News

Landmark Links August 21st – Don’t Call it a Comeback

 

Must Read: Rising home values and increasingly expensive mortgages have led to a manufactured housing comeback.  Fannie Mae dipping its toes back into the chattel mortgage water  doesn’t hurt either.  See Also: Blackstone is getting into the manufactured housing market.

Economy

Under the Mattress: New research data shows that the personal savings rate in the US is significantly higher than previously thought.

Recurring: How widespread adoption of subscription business models are changing business and investing.

Commercial

Ice Box: How air conditioning conquered nature and made the modern city possible.

Waste of Space: New research from Harvard finds that open office plans directly lead to less worker collaboration and that the reduction in rent due to less square footage is more than offset by declines in productivity.

Instant Gratification: Millennials’ expectations for delivery speed and execution are driving demand for warehouse and distribution property.

Residential

Execution Risk: Costs are rising faster than household wages, meaning that the ability for builders to pass price increases on to buyers and that margins will come under pressure.  At this point in the cycle, execution and operational excellence are critical, writes John McManus at Builder.

Laggard: Despite healthy and persistent growth, US home construction rates remain far behind historic norms, resulting in 2.3 million less single family homes than we would have had if starts had just kept up.

What a Drag: Mortgage rates fell last week as weak housing starts weighed on the economy.

Profiles

Can’t Make This Up: Venezuelan officials are responding to their country’s 32,714% inflation rate (as of Wednesday) by cutting five zeros from their bank notes which is great because a loaf of bread now only costs around 2 trillion bolivars.  Viva Socialism, I guess.

Pay to Play: How shady tactics by distributors and restaurateurs result in shitty glasses of rosé at your favorite restaurant.

Unsolved Mystery: Uber is almost 10 years old, is one of the worlds’ most highly-valued companies and will likely have an IPO soon. However, we still don’t know if it is truly a viable company as it has never had to live on the cash it generates.

Chart of the Day

This trend has legs.  Fannie Mae backed out of the market in the early 2000s and is stepping back in.

A New Home for $90,000? Manufactured Housing Is Making a Comeback

WTF

Darwin Attempt: A snake-handling preacher was carried out of his church after being bitten by a snake because Kentucky.  Stories like this will do wonders when it comes to fighting stereotypes about Kentucky.

First World Problems: Southwest Airlines announced that it will now allow miniature horses as service animals on it’s planes which sounds sort of cute until you consider what it would smell like if a miniature horse pooped in the aisle at 30,000 feet.

Let it All Hang Out: An topless 81 year old woman was arrested for disorderly conduct and intoxication for drinking Franzia Sunset Blush straight out of the box on a park bench because, Florida.

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

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