The Covid-19 pandemic is wreaking havoc on the U.S. rental market. Approximately 9 million households have so far failed to pay their May rent, according to industry data. Last month, 1.4 million fewer households paid their rent compared with this time last year.
The country’s 44 million rental households are uniquely vulnerable amid the current public health and economic crises. Renters often lack financial security and legal protections, not to mention bargaining power vis-a-vis their landlords. Worse, many are now being hit by the worst economic downturn since the Great Depression. Low-income renters, especially, work in industries crippled by Covid-related job loss: retail, hospitality and leisure, restaurants, and construction. Data suggests that 16.5 million renter households have already lost income because of the economic shutdown.
Faced with the specter of massive housing loss, policymakers have taken some steps to keep tenants in their homes, not only to help the renters but also as a critical public health measure — after all, it’s hard to comply with a “stay at home” order if you don’t have a home, or to socially distance if you’re forced to move into tight quarters with family or friends. The CARES Act has temporarily protected many renters by providing billions of dollars for emergency housing assistance, significantly expanded unemployment benefits and halted some evictions through July. Dozens of states and cities have also temporarily halted evictions, and cities such as Los Angeles, Chicago and Philadelphia are providing emergency funding for tenants.
It appears these stopgaps are working, at least for now: We have not seen as severe a spike in nonpayment of rent as might otherwise be expected, and early rent payment figures from May look a bit more encouraging than April’s numbers.
But these remedies focus on the short term. Because of the scale of this downturn, many if not most unemployed renters will not have new jobs by the end of July. The federal government needs a long-term plan to prevent millions of unemployed renters from losing their homes when eviction moratoriums and unemployment sweeteners run out.
More shutdowns coming
Indeed, public health experts are predicting that the Covid-19 crisis will last well beyond the summer, and some government officials are bracing for waves of shutdowns that could continue for 12 to 18 months. It’s also likely that the U.S. will get hit with another, perhaps more deadly, wave of the virus next winter. When the economy does reopen, it will be in the throes of a deep recession during which millions of middle-income tenants will likely be unemployed and require housing assistance for the first time. Without smart, proactive policies to help millions of unemployed renters, we will be facing billions of dollars in rental debt, chaos at the eviction courts and overcrowded shelters primed for another outbreak.
Renters were struggling before the Covid-19 outbreak amid a well-documented affordable housing crunch. Nearly 40 percent of renter households are rent-burdened — meaning that they spend more than a third of their salary on rent — and two-thirds of renter households can’t afford an unexpected $400 expense.
On top of that, renters have few of the legal and financial protections offered to homeowners. Many states forbid renters from withholding rent even if their unit is in disrepair, most renters have no right to legal counsel during eviction proceedings, and once eviction judgments are handed down, renters can be evicted in a matter of days. And, partly as a result of the subprime mortgage crisis of 2008, federal housing policy heavily favors homeowners over renters. Congress spends approximately three times as much on mortgage-interest reduction as it spends on rental housing vouchers each year. Whereas mortgage holders are protected by the provisions of the Dodd-Frank Act, notably through creation of the Consumer Financial Protection Bureau, no analogue exists for renters.
For the moment, these renters are being kept afloat through a combination of short-term emergency cash, unemployment benefits and eviction bans. But it won’t last past the summer. On top of the one-time $1,200 stimulus check, the extra $600 per week added to unemployment insurance checks expires in July. Unemployment doesn’t cover everyone, notably our 10 million to 12 million taxpaying undocumented immigrants — many of whom are renters — and those working in the informal economy providing child care, cleaning and other services. Another 8 million to 12 million unemployed Americans haven’t even bothered to apply, due to a well-documented backlog of claims and the difficult application process.
It’s not clear what appetite Congress has for extending the current short-term stimulus measures. Lawmakers might choose to extend the $600 per week unemployment sweetener past July. An extra $2,400 per month is more than enough to cover rent for most Americans, and once unemployment offices dig out from the initial crush of claims, delivering this assistance would be an efficient and direct way to keep more people in their homes. Yet Republicans are concerned that these expanded benefits are discouraging people from returning to work, and any such proposal would have to survive tough negotiations.
Meanwhile, the $300 billion recently provided in the most recent stimulus package to keep small business workers on payroll is likely already gone. Temporary rental assistance remains underfunded by tens of billions of dollars, and need is only growing as layoffs continue.
While landlords should be encouraged to reduce payments or implement repayment plans, canceling rent isn’t a viable option for many of them. The prototypical rental unit might be inside a high-rise apartment building owned by a real estate giant, but in fact the overwhelming majority of rental properties in this country are single-unit homes owned by mom-and-pop landlords. These property owners rely on rent to pay their own mortgages, to finance repairs and upkeep of rental properties, and to pay property taxes.
So, protecting tens of millions of renters in the midst of a deep recession won’t be easy. But Congress needs to recognize the importance of keeping rent checks flowing. Delinquent rents could easily spiral into foreclosed units and a consolidation of rental stock similar to Wall Street buy-ups after the Great Recession. That means an increase in substandard housing, worse property management and more marginalized Americans. What’s more, evictions cost U.S. cities hundreds of million of dollars per year. That money should be helping to prop up a struggling economy instead.
But while difficult, it’s not impossible to prevent a rental-housing crisis. Congress needs to expand direct rental assistance. That means cash for rent, sent either directly to landlords or renters.
The National Low Income Housing Coalition estimates that $100 billion in rental assistance would support 15.5 million low-income households over the next year. The Urban Institute’s estimate is about twice that, and accounts for renters of all incomes. That line item’s a drop in the bucket compared to the total stimulus funding Congress anticipates pushing through this year, and will stabilize millions of Americans’ largest household expenditure.
There are several mechanisms Congress could chose for this. Cash could be directly provided for rent through the Department of Housing and Urban Development’s existing Emergency Solutions Grant network, in which local services providers administer funds to those at risk of homelessness, or through temporary expansion of the department’s Housing Choice Voucher program, through which local housing agencies pay landlords a portion of low-income tenants’ rent. While some housing agencies might face a flurry of new applications, most unemployed American renter households with zero income would easily qualify.
Alternatively, Congress could attempt to funnel money more directly to landlords. The benefit of this approach is that there are fewer landlords than tenants, and they’re easier to track down. The drawback is that this approach would involve creating an entirely new program. If Congress goes this route, it could model a program on the Treasury Department’s Home Affordable Modification Program (HAMP), focused on landlords’ non-owner occupied homes, or expand the Federal Reserve’s Main Street Lending program to allow lending to the rental industry.
The bottom line is that Congress needs to find a way to inject funding into the rental ecosystem — whether through unemployment insurance, rental assistance or direct payment to landlords. Protecting our renters won’t be cheap, and it won’t be easy. But ignoring the coming crisis will cost billions more down the line in the form of rental debt and landlord foreclosures, and could keep millions of Americans from safely sheltering in place. That’s something we truly can’t afford.
Reflecting the growing effects of the COVID-19 pandemic, builder confidence in the market for newly-built single-family homes plunged 42 points in April to 30, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The decline in April was the largest single monthly change in the history of the index and marks the lowest builder confidence reading since June 2012. It is also the first time that builder confidence has been below the key breakeven reading of 50 since June 2014.
The unprecedented drop in builder confidence is due to the coronavirus outbreak across the nation, as unemployment has surged and gaps in the supply chain have hampered construction activities. Builders have also expressed confusion over eligibility for the Paycheck Protection Program, as some builders have successfully submitted loan applications while others have not been able to. NAHB is working with the White House, Treasury and Congress to get the broadest builder participation possible. Home building remains an essential business throughout most of the nation.
Before the pandemic hit, the housing market was showing signs of strength with January and February new home sales at their highest pace since the Great Recession. To show how hard and fast this outbreak has hit the housing sector, a recent poll of NAHB members reveals that 96 percent reported that virus mitigation efforts were hurting buyer traffic. While the virus is severely disrupting residential construction and the overall economy, the need and demand for housing remains acute. As social distancing and other mitigation efforts show signs of easing this health crisis, NAHB expects that housing will play its traditional role of helping to lead the economy out of a recession later in 2020.
Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
The HMI index gauging current sales conditions dropped 43 points to 36, the component measuring sales expectations in the next six months fell 39 points to 36 and the gauge charting traffic of prospective buyers also decreased 43 points to 13.
Looking at the monthly averages regional HMI scores, the Northeast fell 45 points in April to 19, the Midwest dropped 42 points to 25, the South fell 42 points to 34 and the West dropped 47 points to 32.
The HMI survey took place between April 1 and April 13.
January home sales spur optimism for 2020 New York State housing market
Albany, NY – Closed sales and pending sales were up in January in year-over-year comparisons, fueling optimism for a robust 2020 housing market, according to the housing market report released today by the New York State Association of REALTORS®.
Closed sales improved 4.1-percent to 9,204 units from 8,842 houses at the start of 2019. Pending sales were also up in year-over-year comparisons, escalating to 8,895 houses – a 5.6-percent increase over January 2019’s total of 8,421 homes.
The median sales price continued to appreciate as the calendar turned to 2020. The statewide median sales price was $300,000 – an increase of 9.1-percent from the January 2019 median of $275,000.
New listings were down to 14,370 homes – a 2.9-percent decrease from 14,806 homes in January of 2019.
The monthly average commitment rate for a 30-year fixed mortgage continues to be affordable, dropping to 3.62-percent in January according to Freddie Mac. Days on the market remained unchanged from January 2019 at 77 days.
Data and analysis compiled for the New York State Association of REALTORS® by Showing Time Inc.
Home prices increased in November, rising only 0.2% from the previous month’srevised pace, but up 4.9% from 2018, according to the latest monthly House Price Index from the Federal Housing Finance Agency.
The FHFA monthly HPI is calculated using home sales price information from mortgages sold to or guaranteed by Fannie Mae and Freddie Mac. Because of this, the selection excludes high-end homes bought with jumbo loans or cash sales.
The report explains that across the nine census divisions, the East North Central division saw the strongest appreciation growth, increasing by 0.8% November, whereas the Mountain division experienced no growth, as appreciation declined 0.1%.
However, the FHFA highlights that the 12-month changes were all positive, with the New England and the West South Central divisions posting the smallest gain of 3.8%, and the Mountain division leading the way with a 6.3% increase.
These are the states located in each division mentioned:
East North-Central: Michigan, Wisconsin, Illinois, Indiana, Ohio
Mountain: Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona, New Mexico
New England: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut
West South Central: Oklahoma, Arkansas, Texas, Louisiana
The chart below compares 12-month price changes to the prior year:
“With Federal Reserve policy on cruise control and the economy continuing to grow at a steady pace, mortgage rates have stabilized as the market searches for direction,” said Sam Khater, Freddie Mac’s Chief Economist. “The risk of an economic downturn has receded and, combined with the very strong job market, it should lead to a slightly higher rate environment.”
Khater continued, “Since early September, when mortgage rates posted the year low of 3.49 percent, rates have moved up to 3.73 percent this week. Often, while higher mortgage rates are deleterious, improved economic sentiment is the reason that these higher rates have not impacted mortgage demand so far.”
30-year fixed-rate mortgage averaged 3.73 percent with an average 0.7 point for the week ending December 12, 2019, up from last week when it averaged 3.68 percent. A year ago at this time, the 30-year FRM averaged 4.63 percent.
15-year fixed-rate mortgage averaged 3.19 percent with an average 0.7 point, up from last week when it averaged 3.14 percent. A year ago at this time, the 15-year FRM averaged 4.07 percent.
Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers.
After declines for six consecutive quarters, the home building component of gross domestic product (GDP) increased during the third quarter of 2019. This gain was due to the housing rebound that has taken hold since the spring, with the pace of single-family permits rising since April and the rate of single-family starts increasing since May.
The overall housing share of GDP increased to 14.6% during the third quarter, as GDP growth slowed to a 1.9% rate. The home building and remodeling component – residential fixed investment – increased modestly to 3.11% of total GDP and added 0.18 basis points to the headline GDP growth rate.
Housing-related activities contribute to GDP in two basic ways.
The first is through residential fixed investment (RFI). RFI is effectively the measure of the home building, multifamily development, and remodeling contributions to GDP. It includes construction of new single-family and multifamily structures, residential remodeling, production of manufactured homes and brokers’ fees.
For the third quarter of 2019, RFI was 3.1% of the economy, reaching a $594 billion seasonally adjusted annual pace (measured in inflation adjusted 2012 dollars).
The second impact of housing on GDP is the measure of housing services, which includes gross rents (including utilities) paid by renters, and owners’ imputed rent (an estimate of how much it would cost to rent owner-occupied units) and utility payments. The inclusion of owners’ imputed rent is necessary from a national income accounting approach, because without this measure, increases in homeownership would result in declines for GDP.
For the third quarter, housing services was 11.5% of the economy or $2.18 trillion on seasonally adjusted annual basis.
Taken together, housing’s share of GDP was 14.6% for the quarter.
Historically, RFI has averaged roughly 5% of GDP while housing services have averaged between 12% and 13%, for a combined 17% to 18% of GDP. These shares tend to vary over the business cycle.
As the homeless crisis continues to simmer in Oregon’s largest city, local officials working with nonprofit groups have deployed mobile hygiene stations in a bid to clean up some of the largest encampments.
Portland, with a metropolitan area of about 2.4 million people, has joined West Coast cities such as Los Angeles and San Francisco in struggling with a growing homeless crisis that ranks among the worst in the country.
Safety resource website Security.org released a study on Monday that showed Oregon has the fourth-highest number of homeless people in the nation when adjusted for population. The study found Oregon has about 350 homeless people per 100,000 people, nearly double the national average of 168 per 100,000. The study also found that Oregon’s homeless rate has increased by nearly 14.10 percent since 2014.
Oregon has seen its homeless rate rise by nearly 14.10 percent since 2014, according to a recent study.
On any given night, thousands of people can be found sleeping on the streets of Portland. The latest count, released in August, shows that, in 2019, more people were sleeping outside in Multnomah County than at any time in the last decade. Of the 2,037 unsheltered people, nearly 80 percent reported having one or more disabilities.
In January, Portland launched a “Navigation Team” with outreach workers that have spent time going out to homeless encampments, focusing on specific locations in order to reduce impacts to area communities.
“These are campsites that for a very long time have been generating concerns and safety issues,” Denis Theiault, a spokesman for the Joint Office for Homeless Services, told FOX12 on Tuesday. “Not just public safety issues but health and safety issues for the folks who are camping there as well as the folks who are near those sites.”
Officials in Portland have deployed a mobile hygiene unit which is comprised of two portable toilets, hand-washing stations, a garbage can, sharp box and lockers to help improve areas near homeless encampments.
Part of that outreach includes offering sanitation services, such as a mobile hygiene unit that is comprised of two portable toilets, hand-washing stations, a garbage can, a sharp box, and lockers.
The mobile station deploys around various homeless encampments with the largest populations, according to officials. The current trailer on Southeast Flavel Street under Interstate 205 was moved to the underpass about two weeks ago.
Tracy Vargas, who has been camping out in southeast Portland for over three years, told FOX12 she appreciates that there is now a place where she is able to have access to a bathroom.
“You’ve got to find a business around the area that will let you come in and go,” Vargas told FOX12 Tuesday. “A lot of times you get left to going out in the woods or wherever you can go.”
In the summer of 2019, Fox News embarked on an ambitious project to chronicle the toll progressive policies has had on the homeless crisis in four west coast cities: Seattle, San Francisco, Los Angeles and Portland, Ore. In each city, we saw a lack of safety, sanitation, and civility. Residents, the homeless and advocates say they’ve lost faith in their elected officials’ ability to solve the issue. Most of the cities have thrown hundreds of millions of dollars at the problem only to watch it get worse. This is what we saw in Portland.
Vargas said she’s also working with the homeless outreach team to get her birth certificate, and agrees the program is a “wonderful idea.
Pat Perkins said she’s seen an influx in homeless people in the 14 years she’s lived in the area, and the garbage and human waste have grown exponentially in the past five years.
“It seems like it could be a health hazard, especially when you see needles and feces on the ground,” Perkins told FOX12, saying having a designated place to throw trash, hazardous materials and use the bathroom will hopefully improve conditions.
The sanitation services may be the most visible part of the outreach group but it’s not their only goal, according to Theiault. He told FOX12 the group’s ultimate plan is to get people permanently off the streets by providing them with necessary things to move forward.
“We’re going to get them their ID, we’re going to get them a birth certificate, we’re going to get them medical connections,” he told FOX12.
City officials said Tuesday that at least 15 people from the camp under Interstate 205 have been placed in shelters, including two families.
From a boat on the Hudson or a riverbank in Rockland County, Indian Point is hard to miss: two hulking, gray domes perched on the river’s edge. The facility appears otherworldly — a structure that might look more at home on the moon, rather than the sleepy village of Buchanan.
Over the years, Indian Point’s impact on Westchester life — from economics to ecology to energy — has also been hard to miss. From the power plant’s opening in the 1960s up to present day, it’s been a source of controversy: “Wood, Field and Stream; Con Edison Engineers Trying to Halt Mass Killing of Fish in Hudson,” reads a New YorkTimes headline from 1963. Fifty-one years later, the Times was still reporting a similar theme, claiming that as many as a billion fish eggs and other small aquatic organisms were being ”parboiled” each year by the plant’s river-water cooling system.
You may have also spotted the “Close Indian Point” bumper stickers or those ominous bright-blue evacuation signs, even the occasional protest.
But the power plant has brought boons, too: thousands of high-paying jobs for Westchester residents; monumental tax payments to nearby municipalities; and, of course, energy. The plant’s two active reactors generate a combined 2,000 megawatts of electricity — enough to power millions of homes.
In recent years, however, safer energy sources, like wind power, and cheaper energy sources, like natural gas, have emerged — all while critics of Indian Point have found some prominent allies. Governor Andrew Cuomo says often that the plant’s proximity to New York City, and its potential for disaster, is unacceptable. In this changing environment, questions about the power plant’s demise began to be framed not as “if” but “when.” In early 2017, when New York State and Entergy (which owns and operates Indian Point) announced they would shutter the plant over the course of four years, the decision wasn’t shocking.
The first of the plant’s two active reactors will go offline in April 2020, the second in April 2021. (A third reactor closed decades ago.) Then comes years, maybe even decades, of decommissioning. In 2021, Entergy plans to sell the property to Holtec International, a company with experience dismantling nuclear plants that has a presence in the U.S., the U.K., India, and elsewhere. “They have special expertise that Entergy doesn’t have,” explains Jerry Nappi, Entergy’s director of communications. “They can decommission the plant decades sooner than we would be able to.”
But even if the closure isn’t a shock, the impact is still monumental on a region that has become deeply entwined with its power plant. Despite careful planning for the shutdown, a range of Westchester players — from local governments and taxpayers to Entergy employees and environmental advocates — are anticipating big changes. And they won’t just affect the 2,200 people who call Buchanan home or the 42,000 residents of the town of Cortlandt. The economic, environmental, and energy impacts will be felt across the entire county, experts say.
Cortlandt Town Supervisor Linda Puglisi, Hendrick Hudson School Superintendent Joseph Hochreiter, and Buchanan Mayor Theresa Knickerbocker.
Linda Puglisi has served as town supervisor of Cortlandt for 14 terms — some 28 years. “Did we know Indian Point was going to close eventually? Of course,” says Puglisi. “We just didn’t know they were going to close now.”
Few people understand Indian Point’s relationship with Westchester better than Puglisi, who, unsurprisingly, holds the distinction of Cortlandt’s longest-serving supervisor. But when the closure announcement was made in 2017, Puglisi says she found out at the same time as everyone else.
“The economic fallout of this is extremely significant,” Puglisi says. “It’s the largest taxpayer in the town of Cortlandt,” referring to the $800,000 a year the town receives from Indian Point. Meanwhile, in Buchanan, about one-half of the village’s annual revenue comes from Indian Point taxes. A local fire district and library are set to lose the lion’s share of their funding, too, Puglisi explains.
One of Cortlandt’s school districts, Hendrick Hudson, will suffer, as well. The district gets $24 million from Indian Point — “one-third of their revenue,” Puglisi says.
In total, “It adds up to $32 million a year that all the [affected] entities are going to lose,” Puglisi continues. “This is a huge challenge, one of the biggest challenges in New York State.” And that already prodigious number doesn’t even contemplate millions more dollars that Entergy pumps into the community in sponsorships, donations, intiatives and volunteerism.
It’s a challenge without a clear solution. A PILOT (payment in lieu of taxes) agreement between Entergy and municipal governments, negotiated in 2015, will provide some tax revenue over 10 years. “Payments ramp down for three years after the shutdown and then hold at a certain level,” explains Nappi. The payments will decrease by 30% after the first year, 60% the following year, and 90% the third year. “And then [payments] hold at 10 percent until the PILOT is over in 2025,” Nappi says.
Attempts to remedy the shortfall include Cortlandt seeking vacant or underused land to capitalize on. Puglisi says she hopes for new industries or perhaps a new corporate park. Local officials are also seeking state and federal cessation funds — support for communities facing shortfalls from energy company closings. But the state fund that Puglisi is lobbying only has about $45 million for all state communities that have energy plants closing, she says, not nearly enough to cover the $32 million-per-year shortfall for Indian Point alone.
What about new development projects to fill that tax void — some new taxpayer on Indian Point’s 240 acres, many of which are waterfront? “We lobbied for that,” Puglisi explains, but building on a former nuclear site isn’t so easy. “The decommissioning of the plants could take up to 60 years,” she says, citing NRC data. (Some radioactive materials will remain on the site for a period even after the plant stops functioning.)
Westchester County will be affected by all this, too, as approximately 1% percent of the county’s property tax comes from Indian Point. “It has less of an impact on Westchester County tax roll, although it’s not insignificant,” says Catherine Borgia, the county legislator representing parts of Cortlandt and Peekskill, among other areas. Borgia says her focus is supporting the economic redevelopment of the most affected municipalities, like Cortlandt and Buchanan, and maintaining the environmental safety of the site of the power plant.
Tax revenue is one thorny problem; jobs are another. Indian Point presently has about 950 employees, from control-room operators to security personnel, and around 170 of them live in Westchester. Despite one of the reactors going offline in 2020, the entirety of that staff will remain until the plant fully closes down, in April 2021. “[Entergy] committed to no reduction in workforce prior to April 2021,” Nappi explains.
The New York State Department of Labor has also stepped in. According to the state’s most recent annual closure report, the agency is deploying a rapid-response team to assist Indian Point employees with résumé services, LinkedIn training, interview best practices, and job leads.
Still, these developments aren’t enough to allay local anxieties. “It’s our largest employer,” Puglisi says, “[with] good-paying jobs.” According to her, the loss of those jobs will impact close to 5,000 people when you take into account employees’ children, grandchildren, and other family members in the vicinity. “Entergy is based in New Orleans,” says Puglisi, “a lovely place to visit, but we don’t want our people to have to move far away. We want them to stay in the area and be retrained and reskilled.”
A local task force — made up of unions and lawmakers, among others — is hoping to mitigate the fallout through retirement packages and retraining programs. There’s also state-level legislation, S5305B, a bill by New York State Senator Pete Harckham to address the issue. The bill aims to protect union jobs and wages during the decommissioning process. The bill “will help keep families in place by preventing a decommissioning company from coming in and displacing our well-trained workforce, replacing them with unskilled, non-union, low-wage out-of-towners,” Harckham explained in a recent press release. (At press time, the bill still needed to pass in the state assembly before proceeding to the governor’s desk.)
Employees and their families won’t be the only ones affected by the closure — Westchester businesses will be, too. “[Employees] go to local delis; they go to local gas stations; they go to local restaurants,” Puglisi explains. “There’s a trickle-down impact on our community.”
Deb Milone, president of the Hudson Valley Gateway Chamber of Commerce, says the chamber is working closely with Entergy and the Indian Point staff as the plant and the region prepare for the shutdown. Nestled in a side street in downtown Peekskill, the chamber represents more than 520 members spread across Croton, Cortlandt, Peekskill, and Putnam Valley, and other municipalities. “It’s mostly small and medium-sized businesses,” Milone explains, defining “small” as businesses with 10 or fewer employees. (Some big businesses are members, too — including Entergy, BASF, and NewYork-Presbyterian Hudson Valley Hospital.)
Many of the small businesses have April 2021 on their minds. “The effect the shutdown will have on the local business community is a concern, but having the decommissioning process done quickly, safely, and efficiently is of paramount importance and will benefit the entire region including the business community,” Milone says. “The closer you are to the plant, the more it’s being discussed.” She expects that restaurants, mechanics, and dry cleaners in places like Buchanan and Montrose will feel the impact worse than, say, businesses in Peekskill or Yorktown.
Milone says it’s difficult for those small businesses to prepare or even anticipate what will happen come 2021. Some are pessimistic: One merchant she spoke with expects to lose 40% of its business. Others are more optimistic, including Milone herself. She recently spoke with members of a chamber of commerce in Vermont, within a community that already lost its nuclear power plant. “[They] said there really wasn’t a major downturn to their small business community,” Milone reports.
“Entergy is based in New Orleans. A lovely place to visit, but we don’t want our people to have to move far away. We want them to stay in the area.”
—Cortlandt Town Supervisor Linda Puglisi
Comiserating with the merchants, of course, are homeowners in Cortlandt, Peekskill, and the surrounding area. At present, “there’s really no impact on the values of the homes,” explains Joseph Lippolis, an associate real estate broker with River Towns Real Estate in Peekskill. (Lippolis also serves on the local task force, alongside Puglisi.) “We don’t see any massive exodus from the area, and the area is at fair market value.”
Lippolis doesn’t foresee a future exodus, either: “You’re going to see a normal flow of home sales over the next several years,” he predicts. Lippolis says longstanding local perks — strong schools, proximity to the Hudson and Manhattan — will continue to prove alluring to buyers. He does, however, anticipate a hike in property taxes, which might prove burdensome to retirees in Buchanan and Cortlandt.
Might there be a real estate silver lining? Over the years, some families shopping for a new home have balked at the idea of living in the shadow of a nuclear power plant. Now, with Indian Point shutting down, might there be an influx? Lippolis doubts it: “It’s not like we’ve ever had homes that remained vacant because of Indian Point.”
How to Decommission a Nuclear Power Plant Decommissioning Indian Point will be a meticulous and time-consuming process — for several years, experts will be on-site handling and carting away radioactive materials. According to Joe Delmar, senior director of Government Affairs and Communications at Holtec, the company being considered to be tasked with dismantling the plant, the decommissioning process breaks down into these five steps: Turning it off. First up is taking the reactors offline. “Entergy will shut down Unit 2 by April 30, 2020, and Unit 3 by April 30, 2021, permanently defuel each reactor and place the used fuel in their respective spent-fuel pools.” Dealing with the fuel. Then it’s time to transport that radioactive fuel. “Once sufficiently cooled, the fuel will be placed in stainless-steel and concrete canisters and transported to the Independent Spent Fuel Storage Facility on the Indian Point property.” Dismantling. Holtec begins disassembling the facilities. “Radioactive equipment and components are dismantled per an approved decommissioning plan.” Removal. In order for the Indian Point property to eventually become usable real estate, all these radioactive substances and parts need to be carted away. “Contaminated components are securely packaged and transported to a licensed off-site facility.” Inspection. Last, the site has to meet government standards. “The site is inspected by state and federal agencies to ensure the property has been returned to conditions outlined in the decommissioning plans. Both the state and federal agencies will continue to monitor the site.”
Lawmakers, employees, and merchants aren’t rejoicing over the plant’s closure, but another demographic is: environmental advocates. For those touting ecological and safety concerns, Indian Point’s closure is cause for celebration. “We think it’s very good news,” says Richard Webster, legal director at Riverkeeper, an environmental watchdog agency based in Ossining. “It’s had a huge impact on the environment; there’s a huge safety risk.”
The nonprofit — which protects the Hudson River and its offshoots — has come into conflict with the nuclear plant more than once. “We originally got involved with Indian Point because the cooling system was killing millions of fish,” Webster says. “It was having a major impact on the ecology of the Hudson.”
That first melee started in the early 2000s, but others followed. Webster continues: “As we looked at the plant more, we realized there were many other problems,” including earthquakes, apparently. “Turns out there were more faults than they thought,” he says. Degradation was another: “The bolts that hold the inside of the reactor together were fatigued and broken,” he says. Then, there was the problem of evacuation: “There’s very high population density around the area,” Webster explains, and in case of an accident, he believes, realistic evacuation would be “next to impossible.”
Webster makes clear that the closure doesn’t solve all environmental problems: “Some challenges remain the same, and there are some new ones.” The spent fuel in the reactors have to be carefully handled and stored, for example. “It’s very radioactive; it’s really unsafe to work around,” Webster explains. Riverkeeper is also a critic of Holtec, the company proposed to be purchasing and dismantling Indian Point. “Holtec in particular has some serious problems. They’re the worst entity out there to do the job,” Webster says, likely referencing bribery and corruption allegations that triggered a two-month debarment and $2 million administrative fee imposed on Holtec in 2010 by the Tennessee Valley Authority (TVA). This followed an investigation by the TVA’s Office of the Inspector General that claimed Holtec made illegal payments to a TVA supervisor in Alabama in return for a contract to build a storage system for the facility’s spent nuclear fuel rods. Then, in 2014, Holtec CEO Kris Singh gave a false answer on an application to the state of New Jersey (for a $260 million tax break for a new power plant in Camden), having answered “no” to a question asking if the applicant had ever been barred from doing business with a state or federal agency. But in a statement to Westchester Magazine, a spokesperson for Holtec said: “In December 2010, the brief debarment was removed and Holtec was cleared of any wrong doing [sic]. TVA restored full business relationships with Holtec, including on October 1, 2012, awarding Holtec a ten (10) year contract valued at approximately $300 Million. TVA currently remains a valued client of Holtec today,” adding that the false answer was “an oversight” that Holtec had revised with the New Jersey Economic Development Authority.
When unpacking the economic and environmental impacts of the closure, one might overlook another big question: How do you replace 2,000 megawatts of electricity? Indian Point’s output — which is distributed throughout Con Ed’s infrastructure — is enough to power about 5% of the state, according to Riverkeeper. Where will that come from after April 2021?
“It does not appear that there will be a significant shortage in energy availability,” says Borgia, the county legislator. “The grid is very interconnected; if there’s a [local] shortage, we’re able to draw from other sources.” Borgia sees the shift as a chance to invest in renewable energy: “It’s an economic-development opportunity — [renewables] are a burgeoning field right now.”
When New York announced the closure in 2017, Governor Cuomo noted: “The state is fully prepared to replace the power generated by the plant at a negligible cost to ratepayers.” That “negligible cost” works out to about a net 1% increase on consumers’ electricity bills, according to a report by Synapse Energy Economics, an energy-research firm. The replacement energy could come from hydropower generated in Quebec, among other venues.
In March, residents got a small taste of life without Indian Point. During a partially unplanned two-week shutdown, the region drew power not from nuclear reactors but rather natural gas and renewables. “The grid’s operating fine without Indian Point, and we’ll have more than enough energy to compensate for its 2021 shutdown,” said Cliff Weathers of Riverkeeper — which is a party to the shutdown agreement — during a March interview.
Borgia sees [the closure] as a chance to invest in renewable energy. “It’s an economic-development opportunity.”
Any breakup is tough — especially when the entities are a sprawling metropolitan area and a 50-year-old nuclear power plant. As Westchester untangles itself from Indian Point, all the major players are keen to avoid unnecessary fallout.
“We’re doing every single thing we can think of,” explains Puglisi, the Cortlandt supervisor. “I do not want this beautiful community to ever become distressed. I’ll do everything in my power to make sure that never happens.”
What may take even longer than sorting out the economic and energy impacts is the decommissioning — that is, dismantling those hulking gray domes and the nuclear equipment and waste within — which could take decades. Still, Westchester residents are willing to look that far in the future: “It’s very important that we clean up that area and get that acreage back for future uses and environmental uses,” Puglisi says.
Riverkeeper’s Webster is equally forward-looking: “Eventually we are going to be able to restore this site. In its time, it was the technological marvel of the day, but now, technology has moved on.”
Millennials are moving more often and living in their homes for a shorter period than previous generations. The share of young adults who have lived in their current home for less than two years is nearly 12 percentage points higher than in 1960, according to a new Zillow® analysis. You might think it can be difficult to uproot your life like that, and move everything with, or have to get new things in certain cases. This generation seems fairly adept at it however. Visiting furniture sites like www.homeaccents2.com/Bedroom.html/ in order to get the necessary furniture in their new location once they have moved, along with being proficient at reestablishing basic services and all in all, showing increased adaptability and willingness to take on even drastic change.
While 33.8% of people between 25- and 34-years-old had lived in their home for less than two years in 1960, that share rose to 45.3% by 2017.
Millennials are marrying and having children later in life than their predecessors, which likely plays a role in their shorter housing tenure as these major life milestones are often catalysts for settling into a more stable housing situation, Zillow said.
According to flyttehjelp Oslo, the act of moving is stressful to say the least. Changing your address to your new address is probably one of the less stressful part of moving compared to having to pack-up an entire house. Even so, it is not something to do last minute. It’s important to make the switch of address before the move or else your mail will not follow you to your new address. Your bills, monthly subscriptions and what not will be sitting in your former home and I doubt you’d want to miss any payments.
A USPS address change is an important thing to take care before you move to a new place. When you miss important mail, it can cause many other hassles in your life. A bill may be left unpaid, a check sent to you may be lost, even greetings or presents from family and friends can get left behind in the move. Here is how you can change mailing address.
It used to be a pain to change your address with USPS. You would have to go to the post office, wait in line to get the right form, fill it out and turn it in to the clerk. It could take a half hour or more just to get this done. When you are in the process of moving, that is time that could be much better spent on other things. But now there are websites that allow you to submit your change of address online for free. The online form is simple and only takes about 2 minutes to fill out and submit.
The process is fast, safe, and secure and can even eliminate some of the problems that can occur when filling out a form by hand. Hand written forms can be difficult to read and it is possible for information to be entered incorrectly into the system. Even something as simple as 2 numbers being reversed can mean that your mail will go to the wrong place. However, by entering the information online and verifying it yourself, you help to ensure that your mail is forwarded to the right address.
The majority (53.5%) of young adults who move do so within the same metro area, perhaps to be closer to work or into a larger place as their family grows. An increasing share are moving to a different metro within the same state. Young adults today are more likely than previous generations to live in urban cores, so these could be job-related moves from college towns or rural areas into nearby cities where job growth has been concentrated in recent years. Movers Montreal are great, they are a good option to hire when you need services and the price is reasonable. These guys are packing a 20” truck, lots of soft furniture wraps, good moving experience, and definitely a great attitude. There are also long distance movers for further destinations.
“Shifting demographic headwinds and evolving workplace norms have significantly altered the housing decisions of young adults today. Untethered from family and enticed by new job opportunities, young adults are more mobile today than they have been over the past nearly 60 years,” said Sarah Mikhitarian, senior economist at Zillow. “Instead of getting married or starting a family in their early to mid-twenties as was the norm in past decades, many are waiting until they are established in their careers. And the typical career trajectory has fundamentally changed since the 1960s as well – rather than climbing a corporate ladder, many are choosing to hop from one role or function to the next, often requiring a move to a new location.”
Among the 35 largest metros in the U.S., the greatest increases in the share of young adults that had recently moved were in Boston (up 22 percentage points since 1960), Pittsburgh (up 20.9), Detroit (up 17.7) and Philadelphia (up 17.4). This is because of move in ready homes | savannah, pooler ga | bluffton sc | landmark 24 already made available. Also, this share of recently moved young adults has fallen since 1960 in four metros –Las Vegas (down 6.7 percentage points), Riverside (down 6.3), San Diego (down 3.8) and Orlando (down 1.3).
1960 – Share of Young Adults Who Had Lived in Home Less Than Two Years
2017 – Share of Young Adults Who Had Lived in Home Less Than Two Years
Growth in residential remodeling spending is expected to slow considerably by the middle of next year, according to the Leading Indicator of Remodeling Activity (LIRA) released today by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. The LIRA projects that annual gains in homeowner expenditures for improvements and repairs will shrink from 6.3 percent in the current quarter to just 0.4 percent by the second quarter of 2020.
“Declining home sales and homebuilding activity coupled with slower gains in permitting for improvement projects will put the brakes on remodeling growth over the coming year,” says Chris Herbert, Managing Director of the Joint Center for Housing Studies. “However, if falling mortgage interest rates continue to incentivize home sales, refinancing, and ultimately remodeling activity, the slowdown may soften some.”
“With the release of new benchmark data from the American Housing Survey, we’ve also lowered our projection for market size about 6 percent to $323 billion,” says Abbe Will, Associate Project Director in the Remodeling Futures Program at the Center. “Spending in 2016 and 2017 was not nearly as robust as expected, growing only 5.4 percent over these two years compared to 11.9 percent as estimated.”
More information about the newly released benchmark data and changes to the projected LIRA market size can be found here.
Click image for full-size chart.
The Leading Indicator of Remodeling Activity (LIRA) provides a short-term outlook of national home improvement and repair spending to owner-occupied homes. The indicator, measured as an annual rate-of-change of its components, is designed to project the annual rate of change in spending for the current quarter and subsequent four quarters, and is intended to help identify future turning points in the business cycle of the home improvement and repair industry. Originally developed in 2007, the LIRA was re-benchmarked in April 2016 to a broader market measure based on the biennial American Housing Survey.
The LIRA is released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University in the third week after each quarter’s closing. The next LIRA release date is October 17, 2019.
The Remodeling Futures Program, initiated by the Joint Center for Housing Studies in 1995, is a comprehensive study of the factors influencing the growth and changing characteristics of housing renovation and repair activity in the United States. The Program seeks to produce a better understanding of the home improvement industry and its relationship to the broader residential construction industry.
The Harvard Joint Center for Housing Studies advances understanding of housing issues and informs policy. Through its research, education, and public outreach programs, the Center helps leaders in government, business, and the civic sectors make decisions that effectively address the needs of cities and communities. Through graduate and executive courses, as well as fellowships and internship opportunities, the Center also trains and inspires the next generation of housing leaders.