Discussing construction employment, a positive economic report from the Chicago Fed, why more housing supply is critical, why you may not need a bigger home, some simple home buying tips, taking a child’s advice when buying a home and more!
Thirty-eight states and the District of Columbia added construction jobs between April 2017 and April 2018, while 29 states added construction jobs between March and April, according to an analysis by the Associated General Contractors of America of Labor Department data released today. Association officials said the employment growth likely would have been higher if firms could find more qualified workers to hire.
AGC chief economist Ken Simonson said:
Firms in many parts of the country are working to keep pace with growing demand for construction services. Many of those firms are having a hard time finding and hiring enough qualified workers as the pool of available workers remains very tight.
Good news about the growth but bad news about the problems finding qualified workers.
Chicago Fed Says Little Change in Economic Growth
From Chicago Fed:
The Chicago Fed National Activity Index (CFNAI) ticked up to +0.34 in April from +0.32 in March. Two of the four broad categories of indicators that make up the index increased from March, and three of the four categories made positive contributions to the index in April. The index’s three-month moving average, CFNAI-MA3, increased to +0.46 in April from +0.23 in March.
The Chicago Fed National Activity Index (CFNAI) is a weighted average of 85 indicators of growth in national economic activity drawn from four broad categories of data: 1) production and income; 2) employment, unemployment, and hours; 3) personal consumption and housing; and 4) sales, orders, and inventories.
A zero value for the monthly index has been associated with the national economy expanding at its historical trend (average) rate of growth; negative values with below-average growth (in standard deviation units); and positive values with above-average growth.
So while there was not much of an increase, we are still in positive territory!
Who Is The Freeloader?
Who is the freeloader: the working poor on food stamps — or corporations that don’t pay them enough? Sen. Sherrod Brown has a plan to tax corporations that don’t pay their workers enough.
Republicans in Congress just failed to pass a bill that would impose harsher work requirements for federal food stamps as part of the so-called farm bill, but there’s no sign they’re giving up on the idea anytime soon. Their argument is that, particularly with the Great Recession behind us, poorer Americans could and should be doing more to get into the workforce and off federal assistance.
Brown thinks the latter is the real problem, and wants to charge corporations a “freeloader” fee if their employees depend on government aid like food stamps.
His proposal implies that a big overarching problem in America isn’t that poor people aren’t working hard enough; it’s that their wages aren’t high enough, their jobs and hours can be unpredictable, and their employers don’t provide robust enough benefits for them to live without support.
Brown’s plan has little chance of becoming law but it does bring up a very touchy subject…
Are people on food stamps to blame for needing assistance? While Brown’s reasons to tax corporations may be true sometimes, some people on food stamps could be taking advantage of government assistance.
My take is that IF someone is abusing any type of government assistance, then hit them with a lifetime ban for government assistance and a monetary penalty that is much greater than the amount that was fraudulently obtained. But do not hurt those that need the government’s help…
More Supply Is Crucial
An increase in housing supply is crucial to the health and sustainability of the real estate market and the economy, according to speakers at a session organized by the REALTOR® University Richard J. Rosenthal Center for Real Estate Studies during the 2018 REALTORS® Legislative Meetings & Trade Expo.
The session, “Outlook for Home Prices and Residential Construction,” focused on rapidly rising home prices, tight home inventories and whether or not the country is in the middle of a bubble. All three of the panelists agreed that more new home construction is necessary to meet rising demand from increasing household formation and curtail the affordability crisis.
All of the speakers said we are not currently in a bubble but that doesn’t mean we won’t enter one. It is mainly about the imbalance between supply and demand and whether or not this causes home prices to grow too fast according to NAR chief economist Lawrence Yun.
Len Kiefer, deputy chief economist for Freddie Mac said we are not currently in a bubble and this market is much different than the market before the Great Recession. AGC chief economist Ken Simonson also spoke and just as he pointed out in the report above, he mentioned the problem of finding qualified workers.
It sounds like this was a very interesting discussion but sadly I have not found a video of it. I know that might sound boring to some but I do love hearing intelligent discussions about housing and the economy.
Do You Really Need a Big Home?
From Get Rich Slowly:
We’ve been led to believe that bigger homes are better. But is that true? Studies have shown that most of the space in a big American home is wasted. It’s never used. And big homes cost a lot more to buy and maintain. Let’s take a closer look…
To many of us, a large home is a mark of success. A big house indicate status, and the more space we’re able to call our own, the more successful we look and feel.
The findings were overwhelming: The majority of the space in our homes is wasted.
This is an excellent article and a must read for anyone thinking about buying a home! A house is built with wood and nails but a home is built with love…
If buying a house makes sense for you, do not let your ego trick you into buying more than you need or can afford. You may hear someone say that a bigger or more expensive home is only $50 or $100 dollars more a month on your mortgage payment…
But your max budget is your max budget. Do not let yourself or anyone else convince you to spend more than you should.
Simple Tips to Help You Buy a Home
Kids Say the Darndest Things… When Buying a Home
When it comes to purchasing a new home, 55 percent of U.S. homeowners with a child under the age of 18 at the time of home purchase say the opinion of their child was a factor in their home buying decision. This is according to a new Harris Poll survey commissioned by SunTrust Mortgage.
For millennial parents between the ages of 18 and 36, the influence of children is even higher at 74 percent. Among renters with children under the age of 18, youngsters may play an even greater role in future home purchases. According to the survey, 83 percent of these renters said the opinion of their children will be a factor in which home to buy.
Interesting stuff and the 2 most important features to children are having their own bedrooms and a large backyards. I would say these are very legitimate requests and should help with a home’s value and your level of enjoyment.
Well that is all for today! Please hit those share buttons if you enjoyed this article and as always, if you have any questions about buying or selling real estate in the Anderson SC area, please Contact Me!