From Marketplace:
Home prices have risen 423% in 40 years, fueling economic discontent
We’ve been dealing with high inflation in this economy over the last several years, with everything from groceries to new vehicles to construction supplies soaring in price.
But for one item in particular — houses — we’ve seen such sharp inflation over decades that it’s starting to change the landscape of American economic life. What happens in society, and in history, when costs for basic necessities, like shelter and food, shoot up in price?
Let’s start by going back four decades, to 1984. The movie “Ghostbusters” was a blockbuster that year. And the median price of a new home wasn’t so scary: $79,900 in the fourth quarter of 1984, according to data from the Department of Housing and Urban Development.
Since then, consumer prices overall have risen 203%, according to the Bureau of Labor Statistics information and analysis section. Meanwhile, the median price of a new home was $417,700 in the fourth quarter of 2023. That works out to an inflation rate of 423%.
“There’s no question that the cost of a house has gone up relative to cost of living overall,” said Christopher Mayer, co-director of the Paul Milstein Center for Real Estate at Columbia Business School. “More and more, a single-family home has become a luxury good, which has not been the case in the United States until now. It’s a trend that, if it continues, I think will change society substantially.”
Mayer conducted research in the 2010s finding that approximately 80% of people 65 and older owned their own homes, including a significant proportion who had neither a high school nor a college degree.
He said that for previous generations, working-class homeownership was plausible, even likely. “Homeownership was not just about people in the middle or the upper middle class, homeownership was something that people in the lower middle class could have.”
He’s seen this play out in his own family: “My in-laws lived in Redding, Pennsylvania; neither graduated from college. And yet, they were homeowners and owned multiple houses over their lives — having a part of the American dream. That would be very difficult for folks in the same circumstance, looking at the cost of homes today.”
Frist
“Homeownership was not just about people in the middle or the upper middle class, homeownership was something that people in the lower middle class could have.”
I said years ago on this blog that it will come to the point where government will ‘grant’ you the house based on your ability to pay the property taxes. A house on a 50 x 100 lot in a town similar to Passaic can expect an annual tax of ~ $40,000. 30% of the tax will go to the town and 70% to the federal government to fund programs rife with cronyism and abuse.
There’s a chasm between the haves and have-nots. You either have it or you don’t. Based on the model I outlined above, those collecting the boodle will be living like Roman monarchy. Most others will be squabbling amid the riff raff when not hypnotized eight hours per day by Tik Tok trash.
Italics off.
⚠️BREAKING NEWS!
*U.S. MARCH CORE RETAIL SALES RISE +1.1% M/M; EST. +0.5%; PREV. +0.6%
*BIGGEST MONTHLY GAIN SINCE JANUARY 2023
VERY STRONG ECONOMY
Ten 461. Hoo ha
The bellyaching about mortgage rates is about to begin
Pre market DJT dropping to $27 from $32
From 2 weeks ago trading at $70
Switching to a war-economy?
That fireworks show in the Middle east over the weekend was at least a billion dollars worth of high tech missile interceptors. US ships and patriot missile batteries on land as well as our Aircraft downed 80 one-way attack drones and at least six ballistic missiles. We fired patriot missiles, and the even more expensive ship based Aegis… those SM-3 interceptors cost up to $25 million a piece.
“WASHINGTON (AP) — House Speaker Mike Johnson said Sunday he will try to advance wartime aid for Israel this week as he attempts the difficult task of winning House approval for a national security package that also includes funding for Ukraine and allies in Asia.”
Going to be a battle in the media as well, the holdouts on the right in the ” Freedom Caucus” and the “progressives” on the left don’t want to fund the war effort. Expect a full on onslaught in social media and talking heads. It might even balloon to $200 Billion from the current $95 billion supplemental package that has been sitting on ice for two months now.
How to do it correctly.
https://youtu.be/vvHiRzwthys?t=134
JB,
You can buy Chinese model aircraft drone engines for a few hundred bucks. Make a plane out of balsa wood , no warhead required. Fly hundreds of them at your enemy for the cost of one US made interceptor.
Then watch them waste billions of taxpayer dollars on shooting down a bunch of model airplanes cause you can’t tell which one has a real warhead in it.
Have fun watching your enemy waste and expend money for nothing.
And if you are China, you are selling tons of airplane engines. It’s a hoot!
https://www.alibaba.com/countrysearch/CN/uav-engine.html
The Aussies really like their knives. It’s like Crocodile Dundee after all.
Second mass ‘stabbing’ in Sydney within 48 hours rocks Australia and sparks riot as grinning attacker wounds bishop before being pinned down by worshippers just miles from mall bloodbath
Fast: At some point the wheels will come off and it will all fall apart. The longer the madness goes on, the ugliest the correction/ collapse will be. Oh and worst Fed ever!
Sneaky Sneaky.
An Ohio man has been charged with murder after shooting dead a female Uber driver who had been tricked by scammers into going to his home to collect a package.
The fatal incident, captured on the driver’s dashcam, took place in the town of South Charleston, Ohio, on March 25 at around 11:25am.
William Brock, 81, told police he had been receiving fraudulent phone calls from scammers demanding money and had been threatened by them in the weeks leading up to the altercation.
On the day of the shooting, one called him telling him a relative was in jail. They demanded money from him, then placed an order via Uber for someone to collect a package from his house.
The driver was Lo-Letha Hall, 61. She was unaware the man was being targeted, and thought the job was legitimate. When she showed up, Brock shockingly whipped out a gun and demanded she identify who had sent her.
3b says:
April 15, 2024 at 9:32 am
Fast: At some point the wheels will come off and it will all fall apart. The longer the madness goes on, the ugliest the correction/ collapse will be. Oh and worst Fed ever!
Yup. Things like this should help
https://www.nytimes.com/2024/04/15/health/wuxi-us-drugs-congress.html?ugrp=m&unlocked_article_code=1.kk0.QUkZ.5SBdrhFbnKjo&smid=url-share
3b: No correction or collapse. Houses are not just a place to live, they are now up there with saffron, truffles, vanilla and ginseng. Houses are cultivated, rare commodities, like having a cube of expertly grilled Matsusaka wagyu beef. I expect a seven-digit price tag for my house. Any offer submitted for less will go into the trash can without a response.
Phoenix – metaphorical became literal. “Don’t shoot the messenger”.
Town Hall in Chicago (FlabMax Edition):
https://x.com/TheFP/status/1779555667784728784
What it meant to me will eventually be
A memory of a time when I tried so hard
I tried so hard and got so far
But in the end it doesn’t even matter
“A condominium in downtown San Francisco, an area that’s been rocked by several problems in the past few years, was sold last week for about half of its purchase price in 2019, as shown on real estate marketplace Zillow.
The property, a two-bedroom, two-bathroom condo on 1075 Market St, a five-minute driving distance from Union Square and a three-minute driving distance from the troubled neighborhood of Tenderloin, was listed for sale on Zillow on January 18 for $695,000. After spending months on the market, it was sold on April 8 for $675,000—about half of the price commanded by the condo in late May 2019, when it was sold for $1,250,000.”
“This is hardly an isolated case in the Californian city. According to a recent Redfin report, nearly 20 percent of home sellers in San Francisco are taking a loss on their sale—over four times more than home sellers at the national level, at 4.3 percent.”
‘Some 17.8 percent of homes sold in San Francisco during the three months ending on February 29, 2024 sold at a loss, Redfin found. In the three months ending January 31, the share was at 17.9 percent—its highest level in 11 years and a higher share than any other metro.’
https://www.newsweek.com/california-condo-sells-half-value-housing-market-rocked-1890201
Very Stable Genius says:
April 15, 2024 at 8:37 am
“RETAIL SALES RISE…”
That’s nominal, of course. As a result of Bidenflation, people are likely buying less , but paying more. Wouldn’t expect a dopey shill like you to know that, so hopefully the clarification is helpful.
Chicago: They we’re chanting death to America last week in Dearborn MI. Is this what the Democrats have to cater to in the hopes of getting Biden re-elected? Absolutely shameful.
Libel. Nice job, PoPo.
When Mr. van der Walt, 37, and three others died in a hot-air balloon crash in Arizona in January, the news shocked the skydiving community and made headlines around the world.
Last week, the accident was back in the news, when the Pinal County Medical Examiner’s Office released an autopsy report that said it had found high levels of ketamine, an anesthetic that in certain doses can have hallucinogenic effects, in Mr. van der Walt’s body.
The balloon pilot did not have a prescription for the drug, the report stated. Though medical workers sometimes use it in an emergency to relieve pain, the report said they had not used it that day.
The headlines, from local newspapers to international outlets, homed in on that detail: “Hot air balloon pilot had ketamine in his system at the time of a crash that killed 4, report says,” The Associated Press said. “Pilot in deadly hot air balloon crash had ketamine in system,” said The Times of London.
But that wasn’t the full story. Two days later, the medical examiner’s office reversed itself, adding a crucial detail to its report: Emergency responders had, in fact, given the ketamine to Mr. van der Walt.
3b says:
April 15, 2024 at 9:59 am
Chicago: They we’re chanting death to America last week in Dearborn MI.
Who? The laid off auto workers?
Hehe.
Beemer Drivers: Local
https://youtu.be/VZI1pQIXTLY?t=608
I think is fair that we pay for kids college so that they later on pay for missiles.
Win-win!
Jut remember those cheap $20,000 Iranian drones only fly at 115 miles per hour, it took them nearly 10 hours to reach Israel. They were easy targets, but the missiles used are expensive.
The F-35s Israel has are stealth with internal bays so only four AIM-120 missiles can be used. A single missile cost 1.1 million dollars to shoot down a cheap drone. They also have F-15s and F16s using similar missiles very expensive per shot.
Some Air to air footage released yesterday.
https://www.youtube.com/watch?v=E7uDL0RZx9k
Russia has purchased at least 6,000 Shahed 136 drones from Iran to be used against Ukraine and have copied the design and are mass producing it as well. Iran may have perhaps 10,000 or more. You can imagine that will deplete stocks of very expensive interceptor missiles purchased or built themselves.
If Bibi is going to strike Iran he will be going after the drone and ICMB and long range missile stocks and production facilities in Iran.
The US has kept Israel from striking Iran for decades by not selling them refueling tankers. It’s a one way trip for fighter jets otherwise. We are supposed to sell them four KC-46As refueling tankers supposed to be delivered in 2025. No idea if they were delivered or lend lease already. We may find out in the next 48 hours.
Flying there is another issue. Russia actually controls an airbase in Syria and has aircraft stationed there. They supposedly shipped some of the S-300 anti-aircraft missiles back from Syria but there still might be some there still now plus Syrian military, Iraq rebels and the Iranian Military. It’s 1,200 miles to Tehran….a long way to fly and they will know you are coming. Plenty if intel on the ground and satellite.
Condos, an interest given my poor experience, should be a fascinating watch in Florida as the new law takes effect in 2025 that requires most to start to collect appropriate fees to maintain or establish reserves. aA you may know, condo residents were allowed to vote annually to defer maintenance items and related fees for decades.
So that video was roughly 30 million American taxpayer dollars going poof.
Remember that as you file your taxes today . That is where your hard earned money is going.
Shot down a cheap drone. They also have F-15s and F16s using similar missiles very expensive per shot.
Some Air to air footage released yesterday.
https://www.youtube.com/watch?v=E7uDL0RZx9k
Hell, shoot all expensive missiles. Don’t bother using cannons.
It ain’t your money you are spending.
Pilot doesn’t care. Just like politicians.
They don’t care about spending taxpayer’s dollars either.
It’s crazy that the single largest check I wrote this year was to the IRS.
‘murica. Don’t take my moohlah.
https://www.dailymail.co.uk/news/article-13309883/Uber-driver-61-shot-dead-Ohio-man.html
What is crazier is that your government just throws it away.
Time for a revival of the Boston Tea Party.
Boomer Remover says:
April 15, 2024 at 11:09 am
It’s crazy that the single largest check I wrote this year was to the IRS.
Phoenix says:
April 15, 2024 at 11:03 am
“So that video was roughly 30 million American taxpayer dollars going poof. That is where your hard earned money is going. Shot down a cheap drone.”
Remind me, how many cheap Iranian (or Houthi etc) drones did taxpayers have to pay to shoot down when the last guy was prez? Elections have consequences.
SGC,
I’m non partisan. I hate them all equally.
Plus I had to work the weekend. Don’t need another assignment.
But without looking it up, I do remember this: “Force Majeure.”
Largest check I wrote was to to Uncle Sam too, won’t one pay for one of those missiles that is for sure.
Anyone see Cuban Twitter? He had to write a check for 288 million, he must have had one hell of a year… Of course he did not mention it’s only 20% for carried interest as capital gains..
https://twitter.com/mcuban/status/1779573824318521840
Phoenix: No Arab American citizens , not all of course, but there were some. This country took you in or your parents/ grandparents, and you shout death to America.
this was a momentous occasion that saw MacArthur and his forces fulfill the promise made to their Filipino allies in the early dark days of the war.
https://youtu.be/frFYG9cOhj4?t=1590
3b – Social Media says they are blocking the roadways today leading to Chicago O’Hare and a few Bridgers including the one crossing the hudson up Newburgh–Beacon Bridge.
Saw a Suzuki bike in the video, looked nice.
Buy it there, its 1200USD.
Want a Honda Grom, same basic shite: 4k, if you can get one.
It’s all extortion.
https://www.motodeal.com.ph/motorcycles/suzuki/shooter-115-fi
New Joker movie coming out soon.
First one was a masterpiece.
I don’t think it will be topped.
This conjunction of an immense military establishment and a large arms industry is new in the American experience. . . .Yet we must not fail to comprehend its grave implications. . . . In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.
Dwight D. Eisenhower. 1961
New Joker movie coming out soon.
First one was a masterpiece.
Indeed!
Fed and state taxes killed me this year. It seems like they couldn’t take enough and yet, my HHI from 2022 to 2023 was not that much different. I guess my money pays for O’Biden’s White House soirées and Smurphy’s teeth.
New Joker is a musical and a romance movie.
New Joker is a musical and a romance movie.
“I’ll take ‘The Life and Times of Pedo Joe’ for $500, Alex.”
Eddie
These?
https://styleduplicated.com/wp-content/uploads/2019/07/image-4.png
15 covers of “very well-known songs,” including gasp some show tunes.
Including this one of Judy Garland and Fred Estaire a remake….
https://www.facebook.com/watch/?v=220169739216872
Enjoy the Joker…
Nobody wants to pay for college. but paying for socialist universal healthcare for boomers is ok
I remember during the Gulf War, 1 patriot missile cost a million and each one was used to shoot down a cheap scud missile. Seemed like a horrible trade.
Basic math and looking at the contract for monthly payment info is so complicated. I guess looking up amortization schedule would be mind blowing.
https://www.dailymail.co.uk/yourmoney/consumer/article-13302555/auto-loans-debt-car-ownership.html
We need to bring back biplanes with a tail gunner to shoot down those slow flying drones. Would be so cost effective.
DNA did a tap onto 92 cents a share today
When Medicare passed in 1965 they figured you won’t not be on it too long, as life expectancy for men was only 66 years and 73 for women.
Hold, I bet you a big tesla coil would take care of all of them.
What no one talks about with home prices is the population growth on the same amount of land…
https://www.nj.gov/labor/labormarketinformation/assets/PDFs/dmograph/est/nj1790_2010.pdf
Double the amount of people in the country since 1950 – same amount of land…
“When Medicare passed in 1965…”
Key concept also being ‘passed’, as in legislatively through Congress.
Not dictated by a feeble old man so senile he shakes hands with invisible people.
SPX knocking on the door of 5000….earnings rubber meets the road beginning tomorrow with a number of diverse and well known names over the next few days…should be interesting, we break 5k and hold all bets off, things could get interesting.
Deficit obsessed boomer has nothing to say about that.
Juice Box says:
April 15, 2024 at 12:56 pm
When Medicare passed in 1965 they figured you won’t not be on it too long, as life expectancy for men was only 66 years and 73 for women.
Very Stable Genius says:
April 15, 2024 at 12:40 pm
Nobody wants to pay for college. but paying for socialist universal healthcare for boomers is ok.
Actually seniors do pay for their Medicare, very poor comparison .
I have paid through my taxes from 17 to 66 years old, plus I have $700 per month deducted from my SS as does my wife for a total of $1400 a month for Medicare. Look up IRMAA, I guess ignorance is bliss for people who don’t know how the system works.
I also paid my way for college, as did my wife, I am not sure if you are ignorant or just oblivious to reality. I do get a kick out of your posts, always good for a laugh. What else would you expect when you state a guide at Disney makes 2 million a year.
Dying is expensive in America. 58 million seniors 65+ in the U.S.A now and going to grow to 80 million or more. That last year of life with all of the medically necessary procedures and then the trip for the morphine drip…Very expensive last year of life for sure.
Medicare trust fund and Social Security trust funds lol…
Here are the trust fund dollars saved from all those payroll deductions.
https://www.youtube.com/watch?v=7GSXbgfKFWg
Medicare is government socialist universal healthcare for those 65 or older.
It is a Federal Government program paid for by all taxpayers.
Jim says:
April 15, 2024 at 2:25 pm
Very Stable Genius says:
April 15, 2024 at 12:40 pm
Nobody wants to pay for college. but paying for socialist universal healthcare for boomers is ok.
Hold : I saw that story a few days ago. She is an idiot, and now complaining they took advantage of her because she was a woman. Can’t make this crap up!!
Very Stable, And those people who get their college paid for will get socialist Medicare when they get old, at least theoretically. So, they get both paid for.
Juice: Don’t they have jobs to go to? Death to lazy assholes!!
3b
And her husband is paying $1,600 a month for his truck. What’s the excuse for that one.
The original “projections” on Medicare were tiny. It ballooned into a gigantic monster. Just like every other major program the federal government has come up with.
“I also paid my way for college, as did my wife, I am not sure if you are ignorant or just oblivious to reality.”
Or just run of the mill troll….
My tuition was $700 or so a semester worth every damn penny. Grad skool maybe $2400.
re: “at least theoretically”
It won’t be around. I mentioned that the Medicare spend is projected to be grow to about 11% of GDP. We will be running a several trillion dollar annual deficit for just Medicare alone.
Imagine if this mRNA tech pans out? They will live forever. A country full of 100 year olds? They are on the cusp of curing Pancreatic cancer with a trial underway now. The scientists are even working on a synthetic mRNA therapy for cardiac regeneration by rebuilding the heart muscle itself (increasing cardiomyocyte proliferation and angiogenesis) .
2.4 million people die each year from these types of diseases. What if they all can now live past 100 years old?
Very Stable Genius says:
April 15, 2024 at 3:10 pm
Medicare is government socialist universal healthcare for those 65 or older.
It is a Federal Government program paid for by all taxpayers.
Can you read???? Did you look up IRMAA???
A troll without brains , how convenient.
Jim goota love that too… Medicare is the cheapest health insurance.
Medicare pays first and if you also have group health plan from work or even a retiree coverage plan that is secondary.
Boomers need to get Covid and die..It’s for the children. (said in jest by me). It’s the Millennials and Zoomers who actually mean it. They will end up taking it out on my generaion the X Generaiton. I will not wake up from sleep as someone suffocated me with a pillow.
Sleepy Donnie Trump….nice ring to it.
I love how Trump’s criminal trial starts on Tax Day.
Bitchez
JUice Box says:
April 15, 2024 at 4:52 pm
Jim goota love that too… Medicare is the cheapest health insurance.
Medicare pays first and if you also have group health plan from work or even a retiree coverage plan that is secondary.
Boomers need to get Covid and die..
Juice I already tried that twice, and it didn’t work. Maybe the third time will turn the trick.
Happy Tax Day: https://youtu.be/S-kyUy8mXIU?si=TuDX5C41X37J-Q3B
3b that woman a victim? yeah, right. Tell her to start an Only Fans page.
That’s exactly what Medicare is. Socialized government healthcare for those 65 and older.
2 less on Medicare. When seconds count the police are only minutes away.
https://www.nbcnews.com/news/us-news/ohio-man-81-charged-fatal-shooting-uber-driver-mistakenly-thought-was-rcna147827
Phoenix: Or a Go Fund Me Page!
Biden should just tell me where to send the paperwork , proof of payment receipts, proof of graduation, GPAs , honors etc for undergraduate and graduate degrees, and then cut me a check for the entire amount. He can then forgive all the student loans he wants.
3b says:
April 15, 2024 at 6:32 pm
“Biden should just tell me where to send the paperwork…and then cut me a check for the entire amount.”
I have no doubt he’d have the DNC cut you a check if you promised to vote for him, all while trying to foist as much as he can on taxpayers.
Very Stable Genius says:
April 15, 2024 at 2:11 pm
“Deficit obsessed boomer has nothing to say about that.”
Bitter twit — with advanced TDS to boot!
Small: That works , I will cite for him. What difference does it make? I get a nice big fat check back! Oh and I want it tax free too.
Hehe
Married teacher caught naked in car with male student, 17, is the wife of Harvard-educated Department of Defense commander and they have a daughter the same age as her victim
3b
Three words for you.
That ain’t happenin’
Sorry
Phoenix: Just saying if they did, then I would be fine with forgiving whatever they want. In the meantime, did all these Death to America assholes take today off to protest? Maybe they were supposed to be WFH?
Someone touched my churro on a new jersey spring day.
My churro is so sweet, in each and every way.
Your churro is probably the size of a Timbit.
Did you see this?
https://www.youtube.com/watch?v=86qKgK0asGo
Lib: He could be Ecuadorean. Just saying.
Someone called Trump, Don Snorleone
College, socialist universal healthcare for 65 and older, missiles.
3 of them funded by taxpayers
So, what’s the key to the growth in General Electric? For years, their stock was in the basement and has had a nice run in the past 18 months. Is it their hand in the global wars? A combination of that and the Aero industry? And don’t gimme any O’Biden input here, he’s lucky he can wipe his own @ss.
There probably won’t be a retaliation from Israel before the weekend. Our Speaker of the house Johnson has pushed up the vote for War aid vote to Friday night, they are going to try and pass that package of aid to Ukraine, Israel and Hong Kong. It would not go over well if Israel launched a few dozen Jerico ICBMs tipped with 2,000 lbs of explosives and killed thousand of civilians, never mind using even a 1 megaton nuke, that would be very bad.
Culp is a great CEO. He came from Danaher. Basically Jack Welch was exposed as a fraud. All financial shenanigans. Focus on operating industrial businesses, and separate out conglomerated operations. It helps management be more efficient and also investors to provide better and clean valuations. Immelt was an empty suit.
Current boomer generation is the worst.
Inmoral and rapacious.
Always justifying government funded socialism for them, and opposing every benefit for younger generations.
Ten at 465 and steady. By rights you would have assumed a buying frenzy off of the Middle East news. Something wicked this way comes.
VSG
Did a cougar break your little heart?
“College, socialist universal healthcare for 65 and older, missiles. 3 of them funded by taxpayers….”
troooooooooooolllllllllll
UPDATED TUE, APR 16 2024
8:48 AM EDT
Dow futures rise 200 points on strong earnings
Live updates
Bears have been wrong at every turn for the past 3 years.
Very: Younger generations paid off their loans too, and or paid along with what their parents helped paid for. Do those young people get their money back?
Bears have been wrong at every turn for the past 3 years.
Are they lost? Can they not find food? Have they lost their cubs? Are they depressed because they’re always wrong? I have some Chex Mix I can give them.
Not so much news today. We are closing a remote office in Denver and consolidating floors here to fill in the empty space at our office. Nobody wants to be in the office. We have a quarterly all hands this week. Will be interesting to see who shows up in the office.
Ten 469
A very interesting read about NJ taxes…. We are #1.
https://www.msn.com/en-us/money/retirement/the-tax-horror-stories-keep-piling-up-in-new-jersey/ar-BB1lFsQY?ocid=winp1taskbar&cvid=00038171fbd14b69b643c836d0b23189&ei=21
Jim
You don’t get it. You gotta pay up for quality.
Funny story. Guy who is getting a NJ pension complains about NJ pensions, so he runs to avoid paying into the system that feeds him. Lazy old goat.
One story explains a lot about why so many people are fleeing New Jersey hits close to home: It’s my father’s story.
He became the school’s superintendent in the town that gave him his first job.Rising taxes and public pension costs had not yet put the squeeze on working-class New Jersey families.
Retired and living on a pension, he was alone. Worried that future tax increases would eat up his retirement savings, my then 81-year-old dad, who’d spent his life in New Jersey, wanted out. state’s leaders treated residents like an ATM, passing tax increases and saddling the state with public pension obligations that priced him out of the home he owned.
“One state retiree, 49 years old, paid, over the course of his entire career, a total of $124,000 towards his retirement pension and health benefits. What will we pay him? $3.3 million in pension payments over his life and nearly $500,000 for health care benefits—a total of $3.8 million on a $120,000 investment.”
Jim
NJ may be number 1 in taxes, but it’s only number 2 in forever chemicals in the water supply.
https://abc7ny.com/new-jersey-contaminants-pfas-drinking-water/13285805/
Paying to send kids to schools built before Eisenhower was president is a proud nj tradition. Not to mention how expensive nj roads per mile to build are. Highest per state highway mile in the country by a wide margin
https://newjerseymonitor.com/2021/11/19/report-new-jerseys-highways-are-the-worst-and-costliest-in-the-nation/
Our Governor Murphy did say if taxes are an issue for you, than perhaps NJ is not for you. That article was telling, and again illustrates that it was much easier to live and raise a family in Bergen Co, NJ, or just in general in those days then now.
3b,
No one wants to live in those Red states. We have unicorns here in Bergen County. We pay for an uber quality of life!!
Ten 469…lol, chi. JFC I dodged a bullet. Best loss I’ve taken in a while.
Jim, great MSN article on NJ. Was not aware GWB is not even a century old. Wonder what it was like before and shortly after being built.
What an out-and-out rape and pillage was done to your State by its decades of ‘leaders’.
Seems like NJ went from a great classic cruising car – think 1966 Corvette – to some shitty rental beater that a barely 21 year old takes from Hertz, knocks out the living daylights, moves on, and leaves it battered on the lot for the next guy to come along and abuse and dump.
For the nerds on here:
https://youtu.be/7G4ipM2qjfw?t=159
That “barely 21” year old was boomer. Right around 1966.
Exactly who caused the problem. Now leaving his sh it box problem to his own children.
leftwing says:
April 16, 2024 at 10:53 am
Seems like NJ went from a great classic cruising car – think 1966 Corvette – to some shitty rental beater that a barely 21 year old takes from Hertz, knocks out the living daylights, moves on, and leaves it battered on the lot for the next guy to come along and abuse and dump.
Hehe.
Disheveled mugshot emerges of teacher found naked in back of car with male student, 17, as she appears in court after cheating on her Department of Defense chief husband.
She will be fine once the alimony checks start cashing. Get a new ‘do, some fresh clothes, and market herself on Hinge.
Oopsy.
Life in the fast lane: Former congressman Madison Cawthorn is left stunned on interstate after rear-ending Florida Highway Patrol cruiser in his luxury Mercedes
Symphony Sid
Pleasant Valley, United States
7 minutes ago
Are there any teachers that DON’T have sex with a student ?
Hehe. Funny post Sid.
I think the answer is only the ones that can’t.
I thought Monclair was Uppity. Guess now it only gets a 3 star Grey Poupon rating now.
Montclair Officer, Suspect Both Shot In Exchange Of Gunfire, Prosecutor Says
“For the nerds on here:”
Good to see you watching something less TikTok/X content-related, for a change.
“I thought Monclair was Uppity. Guess now it only gets a 3 star Grey Poupon rating now.”
It was either the actions of a militia or a hunting accident.
LIVE
Updated
April 16, 2024, 11:59 a.m. ET10 minutes ago
10 minutes ago
Live Updates: Search Continues for First Juror in Trump’s Criminal Trial
Here’s what to know as Trump’s criminal trial continues.
The challenging process of choosing a jury in the first criminal trial of a former American president proceeded slowly Tuesday morning, as prospective jurors were questioned individually about their ability to fairly consider the charges against Donald J. Trump.
“That “barely 21” year old was boomer. Right around 1966.”
I get that’s your schtick and you have shows each day.
It’s not accurate. Not every State is that way. Most aren’t.
It’s bullshit liberal policies that take from the productive to encourage and propagate the unproductive. And the soft minds of the citizens who feel self-righteous selling their own children’s futures for the equivalent of a multicolored lawn sign who when confronted with reality either shrug with the limp reasoning of “both sides do it” or worse with faux indignation and -isms.
And then loudly dump the beat up rental (NJ) for the problems their philosophies caused and proudly shout out their destination to one of the ‘classic’ states….
Teachers are the real heroes.
https://www.dailymail.co.uk/news/article-13314695/erin-ward-nebraska-teacher-mugshot-court-government-director-husband.html?ico=related-replace
Erin Ward is kinda mid. That 17 yo guy knew what he was getting though. If guys that age can go to war, they can survive an adequate-looking 45-yo substitute teacher humping them. He could grow up to be the next Macron.
I can imagine Erin Ward as Norm MacDonald’s heckler in this infamous clip
https://www.youtube.com/watch?v=dAg9M-O9wGo
No One …. hah!
On the topic of property taxes…. $5K annual property taxes for the below linked property. If I have to move, and I have to move within next 12-24 months, then it might as well be close(r) to family, however undesirable they may be.
h**ps://www.zillow.com/homedetails/7151-E-Rancho-Vista-Dr-UNIT-7002-Scottsdale-AZ-85251/82821256_zpid/?view=public
Finally, really surprised to see a strong market open today given the full red candle yesterday. Normally this would have been followed up by a gap down open, and not relative buoyancy.
“And then loudly dump the beat up rental (NJ) for the problems their philosophies caused and proudly shout out their destination to one of the ‘classic’ states….”
I resemble that statement. For what it’s worth, Clark County is blue. And I was adamantly against the rent control/freeze and the eviction freeze. So much so that I emailed the individual town council members both before it was enacted and after, to tell them I told them so. There are very few mom and pop rentals left. All luxury rentals now.
Boomers Bought Up the Big Homes
WSJ
“ Boomers are on top in a housing market where tight inventory, higher interest rates and steep prices are making homeownership less affordable for the average family. Many of these older homeowners paid off their mortgages on properties that have appreciated tremendously in value. ”
ChiFi can post the entire article if you are interested.
Federal Reserve Chair Jerome Powell said Tuesday that it will take “longer than expected” to achieve the confidence needed to get inflation down to the central bank’s 2% target, signaling that it will also likely take longer to cut rates.
Doesn’t Powell know that O’Biden passed the Inflation Abduction Act?
Boomers Bought Up the Big Homes. Now They’re Not Budging.
Many empty-nesters are staying put rather than downsizing, keeping housing inventory tight
By Rachel Louise Ensign and Rachel Wolfe
Baby boomers bought up many of the big homes across the U.S. when they were raising their families. Now they’re staying put, even though their kids are all grown up.
Boomers are on top in a housing market where tight inventory, higher interest rates and steep prices are making homeownership less affordable for the average family. Many of these older homeowners paid off their mortgages on properties that have appreciated tremendously in value.
Some are happy with their big houses. Others would like to downsize, but are deterred by the same high costs that are restraining other prospective buyers on lower rungs of the housing economy. Many are working longer or planning on an active retirement, and are in no rush to move to a retirement community.
About 28% of all U.S. homes with three or more bedrooms are owned by people between the ages of 60 and 78 living by themselves or with another adult, according to a Redfin analysis of 2022 census data. Millennials living with children own just 14% of these bigger homes. A recent Fannie Mae survey found that most Americans 60 and older don’t intend to ever move.
Just a decade earlier, empty-nesters in the silent generation, who at the time were about 67 to 84, owned 16% of homes with three or more bedrooms. Meanwhile, members of Generation X with kids, who were 32 to 47, owned 19% of those large homes, Redfin found.
Boomers own half of all of the $32 trillion in home equity in the U.S., according to a Redfin analysis of Federal Reserve data.
For years, some have predicted that boomers would start selling off their big houses en masse, flooding the market with properties. Instead, many aren’t budging, similar to younger homeowners who don’t want to give up their low-rate mortgages.
The problems, though, are deeper than boomers not moving.
Home-building activity plummeted during the housing crisis and remained depressed for years, contributing to a historic decline in the construction of new homes and a housing shortage. A rapid run-up in interest rates over the past two years sent mortgage rates soaring.
And older homeowners downsizing in droves wouldn’t actually solve the overarching issue that there are not enough homes on the market. Instead, it would likely lead to more competition for smaller homes.
The state of the housing market has left people on all ends of the housing spectrum unhappy. Renters can’t buy first homes, homeowners can’t trade up and older homeowners are disappointed their adult children can’t afford to live nearby. That’s contributing to gloomy feelings about the economy at a time when many of the typical metrics, like unemployment, indicate that the U.S. is going strong.
Mortgage rates, after falling late last year, are creeping back toward 7%, which promises to keep some would-be homeowners from being able to buy. Hotter-than-expected inflation data released Wednesday will likely prevent the Fed from cutting rates any time soon, which means mortgage rates will stay high, too.
Empty nests
Hanging onto their properties has helped boomers accumulate a level of wealth greater than any other living generation. Median prices of existing single-family homes have increased more than 10-fold since the early 1970s, when the oldest boomers were buying their first homes.
Richard and Laurie Brooks have bought and sold some half-dozen properties over the past four decades, starting with a condo Richard bought when he was 24 for $122,000.
The couple traded up to their current Westwood, Mass., home 22 years ago. They paid $1.5 million for the 5,000-square-foot, five-bedroom property because they liked the top-rated school district and family-oriented vibe. The couple also have a Martha’s Vineyard home and rent an apartment in Boston to take advantage of the city’s restaurants and theaters. They estimate the Westwood home could sell for $2.5 million. They own both of their properties outright.
Richard and Laurie say they have too much space in Westwood, but don’t like their other options. They have effectively closed off the second and third stories except when their two daughters come to visit.
When the couple moved in, every house in their small neighborhood held a young family. Now, half are empty-nest boomers like them. “You would think our entire generation would have all moved out by now,” said Richard, a 64-year-old attorney.
The Brooks’s daughter Sandy Kovacs, 33, would like to buy a home but feels she can’t afford one in Martha’s Vineyard, where she lives. She, her husband, Robert Kovacs, and their 2-year-old son reside in the guesthouse of her parents’ island property. Sandy, a wedding planner, and her husband earned a combined $250,000 in 2023, but Robert was laid off from his tech job in January. The median home price in broader Dukes County is $1.8 million, according to Redfin.
It’s not exactly what Sandy envisioned for her adulthood. Still, she doesn’t want to complain. “There are such benefits,” she said, “because we would never be able to afford something like this.”
Low-rate loans
Even though families have struggled with inflation, U.S. household wealth has grown in recent years, helped by massive government stimulus measures during the pandemic and a still-hot job market. Boomers had a median net worth, defined as assets like homes minus liabilities like mortgages, of nearly $411,000 as of 2022, St. Louis Fed researchers found. That was higher than any other age group.
“The timing has been advantageous for this generation. They had access to and purchased a diverse range of assets at affordable prices,” said Lowell Ricketts, a data scientist for the St. Louis Fed who researches wealth.
Nearly 80% of boomers own their primary residence and about a quarter own an investment property, the St. Louis Fed analysis found. More than half of them have retirement accounts like 401(k)s, with a median balance of $191,200. About 27% own stocks and bonds outside of retirement accounts, with a median amount of $201,800.
Boomers are much less likely than millennials to have credit-card debt or auto loans. Those with mortgages often locked in ultralow rates in the years that followed the 2008 financial crisis.
Mark Aldridge, 63, grew up in a 900-square-foot home in Middletown, Ohio, when the town’s steel industry was still vibrant. After studying finance in college, he started investing his and his parents’ money in the stock market.
He paid $68,000 for his first home in Middletown in 1988. He traded up as prices rose, using the proceeds of each sale to fund the next. Eventually he moved to the Columbus suburbs, where he had four children and built a business as a financial adviser.
In 2016, he and his wife, Komal Aldridge, who is a doctor, paid $535,000 for their biggest home yet, a five-bedroom with 4½ bathrooms spread over five split levels. “I have a bigger basement than the entire house I grew up in,” Mark said.
The Aldridges have paid off their mortgage. They are considering buying a somewhat smaller home in cash once their two youngest graduate from college. Home prices in the Columbus area are up 65% in the past five years, according to Redfin. The couple aren’t sure exactly what they’ll decide.
“I’ve read a lot of Warren Buffett. He lives in the same house he’s been in for decades,” Mark said. (Buffett, 93, has lived in his five-bedroom Omaha, Neb., house since 1958.)
Nowhere else to go
Many just don’t see a better alternative to their big homes. Smaller properties with amenities that might appeal to older homeowners, such as no stairs and close proximity to services, are scarce in many areas, said Jennifer Molinsky, director of the Housing an Aging Society program at Harvard’s Joint Center for Housing Studies. The ones that do exist can be expensive, she said.
People also have big financial incentives to stay put. More than half of boomers have no mortgage. That group pays a median $612 in monthly housing costs, which includes insurance and property taxes, the Redfin analysis found. These homeowners could, at least theoretically, sell and use the windfall to buy something else. Those with mortgages face a different calculus: They would generally have to give up their cheap loans and borrow at today’s much higher rates to move.
Homeowners whose properties have appreciated dramatically might also face a big capital-gains tax bill if they choose to sell.
Elaine Garrison would love to move from the Palm Beach Gardens, Fla., home where she and her husband, Rick Garrison, raised their two sons.
“The house is too dang big,” said Elaine, 69. “I don’t need a formal dining and living room. I don’t need four bedrooms.” What she does need: a place without stairs that aggravate her lower back every time she uses them.
The couple’s primary mortgage costs $1,750 a month including taxes, interest and insurance. A second mortgage, which they took out 15 years ago to pay for living expenses, runs between $700 and $800 a month. Their home insurance is up steeply, from around $7,000 in 2020 to $11,000 this year.
Still, they believe they would have to pay more if they bought a smaller home in the area. The Garrisons have also looked into renting, but they found that it would run them about $4,000 a month.
She might be able to buy something in another state, she said, “but I’m not doing that.”
Still, boomers are often in a better position to buy than anyone else. They are much more likely to buy in cash, which blunts the effects of higher interest rates and gives them room to bid more in hot housing markets. Boomers made up 31% of home buyers, while millennials made up 38%, a 2023 National Association of Realtors survey found.
The Foam Dome
Jim and Sharon Erwin paid $300,000 in 2015 for their three-bedroom home in Gunnison, Colo., a small college town where skiing is popular. It was a downsize from a 4,000-square-foot home in the Denver area, and they now own it outright. The third bedroom is set up as an office, where Jim, a 71-year-old retired property appraiser, watches financial news accompanied by the family cat, Boomer.
In recent years, the Erwins decided to lend money to their son, Jeff, to help him buy a home. Home prices in their county have doubled in the past five years.
Their son had a hard time finding properties he could afford, even with the parental help. So Jeff, an artist, zeroed in on an offbeat property a five-minute drive from his parents, and used the loan from them to pay $420,000 for it in September 2021. He now pays his parents about $1,100 a month.
Much of the two-bedroom home is covered in a thick layer of spray foam, which keeps it insulated in the town’s very cold winters but also makes it look like something from “The Flintstones.” Jeff, 33, and his wife and 1-year-old son love living there. They call it the Foam Dome.
His father was less enthusiastic at first. “When I saw his face when I showed him the house, it was not encouraging,” Jeff said.
Michael and Heather Sandifer, who are 73 and 77, have no plans to leave the three-bedroom Greenwich, Conn., home they bought in 1992. They love the place and figure that moving to an apartment or smaller house in the area would cost them much more. They owe about $170,000 on the property at a rate around 3%.
Heather, a former textile designer, has taken over two of the bedrooms as studios for her botanical-focused art. The property is close to local walking trails and a train line to New York City. The Sandifers enjoy cooking together in the kitchen almost every day.
“We’re kind of stuck where we are, but in a nice way,” said Michael.
Offering this to enrage Pumpkin
https://www.linkedin.com/pulse/smart-investors-edge-why-wfh-policies-new-investment-tsipursky-d0a7c/
It begins:
“Is your investment strategy stuck in the pre-pandemic era? It’s time to consider a game-changing factor: WFH policies. Today’s smart investors are not just looking at financials; they’re diving deep into a company’s WFH policies, recognizing them as a significant indicator of future success.
Unveiling the Advantage of WFH Policies
The Q4 2023 Scoop Flex Index reveals an intriguing trend: companies embracing flexible work arrangements are not just surviving; they’re flourishing. The evidence is staggering. From 2020 to 2022, companies with full flexibility led their peers by a remarkable 16% in revenue growth, adjusted for industry differences. This trend isn’t confined to the tech world; non-tech companies with flexible policies still boasted a 13% growth advantage.
But what about hybrid models, which blend remote and office work? These companies, too, are showing their prowess, outpacing fully in-office companies by a growth margin of 3%. This may seem modest, but it highlights the efficacy of a balanced approach in driving business growth.
The corporate world’s shift toward flexibility is unmistakable. By the end of 2023, 62% of US companies had adopted some form of work location flexibility, a significant increase from 51% at the year’s start. Meanwhile, companies insisting on full-time office work dwindled to 38%. This shift transcends a mere pandemic reaction; it’s a strategic move towards adaptability and resilience.
Start-ups, especially those established post-2010, are leading this change, with 93% offering flexible work arrangements. This number stands strong even outside the tech sector. The message is clear: the future business landscape will prioritize flexible work, with traditional office work likely dwindling to a minority.
Using WFH Policies for Investment Decision Making
Jeff Klemens of Sageview Capital highlights that in his decision-making of which companies deserve investment, the efficacy of WFH policies is undeniable. That’s especially the case for sectors where human capital reigns supreme — like tech. With assets primarily comprising laptops and data storage, the real value lies in the talent pool — from engineers to sales experts. How these teams collaborate significantly influences overall performance.
However, it’s not just about offering flexibility. Consistency in WFH policies is crucial. Inconsistent policies can lead to interdepartmental friction, hindering productivity and ultimately affecting customer experience. Successful hand-offs across departments, vital for customer satisfaction, depend on clear communication protocols, which are defined by coherent WFH policies.
Investors, take note: WFH policy clarity and employee buy-in should be integral to your investment criteria. The trade-off between attracting top talent globally and creating a localized team nucleus deserves more attention than currently given. Policy clarity should start at the highest level, including the board of directors.”
Thanks ChiFi
Once, when i was tiny, my father tried to send me away to a school for kids who act right.
They woulda put a gun in my hand and marched me off to see the Promised Land: https://youtu.be/tJx0HftF6Vk?si=v6ojFqU7qCltdpLn
“I resemble that statement. For what it’s worth, Clark County is blue. And I was adamantly against the rent control/freeze and the eviction freeze.”
Wasn’t targeted toward you but…
And, your example, really? A little bit of self interest embedded in that ‘free market’ philosophy at the time performed, no? LOL.
As Nevada has grown progressively more Blue over the decades with its in-migration flows from Northeastern liberal shitholes expect the amenities you value in NV and don’t receive in NJ – government efficiency, responsiveness and small size; prudent spending – to disappear as well. That was the point of my post.
And why I chuckle when I drive the Southeast and see the “Don’t you NY my [FL, TN, etc]” window decals on vehicles from those Red states.
Your political philosophies wrecked your home State. Leave the destruction there. Please.
Powell said a few months ago debt is growing faster than the economy, and called it unsustainable. Here were are now another Trillion more in debt.
Congress voted last June to suspend the debt limit when it was $31.4 trillion and less than a year later and it’s now $34.6 Trillion.
3 Trillion or more in a year?
There isn’t a single Deficit Hawk left in Congress.
What happens when the next crisis comes around?
“Powell said a few months ago debt is growing faster than the economy, and called it unsustainable. Here were are now another Trillion more in debt.”
Kind of like spending $100k on your credit card for junk worth $80k and feeling that everything is going just dandy because your garage is packed with the stuff.
But we’re doing GREAT! Look at all the new THINGS we have!
SlowJoe, master of the negative arbitrage trade. Let’s drop another $3T to ‘purchase’ $2T of non-productive GDP…
He’ll make it up on volume. Derp.
One trillion more every 100 days.
Any questions?
Fast: I told Jerome back in December that we did not have inflation on the run, and that I did not understand how he could see rate cuts in 2024. I also told him he should STFU with his guidance talk, and say nothing. Jerome, of course did not listen to me.
Shouldn’t these boomers with low rates they want to hang on to have paid off houses at this point? Just saying.
Has Joey B come out and chastised these Amandan’s (idiots) chanting death to America??
What ever happened to Gen X’rs? Why aren’t they profiled in this article? Millennials, Boomers and f the rest? Gen X’s making moves too, no?
They knew they didn’t have inflation on the run. They were too busy manufacturing a .1% drop below expectations by changing the metrics.