Here's what's on our radar this week...
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The latest
Time is running out for more than a hundred people holding out at the so-called “Field of Dreams” RV camp near San Jose International Airport. City officials said they need to leave, but just extended the deadline from Friday to next Tuesday. They're also offering a cash incentive to get people out now. San Jose is paying willing owners $500 to allow the city to tow away RVs that don't run anymore. Robert Handa reports.
$117 million. That’s how much San Francisco has been awarded by the state’s Housing Accelerator Fund to invest in affordable housing units around the city. The money will help build 290 new units on Geary and Van Ness as well as in the Sunndyale area. “This funding will help us move forward these critical projects so we can get more people housed more quickly,” says Mayor London Breed. Check out the full story here.
The devastating hurricane that struck southwestern Florida this week is a stark reminder about checking your homeowner’s insurance coverage for natural disasters. And even though we weren’t affected by Hurricane Ian on the West Coast, the same advice holds true for other weather-related events, including dangerous wildfires. Here’s what you should review in your policy.
Rising rates and rising rents!
Rising mortgage rates are causing demand for Bay Area homes to drop. Zillow’s senior economist explains that the Bay Area is more sensitive to higher mortgage rates than other parts of the country. That’s leaving sellers with their homes on the market for weeks and weeks. But there is good news for buyers. Watch what it is here.
Those higher rates are leading to home prices dropping too. The average home price across the country is down about 2%, or $8,800, off its June peak of $438,000. But we all know that Bay Area prices are way higher than that. A new report says home prices are off their peaks in 97 of the 100 largest U.S. markets, but they’re still roughly 40% higher than they were before the pandemic. Read more about what’s happening with homes prices.
Here’s something renters didn’t want to hear. Rent is going to keep going up in 2023. Realtor.com’s chief economist says that rents won’t be going down anytime soon. Those higher mortgage rates are expected to keep some homebuyers still renting. See the report.
Listing of the week
Can you imagine the Instagram posts? Witches/Airbnb hosts are inviting guests to stay at a recreation of the spooky cottage from film ‘Hocus Pocus.' But you’re going to need a spell to book the stay. It only costs $31 for the night of October 20th. So there will be tons of competition. The booking opens up October 12th. Click here to see the listing.
Making it in the Bay
Relief is on the way. This week, California’s ‘Inflation Relief’ Payments are going out. The first payments are expected to hit accounts this Friday with a second around on October 28th. Payments range from $200 to $1,050. It all depends on how much you make. California created a calculator to see how much you’ll receive here.
Two Bay Area Cities top the list of the most expensive U.S. Cities based on monthly expenses. Can you guess what they are? The list from Doxo calculates expenses by adding up Mortgage/Rent, Auto loan, Utilities, Insurance, mobile phone bill, and other items. People living in San Jose pay the highest monthly bills, with an average of $3,151 or 66.8% higher than the national average of $1,889. See what the second highest city here.
Beyond the Bay Area
You think rent prices are bad here? Check out what happened to this renter back east in New York. Her Manhattan apartment was $1,881 in 2020, increased to $2,400 in 2021 and jumped another whopping $1,100 to $3,500 this year. So, what will she do? “I’m going to put my stuff in storage and go to Europe and work remotely there.” What’s going on in NYC? CNBC has insight into unique challenges facing renters.
We jump from the big apple to across the pond where mortgage mayhem is sparking fears of a housing market crash in Britain. A swathe of tax cuts announced by the government sent interest rate expectations soaring, driving up lending rates for homebuyers. If interest rates remain the same, Oxford Economics estimates that house prices will be approximately 30% overvalued. Read more from CNBC’s Money Report.
By the numbers
Our NBC Bay Area business and tech reporter Scott Budman is always keeping a close eye on the latest housing stats. Be sure to follow him on Twitter @ScottBudman for more.
Investigative series: No Man's Land
In "No Man's Land," NBC Bay Area’s Investigative Unit uncovers systemic barriers putting families in danger by denying basic services to single fathers. Our team holds public officials accountable for a complex web of anti-male biases, racism and outdated rules that often shut these fathers out of housing, child care and even emergency shelter. Watch 5 episodes available now.
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