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AdvertisementUS home prices and rents have soared in part because of a shortage of housing. These are the cost of land, a shortage of construction workers, regulations, and NIMBYism. The US is suffering from a deep shortage of homes, and it's driving sky-high home prices and rents. Advertisement"We just hear more and more that it's harder to find affordable pieces of land to develop for housing," Tobin said. Fewer construction workers means less — and slower — residential construction and higher wages for workers, which in turn leads to higher home prices.
Persons: Jim Tobin, Tobin, , ANDREW CABALLERO, REYNOLDS, NIMBY, Donald Trump Organizations: National Association of Home Builders, Trump Locations: Los Angeles, Seattle, Chicago, Brambleton , Virginia
AdvertisementHigh housing costs, driven in large part by a shortage of homes, are keeping inflation sticky. Economists say Trump's proposals are a mixed bag; some could help housing costs and some could hurt. Ultimately, housing policy experts and industry leaders say housing costs will largely depend on how much new supply can be delivered to the market, which is suffering from a severe shortage of homes. Federal housing assistanceDuring his first term, Trump repeatedly proposed major cuts to housing assistance for households with low incomes or members with disabilities. This would make it harder for lower-income Americans to afford homes and slow down affordable housing construction.
Persons: Trump, Donald Trump, Karoline Leavitt, Vance, Jim Tobin, Tobin, Maurice Page, JD Vance, they're, Anirban Basu, Biden, Ben Metcalf, Metcalf Organizations: Federal Reserve, Trump, National Association of Home Builders, Biden, Administration, Nevada Housing Coalition, Business, Energy, Associated Builders and Contractors, Economic, of New, Reserve, UC Berkeley, Immigrants, Republican Locations: Nevada , Arizona, Utah, of New York, China
Homebuilders and economists have said a deeper labor shortage could cause housing costs to spike. The issue is the construction labor force, whose 500,000-worker shortage is already making conditions more challenging. Related Video Musk visits border, calls for Trump-style wallForeign-born workers make up about a quarter of the construction workforce. They argue that the surge in home costs is largely a result of the nationwide housing shortage, and immigrants are a key part of building housing. AdvertisementDuring the pandemic, many older, experienced workers retired, and the pipeline of younger US-born workers isn't sufficient, homebuilders say.
Persons: Homebuilding execs, Donald Trump's, , Eric Finnigan, John Burns, Ben Metcalf, Jim Tobin, JD Vance, Trump, Vance, Barack Obama, Obama, Joe Biden, Tom Homan, Chad Blocker, Homebuilders, Dennis Webb Organizations: Service, Trump, University of California, National Association of Home Builders, Immigration, Biden Locations: Berkeley, Los Angeles, Phoenix
Private jet usage is way up for 2 reasons
  + stars: | 2024-11-10 | by ( Eliza Relman | ) www.businessinsider.com   time to read: +3 min
Private jet travel has surged in recent years, and two big changes explain why. Meanwhile, more affordable options for on-demand private jets multiplied. Two big factors led to that spike in private flights: The pandemic and a spate of more affordable options for flying private. But soon, private jet travel surged even as commercial flying remained depressed. Meanwhile, fractional ownership of private planes, fly-share services, subscriptions to private jet companies, and other on-demand private flying options have also grown much more popular and made private flying more accessible and affordable.
Persons: , That's Organizations: Service, NGO Transport, Environment Locations: Nature, New York City, Miami
Many of the efforts were focused on allocating more funds for affordable housing. They voted for a slew of measures, most of which will create additional funding for affordable housing. Affordable housing bonds in Rhode Island, North Carolina, and BaltimoreSeveral cities and states along the East Coast voted on Tuesday to fund affordable housing bonds. Proponents of stricter rent control say preventing landlords from price gauging is key to protecting the most vulnerable tenants. Freemark argued that it's unclear what the mixed results on rent control mean for the pro-housing movement.
Persons: , Donald Trump's, Yonah, Karen Bass, Angelenos, Charlotte, Hill, Anselmo —, Freemark, I'm Organizations: Service, Trump, Republican Party, Urban Institute, LA, East Coast, Orlando In, Denver Locations: Angeles, Los Angeles County, LA, Rhode Island , North Carolina, Baltimore, Rhode Island, homebuyers, North Carolina, Asheville, New Orleans, Orlando, Orlando In New Orleans, Orlando , Florida, Denver, California, Hoboken , New Jersey
AdvertisementHousing costs and the homeless population have soared in the Western Montana city of Missoula this year. Between 2021 and 2023, the city's two main shelters saw a 53% increase in the number of nights of shelter provided to Missoulans experiencing homelessness. Advocates for those experiencing homelessness say there's much more work to be done. Local lawmakers say the city needs more state and federal funds to aid those experiencing homelessness. Building more housing is key to solving homelessnessAffordability is at the root of homelessness in Missoula and across the US.
Persons: , Jill Bonny, they're, Bonny, It's, Eliza Relman, Bob Campbell, Campbell, who's Organizations: Service, Poverello Center, Sun, Poverello, New Hope Ministries, Business, Marine Corps Locations: Missoula, Western Montana, Montana, It's
Reno Mayor Hillary Schieve says city leaders should cut regulations that stymie construction. AdvertisementThe mayor of Reno, Nevada, argues that the single best thing city leaders can do to help solve one of the country's worst housing shortages is to loosen regulations on housing construction. As mayor, Schieve has celebrated the new jobs and the growth of arts and culture in Reno and its surroundings. Under Schieve, Reno has loosened some of its regulations by allowing for more density, reducing parking requirements, and cutting fees. Schieve, the former chairwoman of the US Conference of Mayors, said Reno's rules regarding affordable housing construction are relatively lenient.
Persons: Hillary Schieve, , There's, Schieve, Alex Horowitz, Tesla, she's, Joe Biden, Biden, Adrianne Todman, Donald Trump's, We've, we've, Vance, That's, Trump, Kamala Harris Organizations: Reno, Service, Apple, US, of Mayors, White Locations: Nevada, Reno , Nevada, Reno, Las Vegas
Both presidential campaigns have discussed ideas for cutting housing costs. Economists say lowering labor and building material costs is far more important to home building. Housing policy experts and economists disagree, saying lower energy costs would not significantly boost construction or make homes cheaper. Notably, under the Biden administration, the US has produced and exported more crude oil than ever before in the country's history, even as housing costs have soared. AdvertisementLabor costs and cutting red tape are also keyLabor costs are generally growing as a portion of overall construction costs, Basu said.
Persons: JD Vance, Trump, , Donald Trump, Sen, Vance didn't, I'm, Anirban Basu, they're, Basu, Biden, Andrew Justus, Justus, might've, Vance, Nolan Gray, they'll, hasn't, Kamala Harris Organizations: Service, Biden, Associated Builders and Contractors, Trump, Niskanen, Labor Locations: Nevada, California
Among Muslims, the difference was 43% agreeing with the statement versus an estimated 66% who privately agreed. While 27% of Democratic respondents publicly agreed with the statement "I support defunding the police," just 3% privately supported the movement. While 50% of Republicans publicly said "we live in a mostly fair society," just 11% privately agreed. Similarly, 2% of Republicans were thought to privately trust the government to tell the truth, while 14% said so publicly. A lack of social trust causes people to resent each other, look for scapegoats, and become susceptible to demagoguery, he said.
Persons: Alessia Gonzalez doesn't, Gonzalez, Israel, she'd, Fernando, YouGov, , James Gibson, Louis who's, Gibson, Kamala Harris, Donald Trump, Todd Rose, Rose, Elisabeth Noelle, Neumann, Noelle, what's, Harris, You've, Gen Zers Organizations: Republican, Washington University, Harvard's Graduate School of Education, Roman Catholic, Pew, Gallup, Republicans, Democratic, Trump, Locations: Brooklyn, Bay, MAGA, Gaza, Colombia, New York, Israel, America, St
AOC is behind a new bill to create a federal social housing developer. Unlike traditional American public housing, which is usually reserved for low-income families, social housing is intended to be mixed-income. But some pro-housing policy experts — who subscribe to the YIMBY, or Yes in My Backyard, movement — are skeptical that a federal social housing authority makes sense. Related storiesGallagher, a Democrat who represents gentrifying neighborhoods in North Brooklyn, was struck by the stability created by social housing in Vienna. Congress would likely not support a federal social housing authority until there is evidence of its success at the state level.
Persons: , Kamala Harris, Alexandria Ocasio, Cortez, Sen, Tina Smith, Minnesota —, Emily Gallagher, Gallagher, Hillary Schieve, Jenny Schuetz, Shane Phillips, Schuetz, Tricky Organizations: Democratic, Service, — Rep, New, Democrat, Yorkers, Brookings Institution, Lewis Center for Regional Policy, Homes, US Department of Housing, Urban Locations: Washington, Alexandria, Minnesota, Austria, New York, North Brooklyn, Vienna, Rhode, Atlanta, California, Montgomery County , Maryland, Reno , Nevada
Two swing states — Arizona and Pennsylvania — exemplify in their own ways how housing markets across the country have failed to address the key issue they face: too few homes. Sprawling subdivisions helped accommodate the growing population and were enough to keep housing costs relatively low through the early 2010s. As demand spiked, snarled supply chains helped inflate construction costs. Home prices have risen 39% since January 2020, Horowitz noted, even though the state's population is shrinking. Like many other states, Pennsylvania has underbuilt housing since the 2008 financial crisis, which tanked the housing market.
Persons: , Alex Horowitz, it's, Horowitz, Mario Tama, we've, Ben Metcalf, Metcalf, Josh Shapiro, Shapiro, Tucson Mayor Regina Romero, Kamala Harris, Donald Trump, He's, Harris, Redfin, Noah Sheidlower Organizations: Service, Pew's, Business, Getty Images, Terner Center, Housing Innovation, UC Berkeley, of Labor Statistics, Pennsylvania, Tucson Mayor, Federal Reserve Locations: Michigan, Wisconsin , Pennsylvania, Arizona, Georgia, North Carolina, Nevada, Zillow, Pennsylvania, Phoenix, . Pennsylvania
It's been a year since New York City began enforcing its near-ban on short-term rentals, including Airbnbs. While the number of short-term rentals has plummeted, the effect on the housing market is unclear. AdvertisementNew York City's ban on most short-term rentals was supposed to make housing cheaper in the city. In September 2023, NYC began enforcing new regulations — known as Local Law 18 or LL18 — that severely restricted short-term rentals. With so many Airbnbs out of the short-term rental picture, they've been able to charge more.
Persons: It's, Airbnb, , it's, Ben Kallos, LL18, they've, Sean Hennessey, Jonathan M, that's, they're, Paul, who's, Paul —, Theo Yedinsky, Yedinsky, Eric Adams Organizations: New, Service, New York Times, New York, Tisch Center of Hospitality, Facebook, Business, York City Locations: New York City, York, New, Astoria, Queens, San Diego, Mission Beach
The Dog Bar — a sprawling dog venue in Saint Petersburg, Florida —has had at least six (human) proposals, and one wedding. AdvertisementVirtually all US pet owners now say their furry companions are part of their family — up from 86% of dog owners and 78% of cat owners in 2006. "The dog today is not the dog of 10 years ago," Bobby Boivin, the co-owner of Boo's Dog Bar in Sarasota, Florida, said. And so we do that once or twice a year at Dog Bar." After adopting two puppies, he fell in love with a dog bar in his neighborhood.
Persons: , Saint Petersburg , Florida —, It's, Kendal Kulp, Bobby Boivin, Stephanie Marble, Marble, Kyle Cissel, aren't, Cissel, Tara Downs, she's, Fred Metzler, Metzler, Luke Silverman, Stephanie Chez, Silverman, Kevin Knutson, Knutson, Kulp, they'd, That's, that's Organizations: Service, National Association of Realtors, Wall Street, American Pet Products Association, IKEA Locations: Saint Petersburg , Florida, Asheville , North Carolina, Sarasota , Florida, Florida, Santa, Washington, DC, Colorado, St . Petersburg , Florida, Sephora, Minnesota, Wagbar
The dockworkers' strike threatens supply chains, while Hurricane Helene caused costly damage. Devastation from Hurricane Helene, a dockworkers' strike, and escalating conflict in the Middle East all threaten to scramble supply chains and inflate prices. How much the strike impacts prices depends on how much of a cushion companies have built to deal with any bottlenecks. Bottlenecks also encourage carriers to raise their prices, increasing retail and consumer goods prices, Kent said. The hurricane has also disrupted some supply chains, including healthcare supplies and high-purity quartz needed for semiconductor manufacturing.
Persons: Helene, , Israel ramped, Douglas Kent, Dockworkers, dockworkers, Morgan Stanley, Kent, Fazili, Lauren Saidel, Baker, she's, Biden, Hurricane Helene, Adam Kamins Organizations: Service, Association for Supply Chain Management, JPMorgan, National Economic, Biden, ITR, International Longshoremen's Association —, United States Maritime Alliance, Homeowners Locations: Israel, Iran, Hurricane, Lebanon, Maine, Texas, East Coast, Gulf, Kent, West Coast, North Carolina, Florida
Invitation Homes is poised to pay over $48 million in a settlement with the FTC. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Go to newsletter preferences Thanks for signing up! download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementThe country's largest single-family home rental company is poised to pay more than $48 million as part of a proposed settlement with the Federal Trade Commission over allegations that it deceived and overcharged consumers.
Persons: Organizations: FTC, Service, Federal Trade Commission, Invitation, Business Locations: California
Half of US renters spend over 30% of their income on housing, Census data shows. Skyrocketing home prices and rents, driven by supply shortages and high interest rates, are to blame. African-American and Hispanic renters are the most cost-burdened, with over half exceeding the 30% rule. But as home prices and rents have skyrocketed in recent years, that so-called 30% rule is increasingly challenging to follow. And for a whopping half of US renters, it's become impossible.
Persons: , it's Organizations: Service, US, Bureau, Survey, Business
Childcare is often top of mind for parents — and it might also be a deciding factor at the ballot box. Many parents just don't have the luxury of relying on family to provide childcare, Drew said, and they shouldn't have to. Schell said that grandparents have actually stepped in to help provide childcare for some parents, especially during the pandemic. Bock said that it would be helpful to find a way to pay grandparents for childcare responsibilities. AdvertisementBut without that extra support, handing childcare over to grandparents isn't feasible.
Persons: , Ohio Sen, JD Vance, Donald Trump's, Charlie Kirk, Vance, Kirk, he's, Taylor Van Kirk, Debbie Drew, wasn't, Drew, Wendi Schell, Schell, Renee Bock, Bock, " Bock, Elliot Haspel, It's, it's Organizations: Service, Business, Teachers, Republicans, New York Department of Education, Social Security, Capita Locations: Portage , Wisconsin, Bronx
The HOMES Act would establish a new federal housing development authority charged with building and rehabilitating more than a million permanently affordable homes. This so-called "social housing" is notably different from traditional public housing, which is entirely reserved for the poorest households. Rent for all tenants in social housing would be capped at 25% of their income. "There is another way: social housing," Ocasio-Cortez and Smith said in their op-ed. And in California, lawmakers introduced a bill to construct mixed-income social housing on government-owned land.
Persons: , Alexandria Ocasio, Sen, Tina Smith, Cortez, Gianpaolo Baiocchi, Smith, Baiocchi, Emily Gallagher's, Kamala Harris, she's, Donald Trump, Smith —, Harris, Walz Organizations: Service, New, New York Democrat, Minnesota Democrat, Senate, Business, Urban Democracy Lab, New York Times, New York Locations: Alexandria, Cortez, New York, Minnesota, New, California, Vienna
Resident-centered urban cores have lots of housing, public amenities like schools and parks, and local restaurants, shops, and other businesses. AdvertisementThe nation's capital offers a stark example of a downtown designed largely to serve office workers and tourists. The unsexy way to get people downtownBefore cities focus on bringing in visitors, they need to serve their residents, Wesolowski argued. Parks along urban rivers, lakes, canals, and ocean beaches can attract new residents, visitors, and commercial development while serving as a buffer for flooding. "It has a really quite an extraordinary balance of tourist facilities, local universities, medical complexes, residents living downtown, a baseball team downtown, a waterfront — it sort of does everything right," she said.
Persons: , Jon Jon Wesolowski, Wesolowski, Tracy Hadden Loh, Karen Chapple, Loh, Chapple Organizations: Service, Business, Visitors, Eiffel, Chicago, Brookings Institution, of Cities, University of Toronto Locations: Washington, Chattanooga , Tennessee, Paris, Chicago, Wicker, Parks, Diego's
Many said he failed to acknowledge the real reason many grandparents don't help with childcare more: They can't afford to. Many American families are stuck between a retirement crisis and a childcare crisis, with young parents unable to help their own parents — and vice versa. The childcare crisis meets the retirement crisisSandra, 51, has been dealing with both childcare and eldercare challenges over the past year. "And that would help parents who want to stay home and care for kids; it would also help grandparents who want to help care for kids while their parents are working." AdvertisementRachidi also said that revisiting the usefulness of regulations around informal care — settings like friend and family care — should be on the table, too.
Persons: Linda C, Donald Trump, Joe Biden, Sen, JD Vance, Linda, I'd, Vance, Trump, she's, , Taylor Van Kirk, Van Kirk, Sandra, grandpa, Elliot Haspel, Haspel, Kamala Harris, Jennifer Baker, they'd, that's, Baker, who's, Angela Rachidi, Rowe, Rachidi, Connie Adler, Adler, Vance's Organizations: Service, Democratic, Business, AARP, Capita, American Enterprise Institute, asheffey Locations: California, Sweden, Arizona
In Japan, for example, most people are actually quite satisfied with housing costs. In recent years, rising rents and home prices driven by a severe housing shortage — coupled with elevated mortgage rates — have caused Americans' housing costs to soar to near-record levels of unaffordability. Some experts have pointed to Japan, where housing costs are lower than peer countries, as a potential model for solutions the US could adopt. While Japan's abundance of housing isn't entirely a positive story, when it comes to Tokyo, housing experts say there are many lessons the US could learn from its ally. AdvertisementWhile a population slowdown could help moderate housing costs, some experts believe a substantial population decline would have big economic consequences in the long run.
Persons: , aren't Organizations: Service, Business, Housing, Gallup Locations: Japan, Israel, Turkey, Slovenia, Portugal, United States, Tokyo
So, they tend to use federal funding to reward housing policies they like. One example of the kind of bold federal law that some point to as a model has nothing to do with housing. In a recent op-ed in the New York Times, Harvard economist Edward Glaeser argued that the next administration should implement a housing construction law that follows the model of the Drinking Age Act. Metcalf, who also pointed to the drinking age law as a model for a housing mandate, conceded that the politics of it would be tricky. "The key question would be whether Congress has overstepped the blurry line between inducement and coercion," Hemel told Business Insider.
Persons: , Ronald Reagan, Edward Glaeser, Glaeser, Ben Metcalf, Kamala Harris's, Metcalf, Daniel Hemel Organizations: Service, Business, Republican, New York Times, Harvard, Terner Center, Housing Innovation, UC Berkeley, Democratic, New York University, Hemel Locations: Washington
Read previewAs part of her housing policy agenda, Democratic presidential nominee Kamala Harris has promised to "cut red tape and needless bureaucracy" to build millions of additional homes and bring down costs. Zurich, Switzerland offers the latest model. AdvertisementApartment buildings behind farm houses in Affoltern, just outside Zurich, Switzerland. One of the study's key findings is, "if you upzone, upzone a lot," said Simon Büchler, coauthor of the study and an assistant professor of finance at Miami University. A whopping 64% of Swiss residents live in apartments, compared to just 28% of US residents, and the country also has an especially comprehensive and well-connected public transportation network.
Persons: , Kamala Harris, Michael Buholzer, Simon Büchler, upzoning, Büchler, Christian Hartmann, Matthew Maltman, who's, There's, Maltman Organizations: Service, Democratic, Business, Miami University, Reuters Locations: Zurich, Switzerland, Swiss, Canton of Zurich, Affoltern, New Zealand, Küsnacht, Lake Zurich, Canada, Europe, Australian
JD Vance's plan to tackle high childcare costs may not take into account the looming retirement crisis facing millions of older Americans. When Kirk asked how Vance planned to address the issue, Vance suggested extended family members step in to relieve the financial burden on parents. AdvertisementNot many states require childcare workers to have college degrees or certifications. But he may have been referring to a new law in the nation's capital that requires many childcare workers to have a two-year associate degree, among other training. Vance has condemned universal childcare, calling it a subsidy for the affluent and a "class war against normal people."
Persons: JD Vance's, Vance, Donald Trump's, Charlie Kirk, , Kirk, didn't, who's, that's, Linda, Katie Britt, Alabama, Mike Lee of, Laurie Furstenfeld Organizations: Service, Bank of America, Survey, Social Security, Business, Republicans, Congress, Child Care Law, asheffey Locations: California, Florida, Mike Lee of Utah, Berkeley , California
State and local governments often lease or sell land to builders, including affordable housing developers, particularly in areas with high demand for homes. In a rare overlap of goals between the two campaigns, Harris and Trump have both proposed building housing on federal land. Some Republican lawmakers agree that more federal land should be used for homes. The Biden administration has proposed selling hundreds of acres of land in Nevada controlled by the Bureau of Land Management to local governments to build thousands of new homes. But repurposing federal land for new residential communities in Nevada would likely mean more sprawl, which comes with both environmental and economic concerns.
Persons: , Donald Trump, Kamala Harris, Harris, Trump, Matthew Murphy, doesn't, George McCarthy, McCarthy, MidPen, It's, Abby Goldware Potluri, Harris couldn't, Republican Sen, Mike Lee of, He's, Biden, Maurice Page, Page Organizations: Service, Democratic, Republican, Biden, Business, NYU's Furman Center, Lincoln Institute of Land Policy's, Geospatial Solutions, Lincoln Institute of Land, Center for Geospatial Solutions, Privately, Center, Trump, of Land Management, US Postal Service, Republican Party, General Services Administration, DC, Bureau, Land Management, Las Vegas, Nevada Housing Coalition Locations: State, Nevada, Utah, Massachusetts, Florida, . Massachusetts, San Mateo County, San Francisco, MidPen, Saudi, Mike Lee of Utah, Fort Lauderdale, Las
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