Category: real-estate

Mapped: The Salary You Need to Buy a Home in 50 U.S. Cities


This post is by Avery Koop from Visual Capitalist


Mapped: The Salary You Need to Buy a Home in 50 U.S. Cities

This is the Salary You Need to Buy a Home in 50 U.S. Cities

Depending on where you live, owning a home may seem like a far off dream or it could be fairly realistic. In New York City, for example, a person needs to be making at least six figures to buy a home, but in Cleveland you could do it with just over $45,000 a year.

This visual, using data from Home Sweet Home, maps out the annual salary you’d need for home ownership in 50 different U.S. cities.

Note: The map above refers to entire metro areas and uses Q1 2022 data on median home prices. The necessary salary was calculated by the source, looking at the base cost of principal, interest, property tax, and homeowner’s insurance.

Home Ownership Across the U.S.

San Jose is by far the most expensive city when it comes to purchasing a home. A person would need to earn over $330,000 annually to pay off the mortgage at a monthly rate of $7,718.

Here’s a closer look at the numbers:

RankMetro AreaMedian Home PriceSalary Needed
#1San Jose$1,875,000$330,758
#2San Francisco$1,380,000$249,685
#3San Diego$905,000$166,828
#4Los Angeles$792,500$149,127
#5Seattle$746,200$140,768
#6Boston$639,000$130,203
#7New York City$578,100$129,459
#8Denver$662,200$121,888
#9Austin$540,700$114,679
#10Washington, D.C.$553,000$110,327
#11Portland$570,500$109,267
#12Riverside/San Bernardino$560,000$106,192
#13Sacramento$545,000$105,934
#14Miami$530,000$103,744
(Read more...)

3 Insights From the FED’s Latest Economic Snapshot


This post is by Marcus Lu from Visual Capitalist


FED economic snapshot June 2022

3 Insights From the Latest U.S. Economic Data

Each month, the Federal Reserve Bank of New York publishes monthly economic snapshots.

To make this report accessible to a wider audience, we’ve identified the three most important takeaways from the report and compiled them into one infographic.

1. Growth figures in Q2 will make or break a recession

Generally speaking, a recession begins when an economy exhibits two consecutive quarters of negative GDP growth. Because U.S. GDP shrank by -1.5% in Q1 2022 (January to March), a lot rests on the Q2 figure (April to June) which should be released on July 28th.

Referencing strong business activity and continued growth in consumer spending, economists predict that U.S. GDP will grow by +2.1% in Q2. This would mark a decisive reversal from Q1, and put an end to recessionary fears for the time being.

Unfortunately, inflation is the top financial concern for Americans, and this is dampening consumer confidence. Shown below, the consumer confidence index reflects the public’s short-term outlook for income, business, and labor conditions.

consumer price index 2005 to 2022

Falling consumer confidence suggests that more people will delay big purchases such as cars, major appliances, and vacations.

2. The COVID-era housing boom could be over

Housing markets have been riding high since the beginning of the COVID-19 pandemic, but this run is likely coming to an end. Here’s a summary of what’s happened since 2020:

  • Lockdowns in early 2020 created lots of pent-up demand for homes
  • Greater household savings and record-low mortgage rates pushed (Read more...)

Ranked: These Are 10 of the World’s Least Affordable Housing Markets


This post is by Carmen Ang from Visual Capitalist


Map looking at some of the expensive housing markets worldwide

The Briefing

  • For the 12th year in a row, Hong Kong is the world’s least affordable housing market, according to Demographia’s ranking of 92 cities in select countries
  • Sydney, Australia moves up one spot from last year’s ranking to take second place

These Are 10 of the World’s Least Affordable Housing Markets

It’s become increasingly difficult for middle-class families to purchase a home over the last few years—and the global pandemic has only made things worse.

According to Demographia’s 2022 Housing Affordability Report, the number of housing markets around the world deemed “severely unaffordable” increased by 60% compared to 2019 (prior to the pandemic).

This graphic looks at some of the least affordable housing markets across the globe, relative to median household income. The report covers 92 different cities in eight nations: Australia, Canada, China, Ireland, New Zealand, Singapore, the United Kingdom, and the United States.

The Least Affordable Housing Markets

Before diving in, it’s worth outlining the methodology used in this report, to help explain what’s classified as a severely unaffordable housing market.

To calculate affordability, a city’s median housing price and divided by its median household income. From there, a city is given a score:

  • A score of 5.1 or above is considered severely unaffordable
  • 4.1 to 5.0 is considered seriously unaffordable
  • 3.1 to 4.0 is considered moderately unaffordable

All the cities on this graphic are classified as severely unaffordable⁠—and, for the 12th year in a row, Hong Kong takes the top spot as the world’s most (Read more...)

The World’s Largest Real Estate Investment Trusts (REITs)


This post is by Marcus Lu from Visual Capitalist


World's largest real estate investment trusts

The World’s Largest Real Estate Investment Trusts (REITs)

Real estate is widely regarded as an attractive asset class for investors.

This is because it offers several benefits like diversification (due to less correlation with stocks), monthly income, and protection from inflation. The latter is known as “inflation hedging”, and stems from real estate’s tendency to appreciate during periods of rising prices.

Affordability, of course, is a major barrier to investing in most real estate. Property markets around the world have reached bubble territory, making it incredibly difficult for people to get their foot in the door.

Thankfully, there are easier ways of gaining exposure. One of these is purchasing shares in a real estate investment trust (REIT), a type of company that owns and operates income-producing real estate, and is most often publicly-traded.

What Qualifies as REIT?

To qualify as a REIT in the U.S., a company must meet several criteria:

  • Invest at least 75% of assets in real estate, cash , or U.S. Treasuries
  • Derive at least 75% of gross income from rents, interest on mortgages, or real estate sales
  • Pay at least 90% of taxable income in the form of shareholder dividends
  • Be a taxable corporation
  • Be managed by a board of directors or trustees
  • Have at least 100 shareholders after one year of operations
  • Have no more than half its shares held by five or fewer people

Investing in a REIT is similar to purchasing shares of any other publicly-traded company. There are also exchange-traded (Read more...)

How Much Prime Real Estate Could You Buy for $1 Million?


This post is by Marcus Lu from Visual Capitalist


diagram showing how much prime real estate one can buy for $1 million in various cities

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Yes. Visualizations are free to share and post in their original form across the web—even for publishers. Please link back to this page and attribute Visual Capitalist.
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The Briefing

  • Housing affordability can vary significantly from city to city
  • $1 million USD can buy over 6 times more space in Dubai than in Hong Kong

How Much Real Estate Could You Buy for $1 Million?

“There are three things that matter in property: location, location, location”

Those are words from Harold Samuel, a British real-estate mogul from the 1900s. Broadly speaking, it’s a quote that still holds true—property values in the world’s best cities have always been worth a pretty penny.

The scarcity of real estate is driven by trends such as urbanization, which is the migration of people into cities. While the first examples of cities were built thousands of years ago, it was only recently that the majority of the population began to live in them. In fact, the urban population just overtook the rural population for the first time in 2007.

Of course, certain cities simply hold more appeal for wealthy people, and as a result, competition in the prime real estate market can be fierce.

To learn more about (Read more...)

Blockchain Applications: Tokenization of Real Assets



The following content is sponsored by Global X ETFs.

Global X BKCH ETF

The Briefing

  • Tokenization is a solution that divides the ownership of an asset into digital tokens
  • This process could democratize investment in physical assets

Blockchain Applications: Tokenization of Real Assets

Did you know that blockchain has the potential to transform the way we invest in physical assets?

Tokenization is a solution that divides the ownership of an asset (such as a building) into digital tokens. These tokens act as “shares”, and are similar to non-fungible tokens (NFTs). The difference here, however, is that the tokens are fungible and they are actually tied to the value of the asset.

In this graphic sponsored by Global X ETFs, we visualize how tokenization could be used in real estate.

Tokenization in Real Estate

Blockchain has strong potential in real estate investing because it mitigates many of the asset class’ hurdles. Here’s a brief round-up of its theoretical advantages:

Liquidity

Buying and selling real estate is normally a tedious process. If a property were to be tokenized, it would essentially cut out the middleman and allow buyers and sellers to transfer ownership directly.

These transfers would be as easy as buying and selling cryptocurrency.

Removing barriers to entry

Because properties are expensive, real estate investing is typically limited to institutional investors with large amounts of capital. Individuals can gain exposure through a real estate investment trust (REIT), but these vehicles can carry high minimums and fees.

Tokenization could enable individuals to buy and sell (Read more...)

How Every Asset Class, Currency, and S&P 500 Sector Performed in 2021


This post is by Niccolo Conte from Visual Capitalist


2021 asset performance

How Every Market Performed in 2021

After the roller coaster of volatility in 2020, the majority of asset classes in 2021 saw positive returns as the world reopened for business.

The Federal Reserve’s accommodative monetary policy, supply chain struggles, and high demand for fuels and raw materials for the clean energy transition largely shaped the markets.

Alongside the rise in inflation, commodities and cryptocurrency outperformed as broad equity indices saw double-digit returns, with the S&P 500 rising by 26.9% in 2021.

Markets Roundup for 2021

Speculation and the energy fuels for the world’s reopening were two of the main themes for markets in 2021, reflected in Bitcoin (59.8%) and crude oil (56.4%) being the top two performing assets in that time frame.

The S&P GSCI commodity index (37.1%) was another top performer, as agricultural and livestock food prices rose alongside the Dow Jones Real Estate Index (35.1%).

Asset Class2021 ReturnAsset Type
Bitcoin59.8%Cryptocurrency
WTI Crude Oil56.4%Commodity
S&P GSCI37.1%Commodity
Dow Jones Real Estate Index35.1%Real Estate
S&P 50026.9%Equities
S&P/TSX Composite21.7%Equities
Russell 200013.7%Equities
MSCI EAFE7.8%Equities
U.S. Dollar6.4%Currency
Bloomberg Barclays Corporate Bonds Index-1.2%Bonds
Bloomberg U.S. Treasury Index-2.5%Bonds
Gold-3.6%Commodity
MSCI Emerging Markets-5.5%Equities
Silver-11.7%Commodity

Source: TradingView

Despite most physical and digital commodities seeing price gains, precious metals such as gold (-3.6%) and silver (-11.7%) struggled to hold onto their value, while industrial and battery metals like lithium (Read more...)

The Regional Breakdown of Stock Market Sectors Over Time



The following content is sponsored by MSCI

Regional Breakdown of Stock Market Sectors

A Regional Breakdown of Stock Market Sectors

Over the last decade, the composition of global stock market sectors has changed substantially. For example, the information technology sector’s weighting has nearly doubled while the energy sector’s weighting has shrunk by nearly three-quarters.

But which regions have gained or lost market share within the stock market sectors? In this graphic from MSCI, we show the regional breakdown of each sector in 2011 and 2021.

Regional Weights by Stock Market Sector

We’ve based our data on the MSCI ACWI Investable Market Index (IMI), a global equity index intended to represent the entire stock market.

Here is how regional weights by stock market sectors have changed in percentage point terms over the last decade. For example, emerging markets’ utility weighting shrunk from 0.5% to 0.3% of the global stock market, a decline of 0.2 percentage points.

 Emerging
Markets
North
America
Asia
Pacific
Europe, Middle East,
and Africa
Total
Utilities-0.2-0.1-0.3-0.5-1.0
Communication Services0.34.90.1-0.84.5
Materials-0.9-1.0-0.9-1.2-4.0
Industrials-0.40.7-0.6-0.3-0.7
Consumer Discretionary0.72.0-0.6-0.41.6
Consumer Staples-0.3-0.9-0.3-1.0-2.4
Health Care0.42.90.2-0.33.2
Financials-1.1-0.5-2.1-2.4-6.1
Information Technology0.88.2-0.20.79.5
Energy-1.2-4.8-0.3-2.0-8.2
Real Estate0.32.10.70.53.5

Financials shrunk the most in the (Read more...) Pacific region and Europe, Middle East, (Read more...)

Pandemic Recovery: Have North American Downtowns Bounced Back?


This post is by Carmen Ang from Visual Capitalist


pandemic recovery

Can I share this graphic?
Yes. Visualizations are free to share and post in their original form across the web—even for publishers. Please link back to this page and attribute Visual Capitalist.
When do I need a license?
Licenses are required for some commercial uses, translations, or layout modifications. You can even whitelabel our visualizations. Explore your options.
Interested in this piece?
Click here to license this visualization.

Pandemic Recovery: Have Downtowns Bounced Back?

As we continue on our journey towards recovery from the impacts of the pandemic, North American offices that sat empty for months have started to welcome back in-person workers.

This small step towards normalcy has sparked questions around the future of office life—will office culture eventually bounce back to pre-pandemic levels, or is remote work here to stay?

It’s impossible to predict the future, but one way to gauge the current state of office life is by looking at foot traffic across city centers in North America. This graphic measures just that, using data from Avison Young.

Change in Downtown Office Traffic

According to the data, foot traffic in 23 different metropolitan hubs across North America remains drastically below pre-pandemic levels.

Across all major cities included in the index, average weekday visitor volume has fallen by 73.7% since the early months of 2020. Here’s a look at each individual city’s change in foot traffic, from March 2, 2020 to Oct 11, 2021:

CityCountryChange in Foot Traffic
Austin?? (Read more...)