From the NYT:
The Shrinking of the Middle-Class Neighborhood
When Ashley Broadnax thinks of the East Nashville neighborhood she grew up in during the ’90s, the images that rush in have a modest, middle-class tinge.
After school, she and other neighborhood children bought snacks at the corner store and threw balls on the street as their parents returned home, some in uniform from blue-collar work, others from jobs as teachers or office workers. Neighbors chatted on porches and lawns of unassuming single-story homes. There were some poor families and a few wealthy ones, but more than a third of her neighbors made between $40,000 and $75,000 in today’s dollars — enough to live comfortably.
But by 2020, the income distribution had tilted so that half the families made $100,000 or more, census data shows. All across the neighborhood, the modest houses of Ms. Broadnax’s youth have been replaced by high-end homes known informally as “tall skinnies” that tower over the older homes that remain.
So when it was Ms. Broadnax’s turn to pay the rent, using her own middle-income salary as an educator, the cost was out of reach.
In some ways, the pattern reflects how wealthy Americans are choosing to live near other wealthy people, and how poorer Americans are struggling to get by.
But the pattern also indicates a broader trend of income inequality in the economy, as the population of families making more than $100,000 has grown much faster than other groups, even after adjusting for inflation, and the number of families earning less than $40,000 has increased at twice the rate of families in the middle.
Ms. Broadnax has become part of a great chase nationally for affordable housing. High rents in the city initially sent her to the more affordable Antioch neighborhood in 2011. But home prices nearly doubled there since 2018, so buying a home meant moving farther out to a suburban community called La Vergne.
“The same people that’s working in their city can’t afford to live in their city,” Ms. Broadnax said about Nashville.
Nationally, only half of American families living in metropolitan areas can say that their neighborhood income level is within 25 percent of the regional median. A generation ago, 62 percent of families lived in these middle-income neighborhoods.
First
From MarketWatch:
Is now a good time to buy a house? Only 20% of Americans say ‘yes’
Both prospective homebuyers and sellers are feeling increasingly annoyed by the housing market and the economy, according to a new survey.
Their frustrations were registered by the Fannie Mae Home Purchase Sentiment Index, which dropped by 3.4 points in June to 64.8. That’s the second-lowest reading in a decade.
Nationally, only half of American families living in metropolitan areas can say that their neighborhood income level is within 25 percent of the regional median. A generation ago, 62 percent of families lived in these middle-income neighborhoods.
Prestige has a price, so I’m told. I want close to 7 digits for my house. And you better attach a letter to the offer, explaining, in essay form, why I should choose you to buy my house.
Lol.
https://www.dailymail.co.uk/news/article-11004355/Jill-Biden-chided-saying-Latinos-unique-breakfast-tacos.html
Fast
If Ithey promise to feed the squirrels and leave the place reading of cabbage and pall malls can They get it for 10% over list?
Hold: Joe and Jill, a perfect clueless couple. Not really surprised, lots of liberal elites who claim they are all for diversity and inclusion, have almost zero contact with minorities including Latinos in any meaningful way.
3b
And yet the libs think they are experts at everything and know what’s best for us. If Melanie had said something like that the media would be outraged. But I guess it’s ok to be casually racist in the woke world if they are on your side.
Hold: Exactly. That’s my biggest problem with the liberal elites the hypocrisy, and the self righteousness. Did any of Jill’s aides review her comments before she spoke? Assuming she has Hispanic aides surely some of them would have seen how clueless and ignorant her comments were. Breakfast tacos?? Seriously?? And she can’t even pronounce bodega right!!
Beer,
Cabbage and Pall Malls simmering in a Rheingold stew command top dollar! Chubby Muppets must be compensated!
3b
Maybe the minority aides have no influence and are strictly photo ops and talking points for the lib elite.
Glad I was able to live and experience this before tech took over. Everyone used to socialize outside. Now they talk through text.
I’d argue also that tech has played a big role in hollowing out the middle class. Those middle class that invested in and/or worked in tech became rich. Those that didn’t got left behind.
“After school, she and other neighborhood children bought snacks at the corner store and threw balls on the street as their parents returned home, some in uniform from blue-collar work, others from jobs as teachers or office workers. Neighbors chatted on porches and lawns of unassuming single-story homes. There were some poor families and a few wealthy ones, but more than a third of her neighbors made between $40,000 and $75,000 in today’s dollars — enough to live comfortably.”
Hold: Could be. I could have reviewed her comments and corrected them, and I am not Latino. Oh and the Hispanics I know hate the term Latinx, and won’t use it.
You mean Obama? Lol
And quite frankly, most presidents since Clinton including team red.
Hold my beer says:
July 12, 2022 at 8:37 am
3b
Maybe the minority aides have no influence and are strictly photo ops and talking points for the lib elite.
I just wonder who is really running the show…as far as I’m concerned, all celebrity politicians are talking heads.
For all you daydreamers:
Sarasota ranks second in country for people looking to move
From some of the best beaches in the state to quality schools and an abundance of activities, it’s not surprising that Sarasota is a popular destination where people daydream of becoming a resident. But it is still somewhat shocking that Sarasota, with a county-wide population of only about 450,000 residents and fewer than 60,000 inside city limits, was the second most popular location in the country for people to compare with their current location in a new feature on national real estate company Coldwell Banker’s website.
youtube.com/watch?v=yqZFQpA9nqc
No one,
Are you that insecure of your move to Florida that you have to convince yourself that you made the right move? Not meant in an attacking way, just curious. You don’t sound convinced.
says the idiot who incessantly posts about his home town
Ps.
The term WFH includes both fully remote and hybrid models – and there are dozens of variants contained within the term hybrid. Hybrid isn’t exclusively # on / # off. Good example of a model that is gaining speed is hybrid models that provide for on-site attendance for onboarding, training, collaboration, team meetings only. In this model, most “work” is done “from home”, but there is a clear expectation that employees are within a commutable distance (sometimes called hub and spoke), and attend on an as-needed basis. This is likely going to be the winning model for many organizations, as it allows for smaller real estate footprints (no dedicated seating or offices), but provides for the benefits of collaboration.
https://njrereport.com/index.php/2022/04/03/the-b-word/#comment-1251965
Don’t worry little Punkin,
I’m sure your neighborhood in Wayne ranks in the top 100,000 most searched locations in the US, given its elite positioning and quick commute for educators teaching at nearby failing schools, despite its current lack of nearby ping pong facilities. I’m sure there are video flyovers of all of Wayne’s attractions, like its famous fountains.
Home prices surged during the pandemic, but government agencies don’t take home prices directly into account when calculating inflation because they consider a home purchase to be a long-term investment rather than a consumer good. Instead, housing costs are represented by two main components, one that attempts to capture the monthly costs for people who rent their homes, and one that calculates what homeowners would have to pay each month to rent their own house. Rent inflation could continue to rise this summer before peaking at around 6.5% over the next several months, said David Wilcox, a senior economist at Bloomberg Economics and the Peterson Institute for International Economics. That would be a 36-year high.
No one,
I get it, it’s not easy moving from a place you spent most of your life at. I would have major trouble leaving north jersey. It’s my home.
As for Wayne, it’s a great little hidden gem in north jersey. Not because it’s some prestigious location, but it’s a beautiful town with down to earth people. It’s like a good ol American middle class town in the 80s or 90s that are not easy to find anymore.
Don’t know how long it will last as they are bringing what the rest of america is experiencing. High density condos/townhouses. Guess they are trying to kill this suburb like they did to the rest of america.
When I went to Disney, breaks my heart to see high density development after high density development. This is what america is becoming and soon enough wayne will be there too.
But for now…wayne is still a peaceful little town made up of single family homes with a population focused on family values….a great place to raise your family.
Pumpkin Face: You have addressed it 100 percent correct. That’s what WFH/ hybrid is, and that’s where the corporate world is going , recession or no recession, and of course some firms/ CEO s will be dragged kicking and screaming, but those dinosaurs will eventually be gone. The people that are actually in corporate America, and do the work, understand that. People who are not in corporate America, really should not care one way or the other.
Yes No One, are you that insecure that you found a place to retire that you are enjoying? I’m not attacking you, just firing negative comments your way. You posted an article that confirms your view, you don’t sound convinced. Maybe you should search for 5 more articles that confirm you views and post them as well.
Federal Reserve Chairman Jerome Powell is raising interest rates at the fastest pace since the 1980s. That has been easy so far because rates are low and the economy has been strong.
The hardest part lies ahead. Just as it proved difficult for the Fed last year to tell when to start raising rates, it is tough to know when to stop. What happens, for example, if the economy begins slowing sharply but inflation stays too high?
Because the Fed hasn’t confronted a situation like this one in decades, it will be tricky for most investors and even Fed policy makers to have much confidence over how the central bank would respond.
I’m just calling it how i see it. Glad you have to come to the defense of no one. What is he your uncle?
BRT says:
July 12, 2022 at 10:21 am
Yes No One, are you that insecure that you found a place to retire that you are enjoying? I’m not attacking you, just firing negative comments your way. You posted an article that confirms your view, you don’t sound convinced. Maybe you should search for 5 more articles that confirm you views and post them as well.
Wasn’t meant to be attacking and I specifically said that.
Chi,
ARMs, from what I read, fairly common now to stress test the applicant to make sure they can handle the load to the max interest rate the contract allows for.
Honest question. Why the f’k do you care about wfh so much? I don’t get it. Aren’t you in your 60s? Retired? Weird as f’k. I don’t know one other person you age so passionate about this subject…
3b says:
July 12, 2022 at 10:19 am
Pumpkin Face: You have addressed it 100 percent correct. That’s what WFH/ hybrid is, and that’s where the corporate world is going , recession or no recession, and of course some firms/ CEO s will be dragged kicking and screaming, but those dinosaurs will eventually be gone. The people that are actually in corporate America, and do the work, understand that. People who are not in corporate America, really should not care one way or the other.
Same with your obsession with crashing the housing market. What 60 something takes that position? There is no way in hell you own real estate. No f’ing way in hell. 3b…you make no sense at all.
And the onslaught continues!!
June CPI expected to increase 8.8 percent from a year ago, 1.1 percent in a monthly basis. Aggressive hikes will continue at least short term.
No One says:
July 12, 2022 at 9:36 am
“Sarasota ranks second in country for people looking to move…”
I’m a Sarasota fan, but had/have a few concerns that caused me to buy a bit farther south. Like other places in FLA it has the good-problem-to-have of extraordinary growth. I worry that in the not-too-distant future you’ll have a Tampa/St Pete/Sarasota megaplex that will be a west coast version (smaller scale) of Miami/Ft Lauderdale/West Palm, with the ensuing traffic and congestion. I-75 is already difficult and I fear the main thoroughfares that connect 75 to the city and beaches (University, Fruitville, BeeRidge, etc) could become nightmares. I also found flights to Sarasota to be far less frequent and significantly more expensive than elsewhere in FLA — maybe that’s changed as the area has grown. Nonetheless, it’s a great spot and the beaches are absolutely world class. Enjoy.
From Dow Jones Newswires
An industrial growth slowdown is expected to expose the vulnerabilities of European capital-goods and industrial-technology stocks generally seen as safe havens, Bernstein analysts Nicholas Green and Saul Coleman say in a research note. The U.S. brokerage downgrades its ratings of Dassault Systemes, Schneider Electric, Siemens and Kion to underperform. Investors shouldn’t expect the growth momentum the sector experienced postpandemic to continue, it says. Key metrics have worsened since the so-called Covid-19 bounce, and high prices should weigh on demand while supply-chain frictions lead to cost increases, the analysts say. Bernstein cuts its average earnings expectations by around 6%, valuations by around 20% and its target prices by around 35% across the European capital goods and industrial-technology sector. (pierre.bertrand@wsj.com)
The U.S. economy looks able to withstand higher interest rates and will likely slow rather than contract, Capital Economics chief North America economist Paul Ashworth says in a note. Households and businesses appear to be well-placed to cope with higher interest rates as balance sheets are in good shape and rate-sensitive spending isn’t a big part of the economy, he says. Pent-up demand from the long period of supply shortages could keep the economy afloat for a year, while a drop in commodity prices should also support incomes, Ashworth says. “There is still a good chance that, as supply improves, inflation will fall back markedly, without the need for a massive decline in demand or a significant rise in the unemployment rate,” Ashworth says. (xavier.fontdegloria@wsj.com)
Small,
That’s the problem when marketing decides to label your location as best place to live. It’s marketing to all the lemmings to come there. You know what follows….
The more people that move away from nj to the south…the better our quality of life becomes in nj. Too bad people still keep coming to nj. You would thing with all the negative marketing of nj, it would stop.
Yeah just got my dad a ticket for ewr-sarasota.
He got a good deal last year on Jet Blue, but apparently they aren’t flying that route anymore (moved to JFK), and the only direct option from Newark is United. Ended up being twice the price, but really, still easier than dealing with JFK. Nobody wants to do the drive from Tampa either.
Sorry Chi, but you’re gonna have to cancel that medical appointment.
https://patch.com/new-jersey/montclair/s/ibpw3/honey-laced-with-erectile-treatment-by-nj-company-violates-law-fda
SmallGovC,
You are absolutely right, those east-west roads like Fruitville stink when you’re in a hurry. And for the past year they’ve really messed up traffic with a huge traffic circle project next to the bay in downtown.
From what I can tell, the downtown condos on/near the water are one of the best places to live, they can practically walk to restaurants and arts and the Whole foods.
St. Armands/ Bird Key Lido Key also count as Sarasota, those would be cool places also with walkable shopping and restaurants.
I’m in Longboat Key, near the country club, so lots of golf/tennis/restaurants nearby, then also St. Armands, plus the LBK Publix which means I only need to leave the island for the mainland once a week at most. Other than to go to an Opera across the bay. The Sarasota Airport has really grown a lot in the last few years. United normally has 3x daily service direct from Newark during the busy season and at least 1x daily off season. American is serving their hubs. And if worse comes to worse, Tampa Intl is 90 minutes away by limo, and they have lots of options.
Naples is a cool place too, visited a couple of times, but it was hard to picture what life is really like there.
Best thing about Longboat is that because there is just one country club there it turns into a great way to make friends out of your neighbors, I’ve made friends from golf and tennis, my wife has made friends from golf & pickleball and yoga classes. We’re among the youngest there but over the past 2 years there are more younger people coming enabled by remote work.
NoOne,
Sounds nice. I know Florida pretty well. It’s a smart place to retire if you are on the coasts. Though traffic, was already a nightmare when I was a kid. When I was down there pre-covid, it was worse than up hear in the Orlando and Palm Beach areas in the off season. I suppose if you aren’t driving anywhere, then it’s really not a big deal. I love both coasts, but I’m a sucker for the Atlantic.
Libturd,
Though it’s not the pura vida of Costa Rica. I’d love to be reading your notes about life down there.
Hopefully soon.
Springsteen tickets are going on sale soon. You need to register as a verified fan to increase your chances of getting tickets.
Florida: Too hot and too swampy humid for too many months out of the year. I need definitive seasons. I missed the boat on areas I would consider like Nashville or Charlotte so I’m probably shackled to over-regulated, over-taxed and uber congested North Jersey.
Fast
The suburbs of north Dallas are nice and still have nice houses in great neighborhoods for what a pos cape in haughtyville nj go for. Austin has gotten very pricey in the last few years. Houston is too humid and crowded and flood prone for me.
Did anybody get the Billy Joel reference?
Eddie,
Florida has two seasons. The season when you’re there and the season when you’re out of there. I’d suggest being out of there Mid May to Mid October when it’s hotter and rainier. I’m going to try to avoid being year-round in FL even after retirement.
Different parts of FL have different weather patterns. Miami is pretty much always hot. Coastal areas have a bit more moderate temperatures than inland areas. Orlando can get frosts in the winter.
The weird thing I noticed on the gulf coast is that the thunderstorms seem to hit much harder and more consistently a few miles inland, and less on the island. Probably because it’s at least 5 degrees warmer inland during the warmer months.
It wasn’t until I started playing golf about 6 years ago that I really realized how long it stays cold in NJ. November through April is pretty much impossible or unpleasantly cool golf weather, other than some random nice days that seem to always come on workdays not weekends.
I did. Alexa, play something from Billy Joel.
NoOne,
My crazy rich granparents on my birth father’s side, had an apartment about thirty floors up on the Galt Ocean Mile in Ft. Lauderdale during the 80s and 90s. I used to sit on their North and East facing balcony and watch the storms erupting daily inland while it would remain sunny and clear just five miles away where we were. Sometimes, the rain would even get up to the Intercoastal Waterway. But rarely did it storm on the beach in the Summer. Crazy phenomenon.
Bit of an end of the day sell off on the markets, which is peculiar on a day where Oil is off nearly 10%.
HMB,
POS cape in haughtyville NJ.
Not a cape, but some sucker paid $1.3m for this POS bilevel in Millburn in April, so close to I78 that exploding tire debris might fly into their backyard. Ugly as sin from the front, sit in your backyard and soak in the soothing tones of 24/7 interstate noise. Divers will be stepping on the gas to accelerate to merge onto 78 from the onramp from 124 onto 78 even closer to your backyard.
I wonder if there’s such a thing as whole house noise cancellation systems?
Check out the satellite map view on this one.
https://www.zillow.com/homedetails/37-Oval-Rd-Millburn-NJ-07041/38675225_zpid/
Here’s a classic POS cape in Millburn, sold for $840 a couple of years ago, what a lovely street view on google. You can see when they are putting the lipstick on this pig to flip it for over $1m.
https://www.zillow.com/homedetails/4-Rahway-Rd-Millburn-NJ-07041/38675246_zpid/
Holy chit. That is disgusting. Unbelievable.
No One says:
July 12, 2022 at 5:09 pm
HMB,
POS cape in haughtyville NJ.
Wow, $1.3 million.
Still huge shortages of odd shit – apparently there is an enormous shortage of flexible air conditioning duct.
I’ve been trying to find 16” hvac duct. I’m told that maybe we might see some in October.
Big impact to hvac installers and new home builders. So much so that states have passed laws to rescind insulation and energy efficiency code requirements to allow builders to finish projects.
Getting dirty out there…
“Did they intentionally leak 10.2% so that the official release number will seem more tolerable by comparison? #CPI”
“The labor shortage in housing has never been more clear to me. We lost a pool of workers during GFC. It took 10+ years to mostly recover. Pandemic hit, massive layoffs. Then a quick ramp up in hiring. Layoffs are now hitting again. Rewarding industry with whiplash & uncertainty”
https://twitter.com/aliwolfecon/status/1546929420522356738?s=21&t=PSxm2-v3ipM72VIm2gjiIw
“Here are the reasons why housing inventory is so low right now in the United States. It started 18 years ago”
https://youtu.be/pjFmGTIjm_s
No One
That is depressing.
Here’s a 1990 house in Carrollton for 525k. Less than 10 minutes from Hmart plaza and 99 ranch plaza. There must be over 100 stores in restaurants in those 2 plazas alone. Plus about 25 – 30 minutes north of American Airlines arena.
https://www.zillow.com/homedetails/2004-Diamond-Ridge-Cir-Carrollton-TX-75010/27273672_zpid/
There’s this for 819k
https://www.zillow.com/homedetails/4136-Catawba-Ave-Carrollton-TX-75010/69694201_zpid/
Pussies…only good for cheating on people’s wives.
https://www.tmz.com/2022/07/12/uvalde-school-shooting-video-police-retreat-inside/
Main focus is tomorrow….. everything else is noise…. that is a recession trade…. the last step is sell off the cyclicals…. just an observation, not a prediction.
Libturd says:
July 12, 2022 at 3:11 pm
Bit of an end of the day sell off on the markets, which is peculiar on a day where Oil is off nearly 10%.
House is nice, but typical of the south…just high density housing even when they build single family. Houses on top of each other and mass produced. That’s one good thing about the northeast…
Hold my beer says:
July 12, 2022 at 6:32 pm
There’s this for 819k
https://www.zillow.com/homedetails/4136-Catawba-Ave-Carrollton-TX-75010/69694201_zpid/
Yup…all the money that went into inflation trades will be drained and eventually put back into high growth/small cap.
chicagofinance says:
July 12, 2022 at 6:45 pm
Main focus is tomorrow….. everything else is noise…. that is a recession trade…. the last step is sell off the cyclicals…. just an observation, not a prediction.
Everyone forget this CPI print . Trade the reaction not the print. As far as inflation it’s a lagging indicator and it’s going to collapse. Very shortly it will be in the rear view mirror. A recession has been looming for years and this past year. No more steroids demand has been pulled so forward it’s now inescapable. Bonds will be firm and equities should not be strong based on the reason for the bonds strength. The equity market will destroy people in the coming years it’s return free risk trading ex growth.
My boy. He is on point more so than not…thought it was worth sharing.
Straight up scary stuff. All the Fed intervention haters are going to get their wish…I hope they survive the hell.
“FED’S BARKIN: I AM CONCERNED WHETHER THE UNITED STATES WILL HAVE THE FINANCIAL CAPACITY TO COMBAT FUTURE DOWNTURNS.”
That debt bubble correction is going to destroy people’s lives…
Thanks Chi. Always keeping me straight.
New research shows that children of immigrants were nearly twice as likely to become rich as the children of people born in the United States.
Immigration is the key to American exceptionalism.
https://twitter.com/alecstapp/status/1546836025615568902?s=21&t=PSxm2-v3ipM72VIm2gjiIw
Lib:Ukraine not going anywhere either, and that will impact well into the winter. There won’t be any kind of settlement any time soon.
And the deflation case continues to build…
JUST IN: Google plans to slow hiring for the remainder of the year in the face of a potential economic recession, CEO Sundar Pichai said.
Wow, incredible. Elon vs musk. The narcissist in trump can’t help himself. Keeps going after elon. Grab some popcorn…
I feel bad for people betting on this inflation lasting…we are at war with deflation and you are blind if you don’t think so. The market is not based on logic.
If you listened to lefty and I last month, shorting oil was the way…few had the balls to do it.
“The September WTI crude oil futures contract, which becomes the front month contract next week, is below $92/barrel:”
Cry about it…
Bernie Sanders has said:
Today, in America, just three Wall Street firms – BlackRock, $BLK, Vanguard and State Street, $STT, – manage $22 trillion in assets. These three firms are major shareholders in more than 96 percent of S&P 500 companies. Obscene.