Source: Dallas Business Journal
Toyota recently decided to plant its North American headquarters in Plano, Texas, bringing in more than 3,000 jobs, mostly from Torrance, Calif. According to a professor with inside knowledge of the move, the main driver of Toyota’s move from California was housing costs. Toyota did the math and found that housing costs in Los Angeles County, where Torrance is located, are three times per square foot the cost of a house in Dallas-Fort Worth. The median home in Dallas-Fort Worth costs about $210,000, and the median income is roughly $58,000. In Torrance the median home price is $508,000 and the median income is $76,000.
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Wednesday, March 9, 2016
Wednesday, March 2, 2016
U.S. housing data signals economic strength; manufacturing weak
Source: Reuters
As 2015 drew to a close, the Commerce Department reported that building permits in November vaulted 11 percent to a 1.29 million-unit rate, the highest level since June. Groundbreaking jumped 10.5 percent to a seasonally adjusted annual pace of 1.17 million units. With permits running ahead of starts, home building is likely to remain supported in the months ahead. November marked the eighth straight month that housing starts remained above 1 million units, the longest stretch since 2007. Despite these signs of strength in the housing market, other data showed the industrial sector continuing to struggle under the weight of a strong dollar, cutbacks in inventory investment as well as spending cuts by energy firms in response to persistently low oil prices.”
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As 2015 drew to a close, the Commerce Department reported that building permits in November vaulted 11 percent to a 1.29 million-unit rate, the highest level since June. Groundbreaking jumped 10.5 percent to a seasonally adjusted annual pace of 1.17 million units. With permits running ahead of starts, home building is likely to remain supported in the months ahead. November marked the eighth straight month that housing starts remained above 1 million units, the longest stretch since 2007. Despite these signs of strength in the housing market, other data showed the industrial sector continuing to struggle under the weight of a strong dollar, cutbacks in inventory investment as well as spending cuts by energy firms in response to persistently low oil prices.”
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Wednesday, February 24, 2016
Wednesday, February 17, 2016
Fannie Mae: Housing market needs incomes to grow
Source: Yahoo! Finance
The chief economist of Fannie Mae is warning that housing affordability—or lack thereof—is going to put a damper on the housing market’s growth. A big factor in the strength of the market and the story for housing is very much tied to whether incomes increase, according to Fannie Mae’s analysis. Doug Duncan, chief economist for Fannie Mae, commented, “Our theme for the year is [that] housing affordability constrains as the expansion matures. Both rents and house prices are appreciating at pretty strong levels. And what is required is to see income growth, particularly at the medium and lower income levels.”
The chief economist of Fannie Mae is warning that housing affordability—or lack thereof—is going to put a damper on the housing market’s growth. A big factor in the strength of the market and the story for housing is very much tied to whether incomes increase, according to Fannie Mae’s analysis. Doug Duncan, chief economist for Fannie Mae, commented, “Our theme for the year is [that] housing affordability constrains as the expansion matures. Both rents and house prices are appreciating at pretty strong levels. And what is required is to see income growth, particularly at the medium and lower income levels.”
Sunday, February 14, 2016
Wednesday, February 10, 2016
Fed: Tight Inventory Still Dogs Housing Markets
Source: DSNews.com
The Federal Reserve has released its first Beige Book of 2016, and despite existing-home sales falling to their slowest pace in 19 months in November, the 12 Federal Reserve Districts reported mixed but slightly improved housing markets for the six-week period leading up to January 4. Part of the reason that inventories remain low is that residential construction in the single-family home space “remains sluggish, with developers reluctant to build inventories,” according to the Fed. Multifamily construction, on the other hand, “continues to be brisk,” as most of the 12 districts reported modest or moderate growth in commercial construction. Overall, economic activity expanded in nine of the 12 districts since the previous Beige Book was issued in December.
The Federal Reserve has released its first Beige Book of 2016, and despite existing-home sales falling to their slowest pace in 19 months in November, the 12 Federal Reserve Districts reported mixed but slightly improved housing markets for the six-week period leading up to January 4. Part of the reason that inventories remain low is that residential construction in the single-family home space “remains sluggish, with developers reluctant to build inventories,” according to the Fed. Multifamily construction, on the other hand, “continues to be brisk,” as most of the 12 districts reported modest or moderate growth in commercial construction. Overall, economic activity expanded in nine of the 12 districts since the previous Beige Book was issued in December.
Wednesday, February 3, 2016
Facebook’s 10-Mile, $10,000 Solution to Housing and Long Commutes
Source: KQED
Tech workers who live in San Francisco and commute to work in Silicon Valley have been blamed for driving up rents in the area and causing congestion on local transportation corridors. Facebook is now offering payments of $10,000 and up to workers who relocate to within 10 miles of its main campus. However, there are concerns that residents in nearby communities — East Palo Alto, Menlo Park and Redwood City, for instance — will be threatened by the announcement, as they will find themselves competing for housing with well-paid Facebook workers. The policy may add to tension in the region about the surge in housing prices and the lack of housing available in the area due to the dominant presence of tech companies.
Tech workers who live in San Francisco and commute to work in Silicon Valley have been blamed for driving up rents in the area and causing congestion on local transportation corridors. Facebook is now offering payments of $10,000 and up to workers who relocate to within 10 miles of its main campus. However, there are concerns that residents in nearby communities — East Palo Alto, Menlo Park and Redwood City, for instance — will be threatened by the announcement, as they will find themselves competing for housing with well-paid Facebook workers. The policy may add to tension in the region about the surge in housing prices and the lack of housing available in the area due to the dominant presence of tech companies.
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