Weekly News (June 28, 2023)

Mortgage Interest Rates Review

(Fairway Home Loan 6/28/2023)

  Federal Fund Rate: 5.00% -5.25%        Prime Rate: 8.00%-8.25%

Possible Casino in Hell’s Kitchen: “헬스키친” 에 카지노 설립 추가 제안 

(Korea Times  6/24/23)

• So far, 10 place places for potential Casino in Manhattan were offered.
• Recently Real Estate developer/investor Larry Silverstein who developed multiple projects around World Trade Center after 9.11 offered a Casino plan between 11th Ave and 41st St in Manhattan where he owns the land.
• Those biddings for a potential Casino includes Citi Field parking area, Aqueduct Race Track in Queens, 1515 Broadway in Time Square, Former Saks Fifth building, Place in font of UN.

NYC Rent is the highest in U.S: 뉴욕시 임대료 전국 도시 중 최고 

(Korea   6/27/23)

• According to “Zumper” online real estate company, NYC is the # 1 among 5 cities of which rent are the highest in U.S – Jersey City, Boston, San Francisco, Miami, NYC.
• NYC median rent was $2,399 in the middle of the Pandemic like Dec, 2020, but it climbed up to $3,738 in Dec, 2022, which is up 56%. The main reason is the shortage of rental units in the city and more influx of people after the pandemic era. Manhattan is the leading place for higher rent and it hit $4,395 historical record in May 2023.
• Jersey City, NJ took the 2nd highest position where high income earners move in along with Hoboken in neighborhood. The median rent was $1,825 in Dec 2020, but it increased 70% to $3,102 in dec 2022.

Fort Worth Commercial Property Booms: 텍사스주,포트 워즈에 상업용 부동산 호황     

(WSJ   6/28/23)

• Fort Worth, Texas, is already America’s fastest-growing major city. Now, it is becoming a new commercial real-estate boomtown.
• Overall, $2.3 billion of projects are under construction or in the pipeline for Fort Worth, including 5,000 new apartments, said Todd Burnette, a managing director at commercial real-estate-services firm JLL.
• The development projects include Texas A&M University Urban research center, Lockheed Martin training research facilities, Prob-ablyMonsters HQ, Charles Schwab HQ plan, Goff’s business in real estate, energy, finance and hospitality, Dart Interests’ mixed use building.

Goff’s Crescent Fort Worth project as offices, apartments, and a luxury hotel

Prologis to buy Blackstone Industrial Property:  ‘플로러지’사가 ‘브랙스톤’사의 산업용 건물들 사다. 

(WSJ   6/27/23)

• Prologishas agreed to payBlackstone $3.1 billion for a portfolio of U.S. warehouses and distribution properties in a sign that industrial space remains one of the strongest property types in the shaky commercial property sector.
• The portfolio includes nearly 14 million square feet in about 70 properties in major markets including Atlanta, California, Dallas, South Florida and the Washington, D.C., and New York regions. The all-cash deal, which is one of the largest commercial real-estate transactions of 2023, is expected to close by the end of June.
• Prologis, a real-estate investment trust, is the world’s largest industrial property company with 1.2 billion square feet in 19 countries.

Average U.S. industrial asking rent, quarterly
 

Under the high interest rates, more demand and less supply: 고금리에도 수요 증가에  공급 감소

(Korea Daily    6/27/23)

• Home price in U.S. has dropped in the 2nd half of the last year after the Fed raised the fed fund rates, but home price is picking up the momentum this year because of increasing demand.
• NYT pointed that the late 20s and early 30s who are moving into housing market are the main source for high demand in the housing market. WFH(work from home) pattern also trigger this demand for those younger people.
• Meanwhile, supply is shrinking because home owners realized the difficulty to buy homes due to the high interest rates after they sold their homes and their current mortgage payment is very low due to lowest interest rates then and mostly they already did re-fi accordingly.

Black People are Departing Cities in North and Moving to South : 흑인들 북쪽의 대도시를 떠나, 남부로 이동

(WSJ   6/23/2023)

• The waves of migration that brought Black Americans to many northern cities are reversing.
• Departing residents are heading everywhere from nearby suburbs to high-growth areas in the southern U.S., such as metro Atlanta, according to demographers, real-estate agents and public officials.
• The outflow marks a reversal of the Great Migration that began in the early 20th century as millions of Black Americans left the South looking for more economic opportunities and to flee racial violence. Much of the current shift is driven by younger, college-educated Black people who are relocating from northern and western places to the South, said William Frey, a demographer at the Brookings Institution.

More High-Powered People Choose to Work into Their 80s: 능력있는 80대 더 일하기로

(WSJ  6/27/23)

• Growing numbers of 80somethings are deciding that if their days are finite, their time is better spent on the job than in retirement. About 650,000 Americans over the age of 80 were working last year, according to the Census Bureau, about 18% more than a decade earlier.
• Though some run a cash register or pump gas to stave off boredom, 80-somethings are more common in professional, managerial and financial roles than in service jobs, federal data show.
• The Bureau of Labor Statistics projects that workforce participation among people 75 and older will climb to 11.7% by 2030 from 8.9% in 2020. The participation rate for every other age group is expected to decline.

Top occupation for ages 80 years and older