Vivek Ramaswamy blasted Bank of America for its move to provide home loans “without down payment” to people from Black and Hispanic Communities.
Taking to X, Ramaswamy wrote, “Mark my words: This act of “anti-racism” today will be called “systemic racism” tomorrow – when minorities end up defaulting on these loans.”
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What is Bank of America’s new move?
Bank of America stated that Community Affordable Loan Solution is available for properties in Black/African American and Hispanic-Latino communities in places including Charlotte, Dallas, Detroit, Los Angeles and Miami. Eligible people can obtain an affordable loan to buy a home as a result of this move.
“The Community Affordable Loan Solution is a Special Purpose Credit Program which uses credit guidelines based on factors such as timely rent, utility bill, phone and auto insurance payments,” Bank of America said online, adding that no mortgage insurance or minimum credit score will be needed.
The eligibility of the individual is based on income and home location, it said, adding that any individual from “any race or ethnicity is welcome to apply.” “This new program is in addition to and complements Bank of America’s existing $15 billion Community Homeownership Commitment to offer affordable mortgages, industry leading grants and educational opportunities to help 60,000 individuals and families purchase affordable homes by 2025,” the bank wrote.
The National Association of Realtors states that there is almost a 30-percentage-point gap in homeownership between White and Black Americans. The gap is nearly 20 percent when it comes to Hispanic buyers, making it significantly difficult for people of colour to purchase homes.
“Homeownership strengthens our communities and can help individuals and families to build wealth over time,” said AJ Barkley, head of Neighborhood and Community Lending for Bank of America. “Our Community Affordable Loan Solution will help make the dream of sustained homeownership attainable for more Black and Hispanic families, and it is part of our broader commitment to the communities that we serve.”
If you spent your teenage years waiting anxiously for one of your siblings to get out of the shower, the idea of selling your spacious, multi-bathroom home and moving into a smaller house or condo may feel like a reversal of fortune.
Yet for many retirees, downsizing makes financial and practical sense. Younger baby boomers — those currently ranging in age from 57 to 66 — made up 17% of recent home buyers, while older boomers — ages 67 to 75 — accounted for 12%, according to a 2022 report from the National Association of Realtors Research Group. Boomers’ primary reasons for buying a home were to be closer to friends and family, as well as a desire to move into a smaller home, the report said. Both younger and older boomers were more likely than others to purchase a home in a small town, and younger boomers were the most likely to buy in a rural area.
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For retirees Fred and Shelby Bivins, selling their home in Green Valley, Ariz., will enable them to realize their dream of traveling in retirement. The Bivinses have put their 2,050-square-foot Arizona home on the market and plan to relocate to their 1,600-square-foot summer condo in Fish Creek, Wis., a small community about 50 miles from Green Bay. They plan to live in Wisconsin in the spring and summer and spend the winter months in a short-term rental in Arizona, where they have family.
Fred, 65, says the decision to downsize was precipitated by a two-month stay in Portugal last year, one of several countries they hope to visit while they’re still healthy enough to travel. “We’ve had Australia and New Zealand on our list for many years, even when we were working,” says Shelby, 68. The Bivinses are also considering a return visit to Portugal. Eliminating the cost of maintaining their Arizona home will free up funds for those trips.
With help from Chris Troseth, a certified financial planner based in Plano, Texas, the Bivinses plan to invest the proceeds from the sale of their home in a low-risk portfolio. Once they’re done traveling and are ready to settle down, they intend to use that money to buy a smaller home in Arizona. “Selling their primary home will generate significant funds that can be reinvested to support their lifestyle now and in the future,” Troseth says. “Downsizing for this couple will be a positive on all fronts.”
Challenges for downsizers
For all of its appeal, downsizing in today’s market is more complicated than it was in the past. With 30-year fixed interest rates on mortgages recently approaching 8%, many younger homeowners who might otherwise upgrade to a larger home are unwilling to sell, particularly if it means giving up a mortgage with a fixed rate of 3% or less. More than 80% of consumers surveyed in September by housing finance giant Fannie Mae said they believe this is a bad time to buy a home and cited mortgage rates as the top reason for their pessimism. “This indicates to us that many homeowners are probably not eager to give up their ‘locked-in’ lower mortgage rates anytime soon,” Fannie Mae said in a statement. As a result, buyers are competing for limited stock of smaller homes, says Hannah Jones, senior economic research analyst for Realtor.com.
Here, though, many retirees have an advantage, Jones says. Rising rates have priced many younger buyers out of the market and made it more difficult for others to obtain approval for a loan. That’s not an issue for retirees who can use proceeds from the sale of their primary home to make an all-cash offer, which is often more attractive to sellers.
Retirees also have the ability to cast a wider net than younger buyers, whose choice of homes is often dictated by their jobs or a desire to live in a well-rated school district. While the U.S. median home price has soared more than 40% since the beginning of the pandemic, prices have risen more slowly in parts of the Northeast and Midwest, Jones says. “We have seen the popularity of Midwest markets grow over the last few months because out of all of the regions, the Midwest tends to be the most affordable,” she says. “You can still find affordable homes in areas that offer a lot of amenities.”
Meanwhile, selling your home may be somewhat more challenging than it was during the height of the pandemic, when potential buyers made offers on homes that weren’t even on the market. The Mortgage Bankers Association reported in October that mortgage purchase applications slowed to the lowest level since 1995, as the rapid rise in mortgage rates has pushed many potential buyers out of the market. Sales of previously owned single-family homes fell a seasonably adjusted 2% in September from August and were down 15.4% from a year earlier, according to the National Association of Realtors. “As has been the case throughout this year, limited inventory and low housing affordability continue to hamper home sales,” NAR chief economist Lawrence Yun said in a statement.
However, because of tight inventories, there’s still demand for homes of all sizes, Jones says, so if your home is well maintained and move-in ready, you shouldn’t have difficulty selling it. “The market isn’t as red-hot as it was during the pandemic, but there’s still a lot to be gained by selling now,” she says.
Other costs and considerations
If you live in an area where real estate values have soared, moving to a less expensive part of the country may seem like a logical way to lower your costs in retirement. While the median home price in the U.S. was $394,300 in September, there’s wide variation in individual markets, from $1.5 million in Santa Clara, Calif., to $237,000 in Davenport, Iowa. But before you up and move to a lower-cost locale, make sure you take inventory of your short- and long-term expenses, which could be higher than you expect.
Selling your current home, even at a significant profit, means you will incur costs, including those to update, repair and stage it, as well as a real estate agent’s commission (typically 5% to 6% of the sale price). In addition, ongoing costs for your new home will include homeowners insurance, property taxes, state and local taxes, and homeowners association or condo fees.
Nicholas Bunio, a certified financial planner in Berwyn, Pa., says one of his retired clients moved to Florida and purchased a home that was $100,000 less expensive than her home in New Jersey. Florida is also one of nine states without income tax, which makes it attractive to retirees looking to relocate. Once Bunio’s client got there, however, she discovered that she needed to spend $50,000 to install hurricane-proof windows. Worse, the only home-owners insurance she could find was through Citizens Property Insurance, the state-sponsored insurer of last resort, and she’ll pay about $8,000 a year for coverage. Her property taxes were higher than she expected, too. When it comes to lowering your cost of living after you downsize, “it’s not as simple as buying a cheaper house,” Bunio says
Before moving across the country, or even across the state, you should also research the availability of medical care. “Oftentimes, those considerations are secondary to things like proximity to family or leisure activities,” says John McGlothlin, a CFP in Austin, Texas. McGlothlin says one of his clients moved to a less expensive rural area that’s nowhere near a sizable medical facility. Although that’s not a problem now, he says, it could become a problem when they’re older.
If you use original Medicare, you won’t lose coverage if you move to another state. But if you’re enrolled in Medicare Advantage, which is offered by private insurers as an alternative to original Medicare, you may have to switch plans to avoid losing coverage. To research the availability of doctors, hospitals and nursing homes in a particular zip code, go to www.medicare.gov/care-compare.
At a time when many seniors suffer from loneliness and isolation, a sense of community matters, too. Bunio recounts the experience of a client who considered moving from Philadelphia to Phoenix after her daughter accepted a job there. The cost of living in Phoenix is lower, but the client changed her mind after visiting her daughter for a few months. “She has no friends in Phoenix,” he says. “She’s going on 61 and doesn’t want to restart life and make brand-new connections all over again.”
Time is on your side
Unlike younger home buyers, who may be under pressure to buy a place before starting a new job or enrolling their kids in school, downsizers usually have plenty of time to consider their options and research potential downsizing destinations. Once you’ve settled on a community, consider renting for a few months to get a feel for the area and a better idea of how much it will cost to live there. Bunio says some of his clients who are behind on saving for retirement or have high health care costs have sold their homes, invested the proceeds and become permanent renters. This strategy frees them from property taxes, homeowners insurance, homeowners association fees and other expenses associated with homeownership
The boom in housing values has boosted rental costs, as the shortage of affordable housing increased demand for rental properties. But thanks to the construction of new rental properties in several markets, the market has softened in recent months, according to Zumper, an online marketplace for renters and landlords. A Zumper survey conducted in October found that the median rent for a one-bedroom apartment fell 0.4% from September, the most significant monthly decline this year.
In 75 of the 100 cities Zumper surveyed, the median rent for a one-bedroom apartment was flat or down from the previous month. (For more on the advantages of renting in retirement, see “8 Great Places to Retire—for Renters,” Aug.)
Aging in place
Even if you opt to age in place, you can tap your home equity by taking out a home equity line of credit, a home equity loan or a reverse mortgage. At a time when interest rates on home equity lines of credit and loans average around 9%, a reverse mortgage may be a more appealing option for retirees. With a reverse mortgage, you can convert your home equity into a lump sum, monthly payments or a line of credit. You don’t have to make principal or interest payments on the loan for as long as you remain in the home.
To be eligible for a government-insured home equity conversion mortgage (HECM), you must be at least 62 years old and have at least 50% equity in your home, and the home must be your primary residence. The maximum payout for which you’ll qualify depends on your age (the older you are, the more you’ll be eligible to borrow), interest rates and the appraised value of your home. In 2024, the maximum you could borrow was $1,149,825.
There’s no restriction on how homeowners must spend funds from a reverse mortgage, so you can use the money for a variety of purposes, including making your home more accessible, generating additional retirement income or paying for long-term care. You can estimate the value of a reverse mortgage on your home at www.reversemortgage.org/about/reverse-mortgage-calculator.
Up-front costs for a reverse mortgage are high, including up to $6,000 in fees to the lender, 2% of the mortgage amount for mortgage insurance, and other fees. You can roll these costs into the loan, but that will reduce your proceeds. For that reason, if you’re considering a move within the next five years, it’s usually not a good idea to take out a reverse mortgage.
Another drawback: When interest rates rise, the amount of money available from a reverse mortgage declines. Unless you need the money now, it may make sense to postpone taking out a reverse mortgage until the Federal Reserve cuts short-term interest rates, which is unlikely to happen until late 2024 (unless the economy falls into recession before that). Even if interest rates decline, they aren’t expected to return to the rock-bottom levels seen over the past 15 years, according to a forecast by The Kiplinger Letter. And with inflation still a concern, big rate cuts such as those seen in response to recessions and financial crises over the past two decades are unlikely.
Note: This item first appeared in Kiplinger’s Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
The housing and rental markets in Orlando reflect the ever-changing landscape of living in this popular city known for its massive tourist attractions, many pristine lakes and an undeniably strong economy. The following insights, derived from Rent. and Redfin, provide a comprehensive view of the Orlando housing market for anyone interested in entering the scene.
Rental market in Orlando
The rental market in Orlando has seen significant fluctuations. As of 2023, the average rent for apartments in Orlando ranges between $1,669 and $2,060, with studio apartments averaging $1,717. The rates vary for one-bedroom and two-bedroom apartments, standing at $1,669 and $2,060, respectively. In nearby areas like Celebration and Kissimmee, the average rent for one-bedroom apartments is around $1,594 and $1,595.
Housing market in Orlando
The housing market in Orlando is notably active and competitive. Houses often receive multiple offers, with many selling for around 3% above the list price. The median sale price for homes in Orlando is approximately $327,500, marking a 14.9% increase from the previous year. This rapid pace indicates a strong demand, with homes selling in about 12 days on average.
Market impacts
Understanding the interplay between the rental and housing markets in Orlando is crucial for a comprehensive analysis of the city’s real estate dynamics. These markets influence each other in several ways.
Impacts of the rental market on the housing market
Investment attraction: A strong rental market in Orlando creates an attractive opportunity for real estate investors. High demand for rentals, coupled with rising rent prices, makes purchasing properties for rental purposes appealing. This can lead to increased competition in the housing market, potentially driving up home prices.
Housing supply and demand: As rental prices rise, some renters may consider purchasing homes, either to escape escalating rents or as an investment opportunity. This shift can increase demand in the housing market, particularly for more affordable homes, potentially leading to price increases.
Market sentiment: The strength of the rental market can be a barometer for the overall health of the real estate market. A strong rental market often indicates strong demand for housing in general, reflecting positively on the housing market.
Impacts of the housing market on the rental market
Homeownership affordability: As home prices rise, homeownership may become less affordable for a segment of the population. This can lead to increased demand for rental properties, as those priced out of buying may have no alternative but to rent.
Rental supply: When the housing market is booming, and home prices are high, investors might be more inclined to sell their properties rather than rent them out, potentially reducing the supply of rental homes and driving up rental prices.
Economic factors: The state of the housing market is often tied to broader economic conditions. For instance, a booming housing market might reflect a strong local economy, which can attract more people to Orlando, increasing demand for rental properties.
Neighborhood-specific dynamics
The interaction between the rental and housing markets can vary significantly across different neighborhoods in Orlando. Factors like proximity to major employment centers, schools, tourist attractions and transportation infrastructure can distinctly influence the supply and demand dynamics in both markets.
Tourist areas: In neighborhoods close to Orlando’s many tourist attractions, short-term rentals might be more prevalent, affecting both the availability and pricing of longer-term rentals and residential properties.
Suburban vs. urban areas: Suburban areas might see different trends compared to urban areas. For example, families might prefer suburban neighborhoods for homeownership, while urban areas might have a higher demand for rental properties due to a younger demographic or proximity to employment centers.
The rental and housing markets in Orlando are interdependent, with changes in one often impacting the other. Neighborhood-specific factors further complicate this relationship, making localized market analysis essential for understanding real estate trends in Orlando.
Cost of living considerations
Food costs: Grocery expenses in Orlando are slightly above the national average by 3.2%. The average monthly grocery spending in Florida ranges between $266 and $300.
Utility costs: Orlando’s utility costs are 4.7% below the national average. The city’s humid subtropical climate necessitates continuous air conditioning, especially in summer. The estimated monthly energy costs are around $151.74.
Transportation: Orlando’s transportation costs are 4.6% above the national average. The city is not very walkable, with a Walk Score of 35, necessitating reliance on cars. Public transportation options include the LYNX Bus Service, with affordable fares and passes.
Taxation
Florida has no state income tax, with a sales tax rate of 6%. In Orlando, an additional 0.5% is added for Orange County, bringing the combined sales tax rate to 6.5%.
Earning requirements
To comfortably afford the average rent in Orlando, an annual income of about $71,160 is suggested, based on the convention that rent should not exceed 30% of income. However, variations in rent across different neighborhoods offer flexibility for different income levels.
Orlando’s housing market
Orlando’s housing market is dynamic and competitive, reflecting the city’s appeal and growing economy. Orlando’s rental market, while varied, requires a significant income to comfortably afford the average rent prices.
Overall, Orlando continues to be an attractive location with a strong housing market, offering a range of options for residents with diverse financial capabilities. If you’re ready to settle down in a sweet place in Orlando, you’ve come to the right place.
You’ve likely heard the terms rent control, rent-controlled apartment or even rent-stabilized apartment on television, in books or at the movies. But, what do these terms mean?
Does rent stay the same every year? Do rent stabilization, rent regulation and rent control mean the same thing? How does a renter find a rent-stabilized unit?
We’ll answer common questions about rent-controlled apartments and share how rent-stabilized units influence renters and property owners, family members and even the neighborhood around rent-regulated apartments. And, we’ll show you how to find one of your own.
What is rent control?
Rent control is a legal term for when a government agency (like a city or state) imposes restrictions on how much landlords can increase rent. Regulations vary by city and state. But, they generally limit the maximum amount a landlord can charge each month and restrict the annual rent increase.
What’s the purpose of rent control?
Rent stabilization and rent control aim to maintain affordable housing options for low and moderate-income tenants. These measures prevent sharp increases in rent, prevent some evictions and help keep people in their homes.
It’s useful when the supply of affordable apartments, condos and rental homes is low. It’s common in urban areas where the occupancy rate is high and the demand for housing sends prices soaring.
States and cities often enact price controls after a war or economic downturn. New York City was one of the first communities to impose rent regulations during World War II. The state of New York took over from the federal government in 1950. New York City now has over a million rent-stabilized apartments overseen by the NYC Rent Guidelines Board.
How does rent control work?
There are two types of rent control. Vacancy control protects current and future tenants. The city or state determines where to cap rent increases. The terms apply to future leases.
Vacancy decontrol means rents stay stable while the current tenant is in the apartment. Once that lease is up, the property owner can increase the rent. In some places, it can’t go higher than a particular dollar amount. In others, landlords can increase rents to whatever the market can bear.
Apartments tend to stay regulated. They may become deregulated if an owner claims it as a primary residence or if a tenant’s income exceeds a particular limit for two consecutive years.
What’s the difference between rent control and rent stabilization?
Rent control and rent stabilization are different. They’re both versions of rent regulation, a term that refers to limits on monthly and yearly rent increases.
Rent control is strict. It usually limits rents to a specific dollar amount. It includes older leases from when rent freezes were more common.
Rent stabilization limits price increases to a particular percentage. It’s much more common. For example, only a small percentage of New York City’s one million rent-stabilized apartments are under a true rent control agreement. The majority of these affordable homes are rent stabilized.
How can I find rent-stabilized apartments?
It depends on where you live. And, it’s not easy.
That’s because only a few states allow rent stabilization. In fact, rent control is illegal in many places. Consult this rent control map from the National Multifamily Housing Council (NMFC) to see what your state offers.
Protections vary within a state’s borders. In California and Oregon, rent stabilization laws apply to the entire state. In other places, rent stabilization measures are only available in particular cities.
Cities that allow rent control and rent stabilization often register rent-stabilized apartments with the city’s housing division. A renter in New York can consult a list maintained by the New York Division of Housing and Urban Renewal. Similar organizations (often called a rent board or rent guidelines board) may list available properties and provide valuable guidance. City offices and the city council may also offer apartment rental resources.
Can you inherit a rent-controlled apartment?
Even if your city or state offers rent regulations, actually finding a rent-regulated unit is a challenge. Rent-stabilized tenants are very aware of what a great deal they’re getting, so they move less often. Stumbling upon a stabilized apartment is rare. Renters in some very competitive cities have been known to read the obituaries to try to score a rent-stabilized apartment before it goes on the market.
But, even then, there’s no guarantee that the landlord will list the apartment. In New York City, a new tenant can inherit an apartment in a rent-controlled building if they occupy it for two consecutive years. So, if a long-term resident has planned ahead and invited a family member to move in with them for at least two years (and if the building is older than 1947 and the family lived in it since at least 1971), the general public will probably never see that apartment listing.
What kind of buildings contain a rent-stabilized or rent-controlled unit?
A rent-stabilized apartment is often found in an older building. Price controls typically apply to a building that contains six or more units. Language stating it’s a continuously occupied primary residence is common.
For example, in New York City, most true rent control tenants reside in buildings built before Feb. 1, 1947. Renters must have lived in their apartment since July 1, 1971, to qualify.
Focus your search on older buildings and buildings that contain rent-stabilized units. Eliminate an apartment building if it doesn’t have at least a half dozen units inside. Cross-reference these buildings with available units to increase your chances of a match.
How can you secure a lease for a rent-stabilized apartment?
If you’re lucky enough to find a rent-stabilized unit, act quickly. Competition is fierce.
Schedule a tour immediately. Document your rent history, bring the paperwork the landlord requires for the application and prepare for a background check. You may need to accept certain expenses without negotiation (like a pet fee or parking fee) in exchange for saving more money on rent every month.
If the apartment, the building and the neighborhood are a fit, sign the lease right away. Make sure any roommate or family member on the lease is available to sign it, too.
If you’re one of the fortunate ones who inherit a rent-controlled lease (after living there for two years, of course), protect it. Promptly pay rent (and every fee) and renew your lease.
Then, plan for the future. Your descendants will have to live there for two years if you want to pass it on.
How do rent-controlled apartments affect renters?
Your monthly rent payment is a major expense. Finding a rent-stabilized apartment is an effective way to keep housing costs down.
Rent-controlled apartments help keep low and moderate-income residents in their homes. This is especially important for people on fixed incomes, like the elderly and the disabled. Rent control can prevent some evictions and increase housing stability.
If residents can afford their rent, it’s easier to build their credit and rent history. Saving money on rent means people can pay down debt, increase their savings and provide a more financially secure life for themselves and their family members.
How do rent-stabilized apartment buildings help communities?
People who can easily afford their current apartment renew their leases more and move less often. They deepen their ties to their neighbors and patronize local businesses. Rent stabilization can lead to community renewal and stability.
How does a rent-controlled apartment affect a landlord?
The ability to renew a lease for less than the market rate is a great deal for a tenant. It’s not such a great deal for a landlord.
If a landlord can’t count on rent increases to keep up with inflation or taxes, they have to find new ways to pay their bills. They might charge a parking fee or increase the pet fee and deposit. Your landlord may delay maintenance or repairs or invest less money in their building.
They might raise the rents on other apartments to make up for the cost of maintaining rent-controlled homes. A landlord may also convert rent-stabilized apartments into condos to earn more revenue and protect their investment. This reduces rental inventory.
Apartment owners may build condos or vacation homes instead of apartments if local laws prioritize rent-controlled apartments. That makes it harder to find an affordable primary residence.
Rent control is a great way to go
Rent control and rent stabilization affect landlords, tenants and entire cities. It’s a challenge to obtain a rent-controlled apartment, so if you find one, hold onto it.
The information in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.
Alicia Underlee Nelson is a freelance writer and photographer. Her work has appeared in Thomson Reuters, Food Network, USA Today, Delta Sky Magazine, AAA Living, Midwest Living, Beer Advocate, trivago Magazine, Matador Network, craftbeer.com and numerous other publications. She’s the author of North Dakota Beer: A Heady History, co-host of the Travel Tomorrow podcast and leads travel and creativity workshops across the Midwest.
Every few months over the last two years, a sea of California carpenters has clogged the state Capitol to voice their support of high-profile housing legislation, their yellow and orange vests, hard hats and work boots in stark contrast to the suits, dresses and fancy shoes more customary in the hallways and hearing rooms of Sacramento.
Their grassroots lobbying has paid off with major legislative wins, including a pair of housing construction bills that Gov. Gavin Newsom signed into law Wednesday.
The laws represent more than the possibility of desperately needed new homes in a state with a 2.5-million-unit housing shortage. They also signal a shift in power dynamics among unions in California, and which ones have the greatest influence over labor standards at residential construction sites.
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“The carpenters’ engagement on housing policy has been an absolute game changer,” said state Sen. Scott Wiener, a San Francisco Democrat who chairs his chamber’s housing committee and is the author of both laws, Senate Bills 4 and 423.
The first bill, SB 4, will make it easier for nonprofit colleges and faith organizations to build affordable homes on their land, while SB 423 will expand current law that lets developers expedite construction of multifamily projects in cities that have fallen behind on their state-mandated housing goals. The measures build on Assembly Bill 2011, a law that went into effect in July to convert buildings traditionally zoned for commercial retail and office space into affordable housing.
The new laws come after years of gridlock on housing proposals, leading to a rift between the California Conference of Carpenters, which is gaining newfound clout in the state Capitol, and the State Building and Construction Trades Council, one of the most influential players in Sacramento over the last decade.
Divisions bubbled up last year when the carpenters broke with the council and other influential unions and sponsored AB 2011, legislation the broader labor movement opposedbecause it lacked more rigorous job standards.
AB 2011 still mandates developers pay union-approved, or “prevailing,” wages and provide some healthcare benefits to workers, whether they’re union members or not. But it lacks the work standard the building trades union prefers, known as “skilled and trained,” a mandate that generally means laborers on job sites are unionized.
In the Democratic-controlled Legislature, where labor has an outsize influence, last year’s union infighting put many lawmakers in the uncomfortable position of having to choose a side.
Opponents of the skilled and trained standard argue it’s unachievable for housing developers because there aren’t enough union workers to meet the threshold. The trades union contends it’s a model that protects workers against exploitation and inadequate job safety protections.
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“I think that prevailing wage in legislation for housing is a positive step,” said Chris Hannan, who was selected president of the State Building and Construction Trades Council this summer. “We don’t believe that that’s enough.”
Hannan succeeded Andrew Meredith, who resigned as president this year as the fight over labor standards raged in the Capitol.
Leadership at the carpenters union say they had no choice but to move forward with their own plan after discussions with the council fell apart.
Jay Bradshaw, executive secretary-treasurer of the Northern California Carpenters Union, said the new standards will help dismantle the underground construction economy and create job opportunities for union members, while safeguarding all workers against wage theft and other unfair labor practices currently happening on residential job sites.
The carpenters’ approach with the new standards is to organize members on job sites, but the trades council historically preferred requiring a unionized workforce to begin with.
“The labor standards we developed will significantly help our current membership. … And it will also pull wages out of competition for those that are not represented,” Bradshaw said. “And then it’s our job to go organize those folks, not the government’s.”
Todd David, a political advisor to Wiener who served as executive director of the Housing Action Coalition in 2022, said the increased influence of the carpenters helped clear a path for new housing legislation.
“There were lots of quiet conversations between legislators with people who knew the carpenters very well, like, can they really do this?” David said.
They did.
So began a new era for the carpenters — and their Democratic allies eager to pass more sweeping housing bills into law using the same labor language.
“They showed up, and they really planted a flag in AB 2011,” said Assemblymember Buffy Wicks, the Oakland Democrat who wrote the legislation and chairs the Assembly committee on housing. “It was a breakout moment, I think, for the carpenters, where they decided enough is enough, we’re going to build housing, we’re going to do strong labor standards, we’re going to break the juggernaut that has been preventing us from actually accomplishing stuff in California in housing policy, with regards to labor standards. And they did it.”
The building trades council and its allies see the fight as far from over.
Hannan and others still consider the dispute over the labor language an easy choice between protecting workers or leaving them vulnerable to exploitation and job safety issues that may result from a lack of training.
“Our members … are the very best at what they do. And they deserve us to fight as hard as we can for them,” Hannan said. “And we believe we are going to be the strongest, loudest voice for the construction worker.”
But the council lost its second battle this year after Wiener introduced his two bills, which largely include the same labor standards as last year’s deal.
Considered this year’s most consequential housing measure, SB 423 will extend by another decade current policy that lets developers streamline multifamily development in cities that have failed to plan for enough housing, which was set to expire in 2026. The original law passed in 2017 and has led to more than 18,000 proposed units, the majority for low-income families.
Last year’s coalition included the California Housing Consortium and other affordable housing groups and two other major unions — the California School Employees Assn. and the Service Employees International Union. This year, Wiener and the carpenters expanded support for the labor changes to add more construction unions.
“We just hung tough, and I think the nature of the crisis sort of forced people to do what they were not comfortable doing in terms of the labor issues,” said Danny Curtin, director of the carpenters conference. “Breaking ranks, or however you want to put it, is never simple or easy. And you don’t want to do it unless you really think there’s no real alternative. But it was unassailable, our bill was unassailable.”
Others don’t see it that way.
Scott Wetch, a lobbyist who represented several unions in the negotiations, described SB 423 as an undemocratic law that would come back to haunt every legislator who voted for it, a “political aneurysm” that “one day will burst.”
He criticized how housing might get built in a streamlined capacity that edges out community input, and questioned whether the healthcare requirements will withstand future legal challenges.
And while some unions were going to bat for their members fighting for more rigorous job rules, Wetch said, others, like the carpenters, “sold their members down the river.”
“The carpenters went to a handful of developers, and said to them, ‘Hey, we want to get some work, we want to work with you, and we will be the Judases that remove these worker protections that you don’t like, because we want to get some work out of you,’” Wetch said.
The carpenters have shrugged off those criticisms. They see the issue as a done deal, the new labor standards now the blueprint for housing legislation in California.
“The carpenters would rather be problem solvers than just problem fighters,” Bradshaw said.
LOS ANGELES — Sales of previously occupied U.S. homes in September fell for the fourth month in a row, grinding to their slowest pace in more than a decade as prospective homebuyers grapple with surging mortgage rates and a near historic-low level of properties on the market.
Existing home sales fell 2% last month from August to a seasonally adjusted annual rate of 3.96 million, the National Association of Realtors said Thursday. That’s just above the 3.9 million unit pace that economists were expecting, according to FactSet. But it’s the slowest sales pace since October 2010, when the market was still choked by foreclosures following the housing bust several years earlier.
Sales sank 15.4% compared with the same month last year and are down 21% through the first nine months of the year versus the same period in 2022.
Despite the housing market slump, home prices kept climbing versus a year ago. The national median sales price rose 2.8% from September last year to $394,300. It slipped 3.1% from August.
“Clearly, the story of limited inventory and rising and rising mortgage rates continues to hinder the home sales market,” said Lawrence Yun, the National Association of Realtors’ chief economist.
Yun also said he expects mortgage rates will ease by next spring.
“I think this is the top,” he said. “Maybe we’ll have a few months of very difficult sales because of this high interest rate, but things should be improving next year.”
The weekly average rate on a 30-year mortgage moved above 7% in August, when many of the home sales that were finalized in September would have gone under contract. It has remained above that threshold since, surging this week to 7.63%, the highest level since 2000, according to mortgage buyer Freddie Mac.
Challenges for first-time homebuyers
High rates can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already out of reach for many Americans. They also discourage homeowners who locked in rock-bottom rates two years ago from selling.
Mortgage rates have been climbing along with the 10-year Treasury yield, which lenders use as a guide to pricing loans. Investors’ expectations for future inflation, global demand for U.S. Treasurys and what the Fed does with interest rates can influence rates on home loans.
The central bank has already pulled its main interest rate to the highest level since 2001 in hopes of extinguishing high inflation, and has indicated it may cut rates by less next year than earlier expected. The threat of higher rates for longer pushed Treasury yields to their highest levels in more than a decade.
While surging mortgage rates have shut out many prospective buyers, a chronic shortage of homes for sale continues to keep the market competitive, especially for the most affordable homes.
Homes sold last month typically within just 21 days after hitting the market, and about 26% of homes sold for more than their list price, the National Association of Realtors said.
All told, there were 1.13 million homes on the market by the end of last month, up 2.7% from August, but down 8.1% from September last year, the group said. That amounts to just a 3.4-month supply, going by the current sales pace. In a more balanced market between buyers and sellers, there is a four- to five-month supply.
The combination of higher mortgage rates and rising prices has particularly hurt first-time homebuyers who don’t have any home equity to put toward their down payment. They accounted for just 27% of all homes sold last month. Historically, it was not unusual for them to make up 40% of sales.
Meanwhile, house hunters who can afford to bypass financing and pay in cash are taking up a bigger share of the market. Last month, all-cash deals accounted for 29% of all home sales, the National Association of Realtors said. Typically, all-cash transactions tend to represent about 20% of sales.
The last time all-cash transactions made up as big a slice of home sales? During the foreclosure crisis years that followed the late-2000s housing slump.
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Nestled in the heart of Utah Valley, Provo has increasingly been a topic of discussion for those looking to relocate.
Known for its close proximity to natural wonders like Provo Canyon and Utah Lake, it’s a location that offers both city life and natural retreat. However, with such growing attention, the question arises: Is Provo, Utah, a good place to live?
Geographic overview
Provo, located in Utah County, sits about 45 miles south of Salt Lake City. As part of the larger Provo-Orem metro area, it’s surrounded by breathtaking views, notably the majestic Wasatch Front mountains. The city enjoys a beautiful position by the Provo River, leading many to the popular Provo River Parkway Trail for outdoor activities.
Educational excellence: BYU and beyond
Central to Provo’s identity is Brigham Young University (BYU). As one of the top institutions in the country, BYU has significantly influenced Provo’s status as a college town. The presence of BYU means Provo is bursting with educational opportunities, from lectures at the BYU Museum and Bean Life Science Museum to events at the BYU campus itself.
Quality of life in Provo
Economic, cultural and safety factors drive movers to Provo in droves.
Economic stability
Provo’s unemployment rate is below the national average. The presence of institutions like BYU and the Provo City Center Temple ensures steady employment in the education and service sectors. Additionally, with a tech boom happening in the broader Salt Lake Valley, many are finding new job opportunities within a commutable distance from Provo.
Cultural richness
Provo is home to a rich blend of cultures. While there is a significant presence of members of The Church of Jesus Christ of Latter-day Saints, Provo is diverse in thought and lifestyle. The city houses several art galleries, theaters, and the iconic Provo City Center Temple, a testament to its rich history and cultural significance.
Safety
One of the notable features of living in Provo is its low crime rates. Both violent crimes and property crimes are below the national average, making Provo a safe environment for young families and college students alike.
Cost of living: breaking down the numbers
Is Provo Utah expensive to live in? Compared to other cities along the Wasatch Front, Provo’s cost of living is slightly below average. However, with the city’s growth, housing costs have been on the rise.
Housing market insights
The median home price in Provo has seen an upward trend over the past few years, though it remains competitive compared to Salt Lake City. Average rent for apartments is also reasonable, particularly given the high student population from BYU and Provo College. However, the demand for affordable homes has been steadily increasing.
Everyday expenses
When comparing Provo’s cost for groceries, transportation, and healthcare to the national average, residents find it reasonable and often below average. However, as with any city, certain luxuries or non-essentials can drive up living costs.
The heart of Provo: its people
With a population density of around 2,500 people per square mile, Provo is lively without feeling overcrowded. The median age skews younger, thanks in part to the influx of college students. Provo residents are generally known for their hospitality, community spirit and active lifestyles, taking advantage of nearby attractions like Provo Beach and Rock Canyon.
Before you pack: Moving to Provo insights
What do I need to know before moving to Provo Utah? Here are some considerations:
Outdoor Activities: With Provo River, Provo Canyon, and myriad trails, there’s always something to do outdoors. Whether you’re into hiking, fishing, or just picnicking, Provo has you covered.
Community Feel: Provo, often dubbed “Happy Valley”, has a tight-knit community. Neighbors often become lifelong friends, and community events are frequent.
Religious Considerations: As mentioned, Provo has a substantial Mormon population. While this brings a unique cultural flavor, it’s essential to be respectful and understanding of religious practices and holidays.
Public Transportation: The bus system in Provo is reliable, but having a car might be convenient for broader exploration and commuting.
Final verdict
Living in Provo offers a harmonious blend of city life and nature, academia and culture, community and individuality. With its reasonable cost of living, low crime rates and opportunities for both personal and professional growth, Provo stands out as one of the best cities in North Central Utah. Whether you’re a student at Brigham Young University, a young family looking to settle or anyone in between, Provo provides a backdrop for memories, experiences and growth.
In the balance of life’s considerations, the essence of Provo UT seems to be this: it’s more than just a city — it’s a community, an experience, and, for many, it’s home.
So, to the question, “Is Provo Utah a good place to live?” the answer resounds as a confident “Yes!” Search our Provo apartments for rent.
Perhaps not surprisingly, eight of the 10 most expensive housing markets in the nation can be found in California, at least according to the latest Home Price Comparison Index from Coldwell Banker.
The real estate company evaluated average home values for select 2,200 square foot single-family homes with four bedrooms and two-and-a-half baths in 315 markets in the U.S., finding that La Jolla, CA was the most expensive at $1,841,667.
On the other end of the affordability spectrum was Sioux City, Iowa, where a comparable home would cost just $133,459, despite its waterfront status on the Mississippi River.
The California vs. Midwest trend runs deep, with eight of the most affordable homes found in the heartland of the United States.
Notables include Akron, Ohio, Arlington, TX, and Eau Claire, WI, where all the homes average a sales price below $150,000.
In California, places like San Francisco, Beverly Hills, and Newport Beach topped the list, all with prices above $1.5 million.
Aside from California cities dominating the least affordable list, Greenwich, CT and Boston, MA also made the top ten, with sales prices of $1,787,000 and $1,493,750, respectively.
Of course, you needn’t be a multi-millionaire to live in California, that is, if you choose to live in the most affordable city, Bakersfield, where the average sales price runs at a more reasonable $273,457.
But if you want more freedom to choose, consider Idaho, where the home price variance between the most affordable and least affordable market is just $217.
Coldwell said the cumulative average sales price for the four-bedroom homes tracked in the index was $403,738, a 4.4 percent discount to the $422,343 price in the 2007 study.
Retail giant Amazon announced on Wednesday the launch of a new pilot program designed to assist moderate-income families in three different U.S. communities with the purchase of up to 800 homes, in partnership with the National Housing Trust (NHT).
The initiative will include $40 million to assist residents in the Puget Sound, Washington, Arlington, Virginia, and Nashville, Tennessee communities, the company said. Amazon says the investment will “help moderate-income residents in these communities to purchase homes as a path to help build generational wealth.”
The nonprofit NHT will use the funds from Amazon’s program to acquire and build affordable homes for sale in partnership with a network of local organizations in across the three communities.
These include Habitat for Humanity Seattle-King & Kittitas Counties serving the Puget Sound region; the African Community Housing & Development (ACHD) and Homestead Community Land Trust both serving King County, Wash., the Douglass Community Land Trust in Washington, D.C. and The Housing Fund serving Nashville.
Additional partnerships through this program are possible in the future, the company said.
Amazon cites data from the National Association of Realtors (NAR) attributing affordability challenges to the “combination of rising interest rates and increasing home prices” in a majority of U.S. metropolitan areas.
“Amazon and NHT will invest in community land trusts, a model where the land itself will be owned and stewarded by nonprofits and community-based organizations, and where residents will own their physical homes,” the company said in its announcement. “Removing the cost of the land from the total cost of the home allows the price of homes to stay affordable, stabilizing families in their communities while combating gentrification.”
Last year, Amazon made a housing investment of $10.6 million into the Nashville area to build and renovate 130 affordable homes, bringing its then-total investment into that community to roughly $100 million.