Lead Story….. During the housing boom, rents stayed relatively stable while home prices, fueled by cheap and easy credit, went parabolic. Rentals were a (relatively) low cost alternative. Not the case this time around. Rents are rising faster than wages in many parts of the US, putting the squeeze on families as home prices rise as well due largely to low supply. The remaining alternative sucks for everyone.
Not Just Rents: Prices are beginning to rise (modestly) in several corners of the economy.
Fed Watch: Rising prices (and wages) mentioned above, make the Fed more likely to hike rates in September.
Out of the Shadows: So-called “Shadow Lenders” are grabbing a larger share of the commercial real estate markets with banks largely sidelined by tight regulations. Can more regulatory scrutiny be far behind? (h/t Tom Reimers)
Trees Don’t Grow to the Sky: It’s become really difficult to make a case that home prices can outpace income growth for much longer. Especially if rates go up.
Condos Continued: Earlier this week we talked about how the dearth of condo construction was hurting the first-time buyer market. Greg Paquin put together a great follow up to the Wall Street Journal article that we posted.
Rent to Own: Wall Street firms are getting into the rent-to-own market, looking to benefit from consumers with poor credit who can’t yet afford a down payment. If it can be scaled, this could help first time buyers.
Deflated Balls: Even the local press has turned on Tom Brady and his deflated balls (and destroyed cell phone). In related news, police are monitoring Roger Goodell’s summer house in Maine to guard it from crazed townie Pats fans.
Cycle Obsession: Soul Cycle has taken the fitness world by storm.
Chart of the Day
Condo construction is way down, hurting the first time home buyer market.
Chinese Menu: The UC system now has 6 choices for “gender identity” on their application. (h/t Ryan Long)
Most West Virginia Headline Ever: Hooker Shoots dead a ‘Likely’ Serial Killer
Two-Put: Someone has been pooping in the holes of a Norwegian golf course for a decade.
And in Local News: Just another summer in Newport Beach.
Landmark Links – A candid look at the economy, real estate, and other things sometimes related.
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