San Francisco’s Lincoln Ford Mercury, the last domestic car dealership within the city’s 47.6 square mile area, abruptly shut its doors on May 1, according to The San Francisco Chronicle. “It’s a tough market. Imports have a much bigger share in San Francisco,” Dennis Fitzpatrick, owner of Concord Chevrolet and regional vice president of the California New Car Dealers Association told the paper. “When you can sell 100 imports a month as opposed to 25 domestic, and what with the rents and real estate, it’s tough to make a U.S. car dealership pencil.” (more…)
Posts Tagged ‘economic crisis’
The economic fallout from the nation’s housing crisis continues to be geographically concentrated. New figures on foreclosure rates for 2010 from RealtyTrac show that Sunbelt metros continue to see the highest levels of foreclosure in the nation.
Miami tops the list with more than 171,704 foreclosures followed by Phoenix with 124,720 and Riverside with 101,210. The map above prepared by Zara Matheson of the Martin Prosperity Institute shows the 20 metros with the highest total number of foreclosures based on the RealtyTrac data.
And, 19 of the 20 metros with the highest foreclosure rates are located in just three Sunbelt states – Nevada, California, and Florida. In Las Vegas, a staggering one in 10 housing units (10.88 percent) went through foreclosure in 2010.
Unfortunately, foreclosure rates were up in nearly three-quarters (72 percent) of the 206 metros tracked by RealtyTrac. But, foreclosure activity was down in the 10 metros with the highest foreclosure rates, which could be a signal that the worst of the housing crisis is finally past.
Is a new world financial order emerging from the economic crisis? Will Asia’s rising financial centers displace the long-held dominance of New York and London?
The newly released edition of the Global Financial Centres Index (GFCI), an annual competitiveness ranking of the world’s leading financial centers, provides useful data with which to assess the evolving landscape of global finance.
The map above, prepared by Zara Matheson of the Martin Prosperity Institute (MPI), shows the world’s leading financial centers based on the GFCI ranking.
On Tuesday, The Daily Beast ran my new Housing-Mortgage Stress Index. While the U.S. housing market saw a sharp drop in July and millions of homeowners remain underwater, housing market troubles vary significantly by metro region.
The Housing-Mortgage Stress Index shows the U.S. metros whose housing markets — and homeowners — face the highest levels of stress and danger of foreclosure and falling prices. The index, developed with my collaborator Charlotta Mellander, is based on three variables:
- Negative equity — percent of mortgages where owners owe more than their homes are worth.
- Loan-to-value ratio — total Mortgage Debt Outstanding divided by Total Property Value — both from Core Logic.
- Monthly mortgage cost-to-income ratio from the U.S. Census American Community Survey.
The index weights all three variables equally and covers 142 U.S. metros. (more…)
On Sunday, August 29, Richard Florida was interviewed on CNN’s Fareed Zakaria GPS. They discussed The Great Reset and how cities will change as Americans adapt to a world after the recession. Click the image below to watch the interview.
In my last post, I mapped the projected growth in service jobs across America’s metro regions. Today, I look at a subset of those higher-paying, higher-skill jobs for knowledge, professional, and creative workers that make up the creative class. More than 35 million people are currently employed in creative class work in fields like science, technology, and engineering; business, finance, and management; law, health care, and education; and arts, culture, media, and entertainment. The creative class makes up roughly a third of total employment and accounts for more than half of all wages and salaries in America. Creative class employment has seen relatively low rates of unemployment during the course of the economic crisis. Creative class jobs will make up roughly half of all projected U.S. employment growth – adding 6.8 million new jobs by 2018. (more…)
Arnold Kling is all over it:
Old consensus: we need Freddie and Fannie in order to make housing “affordable.”
New consensus: we need them in order to “prevent further house price declines,” in other words, to make housing less affordable …
Government interference in housing markets, which helped produce the disorder known as the financial crisis, is still producing disorder…
The effort to prop up home prices does the following:
1. Diverts capital from other uses.
2. Uses up taxpayer money that could be spent on other things.
3. Increases the wealth of people who find suckers to buy their houses at too-high prices.
4. Decreases the wealth of the suckers who buy now.
5. Decreases the liquidity and mobility of people who cannot find rational buyers for their houses because rational buyers do not buy into a rigged market.
6. Decreases the investment opportunities for rational buyers, who are unable to buy homes in an un-rigged market.
The past week or so, I’ve been tracking where new jobs will be created in America. Today, I look at the sector of the economy that accounts for the largest share of all jobs – the service class. More than 60 million American workers do this kind of low-skill, low-wage, routine service work, making up 45 percent of the work force. These service class jobs are projected to make up more than roughly half of all projected new jobs out to 2018 – 7.1 million new jobs, including 835,000 projected new home health and personal care aides, 400,000 new customer service positions, 400,000 new food preparation workers, and 375,000 new retail sales clerks. (more…)
The United States has seen a steady erosion of blue-collar work over the past several decades. We define blue-collar, working class jobs as those which primarily make use of physical skill or manual labor. These occupations include not only factory work or production occupations, but jobs in construction, materials moving, transportation, installation, and repair. Blue-collar, working class jobs currently account for 23 percent of all U.S. employment. Blue-collar occupations and the regions that specialize in this kind of work have seen the highest levels of unemployment and the greatest vulnerability to the economic crisis. The decline of high-paying, blue-collar jobs for lower-skilled workers has caused considerable concern that the U.S. is losing an important source of good, family-supporting jobs, and that the American labor market is becoming more uneven and increasingly split between higher-paying knowledge work and lower-paying routine service work. But what will the geography of blue-collar work look like in the future? (more…)