to Moody's Analytics, those excess savings are dwindling among many working and...
December 8th – Tailwind
What I'm Reading Tailwind: The US apartment market continues to strengthen with strong rent growth and occupancy at all time highs. RealPage FWIW, this is exactly what should logically be expected to happen in an environment with strong household formation demographics and an increasingly tight homebuying environment - Marginal buyers...
December 7th – Help Wanted
What I'm Reading Help Wanted: The construction industry is 2.2 million skilled workers short of what is needed to keep up with demand. Floor Daily I'm sure that a trillion dollars or so of infrastructure spending injected into this environment will have a positive impact...... Taking Control: Amazon has taken...
December 6th – Pancaked
What I'm Reading Pancaked: The yield curve has been flattening quickly with short rates rising and long rates falling. This could leave the Fed in a bind as the yield curve trajectory suggests that it could be inverted before a hiking cycle ever begins. All Star Charts Interesting to note...
December 3rd – Tis the Season
What I'm Reading Tis the Season: Apartment rents fell in more than half of the nation’s major markets this month, suggesting a widespread cooldown in a market that’s been buoyed by pandemic-driven shifts in consumer preferences. Apartment List To put this move in context a bit, rents typically follow a seasonal...
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...
December 1st – Seeds of Growth
What I'm Reading Creative Destruction: With workers quitting their jobs at nearly unprecedented levels, entrepreneurship is on the rise: The number of unincorporated self-employed workers has risen by 500,000 since the start of the pandemic, Labor Department data show, to 9.44 million. That is the highest total since the financial-crisis...
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...
November 29th – Turnaround
What I'm Reading Back in Style: Retail store openings in 2021will exceed closings for the first time since 2017. Department stores and specialty retailers are still closing faster than they are opening but even closings in that segment have slowed. The key here is integration between ecommerce and brick and...