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Tag: Housing Crisis

  • Texas company 3D printing houses on Earth, partnering with NASA to 3D print infrastructure on the moon

    Texas company 3D printing houses on Earth, partnering with NASA to 3D print infrastructure on the moon

    There was a time when futurists were predicting that the advent of 3D printing was going to change our lives.. that each of our houses would have a 3D printer to make whatever items we need. What virtually no one predicted, though, was that there might soon be 3D printers that could construct almost the entire house.

    But that’s just what a 6-year-old Austin, Texas company called Icon is doing.. 3D printing buildings. And if you believe Icon’s mission-driven young founder, 3D printing could revolutionize how we build, help create affordable housing, even allow us, to.. wait for it.. colonize the moon. Sound out of this world? Take a look..

    What you’re watching is the building.. actually, the printing, of a 4-bedroom home. On this construction site, there’s no hammering or sawing, just a nozzle squirting out concrete — kind of like an oversized soft serve ice cream dispenser — laying down the walls of a house one layer at a time. It’s the brainchild of a 41-year-old Texan who’s rarely without a cowboy hat, Jason Ballard.

    House 3d printing
    A 3D printer squeezes out the concrete mixture for the houses.

    60 Minutes


    Lesley Stahl: 3D printing a house.

    Jason Ballard: Yes, ma’am.

    Lesley Stahl: People are gonna hear that and say, “No.”

    Jason Ballard: We’re sitting inside one right now.

    Lesley Stahl: This house was printed?

    Jason Ballard: Yes, ma’am. 

    Lesley Stahl: Oh.

    Jason Ballard: There you are.

    Lesley Stahl: Look at this.

    Jason Ballard: Welcome.

    And so was this one. Does a concrete home printed by a robot have to look cold and industrial? Maybe not. 

    Lesley Stahl: I like the curved wall.

    Ballard gave us a peek at the first completed model home in what will soon be the world’s first large community of 3D-printed houses – a hundred of them.. part of a huge new development north of Austin. They’ll start in the high $400 thousand range. How exactly does 3D printing a house work? Well, it starts with this one-and-a-half-ton sack of dry concrete powder, which gets mixed with water, sand, and additives, and is then pumped to the robotic printer.

    Conner Jenkins: Now, you are looking at how we control the bead size.

    Conner Jenkins, Icon’s manager of construction here, explained that the printer completes one layer called a “bead” every 30 minutes, by which time it’s hardened enough to be ready for the next bead. Steel is added every 10th layer for strength. 

    Lesley Stahl: The amount of change you’re making is–

    Conner Jenkins: Tiny.

    It takes about two weeks to print the full 160-bead house. Jenkins gave me the controls.. an iPad.

    Lesley Stahl and Conner Jenkins
    Houses are being built using 3D-printing technology in Texas. 

    60 Minutes


    Conner Jenkins: So look, Lesley, that’s a little skinny. Will you press the plus 1% real quick?

    Lesley Stahl: Aren’t you worried?

    Conner Jenkins: Done. You just increased the bead size incrementally.

    Lesley Stahl: I’d be worried if I were you. 

    But turns out the path is entirely pre-programmed. I couldn’t mess it up if i tried.

    Lesley Stahl: Don’t tell the people–

    Conner Jenkins: I think that’s the most gorgeous bead I’ve ever seen. I think this’ll be the highest selling house. (laughs) 

    For now, as Jason Ballard showed us, Icon is only 3D printing walls, with cutouts for plumbing and electricity. Roofs, windows and insulation are added the old-fashioned way, by construction workers. He calls it a paradigm shift in how we construct our housing.

    Lesley Stahl: But why do we need a big shift like that?

    Jason Ballard: ‘Cause right now, it is too expensive, it falls over in a hurricane, it burns up in a fire, it gets eaten by termites. The way you try to make it affordable is you trim quality on materials. You trim quality on labor. The result is these cookie cutter developments. And, like, this is not the wor– like, we are not succeeding at something we have to get right. And on top of that, it’s an ecological disaster. And I would certainly say, it is existentially urgent that we shelter ourselves without ruining the planet we have to live on.

    Jason Ballard: Fire resistant, flood resistant..

    Ballard showed us a sample of a 3D-printed wall beside a conventionally built one.

    Lesley Stahl: You say it’s faster, more efficient.

    Jason Ballard: Yes.

    Lesley Stahl: Why do you say that?

    Jason Ballard: What you’ve got, let’s count the materials. Siding, one. Moisture barrier, two. Sheathing, three. Stud, four. Drywall, five. And then float tape and texture, you can count that either as one or three, but you’ve got at least half a dozen novel steps that have to take place to deliver an American stick frame wall system. By comparison, we need a single material supply chain, delivered by a robot.

    Lesley Stahl and Jason Ballard
    Jason Ballard demonstrated the difference between a conventionally built wall and a 3D-printed wall. 

    60 Minutes


    Lesley Stahl: Let’s talk about waste.

    Jason Ballard: Yes, ma’am.

    Lesley Stahl: Over here.

    Jason Ballard: At the end of constructing a home with these materials, there are truckloads, and truckloads of waste left over. These studs are gonna have off-cuts that go into a waste pile. Same with siding, same with drywall. 

    Whereas with 3D printing, he says, you only print what you need.

    Jason Ballard: So in short, like if an alien came down to Planet Earth and saw these two ways of building and said, “From first principles, which is better?” The alien would go, “Stronger, faster, termite resistant, fire resistant, like by a mile this is the best way to build.

    Though old-school construction workers may disagree. If Ballard sounds a little like a revved-up salesman, or a preacher, there’s a reason for that. He grew up in east Texas, a studious, outdoorsy, spiritual kid, first in his family to graduate from college. 

    Lesley Stahl: You were thinking about becoming an Episcopal priest. 

    Jason Ballard: Yeah, I was almost an Episcopal priest. But along the way, I started just, like, getting this, like, itch about housing not being right. So I studied conservation biology. I got involved in sustainable building, and I worked at the local homeless shelter. And so now I’m thinking about homelessness and I’m working in sustainable building. Along the way, my hometown gets destroyed by a hurricane. And I have to go help my family pull drywall outta their house. I– I feel like–

    Lesley Stahl: Oh, wow.

    Jason Ballard: –life is just putting housing in front of me, right as I’ve been, like, approved to go to seminary. And so I go to my bishop, the Bishop of Texas, Andy Doyle. He’s still the Bishop of Texas. And– I said, “What do I do?” (laughs) And at the end, he said, “Jason, I want you to pursue this housing thing like this is your priesthood. This is your vocation. And if it doesn’t work out, the church has been here for a long time. We’ll still be here.”

    Lesley Stahl: But that must’ve turned the switch for you.

    Jason Ballard: It did. It made it more than a hobby or a business, right, that it sorta became a mission.

    He began pursuing that mission with Evan Loomis, a buddy from Texas A&M who had gone into finance.

    Evan Loomis: As we looked at it, like, nobody had incorporated kinda the holy trinity of innovation to housing which was robotics, advanced materials, and software. 

    So in a borrowed warehouse on nights and weekends, and having read everything they could find about the mechanics of 3D printing, they tried to design a 3D printer that could make a building.

    Lesley Stahl: How big was it?

    Jason Ballard: It was ten feet, by 10 feet, by 10 feet. So it would’ve– it would’ve printed– if we had ever gotten it to work, which we did not– (laughs) it would have printed, like, a 100 square foot, like, demonstration building. 

    They didn’t get it to work, but enter Alex Le Roux, a recent Baylor engineering graduate, who was tinkering with a similar idea.

    Lesley Stahl: Did you ever actually build anything?

    Alex Le Roux: Yeah I did. 

    Lesley Stahl: What was it?

    Alex Le Roux: A printed shed. A shed doesn’t sound too cool, but it was a big milestone.

    Jason Ballard: It’s a real structure.

    Alex Le Roux: Yeah.

    Alex Le Roux, Jason Ballard and Evan Loomis
    Alex Le Roux, Jason Ballard and Evan Loomis founded Icon together.

    60 Minutes


    The three co-founded Icon in 2017, and soon got funding to print a small house to unveil at Austin’s SXSW festival the following spring. They built a new, larger printer, that worked.

    Alex Le Roux: And we got really excited.

    But the kinks hadn’t quite been worked out.

    Alex Le Roux: So at one point, we ran the printer into the print.

    Lesley Stahl: Explain that.

    Jason Ballard: It was supposed to go up, and it went down, and then drove into the house (laughs) and, like, pushed a buncha–

    Alex Le Roux: Exactly.

    Jason Ballard: –layers off.

    Funny now, but not so much at the time.

    Jason Ballard: Some engineers folks who were, like, helping us, sat us down and said, “Guys, it’s been a great effort. But you’re not gonna get there. So, like, why don’t you guys get some rest?” And we were basically like, “Get out of here.” (laughter) We’re like–

    Evan Loomis: It’s true.

    Jason Ballard: –“A–anyone who wants to sh– to finish this home may stay; everyone else needs to leave.”

    Lesley Stahl: And the three of you all agreed on that?

    Alex Le Roux: Yeah.

    Jason Ballard: We knew that we were on to something. And, like, we– this was, like, our shot. And we weren’t gonna miss it.

    They worked round the clock, and made the festival deadline by just hours.

    Evan Loomis: Hey Ballard, any words for the victory lap?

    Jason Ballard: Never, never never never give up.

    Jason Ballard: I stand by those words. Yeah, sure. (laughs) Never give up.

    He showed us the 350-square-foot finished house.

    Lesley Stahl: It’s a small little house, but it’s kind of elegant.

    Jason Ballard: “Well, I’ll be. That’s not so bad.” I mean I think (laughs) that’s kinda how people felt about it–

    Lesley Stahl: Yeah.

    Jason Ballard: It was, like, better than they expected. And it was easy to believe, “Well, they’ll get better.”

    That small little house won Icon a lot of attention.. an innovation award.. investors.. meetings with the military.. and with another Austin innovator — Alan Graham, who created a village called Community First! that provides small homes to several hundred of the formerly homeless.

    Alan Graham: Our goal was really the most despised, outcast, lost and forgotten of our community.

    Lesley Stahl: Oh, wow.

    Alan Graham: Average time on the streets is nine years. Average age of death is 59.

    Jason Ballard: It’s an absolute miracle out there. And so when we were ready to start building homes, one of the first organizations we reached out to was Alan Graham.

    So Icon 3D printed a welcome center, and then six small houses for village residents. That’s how 73-year-old Tim Shea, who battled heroin addiction for decades, in 2020 became the first person in this country to live in a 3D-printed home.

    Tim Shea and Lesley Stahl
    Tim Shea and Lesley Stahl

    60 Minutes


    Lesley Stahl: Before I saw these houses in my mind, I thought it must be cold. You’re shaking ’cause you don’t think that.

    Tim Shea: No. Just the opposite. You feel embraced– you know, enveloped. 

    Alan Graham: People that live, that are in the economic strata, the men and women that we serve are gonna be the last people on the planet that are gonna benefit out of new technology. And he wanted to make sure that they were the first.

    Lesley Stahl: The first person in North America to live in a 3D-printed house was homeless.

    Tim Shea: Yeah, I– isn’t that somethin’? 

    The years since have seen tremendous growth for Icon: a new factory to build more printers, and improve the quality of its concrete and a facility called ‘Printland’ to experiment with new designs. Icon has printed small homes in rural Mexico, vehicle hide structures for the Marine Corps, huge barracks for the Army and Air Force and a deluxe showcase home featuring wavy walls and curves that would be prohibitively expensive if built traditionally, but not when programmed into a 3D printer.

    Lesley Stahl: So in your minds, is your customer a homeless person? Or is your customer me?

    Jason Ballard: There’s a trick here because what our heart wants to do is to serve the very poor. And it’s often been, like, confusing for people to understand. It’s like, “I thought you guys were helping homelessness. Why are you building that fancy house?”

    Lesley Stahl: Yeah. 

    Jason Ballard: I would resign if I was only allowed to build luxury homes. And we would go bankrupt right now if all we built was 3% margin homes for homeless people. But once this technology arrives in its full force– I think it fundamentally transforms the way we build.

    It has been a staple of science fiction forever — humans living and working on the moon. But for NASA, that dream is almost within reach. Their new Artemis program plans to return American astronauts to the moon for the first time in more than 50 years — this time, not just to visit, but eventually to stay and even use the moon as a base for exploring Mars and beyond. But staying on the moon requires infrastructure — landing pads, roads, housing — and you can’t exactly bring two-by-fours and sheetrock on a spacecraft. That’s where 3D printing comes in. NASA is partnering with Jason Ballard’s company Icon to pioneer 3D printing on the moon.

    Last fall, NASA launched the first in a series of Artemis missions. The next, with crew on board, is scheduled for next fall. And by the end of the decade, an Icon printer is supposed to fly to the moon to test print part of a landing pad. Jason Ballard, who once applied to be an astronaut but was rejected, can’t wait.

    Jason Ballard: If the schedule holds, or even approximately holds, the first object ever built on another world will be built with Icon hardware.

    Lesley Stahl: He wants Icon to be the first company to make something on another world. 

    Corky Clinton: So do we.

    At Marshall Space Flight Center in Huntsville, Alabama, NASA scientists Jennifer Edmunson and Corky Clinton run a program called Impact.. spelled M-M-P-A-C-T.

    NASA scientists Jennifer Edmunson and Corky Clinton
    NASA scientists Jennifer Edmunson and Corky Clinton

    60 Minutes


    Corky Clinton: Moon to Mars Planetary Autonomous Construction Technologies.

    Lesley Stahl: Whoa. You people at NASA, you come up with these very, very (laughs) long names.

    Corky Clinton: That’s why we call it MMPACT. (laughs)

    The key word there is autonomous. 

    Corky Clinton: We want to be able to make structures that we need without having to be tended by astronauts.

    Jennifer Edmunson: If you’re gonna have a truly sustainable presence on the lunar surface, you have to be as Earth-independent as possible. 

    NASA was interested in 3D printing, having looked at an early version almost 20 years ago. So when they heard about the progress Icon had made with their first houses in Austin, Corky Clinton traveled there to take a look.

    Corky Clinton: Being an engineer, I spent a lot of my time going around and looking at the size of the beads and how they went around the corners, and I’ll tell ya, I was really impressed with what they had accomplished.

    Impressed enough that NASA gave Icon development money in 2020, and then, last fall, a $57 million contract. 

    Jason Ballard: Welcome to Spacelab, Lesley. This is where we figure out how to build on other worlds.

    Ballard and Evan Jensen, who leads the project, explained the fundamental challenge.

    Jason Ballard: To bring an object roughly this size from Earth to the moon’s surface would be $1 million. And think of how many sort of brick-sized things we would need to do — launch pad, landing pads, roads, habitats, so we have to learn to live off the land.

    Lesley Stahl: You have to learn to build it there and use the material–

    Jason Ballard: Correct. Yeah.

    Lesley Stahl: –from there.

    Jason Ballard: That’s right.

    But that’s no easy feat. It means using what’s called lunar regolith, which covers the moon’s surface, rather than concrete and water, as a building material.

    Jennifer Edmunson: Regolith is made up of rock that has been pummeled over billions of years from asteroids, comets and things. 

    Lesley Stahl: Is it like sand?

    Jennifer Edmunson: It’s actually finer than sand.

    Icon has a big tub full of simulated moon regolith, and they have invented and built a robotic system to 3D print with it.

    Lesley Stahl: You’re gonna build all those roads and buildings out of this?

    Evan Jensen: That’s correct. The robots will.

    Jason Ballard: This is actually the mission that we are scheduled to fly. 

    As he pointed out in this rendering…

    Jason Ballard: Our robotic arm with our laser system.. 

    They’ve created a whole new way to 3D print — with lasers. Instead of a nozzle squirting out soft concrete, a high-intensity laser beam will melt the powdery regolith, to transform it into a hard, strong, building material. they’re running experiments now, using the laser to create a small sample.

    Jason Ballard: Once that red light is on, we’re hot.

    Lesley Stahl: Oh. 

    Jason Ballard: Lots of power. 

    Martyn Staalsen: Here we go.

    Jason Ballard: Here we go. 

    We watched on monitors as the arm got into position.

    Martyn Staalsen: There’s the laser. 

    Lesley Stahl: Oh. That white thing is the laser.

    Evan Jensen: So it’s melting right now– It’s going up to, say, 1,500 degrees Celsius.

    Jason Ballard: It’s gonna complete its second pass. You can see it emerging there. See the dark object on the screen? That’s the object we just made with the laser.

    They can add more regolith and laser again and again to build in layers to go as high as they want, which will be done remotely from earth. It takes hours to cool, so they showed me a sample they’d made days earlier.

    Lesley Stahl: This is pretty darn hard.

    Evan Jensen: That’s our landing pad. You’re holding it.

    Lesley Stahl: I’m holding the landing pad?

    Jason Ballard: That’s exactly right.

    Lesley Stahl: It’s pretty cool. That’s a scientific term.

    3d printing plasma torch
    NASA uses a plasma torch to test the printed material provided by Icon.

    Icon sends them to NASA, where they’re blasted with this special plasma torch..

    Corky Clinton: The torch will be about 4,000 degrees

    To see if they can take the heat a landing pad would have to withstand.

    Corky Clinton: See there.

    Lesley Stahl: Oh, there it is. 

    The torch is so bright, you have to watch on a monitor.

    Corky Clinton: That was it.

    A few minutes later, out it came.

    Lesley Stahl: Oh. It’s just a little bit warm.

    Corky Clinton: It looks good to me. I don’t see any loss of material. I don’t see any cratering.

    Lesley Stahl: It survived the test?

    Corky Clinton: Passed the test with flying colors.

    The next test will be operating the entire robotic arm and laser..

    Corky Clinton: We’ll put in a large-scale simulant bed.

    Inside NASA’s giant thermal vacuum chamber, which mimics the moon’s extreme cold, heat, and vacuum conditions.

    Jason Ballard: This is sort of like–

    Ballard’s idea is to eventually send mobile 3D printers to the moon..

    Jason Ballard: So this moves the printer around.. 

    With a longer robotic arm sticking out of the top to print whatever is needed. 

    Jason Ballard: And then they would build the road and then they would build those habitats. Right? 

    Rendering of 3D printing on the moon
    This Icon rendering shows what 3D printing on the moon might look like.

    Provided to 60 Minutes by Icon


    And it wouldn’t stop there.

    Jason Ballard: If we can do it on the moon, we can do it on Mars. The moon is actually harder. 

    Lesley Stahl: It’s harder?

    Jason Ballard: Mars is almost in every way easier, except for it’s so far away.

    Easier, they agree, because for one thing, Mars doesn’t have extreme temperature swings.

    Lesley Stahl: Still, in my mind, it’s science fiction. But in your minds, it’s absolutely in the palm of your hand. It’s going to happen.

    Jennifer Edmunson: We can see the steps and the technology to get us there.

    Lesley Stahl: Now, that’s thrilling.

    Corky Clinton: It’s exciting.

    Jason Ballard: Quality can’t go backwards in Block 4.

    Icon says trying to 3D print on the moon and Mars is helping with their work here on Earth. They are formulating new mixes to reduce the carbon footprint of their concrete.

    Alex Le Roux: We think we will be there by end of year.

    And they’re trying out more radical architecture..

    Jason Ballard: Quite complex shapes and geometries. Almost looks like ripples on the surface of water.

    Patterned walls..

    Jason Ballard: It’s very subtle.

    Lesley Stahl: Oh, look at this.

    Jason Ballard: Yeah, it almost looks impossible. 

    And next year, as in these renderings, they’ll be printing round hotel rooms in Marfa, Texas.. and futuristic-looking designer homes.

    Jason Ballard: You see a bedroom on that end with a shower and a bedroom here. And here’s some renderings of the interior.

    Lesley Stahl: Wow.

    Jason Ballard: Right? It gets you goin’, doesn’t it? 

    Lesley Stahl: We’re living at time, right now, where a lot of CEOs have been caught over-promising, hyping.

    Jason Ballard: Mm-hm.

    Lesley Stahl: I’m thinking of Theranos. 

    Jason Ballard: You’re absolutely right. And it– and it– it’s– it’s– it’s a tougher thing than you know. Because part of the job is to get your investors, get your team, and in our case the world– to believe the things you are saying. Except the things you are saying don’t exist yet.

    Lesley Stahl: Yeah. Oh, boy–

    Jason Ballard: You– you need to get them to believe.. So it’s hard to know– like, even in this interview, I actually haven’t yet told you all the things I believe we’re going to do, ’cause I’m, like, measuring myself.

    Lesley Stahl: Give us one example. (laughs) Something wild.

    Jason Ballard: I mean, in the future, I think most buildings will be designed by AI, most projects will be run by software, and almost everything will be built by robots. And I don’t think that’s that far away.

    Lesley Stahl: I at my age find that very depressing– 

    Jason Ballard: Haa–

    Lesley Stahl: –but I’m sure young people don’t–

    Jason Ballard: –well, lemme– yeah, no, no. That world, housing will be more abundant, more affordable, more beautiful. It will make this version of housing look depressing by example. 

    Lesley Stahl: You know that expression, “If it seems too good to be true, it is?”

    Jason Ballard: Or– I do know that expression. But cars, and airplanes, and moon landings seemed too good to be true for a moment as well. And so, like maybe the only proof I can give you is, like, I’m betting my life on it. Like, I have this one precious life to live, and I’m using it to do this. And if I could think of a better way, I’d be doing that instead, or I’d go fishing. Like, this is so hard. (laughs)

    Lesley Stahl: And you like fishing.

    Jason Ballard: I love fishing.

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  • More young adults are living at home across the U.S. Here’s why.

    More young adults are living at home across the U.S. Here’s why.

    Younger adults in the U.S. are increasingly saying goodbye to their landlords and hello again to mom and dad. 

    According to a new survey from Harris Poll for Bloomberg, roughly 45% of people ages 18 to 29 are living at home with their families — the highest figure since the 1940s. More than 60% of Gen-Zers and millennials reported moving back home in the past two years, according to the poll, often because of financial challenges. 

    Moving back with their parents is a choice many are making these days as they grapple with high housing costs, heavy student debt, inflation and the kind of broader economic precariousness that has increasingly weighed on younger people in recent years. 

    The top reason for returning home, at more than 40%, is to save money, Harris found. In addition, 30% of respondents said they are staying with family members because they can’t afford to live on their own. Other factors included paying down debt (19%), recovering financially from emergency costs (16%) and losing a job (10%), according to the survey.  

    The poll, conducted online in August, includes responses from more than 4,000 U.S. adults, including 329 people ages 18 to 29.

    To be sure, young people aren’t the only ones struggling with a range of financial challenges. According to Harris, 81% of respondents of any age agree that reaching financial security is more difficult today than it was 20 years ago. But 74% of those surveyed agree that younger Americans face a “broken economic situation that prevents them from being financially successful,” the survey found. 


    Are baby boomers pushing millennials out of the housing market?

    05:48

    As many Gen-Zers and millennials move back in with their parents, attitudes toward living with family members are also shifting. According to the survey, 40% of young people reported feeling happy to be living at home, while 33% said they felt smart for making the choice to live with family. 

    In addition, a large majority of respondents reported they were sympathetic toward those who choose to live with their families, with 87% saying they think people shouldn’t be judged for living at home.  

    Baby boomers recently surpassed millennials as the largest share of U.S. homebuyers. Boomers, ages 58 – 76, made up 39% of home buyers in 2022, compared with 28% for millennials, according to March data from the National Association of Realtors. That’s an increase from 29% last year and the highest percentage of any generation. 

    Rent has also steadily climbed, rising more than 18% since 2020. As of August, the median rent across the U.S. hovered around a record-high of $2,052 per month, according to Rent.com.

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  • Climate Change Pushes Up Home Insurance Premiums

    Climate Change Pushes Up Home Insurance Premiums

    Homeowners renewing their insurance are seeing their premiums increase more than 20% according to a recent study, making housing even more expensive for a growing number of Americans.

    The study, conducted by Policygenius, found that Florida experienced the largest jump with premiums increasing by 35%. The steep increases in homeowner’s insurance costs contribute to the already intractable housing affordability crisis, as homeowners must allocate more of their incomes to their monthly housing costs.

    Natural Disaster Risk Drives Up Insurance Costs

    When State Farm stopped offering new policies in California, they blamed wildfire risk and construction costs for their inability to operate profitably in the Golden State. Farmers Insurance, which also pulled out of California, pointed to hurricane risk as an explanation for exiting Florida too. As climate change increases the severity and frequency of natural disasters, more homeowners and homebuyers will likely lose coverage or face increased insurance costs.

    Homebuyers Prefer Homes With Lower Climate Risks

    Homes that experience the largest jumps in insurance costs will likely experience lower home price appreciation than comparable homes with stable premiums. Homes where wildfire, flood, storm, or other natural disaster risks are increasing, will become less attractive to buyers who prefer homes with lower climate risks and insurance costs. A Redfin
    RDFN
    experiment found that homebuyers with access to flood risk data make offers on homes with lower risk. Redfin users who viewed properties with severe and/or extreme flood risk before the experiment bid on homes with 54% less risk after receiving access to risk data than users who were not shown the risk data. Redfin customers in flood-prone Cape Coral, Florida, Houston, Texas, and Baton Rouge, Louisiana, were the most likely to click into the flood-risk portion of home listings.

    Housing Affordability Will Worsen Without Government Action

    Although homebuyers prefer homes not at risk of natural disasters, affordability remains the first consideration for homebuyers. This explains why homebuyers from expensive places like New York and Los Angeles continue to move to disaster-prone Florida, which offer relatively affordable homes and low taxes. Over the last two years, on net, approximately 60,000 relocated to Lee County, FL, which contains Fort Myers and Cape Coral, and was devastated by Hurricane Ian last September. But now that Florida insurance premium prices have increased 35% in just one year, Florida cities like Cape Coral may become a less attractive location for homebuyers.

    We already have a shortage of affordable housing in the United States, and rising home insurance costs will worsen the problem. Local and state governments must prioritize building resilient housing in places with low disaster risks and insurance costs. Delaying action will only make the consequences of climate change costlier.

    Daryl Fairweather, Contributor

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  • Mortgage rates continue to climb — and could reach 8% soon

    Mortgage rates continue to climb — and could reach 8% soon

    US mortgage rates surged to highest level in 21 years


    US mortgage rates surged to highest level in 21 years

    02:27

    Even though mortgage rates have already reached their highest point in 20-plus years, there’s a chance they could climb even higher — even as high as 8%. It all depends on how the Federal Reserve decides to tackle stubborn inflation in the next few months, economists told CBS MoneyWatch.

    Fed officials said they believe high inflation is still enough of a threat to the U.S. economy to possibly warrant additional interest rate increases to help combat the issue, according to minutes released this week from their July policy meeting.

    Should the Fed decide to raise rates again at its next meeting in September, it would be the 12th in 18 months and could mean even higher costs for homebuyers.

    Mortgage rates don’t necessarily mirror the Fed’s rate increases, but tend to track the yield on the 10-year Treasury note. Investors’ expectations for future inflation, global demand for U.S. Treasurys and what the Fed does with interest rates can influence rates on home loans.

    Higher mortgage rates can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already deemed unaffordable to many Americans.


    Baby boomers dominating housing market with median first-time homebuyer age rising

    04:20

    Historical mortgage rates

    A recent survey from Bankrate found that one-third of respondents who aspire to buy a home say high mortgage rates are holding them back. But in past decades, homebuyers faced even steeper loan rates.

    “High rates are challenging for homebuyers, but it’s worth noting that Americans bought homes before the recent era of super-low rates,” said Jeff Ostrowski, a Bankrate analyst. “In one oft-cited example, mortgage rates went as high as 18% in the early 1980s, and buyers still found ways to get deals done.”

    Why are mortgage rates so high?

    If the Fed raises rates again, mortgage lenders will likely respond by either raising their rates or keeping them closer to today’s roughly 7.2%, economists said. 

    The Fed’s regime of interest rate hikes began in March 2022 as a way to cool the hottest inflation in four decades, as consumers and businesses tend to cut back on buying homes and other purchases when borrowing costs are higher.

    “If the 30-year-fixed mortgage rate can hold at a high mark of 7.2%, and the 10-year yield holds at 4.2%, then this would be the high for mortgage rates before retreating,” said Lawrence Yun, chief economist at the National Association of Realtors (NAR). “If it breaks this line and easily goes above 7.2%, then the mortgage rate could reach 8%.”

    An average 8% on home loans would be sour news for homebuyers, many of whom already faced a challenging market this summer with fewer homes available and higher asking prices. The national median home price hit $402,600 in July, up from $359,000 at the start of 2023, and the typical mortgage on a single-family home is now $2,051 compared with $1,837 a year ago, according  to NAR.

    Yun said 8% mortgage rates would bring the housing market to a halt and may even sink asking prices. 

    — The Associated Press contributed to this report.

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  • Renting a home may be more financially prudent than buying one, experts say

    Renting a home may be more financially prudent than buying one, experts say

    San Jose, California — Matthew Richmond makes a good living running a successful pest control company in Northern California’s Silicon Valley.

    “I’m living the American dream,” the 32-year-old told CBS News.

    Richmond can afford to pursue his passion for adventure. If he wants to buy a motorcycle or dirt bike, “I can go write the check and buy it,” he said. 

    However, what he has not purchased is a home, even though he says he could afford one.

    “Somehow, we’ve been led to believe that you have to own a home in order to be living the American dream,” said Ramit Sethi, host of the Netflix series “How to Get Rich.” “And that’s just not true. For a lot of people, renting can actually be a better financial decision.”

    A study released last month from Realtor.com found that U.S. median rental prices dropped in May for the first time since the start of the COVID-19 pandemic in 2020.

    A May study from Redfin also found buying a home is cheaper than renting in only four U.S. cities: Detroit, Philadelphia, Cleveland and Houston. 

    Another study released in May by the real estate company Clever Real Estate determined the top 10 U.S. cities where it may be better to rent than buy, taking into consideration current home prices. First on the list was San Jose, followed by San Francisco, Seattle, Denver and Los Angeles.

    “We have this idea that if I could rent a place for $2,000 a month, and if I could buy a place for $2,000 a month, I should buy, because I can build equity,” Sethi said.

    Sethi said that potential homebuyers need to consider the total cost of a home, including mortgage rates, property insurance and property taxes.

    “I call them phantom costs, because they’re mostly invisible to us until they appear,” Sethi said. “I actually add 50% per month to the price of owning. That includes maintenance, including a $20,000 roof repair, eleven years from now, that I don’t even know I have to save for yet.”

    An analysis released earlier this year by the apartment listing service RentCafe, using data from the U.S. Census Bureau, found that the number of high-income renters making $150,000 or more jumped 82% between 2015 and 2020, while the number of millionaire renter households tripled during that period.

    Sethi told CBS News he could also purchase a home now, but still prefers to rents as well. 

    “And so I love to talk about why I don’t,” Sethi said. “I have run the numbers carefully living in cities like San Francisco, New York and L.A., and it makes no financial sense for me to buy there.”

    If Richmond bought a home in Silicon Valley, his housing expenses would likely double. He said that he is “totally happy” renting at the moment.

    “It does not bug me at all,” Richmond said.

    “A rich life really is about saying yes to the things you want to spend money on,” Sethi said. “And it could be a house, but for many people, it’s not.”

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  • Difficult economy and loneliness forces some retirees to move in with family

    Difficult economy and loneliness forces some retirees to move in with family

    Yucaipa, California — Expensive upkeep, coupled with isolation during the COVID-19 pandemic, led retiree Jennie Olsen to move in with her daughter, son-in-law and their five children.

    Olsen loves being close to her family, and her daughter gets some much-needed help.

    “I get to see the grandkids grow up,” Olsen said. “I’m with them all the time.”

    An estimated 60 million Americans live in households with two or more adult generations, according to numbers from the Pew Research Center.

    Dr. Rodney Harrell with AARP said home shortages and high prices are forcing families to combine resources.

    “Honestly, the economist side of me loves the fact that it’s just more efficient, that we’ve got people that can have a family caregiver nearby,” Harrell said.

    Lennar, a construction company, has a line of Next Gen homes that come with a separate wing. Those Next Gen homes account for nearly 30% of the company’s sales in Phoenix, Arizona, alone.

    “To be able to have that privacy and the pride of ownership of their own separate space, connection to rest of house, but at the same time, it’s connected to the rest of the home,” said Jeremy Parness, regional vice president for Lennar.

    Another option is accessory dwelling units, or ADUs, which have become popular in cities like Los Angeles, thanks in part to California laws designed to tackle the state’s housing crisis by easing the permitting process. Olsen said an ADU sounds like a great idea, and she is putting a modular home in her daughter’s backyard.

    She said her family will be close, but “far enough away that I’ll have my solitude still.”

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  • Gen Z Congressman-elect Maxwell Frost was denied an apartment over

    Gen Z Congressman-elect Maxwell Frost was denied an apartment over

    Maxwell Frost made history last month when he won election in Florida’s 10th Congressional District, becoming the first Gen Z member of Congress at just 25 years old. But that historic win didn’t come easy — and now, the financial toll of the campaign is making it difficult for him to secure a home near the House. 

    In a Twitter thread on Thursday, Frost said that he had just applied to rent an apartment in Washington, D.C. During that process, he told the person taking his application that his “credit was really bad.” 

    “He said I’d be fine,” Frost said. “Got denied, lost the apartment, and the application fee. This ain’t meant for people who don’t already have money.” 

    He went on to say that he has bad credit because he “ran up a lot of debt running for Congress for a year and a half.” 

    During his campaign, Frost told Politico that he had quit his job to focus on campaigning. He drove for Uber to pay his bills, a “sacrifice” he said he made because “I can’t imagine myself not doing anything but fixing the problems we have right now.” 

    But that money didn’t go far enough, Frost said on Thursday, saying he “didn’t make enough money from Uber itself to pay for my living.” 

    “It isn’t magic that we won our very difficult race. For that primary, I quit my full time job cause I knew that to win at 25 yrs old, I’d need to be a full time candidate. 7 days a week, 10-12 hours a day. It’s not sustainable or right but it’s what we had to do,” he tweeted. “As a candidate, you can’t give yourself a stipend or anything till the very end of your campaign. So most of the run, you have no $ coming in unless you work a second job.” 

    Members of the House and Senate earn $174,000 a year, but that salary will not begin until Frost is sworn in on January 3. In the meantime, he needs to find a place to live in D.C.’s pricey housing market. According to Apartment List, the median rent for a one-bedroom apartment in the city is $1,786, well above the national average. Zillow shows an even higher cost of living, with a median rent of more than $2,300 for a one-bedroom apartment, slightly over $300 more than what the price was last year. 

    Frost noted that Rep. Alexandria Ocasio-Cortez faced something similar when she was elected in 2018. 

    “I have three months without salary before I’m a member of Congress. So, how do I get an apartment? Those little things are very real,” she told The New York Times. “…I’ve really been just kind of squirreling away and then hoping that gets me to Janaury.” 

    Four years later, “it’s still a problem,” Frost said Thursday. 

    “We have to do better for the whole country.” 

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