A Median Income of $120,000 Is Needed to Afford a Home, Clever Real Estate Reports

By Staff
Wednesday, May 1, 2024 4:00 PM Fewer Americans are finding their way onto the real estate ladder. A new report from Clever Real Estate finds that the median home price in the U.S. is now $322,494, requiring homeowners to make an annual income of at least $119,769 to afford a 10 percent down payment.  

The price of a home now exceeds the average household earnings of potential homeowners by more than $45,000. Currently, the average annual household income for Americans is $74,755 and Americans would need to earn at least $98,000 to afford a 20 percent down payment, according to the survey. 

The last time a median buyer could put down 20 percent was 1989, 5 percent higher than the current median buyer who can afford around 15 percent. 

Only four states fell within the affordability of meridian earners including West Virginia, Ohio, Iowa and Indiana. Out of the 50 largest metro areas in the country, only Pittsburgh, Cleveland, St. Louis, Memphis, Indianapolis and Birmingham fall within the affordability range for median earners. 

Los Angeles was named the least affordable city in the country—home buyers would need to earn nearly $250,000 a year to afford a median-priced home, three times the current $87,743 median income for the city. 

According to the National Association of Realtors, overall homeownership has dwindled significantly over the past 40 years, falling from 38 percent in 1981 to 32 percent in 2022.

Public School Spending Per Student Is Rising, U.S. Census Bureau Reports

By Staff
Tuesday, April 30, 2024 2:29 PM Public school spending per student rose in 2022, according to a new report from the U.S. Census Bureau. On a national basis, per student spending increased 8.9 percent from $14,358 in fiscal year 2021 to $15,633 in fiscal year 2022. The report, titled the Bureau’s 2022 Annual Survey of School System Finances, details the largest increase in public school spending per pupil in the United States in more than 20 years, the report said. 

New York and the District of Columbia topped the list for most money spent per pupil at $29,873 and $27,425, respectively. The New York City School District had the highest spending per pupil among the 100 largest school systems at $35,914, followed by Washington Schools in the District of Columbia at $27,425. Utah and Idaho had the lowest spending per pupil at $9,552 and $9,670 respectively. 

Despite rising debts, school revenue from all sources in both elementary and secondary education rose by more than 8 percent, reaching $878 billion, with 13 percent coming from federal government contributions and 42 percent coming from local sources. 

Just over $362 billion was received from property taxes, accounting for 65 percent of revenue from local sources, and $383 billion was contributed by state governments. 

Total expenditures also grew in 2022, up 7.8 percent, reaching $857 billion in fiscal year 2022. The largest expenditure for public and secondary schools were salaries at $266 billion, equaling 31 percent of total expenditures.

Department of Labor Releases Final Overtime Rule

By Staff
Monday, April 29, 2024 3:07 PM The National Retail Federation has issued a statement following the release of the Department of Labor's (DOL) final overtime rule. Under the new provisions contained in the Fair Labor Standards Act (FLSA), unless exempt, employees covered by the Act must receive overtime pay for working more than 40 in a work week at a rate not less than time and one-half their regular rates of pay. 

Under the new provisions, there is no limit contained in the Act about the number of hours employees aged 16 and older may work in any work week. According to the FLSA, there is no requirement for overtime pay for work on Saturdays, Sundays, holidays or regular days of rest, unless overtime is worked on such days.

Under the provisions of the act, an employee's work week is a fixed and regularly recurring period of 168 hours or seven consecutive 24-hour periods. The act applies on a work week basis and does not need to coincide with the calendar week. Work weeks may be established for differing groups of employees or individual employees. Averaging hours over two or more weeks is not permitted. Additionally, overtime pay earned in a particular work week must be paid on the regular pay day for the pay period in which the wages were earned.

Mother’s Day Spending Is Trending Downward in 2024, NRF Reports

By Staff
Friday, April 26, 2024 3:16 PM Mother’s Day is just two weeks away and across America consumers are searching for the perfect gift to show their appreciation for all the hard work mothers do. Last week, the National Retail Federation and Prospects Insights and Analytics released their annual consumer survey revealing that more than 84 percent of U.S. adults are expected to celebrate this year and consumers are expected to spend more than $33.5 billion this Mother’s Day, just shy of $35.7 billion spent in 2023.

Mother’s Day is one of the most lucrative holidays in the U.S. with an average of $254.04 spent on Mother’s Day gifts and celebrations, per person. This figure is slightly behind last year’s record of $274.02 per person. Millennials are the biggest spenders on Mother's Day gifts, particularly between the ages of 35 and 45, with an average budget of $345.75. 

Most gifts this year will be purchases for mothers or stepmothers at 59 percent, with wives and daughters coming in second and third at 22 percent and 12 percent, respectively. The most popular gift for Mother’s Day remains flowers and cards at 74 percent each, followed by special outings and brunches at 59 percent. Jewelry continues to gain traction as a popular Mother’s Day gift, with sales expected to reach nearly $7 billion. It has quickly surpassed flowers and greeting cards as the top gift choice. 

Most consumers are looking online for the perfect gift, with 35 percent reporting they will be using e-commerce solutions; 32 percent will stick to department stores and 29 percent will do their shopping at specialty stores.

Coffee Consumption Continues to Surge Globally

By Staff
Thursday, April 25, 2024 4:25 PM Coffee consumption continues to surge globally as consumers move away from soda and alcohol. A new report from consumer behavior advisor Circana, finds that coffee consumption has skyrocketed in several major markets. 

The research, based on analysis from Circana’s Crest Commercial Foodservice data, finds that total coffee servings are expected to grow by 5 percent year over year globally, exceeding the current pace of 3 percent in the U.S. 

Similar growth was seen in 11 out of 12 countries tracked in the data, with China leading all other participants with the highest coffee consumption growth rate. South Korea was the only country not to experience any growth.

According to the Circana report, more than $36 billion was spent on coffee servings last year with several patterns emerging among coffee consumers. Hot coffee remains the most popular choice for coffee drinkers, however, cold coffee continues to make gains, particularly in China where cold coffee consumption grew at a 20 percent compound annual growth rate between 2019 and 2023 and made up 33 percent of total coffee consumption. 

Coffee also outpaced tea and carbonated soft drinks at a rate of 4 percent and 3 percent, respectively year over year.

Trends Show That 1 in 5 Vehicles Sold Worldwide This Year Will Be Electric, the International Energy Agency Reports

By Staff
Wednesday, April 24, 2024 1:16 PM The electric vehicle market (EV) continues to grow globally, despite political and economic pressures. The latest edition of the International Energy Agency’s (IEA) annual Global EV Outlook highlights significant growth, in the U.S. market as well as across China and the European Union. 

New data finds that nearly 1 in 3 vehicles on the road in China will be electric by 2030. Meanwhile, in the U.S. and European Union, this number is 1 in 5. This is in line with current vehicle sales trends, which show that 1 in 5 cars sold worldwide will be electric this year. The IEA believes the continued surge in demand will trigger changes throughout the global auto industry, resulting in a reduction in oil consumption for transport. 

Despite economic pressures, global electric car sales are expected to remain strong in 2024, hitting more than 17 million by the end of the year. The first quarter of 2024 has already shown strong sales of EVs, growing by 25 percent compared with 2023. The report noted the number of electric cars sold globally in the first 3 months of 2023 is on par with total sales for 2020. 

According to the report, the future success of electric vehicle sales will depend greatly on supply chain and policy improvements. The report said that electric vehicle sales could reach 2 in 3 cars by 2035 based on country energy and climate pledges being met on time and in full. This would also reduce reliance on traditional vehicles, while driving the price of electric vehicles down. In 2023, 60 percent of electric vehicles sold in China were less expensive than their conventional counterparts, the report said. 

As a result, the share of EVs on the roads is expected to continue to climb rapidly totaling approximately 45 percent of all car sales. The change would also result in a decreased reliance on oil by around 12 million barrels per day. 

Offering more charging points will also significantly increase the sale of electric vehicles. Already, the number of charging points globally has climbed by more than 40 percent between 2023 and 2022.

Fewer Americans See a Traditional Retirement in Their Future

By Staff
Tuesday, April 23, 2024 1:42 PM The dream of retirement is getting further out of reach for many Americans. This year more than 4 million Americans will turn 65, and the ninth annual Nationwide Advisory Authority survey, powered by the National Retirement Institute, is showing that traditional dreams of retirement are out of reach for many people. The survey found that more than 69 percent of pre-retiree investors, aged 55 to 65, believe they will not be able to retire at 65. More than two-thirds of pre-retirees believe they will be faced with more challenges related to retirement than their parents and grandparents. 

The survey demonstrates a shift from the classic view of retiring at age 65 and has instead revealed a generation that believes retirement may not be in their future at all. More than 40 percent of pre-retirees believe they will have to keep working to supplement their retirement income, while 27 percent say they will have to live more frugally to fund their retirement goals. 

More than 20 percent said their plans to retire in the past 12 months were put on hold or pushed back. 

Many Americans are no longer relying on traditional safeguards in retirement, with 38 percent of respondents saying they lack confidence in the viability of Social Security. More than 43 percent of respondents said they are not counting on social security as much as they had expected, and 27 percent say they expect to receive less than previously anticipated.

Fewer Americans Are Opting for Dual Health Insurance Coverage, U.S. Census Bureau Report Says

By Staff
Monday, April 22, 2024 11:00 AM Fewer Americans are opting for dual health insurance coverage, according to a new report from the U.S. Census Bureau. The organization recently released its new analysis data from the 2023 Current Population Survey Annual Social and Economic Supplement. The data show that the percentage of adults over the age of 65 with private health insurance and Medicare fell from nearly 48 percent in 2017 to approximately 40 percent in 2022.

The Census Bureau reported that this change in coverage is a reflection of more adults relying on Medicare coverage to pay for medical expenses, adding that the number of older adults relying on Medicare alone was also driven by a drop in the number of seniors receiving private coverage. According to the report, dual coverage rates have fallen every year, except for 2020 and 2021.

Adults aged 65 to 69 saw dual coverage decrease by 8.0 percentage points and Medicare alone increased 6.3 percentage points, according to the report. Adults aged 70 to 79 saw their dual coverage decrease by 9.2 percentage points to 40.4 percent and Medicare alone increased 7.9 percentage points to 46.9 percent. Adults aged 80 and older saw dual coverage decrease by 7.9 percentage points to 37.8 percent and Medicare alone increased by 7.6 percentage points to 50.8 percent.

Changes in employment status also played a significant role in access to coverage. More Americans than ever are remaining in the workforce past the age of 65, allowing for higher rates of private coverage and less reliance on Medicare. This was not enough to shift the decrease across all employment status in the rate of dual private and Medicare coverage between 2017 and 2022.

For older adults who work full-time, dual coverage dropped by 8.9 percentage points to 40.0 percent and Medicare alone increased 4.0 percentage points to 24.0 percent.

Accidents Due to Distracted Driving Fall, NHTSA Reports

By Staff
Friday, April 19, 2024 3:30 PM Drivers are getting the message that driving while using a cell phone can result in traffic fatalities. The National Highway Traffic Safety Administration (NHTSA) released its latest distracted driving data to spearhead their annual “Put the Phone Away or Pay” campaign. 

The new data appears to show that drivers are decreasing cell phone use while driving. In 2023, NHTSA statistics showed that 40,990 people died in motor vehicle traffic crashes, falling 3.6 percent compared to 42,514 fatalities in 2022.  

In 2022, 8 percent of all fatal crashes, 12 percent of injury crashes and 11 percent of police-reported motorcycle traffic crashes were the result of distraction-affected driving, according to the latest NHTSA data.

There were more than 3,330 people killed, and 289 injuries directly related to distracted driving. According to the NHTSA, nearly 5 percent of all drivers involved in fatal accidents were the result of distracted driving at the time of the crash. In 2022, 368 reported fatal traffic crashes were the direct result of cell phone usage.

Drivers aged 25 to 34 had the highest rates of distracted driving, making up 21 percent of drivers in fatal traffic crashes, and accounted for 23 percent of all distracted drivers and 28 percent of drivers distracted by cell phones in fatal crashes.

This year, the U.S. Department of Transportation (DOT) has made strides to help reduce the number of accidents and fatalities from distracted driving. In a recent report from the DOT, titled 2024 Progress Update, calls have been made for a revision to the distracted driving prevention campaign material to better reflect the evolution of distracted driving dangers as well as updated content during high-visibility enforcement activities.

Early Easter Holiday and Tax Refunds Push March Retail Sales in a Positive Direction, NRF Says

By Staff
Thursday, April 18, 2024 4:01 PM Retail sales continued to move upward in March as tax refunds and job growth put more consumers in a spending mood. New data from U.S. Census Bureau showed that overall retail sales in March rose by 0.7 percent, seasonally adjusted, from February. This is an increase of 4 percent, unadjusted year-over-year. This continues to build on the positive numbers seen in February when retail sales rose 0.9 percent month- over-month and 2.1 percent year-over-year. 

An early Easter also pushed retail sales in a positive direction as consumers hit the stores to purchase food, candy and décor for the holiday. 

Excluding automobile dealers, gasoline stations and restaurants, March core retail sales rose 1.1 percent in March and 3.2 percent year-over-year. Meanwhile, core retail sales rose 3.9 percent year-over-year, based on a three-month moving average as of March. 

Earlier this month, VMAIL reported that core March sales had risen 0.23 percent, seasonally adjusted from February, and were up 2.92 percent unadjusted year-over-year. That compared with increases of 0.27 percent month-over-month and 2.99 percent year-over-year in February.

Drowsy Driving Kills 800 Americans Each Year, AAA Foundation for Traffic Safety Reports

By Staff
Wednesday, April 17, 2024 1:53 PM It seems Americans are not getting enough sleep and it’s affecting drivers’ safety. As stated in a report by the American Automobile Association Foundation for Traffic Safety, data obtained from the National Highway Traffic Safety Administration (NHSTA) indicated that on an annual basis, there were more than 91,000 police reported crashes, resulting in 50,000 injuries and 800 fatalities due to drowsy driving.  

The report noted that it can be difficult to get accurate numbers related to drowsy driving because it is often at the police officer's discretion to report that driving while drowsy was a factor. The NHTSA believes the actual numbers could be significantly higher. 

A 2023 NHTSA study, Drowsiness and Decision-Making During Long Drives: A Driving Simulation Study, looked at the impact of driving drowsy on overall driver safety.  

The 3-hour long simulated driving experiment resulted in startling reactions on the part of drivers. The study found that participants both underestimated and overestimated their levels of drowsiness relative to the objective eye-based measure. It was slightly more common for participants to underestimate how drowsy they were.
 
Time of day also played a significant role in when fatal accidents resulting from drowsy driving occurred. Most fatal drowsy driving crashes occurred between 11:00 p.m. and 2:59 a.m., while the percentage of drivers who were drowsy was highest among those who crashed between the hours of 3:00 a.m. and 6:59 a.m.

Increase in the Freight Transportation Services Index Signals Relief in For-Hire Transportation Industry

By Staff
Tuesday, April 16, 2024 3:44 PM The Freight Transportation Services Index (TSI) rose in February, according to a new report from the U.S. Department of Transportation Bureau of Transportation Statistics. The TSI rose 3.1 percent in February from January, following a decline in early 2024. The TSI monitors freight carried by the for-hire transportation industry. 

February figures were 2.3 percent below the industry’s all-time high index of 141.3 in August 2022. In January the index reached 134.1, with experts noting the increase in February was due to seasonally adjusted increases in trucking, air freight, rail carload, rail intermodal and water. 

For-hire freight shipments in February 2024 reached 138.1, more than 45 percent higher than the record low of 95 low in April 2009, during the recession, and 2.3 percent below the historic peak reached in August 2022.

The report stated the increase in the freight index is the largest increase since July 2020. Since August 2021, the index has increased 3.7 percent, while the February TSI exceeded the pandemic low of April 2020 by 11.3 percent, increasing month over month in 27 of 46 months during this time period.

Retail Sales Are Up 0.36 Percent in March, Says NRF

By Staff
Monday, April 15, 2024 2:06 PM Retail sales continue to move in a positive direction, according to a new report from CNBC/National Retail Federation Retail Monitor, powered by Affinity Solutions, that shows March retail sales continue to show signs of recovery after inflation sent sales plummeting in 2023. 

Excluding automobiles and gasoline, retail sales for March were up 0.36 percent, seasonally adjusted month over month and up 2.72 percent unadjusted year over year. This is up slightly from year-over-year figures in February, which showed retail sales were up 2.72 percent. 

In March, core retail sales, excluding restaurants, automobile sales and gasoline, were up 0.23 percent month over month and 2.92 percent year over year. This is down slightly from February’s month-over-month figures of 0.27 percent and 2.99 percent, respectively. 

Overall, first quarter sales were up 2.65 percent year over year with core sales up 3.12 percent. According to the report, March sales were up in six out of nine categories, with online sales, sporting goods, health and personal care stores seeing the sharpest increases.

Online and non-store sales were up 2.48 percent month over month in March, and more than 15 percent year over year. Meanwhile, sporting goods sales were up 0.86 percent month over month and 8.33 percent year over year. 

Sales dropped in the building and garden supply sector, down 2.13 percent month over month and 3.97 percent year over year. Furniture and home furnishings were also down 1.46 percent month over month and 5.28 percent year over year. 

Electronics and appliances also saw sharp decreases, falling 2.27 percent month over month and 5.92 percent year over year.

Cargo Volume at Major Ports May Top 2 Million Units in May, NRF Predicts

By Staff
Friday, April 12, 2024 3:50 PM Inbound cargo volume at major container ports across the U.S. is expected to reach two million units in May. This is the first time since the fall of 2023 that imports have grown. The new report, Global Port Tracker, was released by the National Retail Federation and international trade consulting firm Hackett Associates. The report finds that despite improvements in the supply chain, growth was still staggered at container ports through 2023.

In January, the port handled 48,000 twenty-foot equivalent units. With the timing of reopening of the harbor still undetermined, future cargo containers will have to find other locations to use. 

Other pressures on exports and imports into the U.S. in recent months, including carriers being rerouted around the Red Sea and Suez Canal after attacks on vessels, have also impacted the volume of cargo ships entering the country. This has forced many shipping companies to add additional vessels and increase vessel speed to make up for lost time.

Foreign Born Population Is on the Rise in the U.S.

By Staff
Thursday, April 11, 2024 2:23 PM The number of foreign-born people living in the United States is on the rise. A new report from the U.S. Census Bureau, titled, The Foreign-Born Population in the United States: 2022, shows the foreign-born population rose by 15.6 percent from 2010 to 2022.

In 2022, the total foreign-born population in the U.S. reached 47 million, or nearly 14 percent of the total population. This is an increase of more than 6 million since 2010. 

According to the U.S. Census Bureau, the foreign-born population is defined as anyone living in the United States who was not a U.S. citizen at birth, including naturalized U.S. citizens, lawful permanent residents (immigrants), temporary migrants such as foreign students, humanitarian migrants (for example, refugees and asylees) and unauthorized migrants.

More than half of the foreign-born population was naturalized with European- and Asian-born residents the most likely to be U.S. citizens, with naturalization rates of 67.4 percent and 62.8 percent, respectively.

Meanwhile, more foreign-born people are finding employment in the U.S. More than 63 percent of foreign-born residents over the age of 16 are employed while one-third of civilian employed foreign-born workers have jobs in management, business, science and the arts.