News

Landmark Links December 14th – Downstream Pressure

  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 […]

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Landmark Links December 11th – Not Rocket Science

  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 […]

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Landmark Links December 7th – Inverted

  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 […]

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Landmark Links December 4th – Insurmountable

  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: […]

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Landmark Links November 30th – Playing Catch Up

  Must Read  US public pensions are taking on more risk via opportunistic real estate investments in a very mature part of the cycle in an effort to close massive funding gaps.  I’ve seen this movie before.  It generally ends poorly. Economy Occupational Hazard: Occupational licensing is an even bigger barrier to employment than commonly […]

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Landmark Links November 27th – Bargain Bin

  Must Read: With the housing market slowing, builders have resorted to offering everything from 6 figure price cuts to free vacations and broker incentives to lure buyers and move inventory.  The housing industry will likely be a headwind to GDP in the near and intermediate term.  However, it’s recovery was so lackluster that economists […]

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Landmark Links November 16th – RIP Golden Goose

  Must Read: The City of San Francisco is highly reliant upon development fees on new market rate residential developments to fund it’s affordable housing initiatives.  However, it is quickly running out of money for the initiative and finding out the hard way that continuously raising the inclusionary requirements for the percentage of affordable units in […]

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Landmark Links November 13th – Bait and Switch

  Must Read: Its becoming increasingly apparent that Amazon’s HQ2 search was a ruse with a predetermined outcome.  Here’s how it all went down: Announce a nationwide (and parts of Canada) search for a 2nd headquarters Cities drop pants and offer billions in taxpayer subsidies and tax exemptions Collect tons of data to form the biggest […]

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Landmark Links November 9th – Getting High On Supply

  Lead Story: A combination of rising interest rates, burnout from buyers and flat-lining rents have helped tamp down home buyer demand over the last six months in Seattle where home prices have fallen, thanks to a doubling in inventory over the past year.  See Also: Las Vegas home inventory was up over 50% year over […]

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Landmark Links November 6th – Flawless Logic

  Lead Story: It’s been a while since we checked in on the mortgage originators to see what they are up to since rising rates have chocked off their refinancing pipeline. At the same time that slowing home sales are starting to hit purchase mortgage originations which are showing signs of topping out.  For quite a […]

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