A new housing trend to watch and some good news about Covid – NBC Palm Springs – News, Weather, Traffic, Breaking News
The American dream of homeownership may become beyond the reach of adults who come of age during and around the Great Recession and are building families during and around the pandemic. But this dream may still be for rent.
After spending the past weekend focusing on ending the federal moratorium on evictions and chilling predictions that a wave of repressed evictions is imminent and will primarily affect low-income Americans and people of color, c It was with a whiplash that I read Hanna Ziady’s story for CNN Business Monday Morning.
His title :
Wall Street buys family homes. Rent checks are too juicy to ignore.
It was not the landlords who wrote to me after reading my story this weekend about ending the eviction moratorium and complaining about subsisting on rent from investment property and being hurt by people who do not pay rent.
And they don’t look like tall apartment buildings, but rather single-family suburban developments.
It’s big corporations and institutional investors who analyze the data and come to the conclusion that despite still low interest rates, many Americans can no longer afford to enter homes, and also guess that a The pandemic’s lasting result will be more people working from home, and therefore needing or wanting a bigger house.
Here’s the gist, in Ziady’s words:
Pension funds, investment firms and Wall Street banks are grabbing family homes at a rapid rate in Europe and the United States as prices soar, looking for alternatives to stockpiles. lockdown-hit offices and malls, and are betting that a permanent increase in workers in the wake of the coronavirus pandemic will keep demand for suburban homes high. …
Analysts say it will improve standards in the rental sector and provide more choice in desirable neighborhoods. But some tenants who rent from owner companies dispute this, alleging substandard service and excessive rent increases.
Is this going to push up the prices? It’s not yet clear, she adds. It is a relatively small subset of the single family home market. But it could have an effect. “If the institutions help build new homes, it should lower purchase prices and rents. But if investors are vacuuming existing properties that would otherwise have been sold to individuals, it could squeeze out first-time homebuyers who were already struggling to afford their first home.
We have written many times before about the efforts of house hunters, paying too much the asking price. Others, dejected, abandon the market.
The average price of homes in the United States had never exceeded $ 300,000. Since the pandemic, it has risen to $ 363,000. Home prices are rising faster than US incomes, crowding out new buyers who cannot afford the buyout.
Do not buy. If Millennials – “Generation Rent” – aren’t going to buy their own homes, they represent a long-term income opportunity for anyone who owns the homes they live in. The homeownership rate in the United States fell after the Great Recession to almost 70%. Today, it’s just over 65%.
After the Great Recession, it was hedge funds and private equity firms that took over single-family homes and rented them out. Today, in a shift, it is the pension funds that are looking for solid and guaranteed returns. Investors made up a quarter of all homes sold in the United States in the first three months of this year, according to an estimate cited by Ziady. .
There are several indicators that Americans are not rushing to the office and CNN’s Anneken Tappe writes that this will in fact slow down the economic recovery after the pandemic.
“Love it or hate it, commuting is good for the economy,” she wrote. “You pay train conductors’ salaries with your metro ticket. The office laundry and the local café all rely on workers who have been largely absent for nearly a year and a half. … According to economists at Goldman Sachs (GS), office traffic in major US cities is only about a third of pre-pandemic levels. That’s a lot of employees still working remotely and not spending money on items like train tickets or lattes – the type of economic activity is critical in consumer spending and the economy driven on services in the United States.
Less travel, however, might be the right thing to do. MSCI CEO Henry Fernandez writes an article in Perspectives on how his business isn’t reverting to the five-day office model.
“We have adopted a permanent hybrid model, which means that employees have access to the infrastructure of the office but do not have to use it every day,” he writes. “It aims to encourage adaptation, creativity, a better quality of life, talent retention and operational resilience. A hybrid model not only significantly reduces our operating capital, but also our carbon footprint. For many organizations, moving to a hybrid model has allowed them to reduce office space, lower power consumption and operating costs, and offer competitive salaries to a broader set of talent.
Here’s what else is hard to buy right now. Houses aren’t the only things that are still hard to find because of the pandemic. We have an explanation for the shortages of tacos, coffee, cars, jet fuel, computer chips, Nike shoes and school supplies.
Pick up the pace. The US hits Biden’s target on July 4, about a month late, signaling an increase in vaccinations (a good thing) as the Delta variant spreads (a bad thing).
Here is the latest information from the US Centers for Disease Control and Prevention, compiled by Deidre McPhillips of CNN Health:
Fully vaccinated: 49.7% of the total US population (all ages)
Not vaccinated: 32.4% of the eligible U.S. population (12+)
Current rhythm of vaccinations (7-day average): 441,329 people start vaccination each day. This is the highest since July 4 and a 28% increase from last week’s pace. On average, 673,185 doses are administered each day.
20 states have fully immunized more than half of their residents: California, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington and Wisconsin, as well as Washington , DC.
Alabama and Mississippi are the only states to have fully immunized less than 35% of their residents.
70% of adults have received at least one dose of Covid-19 vaccine, originally the Biden administration’s target for July 4.
20 states have reached this threshold: California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington, as well as Washington , DC.
All states have vaccinated at least half of their adults with at least one dose; Mississippi is the nation’s worst in this metric, with exactly 50% of adults with at least one dose.
Revolutionary cases are still a small minority of the spread of Covid, but there’s a notable one today in Republican Senator Lindsey Graham of South Carolina.
It tweeted: “I feel like I have a sinus infection and I’m having mild symptoms right now. I will be in quarantine for ten days. I am very happy to have been vaccinated because without vaccination I am sure I would not feel as well as I do today. My symptoms would be much worse.
Former President Barack Obama is criticized for hosting a 60th birthday party at Martha’s Vineyard, even though the spread there is “moderate” rather than “high” and the party will take place outside. But it’s not far from Provincetown, Massachusetts, the site of a super-ubiquitous July 4th weekend, which has changed the CDC’s understanding of how vaccines can spread Covid and led to new guidelines for masking.
A source told CNN there will be testing for guests and a Covid security coordinator on site – and the White House is backing Biden’s former boss by saying security protocols are in place.
But we don’t really expect it to be a small party. More than 600 guests and staff are said to be on hand at his Martha’s Vineyard mansion. Pearl Jam will play for the first time in years, according to Axios. It sounds like a thing.
There must be a balance between responsible adherence to public safety guidelines and complete closure.
I have felt a shift in recent days among those most worried about Covid returning to an early pandemic mindset of shutting down many activities. Compare that with the YOLO mindset of Covid skeptics who will not get vaccinated and have contributed to this new wave.
Why can’t people just get vaccinated, wear masks indoors when their community is booming, and get on with their lives and businesses? We have to learn to live with it.
The Supreme Court has rejected a request by a church in Maine to prevent the state from imposing further Covid restrictions.
“The so-called Delta variant of the coronavirus and the threat of an unconstitutionally motivated restriction” hangs over the Calvary Chapel in Bangor, Maine, “like a sword of Damocles,” his lawyers argued in the petition. Judge Stephen Breyer denied the request.
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