🏡 Homebuying blues

Plus: Wing's new drone | Friday, July 15, 2022

Open in app View in browser   Presented By Robin Powered   Axios What's Next By Alex Fitzpatrick, Jennifer A. Kingson and Joann Muller · Jul 15, 2022 Have you applied for a job recently that turned out to be less remote/hybrid-friendly than the listing made it sound? Tell us about it for a potential story: whatsnext@axios.com. Today's Smart Brevity count: 1,132 words ... 4 1/2 minutes.     1 big thing: It's getting even harder to buy Illustration: Sarah Grillo/Axios   Aspiring first-time homeowners are sailing into fierce macroeconomic headwinds as prices and mortgage rates rise, while higher rents make it harder to save for a down payment, Alex Fitzpatrick reports. Why it matters: Homeownership is a foundation for middle-class Americans to build long-term wealth. If people can't afford homes, that American dream becomes even less attainable. Plus, homes provide a sense of stability. Assuming you've got a fixed-rate mortgage, there's no equivalent of the landlord hiking your rent every year. (There are, however, plenty of unexpected costs — take it from me, a guy who just got a $2,000 bill to replace corroded pipes.) Three factors are keeping people stuck in the rent trap. Rising rents: Rents are up 0.8% over the last month, per the government's latest Consumer Price Index — "the largest monthly increase since April 1986." They're up a staggering 5.8% year-over-year, too. That's a problem for anybody trying to save up enough cash for a down payment — as is inflation more broadly. Rising rates: As the Federal Reserve raises interest rates to battle inflation, mortgage rates are rising in kind. This week's going rate for an average 30-year fixed rate mortgage is 5.5%, compared to around 3% at the end of last year. For a $350,000 loan, that's a difference of $1,987 in monthly payments vs. $1,476 — or $6,132 annually. Ouch. Rising prices: The average home went for $507,800 last quarter, per the U.S. Census Bureau. Compare that to the first quarter of 2020 — just before the COVID-19 pandemic — when the average home swapped hands for $383,000. Real estate data firm ATTOM recently found that "median-priced single-family homes and condos are less affordable in the second quarter of 2022 compared to historical averages in 97% of counties across the nation with enough data to analyze." And costs associated with homeownership — think maintenance and other stuff renters don't pay for directly — are at "the highest point since the second quarter of 2007," per ATTOM. Yes, but: At least one trend is pointing in homebuyers' favor: More listings are hitting the market, which could help suppress prices by increasing supply. "The national inventory of active listings increased by 18.7% over last year" in June, per Realtor.com. Still, that number was down 34.1% compared to June 2020, and 53.2% compared to June 2019. And fewer homes are being built, fueling a long-running housing shortage. The other side: From a purely financial point of view, homeownership isn't always all it's cracked up to be. "We all know people who bought a home and then regretted it," Axios' Felix Salmon wrote a while back. Our thought bubble: What a mess. My heart goes out to anyone trying to save up for a house right now. The big picture: People are still buying houses — nearly 700,000 new single-family homes were sold in May 2022 alone, seasonally adjusted. It's just harder and harder to get the keys. Share this story.     2. The feds are fed up The U.S. Capitol down East Capitol St. at sunset on Jan. 5, 2022. Photo: Drew Angerer/Getty Images   Employee satisfaction among U.S. federal workers fell over the last year, according to a new report, Axios' Cuneyt Dil writes. The annual analysis, produced by the Partnership for Public Service and the Boston Consulting Group, found federal worker satisfaction dropped 4.5 points to 64.5 out of 100 possible points. The details: NASA held the top spot for worker satisfaction among large agencies. The Department of Veterans Affairs was the most improved large agency, cracking into the top five. The National Endowment for the Humanities, which funds grants to museums, colleges and more, was the most improved small agency. The Department of Homeland Security has been dead last for 10 years running among 17 big agencies. Between the lines: A big sticking point is the future of remote work. Just like the private sector, Uncle Sam is competing for employees in a tight labor market. "We are undoubtedly working toward more workplace flexibility in order to be a competitive employer," Jason Miller, a top official in the Office of Management and Budget tells Axios. Read the rest.     3. Wing's new bird Photo courtesy Wing   Alphabet's drone delivery unit, Wing, released some fascinating prototype sketches yesterday that reveal its modular aircraft design philosophy, Alex reports. Why it matters: Wing is one of several outfits vying to make drone delivery a thing. What they're saying: "We've developed a core set of hardware and software components that can be used to create a variety of different vehicles tailored for specific use cases," Wing chief technology officer Adam Woodworth wrote in a blog post. "We can have tiny planes for pharmaceutical delivery, big planes for shipping fulfillment, long-range aircraft for logistic flights, and dedicated hovering platforms for delivery in cities." 💬 Our thought bubble: Drone delivery is still in its infancy — integrating autonomous aircraft into the complex national air system is really hard — but it feels closer to going mainstream almost every day.     A message from Robin Powered Roll-out strategies to boost employee engagement     Robin's step-by-step, actionable playbook helps hybrid work beginners better facilitate flexible work. What's in it for you: Learn to connect hybrid teams, increase engagement and leverage data. Plus, get free planning templates to create unique workplace strategies. Download the guide.     4. Solar power keeps Texas' A/Cs running A solar farm near Deport, Texas, on March 5, 2022. Photo: Cooper Neill for The Washington Post via Getty Images   Solar and wind power have been helping Texas avoid major rolling blackouts during this week's heat wave, Texas Monthly reports. Driving the news: As temperatures soar into triple digits, Texas' power grid operator ERCOT is begging residents to cut back on energy use. ERCOT is trying to avoid a repeat of last year's sweeping winter blackouts. What they're saying: "We've got twice the solar we had last summer, and something like three times what we had 18 months ago," energy consultant Doug Lewin told Texas Monthly. "The good thing about solar is it really does match A/C demand," added Andrew Dessler, director of the Texas Center for Climate Studies at Texas A&M. "Days that are really hot and sunny are the days you're making the most power from solar energy."  Yes, but: Wind power generation has been low this week — but "within state projections for a summer day," per the magazine. And while A/Cs keep people comfortable and healthy, they also contribute to the emissions crisis that's fueling climate change.     5. One fun thing: Happy plants 🪴 Illustration: Natalie Peeples/Axios   Our house plants don't just look nice — they make us happier and healthier, Axios' Anna Braz reports. Why it matters: Many of our jobs keep us indoors, and the pandemic magnified that problem. But it turns out being around nature is essential to our health. Interacting with plants can increase life satisfaction, reduce anxiety and stress, spark creativity, boost productivity and even mitigate symptoms of PTSD and dementia, studies have shown. What's happening: Plant sales soared during the pandemic as Americans coped with being stuck inside by bringing nature into their homes. Plant nurseries in the U.S. saw sales jump 10%-15% in 2020, per a Garden Center survey. And a whopping 89% of consumers owned at least two houseplants in 2021, according to a Floral Marketing Fund report. The bottom line: Consider buying a plant from a local nursery to brighten up your home — and reap the health benefits. Share this story.     A message from Robin Powered Tech that connects hybrid teams     Robin's step-by-step Hybrid Work 101 guide shares key ways to create a thriving hybrid workplace. It covers: The tech you need to better connect your teams. How to adjust your office for flexible work. Leveraging data to assess your strategies. Get the guide plus free planning templates.   A hearty thanks to What's Next copy editor Amy Stern. Was this email forwarded to you? Get your daily dose of What's Next magic by signing up here for our free newsletter. Are you a fan of this email format? It's called Smart Brevity®. Over 300 orgs use it — in a tool called Axios HQ — to drive productivity with clearer workplace communications.   Axios thanks our partners for supporting our newsletters. If you're interested in advertising, learn more here. 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