Archives for June 2011
Unemployment down in many metro areas
June 3, 2011 By
Unemployment rates are down in many U.S. metropolitan areas, according to figures released by the Bureau of Labor Statistics. The national unemployment rate in April was 8.7 percent, down from 9.5 percent one year ago.
Rates were lower in April than one year earlier in 297 of the 372 metropolitan areas, higher in 54 areas, and unchanged in 21 areas. 237 metro areas indicated increases in non-farm payroll employment, 126 reported decreases, and 9 had no change.
Hard-hit states like Indiana and Michigan reported the most significant drops in unemployment. California cities continue to experience the highest unemployment rates, constituting the majority of job markets with rates higher than 16 percent.
See Inman News charts for more detailed statistics.
Harvard Study Warns of Rent Bubble
June 2, 2011 By
For renters, the national recovery could be very bad news. That warning came from the Harvard Joint Center for Housing Studies’ latest report on America’s rental housing. Rental markets are now tightening, with vacancy rates falling and rents climbing. With little new supply of multifamily units in the pipeline, rents could rise sharply as demand increases. Regardless, affordability is likely to deteriorate further over the next few years as persistently high unemployment limits renter income gains.
When job growth regains momentum, the number of renter households could climb quickly. Given the long lead times needed to develop new multifamily housing, a sharp increase in demand could quickly reduce vacancy rates and put upward pressure on rents. While this would be good news for owners and investors in rental housing, it would also fuel the intense affordability pressures, the study warns.
A variety of rental market indicators suggest that the worst repercussions from the recession may be over. While this is good news for most of us, especially property owners, the recovery may increase the rent pressures on households still struggling in an environment of sluggish job growth. The ongoing foreclosure crisis should continue to spur growth in the number of renter households as former owners switch to renting. Single-family home foreclosures will also add a steady flow of units to the rental market. The ability of renter households to occupy these homes will be an important factor in maintaining the stability of distressed neighborhoods hard hit by the foreclosure crisis.
Although there appears to be an excess supply of rental housing at present, this could change quickly as the economy recovers and household formation among younger adults returns to a more typical pace. An upsurge in demand could outstrip the available supply and push construction activity back up, the study says.
One of the most important questions going forward is whether mortgage financing will be available to fuel rental property purchases and investments. Even before the financial crisis, Fannie Mae and Freddie Mac were an important source of financing for both multifamily and investor-owned single family properties. And during the crisis, the GSEs—along with FHA—accounted for the vast majority of new financing. As Congress takes up debate about what, if any, role the GSEs should play in the mortgage markets, policymakers must consider the vital importance they have as a source of capital for rental housing.
By Steve Cook
Criminal activity at your fingertips
June 2, 2011 By
Trulia makes crime information readily accessible to the public. The newly launched Crime Maps presents data on criminal activity in many metropolitan areas. Trulia utilizes information from partners (CrimeReports.com, EveryBlock.com, and SpotCrime.com) who work with police agencies, crime feeds, and news outlets.
Users can click on a major city to view hot spots of activity in or around their neighborhoods. Not all major metropolitan areas are included; Trulia’s current list includes about 50 cities. Crime Maps provides a unique visual aid to prospective home buyers who want to measure criminal injustice in areas where they’d like to live — they can view, toggle, and compare statistics of two different regions.
Information on criminal activity is like watching the 5 o’clock news. There’s value in being informed, but seeking the data on a “need to know basis” should trump obsessing over every detail. View Trulia’s introduction here.
Post-war Architecture and Luxury Homes
June 1, 2011 By
After World War II, architectural focus shifted from form to function. Homes built between the late 1940s and 1970s were considered to be less visually appealing, but they were made to accommodate more residents than in the past. This style of architecture is considered to be Post-war.
Post-war homes often came in the form of high-rise apartment buildings in several major cities. These practical residences provided additional services that were not available during the Pre-war era, such as parking garages, laundry rooms, elevators and doormen. Additionally, Post-war buildings had identifiable features such as:
• Brick exterior
• Boxy shape
• Little or no ornamentation
• Plain, symmetrical windows
Simple, unassuming design is not to be confused with boring and despite some feeling that many Post-war buildings are uninspired, several remarkable luxury properties of this style are for sale in appealing metropolitan areas. In Chicago, Illinois, a penthouse in a Post-war style building is currently listed at $8.9 million. The spacious three bedroom home features two 1,000 square foot decks plus four balcony areas, boasting incredible city and lake views.
