Meredith Whitney, the one-time “Oracle of Wall Street” who predicted the Great Financial Crisis, doesn’t mince her words. Young single men living at home and playing video games are behind a “crisis of the American male,” she explained in an interview with Fortune.
Her theory about dateless, spiraling young men ends with home prices declining for years, or even decades. Whitney sees home prices falling 30%, but it’s “not the end of the world,” in her mind because of how much prices went up during the pandemic-fueled housing boom. “There’s so much equity stored up in American homes, there’s no collateral damage from that—people then, on paper, are worth less than they thought they were,” Whitney said. “It sounds dramatic, but it’s really not that dramatic just because you’ve had so much massive inflation from the zero interest rate policy.”
As of last year, almost 40% of American homeowners were mortgage-free, meaning they owned their home outright. Although they’d probably be upset to see their net worth fall that much. On the other hand, those who missed the mark and didn’t buy a home before the run-up in prices during the pandemic, might be happy. But let’s go back to the premise: young men (who are actually only part of the equation, and something she’s discussed before).
A lot of young men are single, a study from the Pew Research Center found last year. More than 60% of men under 30 described themselves as unattached in a survey conducted by the Pew Research Center; Whitney referred to this analysis in her thinking. The aforementioned study also found the share of single men in the country looking to date or be in a relationship has declined since 2019, which Whitney alluded to, and emphasized that a portion of young, single men “haven’t had sex in the past year and don’t seem to be bothered by it.” More men are living at home with their parents, and for longer too. A 2016 report from the Pew Research Center found young men were more likely to live at home with mom and dad than a partner.
So where does this all stem from? Mid-2000s video games, in Whitney’s mind. “You have an ability to feel like you’re gaming with a group of friends or community, but you’re really just at home alone,” she said. “And so the socialization of the young American male really started to break down significantly around that time.” According to Whitney, as gaming went up, so did malaise, noting a “despondency and rampant loneliness amongst young men,” in a recent note her advisory group produced. The gaming explosion was driven by technological improvements and the growing popularity of gaming on an iPhone; and it coincided with a poor job market. Combined, these forces have created a cohort of young men who don’t know how to socialize, in her view. “Gaming and social isolation are somewhat of a vicious cycle in which the lack of real social contact creates a sense of social unease, making real social contact much more uncomfortable,” the note states.
Last year, an analysis found that 65% of Americans played video games, and that equated to more than 200 million weekly players, and a 2015 report from the Pew Research Center found that 77% young men play video games—more than any other demographic. She’s said something similar before, only it was about sports betting.
“Unless you’re creating a household, there’s no reason to buy a house,” Whitney said, touching on household formations and birth rates. Before the pandemic, household growth over the previous decade was the lowest ever recorded, per Pew. But another account shows a surge in household growth from 2019 and 2021.
Still, household formation and demand for housing is only one part of the equation. The other has to do with a “silver tsunami,” a metaphor for an aging population, really baby boomers in the housing world. There are varying estimates and predictions regarding the “silver tsunami,” but it all essentially boils down to more supply. Whitney, toward the end of last year, said 51% of people over the age of 50 are set to downsize to smaller homes, citing an AARP report at a conference. That would bring more than 30 million housing units to the market. Separately, a recent Freddie Mac analysis revealed nine million homes were set to come onto the market in the next decade as baby boomers age, but suggested it wasn’t going to really disrupt the housing world.
Either way, she sees more supply and not enough demand in the coming years, which’ll culminate in plummeting home prices—essentially our current situation inverted. Presently, we don’t have enough housing to meet demand (one estimate shows we’re actually missing anywhere between roughly two million and seven million homes), and home prices keep escalating because of it. Whitney doesn’t think we have a housing shortage, not on a national scale. If anything, there’s a shortage of affordable housing, and not enough housing where people actually want to live, she explained. Calling our housing crisis a metropolitan crisis might be better, a housing policy analyst once told Fortune .
Even so, some research has shown single women are buying homes more than single men, so maybe they’d save the housing universe? Not a chance, Whitney said. “How many single women are going to buy four bedroom, three bath homes?” She then brought up the 5 D’s of real estate: diapers, diamonds, divorce, debt, and death. “Without those…I just don’t think it’s going to be a big enough driver.”
Still, if what she’s predicting comes true, it won’t be another housing crash.
WASHINGTON (DC News Now) — D.C. Mayor Muriel Bowser announced new funding on Wednesday to help kids succeed in school.
Her upcoming budget includes nearly $4.8 million for high-impact tutoring.
District leaders say this will continue the program’s success.
The high-impact tutoring initiative was established to help those impacted by COVID-19 learning disruptions and to help close academic disparities.
Initially, federal funds covered the cost, but that funding will now come from the District’s budget.
“We have been early adopters of high-impact tutoring, and we want to continue on the success,” Bowser said.
Bowser made the funding announcement at Wednesday’s High-Impact Tutoring Summit.
“The Chancellor talked a little bit about his mid-year data coming out from D.C. public schools, which puts our kids on track to exceed where they were pre-pandemic for reading and math,” Bowser said.
Interim assessment data shows that at-risk students who receive the appropriate amount of high-impact tutoring are nearly seven percent more likely to achieve their growth goals than at-risk students receiving less tutoring.
“We know that tutoring improves attendance and improves the social-emotional wellness,” said Dr. Christina Grant, D.C.’s state superintendent of education. “We have evidence and our own assessments on the academic progress that students make when they have access to tutoring.”
Grant said they’re on pace to exceed their target of serving 10,000 students through the program.
“Having tutors inside our schools makes sure that there’s one more caring, trusted adult that is not just providing the one-on-one intervention, but also saying like how was your day? What’s going on?” Grant said.
Bowser’s budget also includes an overall 12% increase in school funding.
Other investments include:
- $5 million to support the reimagination of high school, including programming at the existing Advanced Technical Center in Ward 5, dual enrollment expansion, and the Advanced Internship Program and Career Ready Internships
- $17 million to open a new health clinic, in partnership with Children’s National Hospital, to provide health care services and training for students at the existing Advanced Technical Center in Ward 5
- $600,000 to open a new Advanced Technical Center at the Whitman-Walker Max Robinson Center in Ward 8
The budget still needs a green light from the chief financial officer before being presented to the council.
Bowser said she expects to reveal more details next week.
WASHINGTON (DC News Now) — The Humane Rescue Alliance, HRA, had 14 dogs up for adoption Saturday. They were among the 31 recovered from the Southeast D.C. home in February, where three police officers were shot and wounded during a stand-off.
By the time the HRA closed, only two more dogs needed new homes.
Kiara Moore and her family adopted “Mercedes,” and her brother, “Gabanna,” both were pitbull mixes.
“The dogs are so cute and sweet,” Moore said. “I just was like, if we can rescue them from the shelter and give them a permanent home, that’d be great.”
HRA recovered the dogs shortly after the Feb. 14 barricade situation, which led to an hours-long stand-off, allegedly by Stephen Rattigan.
Investigators, according to the D.C. U.S. Attorney’s Office, first learned of the dogs after a security camera was said to have caught Rattigan beat one of the dogs in April last year. They went to his home twice in January to address the number of dogs and their living conditions, which included metal cages.
“These dogs have been through a lot, but at the same time, we’ve spent a lot of time with them over the past weeks and know that they are 100% ready to be in a new adoptive home,” said Chris Schindler, the HRA’s chief operating officer. “But this is also a big surge of people and so I think, much like people, anybody might get a little bit nervous, but I think you’ll see that they’ll just melt into your arms the minute you interact with them.”
Twelve dogs, including seven puppies, were adopted within hours after the HRA opened for business.
“I was just so glad they was able to hold on for us until we got here,” Moore said.
She and some relatives left with the newest members to their family.
The remaining 17 dogs, according to the HRA, have either been adopted or are receiving more training before they can find new homes.
THE ROLE OF ESG (ENVIRONMENTAL, SOCIAL, GOVERNANCE) IN REAL ESTATE INVESTMENT
In recent years, Environmental, Social, and Governance (ESG) factors have become increasingly important in the realm of real estate investment. Investors are recognizing that sustainable and socially responsible practices not only benefit society and the environment but also contribute to long-term financial returns. This article explores the significant role of ESG considerations in real estate investment, highlighting key points that investors should consider.
1. Environmental Considerations:
- Energy Efficiency: Properties with high energy efficiency ratings tend to have lower operational costs and attract environmentally conscious tenants.
- Green Building Certifications: Buildings certified under programs like LEED (Leadership in Energy and Environmental Design) or BREEAM (Building Research Establishment Environmental Assessment Method) often command higher rents and property values.
- Climate Resilience: Assessing climate-related risks such as flooding, extreme weather events, and sea-level rise is crucial for long-term asset value protection.
2. Social Considerations:
- Community Impact: Real estate developments that positively impact local communities by providing affordable housing, job opportunities, and amenities tend to foster stronger tenant relationships and enhance property values.
- Diversity and Inclusion: Embracing diversity and inclusion in real estate management and tenant selection can lead to higher tenant satisfaction and reduced turnover.
- Health and Well-being: Properties that prioritize features such as natural light, indoor air quality, and access to green spaces can contribute to improved tenant well-being and productivity.
3. Governance Considerations:
- Transparent Reporting: Investors increasingly demand transparency regarding ESG performance metrics and governance structures within real estate investment vehicles.
- Ethical Business Practices: Adherence to ethical business practices, including anti-corruption measures and fair labor standards, enhances investor trust and mitigates reputational risks.
- Board Diversity: Real estate companies with diverse boards are better equipped to address a wide range of perspectives and make more informed decisions, leading to improved performance and risk management.
4. Financial Performance:
- Risk Mitigation: Integrating ESG factors into investment decision-making helps identify and mitigate various risks, including regulatory, physical, and reputational risks.
- Long-Term Value Creation: Properties with strong ESG performance tend to experience higher tenant retention rates, increased rental income, and enhanced property valuations over the long term.
- Access to Capital: Investors focused on ESG criteria often have access to a broader range of capital sources, including sustainable investment funds and ESG-focused lenders, providing opportunities for lower-cost financing.
5. Regulatory Landscape:
- Growing Regulation: Governments worldwide are implementing regulations aimed at promoting sustainability and addressing social issues in the real estate sector, which underscores the importance of proactive ESG integration for investors.
- Compliance Requirements: Staying abreast of evolving regulatory requirements related to energy efficiency standards, building codes, and social housing initiatives is essential for real estate investors to mitigate compliance risks and capitalize on emerging opportunities.
The role of ESG considerations in real estate investment is rapidly evolving, driven by increasing investor demand for sustainable and socially responsible investment opportunities. By integrating ESG factors into their investment strategies, real estate investors can not only generate attractive financial returns but also contribute to positive environmental and social outcomes. Embracing ESG principles is no longer just a moral imperative but a fundamental aspect of prudent real estate investment practices in today’s market landscape.
Excitement is in the air as the fabulous 12,000-square-foot Clubhouse is taking shape at RiverCreek in Estero. Nestled on a more than 4-acre recreational complex, the Clubhouse at RiverCreek will be the hub of the communitys vibrant lifestyle and activities.
Residents will revel in year-round fun at the elegant Event Room for happy hours and social events organized by a dedicated lifestyle director. The Sports Lounge and Card Salon will offer spaces for poker, Texas Hold Em, Mahjong, and more. Homeowners can stay fit at the fully equipped fitness center or enjoy the Indoor Sports Complex for basketball. Outdoors and sports enthusiasts can play tennis, pickleball, or bocce on shaded courts. The resort-style pool, shaded cabanas, and cozy fire pit provide relaxation, while younger residents will love the interactive splash park and shaded playground for fun in the Florida sun.
The contemporary-style new homes priced from the $600s to $800s at RiverCreek perfectly complement the fabulous lifestyle found within. At RiverCreek, youll discover Esteros best new home value and enjoy in-style living with amazing one- and two-story home designs featuring a gorgeous selection of luxury standard features. RiverCreek offers a variety of floorplan designs ranging in size from approximately 1,900 to over 4,300 square feet and includes up to five bedrooms, master suites upstairs or downstairs, 2-3 car garages, and plenty of flexible living spaces.
This incredible new community has it all, offering a resort lifestyle that is second to none and incredible new home designs in a beautiful Estero location. RiverCreek, which is off the Corkscrew Road corridor and just east of I-75, is one of Southwest Floridas most well-liked communities. Residents here can access a wide range of dining, shopping, top-notch schools, and entertainment options.
Models are open daily for tours at RiverCreek. For more information, call (239) 308-4600 or visit GLHomes.com/RiverCreek.
About GL Homes
Founded in 1976, GL Homes is a uniquely American success story. Built by Itchko Ezratti, who believed that hard work, integrity, and quality craftsmanship would thrive in the marketplace, GL Homes has since grown into one of Floridas largest homebuilders.
Misha Ezratti, son of company founder Itchko Ezratti, is President of GL Homes and leads the charge in overseeing operations across the state of Florida today. Misha Ezratti continues to reinforce the culture started by his father, namely, that every employee and customer is part of the GL Homes family. Those enduring values are reflected in every home built by GL Homes today.
With a more than 45-year track record, countless industry awards and accolades, and, most notably, more than 100,000 happy GL homeowners, its easy to see how Itchko Ezrattis GL Homes has grown into a top luxury home builder across both Florida and the nation.
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Investing in nature to address climate change, support biodiversity, and protect ocean health—and more—is expected to reach record levels this year in response to more regulation and market demand, according to Cambridge Associates, a global investment firm.
Still, the amount of private capital invested to support natural systems will fall far short of what’s needed, according to the annual “State of Finance for Nature” report published in December from the United Nations Environment Programme.
A big reason is that nearly US$7 trillion in public and private finance was directed to companies and economic activities in 2022 that caused direct harm to nature, while only US$200 billion was directed to so-called nature-based solutions, or NbS—investments that protect, conserve, restore, or engage in the sustainable management of land and water ecosystems, as defined by the United National Environment Assembly 5, or UNEA5, the report said.
“Without a big turnaround on nature-negative finance flows, increased finance for NbS will have limited impact,” it said.
But the report also said that the misalignment “represents a massive opportunity to turn around private and public finance flows” to meet targets set by the United Nations Rio Conventions on climate change, desertification, and biodiversity loss.
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The conventions aim to limit climate change to 1.5 degree Celsius above pre-industrial levels, protect 30% of the earth’s land and seas by 2030, and to reach “land degradation neutrality” by 2030. Reaching those goals will require more than double the amount of current levels of nature-based investing by 2025, to US$436 billion, and nearly triple today’s levels to US$542 billion by 2030, the report said.
Most of the US$200 billion invested in NbS today is by governments, but private investors contributed US$35 billion—including US$4.6 billion via impact investing funds and US$3.9 billion via philanthropy. The largest source of private finance was in the form of biodiversity offsets and credits. [An offset is designed to compensate for biodiversity loss, while a credit is the asset created to restore it].
Many wealthy individuals and families concerned about climate change and the environment so far have focused their investment dollars on climate solutions and innovations in technology and infrastructure, or in technologies supporting food and water efficiency, says Liqian Ma, head of sustainable investment at Cambridge Associates.
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But “increasingly there is growing awareness that nature provides a lot of gifts and solutions if we prudently and responsibly manage nature-based assets,” Ma says.
Investments can be made, for instance, in sustainable forestry and sustainable agriculture—which can help sequester carbon—in addition to wetland mitigation, conservation, and ecosystem services.
“Those areas are not in the mainstream, but they are additional tools for investors,” Ma says.
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Finance Earth, a London-based social enterprise, is among the organizations working to make these tools more mainstream by creating a wider array of nature-based solutions in addition to related investment vehicles.
Finance Earth groups nature-based solutions into six themes: agriculture, forestry, freshwater, marine/coastal, peatland, and species protection. Supporting many of these areas are an array of so-called ecosystem services, or benefits that nature provides such as absorbing carbon dioxide, boosting biodiversity, and providing nutrients, says Rich Fitton, director of Finance Earth.
Each of these ecosystem services are behind existing and emerging markets. Carbon-related disclosure requirements (at various stages of approval in the U.S. and elsewhere) have long spurred demand for carbon markets, the most mature of these markets.
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Cambridge Associates, for instance, works with dedicated asset managers who have been approved by the California Air Resources Board to buy carbon credits, Ma says.
In its annual investment outlook, the firm said California’s carbon credits should outperform global stocks this year as the board is expected to reduce the supply of available credits to meet the state’s emission reduction targets. The value of these credits is expected to rise as the supply drops.
In September, the G20 Task Force on Nature-Related Financial Disclosures released recommendations (similar to those put forward several years ago by the Task Force for Carbon-related Financial Disclosure) that provide guidance for how companies can look across their supply chains to assess their impact on nature, water, and biodiversity “and then start to understand what the nature-related risks are for their business,” Fitton says.
The recommendations will continue to spur already thriving biodiversity markets, which exist in more than 100 countries including the U.S. In the U.K., a new rule called “Biodiversity Net Gain” went into effect this month requiring developers to produce a 10% net gain in biodiversity for every project they create.
Though developers can plant trees on land they’ve developed for housing, for example, they also will likely need to buy biodiversity credits from an environmental nonprofit or wildlife trust to replace and add to the biodiversity that was lost, Fitton says.
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This new compliance market for biodiversity offsets could reach about £300 million (US$382 million) in size, he says.
Finance Earth and
are currently raising funds for a U.K. Nature Impact Fund that is likely to invest in those offsets in addition to other nature-based solutions, including voluntary offset markets for biodiverse woodlands and for peatlands restoration.
The fund was seeded with £30 million from the U.K. Department for Environment, Food and Rural Affairs—money that is designed to absorb first losses, should that be needed. The government investment gives mainstream investors more security to step into a relatively new sector, Fitton says.
“We need the public sector and philanthropy to take a bit more downside risk,” he says. That way Finance Earth can tell mainstream investors “look, I know you haven’t invested in nature directly before, but we are pretty confident we’ve got commercial-level returns we can generate, and we’ve got this public sector [entity] who’s endorsing the fund and taking more risk,” Fitton says.
Since December 2022, when 188 government representatives attending the UN Biodiversity Conference in Montreal agreed to address biodiversity loss, restore ecosystems, and protect indigenous rights, several asset managers began “creating new strategies or refining strategies to be more nature or biodiversity focused,” Ma says.
He cautioned, however, that some asset managers are more authentic about it than others.
“Some have taken it seriously to hire scientists to do this properly and make sure that it’s not just a greenwashing or impact-washing exercise,” Ma says. “We’re starting to see some of those strategies come to market and, in terms of actual decisions and deployments, that’s why we think this year we’ll see a boost.”
Fitton has noticed, too, that institutional investors are hiring experts in natural capital, recognizing that it’s a separate asset class that requires expertise.
“When that starts happening across the board then meaningful amounts of money will move,” he says. “There’s lots of projects there, there’s lots of things to invest in and there’ll be more and more projects to invest in as more of these markets become more and more mature.”