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The Party Is Over And There Are Going To Be Some Tough Times For Some Developers

A report from the Times Free Press in Tennessee. “The median rent quoted for a typical two-bedroom apartment in Chattanooga jumped 9.9% in the past year as housing prices continued to outstrip the gains in income. But with an abundance of apartment units coming on the Chattanooga market, especially downtown, those quoted higher rates may be offset with generous signing bonuses as landlords try to fill empty units.”

“‘There are lot of higher rates quoted for investors, but there are also as many discounts and sign-up bonuses for new tenants as I have ever seen,’ said John Wise, one of the biggest developers of apartments in and around downtown. ‘I’ve been doing this for 13 years and it’s been a good ride, but I’m afraid the party is over and there are going to be some tough times for some developers.'”

“With the record number of new apartments added in and around downtown in recent years, some projects like the proposed apartments in the First Tennessee Bank building have been delayed while other complexes such as the Market City Center and the former Clemons Apartments have been converted, at least in part, to hotel rooms.”

“‘The Chattanooga real estate market is very hot,’ Marco Santarell of Norado Real Estate Investment said in a report on the local market earlier this year. ‘Homes are selling so fast that some stay on the market only a few hours. The booming economy has made it more difficult for Hamilton County residents to find a home. This shows that the Chattanooga market will remain competitive for both buyers and investors in 2019.'”

“Such market analysis spurred outside investors from Atlanta, Memphis, Birmingham and Knoxville to build hundreds of new apartments in the downtown area. But many of those new developments are now offering price breaks or incentives to help draw residents. ‘There are a lot of incentives to get people to move in right now,’ Wise said. ‘We’ve got a lot of capacity to absorb in the next few years.'”

From Bisnow New York. “Landlord groups have vowed to take the fight against the state’s new rent regulation laws to federal court. But that act of defiance has done little to lift the mood across the industry. ‘General despair is the word … I’m not seeing anyone coming up with any brilliant ideas,’ said Alvin Schein, a partner at law firm Seiden & Schein. ‘[The rent reform package] shut all the doors around it. There are no back doors.'”

“‘I don’t see anything in this law that I could see that makes sense for me … the whole business model has just evaporated up in smoke,’ said Nelson Management Group President Robert Nelson, who said the past few weeks have been ‘hell.'”

“Durst Organization Vice President for Public Affairs Jordan Barowitz said the company’s main concern is buildings that have recently opened and that were built with the 421a tax abatement. Durst’s apartment building in Queens, 10 Hallets Point, which started leasing earlier this year, is the one building in the Durst portfolio that will be affected, Barowitz said. ‘Those buildings are in a tight spot,’ he said.”

From Curbed San Francisco in California. “The Landing, a new high-end apartment complex in Potrero Hill at 1395 22nd Street, wants prospective renters to know that the neighborhood comes without a few 21st-century San Francisco problems. A mailer for the new building—one of which writer Tara Ramroop tweeted last week—asks the public in Mad Libs fashion, ‘Tired of stepping in (blank), on (blank), and over (blank) outside your door? […] A neighborhood apart means that some of the city’s most unsightly (and smelly) sidewalk issues aren’t a problem in Dogpatch.'”

“It goes on to promise streets that are ‘blissfully debris-free.’ (Note that although the building bills itself as being in Dogpatch, it’s located in Potrero Hill.) Although the fill-in-the-blanks marketing means that the building skirts clear of explicitly saying ‘no poop, no needles, no homeless persons,’ the mailer doesn’t leave much to the imagination.”

“The Landing, a 263-unit apartment complex designed by SF’s Perry Architects, opened in May, promising residents ‘life at the next level.’ An April press release promotes the building’s exclusivity. The complex also boasts a singular SF perk: the right to rent your apartment short-term on Airbnb while out of town.”

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This Post Has 132 Comments

  1. ‘There are lot of higher rates quoted for investors, but there are also as many discounts and sign-up bonuses for new tenants as I have ever seen’

    Translation: the REIC lies like hell.

    ‘We’ve got a lot of capacity to absorb in the next few years’

    Eat yer crowz oxide.

    3. I have always said that flooding the market with units might drop rental rates. Back in the day when I rented, my same-unit rent never decreased. But that was 7-8 years ago, before all this new inventory popped up.

      All those free months and signing bonuses are for “new” tenants. After that first year there’s a nice little rent spike.

      That said, developers aren’t going to sustain those high rents. There are a ton of decent houses in the $100-$150K range which can be easily bought for under $1000/month. Commute time isn’t much of an issue, and just how “vibrant” is downtown Chattanooga? There’s not much incentive to rent. I think you’ll see a lot of folks take advantage of the first-year incentive and then move to a house.

        1. “Seattle and Southern California are the big new-comers among the most expensive rental markets whose rents have turned south. In Chicago and Honolulu, apartment rents have plunged since 2015. San Francisco’s rental market had peaked in October 2015, and then rents fell, but in 2018, they started rising again, and now they’re back, or almost back, at their 2015 highs. New York City’s rents peaked in May 2016 and are now down by the double digits.

          In Seattle, where rents had been soaring for years, the median one-bedroom apartment asking rent in June fell 7% from the peak a year ago, to $1,850. The median asking rent for a two-bedroom apartment fell 5% from a year ago to $2,400, and is down 9.4% from the peak in April 2016. Clearly, the phenomenal apartment and condo construction boom over the past few years is having an impact.

          In Southern California, the median asking rent fell in the most expensive cities: In Los Angeles, 1-BR rents fell 7.9% from their peak in December 2018 to $2,230; and 2-BR rents are down 5.7% from their peak in June 2018.

          Los Angeles County, with a population of over 10 million, has been experiencing a net outflow of the labor force and employed people. Since the peak in November 2018, the county has lost 103,000 people in its labor force and 68,700 employed people, and California has begun to panic about losing businesses and people to other states. In San Diego, the median 1-BR asking rent is down 9.7% from its peak in December 2018; and 2-BR rents are down 4.8%. Rents are also down by similar degrees in Santa Ana (Orange County) and Long Beach. More in the table below.”

          It is fantastic to hear that SoCal is finally beginning to achieve its affordable housing goals. It’s incredible that rents are already dropping against the backdrop of a strong economy. If the business cycle ever rolls over, we should expect to see dramatically dropping rents to unprecedented heights of affordability!

          I can’t wait to share this information with the many renters in my personal circle.

      2. Chattanooga? Vibrant? Ya right. I drive thru Chattanooga twice a year and the only vibrant item are the crummy roads because they keep you vibrant/vigilant trying to avoid all the pot holes.

  2. ‘Tired of stepping in (blank), on (blank), and over (blank) outside your door? […] A neighborhood apart means that some of the city’s most unsightly (and smelly) sidewalk issues aren’t a problem’

    Klassy with a K.

    1. “Site likes Apartments.com list units at The Landing starting at more than $3,700 per month for a 535-square-foot studio …”

      Yikes!

      “… climbing as high as $7,000 for a three-bed, 1,100-square-foot home.”

      Lol.

      1. FWIW, I was paying $3,000 for a 700sf 1-bedroom apartment in NYC 16 years ago.

      2. “…$3,700 per month for a 535-square-foot studio …”

        You didn’t mention the gold plated bathroom fixtures, dog walk, free Wi-Fi, or the roof top “get to know you neighbor” Friday kegger nights. <;}}

        Why would someone(s) who are smart enough to generate an income to support $3,700 rent, not realize more economical alternatives? ($3,700/535=$6.90 sq/ft).

        I'll bet you could rent high end office space in LA Wilshire district for a lot less than $6.90/ sq/ft. (Any LA basedcommercial R/E brokers care to comment?)

    2. You know, the only time I ever saw human poop on a sidewalk was in a Mexico border town. Think about how bad things are out there now.

      1. The High Cost of Low-level Crime in San Francisco | City Journal
        https://www.city-journal.org/san-francisco-crime

        (snip)

        “San Francisco is the nation’s leader in property crime. Burglary, larceny, shoplifting, and vandalism are included under this ugly umbrella. The rate of car break-ins is particularly striking: in 2017 over 30,000 reports were filed, and the current average is 51 per day. Other low-level offenses, including drug dealing, street harassment, encampments, indecent exposure, public intoxication, simple assault, and disorderly conduct are also rampant.”

        1. (another snip)

          “Property and other supposedly low-level crimes are intensifying the destruction of the retail market. Landmark Mission District stores are shuttering, citing theft and lack of security. In April, CVS closed two pharmacies that had been ravaged by constant shoplifting. Mom-and-pop businesses, wracked by so-called minor losses, find it impossible to survive. Empty storefronts dot once-vibrant neighborhoods.”

          1. Car but no home? Safe parking lots spread across West Coast.
            Christian Science Monitor-22 hours ago
            Affordable housing built to replace parking lots? … now dot cities from San Diego to Seattle, with some officials trying to figure out how to scale up their programs.

          2. NYC Ranks Among Worst-Run US Cities for the Third Time in a Row: Study

            ‘Yale Law School professor David Schliecher said one of the most important issues facing cities across the country is housing, and New York has one of the biggest housing problems. “In many rich cities like San Francisco and New York, local governments have used their regulatory powers to make it difficult for private developers to build enough housing to meet demand,” Schliecher said.’

            ‘The result? Sky-high prices for those looking for a new home or struggling to stay in their current one. All the while, property owners benefit from the gains of economic growth, Schliecher said.’

            https://www.nbcnewyork.com/news/local/NYC-Ranks-Among-Worst-Run-US-City-for-the-Third-Time-in-a-Row-Study-512065341.html

          3. I think San Francisco represents what would happen if extreme left wing policies were adopted Nationwide.

          4. Car but no home? Safe parking lots spread across West Coast.

            From the article:

            “As my husband said, ‘If we can live in safe parking, we can live in a house without hot water, a stove, and stuff like that.’”

        2. When you have a large population of addicts living homeless on the city streets, rampant property crime is a given. How else are these people going to fund their habits?

        3. I was in CVS in my San Diego neighborhood recently and a guy walked in, filled up a basket, and walked right out passed the security cameras without paying. One of cashiers ran after him but he just ignored her and kept walking. He didn’t even run. Just casually walked off with a basket of stolen goods. They must not be prosecuting petty theft anymore. Can’t walk a few blocks to the store anymore without seeing homeless people huddled on green patches next to the side walk. The McDonalds on the corner almost always has at least one homeless person shuffling around inside wrapped in a blanket. 1200-1300 sq ft fixer uppers are selling for 550-600K. Strange days indeed.

          1. He didn’t even run. Just casually walked off with a basket of stolen goods.

            I saw that happen in Folsom when I first got here last year with shoes. The store employees knew it was going to happen and called security 10 minutes before but they never showed. Employees tried to stop here but they’re not allowed to touch the customers, only the merchandise and only as long as it’s inside the store. So they tried to block the door like a hockey goal but she threw the shoes past them, walked past, picked up the shoes and ambled on.

      2. The last Republican Mayor of San Francisco left office in early 1964. All majority blue cities now this way. Not materially different than Socialist dictatorships of North Korea, Cuba, Venezuela. “Sanctuary Cities”? That just means open rebellion against the freedoms guaranteed to the (legal) citizens of the Constitutional Republic. Why? Greed and power. More uneducated, low-skilled, dependent illegal immigrant serfs just adds to the power base. CA channeling Venezuela… Becoming just another sh*thole 3rd world banana republic. Elites gotta elite.

        1. As far as politics goes, I don’t think there’s a dime’s worth of difference between these 2 classes in San Francisco.

          More uneducated, low-skilled, dependent illegal immigrant serfs
          Vs
          ‘More educated, high-skilled, independent legal immigrant serfs’

        2. With the current supermajority, there is no turning back. The crazy train will just keep gathering momentum. Have to laugh your way through it or move to another state.

      3. Think about how bad things are out there now.

        It’s probably better in Mexico now. Those people are here in CA getting free healthcare and more.

      4. Come to Seattle. It’s on the street, on the walls of the bus stops, milk jug gallons of yellow liquid left on the sidewalks. Stepping over, around it here too. Disgusting. Check out Safe Seattle blog. You will be ah-mazed.

  3. ‘‘General despair is the word …I don’t see anything in this law that I could see that makes sense for me … the whole business model has just evaporated up in smoke’…the past few weeks have been ‘hell’

    But New York will always be prime airbox country? Come on you greedy bashtards, turn those frowns upside down!

    1. “… the whole business model has just evaporated up in smoke”.

      As in “poof”. And as for the money that was thrown at this genius of a business model? Also poof.

      1. The “business model” in question, of course being to continually gouge workers with steep rent increases year after year until they are handing over 75% of their take home pay for a 500sf cage.

        My heart bleeds for these poor unfortunate real estate magnates.

  4. “Google has committed to a $1 billion plan that would help build 20,000 homes in the Bay Area over the next decade. But that round number represents the smallest of down payments on what has become the region’s thorniest problem. A new apartment in the Bay Area costs about $700,000 to build, including land and fees, said Cynthia Parker, CEO of Bridge Housing, a major nonprofit developer in San Francisco. The price tag on 20,000 units could be more than $14 billion.” (San Francisco Chronicle)

    https://www.sfchronicle.com/business/article/Google-wants-to-build-20-000-homes-It-may-need-14062529.php

      1. More whining from low life politicians.

        Don’t like Google, DONT USE IT.

        Either accept It’s a private company and google is free to run their business anyway they like OR pass some laws making it illegal to report false user counts/bot clicks and surveilling people without their written consent.

        I know where the low life politicians stand on this issue.

        1. Either accept It’s a private company and google is free to run their business anyway they like OR pass some laws making it illegal to report false user counts/bot clicks and surveilling people without their written consent.

          Or start anti-trust proceedings. But yes, if they are small enough to avoid anti-trust issues, then they are free to do what they want with their website.

        2. More whining from low life politicians.

          A former Navy SEAL who lost his right eye in Afghanistan because of an IED. Wow!

          2. I’m thankful for men like him however misguided the MIC is. That you consider him a low-life in any respect is disrespectful of his sacrifice.

          3. Not so much as directed at him personally, but to the whole politician class, to which he belongs now.

            Sacrifice? Well, that’s debatable….let’s just leave it at that.

        3. Google and all the other giant internet platforms receive immunity from legal liability as to content. Ostensibly because they are politically neutral and unfiltered regarding storage and transmission of data…which they are not in actual practice. So they are not a private business that can operate as they wish. They are beholden to the special provisions they are granted….even though enforcement has been nonexistent.

    2. “…The price tag on 20,000 units could be more than $14 billion.” (San Francisco Chronicle)…”

      Wouldn’t be a lot cheaper to move the entire company out of SF (or even California)?

      (You mean no more poop on the streets and used heroin needles?)

      1. Wouldn’t be a lot cheaper to move the entire company out of SF (or even California)?

        Yes. The problem is that the key people won’t go. Yet.

    3. Why can’t Google spend that 1 billion on building a new campus in, say, Springfield, Missouri or Washington, Pennsylvania? Or better yet both? Put 10,000 jobs in each city and rehab 10,000 existing houses in each city. The existing infrastructure can probably handle it.

      2. The SF Bay Area has the skilled workforce with its vast educational opportunities, large diverse population able to address global product reach, great weather, etc., which most places will never develop.

        My last trip to San Jose ended with a drive back north to Washington, first gas stop in Red Bluff, CA. The windshield squeegee was in tatters and the cleaning fluid was empty, their pay-app interface was down, the restroom was filthy, my fast-food order was mixed-up, those expressionless employees likely haven’t learned anything new in years, etc., and I’m only 2-hrs away! For all its problems, the SF Bay Area really is different.

  5. How good are Zillow estimates in the Si Valley area? Was watching a home in 95129 (near Cupertino) that sold for 1.88M a year ago. Zillow estimates it now as worth 1.72M

  6. Another home nearby was listed at 1.595M Looks like there were no takers. They slashed it by 245K to 1.35M It has now gone on sale pending. Not sure if the sellers got 1.35M or a bit higher.

    1. Entertainment icons snapping up investment properties is a good crash indicator.

        1. “Nicolas Cage was once a top earner in Hollywood, worth $150 million.

          But Cage didn’t hold on to his fortune for long. He squandered it away on a string of expensive and often eccentric purchases, eventually facing foreclosure on several properties and owing the IRS $6.3 million in property taxes.

          Now worth around $25 million, Cage is taking roles left and right to help pay off his debts.”

          (25/150-1)×100% = -83% loss…

          I thunk that even a 50% loss was unpossible in this red hot real estate market!

      2. Yo ho, yo ho,
        A pirate’s life for me..

        How Johnny Depp lost his fortune

        In the 1990s and early 2000s, Johnny Depp was on top of the world. From his television beginnings on 21 Jump Street to Edward Scissorhands (1990) to Donnie Brasco (1997) to becoming the face of Pirates Of The Caribbean franchise in 2003’s Curse Of The Black Pearl, Rolling Stone estimated that Depp’s films have grossed $3.6 billion at the box office, netting him a cool $650 million over time.

        That $650 million is toast, and Depp’s net worth is estimated to be $200 million — if that, considering his bank accounts were at one point “almost $4 million overdrawn” and his financial managers worried in January 2016 that he only “had 30 days of liquidity left.” And that’s without mentioning the $40 million debt that sparked the falling-out between the Black Mass star and his moneymen.”
        …

  9. ‘no poop, no needles, no homeless persons’

    Why is it again that everybody wants to live in San Francisco?

    1. When the best advertising a complex has is that they don’t have the poop, you know we we have entered into a new bizarre world.

      1. “Hey we have more human poop that Juarez, but what do you expect for $4,000 a month?”

        1. If they are all used, that’s a lot of needles. Looks like the whole city is full of addicts not just the homeless.

        2. I certainly hope the steep income tax bill I pay CA state every year doesn’t go towards supporting others’ narcotics habits.

        3. Works out to a needle a day for the whole year for about 1 in every 70 residents of the city. Do most junkies shoot up everyday or are most users less than once a day? If the latter, it means more than one in every 70 people in SF is shooting drugs? And that only counts the needles they track. On top of that you’ve got the alcoholics, pill poppers, smokers, and snorters of various stripes. Sounds like a bad scene.

          1. But when I pointed out the drug use in California a few months ago, a poster insisted drug use out there was lower than everywhere else. I don’t see needles piling up in other places. Maybe somebody is a lion?

  11. Newest hate crime in Oregon: single family shacks:

    ‘In a challenge to the conventions that have underscored more than 40 years of local activism, Eudaly, the commissioner in charge of outreach to neighborhoods, said many Portlanders view themselves less as members of neighborhoods than as a part of ethnic, religious or other non-geographic affinity groups.’

    “Personally, I am more likely to identify as someone in the disability community or as a renter than as a neighborhood resident,” the commissioner said.’

    ‘Winta Yohannes, Eudaly’s aide assigned to the code change effort, said the complaints of neighborhood association board members do not reflect Portlanders’ views. “Why should we elevate them over other groups?” Yohannes said.’

    ‘Asked to provide an example of another group that should be on equal footing, Yohannes said Portland United Against Hate, a coalition of 70 organizations that track and respond to “acts of hate,” according to a city webpage.’

    ‘Comments such as those have led neighborhood activists who are white or not religious or don’t speak another language to ask: What group speaks for me if not my neighborhood association?’

    ‘Consider Allen Field. His foray into neighborhood politics began 15 years ago over a typical small-time issue: dog parks. The board of the Richmond Neighborhood Association was stacked with “dog haters,” said Field, 58, an attorney in private practice. So, he ran for election to the board and recruited other canine admirers to do so. The slate won and used the association’s influence with the city to designate a section Sewallcrest Park for dogs to roam off-leash.’

    https://www.oregonlive.com/portland/2019/07/emotions-flare-as-portland-long-friendly-to-neighborhoods-weighs-gutting-their-powers.html

    Identity politics has all sort of rabbit holes.

    1. I’d like to point out that the majority of you guys are human poo and needle haterz. I suggest some sensitivity training. Or you’ll be smacked down by antifa naziz.

      1. I have always been a poop and needle hater, therefore I’m a hater. All haters are racist don’t you know.

        1. Stepping around sidewalk poop is a bigoted microaggression against the non-housed community, borne of a stunning sense of entitlement and White privilege. Please report to the commissar’s office for your hate assessment and re-education enrollment.

    2. Q. What is one to do when he witnesses liberals eating their own?

      A. Pop up a batch or two of popcorn and settle down into a lawn chair.

      1. Portland is IMO the primary target of the marxists plan to grow the revolution from within. They infiltrated higher education indoctrinating young empty skulls, ran for political office, and are now hell bent on creating their utopia which includes the destruction of suburban areas by reducing/eliminating transportation for cars. Read Wired magazine – bolshevik city planners are purposely forgoing the carrot and instead using the stick to force people out of their cars and into public transportation, even as bus ridership is falling off a cliff in most sh!thole cities. Its from the “progressive” playbook of Le Corbusier, who felt everything that exists needs to be destroyed and only new ideas/concepts must battle it out for supremacy. The marxists want to force everyone to live with everyone else, eliminating your ability to choose where you live and who you live among. Poop, needles, out of control crime? Thats YOUR problem if you dont like it!

        Its seriously evil stuff, and we see their fruits already in cities like Seattle, Portland, SF and LA.

      2. “With the current preparedness levels of Oregon, we can anticipate being without services and assistance for at least 2 weeks, if not longer, when the Cascadia Subduction Zone earthquake occurs.”

        If you can’t bug-in for two weeks something is wrong.

        1. While California embarked on a seismic retrofit program for its aging unreinforced masonry buildings over 20-yrs ago, both Oregon and Washington have done little to nothing.

    4. ‘Comments such as those have led neighborhood activists who are white or not religious or don’t speak another language to ask: What group speaks for me if not my neighborhood association?’

      It’s racist to even ask that question.

  12. Identity politics is now killing Biden and Bernie’s polling numbers. Looks like the primary is going to turn into trench warfare

      1. So how are they going to play among blue collar white males? Honestly for Warren I do not even see her turning out minority blue collar males in historical numbers.

        1. If they get enough minorities and nut-ball lefties, they may not need the blue collar males. Despite what the Electoral College says, Trump won in a squeaker. A few switched votes in the Rust Belt will tip the scale back to Dems. The real question is whether the African-American vote will turn out for Harris.

        1. c**k

          Disregarding the advent of non-binary genders, whore would be the more appropriate word choice in this particular situation. With Harris, they certainly have that.

      3. It appears the powers want Harris or Warren.

        It wasn’t long ago that they seemed to have no interest in Warren at all. That would be an interesting switch.

        1. I’m just going by who the main stream news tried to prop up after the debates and call them the winners of the two debates.

          You know, it’s gotta be a women, she gotta be super left wing, gotta have a bunch of give aways to hit all sectors of the population they could never deliver on.

    2. All DJT has to do is sit back, watch the circular firing squad, then pull the opposition research trigger once the chosen one has been annointed.

        1. He’ll live tweet and throw in some little jabs here and there but the big punches will come later. (My apologies for the bad mixing of metaphors.)

      2. I am not a fan of the national debt at over $22 trill. I’ll be looking fwd to draining the swamp in 2020. 99% has been getting ripped off for too long.

        1. I think you are forgetting by the time he took over we were close to a twenty trillion dollars debt and Obama had run up nine trillion

          1. Yep, Congress (GOP) controls spending and trump said the Bush Mistake (wars) cost us $7 trill.

  13. It seems the amenities being advertised are not even under their control. Eventually the homeless can be on their sidewalks without city enforcement so I hope they are not signing long leases. Also in some ways the entire complex seems to be geared towards Airbnb. Of course, they cannot guarantee the city will not restrict those rentals. But in the meantime you can advertise the area as safe and just use the place for short-term rentals, anybody who actually wants to live in the place is a fool

    1. I still can’t figure out what kind of dummy wants to stay in a 500sf Air BnB unit out in the suburbs that takes 30 minutes to get into downtown by train or 45 by car (in soul-crushing traffic), when there are a ton of nice hotels right next to all the amenities and places of business, at comparable prices. It just makes no sense as a business, except for the novelty factor which will surely wear off in the next few years.

      1. My experience in both San Jose and Folsom was that Airbnb was significantly less than the generic Marriott-class hotels in the same area if you were willing to take a separate entrance/master bedroom class room attached to a house where the host was living. If you want the whole place then yes. I’m talking Airbnb just as close to work as a hotel. Or even closer.

        1. I guess that makes sense but even then, I don’t see the appeal. Having to stay in a place that the host (with their spouse, children, and/or other roommates) is occupying would be a nightmare to someone like me who just wants a quiet place to be left alone and get my computer work done. I don’t want to be making smalltalk with strangers on my way to the bathroom or kitchen. I don’t want to listen to children running around or the blaring TV in the next room while I’m concentrating. For people traveling on business it seems that saving a few bucks wouldn’t be a very big consideration, since their companies are paying the costs most of the time anyways. I guess I could see it for a small business entrepreneur who needs to travel on a shoestring budget and has to stay in one area for more than a week, but I can’t imagine there are many such cases.

          I must be missing something but I just don’t see why there’s a demand, except for partiers, prostitutes, drug dealers, and other shady outfits. Or maybe the occasional family on vacation.

          1. When you have your own entrance usually you never see them. I kind of liked it for long term stays. Access to a washer and dryer is always nice compared to a hotel.

      2. I run 15 short-term rentals. There are lots of reasons why people chose a short-term rental vs. hotel. Price is just one of them. All of our units have washer/dryer and a full kitchen. Also, they are self check-in (for guests with multiple 5-star reviews), so it is very convenient.

      1. There’s a solution for those who really want go become free of the sh1t.

        Their choice.

    2. $ince 1926! = $oft.landing$ … Go dog, GO!

      (Isn’t the Powell$ Federal Fund$ punchbowl expected to depo$it x3 gloriou$ dtRump, Kudlow, Ha$$ett, Mnuchin, Moore & Ro$$ LLC. 1/2% interest rate reductions bye Dec 31$t 2019?)

      “They’re thrilled to be welcomed and to have a $oft landing,” Blaylock said of the Tarbell agent$.

      Neither Stark nor Blaylock would say if the market $lowdown of the past year played a role in Tarbell’s$ decision to $ell.

    1. I$ the company offering to purcha$e their $helter.$hacks so they can $kaddle lickety.$plit in 6-9 month$ to Coolsville, AZ?

      Opendoor lays off 50, asks hundred$ to relocate to Phoenix
      Makes plans to beef up Arizona headquarter$
      July 1, 2019 Jessica Guerin

      $ources close to the company told Bloomberg that Opendoor laid off 50 of its 1,300 employees last month, and that it has asked as many as 300 working in offices around the country to relocate to its Phoenix headquarter$. According to Bloomberg, those employees have six to nine months to decide whether the want to make the move or leave the company.

      Last month, The Wall Street Journal published a story on the iBuyer market, calling Phoenix a “petri di$h” for companie$ using computer model$ to buy and $ell home$ at a profit.

      According to the article, Phoenix is an “ideal proving ground” because it’s one of the country’s fastest-growing metro areas, plus the houses are relatively inexpen$ive and homogenou$, which helps the algorithmic apprai$als that help the high-tech flipper$ to spot opportunitie$ for profit.

      Opendoor, which launched in 2014, is one of a number of these so-called iBuyers that have set out to change the way Americans buy and sell homes by whittling the process down to a few simple online transactions.

      The concept is to eliminate the pain point$ a$$ociated with the home-$elling proce$$, and the idea appears to be re$onating.

      https://www.housingwire.com/articles/49475-opendoor-lays-off-50-asks-hundreds-to-relocate-to-phoenix

      1. From the article:

        “The think, ‘We can scale this, and once we scale, then we can operate profitably.’”

        Famous last words of MoviePass.

        1. “Famous last words of MoviePas$$”

          eye think my 500 $hares used for a “teaching le$$on” are now valued @ $1.12

      2. Happy for you!

        Love $pending only $25 in a “real.time” demon$tration of fooli$h investment$!

  19. Arizona Blocks Nike After Kaepernick-Complaint Sparks Virtue-Signaling Sneaker Ban

    “So, it’s clear that Nike’s ‘foreign policy’ means ignoring ‘the resistance’ in Hong Kong (cow-towing to the totalitarian Chinese government who control access to all those middle-class Chinese citizens for Nike) but cowtow to ‘the resistance’ in America in a virtue-signaling extravaganza.”

    The AZ governor was smart to pull financial support for more reasons than he may realize. Nike is headquartered in the Portland metropolitan area. I would love to see a Venn diagram of Nike employees and Antifa members.

  21. even more condo construction in Seattle. It will be across the street from the previous (almost same design) – that had costly sale prices – including $700K for a 1 bdrm

    ——
    The former site of Antioch University, on 6th Avenue between Bell and Battery streets, will officially be a two tower condominium project and will contain more than 900 condo units in two 45 story towers. The project will be called Seattle House.

    DETAILS:
    Two 45 story towers
    More than 900 units
    Construction to start late summer 2019 with both towers being built simultaneously over a single 12 story podium
    Podium will contain a long-term stay hotel
    Proposed amenities: party room with terrace, pet area, yoga room
    Developer is Concord Pacific out of Vancouver Canada
    Architect is VIA Architecture
    Contractor is JTM

    1. Earnings recession risk increases as a flood of warnings hit
      By Tomi Kilgore
      Published: July 2, 2019 4:13 p.m. ET
      S&P 500 earnings set to decline for a second straight quarter, and maybe a third
      Getty Images

      The S&P 500 looks set to suffer its first earnings recession in three years, as the number of companies cutting guidance is among the highest seen in the past 13 years.

      The unofficial start of the second-quarter earnings reporting season is less than two weeks away, and preliminary reports suggest the outlook keeps getting worse. The blended year-over-year growth estimate for earnings per share for the S&P 500 (SPX, +0.29%), which represents already reported results and the average analyst estimates of coming results, is negative 2.82% as of midday Tuesday, with six of 11 sectors estimated to post declines, according to data provided by FactSet.

      Actual reports, however, have been much worse. With 20 of the 505 S&P 500 companies, or about 4%, having already reported results, actual reported EPS is down 14.69% from a year ago.

      Adding to the negative outlook, 113 S&P 500 companies have issued EPS guidance as the second quarter ended, with 87 companies, or 77% of that total, providing guidance that was below the average estimate of analysts. That is well above the five-year average of 74 companies that warn of earnings misses, and the second most since FactSet began tracking data in 2006.

      The only time the number was higher at this stage was in the first quarter of 2016, when 92 companies warned of earnings misses. Overall EPS fell 6.58% that quarter, FactSet said.

      The negative outlook comes after a 0.29% EPS decline in the first quarter. An earnings “recession” is often defined as two straight quarters of declines.
      …

      1. The decrease in earnings is already known, the market just hit a record high. It is not a Black swan event which causes a major correction. A lot of that decline is weak overseas earnings which hardly says anything about the US economy. TINA is in play with low yields in the bond market caused in part by money flowing into our market since we are in better shape than our rivals.

        1. “A lot of that decline is weak over$eas earning$ which hardly says anything about the U$ eCONomy. ”

          Another True.Believer in a $ynchronized Global $low.down = $oft.Landing$ for all!

      2. “preliminary reports suggest the outlook keeps getting wor$e.”

        19 month$ ago: dtRump, Kudlow, Hassett, Mnuchin, Moore & Ro$$ LLC. :

        “Trade Wars are ea$y!

        Today 07/02/2019:

        “Trade War$ are “Complicated”

        White House trade advi$or Peter Navarro: ‘Complicated’ U$-China talks ‘will take time’

        PUBLISHED | 07/02/2019 |Kevin Breuninger| CNBC

        U.S.-China trade talks may have restarted, but a potential deal is still a ways off, White House trade advisor Peter Navarro tells CNBC.

        “We had a deal that was over 150 pages long with seven different chapters” at the time the negotiations flamed out, Navarro says on CNBC’s “Squawk on the Street,” which is “the basis now for moving further forward.”

        Treasury Secretary Steven Mnuchin had said last week that the U.S. had been “90% of the way” on China. But Navarro cautions that “this will take time, and we want to get it right.”

        Thee Dow: $ame as it was on Sept 19th 2018: 26,743.51

    2. Looking on the bright side, the earnings recession may increase the political pressure on the Fed to cut rates deeper and more quickly…

      1. “Eye believe in a $trong U$ Dollar!”

        “They are so twi$ted, they can’t stand in the shadow of a cork$crew”

        Trump taps gold proponent Shelton, economist Waller to Fed board

        By VICTORIA GUIDA | 07/02/2019 | Politico

        Shelton was a longtime critic of the Fed’$ effort$ to keep rate$ low in the wake of the 2008 financial crisis, telling The Wall Street Journal in 2016 that “ultralow intere$t rate$” have “flooded wealthy investor$ and corporate borrower$ with cheap money, while saver$ with ordinary bank accounts have been obliged to accept next-to-nothing return$.”

        In an interview with the Journal last week, she sounded a different note, saying rate$ should be reduced.

        Still, there is at least some sign that Shelton might cla$h with Trump’$ vi$ion. Shelton has repeatedly called for the Fed to return to its pre-cri$is approach to setting monetary policy, something that would require the central bank to $hrink the amount of a$$ets it holds.

        The Fed is currently shrinking its balance sheet, another policy that has drawn the wrath of the president.

        Kudlow suggested in a 2016 tweet that Trump should put Shelton on the board, highlighting her support for a $trong dollar. Multiple times in the past year, Trump has bemoaned the fact that the central bank’$ policie$ have had the effect of $trengthening the dollar, which makes import$ cheaper and export$ more expen$ive.

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