David Ryder/Bloomberg/Getty Images
A home in the West Seattle neighborhood on Tuesday, June 18, 2024 in Seattle, Washington.
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CNN
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It’s not just homeowners who are suffering from rising home prices in the US: Renters are feeling the pain, too.
Both homeowners and renters have been increasingly burdened by rising housing costs in recent years, according to a report released last week by the Joint Center for Housing Studies at Harvard University. The report, based on an analysis of existing data, said that nearly a quarter of homeowner households are “currently worryingly burdened.” For renters, the cost burden is even more severe.
“For renters, the situation is even tougher,” the Harvard report said. “Rents have risen faster than incomes for decades, but pandemic-era rent hikes have created an unprecedented rental crisis.”
The number of renters who spend more than half their household income on housing and utility bills will reach a record high of 12.1 million in 2022, up 1.5 million from pre-COVID-19 pandemic levels. Spending such a high percentage of household income on rent puts them at greater risk of losing their home if they face unexpected financial challenges, such as unexpected medical bills.
It’s all part of a broader struggle in the U.S. housing market, and recent data suggests things aren’t getting better. A continued shortage of homes for sale is intensifying bidding wars, and rising mortgage rates are keeping sellers and some buyers on the sidelines.
“Housing costs remain a particular pain point for American families,” White House National Economic Council Director Lael Brainard said at an event in Washington on Thursday.
“Congress really needs to act here,” she said, referring to a bill recently passed by the U.S. House of Representatives. “If the Senate acts tomorrow, we’ll get tax credits for an additional 200,000 low-income housing units.”
Speaking at an event hosted by the Urban Institute, Brainard outlined the Biden administration’s efforts to improve the US housing market, including capping annual rent increases for 2 million households living in Low-Income Housing Tax Credit-eligible housing and reducing Federal Housing Administration mortgage insurance premiums, which took effect in the spring.
“Already, approximately 700,000 homeowners are saving approximately $900 per year as a result of the government’s reduction in mortgage interest rate premiums on FHA-insured loans,” Brainard said.
“Affordable housing could increase over time as states and local governments experiment with regulatory reforms and incentives,” the Harvard report said. “Access to down payment assistance and low-interest mortgage products is urgently needed to close racial gaps and improve homeownership for low-income families.”
Apple is banking on upcoming AI features to boost iPhone sales, especially in China where demand is sluggish. But there’s a problem: ChatGPT, which will soon be integrated into Siri, is banned in China, according to my colleague Samantha Murphy Kelly.
During a presentation earlier this month, Apple (AAPL) unveiled a unique technology called Apple Intelligence that promises to bring exciting new AI to the company. It’s adding features, announcing a partnership with OpenAI, and will also make limited use of its buzzy ChatGPT tool (ChatGPT will step in if Siri is up and needs further assistance answering a query).
The move shows how Apple is trying to quickly adopt the latest hot technology at a time when tech rivals such as Microsoft, Google, Meta and Samsung have already established their dominance in AI. The deal with OpenAI could help Apple close that gap.
But China was one of the first countries in the world to regulate the generative AI technology that powers these popular services. In August, the Cyberspace Administration of China, the country’s largest internet watchdog, released new industry guidelines, requiring companies to get approval before deploying them. As of March, the agency had approved more than 100 AI models, all from Chinese companies.
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Monday: Federal Reserve Governor Christopher Waller speaks.
Tuesday: FedEx and Carnival earnings. Chicago Fed releases National Activity Index for May. S&P Global releases S&P CoreLogic Case-Shiller U.S. National Home Price Index for April. The Conference Board releases its latest Survey of Consumers for June. Fed officials Lisa Cook and Michelle Bowman speak.
Wednesday: Earnings for Micron, General Mills and Levi Strauss. The U.S. Commerce Department reports new single-family home sales in May. The Federal Reserve releases the results of its annual bank stress test.
Thursday: Earnings for Nike, McCormick and Walgreens. The U.S. Commerce Department reports new durable goods orders for May and releases its final estimate of first-quarter gross domestic product. The U.S. Department of Labor reports the number of new workers who filed for unemployment insurance during the week ending June 22. The National Association of Realtors reports home sales based on contract signings for May.
Friday: Richmond Fed President Tom Barkin speaks. The Commerce Department releases May numbers for household income, spending and the Fed’s preferred inflation measure. The University of Michigan releases its final June consumer sentiment survey. Fed President Michelle Bowman speaks.
