What I'm Reading On the Move: Most multifamily management companies set retention goals for the properties that they manage of 50% or higher. However, the majority are falling far short of this goal according to a new manager survey from manager software platform Zego. The most interesting part? C projects,...
June 11th – Sweet Spot
One Big Thing Topping Out: Economic data is beginning to show signs that the recent surge in US inflation is peaking, despite higher than expected CPI readings that were heavily influenced by massive inflation in used cars. Capital Spectator The second half of this year could be really interesting if...
June 10th – Leap of Faith Part 2
One Big Thing Yesterday, I wrote about multifamily development getting more speculative because of uncertainty about cost inflation. Today, let's take a look at the for sale housing market. If you want to get an insider's view of housing, Bloomberg's Odd Lots Podcast with Zonda's Chief Economist Ali Wolf from...
June 9th – Leap of Faith Part 1
One Big Thing Construction prices are soaring and eating into the yields of multifamily developers. In an environment like this, its nearly impossible to forecast costs over the typical 2-3 year build cycle for most large multifamily buildings. As a result, developers have to gamble that rent increases will keep...
June 8th – Slow Out of the Gate
What I'm Reading Slow Out of the Gate: Another meh jobs report shows that the summertime economic boom that many anticipated with reopening may not be quite so hot: "To the degree that the labor shortage is caused by expanded jobless benefits or schools that are closed, it should go...
June 7th – Not As It Seems
One Big Thing As you can see from the Chart of the Day Below, we are finally back to 1970 levels when it comes to housing production in the United States (h/t Taylor Grant). Hooray, I guess. While things are certainly better than they were a few years ago, this...
June 4th – Hitting the Water
What I'm Reading Hitting the Water: The National Marine Manufacturers Association says powerboat sales hit a 13-year high in 2020, with 310,000 new vessels sold, up 12 percent from the previous year. Difficult as it is to believe, 2021 is looking even better. As of February, shipments of new powerboats...
June 3rd – Another One Bites the Dust
What I'm Reading Another One Bites the Dust: Katerra, a SoftBank backed startup that said it could slash the cost of building and renovating apartments with offsite construction, is going bankrupt and may not even have enough cash to pay severance. This is the latest edition to the graveyard of...
June 2nd – Big Wave?
One Big Thing For years, people wanted to live in places where it is the most difficult to build, driving prices in those regions up. Now, with remote and hybrid work a possibility, buyers are aiming their sights towards larger properties in the exurbs and builders are struggling to keep...
June 1st – Taking Aim
What I'm Reading Don't Call it a Comeback: 2021 has been a banner year for apartment rent growth thus far with rents nationwide rents now surpassing where they would have been had the pandemic never happened. ApartmentList Inside Deal: Real-estate agents are selling more homes to select customers while bypassing...