Lead Story: Remember the good old days when mortgage lenders would finance anyone who could fog a mirror? We aren’t back there yet but there are some non-bank lenders who are getting quite aggressive and lending to borrowers who have recently gone through a foreclosure.
Quote of the Day…. “Why are so many porn stars following me on Instagram” – actual text I received from my mom which ties in nicely to this Bloomberg Article about how millennials are often the boss when it comes to helping befuddled older colleagues deal with technology in the work place.
Hard at Work: Americans are putting in more time in the office than they have at any time since 2008. Apparently, they’re starting to spend some of the money they are making from working those long hours as consumer spending also rose by it’s largest amount in 6 years.
The Great Migration Continues: American’s are leaving the midwest and northeast in droves for the south and west. The workforce will actually decline in 22 states over the next 15 years.
Multi-Family Starts: Multi-family construction has boomed on the back of limited supply, rising rents and generally strong demographics. However, growth has slowed in recent months which could be signaling that starts have peaked for the time being.
Tale of Two Cities: Generally speaking, the housing industry has been recovering, albeit slowly. Housing’s share of GDP is expanding, supply is tight, spring sales have been relatively strong, and the high end is going crazy. Things on the low end are not so good though. While values in half of the top 300 US markets have achieved full price recovery from the bust, the recovery has largely bypassed poorer neighborhoods as buyers lack both capital and credit to purchase homes leading to market stagnation. Affordability continues to be a huge challenge as well. People are paying up for ever increasing rentals because they lack the cash for a down payment. The scarcity of developable land in good markets has pushed land values through the roof, making it difficult for builders to deliver affordable product to middle class families. It’s gotten so insane in Silicon Valley that one guy who lives near Google in Mountain View has taken to renting out a tent in his yard through AirBnB for roughly $1,000 per month (it also comes with one shower a day).
Making a Desert Bloom: As California deals with this epic drought, we would do well to pay attention to how Israel has managed to defy their worst drought on record with a water surplus. In the meantime, residents and cities are coping as well as they can. Los Angeles has an ambitious plan to start harvesting more of its rainwater rather than letting it run into the ocean and one rancher who cut back on his cattle operation has been selling water via the classified section of his local newspaper. One water saving measure that wouldn’t be so good for any of us is cutting back on personal hygiene. There has to be a better way.
Chart of the Day
The Empire Strikes Back: Unemployment in Riverside and San Bernardino Counties has fallen precipitously and the region is far less reliant on construction employment than it was during the last boom.
Source: Calculated Risk Blog
Food Fight: A number of creative start ups are waging a $5 billion dollar war to disrupt the grocery industry and win over your dinner plate.
Paying the Bills: Sugar daddy websites are becoming more popular as college students look for ways to avoid ever-increasing student loan debt.
New Way to Commute? Lexus just built a functioning hover board prototype.
Fifty Shades of Hay: The number of atrocities committed in Florida WalMarts are too numerous to list. However, what this guy did to a stuffed horse might just take the cake.
Built in Airbags: A rather large woman emerged from a horrific car crash unscathed thanks to her 38JJ boobs.
Arrest of the Week: “The pair was pulled over totally nude; one eating a slice of pizza, the other cradling a beer in his feet”
Landmark Links – A candid look at the economy, real estate, and other things sometimes related.
Visit us at Landmarkcapitaladvisors.com