Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
The European Union will respond in kind if the U.S. imposes tariffs on France over digital tax plan, EU chief Donald Tusk told G-7.Technologyread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
The final week of August could be highly volatile as markets fret over the economy and the latest developments in trade wars.Market Insiderread more
Federal Reserve Vice Chair Richard Clarida said Friday that the global economy has deteriorated in the past month.Marketsread more
The latest escalation in the trade war ups the odds the economy will fall into recession and that the Fed will aggressively cut rates.Market Insiderread more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
"We don't need China and, frankly, would be far better off without them," Trump tweeted.Politicsread more
Recent trade friction between the two Asian powerhouses has morphed into a dispute with political implications that go far beyond the region.Asia Politicsread more
"My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?" Trump wrote amid a series of tweets that rattled markets Friday.Politicsread more
"I would love this to be clarified. We come to a deal on trade, boy, this market is up 10 to 15%, but without it's going to be worrisome," Jeremy Siegel says.Marketsread more
Barely a decade after the worst housing crash in history, home prices are soaring, and fewer buyers are able to afford the homes they want. In fact, a growing number of Americans, including tech workers who are paid relatively well, are unable to live in the same communities where they work.
Teachers, first responders, restaurant workers and, surprisingly, computer programmers have the hardest time affording a home near their jobs. This is according to a new study by Trulia, a real estate listing company.
Researchers there used the latest median wage data for each occupation group from the Labor Department's employment report, and then calculated the share of homes for sale in each market that are affordable to each category of worker. They define affordability as one's monthly payment on housing taking up no more than 31 percent of one's paycheck. They included homeowners' association fees on the property, property tax and insurance into the affordability.
In tech-heavy California, where workers in the sector make six-figure salaries, very few can afford to buy a home. In San Francisco, programmers can afford just 5 percent of the homes for sale, and in San Jose barely 12 percent, according to Trulia. These workers earned a median wage of $122,993 in San Francisco and $115,660 in San Jose, but median home prices in both cities are well over a million dollars.
But it's not just in California, where home prices are highest. Barely half of programmers in Chicago; Charleston, South Carolina; Minneapolis; and Newark, New Jersey, can afford to buy the median-priced home. The numbers are even lower in Portland, Oregon, and Miami.
James Heller works in health-care technology and has lived in Burbank, California, all of his life. Recently divorced, he had to sell his old home but found he could not afford to buy something else in the same area. He ended up moving about a half-hour outside of Burbank to Valencia.
"I've lived in Burbank all my life, and I love it, but housing has gone through the roof there," Heller said. "The basic thing was the amount of money in my budget, and I wasn't going to spend 12 percent more for 25 percent less space."
Heller doesn't actually mind his new hometown, but he is now a half-hour away from his daughter and his mother, who both still live in Burbank.
"It has separated me from my hometown. I would prefer to live in Burbank," Heller said.
The situation is more dire for teachers and first responders, who make lower salaries and have seen very little wage growth.
"Teachers are worse off in nearly all metros covered in this study," noted Cheryl Young, Trulia's senior economist. "More than one-quarter of the 93 metros saw a double-digit decrease in the share of homes affordable to teachers, led by Tacoma, WA (-24.4 percentage points), Colorado Springs, CO (-21.7 p.p.) and Indianapolis, IN (-17.3 p.p.). "
While all real estate is local, the same phenomenon is occurring in almost all major metropolitan markets. Demand is high and supply is low, especially at the lower end of the housing scale. Prices have been rising for years, but after a pullback in the gains last year, they are accelerating again. Rising mortgage rates only make matters worse.
"School teachers, police and fireman and so many hard-working folks all have to move much farther out of the midtown areas just to get a home they can afford," said David Fogg, a real estate agent in Burbank. "Many people commute one to two hours to work these days because of the costs of housing."
Fogg said he has to do considerable work trimming down his clients' expectations to better fit what they can afford. Often that means giving up prime locations and setting their sights a little farther out from metropolitan areas.
"Moving into less desirable neighborhoods, considering homes under flight patterns or power lines — all of these and more become necessary considerations for buyers as they try to get into a home anywhere they can afford," Fogg said.