Euro-Zone Inflation Holds at 2%, Backing ECB Caution on Rates
Consumer prices rose an annual 2% in July, the same pace as in the previous month, Eurostat said Friday. Economists polled by Bloomberg had expected a slowdown to 1.9%.
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Housing Crisis 2025: Why Rental Shortages Could Spike Your Living Costs
According to a report by the National Low Income Housing Coalition, the U.S. has a shortage of 7.1 million rental units. Be Aware: Find Out: That supply shortage has driven enormous rent spikes in recent years, with Consumer Affairs reporting that nationwide rents surged 23.4% between 2020 and 2022 alone. While rent growth has slowed over the last two years, it continues to drive up the cost of living in many cities. Housing Disproportionately Drives Inflation The Bureau of Labor Statistics combines the costs of many goods and services to calculate its consumer price index (CPI) inflation figure. But it weights those costs differently — and housing makes up about 35.5% of the total inflation rate. So even if other costs, such as groceries, were going down in price (which they're not), fast rent growth could still cause high inflation rates. Check Out: Interest Rates Remaining Higher for Longer The Federal Reserve started cutting interest rates in the second half of 2024, feeling confident that inflation was slowing. But the sudden appearance of tariffs caused it to fear heating inflation once again, and it's paused rate cuts to see how the economy responds to new tariffs. 'Since housing is a big part of the CPI, persistently high rents are keeping inflation stubbornly high,' explained Yancy Forsythe, founder of Missouri Valley Homes. 'That makes it harder for policymakers to ease rates.' Higher interest rates make it more expensive for consumers to borrow and buy, and for businesses to borrow and expand by hiring. It puts a brake on the economy for both businesses and consumers. Uneven Housing Shortages Some cities have a surplus of rental housing. Austin, Texas, for example, has a high multifamily vacancy rate of 9.6%, according to Apartment List. Others have dire shortages. Perennially difficult San Francisco has a vacancy rate of just 3.8%. 'With a rental vacancy rate of just 0.6% (a fraction of the 5% considered healthy), we're facing a critical shortfall of 23,500 units right now. This scarcity doesn't just hurt families — it puts pressure on wages, fuels inflation, and distorts our whole economy,' said Carla Gericke, who works as a real estate agent at Porcupine Real Estate in New Hampshire. Even within individual cities, some neighborhoods have housing shortages while others have plenty of units available. A July study by Moody's Analytics found that most of the housing shortage appears in the lower- and middle-income neighborhoods, with housing surpluses in higher-income districts. Red Tape for New Housing Why do some cities have plenty of housing, while others continually struggle with affordability and availability? Cities with abundant housing, such as Austin, Phoenix (7.9% multifamily vacancy rate) and Dallas (8.2%), encourage the construction of new housing supply. Other cities limit zoning of higher-density housing, and layer on regulations and fees that deter new housing development. 'The tightest rental markets right now are in coastal and high-income metros like San Francisco, Seattle, Boston, and San Diego where the supply constraints, zoning restrictions and booming demand have created rent spikes and ultra low vacancy rates,' Forsythe said. 'In San Francisco for example, rents rose by more than 11% year-over-year, while rental vacancy rates have dropped to half the national average.' Affordable housing shortages will likely keep fueling inflation, slowing interest rate cuts and pinching lower-income families until there's more of it. More From GOBankingRates 6 Big Shakeups Coming to Social Security in 2025 This article originally appeared on Housing Crisis 2025: Why Rental Shortages Could Spike Your Living Costs
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Net Lease Office Properties Declares Special Cash Distribution of $3.10 Per Share
NEW YORK, Aug. 6, 2025 /PRNewswire/ -- Net Lease Office Properties (NYSE: NLOP) reported today that its Board of Trustees has declared a special cash distribution of $3.10 per common share, totaling approximately $45.9 million. The distribution is payable on September 3, 2025 to shareholders of record as of the close of business on August 18, 2025. For additional information on NLOP — including an investor presentation outlining its strategy and progress to date, its latest quarterly report on Form 10-Q and related filings — please visit the company's website. Net Lease Office Properties Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust that owns a portfolio of high-quality office properties primarily leased to corporate tenants on a single-tenant net lease basis. Tenants operate across a variety of industries and the vast majority of properties are located in the U.S., with one property located in Europe. Institutional Investors: 1-212-492-1140institutionalir@ Individual Investors: 1-844-NLO REIT (656-7348)ir@ Press Contact:Anna McGrath1-212-492-1166 View original content to download multimedia: SOURCE Net Lease Office Properties Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
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Fed's Daly: Fed will likely need to lower rates in coming months as job market has slowed
San Francisco Federal Reserve president Mary Daly said Wednesday that the Federal Reserve will likely need to lower rates in the coming months, noting that while tariffs will boost inflation in the near term, the job market has slowed. "The labor market has softened. And I would see additional slowing as unwelcome, especially since we know that once the labor market stumbles, it tends to fall quickly and hard," Daly said in a speech in Alaska. "All this means that we will likely need to adjust policy in the coming months." Daly said at the same time tariffs will boost inflation in the near term, but "likely not in a persistent way that monetary policy would need to offset." Daly's comments come after a government report showed the US economy added just 73,000 jobs in July, while the unemployment rate moved up to 4.2% from 4.1% the month prior. At the same time, the two prior months saw downward revisions. May's job gains were revised down to 19,000 from 144,000, while June's additions were cut to just 14,000 from the 147,000 initially reported. That pulled the three-month average employment gain down to 35,000 — a figure many analysts are interpreting as a sign that hiring is stalling, even as population growth slows. Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments Daly noted that inflation, absent tariffs, has been gradually trending down and that with a slowing economy and ongoing "restrictive monetary policy, should continue to do so." Daly's comments come after Fed Chair Jay Powell said last week during his press conference following the Fed's policy meeting that no decision has been made on whether to cut rates in September and that more time is needed to assess how Trump's tariffs will affect the path of inflation and the strength of the US economy. He told reporters there is still "a long way to go" to determine exactly the impact of tariffs, and "you have to think of this as still quite early days." Meanwhile, FOMC vice chair and New York Fed president John Williams said he still thinks the job market is in "solid" shape but added that the downward revisions in jobs created in July were unsettling. At the same time, Fed governors Chris Waller and Michelle Bowman dissented at last week's policy meeting, preferring to cut rates by 25 basis points rather than hold rates steady. Both are more concerned about the job market than the impact of tariffs on inflation. "We don't have perfect clarity," Daly said. "But the truth is central banks rarely have perfect clarity, and we can't wait for it to act."Jennifer Schonberger is a veteran financial journalist covering markets, the economy, and investing. At Yahoo Finance she covers the Federal Reserve, Congress, the White House, the Treasury, the SEC, the economy, cryptocurrencies, and the intersection of Washington policy with finance. Follow her on X @Jenniferisms and on Instagram. Sign in to access your portfolio
