A Land Advisors Company
Quick programming note: This will be my last post for 2018 and I’m heading out of town for a family ski trip through the 10th so don’t expect much blog activity the first couple of weeks in January either. Wishing all of you a happy new year and a great beginning to 2019! Lead Story: One […]
Must Read: This quote from a recent BuildZoom article by Issi Romem sums up the negative feedback loop in construction costs quite nicely: However, construction wage growth could also be part of a dangerous, self-reinforcing cycle. Rising construction costs tend to reduce the supply of new housing because they shift marginally-worthwhile residential development into the red.8 This […]
Must Read: Current housing market turbulence has many pundits looking for another 2008-like crash. However, 1994 seems to be a better analogy. Economy Behind the Curtain: Japanese banks might have snapped up a third of the loans made to highly indebted U.S. companies, propelling the size of the market past $1 trillion, a new estimate from […]
Must Read: A housing market slowdown where builders retrench further from already meager construction starts would be bad news for renters (and good news for multi-family investors). Household formation has a positive demographic tailwind and there is not a readily available substitution for either owning or renting. Therefore, fewer new for-sale units = more renters = […]
Lead Story: Nobel Laureate Robert Shiller wrote a piece for the NY Times this weekend discussing how the current housing market run-up in price is now the third highest in history behind only the post-World War II era and the housing bubble of the aughts. The article makes the typical strong points and solid analysis […]
Must Read: The yield curve has been getting a lot of attention this week and perhaps rightfully so. The yield between 5-year notes have dropped below those on both 2-year and 3-year securities. This, in addition heated tariff rhetoric, led to a turbulent financial market to say the least. However, there are many yield curves […]
Must Read: Supposedly-green California is falling short on its carbon reduction goals because not enough new housing is getting built, forcing people to drive further. Economy Stuck in Place: Any way that you look at it, Americans are staying in place longer and the decline in mobility is not a positive economic development. Mystery Solved: Research […]