🏡 Homes getting expensive
Morning Download
Welcome to the Morning Download podcast, your go-to resource for personal finance, economics, and market insights. In just eight minutes a day, we provide valuable information to help you make better money decisions. Don't forget to sign up for our free newsletter at https://www.morningdownload.com/subscribe. Let's dive right in! In today's episode, we'll cover the market joy as companies reach new highs and Nvidia CEO gains wealth, US home sales and rental trends, the European Central Bank's annual loss, tax evasion by wealthy individuals, recalls by Toshiba and Toyota, lay-offs at Rivian, the S&P 500 hitting new highs driven by Nvidia and the pharma sector, the rise of crypto prices with Nvidia, issues around access to crypto in Nigeria, the impact of a bad credit score on loans and interest rates, and the scam in the internet age involving banks like Goldman.. Let's talk about the economy and some recent news. So, here's the deal - renting a home is getting cheaper, but owning a home is now more expensive than ever. In the US, sales of existing homes went up by 3.1% in January, which is great news. But wait a minute, there's a catch. Prices are on the rise again, so it's uncertain if this surge in buying will continue.
The median cost of a home has increased by 5.1% compared to last year, reaching a whopping $379,100. That's quite the jump! On the flip side, rents have actually dropped for the sixth consecutive month nationwide. In January alone, they fell by 0.3%. However, even with this decline, rents are still 18% higher than pre-pandemic levels.
Let's talk numbers. The national median rent for a two-bedroom apartment in January was $1,892, down 0.6%. Rent for a one-bedroom place remained steady at $1,591, while studios saw the biggest drop of 1%, with an average rent of $1,434.
Experts predict that prices will continue to fall this year, thanks to the increase in multi-family homes. They also believe that lower rates may push more renters into purchasing a home, reducing competition and demand.
Speaking of rents, they fell significantly in Memphis, Tennessee, Atlanta, Austin, Texas, and St. Louis, Missouri. On the other hand, prices increased in cities like Chicago, which saw a rise of 4.2% compared to a year ago.
Moving on to some global news, the European Central Bank recently posted its first annual loss in two decades. Additionally, the IRS chief has revealed that tax evasion by millionaires and billionaires amounts to over $150 billion per year. And did you know that raising children in China is considered one of the most expensive endeavors in the world?
Finally, in tech news, Toshiba has recalled over 15 million laptop adapters due to burn and fire risks. But that's not all - Toyota is recalling 280,000 vehicles because they may unexpectedly 'creep forward' even when in neutral.
In other news, Rivian, an automotive company, unfortunately, had to lay off 10% of its salaried workers due to some challenges they're facing. It's always unfortunate to hear about job cuts.