The Economy

Like I say, my wife is on top of it. She knows what she's doing, and she's the reason I'll be able to retire fairly comfortably. It has zero to do with me.

 

"Only" and "always" are doing A LOT of work in yours.

 

Whenever we question a company’s decisions, we’re given long analysis based on general market principles and very, very little nuance. What’s fair is fair, no?

 

Indeed.

But specific to our discussion here of sector-wide tech layoffs; CVS being understaffed; and Southwest Airlines not upgrading its own critical infrastructure, it feels fair.

 

https://www.curbed.com/2023/01/nyc-real-estate-covid-more-apartments-higher-rent.html

 

Because the free market can never be manipulated.

 

So I spent yesterday accompanying a friend touring new build homes in the Inland Empire. We visited six communities, including two from DR Horton, the largest in the country.
My takeaway: the economy is fucked.
None of the communities had more than 7 units available, including both “quick move ins” and available lots. Most of the QMI were units that fell out of escrow in the past 2 weeks.
Worse, three of the communities told us they have paused all new construction. One of them admitted “we are overhauling all of our plans for the future due to the collapse.” She admitted that if the builder stays in the community they’ll be offering much lower-end homes. Right next to brand new ones that cost $700k a month ago. No thanks.
California’s housing crisis is gonna roll on for months to come.

 

I fall more into the category "higher mortgage rates have slowed buying, thereby driving up rent."

Still, The DOJ Has Opened an Investigation Into RealPage — ProPublica

 

The real estate market here has been a welter of competing interests, graft, insiderism, do-gooderism, information asymmetries, payola and influence peddling from the time of Peter Minuet.

 

Oh, it's fair (insofar as I understand what's meant by that in this context). But there's hardly anything in this vale of tears that falls into "only"/"always" territory. People who stick to a low-fat, high-fiber diet don't always outlive those who tuck into Buffalo wings and tater tots three times a week, but that doesn't mean that a low-fat, high fiber diet is a bad idea.