2024 Housing Market Presents Challenges for Buyers

The housing market in 2024 has been tough for potential homebuyers. Limited housing inventory, historically high interest rates, and rising home prices have made it difficult for many to find affordable homes.

Over the past year, 30-year fixed-rate mortgages have remained between 6% and 7%. However, experts predict that mortgage rates will decline soon. According to the CME FedWatch tool, the Federal Reserve is expected to cut interest rates twice by the end of 2024, with a potential cut anticipated at the Federal Open Market Committee's meeting on September 17-18. An additional rate reduction could boost consumer confidence in the housing market.

The Rise of Co-Buying as a Strategy

Given the lack of affordability, more buyers—especially younger ones—are turning to co-buying as a solution. Recent data reveals that 26% of buyers have purchased homes with a friend or family member, while 44% cited affordability as the main motivation for co-buying.

Ryan Serhant, a real estate broker, TV personality, and CEO of SERHANT, spoke with TheStreet about how buyers are adapting to these challenges. He noted that the increased demand for homes has created an extremely competitive market, with cash offers becoming the most effective way to secure a property.

The Dominance of Cash Offers

"Cash is king," Serhant said. "Before COVID, about 30% to 35% of buyers in New York City paid in all cash, even if they refinanced later. Now, that number is around 70%." This trend extends beyond major cities, as 32% of home sales nationwide were all-cash deals as of January 2024, according to the National Realtors Association.

With nearly 29% of homebuyers being single, sharing the financial burden with a trusted partner has become an appealing strategy.

Co-Buying Gains Popularity Among Younger Buyers

Serhant explained the growing interest in co-buying among younger buyers. "If you have a lot of cash, the market favors you—albeit unfairly," he said. "But now, we're seeing younger buyers teaming up to co-purchase. Ten years ago, or even three years ago, co-buying was rare. Today, it's becoming a more common approach."

Despite a challenging market, Serhant believes that co-buying offers a path to wealth-building for younger generations. "Instead of facing rising rents—often increasing by 3% to 10% annually—two young people might decide to buy a home together," he explained.

Co-Buying as a Wealth-Building Strategy

"Homeownership has always been a pathway to wealth in the United States, and that's not going to change," Serhant added. "If buyers can pool their resources to purchase a home, they can become roommates on a property they own, rather than just renting."

With legal structures in place that facilitate co-buying, this strategy is becoming more common, even in cities like New York, where strict condo boards and regulations have historically made it challenging.

As the housing market continues to evolve, co-buying is emerging as a viable solution for those navigating high prices and limited inventory, offering a new route toward homeownership and financial stability.

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New Orleans Named Most Walkable City in the U.S. by AllClear Study

While many American cities aren't known for their walkability, New Orleans has bucked the trend, earning the title of the most walkable city in the United States. According to a recent study by travel insurance experts AllClear, New Orleans not only topped the U.S. rankings but also secured the fourth spot globally for walkability.

AllClear's study analyzed topographical information from over 240 cities around the world, assessing average elevation and range to determine each city's ease of navigation on foot. With its flat terrain and compact layout, New Orleans emerged as the best U.S. city for pedestrians, offering visitors a unique opportunity to explore its rich history and vibrant culture by foot.

A City Designed for Walkability

New Orleans owes much of its walkable charm to its early city planning. Originally designed by French military engineer Le Blond de la Tour in 1721, the city's French Quarter and Central Business District span just two miles but are packed with over 500 restaurants and nearly 100 attractions. The pedestrian-friendly streets of the French Quarter, known for their historic architecture and lively atmosphere, offer easy access to some of the city's most famous landmarks, including St. Louis Cathedral, Jackson Square, and the legendary Bourbon Street — the heart of New Orleans' famed Mardi Gras celebrations.

A Culinary Haven

New Orleans' walkability isn't the only reason to visit. The city is also renowned for its incredible cuisine, considered some of the best in the country. Whether you're craving a beignet from Café du Monde, indulging in soul food at Dooky Chase's Restaurant in the historic Tremé neighborhood, or sampling local delicacies like crawfish étouffée, po' boys, and bread pudding, New Orleans offers endless culinary delights to enjoy as you explore.

Streetcars and Accommodations

While walking is the best way to experience the city's historic neighborhoods, New Orleans' iconic streetcar system also offers a convenient and scenic way to get around. The New Orleans Regional Transit Authority operates five streetcar routes throughout the city, allowing visitors to enjoy a relaxing ride through the charming streets.

For those looking to stay in the heart of the action, the Ritz-Carlton New Orleans and the Four Seasons New Orleans offer upscale accommodations with convenient access to the streetcar lines and the French Quarter. For a quintessential Bourbon Street experience, the Royal Sonesta French Quarter provides an authentic New Orleans stay right on one of the city's most famous streets.

Global Walkability Rankings

New Orleans' high ranking in AllClear's study highlights the city's unique pedestrian experience, but it wasn't the only U.S. city to make the list. Other American cities recognized for their walkability include Miami, Sacramento, and Tampa, which all placed in the global top 20. Meanwhile, Buenos Aires was the only South American city to be featured, coming in 15th.

For a full look at the rankings and methodology behind the study, visit allcleartravel.co.uk. Whether you're visiting New Orleans for its storied history, iconic streetcars, or world-class cuisine, walking through the Crescent City is an experience not to be missed.

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Ideal Market Expands in New Orleans with a New Store on South Carrollton Avenue

Ideal Market, the New Orleans-based grocery chain known for its focus on Hispanic food brands, is continuing its local expansion with a new store planned for the corner of South Carrollton Avenue and Earhart Boulevard. The new location will occupy the site of a former Save-A-Lot grocery store, which Ideal Market's owner, Mike Kaki, purchased earlier this summer. City records also show that Kaki acquired a vacant lot behind the site from the Archdiocese of New Orleans in a separate deal. Together, the transactions totaled nearly $3.2 million.

The new store will mark the tenth location for Ideal Market, which currently operates stores throughout New Orleans and nearby cities, including Metairie, Kenner, Gretna, Gonzales, and Baton Rouge. The South Carrollton Avenue location will join another New Orleans store on South Broad Street. Additionally, Ideal Market is exploring a potential new store in Avondale as part of its growing footprint across southern Louisiana.

"We're doing incredible business on South Broad Street and feel like there is plenty of demand for another location," said Benito Castro, Ideal Market's Marketing Director. The new store will provide a full-service supermarket experience, with an estimated size of around 20,000 square feet, though Castro noted that construction is still in the early planning stages. The store is expected to open sometime next year.

A Growing Presence in the Community

Ideal Market opened its first location in New Orleans in 2000, initially catering to the city's growing Hispanic population. Over the years, it has expanded its offerings to include a broader range of merchandise while maintaining its specialty in Hispanic foods. The chain's expansion reflects the increasing demand for diverse food options in the region.

The new store will be situated at a busy intersection between the Broadmoor and Hollygrove neighborhoods, providing a fresh grocery option in an area that has few comparable offerings. While a DG Mart, a discount store specializing in fresh produce and a limited selection of meats, is located just two blocks away, Castro emphasized that Ideal Market targets a different customer base.

"We draw a wide variety of customers from all over," Castro said. "We don't compete with the discount stores per se."

Community Impact and Future Plans

The new South Carrollton location is expected to be a boon for the surrounding neighborhood, which has limited grocery store options. The additional lot Kaki purchased from the Archdiocese could potentially be used for expanded parking or another project, though Castro said it was too early to provide specific details on its future use.

Adjacent to the site, a former Catholic Bookstore building was recently purchased by a Baton Rouge dentist, who is renovating the space to open a new office. This development adds to the neighborhood's ongoing transformation, with new businesses revitalizing a once-quiet corridor.

As Ideal Market continues to expand, the chain remains committed to serving its diverse clientele and bringing accessible, high-quality grocery options to underserved areas. The new store on South Carrollton Avenue will likely play a key role in strengthening the chain's presence in New Orleans while offering a much-needed resource for local residents.

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9 Essential Home Maintenance Tips to Protect Your House from Storms, Fires, and Power Outages

Cleaning your gutters and trimming your trees may not seem like heroic tasks, but when a thunderstorm is raging outside, those mundane jobs become your home's first line of defense. Here are nine essential tips to help protect your home from disasters like water damage, power outages, and fires — all while potentially saving you money. Some of these tasks are seasonal, but all are worth keeping in mind year-round to maintain your home's resilience.

1. Clean Gutters to Prevent Water Damage

This simple, but often neglected task, can save your home from serious water damage. Clogged gutters lead to storm water overflow, which can saturate your home's foundation, attic, and walls. Make gutter cleaning a priority, and while you're at it, flush out downspouts with a garden hose to prevent clogs.

2. Protect Your Roof from Storm Damage by Trimming Trees

Tree limbs dangling over your roof pose a serious risk during storms. Heavy branches can break and cause major roof damage. Trim tree limbs to reduce their weight and ensure they are at least four feet above the roofline to prevent critters from using them as bridges to your attic.

3. Install a French Drain to Keep Storm Water Away

A French drain can help keep your home dry during heavy rains. This sloped trench, filled with gravel and a drainage pipe, diverts water away from your home. Depending on your situation, it can be a shallow fix for soggy lawns or a deeper solution to prevent water from entering your basement.

4. Prepare for a Power Outage With a Generator

Power outages, especially during extreme weather, can be more than an inconvenience. A generator, whether portable or standby, can provide vital electricity for essential appliances and help keep your home safe and comfortable. Be sure to choose one with enough wattage to support your needs.

5. Prevent Fires With Hardscaping and a Tidy Yard

Hardscaping like stone patios and pathways can act as firebreaks, while a well-maintained yard reduces the fuel for potential wildfires. Keep grass short, remove dead plants, and prune back dry branches to minimize fire hazards. A well-kept yard isn't just for curb appeal — it's also for safety.

6. Install Impact-Proof Doors and Windows

High winds can wreak havoc on your home during storms. Impact-resistant doors and windows help keep storm damage at bay by preventing wind from entering your home and causing structural damage. Bonus: they also provide added security, reduce noise, and improve energy efficiency.

7. Update Your Homeowners Insurance

Review your homeowners insurance policy annually to ensure it covers your home's full rebuilding cost in the event of a disaster. Make sure flood and storm damage are covered, and update your policy to include any recent home improvements or new features that might qualify you for discounts.

8. Check Your Fire Extinguishers

A working fire extinguisher can be a lifesaver in an emergency. Check your extinguishers regularly to ensure they're pressurized and ready for use. It's a good idea to have one on each floor of your home, with different types for different rooms, like the kitchen or garage.

9. Pick Wildfire-Wise Plants

If you live in a wildfire-prone area, your landscaping choices can make a big difference. Avoid planting flammable species like junipers, pines, and eucalyptus, and instead choose fire-resistant plants like azaleas, boxwood, and succulents, which have high water content. Keep mulch moist and opt for less flammable varieties like gravel or rock.

By following these nine home maintenance tips, you can better protect your home from the elements, prevent costly damage, and ensure peace of mind during storm season and beyond.

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Skilled Labor Shortage and Inflation Fuel Record 9% Wage Growth for Residential Building Workers in 2024

The housing industry's ongoing skilled labor shortage and the nation's lingering inflation continue to spur accelerated wage growth. Residential building workers' wage growth increased in June at its fastest year-over-year rate since December 2018, a reflection of the unique pressures the construction sector faces.

According to the U.S. Bureau of Labor Statistics (BLS), average hourly earnings for residential building workers reached $32.28 per hour in June 2024, a substantial increase from $29.62 per hour in June 2023. This marks a significant 9.0% year-over-year growth in wages, the highest recorded rate in recent years. This trend has been largely driven by a persistent shortage of skilled labor, coupled with inflationary pressures that continue to affect wages across industries.

In comparison to other sectors, residential building workers are earning competitive wages:

• 16.2% higher than the manufacturing industry, where the average hourly wage was $27.79.
• 10.6% higher than the transportation and warehousing industry, which saw an average of $29.18.
• 11.1% lower than the mining and logging industry, which reported average hourly earnings of $36.33.

While wages are rising, the demand for construction labor has shown signs of softening as elevated interest rates dampen housing demand. The number of unfilled construction jobs dropped to 295,000 in June 2024, indicating a notable shift in hiring trends. However, the industry still faces significant challenges related to the shortage of skilled labor, which remains a critical factor in the continued wage growth.

As the chart illustrates, wage growth has experienced substantial volatility over the years. The construction sector saw the lowest wage growth during the pandemic period, bottoming out at 0.3% in 2021. Since then, wages have surged, peaking again at 9.0% in 2024, reflecting the ongoing tight labor market and inflationary forces that are shaping compensation trends in the residential construction industry.

This rapid wage increase poses both challenges and opportunities for the industry. Higher wages can help attract talent, but they also contribute to rising project costs, which may be passed on to homebuyers, compounding affordability issues already heightened by higher mortgage rates. Despite these complexities, wage growth in residential construction is expected to remain robust as long as the skilled labor shortage persists.

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The Strange Dynamics of Today's Housing Market: Rising Supply, Stubborn Prices

Anyone currently shopping for a home knows that the market remains tight, with limited options for both new and existing properties. While the housing market is gradually emerging from one of its leanest periods in history, with inventory levels starting to rise, there's an unexpected twist: the supply of newly built homes appears disproportionately high compared to existing homes. Yet, despite this increase in new home availability, home prices continue to climb, defying traditional market logic where higher supply typically cools prices.

This unusual situation can be traced back to the housing market's history, particularly the subprime mortgage boom of the early 2000s, which set the stage for today's complex market dynamics. Currently, there is a 4.4-month supply of both new and existing homes available, with a six-month supply considered balanced. However, new homes now make up a larger share of the market, with a nine-month supply—nearly three times that of existing homes. This discrepancy has been driven by the aftermath of the 2008 financial crisis, shifts in mortgage rates, and the unique pressures of the Covid-19 pandemic, which saw unprecedented demand and record-low mortgage rates. As a result, while supply has increased, particularly in the new home sector, prices remain high due to the ongoing imbalance between supply and demand, further exacerbated by economic uncertainties and the fluctuating mortgage landscape.

Mortgage Rate Volatility and Its Impact on Housing Supply

The current divide in the housing market between newly built and existing homes can largely be attributed to the roller-coaster ride of mortgage rates over the past few years. The pandemic saw rates drop to historic lows, spurring a surge in home purchases and refinancing, which in turn locked many homeowners into low rates. Now, with mortgage rates hovering around 7%, those who locked in lower rates are reluctant to sell, leading to a scarcity of existing home listings. This "lock-in effect" has shifted demand toward new homes, where builders are capitalizing by offering incentives such as mortgage rate buy-downs to attract buyers.

Interestingly, while resale listings have improved slightly, with active listings up 16.5% from the previous year, much of this is due to homes staying on the market longer. The most significant shortages are in the mid-to-lower price tiers, where demand is highest, particularly for homes priced between $100,000 and $500,000. Despite an increase in supply in these tiers, it remains insufficient to meet demand, keeping prices high. In contrast, the luxury market, with homes priced above $1 million, is experiencing a slower supply growth and less price pressure.

As we move through 2024, analysts anticipate that mortgage rates may decrease, potentially easing some of the supply constraints. However, if rates do drop, demand is likely to surge again, putting additional pressure on the already strained supply and keeping prices elevated. While inventory is expected to continue rising, particularly as the lock-in effect wanes, the current dynamics suggest that home prices may remain stubbornly high, especially in markets with low inventory and strong demand. The housing market remains in a delicate balance, with future price movements dependent on the interplay of mortgage rates, supply, and demand.

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Early Development Sparks Economic Optimism on the West Bank

A new project in its early stages is already generating optimism for a potential wave of economic growth on the West Bank, an area where past predictions of development following the expansion of the Huey P. Long Bridge have yet to be realized. The project, spearheaded by Atmos, one of the nation's largest natural gas distributors, is seen as a catalyst for future growth, offering a promising outlook for the region.

At a recent Parish Council meeting, local officials expressed hope that the project would attract additional investments and spur further development in the area. "It's going to, I believe, create a myriad of opportunities for others to come to that area," said Councilmember Lee.

Atmos confirmed in an emailed statement that they are in the "initial planning stages" of the project and will provide more details as plans are finalized. The utility company, which already has offices in Marrero, Metairie, and Meraux, is eyeing property in the 1500 block of Nine Mile Point Road for development. The Parish Council recently approved an ordinance to reconfigure the property's boundaries, making it more conducive to development.

The potential for economic growth in Nine Mile Point, Bridge City, and the surrounding areas has been a topic of discussion since the Huey P. Long Bridge's expansion in 2013. However, a lack of sewer and water infrastructure has hindered significant development, according to Jerry Bologna, CEO of the Jefferson Parish Economic Development Corporation (JEDCO). To address this, Atmos is partnering with a developer to install the necessary infrastructure on the property, which could pave the way for further development on adjacent sites. While the developer under contract for the property has not been named due to a non-disclosure agreement, the project's impact is already anticipated to be significant.

Councilmember Lee revealed that Atmos plans to construct a $20 million "multi-purpose building" on the site, which will include both warehouse and office space. Bologna noted that as Elmwood, located on the opposite side of the Huey P. Long Bridge, transitions more toward commercial and retail uses, companies involved in warehousing and logistics might consider relocating to the West Bank.

Mike Sherman, an attorney representing the property's owners—Marsh Investment Corporation, Marco Inc., and Mullen Properties LLC—expressed his clients' commitment to driving economic development in the area. "We hope this is only the first of many projects," Sherman said, highlighting the broader vision for revitalizing the West Bank.

As this project progresses, local leaders and developers alike are hopeful that it will mark the beginning of a new era of growth and opportunity for the West Bank, fulfilling long-held aspirations for the region.

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