News

Landmark Links February 11th – Only Game in Town

Must Read: The affordable housing crisis has led to a wave massive institutional investor interest in American trailer parks, as the housing affordability crisis continues and few options for investment in truly affordable housing remain.

Economy

Permanent Decline?  A 700-year look at bond yields raises the question: should “risk free” assets generate a real returnSee Also: Nearly four decades into a bull market for bonds, investors still have a ravenous appetite for them.

Off the Sidelines: Americans are joining the workforce at a record rate.  Nearly three of four Americans who became newly employed in recent months came from outside the labor force.

Built to Last?  This is a great description of the current state of the American economy from Bloomberg’s Noah Smith:

…U.S. consumers simply have little reason to stop consuming. They’ve deleveraged since the crash, their homes are appreciating modestly in value, their wages are rising at a decent rate and their pensions are doing fine. Barring a new financial crisis, a major Chinese collapse, a sharp reversal of course from the Fed, or more dramatic meddling from Trump, the economy may simply keep sailing along.

Commercial

Flexing: While the volume of warehouse sale transactions has soared in this cycle, flex industrial (industrial/office hybrid) volume is lagging far behind.

Ghosted: Ghost kitchens, also known as virtual kitchens or cloud kitchens, are facilities to prepare restaurant food for pickup or delivery, rather than to be served at a restaurant and both investors and retail landlords have been betting on them in a big way.

Residential

Nowhere to Fall: Its become somewhat popular to talk about housing prices in the US as if they are in a bubble.  However, history shows that today’s low production – especially at the low end of the market – is likely to keep housing prices from falling much in the next recession.

The Great Divide: Housing policy in California has become a political battleground between San Francisco urbanism and Los Angeles sprawl with fault lines clearly established between politicians from both regions.

Profiles

Illegitimate Champs: The more information that comes out about the Houston Astros’ sign stealing via technology, the clearer it is that the team has a toxic clubhouse culture and their World Series Championship in 2017 should be vacated See Also: A former Blue Jays pitcher is suing the Astros, claiming that their cheating ways altered his career path.

Swiping Right: Americans are divided as to whether online dating is a good or bad thing.  However, its growth is undeniable.  The share of Americans who have tried online dating has doubled over the past four years and is now at 30 percent.

PT Barnum Was Right: Cryptocurrency scams took in more than $4 billion in 2019See Also: A crypto ponzi scheme took Major League Baseball players and their families for millions.

Chart of the Day

Its very hard to see how affordability improves so long as this persists.

Job Openings

Source: JBREC

WTF

Patience is a Virtue: Last week, police in Washington arrested a man who had been hiding in a supermarket ceiling with $8,000 in stolen merchandise, including a 17-pound wheel of artisan cheese. (h/t Russ Barrett)

Gotta Hear Both Sides: A man was arrested for watching porn and drinking beer in a public library because Ohio.

Not All Heroes Wear Capes: A premium porn site is offering free access to passengers aboard a Japanese cruise ship who have been quarantined thanks to an outbreak of coronavirus.

I Hope She Taught Chemistry: A teacher was arrested after trying to get an 8 ball of meth delivered to the school where she worked because Florida.

Landmark Links – A candid look at the economy, real estate, and other things sometimes related.

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