See the world through the eyes of an economist.
Rental vacancies lifting… a little
Data from SQM show that rental vacancy rates across the country are starting to lift… a little. We used to think of a vacancy rate of 3% being consistent with a balanced market, so we’re still well below that.
Home sales still sluggish
In more news that’s not great for the rental market, detached home sales fell again in the month. There’s a slight upward trend evident there from the trough at beginning of 2023, but it’s still pretty sluggish.
Part of the problem is that houses are expensive to build. This chart looks at construction costs in the Producer Price Index. They lifted sharply with Covid, and haven’t come back at all yet.
Immigration still running strong
Despite promises to rein in student numbers (which may be happening), net overseas immigration continues to post solid numbers. I’d be surprised if these numbers fall too much further from here.
Inflation fears give way to recession fears
Bank of America’s survey of global fund managers suggests that they’re more relxed about inflation and geopolitical risks, but much more concerned about a US recession – which would impact all markets. So far the soft landing seems on track, but there’s a lot of time left on the clock.
Why are kids so difficult?
A survey of managers from ResumeBuilder.com shows that there’s a range of reasons why managers find Gen Z employees difficult. Almost as many managers cited a lack of technical skills as there were managers complaining about Gen Z getting easily offended.
Whatever. Generational divides have been around for generations. We’ve always struggled to understand each other.
And that’s how the world looked through the eyes of an economist this week.
DB.