Supply of New U.S. Housing

This is fascinating: Consider this: from 1968 to 2008, a span of 40 years, there was only one year in which fewer new housing units were built than in 2017 (Exhibit 1)—and this despite rising demand in a growing economy. In a recent Insight, we examined the demand side of the housing market, focusing particularly on… Read More The post Supply of New U.S. Housing appeared first on The Big Picture.

Real Time Economics: U.S. Wages Poised for a Breakout | China’s Factories Slow | Millennials Drive Homeownership

This is the web version of the WSJ’s newsletter on the economy. You can sign up for daily delivery here. Good morning. Today we look at the U.S. labor market, inflation, homeownership in America, a two-year low for China manufacturing activity, and warnings on tariffs.  BREAK ON THROUGH U.S. workers’ wages are poised to break through a 3% annual growth ceiling that’s held firm for nearly a decade when the Labor Department releases the October jobs report on Friday. Economists project that average hourly earnings advanced 0.2% on the month in October. That roughly 5-cent-an-hour gain would result in wages advancing 3.1% from a year earlier. Wages haven’t exceed 3% year-over-year growth since April 2009. (At that time, wages were growing because employers we’re letting go of less-experienced, lower-paid workers, leaving higher-earning workers on payrolls.) The strong annual gain in October in part reflects that Continue reading "Real Time Economics: U.S. Wages Poised for a Breakout | China’s Factories Slow | Millennials Drive Homeownership"

What is the Correlation Between Stocks & Housing?

According to Jonathan Miller, very little: The Stock Market Corrected, What Does It Mean For Housing? First: the stock market is not the economy. Second: I’ve never been able to credibly correlate housing prices and the Dow Jones Industrial Average with housing prices. Third: for a brief period I was able to show some vague distant correlation in Manhattan… Read More The post What is the Correlation Between Stocks & Housing? appeared first on The Big Picture.

Real Time Economics: How Long Can the U.S. Economic Expansion Last? ‘Effectively Indefinitely.’

This is the web version of the WSJ’s newsletter on the economy. You can sign up for daily delivery here. Good morning. Today we look at extraordinary U.S. economic growth, rising bond yields, collateral damage in emerging markets, why U.S. worker wages might take a step back in September, and the continuing demise of the shopping mall. HOW ABOUT THAT ECONOMY! The 10-year U.S. Treasury yield rose to its highest level in more than seven years as investors bet on strong economic growth and rising inflation. The immediate cause: robust economic data and easing trade tensions after the U.S., Mexico and Canada hashed out a new pact. The 10-year Treasury is a closely watched barometer of sentiment toward growth and inflation. Investors appear to expect more of both. It’s also used as a reference for everything from auto loans to mortgages. Higher yields likely mean higher Continue reading "Real Time Economics: How Long Can the U.S. Economic Expansion Last? ‘Effectively Indefinitely.’"

It Can Cost $750,000 to Build an Affordable Housing Unit in California. Here’s Why.

A single unit of housing for a low-income family can cost nearly $750,000 to build in California, according to a government report that provides new details on the cost to taxpayers of building affordable housing in states with high land prices and heavy land-use regulations. A new report from the Government Accountability Office highlights stark disparities in the cost to build affordable housing that qualifies for tax credits between states like California, which has more land-use regulations, and Texas, where it is much easier to get approval to build. A typical unit for a low-income family in San Francisco and Los Angeles costs around $400,000 to build. In Texas, where land-use regulations are much looser, the cost is about a third of that. Median costs in Chicago and New York City were also high, at $315,000 and $282,000 respectively, the GAO found. The investigation into the efficiency and effectiveness of Continue reading "It Can Cost $750,000 to Build an Affordable Housing Unit in California. Here’s Why."

Harvest Properties, Independencia Asset Management close buy of Constitution Square

Harvest Properties and joint-venture partner Independencia Asset Management LLC said Sept. 20 that they have completed their acquisition and recap of a mixed-use property located in downtown Berkeley, California. Financial terms weren’t announced. The property, known as Constitution Square, is a three-story, 36,000 square foot building located at 2168 Shattuck Avenue. PRESS RELEASE EMERYVILLE, Calif.–(BUSINESS WIRE)–Harvest Properties and joint-venture partner, Independencia Asset Management LLC (“IAM”), have completed the acquisition and recapitalization of a mixed-use property located in the heart of Downtown Berkeley, California, for an undisclosed amount. Known as Constitution Square, the property is a three-story, 36,000 square foot building located at 2168 Shattuck Avenue directly adjacent to the Downtown Berkeley BART Station and its newly renovated BART Plaza.
Since 2015, Harvest and previous partner, The Roxborough Group, completed over $1.5 million in capital improvements, including lobby and elevator cab renovations, a roof replacement and upgrades to the
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