DID YOU KNOW?
Top Headlines: Delivered by Leonard Steinberg
August 23, 2023
01 The FED's actions damage is emerging: At a time when we need EXCESSIVE home building, builder sentiment dropped six points to 50 in August, according to the National Association of Home Builders/Wells Fargo Housing Market Index. Anything over 50 is considered positive. Mortgage rates hit 7.24% Monday, and the share of builders cutting prices rose to 25% in August from 22% in July.
02 In 2016 there were about 86,132 chronically homeless people in the US.....by 2020, the number had jumped 28% to 120,323.....and in 2022 it was up even further to 138,361.
03 Shelter (ie:rent) prices have accounted for roughly 80% of inflation over the past year, and leading indicators point to a big deceleration ahead (even if it happens gradually). Consumers also don’t seem all that worried anymore. Expectations for inflation over the next year and beyond continue to fall.
04 Protected worker housing? In Colorado where many areas are suffering from a severe lack of affordable housing options, the owner of an affordable home recently received a payout of tens of thousands of dollars from the local government, in exchange for a hefty “deed restriction” for his property, banning its use for Airbnb stays, limiting any potential renter or buyer to the workforce of Summit, and limiting any potential resale price. This is the inevitable response to a lack of affordable housing.... and it does not add housing stock, the long term solution!
05 In the second quarter, U.S. businesses signed new leases for an estimated 97.5 million square feet, up almost 70% from 57.4 million square feet in the second quarter of 2020. The average U.S. office lease size was 3,275 square feet, or 19% less than the average lease size between 2015 and 2019, and these savings are certain to go to the bottom line of corporations. The U.S. office vacancy rate has increased to 13.2% from 9.5% before the pandemic: CoStar forecasts this will increase to more than 17% by the end of 2026.
06 If TIME IS THE LAST LUXURY, tech has probably saved us more time than anything. We witness this daily at COMPASS where certain tasks that used to take 30 minutes now take 2-3 minutes. AMAZON Prime shipping reduces shipping time from 2-9 days to 1-2 days.....now calculate the time you'd spend visiting 4 different stores physically.