That’s how much the Federal Reserve dropped interest rates during the 2008 downturn. Quartz points out that there was also a 6% rate cut in 1990 and a 5.25 drop in 2005. The current interest rate is so low that the Fed won’t have the same economy-stimulating power when the next recession hits.
9 out of 10
Also in Quartz: people in Singapore are living in the American dream. 90% of Singapore households own their homes. In Bulgaria, it’s 80%. In Spain, the Czech Republic, Slovenia, Italy, Finland, Ireland, and Mexico, at least 70%. Curiously, the current US home ownership rate of 64% is about the same as it was in 1990. But back then this percentage was above average, whereas we now are close to the bottom compared to high-income nations in Europe and Asia.
Fascinating research by Zillow. Income is not necessarily the best predictor of home ownership. Among older couples, single-earner households are only 1% less likely than their dual-earner peers to own homes. And among unmarried singles, those living with roommates or relatives have much higher household incomes, but are only 1% more likely to own homes.
7.9% and 17.1%
Apartment List’s survey shows how income inequality is transferred from generation to generation. 7.9% of millennials renters receive parental help in paying rent, and 17.1% expect parental assistance with home purchase down payments. Since 2000, house prices have increased 75% and rents have gone up 61 percent, but household income for those under 35 has only risen by 31%. Those unable to count on parental support inevitably fall behind.
Bloomberg sifts through the IRS’ Statistics of Income Bulletin and found that $480,930 is the minimum you have to earn annually to join the 1% club. Back in 2009, the threshold was $350,000. The average adjusted gross income among one-percenters is $1,483,596.