B4 • Friday, August 4, 2023
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THE GARDEN ISLAND
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Julie Black, Principal Broker & Owner (808) 652-6174 with daughter Kela Caspillo, Realtor Broker (808) 652-6173 kauaidreams.com
Featured CITIES HIT HARDEST BY HOUSING CRISIS Homes Rachael Westgate WEALTH OF GEEKS
Lihue
3117 Umi Street A 3 bedroom, 2 bath home with a 2 car garage conveniently located on a larger sized lot in Lihue, within walking distance to restaurants, library, county & state buildings, Wilcox school, shopping and more. Features include a large laundry room, vaulted ceilings and a newer roof. Breathtaking views of Mt. Waialeale. MLS # 670345; $1,200,000. Call Julie Black, RB-14203 (808) 652-6174 Kauai Dreams Realty, to see this property.
Nearly three-quarters of all families in the United States cannot afford to buy a new single-family home at the nationwide median price of $426,000. Of course, many U.S. cities deal with home prices far in excess of that halfway point. New York and San Francisco are cities known for their abundant job markets and metropolitan populations. They’re also included on the list of the country’s two most challenging housing markets. In the current economic climate, additional financial pressure on housing pushes some working Americans out of the cities, regardless of their employment status. A recent study by Portland Real Estate analyzes data from the National Association of Realtors, the U.S. Census Bureau, and the Bureau of Labor Statistics to assess the ratio of new job openings per building permit to gauge the housing shortages in metropolitan areas.
JEFF CHIU / ASSOCIATED PRESS FILE
Homes are shown in San Francisco on April 26, 2023. The White House has announced a series of measures it said would reduce the cost and increase the supply of housing while bolstering protection for renters. The measures announced on July 27, 2023, would provide communities with funding to reduce zoning barriers, expand financing for affordable and energy efficient housing. ily translate to affordability in other regions. With continued housing inventory issues across the country, landing a better job may not be the ticket into the housing market. Where are the U.S. hotspots for limited housing inventory? Likely different from where you’d expect.
pushing housing prices up and making it more and more difficult for residents to secure affordable housing. San Francisco takes second place, with a ratio of 29.2, which is another example of a growing job market outpacing residential construction in the city. Springfield, Massachusetts, secures the third-place ranking with Cities with highest job a ratio of 26.6 new jobs per buildgrowth to building ing permit, reflecting similar conpermit ratios cerns to its first and New York City claims the top second-ranking counterparts. slot as the city with the highest In fourth place, urban Honolulu ratio, at 31.4 jobs created for evscores a ratio of 25.1, and Syraery building permit. Despite an cuse, New York, comes in fifth abundant job market, this dewith a ratio of 21.8. The other U.S. metropolitan arnotes a severe housing shortage in the city. A surge in new job ofeas featured in the top 10 list infers increases demand for rentals, clude Boston, with a score of
Beyond building permits The Portland Real Estate study ranked cities based on a ratio of job growth to building permits to illustrate the imbalance between the number of individuals the area is looking to recruit for employment versus available homes. The study focuses on the number of new jobs for every single building permit issued. Job markets in some areas of the country may be bouncing back from the layoffs of recent years, but that doesn’t necessar-
20.4; Miami, scoring 20.2, Chicago, at 19.5; New Haven, Connecticut with 19.3, and Los Angeles, with a ratio of 18.3. These high-ranking cities compare to a nationwide average among all cities of 7.64 jobs per building permit. Among the top 10 ranking cities, three states rank more than once: there are two cities from Massachusetts, two in New York, and two in California. Each of these states boasts strong job markets and high metropolitan population sizes. The geographic spread of top ranking cities is also worth noting, with 50 percent of the top ten located on the East Coast, while 20 percent are on the West Coast, and the remainder spread across the country. What house hunters can expect While it’s hard to predict with any certainty what’s to come for the housing market, rising interest rates and subsequent mortgage rates continue to put pressure on folks looking to purchase in the coming months. Renters in cities with a high ratio of jobs to building permits may continue to encounter stiff competition when applying for housing and inflated rates to account for demand. Keeping an eye on the Federal Reserve’s interest rate announcements will provide valuable insights into affordability forecasts for the remainder of 2023. ••• This article was produced by Media Decision and syndicated by Wealth of Geeks.
Hawaiiana Management Company, Ltd. Serving Kauai’s Condo & Community Associations with award-winning service
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30-year, fixed home loan rate climbs to 6.90 percent
awaiiana currently serves over 60 residential and commercial associations on the Island of Kauai. Kauai native Sunshine Ruiz Hatto serves as Hawaiiana’s Vice President of Kauai Operations from its office at the Kukui Grove Executive Center in Lihue.
ASSOCIATED PRESS WASHINGTON — The average long-term U.S. mortgage rate rose again this week, bad news for Americans seeking to upgrade or buy their first home. The average rate on the 30year home mortgage rate ticked up to 6.90 percent this week from 6.81 percent a week ago. A year ago, the benchmark home loan rate stood at 4.99 percent, mortgage buyer Freddie Mac reported Thursday. The average rate on 15-year fixed-rate mortgages, popular with those refinancing their homes, climbed to 6.25 percent from 6.11 percent last week. A year ago, it was 4.26 percent. High rates can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already overpriced for many Americans. High inflation has driven the Federal Reserve to raise its benchmark interest rate 11 times since March 2022. Its fed funds rate has hit the highest level in 22 years. Inflation has come down steadily since last summer, and many analysts believe the Fed has reached the end of its rate hikes. 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. The average rate on a 30-year mortgage remains more than double what it was two years ago, when ultra-low rates spurred a wave of home sales and refinancing.
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Sunshine Ruiz Hatto Vice President Kauai Operations
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Hawaiiana’s Kauai Properties: Alihi Lani Alii Kai at Hanalei Alii Kai II Aliomanu Estates Apopo Hale Emmalani Court Halaulani Condominium Hale Honu Halelani Village at Puhi Halemalu at Puhi Hanalei Bay Villas Hooluana Condo at Kohea Loa Hookena at Puhi Kahala at Poipu Kai Ka‘iulani of Princeville Kakela Makai Oceanview Kalaheo Pali Kai Kalihiwai Ridge Kamahana Kauai Beach Resort
Kauai Beach Resort Association Kawaihau Sports Villa K.G. Enterprises Condominium Kiahuna Plantation AOBO Kohea Loa Master Association Koloa Garden Apartments Kuhio Shores at Poipu Kukui‘ula Kulana Lae Nani Lihue Townhouse Makanui Manualoha Marriott’s Kauai Resort and Beach Club AOAO Nawiliwili Estates Paradise Court Pali Ke Kua Paliuli Pikake
Pili Mai at Poipu Plantation at Princeville Poipu Crater Poipu Kai Association Poipu Kai Racquet Club Poipu Kai Water Reclamation Poipu Kapili Poipu Sands Princeville II Community Association Princeville II Community Association - Queen Emma Bluff Princeville Makai Ranch at Halele‘a Princeville Paniolo
Princeville Sealodge I Puamana Puhi Industrial Park Pu‘u Po‘a Regency at Poipu Kai Regency Hule‘ia Regency Villas at Poipu Kai Sandpiper Village I The Villas at Poipu Kai Villas at Puali Villas of Kamali’i Villas on the Prince Waikomo Stream Villas Wailua Bay View Waipouli Beach Resort
For more information about Hawaiiana’s services, contact Sunshine Ruiz Hatto at 792-0515 or email sunshine@hmcmgt.com.