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Posts Tagged ‘wages’

Job Growth Keeps Pace with Population Growth

July 5th, 2013 Comments off

While the unemployment rate remained at 7.6 percent, job growth in June hit 195,000, 40,000 more than economists expected and equal to the revised rate for May, 2013. While construction and manufacturing changed little, the biggest gains were in leisure and hospitality (up 75,000), professional and business services (up 53,000) and retail (up 37,000). While noting that three-fourths of the new jobs would qualify as low-quality work, J. J. Kinahan, of TD Ameritrade, says wages grew faster in June than the 12-month average. Economists say this level of job growth just keeps pace with the population level, and pales compared to the 250,000 jobs created monthly during the 1990’s, according to CNNMoney. As MHProNews understands, job growth is key to a healthy housing market.

(Photo credit: ebay)

Builders Stretching to Find Workers

March 29th, 2013 Comments off

According to a members survey by the National Association of Home Builders (NAHB), since June 2012 labor shortages in all aspects of the home-building trade are driving prices up, and nearly half say they have been delayed in finishing projects on time. 1.4 million housing jobs left the industry during the recession and most have not returned. A shortage of buildable lots and rising cost of materials is also hampering the regeneration of the market. 3,000 jobs are generated by the construction of 1,000 homes which generates $145.4 million in wages and $89 million in tax revenues for government. The property then generates revenues for schools, police and fire departments, and other governmental services. NAHB says two million housing starts were delayed by the Great Recession, and expects 917,000 total housing starts this year, and as MHProNews has learned, 1.18 million in 2014.

(Photo credit: BloombergBusinessWeek–multifamily construction)

Turned down by a Bank? Try Craiglist

November 8th, 2012 Comments off

NNMoney reports the latest twist on Craigslist is people looking for co-signers on loans because they do not have good enough credit on their own. A would be borrower in Ohio is offering a tractor and a car as collateral for someone to co-sign a $5,000 personal loan. A student in New Jersey who offered $2,000 to anyone who will loan him $8,000 received numerous responses from scammers, and even paid a matchmaking service to hook him up with someone who would help, but to no avail. While borrowers can easily lose their payment and/or their credit identity, the risk is greater for the lender who may lose their identity, their money, and if the lender defaults, may be on the hook for collection fees, garnishment of wages, and a black mark on their own credit score. John Ulzheimer of SmartCredit says, “You’re co-signing for someone a bank has already identified as someone who doesn’t deserve the loan.” As MHProNews has learned, according to the Federal Trade Commission (FTC), three out of four co-signers are asked to repay loans that have defaulted. A signed agreement between the borrower and lender disavowing the responsibility of the lender will not deter the bank from going after the co-signer.

(Image credit: TotalMortgage)

Modular Booms in Bakken

October 22nd, 2012 Comments off

The billingsgazette reports because housing is so scarce and wages are so great in the Bakken Oilfield in western North Dakota, the running joke is the oilfield holds the record for homeless people with $100,000 incomes. A housing summit last spring determined the need for 5,000 housing units for the area over the next two years. Demand has spawned another housing supplier, Canadian-American Structured Solutions, Inc (CASS), which opened its doors just a few months ago in Billings, Montana. The company ships modular four-plexes and duplexes to Canada and the U.S., especially to the Bakken for worker housing. Says CASS CFO Larry Nelson: “I would say the fallout from the Williston (ND) area is 25 percent of our business.” What concerns the workers most is not the amenities, but whether the inside stays warm, and the pipes do not freeze, MHProNews has learned. Jeff Lee of American Homes sells a super insulated 560 square foot modular hunter’s cabin with homelike features, some of which go to the oilfields.

(Photo credit: Casey Page/billingsgazette–Kari Andren and Mary Pipal inspect a man camp from Signature Cabins.)

Domestic Mfg: Rearing it’s Lovely Head?

June 28th, 2012 Comments off

In a New York Times article by John Markoff about Google’s “American Made” production of its wireless home media player, Harold L. Sirkin of Boston Consulting Group said in April one third of American companies with revenue over one billion are planning/considering returning their manufacturing operations to the U.S. The increased cost of labor, energy, and transportation in China coupled with the risk of intellectual property theft—not to mention a drive to work for engineers as opposed to flying 16 hours—can make production at home more attractive. Finding component suppliers nearby is the biggest challenge. Sirkin says, “At 58 cents an hour, bringing manufacturing back was impossible, but at $3 to $6 an hour, where wages are today in coastal China, all of a sudden the equation changes.” He adds the return of manufacturing could bring two to three million jobs to the nation. As MHProNews has learned, job growth is key to revitalizing the housing market.

(Photo credit: ebay)

Housing Recovery?

May 24th, 2012 Comments off

NationalMortgageNews says there were 2.4 million homes for sale at the end of the first quarter, 20 percent fewer than a year ago, which has helped stabilize prices for now. However, the 2.2 million homes in the process of foreclosure, and another 1.7 million homes where the owners are three or more payments behind may drive home prices down even further. To stem that tide, banks are focusing on reducing foreclosures, either through short sales or loan modification. The 23 % of all homeowners who have underwater loans is making it difficult for them to sell their homes and buy one they can more readily afford, further reducing the demand. MHProNews.com notes tight credit is also a barrier to home sales, and with wages having stagnated for years, and unemployment at eight percent and not anticipated to fall until next year, a full housing recovery remains on the horizon.

(Photo credit: Wikipedia Commons)

Build Housing Families Can Afford

February 17th, 2012 Comments off

In an op-ed piece in Statesman of Austin, Texas, Ed Wendler, Jr. says the most important issue in the upcoming city council elections should be affordable family housing. As a developer in a city where rents increased 7.2 percent last year and are expected to continue rising the next three years, he tells MHProNews.com wages are not rising, and housing takes 30 percent of a family’s income. If the trend continues, families will have to sacrifice health care, food, clothing, insurance, and transportation. Wendler says the focus on an upcoming federally subsidized “sustainable” project in Austin will no doubt be on solar energy, rainwater harvesting, recycled water, and other features that raise rent. He says, “Let’s see how affordably we can build housing that is family- and kid-friendly, energy-efficient, practical, durable, and constructed and financed without public subsidy. The bottom line: High rents prevent families from getting ahead.

(Photo credit: propertymodern)