Latest news with #DanielleHale
Newsweek
5 days ago
- Business
- Newsweek
Could the Recession Shift Housing Sales? What to Know
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Rising concerns over a possible recession have prompted many Americans to question how such an economic downturn could reshape the U.S. housing market. A new report found that nearly 30 percent of prospective homebuyers believe a recession could make them more likely to purchase a property. Experts have noted that recessions have historically led to shifts in housing sales, prices, and mortgage rates. Whether these changes benefit buyers or strain current homeowners remains to be seen. Why It Matters A potential 2025 recession could impact Americans facing inflation, leading to volatile interest rates and widespread economic uncertainty. A recession has the potential to lower home prices and mortgage rates, offering discounted buying opportunities. However, broad economic impacts could challenge financial stability for homeowners and reshape the real estate landscape. Understanding who stands to gain or lose—and why—could help buyers, sellers, and policymakers navigate upcoming changes in the U.S. housing market. What To Know Past recessions have generally led to reduced demand in the housing sector, slowing sales and, in several cases, causing prices to dip. During downturns, consumer confidence declines, leading to fewer major purchases. Sellers may respond by lowering expectations, potentially giving buyers more negotiating power. A For Sale sign outside a multimillion dollar residential home in Reno, Nevada, on May 6, 2024. A For Sale sign outside a multimillion dollar residential home in Reno, Nevada, on May 6, 2024. ROBYN BECK/AFP via Getty Images Danielle Hale, chief economist at previously told Newsweek the market's reaction varies; while the 2020 recession saw a quick rebound, the 2007–2009 financial crisis led to steep price drops and a lengthy recovery. She said that if a recession emerges in 2025, existing home sales might not fall much further, but greater financial challenges for homeowners could increase supply and soften prices. Potential for Buyer Incentives Amid Falling Mortgage Rates In response to economic slowdowns, the Federal Reserve typically lowers interest rates to stimulate economic activity, which often results in decreased mortgage rates. This can make home loans more affordable, increasing buyers' purchasing power. Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, previously told Newsweek that mortgage rates generally decline during recessions, noting that the rate of decline hinges on the severity of the downturn. Survey: Buyers See Opportunity in a Recession The site visitor survey from the first quarter of 2025 found nearly 30 percent of surveyed homebuyers said a recession would make them more likely to purchase a home. Lower prices and more flexible sellers appear to be key factors driving this sentiment, according to the survey's findings. Whether the U.S. will enter a recession in 2025 remains a matter of debate. Some economic indicators, such as slowing retail sales and policy uncertainty—including impacts from tariffs—suggest a possible downturn, while other measures indicate ongoing resilience. The national median sale price for a home reached $438,357 in April, according to Redfin data. However, regions such as West Virginia, Ohio, and Michigan continue to offer lower median home prices, with West Virginia at $249,000 as of December 2024, according to This contrast presents options for buyers seeking affordability versus those facing higher costs in other states. What People Are Saying Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "Some buyers could be associating a recession with opportunity, as prior recessions have produced declining home prices. However, it's difficult to say if a potential one in this economic environment would produce some of the dramatic declines we've seen in the past. "Inventory remains low in some locations, and with prices and interest rates hovering around all-time highs, there's not as much incentive to sell and relocate unless you have to. The unfortunate reality is while you may see some minor dips in prices, there's housing market will more than likely remain unchanged." Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek: "For those who believe their careers are relatively recession-proof and who have already been home shopping or waiting on the sidelines for the right time, a home purchase may feel like the right move. While the stock and interest rate markets may decline during a recession, a bright spot may appear in home buying: there may be fewer bidding wars, there may be more motivated sellers, and holding a hard asset like real estate may feel like a better place to put your money at that time." Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "In a recession, we'd likely see downward pressure on home prices. As more homeowners fall behind on their mortgages, some will be forced to sell or face eviction. That brings supply back onto the market, which usually leads to declining prices." What Happens Next Market participants are monitoring Federal Reserve policy moves, employment data, and inflation numbers for indications of a possible 2025 recession. "Right now there are many homebuyers with moderately strong cash positions who have been outbid by someone with deeper pockets. That bidding war may not happen during a recession, and even the playing field for everyone," Powers said. Any sustained changes in interest rates, employment trends, or housing supply could rapidly reshape buying and selling conditions in the coming months. "Recessions can reset overheated markets. If inflation cools and the Fed lowers interest rates, that could open the door for buyers who've been priced out," Thompson said. "Lower prices plus a potential drop in mortgage rates, even a modest one, could improve affordability." Americans should anticipate a recession potentially in the next quarter, Thompson said, which could translate to changes in the housing market. "The wild card is tariffs," Thompson said. "While tariffs could raise the cost of materials and construction, Trump's unpredictable trade policies have many unsure how much impact they'll really have on housing."
The Hill
6 days ago
- Business
- The Hill
Top 10 cities for recent college grads in 2025
The job market is tough for recent college grads, but cities like Austin, Texas and Raleigh, N.C., still offer a promising mix of affordability and opportunity, a new report shows. analyzed more than 300 cities and towns to find the most 'grad-friendly' rental markets in 2025, weighing factors like housing affordability, rental availability and job opportunities. Austin topped the list for the second year in a row thanks to its low rent-to-income ratio (18.9 percent) and high share of jobs (29.4 percent) that require a bachelor's degree but no prior experience. Raleigh and Overland Park, Kan., ranked second and third, followed by Minneapolis and St. Louis. 'These markets aren't just affordable areas with relatively more abundant rental options, they're full of energy, opportunity, and a sense of community, everything a recent grad could want,' Danielle Hale, chief economist at said in a statement. On average, graduates in the top 10 markets spend just 21.5 percent of their income on rent, well below the commonly accepted 30 percent affordability benchmark. This year's top cities also have a lower average unemployment rate (3.8 percent) compared to the 50 largest metros (4.1 percent). Cost of living and job opportunities will likely be top priorities for the Class of 2025, which is entering the rockiest job market since 2021. Here's top 10 list for 2025 along with some of the key metrics the report considered. Atmosphere during weekend one, day one of the 2024 Austin City Limits Music Festival at Zilker Park on Oct. 4, 2024 in Austin, Texas. (Photo by) Median Rent: $1,504 Rent-to-Income Ratio: 18.9 percent Rental Vacancy Rate: 8.2 percent College Grad Friendly Occupations: 29.4 percent Forecasted unemployment rate: 3.6 percent Raleigh's downtown skyline is seen from The Dillion's ninth floor lobby terrace open to the public January 02, 2019 in Raleigh, NC. The convention center's Shimmer Wall is seen at the far right. (Photo by Katherine Frey/The Washington Post via Getty Images) Median Rent: $1,524 Rent-to-Income Ratio: 20.0 percent Rental Vacancy Rate: 9.0 percent College Grad Friendly Occupations: 30.4 percent Forecasted unemployment rate: 3.3 percent Kansas, Overland Park, Museum at Prairiefire. (Photo by: Bernard P. Friel/Universal Images Group via Getty Images) Median Rent: $1,351 Rent-to-Income Ratio: 20.6 percent Rental Vacancy Rate: 9.2 percent College Grad Friendly Occupations: 25.5 percent Forecasted unemployment rate: 4.2 percent Minneapolis skyline showing the Mississippi river and U.S. Bank Stadium in the fall. (Photo by: Michael Siluk/UCG/Universal Images Group via Getty Images) Median Rent: $1,528 Rent-to-Income Ratio: 19.7 percent Rental Vacancy Rate: 5.2 percent College Grad Friendly Occupations: 27.3 percent Forecasted unemployment rate: 3.7 percent A general view of the St Louis Gateway Arch, skyline and the Budweiser sign during the fifth inning between the St. Louis Cardinals and the Miami Marlins at Busch Stadium on July 18, 2023, in St. Louis, Missouri. (Photo by Brandon Sloter/Image) Median Rent: $1,335 Rent-to-Income Ratio: 20.8 percent Rental Vacancy Rate: 8.0 percent College Grad Friendly Occupations: 25.1 percent Forecasted unemployment rate: 4.0 percent Sunset view on James River of historic southern Richmond, Virginia. (Photo by: Joe Sohm/Visions of America/UCG/Universal Images Group via Getty Images) Median Rent: $1,502 Rent-to-Income Ratio: 23.2 percent Rental Vacancy Rate: 8.2 percent College Grad Friendly Occupations: 25.3 percent Forecasted unemployment rate: 3.3 percent The skyline of Pittsburgh is framed by couple walking through a park on the Northside on Wednesday, June 26, 2019. (AP Photo/Gene J. Puskar) Median Rent: $1,461 Rent-to-Income Ratio: 22.3 percent Rental Vacancy Rate: 8.7 percent College Grad Friendly Occupations: 24.3 percent Forecasted unemployment rate: 4.1 percent People ride electric scooters through the old town area on Tuesday November 19, 2024, in Scottsdale, Ariz.. Maricopa County continues to be one of the fastest growing areas in the country. (Photo by Matt McClain/The Washington Post via Getty Images) Median Rent: $1,530 Rent-to-Income Ratio: 22.5 percent Rental Vacancy Rate: 7.9 percent College Grad Friendly Occupations: 23.0 percent Forecasted unemployment rate: 3.7 percent The University of Texas at Dallas in Richardson, Texas (Credit: University of Texas at Dallas) Median Rent: $1,472 Rent-to-Income Ratio: 22.4 percent Rental Vacancy Rate: 8.9 percent College Grad Friendly Occupations: 24.4 percent Forecasted unemployment rate: 4.0 percent View of Atlanta Skyline (Getty Images) Median Rent: $1,604 Rent-to-Income Ratio: 24.1 percent Rental Vacancy Rate: 9.3 percent College Grad Friendly Occupations: 24.7 percent Forecasted unemployment rate: 4.1 percent For more on methodology, read here.
Yahoo
6 days ago
- Business
- Yahoo
Top 10 cities for recent college grads in 2025
(NewsNation) — The job market is tough for recent college grads, but cities like Austin and Raleigh still offer a promising mix of affordability and opportunity, a new report shows. analyzed more than 300 cities and towns to find the most 'grad-friendly' rental markets in 2025, weighing factors like housing affordability, rental availability and job opportunities. Austin, Texas, topped the list for the second year in a row thanks to its low rent-to-income ratio (18.9%) and high share of jobs (29.4%) that require a bachelor's degree but no prior experience. Recent college grads face toughest job market in years Raleigh, North Carolina, and Overland Park, Kansas, ranked second and third, followed by Minneapolis, Minnesota, and St. Louis, Missouri. 'These markets aren't just affordable areas with relatively more abundant rental options, they're full of energy, opportunity, and a sense of community, everything a recent grad could want,' Danielle Hale, chief economist at said in a statement. On average, graduates in the top 10 markets spend just 21.5% of their income on rent, well below the commonly accepted 30% affordability benchmark. This year's top cities also have a lower average unemployment rate (3.8%) compared to the 50 largest metros (4.1%). Cost of living and job opportunities will likely be top priorities for the Class of 2025, which is entering the rockiest job market since 2021. Here's top 10 list for 2025 along with some of the key metrics the report considered. Median Rent: $1,504 Rent-to-Income Ratio: 18.9% Rental Vacancy Rate: 8.2% College Grad Friendly Occupations: 29.4% Forecasted unemployment rate: 3.6% Median Rent: $1,524 Rent-to-Income Ratio: 20.0% Rental Vacancy Rate: 9.0% College Grad Friendly Occupations: 30.4% Forecasted unemployment rate: 3.3% Median Rent: $1,351 Rent-to-Income Ratio: 20.6% Rental Vacancy Rate: 9.2% College Grad Friendly Occupations: 25.5% Forecasted unemployment rate: 4.2% Median Rent: $1,528 Rent-to-Income Ratio: 19.7% Rental Vacancy Rate: 5.2% College Grad Friendly Occupations: 27.3% Forecasted unemployment rate: 3.7% Which cities were ranked happiest in the world? Median Rent: $1,335 Rent-to-Income Ratio: 20.8% Rental Vacancy Rate: 8.0% College Grad Friendly Occupations: 25.1% Forecasted unemployment rate: 4.0% Median Rent: $1,502 Rent-to-Income Ratio: 23.2% Rental Vacancy Rate: 8.2% College Grad Friendly Occupations: 25.3% Forecasted unemployment rate: 3.3% Median Rent: $1,461 Rent-to-Income Ratio: 22.3% Rental Vacancy Rate: 8.7% College Grad Friendly Occupations: 24.3% Forecasted unemployment rate: 4.1% Median Rent: $1,530 Rent-to-Income Ratio: 22.5% Rental Vacancy Rate: 7.9% College Grad Friendly Occupations: 23.0% Forecasted unemployment rate: 3.7% Median Rent: $1,472 Rent-to-Income Ratio: 22.4% Rental Vacancy Rate: 8.9% College Grad Friendly Occupations: 24.4% Forecasted unemployment rate: 4.0% Median Rent: $1,604 Rent-to-Income Ratio: 24.1% Rental Vacancy Rate: 9.3% College Grad Friendly Occupations: 24.7% Forecasted unemployment rate: 4.1% For more on methodology, read here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
6 days ago
- Business
- Yahoo
These cities are prime areas to rent for recent college graduates
Many college graduates are figuring out where to live as they finish their time in academia, and renting is a common route for them to take. In its newly released "Top Rental Markets for Recent College Grads" report, looked at more than 300 places across the U.S., identifying the most "grad-friendly" cities that could serve them best as they embark on the newest chapter in their lives. The real estate marketplace took information such as the rent-to-income ratio, the time it takes to get to work, social amenities and projected unemployment rates into account when doing the formulation. These States See The Most All-cash Home Purchases These are cities at the top of ranking of rental markets for recent college graduates. Austin's rent-to-income ratio and proportion of entry-level jobs that grads could land, 18.9% and 29.4%, respectively, helped it earn the No. 1 spot, the report said. The city also held the position last year. Read On The Fox Business App More than 30% of jobs in the Raleigh area require a bachelor's degree but no previous experience, more than any other city, according to The city is the capital of the Tar Heel State. Overland Park is located just south of Kansas City. It boasts a rental vacancy rate of 9.2%, per the report. The average time it takes to get to work there was also comparatively low, at 22 minutes. pegged Minneapolis' share of recent college graduates – people aged 25 to 29 with a college degree – at 6.3%, higher than any of the other states in the top 10. People in the city typically use 19.7% of their income on rent. St. Louis, famous for its Gateway Arch, has seen its number of job openings rise 14% compared to the pre-COVID era, reported, citing the Indeed Hiring Index. The area has 8% of its rentable housing available for occupancy. Behind those markets, dubbed Richmond, Virginia, as No. 6, Pittsburgh as No. 7, Scottsdale, Arizona, as No. 8, Richardson, Texas, as No. 9 and Atlanta as No. 10 for college graduates. Looking To Purchase A Home And Live In These Areas? They Require The Highest Income "This year's rankings reflect a rental landscape shaped by falling rents and potentially shifting job markets," chief economist Danielle Hale said in a statement. "These markets aren't just affordable areas with relatively more abundant rental options, they're full of energy, opportunity, and a sense of community, everything a recent grad could want." Median rent cost $1,699 nationwide in April, according to a separate mid-May report from Studios, one-bedroom and two-bedroom units all saw the median cost of rent go down year over year last month, with studios and one-bedrooms posting a 1.9% decline; for two-bedrooms, the drop was 1.7%. America's Housing Crisis: Ceo Says There Is A Way To Solve ItOriginal article source: These cities are prime areas to rent for recent college graduates
Yahoo
24-05-2025
- Business
- Yahoo
Actually, A Recession Might Be A Win For Homebuyers
More than 60% of respondents to a survey said they see a recession on the horizon, and nearly 30% said that an economic downturn could present a homebuying opportunity. A recession could mean lower mortgage rates and fewer competitive bidders, the report said. Potential buyers saw several obstacles to a home purchase, including limited inventory and credit qualifications. But a majority said a recession wouldn't deter their efforts to buy a than half of homebuyers are worried that a recession is on the horizon. But for some, an economic downturn could be the perfect homebuying opportunity. About than 60% of potential homebuyers in quarterly survey said they see a recession coming within the year. However, nearly 30% of them think an economic downturn would make it easier for them to buy a home. 'While concerns are definitely present, some buyers anticipate that a downturn can bring opportunity,' said Danielle Hale, chief economist at They see key homebuying incentives during a recession, including mortgage rates that are likely to be lower than current levels, as well as less competition from other buyers. The survey showed that homebuyers are often more concerned about their own financial situation than the overall economic conditions. More than 54% said that a recession would not impact their homebuying decisions, while only 15% said an economic downturn would deter them from purchasing a home. 'Well-prepared buyers who have been waiting on the sidelines are likely motivated by personal and lifestyle needs like growing families, new jobs, or retirements," Hale said. "And these considerations can outweigh short-term economic uncertainties,' While a worsening economy could create challenges, the survey showed that potential buyers are already having a difficult time under current economic conditions. They said the biggest obstacle was the limited number of available properties to choose from—44% cited limited inventory as a major concern. Available home listings have improved recently, but they were still more than 16% below the historical average. Budgetary constraints were a top concern for 36% of buyers, while others said credit availability and mortgage qualifications were big challenges. However, many homebuyers didn't mention competition from other buyers. Only about 8% said that tough bidding was hurting their homebuying efforts. 'This trend aligns with increased time on market, a moderate rise in listings, and more stable pricing; all of which point to a slower, less stressful home search experience,' the report said. Read the original article on Investopedia
