Short Term Rentals

More than 2,270 new hotels, motels, inns and bed-and-breakfasts were added over the past 3 years, bringing the number of properties in the USA to nearly 55,900, according to a report on the industry’s economic impact that was conducted by Oxford Economics. Although the number of guest rooms rose to 5.3 million (not counting Airbnb, VRBO and other short-term rentals), there was a 66% occupancy rate — the highest since at least 2005, as far back as the survey looked. (NY TIMES)

Wellness

Consumers around the world already spend $3.7 trillion (or 5 percent of global GDP in 2015) on various forms of wellness, from yoga, meditation apps, spin classes, and sleep monitors to juicers, vitamins, organic food, athletic wear, and more. Wellness real estate is valued globally at around $134 billion. (DEPARTURES)

Football season has begun! The weather should only get cooler from here, folks. If you happen to be a UT fan, here is the Longhorn schedule:

Housing Revolution

James Ehrlich is spearheading the development of ReGen Villages, an innovative, off-the-grid residential concept with a pilot community set to break ground next spring in Almere, Netherlands, about 25 minutes east of Amsterdam. 203 energy-positive homes will be constructed of “healthy” materials, including wood and glass, and will provide easy access to pedestrian walkways, bike trails, and water for canoeing and kayaking, as well as yoga studios. 

A Village Operating System will gather data that houses will use to learn residents’ habits, providing them with things like gradual amber lighting in the morning and intuitive ambient floor heating. Autonomous vehicles will eliminate the need for garages and driveways, with traditional cars kept on the outskirts of the development. The master plan, replete with central plazas, community centers, and gardens and orchards, is meant to encourage community involvement across generational divides, which studies show improves long-term health outcomes. (Departures)

Wages Increase with Inflation

The share of workers aged 25 to 54 working or seeking work increased sharply to 82.6% in August from 82% in July, a sign that prime-age individuals remain optimistic about their job prospects. Average hourly earnings climbed 3.2% from August 2018, enough to keep worker earnings well above the inflation rate. The pay measure has now been above the 3% threshold for more than a year after lagging for much of the expansion. (WSJ) 

Current Mortgage Rates

Mortgage rates dropped to their lowest level since October 2016 due to weaker economic data over the past week. The 30-year fixed-rate mortgage averaged 3.49% during the week ending Sept. 5, down 9 basis points from the previous week.

Rates for 30-year home loans have only increased nine times so far this year, otherwise, they have dropped or remained flat from week to week. The 15-year fixed-rate mortgage moved down 6 basis points to an average of 3.00%. The 5/1 adjustable-rate mortgage averaged 3.30%, falling 1 basis point. (Marketwatch)

Fannie & Freddie

The U.S. Treasury said the government should draw up a plan to begin recapitalizing mortgage giants Fannie Mae and Freddie Mac, while calling on Congress to pen comprehensive housing reform that would allow them to be safely freed from government control. The report calls for recuperating Fannie and Freddie and removing them from their government lifeline, but it strikes a cautious tone by failing to commit to concrete timelines or a specific recapitalization plan. It commits to preserving the 30-year fixed-rate mortgage and leans on Congress to implement the creation of an explicit guarantee for Fannie and Freddie’s mortgage-backed securities. Could this make mortgages more expensive and harder to get? Housing finance reform failed to gain traction in an attempt in 2012. (Reuters)

State of the Economy

U.S. employment grew modestly in August and unemployment showed signs of stabilizing at historically low levels, signs that a global economic slowdown isn’t driving the U.S. into outright recession but has dented the growth outlook. 130,000 payrolls were added in August and has averaged 156,000 new jobs a month over the past 3 months, down from average growth of 190,000 a month in the 8 years since employment started picking up after the last recession in 2007/9. Unemployment remains at historic lows at 3.7%.  Debt owed by governments, businesses and households around the globe is up nearly 50% since before the financial crisis to $246.6 trillion at the beginning of March, according to the Institute of International Finance. Expect interest rates to remain low or continue to drop. I would wager a rate-cut is imminent. (WSJ)