Located in the heart of the San Francisco Bay Area, Oakland is an exciting and diverse city with a unique charm that sets it apart from its neighbors. From the stunning views of the Bay to the bustling arts and culture scene, there is no shortage of things to explore and experience. Residents of Oakland enjoy a rich history, a thriving culinary scene, and a strong sense of community that makes it a truly special place to call home. If you’ve been thinking, “Should I move to Oakland?” you’re in the right place. In this article, we’ll discuss the pros and cons of this city to help you decide if it’s the right place for you. Let’s get started.
Oakland at a Glance
Walk Score: 75 | Bike Score: 65 | Transit Score: 57
Median Sale Price: $840,000 | Average Rent for 1-Bedroom Apartment: $2,470
Oakland neighborhoods | Houses for rent in Oakland | Apartments for rent in Oakland | Homes for sale in Oakland
Pro: Proximity to nature and outdoor activities
Oakland offers a blend of urban living and access to nature, making it an ideal location for outdoor enthusiasts. The city is surrounded by beautiful parks and green spaces. Including Joaquin Miller Park and Redwood Regional Park, offering miles of hiking and biking trails amidst towering redwoods. Additionally, Lake Merritt, located in the heart of the city, provides a scenic spot for jogging, picnicking, and bird watching. This easy access to nature allows locals to enjoy a variety of outdoor activities without having to venture far from home.
Con: High cost of living
One of the major drawbacks of living in Oakland is the high cost of living, which is 39% above the national average. Housing prices have skyrocketed in recent years, making it challenging for some to afford a home in the city. Rent prices are also steep, putting financial strain on residents. The high cost extends beyond housing, affecting groceries, utilities, and other essential services, making it difficult for some individuals to manage their budgets comfortably.
Pro: Diverse culinary scene
Oakland’s culinary scene is as diverse as its population. From authentic Mexican taquerias and Ethiopian restaurants to upscale Californian cuisine, the city caters to all taste buds. The Temescal neighborhood, in particular, is a foodie’s paradise, known for its innovative dining options and trendy cafes. This culinary diversity not only enhances the city’s cultural richness but also provides residents with an endless variety of dining experiences.
Con: Traffic congestion
Like many urban areas, Oakland suffers from significant traffic congestion. The city’s infrastructure struggles to keep up with the growing population, leading to crowded highways and extended travel times. The Bay Bridge, connecting Oakland to San Francisco, is notorious for its traffic jams, often resulting in long commutes for residents working in the neighboring city. Public transportation options are available, but they not serve all areas and suburbs equally, adding to the daily commute challenges.
Pro: Dynamic arts and culture scene
Oakland’s arts and culture scene is a significant draw for both residents and visitors. The city is home to a plethora of galleries, theaters, and live music venues that showcase a wide range of artistic expressions. The First Friday street festival is a prime example, transforming the streets into a lively celebration of art, food, and music every month. Additionally, the Oakland Museum of California offers an in-depth look at the state’s rich history, art, and natural sciences, making it a cultural hub in the city.
Con: Air quality issues
Oakland faces challenges with air quality, particularly during the summer months and wildfire season. The city’s location and topography can trap pollutants, leading to days with unhealthy air quality levels. Wildfires in the region exacerbate the problem, sometimes resulting in smoke and ash affecting the city for extended periods. These air quality issues can sometimes limit outdoor activities and impact those with respiratory conditions.
Pro: Thriving tech and startup ecosystem
Oakland has emerged as a burgeoning hub for technology and startups. This has attracted entrepreneurs and innovators looking for alternatives to Silicon Valley. The city offers a supportive environment for new businesses, with co-working spaces, incubators, and a collaborative tech community. This ecosystem not only contributes to the local economy but also provides job opportunities and fosters innovation.
Con: Infrastructure and public services challenges
Oakland’s infrastructure and public services face significant challenges. These issues include aging roads, limited public transportation options in certain areas, and a need for more robust public amenities. These issues can affect daily life, from commuting to accessing essential services. Efforts are underway to address these challenges, but progress can be slow, and funding is often limited. The state of the city’s infrastructure underscores the need for continued investment and innovative solutions to support Oakland’s growing population.
Pro: Innovative environmental initiatives
Oakland is at the forefront of environmental sustainability, with innovative initiatives aimed at reducing the city’s carbon footprint and promoting green living. The city has implemented policies to encourage recycling, composting, and the use of renewable energy sources. Urban farming and community gardens are widespread, contributing to local food security and fostering environmental awareness.
Jenna is a Midwest native who enjoys writing about home improvement projects and local insights. When she’s not working, you can find her cooking, crocheting, or backpacking with her fiancé.
In the Midwest, Kansas is an American experience with its wide-open spaces, friendly communities, and rich cultural heritage. Living in Kansas means embracing a laid-back lifestyle amidst the sprawling plains and lively cities. From the bustling metropolis of Wichita, known for its aerospace industry and cultural attractions, to the charming college town of Lawrence, home to the University of Kansas, the Kansas offers various experiences for residents to enjoy. However, there are cons to living there. In This ApartmentGuide article, we’ll uncover the pros and cons of living in Kansas, so you can learn what life is like in the “Sunflower State.”
Renting in Kansas snapshot
1. Pro: Rich historical heritage
Kansas has a rich historical heritage, deeply intertwined with the story of the American West. From its role in the Civil War to its iconic cowboy culture depicted in countless tales, the state’s history is both diverse and captivating. Visitors can explore historic sites such as the Brown v. Board of Education National Historic Site in Topeka or the Old Cowtown Museum in Wichita, offering a glimpse into the past.
2. Con: Tornado Alley
Kansas, situated in Tornado Alley, experiences a high frequency of severe weather events, which can pose a safety concern for residents. The state’s susceptibility to tornadoes, particularly during the spring and summer months, necessitates preparedness and vigilance among its inhabitants.
3. Pro: Affordable cost of living
4. Con: Limited public transportation
Kansas faces challenges in public transportation infrastructure, with limited options available for residents, particularly in rural areas. While major cities like Wichita and Kansas City have some public transit systems in place, they may not be as extensive or efficient as those found in larger metropolitan areas. Consequently, cities like Lawrence has a transit score of 35, meaning there is only some transit available.
5. Pro: Expansive natural beauty
Kansas is home to expansive natural beauty, characterized by its sweeping plains, rolling hills, and scenic landscapes. From the picturesque Flint Hills in the eastern part of the state to the rugged beauty of the Gypsum Hills in the west, Kansas offers residents abundant opportunities for outdoor recreation and exploration.
6. Con: Hot summers
The “Sunflower State” experiences hot summers, with temperatures often soaring above 90°F and occasionally reaching triple digits, creating discomfort for some residents. The combination of high temperatures and humidity can make outdoor activities challenging, leading to increased risk of heat-related illnesses. If you’re moving to the area, you’ll want to take some time to adjust to the high temperatures in the summer.
7. Pro: Vibrant cultural scene
Cities like Wichita host annual events such as the Wichita River Festival, featuring live music, food vendors, and cultural performances, while Lawrence’s eclectic arts scene includes galleries, theaters, and music venues like the iconic Liberty Hall. These are just a few examples of how Kansas has a great cultural scene that has something in store for all.
8. Con: Economic dependence on agriculture
The economic dependence on agriculture can present challenges for residents, as fluctuations in crop prices and weather conditions directly impact the state’s economy. Reliance on agriculture can lead to economic instability during times of drought, floods, or market downturns, affecting job opportunities for some.
9. Pro: Small-town charm
The state exudes small-town charm, with many communities offering tight-knit neighborhoods, friendly locals, and a relaxed pace of life. Towns like Lindsborg, known as “Little Sweden,” showcase unique cultural heritage through festivals, local artisans, and quaint Main Streets lined with shops and cafes.
10. Con: Flat terrain
Kansas’ predominantly flat terrain can be perceived as a drawback for some residents, lacking the dramatic landscapes found in other regions. The absence of geographical features such as mountains or coastlines may limit outdoor recreational opportunities and scenic views.
11. Pro: Relaxed way of life
Residents often enjoy a laid-back atmosphere, where stress levels tend to be lower compared to more densely populated areas. Whether it’s leisurely conversations with neighbors on the front porch or enjoying outdoor activities like fishing in one of the state’s many lakes, Kansas fosters a sense of tranquility.
10. Con: Super windy
Kansas is renowned for its windy conditions, with gusts frequently sweeping across the plains, especially during the spring months. While wind can be invigorating, it also presents challenges such as blowing dust and debris, making outdoor activities like picnics or gardening more difficult.
Methodology : The population data is from the United States Census Bureau, walkable cities are from Walk Score, and rental data is from ApartmentGuide.
Bonds managed modest to moderate gains after digesting all of the morning’s economic data and events. None of the reports were too exciting and one might conclude that traders were slightly more interested in buying bonds regardless of the data. Yields flat-lined in stronger territory ahead of the Fed. The announcement itself was largely as-expected. The same could be said of the press conference, but with the qualification that Powell definitely stopped short of expressing as much concern about inflation as the recent data justified. Rate cuts aren’t likely any time soon, but the next move is still seen as much more likely to be a cut rather than a hike. Markets also appreciated Powell’s reiteration that the Fed wouldn’t hesitate to do what it needed to do based on the data/economy without considering political implications.
ADP Employment
192k vs 175k f’cast, 208k prev
TSY refunding announcement
increases in shorter part of the curve
no increases in 10yr and up
small buyback announced
S&P Manufacturing PMI
50.0 vs 49.9 f’cast, 51.9 prev
ISM Manufacturing
49.2 vs 50.0 f’cast, 50.3 prev
ISM Prices
60.9 vs 55.0 f’cast, 55.8 prev
08:59 AM
unchanged overnight and modestly stronger after ADP/Treasury. MBS up an eighth. 10yr down 2.3bps at 4.66
09:46 AM
Slightly stronger leading up to S&P PMI. No reaction afterward. MBS up 7 ticks (.22). 10yr down 3.2bps at 4.65
10:05 AM
No major reaction to 10am data. 10yr yields are down 4bps at 4.643 and MBS are up nearly a quarter point.
02:18 PM
Modestly stronger after Fed. 10yr down 4.2bps at 4.462. MBS up a quarter point
02:47 PM
Additional gains as Powell press conference continues. MBS up half a point. 10yr down 10bps at 4.587
Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.
The bottom line is the housing market remains in flux and is once again adjusting to the likelihood of interest rates remaining higher for longer after being teased by the potential of a falling rate environment.
This flux has created far more volatility in the housing market, particularly in recent weeks, with the MOVE Index — a measure of rate volatility in the U.S. Treasury market — jumping to as high as 121 in mid-April after ending March near 85.
Ben Hunsaker, a Beach Point Capital Management portfolio manager who is focused on securitized credit, said that during the past year, nonqualified mortgage (non-QM) AAA bond spreads have actually contracted from 155 to 135, while agency mortgage-backed securities (MBS) spreads have widened from about 118 to 134 over the same period.
“With agency spreads moving out 10 to 15 basis points, you would expect that non-QM spreads also have to widen eventually, otherwise the market’s a little bit out of sync,” Hunsaker said. “On a forward-looking basis, you would expect you don’t have the same tailwinds as you did before.”
Volatility in the Treasury market, which trades at a shifting spread below that of mortgage rates, also translates into uncertainty among housing market investors. Market observers say this normally leads to investor hesitancy and a tendency to keep more money parked on the sidelines.
“When interest rate volatility goes up, you generally have lower fund flows, which you’ve seen over the last few weeks,” Hunsaker said.
On top of that, mortgage origination volumes are projected to be flat this year in the agency (Fannie Mae, Freddie Mac and Ginnie Mae) sector, and only slightly better on the non-agency (non-QM) side compared to 2023, according to market experts.
Non-QM mortgages include loans that cannot be purchased by Fannie Mae or Freddie Mac. The pool of non-QM borrowers includes real estate investors, fix-and-flippers, foreign nationals, business owners, gig economy workers and the self-employed.
What does this market uncertainty — marked by low origination volumes and a move toward higher rates for longer — mean for the secondary mortgage market, which creates liquidity for the primary mortgage market via securitization and has a heavy finger on the scale in determining interest rates for homebuyers?
If bond yields rise in the secondary market due to a supply-demand imbalance or because of increased perceived risk, then that also tends to put upward pressure on mortgage rates in the primary market.
HousingWire interviewed a range of experts across the secondary market to get a pulse on the dynamics at play at the end of April across the following sectors: whole loan trading, agency and non-agency MBS, and mortgage servicing rights (MSRs).
Following are excerpts from their responses that reflect on the good, the bad and the ugly of the current market.
Whole loan sector
“When we came into the year, we thought we were in for as many as five or six rate cuts. That was a problem for sellers of loans. For mortgages, specifically 30-year fixed rate, it was hard to find a buyer willing to make a strong premium payment [on a whole loan purchase] when you think you are going to get four or five or six rate cuts, because that meant rates were going to fall and [mortgage] prepayments [due to refinancing] were going to increase.
“However, what we’re discovering is that those folks that had the courage to put that trade on back in the third and fourth quarter of last year are in the first quarter of this year being rewarded. Because if we are now looking at only one rate cut [in 2024], maybe even one hike — although I think that’s still a pretty low probability — but let’s just say we’re flat — then prepayment speeds should remain low.
“Higher-coupon loans now may [offer] a higher rate of return for longer than someone might have anticipated in a rate assessment that was at the beginning of 2024. … So, basically, if I’m trading [as a seller] a 7% loan right now, I may get a premium — like a solid 102 [over par] or whatever.
“The buyer is going to be happy because the prepayment speeds are likely to remain low given the current Fed stance [of higher for longer], and you can amortize that premium over a longer period of time to get a better yield. So, both seller and buyer are happier with the newer loan.“
— John Toohig, head of whole loan trading at Raymond James and president of Raymond James Mortgage Co.
“There’s a lot of cash on the sidelines. There’s a lot of money out there. This translates into whole loans too.
“In RPL and NPL, which are reperforming loans and nonperforming loans, there’s a ton of demand. We just put a bid out recently and … had over 30 bids. That tells you that folks are trying to grab those loans, either for the real estate — if it’s a nonperforming loan … such as for rentals, accumulating assets for their portfolio — or if it’s reperforming, to get cash flows at a discount.
“Those loans [RPL and NPL] are really rich on the demand side, but the only sellers are those who are forced to sell because it’s at a discount, with the stuff we’ve seen trading in the 80s [below par].
— JB Long, president of Incenter Capital Advisors
Non-agency sector
“Rate volatility has persisted in the market. It’s essentially like playing a game of Keno [with bets being placed on] what number when, and that money can be lost doing so is not surprising. From my perspective, transaction volume and mortgage origination volume has been on its back — and stayed on its back — for the last year and a half.
“ … There is a book called “Who Moved My Cheese.” And it is a very simple book that highlights a very important premise. A mouse goes looking around, looking around, looking around, and spends all its time looking for cheese. Then [after it finds the cheese], it just keeps going back to the same place, but the cheese is gone.
“The mouse forgot the whole reason he ever found the cheese in the first place, and that’s because the mouse remained nimble and adaptive, as opposed to just hitting the same button as many times as he possibly could. The point is we have to continue to evolve with an evolving market.
“ … [For example], one of the big changes in the [agency] CRT [credit risk transfer] market has been a decision by the GSEs to not issue the most subordinate [securities] tranches. They are the riskiest tranches … and they’re the ones that offer the highest return. The supply of that profile has diminished considerably because they’re not issuing it anymore.
“… So, what happens is those investors go to non-QM subs. … There’s a lot of demand for that sub now [securities backed by non-QM mortgages, particularly those linked to home equity loan products].“
— Peter Van Gelderen, specialist portfolio manager in the fixed-income group and co-head of Global Securitized at TCW
“Inflation is running hotter than expected, but I wouldn’t say it’s out of control. We’ve just been kind of consistently in a range that’s higher than what the Fed would like. .. Rates do feel rich. They do feel high, but I think the market has adjusted pretty well to where the rates are and certainly it’s within the range of expectations.
“The credit spreads [for non-agency MBS] have come in throughout the year, and so the [non-agency] securitization market is open, and it’s functioning from the originator through the aggregator to the end buyer. Everyone can still make it work.
“It’s by no means the best market anyone’s ever seen, but [non-agency mortgage] originations are growing. … It’s a market that’s diverse in product types and participants.“
— Dane Smith, senior managing director and president of Verus Mortgage Capital
[Editor’s Note: Kroll Bond Rating Agency (KBRA) expects 2024 issuance for non-agency MBS to be approximately $67 billion, up 22% year over year. Home equity lines of credit (HELOCs) and closed-end second (CES) originations are expected to account for $11 billion of the increase. KBRA’s measure of non-agency loans encompasses the prime jumbo, nonprime/non-QM, and home equity lending spaces, as well as credit-risk transfer deals.]
Agency sector
“The lock-in effect [of homeowners staying in place due to low mortgage rates] has taken so many homes off the market that you’re seeing reduced sales volume, which creates fewer issuances of mortgages so that the market doesn’t have to metabolize that many loans.
“… But you still have this issue that the Fed displaced real money investors [in the agency MBS acquisition market] for a whole business cycle, a decade, [before pulling back from the market starting in 2022] and that market just doesn’t reappear overnight.
“… We’ve never had this many people that have a loan that’s so far below prevailing rates. So, we’re in a part of the cycle that people can’t look to a model and say, ’This is what’s going to happen,’ because we’ve never been here before.
“… Lower interest rates will create more [agency MBS] issuance, but more issuance creates a wider basis [spread from Treasurys] because there’s now a lack of investor demand versus the added MBS supply, and this creates higher primary mortgage rates to account for the lower investor bids for the excess MBS supply.
“… It’s a structural issue that I would love to see more focus on … because if you don’t have a couple of trillion dollars of excess balance sheet out there somewhere that’s priced appropriately, then the homeowner is going to end up paying more for their mortgage than they otherwise would.“
— Sean Dobson, chairman and CEO of real estate investment firm Amherst
“I think agency spreads have a pretty high correlation to interest rate volatility, so when you go from relatively low interest rate volatility, like where we came into April, to where we are today, it’s a pretty big shock to the agency mortgage market.
“And accordingly, you’ve seen agency spreads widen pretty materially. [April has] been a really bad month for agency mortgage-backed securities. … The supply-demand for agency MBS is probably in balance, however, and it’s in balance because there’s very light creation of new agency MBS [about $232 billion of agency MBS issuance in Q1 2024, compared with $223 billion in Q1 2023, according to the Securities Industry and Financial Markets Association (SIFMA)].
“… The money managers who really drove spreads tightening [in the agency market] from middle of last year to the end of last year, they’ve become pretty overweight in agency MBS. … But there’s still a lot of annuity money being deployed from annuity sales, and so that should be a continued tailwind [for the overall secondary mortgage market].
“Insurance is really the 900-pound gorilla in the room driving the bus, so they matter a lot, and there’s not a lot of credit creation that can satiate their needs.“
— Ben Hunsaker, portfolio manager focused on securitized credit for Beach Point Capital Management
MSR sector
“You were able to get [MSR] trades off [much of] last year with interest rates somewhat certain. But then when the uncertainty hit [late in the year, with rates declining] that slowed the fourth-quarter [deal volume], and that’s what was reflected [in the number of deals closing] when we came into this first quarter.
“Then all this data starts coming out and it became obvious that [rate cuts were] not going to happen, and that gave a lot more confidence to the buy side. [MSRs tend to price better in a high or rising rate environment because prepayment speeds are reduced. They tend to lose value in a falling rate environment as mortgage prepayments increase, reducing the payout of MSRs.]
“So, look, pricing began to pick up [as it became clear rate cuts were not likely in the near term], but we also saw an interesting phenomenon. And that is the capital that was tied to highly efficient, highly capable [refinance- and home equity loan-focused] recapture platforms decided it was not as concerned about interest rates [going] either way.
“If rates do not move, [they are] comfortable with the pricing that they’re paying today based on just the steady prepayment speeds and the cash flows, and they’re clipping coupons each month based off of those payments coming in. However, when rates do move, they are going to be in position to recapture [those customers via refinancing].
“… So, we now have a strong appetite for the MSR asset, whether it’s out of the money — which to us is below prevailing market rates — or at the money, and we also have a strong demand for both conventional as well as government [MSR assets].
“I will paraphrase a seasoned veteran in the industry that I was talking to recently, who said candidly, ’I have never seen the market like it is today — how extremely active and busy it is.’
“I’m not calling a peak yet. There’s a lot of interest from some pretty significant [investor] sources, who have a lot of capital [and] who are still looking to buy … And it’s driven again by [a desire to] put units on their platform, maintaining efficiencies, while also then having the ability to recapture when — and who knows when — that market opportunity presents itself.“
— Tom Piercy, chief growth officer at Incenter Capital Advisors
[Editor’s Note: Year to date, Incenter has announced auctions for some $15 billion in new bulk MSR deals, which does not include privately negotiated deals.]
“I don’t know if this is the peak or if … rates are going to continue to go up from here, and MSR values are going follow suit or not. But I think people are of the mindset that it’s now higher for longer [on rates].
“It’s hard because of low [housing] inventory levels and higher interest rates to bring in new originations, but that’s the reason why so many of these servicers keep going back to the same well, with a focus on offering cash-out refinance [or closed-end second liens, or home equity lines of credit] to existing customers, given that can be a source of some volume.
“It’s been a strong [MSR] market [so far this year], with some really attractive execution levels that are, dare I say, being influenced by one’s ability to recapture these borrowers. … It’s hard to convince a borrower with a 3% note rate to cash-out refinance into a 7% note rate, but they can still tap their equity by taking out a HELOC or closed-end second without impacting the rate on their first lien.
“I’ve got probably three or four deals I’m currently working on, so [MSR] volume and pricing are strong. We’ve seen some high-5 multiple trades [historically a great deal in this measure of pricing on MSR pools].
“I think [MSR trading volume] this year is going to be on par, if not slightly better, than last year [which would mark the fourth year in a row that the MSR market has recorded trading volume near the $1 trillion level].“
— Mike Carnes, managing director of MSR valuations at Mortgage Industry Advisory Corp. (MIAC)
[Editor’s Note: Year to date, MIAC has announced auctions for some $6.4 billion in new bulk MSR deals, which does not include privately negotiated deals.)
Mortgage rates have climbed five weeks in a row and are now at their highest levels since the week before Thanksgiving.
The average rate on the 30-year fixed-rate mortgage rose to 7.32% in the week ending May 2, according to rates provided to NerdWallet by Zillow. It was an increase of nine basis points over the previous week. (A basis point is one one-hundredth of a percentage point.) It marked the highest level since mid-November.
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The number one rule of the marketplace is to understand your customer. Knowing what they need, what they want and what they fear is fundamental for success. The housing market has shifted. Today it’s dominated by baby boomers who make up 39% of all homebuyers and 52% of all home sellers.
Known as “Peak 65”, in 2024 more than 12,000 people per day will turn 65. The massive age wave is cresting over the next three years, and by 2030 all boomers will have turned 65. This has baby boomers deeply concerned about retirement, as they are scrambling to prepare for life after work. The expensive and limited housing inventory today has created a scarcity mentality, that has Realtors struggling to provide appropriate housing for an aging population.
The Retirement Trifecta
To retire successfully, to meet the challenges and manage the risks boomers face, they will need to secure their own personal, Financial Trifecta of:
Income for living, care for aging and housing forever.
These critical needs are the fundamentals of retirement planning, and “Peak 65” demographics will largely reshape housing, real estate and lending for decades to come.
To understand your boomer customer is to know what they fear most. In this age of longevity, when the boomer generation must plan for decades of life after work, the big fear is running out of money. In my experience of serving boomers for more than four decades, the biggest fear is the loss of their independence, and becoming a burden on their children if they run out of money.
Accommodate the trifecta
Those Realtors, builders and originators who choose to serve this massive market shift, will need to accommodate the Retirement Trifecta. Baby boomers value relationships with those providers, that customize solutions to fit their needs and wants to retire.
Again, the trifecta is:
Income for living: In retirement, a boomer must establish sufficient and sustainable streams of income to meet the rising costs of living longer, in this new inflationary era.
Care for aging: Aging is a family affair that requires both financial as well as care-giver strategies, with the cash to pay for it.
Housing forever: Boomers must secure housing that is safe and appropriate for aging, through all the stages of retirement.
Housing costs will likely be the number one expense through retirement. Because 78% of boomers surveyed want to age-In-place, costs of home modification and maintenance will need to be carefully planned out.
Boomers in pursuit of their Trifecta will need us to understand and accommodate the urgent demands of their retirement. A housing professional’s value proposition must extend beyond building and selling homes and originating mortgage loan transactions. The housing industry must provide real solutions to the challenges that a rapidly growing, elder centric population demands. The industry professionals with the vision to adapt their services will be those who will thrive and help usher in a great new era of American housing.
The housing wealth solution
The baby boom generation has created more housing wealth than any other generation in history. Today, boomers have approximately 13 trillion in available home equity. Boomers home equity will likely grow past 20 trillion by the end of this decade. Today, boomers are living in the very asset needed to help provide for their personal Retirement Trifecta.
To solve the problems we face, and unleash the possibilities of the future, we as an industry must elevate the scope and purpose of our work. We need inspired home-building that includes universal design. We need Realtors trained in matters of aging-in-place, who are committed to guiding senior buyers into buying decisions that will provide housing security for the long-term. We also need a growing professional class of strategic mortgage planners committed to providing home equity conversion solutions that address the demands of the Retirement Trifecta.
From my experience as a home builder, and a mortgage planning specialist, having sat down at more than 4,000 kitchen tables, serving the housing needs of homeowners since 1976, this truth I confidently share with you.
“The single most impactful quality of life decision people make, is the home in which they choose to live.”
Home is where family happens, and we who provide housing have the great privilege, through our life’s work, to make the dreams of those we serve, the possible dream.
To contact the editor responsible for this story: [email protected]
Despite being a city with a whole lot to offer, Toledo often flies under the radar. From its world-class art museum to its undeniably friendly people, there’s a place for everyone to feel at home in Toledo.
Home to a well-respected university, a handful of pristine parks, and a great local restaurant scene, Toledo is on the rise. From afternoons at Fifth Third Field to lunch at Tony Packo’s we’re here to find out what Toledo is really known for through ten of its top attractions. Enjoy!
1. Toledo Museum of Art
The Toledo Museum of Art is a beacon for the arts in the city. Known for its extensive collection spanning all corners of the globe, the museum gives visitors a profound look at classical and contemporary works. Noteworthy is the Glass Pavilion, which houses a stunning collection of glass art, reflecting Toledo’s historic connection to the glass industry.
2. The Toledo Mud Hens
Toledo takes immense pride in the Toledo Mud Hens, the beloved Minor League Baseball team affiliated with the Detroit Tigers. The team’s games are held at Fifth Third Field, a state-of-the-art ballpark in downtown Toledo, which provides a perfect family-friendly atmosphere. The Mud Hens are a cornerstone of Toledo’s sports scene.
3. University of Toledo
The University of Toledo is a stellar Ohio college, with a wide range of undergraduate and graduate programs. Known for its research and innovation, particularly in areas like engineering, medicine, and business, the university is a hotspot of academic activity and student life.
4. Oak Openings Preserve Metropark
Oak Openings Preserve Metropark is a natural treasure of Toledo, covering over 5,000 acres. It is renowned for its unique sand dunes and oak savanna ecosystems. The park offers tons of trails for hiking, biking, and horseback riding, making it a favorite among outdoorsy types.
5. Wildwood Preserve Metropark
Wildwood Preserve Metropark is another stellar Toledo park. Known for its beautiful manor house and well-maintained trails, the park is a scenic escape with plenty of shade thanks to the lush foliage soaring overhead.
6. Tony Packo’s Cafe
Tony Packo’s Cafe has been a Toledo staple since 1932, famously recognized for its Hungarian hot dogs and pickles. This iconic eatery gained national fame when mentioned in the television show MASH*. Visitors to Tony Packo’s can enjoy a taste of local history alongside their meals, which include a variety of Eastern European dishes, making it a must-visit for all foodies.
7. Fifth Third Field
Home to the Toledo Mud Hens, Fifth Third Field is not just a ballpark but a centerpiece of downtown Toledo’s revitalization. This modern facility is designed with fan experience in mind, offering great views of the game and the skyline.
8. Imagination Station
Imagination Station adds a scientific twist to Toledo. This interactive science museum engages all with hands-on exhibits and activities that make learning more fun than it is in the classroom. From physics to biology, the museum covers a broad spectrum of scientific fields, fostering curiosity in young Ohio minds.
9. Maumee River
The Maumee River is integral to Toledo’s identity. Fishing, boating, and riverside dining are popular here, drawing locals and tourists to enjoy the natural and scenic beauty of the river. The annual Walleye Run is a particularly exciting time to visit, attracting anglers from across the nation.
10. The Valentine Theatre
The Valentine Theatre is a historic venue in Toledo that hosts an array of performing arts. From ballets and musicals to dramatic plays, the theater is a destination that brings high-quality performances to the community.
Mortgage rates rose for the fifth consecutive week, but so far it has had limited influence on this year’s spring home purchase season, Freddie Mac commented.
The 30-year fixed rate mortgage increased by 5 basis points this week to 7.22%, tying a level last seen at the end of November, the Freddie Mac Primary Mortgage Market Survey found.
For April 25, the 30-year FRM was at 7.17%, while for the same week in 2023, it averaged 6.39%.
For the 15-year FRM, the average rose three basis points, to 6.47%, from 6.44% and a year ago at this time, the 15-year it averaged 5.76%.
“With two months left of this historically busy period, potential homebuyers will likely not see relief from rising rates anytime soon,” Sam Khater, Freddie Mac’s chief economist, said in a press release. “However, many seem to have acclimated to these higher rates, as demonstrated by the recently released pending home sales data coming in at the highest level in a year.”
According to LenderPrice data posted late morning on Thursday on the National Mortgage News website, the 30-year FRM was at 7.36%, nearly 10 basis points lower than it was at the same time last week, 7.457%.
One of the elements in pricing mortgages, the 10-year Treasury yield, has remained elevated, even though it was down from one week ago, when on April 25, it peaked at 4.74%. By April 29, it closed at 4.61%.
This reflects market conditions following the Federal Open Market Committee’s decision at its April/May meeting not to change short-term rates. Investors, who once thought a June cut was likely, have backed off that position.
Rates are likely to remain in the 7% range in the future, said Richard Martin, director, real estate lending solutions for analytics firm Curinos, which also tracks mortgage rate data. He added that while he expects rates to fall a bit by the end of the year, he is a little more bearish than Fannie Mae’s latest outlook.
In terms of the impact on mortgage rates, the Fed’s decision was anticipated and already priced in.
“I like to characterize it as no one predicted the level and pace of increases no one’s going to predict the level and paces of decreases,” Martin said. If the FOMC was to cut rates, it would likely be closer to the end of the year.
On April 30, the first day of the FOMC meeting, the yield moved higher again, by a little over 7 basis points to just shy of 4.68%. However, the next day, it went down to 4.60%.
As of mid-morning on Thursday, the 10-year yield was almost 4 basis points higher.
Where mortgage rates currently are makes the environment tough for mortgage originators and title underwriters, but is good for companies that are “servicing-heavy,” said Bose George in a commentary issued after the FOMC meeting.
“Despite the headwinds around mortgage volumes, stable home price appreciation should remain a positive for mortgage credit,” George said.
Martin expects rates to hold in the current range, as does Redfin’s economic research lead Chen Zhao.
“The Fed meeting is unlikely to push mortgage rates down — but the good news is that it won’t push them up, either, which could have happened if the Fed took 2024 rate cuts off the table,” Zhao said in a press release. “Even though housing costs shouldn’t climb much more, they will remain elevated for the foreseeable future, which could push more buyers away.”
Martin is leaning towards a mild recession occurring in the future, noting the U.S. economy is not yet out of the woods.
The 10-year Treasury is just one influence on mortgage pricing; the other is the primary-secondary market spreads related to securitization activity.
Federal Reserve Chairman Jerome Powell noted that the Fed will reinvest any proceeds from mortgage-backed securities run-off over $35 billion into Treasuries. That translates into lower purchase activity
“While this is in line with market expectations, we think this will continue to be negative technical for agency MBS,” George said.
It is not just those spreads that could influence pricing, Martin said, noting the record per-loan production losses originators suffered last year.
Homebuyers are still suffering from interest rate shock, said Jeremy Sicklick, CEO of real estate firm HouseCanary. “With mortgage rates creeping over 7%, many buyers and sellers alike seem to be holding out for rate cuts in the months ahead before jumping into the housing market,” Sicklick said in a press release.
HouseCanary data found the median price of all single-family listings rose 3.2% over a year ago, while closed listings rose 8%.
“With high mortgage rates and surging home prices tamping down market activity, we expect to see a subdued spring buying season continue throughout May, despite inventory increases,” Sicklick declared.
But besides higher rates, the problems around inventory and affordability remain.
“I think we’ve got to solve for those in concert,” Martin said. “Lower rates will help but I don’t think it’s enough to really materially move that needle.”
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90k salary is a good hourly wage when you think about it.
When you get a job and you are making about $24 an hour, making over $90,000 a year seems like it would provide amazing opportunities for you. Right?
The median household income is $68,703 in 2019 and increased by 6.8% from the previous year (source). Think of it as a bell curve with $68K at the top; median means half of the population makes less than that and half makes more money.
The average income in the U.S. is $48,672 for a 40-hour workweek; that is an increase of 4% from the previous year (source). That means if you take everyone’s income and divide the money out evenly between all of the people.
Obviously, $90k is well above the average and median incomes; yet, most people feel like they can barely make ends meet with this higher than average salary.
But, the question remains can you truly live off 90,000 per year in today’s society. The question you want to ask all of your friends is $90000 per year a good salary.
In this post, we are going to dive into everything that you need to know about a $90000 salary including hourly pay and a sample budget on how to spend and save your money.
These key facts will help you with money management and learn how much per hour $90k is as well as what you make per month, weekly, and biweekly.
Just like with any paycheck, it seems like money quickly goes out of your account to cover all of your bills and expenses, and you are left with a very small amount remaining. You may be disappointed that you were not able to reach your financial goals and you are left wondering…
Can I make a living on this salary?
$90000 a year is How Much an Hour?
When jumping from an hourly job to a salary for the first time, it is helpful to know how much is 90k a year hourly. That way you can decide whether or not the job is worthwhile for you.
90000 salary / 2080 hours = $43.27 per hour
$90000 a year is $43.27 per hour
Let’s breakdown how that 90000 salary to hourly number is calculated.
For our calculations to figure out how much is 90K salary hourly, we used the average five working days of 40 hours a week.
Typically, the average work week is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, divide the yearly salary of $90000 by 2,080 working hours and the result is $43.27 per hour.
Just above $40 an hour.
That number is the gross hourly income before taxes, insurance, 401K or anything else is taken out. Net income is how much you deposit into your bank account.
You must check with your employer on how they plan to pay you. For those on salary, typically companies pay on a monthly, semi-monthly, biweekly, or weekly basis.
What If I Increased My Salary?
Just an interesting note… if you were to increase your annual salary by $5K, it would increase your hourly wage by $2.40 per hour.
To break it down – 95k a year is how much an hour = $45.67
That isn’t a huge amount of money, but every dollar adds up to over $45 an hour.
How Much is $90K salary Per Month?
On average, the monthly amount would be $7,500.
Annual Salary of $90,000 ÷ 12 months = $7,500 per month
This is how much you make a month if you get paid 90000 a year.
$90k a year is how much a week?
This is a great number to know! How much do I make each week? When I roll out of bed and do my job of $90k salary a year, how much can I expect to make at the end of the week for my effort?
Once again, the assumption is 40 hours worked.
Annual Salary of$90000/52 weeks = $1,731 per week.
$90000 a year is how much biweekly?
For this calculation, take the average weekly pay of $1,731 and double it.
This depends on how many hours you work in a day. For this example, we are going to use an eight hour work day.
8 hours x 52 weeks = 260 working days
Annual Salary of$90000 / 260 working days = $346 per day
If you work a 10 hour day on 208 days throughout the year, you make $433 per day.
$90000 Salary is…
$90000 Salary – Full Time
Total Income
Yearly Salary (52 weeks)
$90,000
Monthly Salary
$7,500
Weekly Wage (40 Hours)
$1,731
Bi-Weekly Salary (80 Hours)
$3,462
Daily Wage (8 Hours)
$346
Daily Wage (10 Hours)
$433
Hourly Wage
$43.27
Net Estimated Monthly Income
$5,726
Net Estimated Hourly Income
$33.04
**These are assumptions based on simple scenarios.
90k A Year Is How Much An Hour After Taxes
Income taxes is one of the biggest culprits of reducing your take-home pay as well as FICA and Social Security. This is a true fact across the board with an all salary range up to $142,800.
When you start getting into a higher salary range, the more you make, the more money that you have to pay in taxes.
Every single tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
So, how much an hour is 90000 a year after taxes?
Gross Annual Salary: $90,000
Federal Taxes of 12%: $10,800
State Taxes of 4%: $3,600
Social Security and Medicare of 7.65%: $6,885
$90k Per Year After Taxes is $68,715.
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$68,715 ÷ 2,080 hours = $33.04 per hour
After estimated taxes and FICA, you are netting $68715 per year, which is a whopping $21,285 per year less than what you expect.
***This is a very high-level example and can vary greatly depending on your personal situation and potential deductions. Therefore, here is a great tool to help you figure out how much your net paycheck would be.***
Taxes Based On Your State
In addition, if you live in a heavily taxed state like California or New York, then you have to pay way more money than somebody that lives in a no tax state like Texas or Florida. This is the debate of HCOL vs LCOL.
Thus, your yearly gross $90000 income can range from $61,515 to $72,315 depending on your state income taxes.
That is why it is important to realize the impact income taxes can have on your take home pay. It is one of those things that you should acknowledge and obviously you need to pay taxes. But, it can also put a huge dent in your ability to live the lifestyle you want on a $90,000 income.
We calculated how much $90,000 a year is how much an hour with 40 hours a week. But, more than likely, you work more or fewer hours per week.
How Much is $90k Salary To Hourly Calculator
So, here is a handy calculator to figure out your exact hourly salary wage.
In fact, a real estate investment trusts may be a good career path to make this salary higher.
90k salary lifestyle
Every person reading this post has a different upbringing and a different belief system about money. Therefore, what would be a lavish lifestyle to one person, maybe a frugal lifestyle to another person. And there’s no wrong or right, it is what works best for you.
One of the biggest factors to consider is your cost of living.
In another post, we detailed the differences between living in an HCOL vs LCOL vs MCOL area. When you live in big cities, trying to maintain your lifestyle of $90,000 a year is going to be much more difficult because your basic expenses, housing, transportation, food, and clothing are going to be much more expensive than you would find in a lower-cost area.
To stretch your dollar further in the high cost of living area, you would have to probably live a very frugal lifestyle and prioritize where you want to spend money and where you do not. Whereas, if you live in a low cost of living area, you can live a much more lavish lifestyle because the cost of living is less. Thus, you have more fun spending left in your account each month.
As we noted earlier in the post, $90,000 a year is just above the median income of $30000 that you would find in the United States. Thus, you are able to live an above-average lifestyle here in America.
What a $90,000 lifestyle will buy you:
If you are debt free and utilize smart money management skills, then you are able to enjoy the lifestyle you want.
You are able to afford a home in a great neighborhood in MCOL city.
You should be able easily meet your expenses each and every month.
Saving at least 20% of your income each month.
Working to increase your savings percentage every year.
Able to afford vacations on a fairly regular basis; of course by using your vacation fund.
When A $90,000 Salary Will Hold you Back:
However, if you are riddled with debt or unable to break the paycheck to paycheck cycle, then living off of 90k a year is going to be pretty darn difficult.
There are two factors that will keep holding you back:
You must pay off debt and cut all fun spending until that happens.
Break the paycheck to paycheck cycle.
Live a lifestyle that you can afford.
It is possible to get ahead with money!
It just comes with proper money management skills and a desire to have less stress around money. That is a winning combination regardless of your income level.
$90K a year Budget – Example
As always, here at Money Bliss, we focus on covering our basic expenses plus saving and giving first, and then our goal is to eliminate debt. The rest of the money leftover is left for fun spending.
If you want to know how to manage 90k salary the best, then this is a prime example for you to compare your spending.
You can compare your budget to the ideal household budget percentages.
recommended budget percentages based on $90000 a year salary:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$750
Savings
15-25%
$1500
Housing
20-30%
$1800
Utilities
4-7%
$188
Groceries
5-12%
$506
Clothing
1-4%
$38
Transportation
4-10%
$225
Medical
5-12%
$375
Life Insurance
1%
$19
Education
1-4%
$26
Personal
2-7%
$113
Recreation / Entertainment
3-8%
$188
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$1744
Total Gross Income
$7,500
**In this budget, prioritization was given to savings, basic expenses, and no debt.
Is $90,000 a year a Good Salary?
As we stated earlier if you are able to make $90,000 a year, that is a good salary. You are making more money than the average American and slightly less on the bell curve on the median income.
You shouldn’t be questioning yourself if 90000 is a good salary.
However, too many times people get stuck in the lifestyle trap of trying to keep up with the Joneses, and their lifestyle desires get out of hand compared to their salary. And what they thought used to be a great salary actually is not making ends meet at this time.
This $90k salary would be considered a upper-middle class salary. This salary is something that you can live on very comfortably.
Check: Are you in the middle class?
In fact, this income level in the United States has enough buying power to put you in the top 91 percentile globally for per person income (source).
The question you need to ask yourself with your 90k salary is:
Am I maxed at the top of my career?
Is there more income potential?
What obstacles do I face if I want to try to increase my income?
In the future years and with possible inflation, in some expensive cities, 90000 dollars a year is not a good salary because the cost of living is so high, whereas these are some of the cities where you can make a comfortable living at 90,000 per year.
If you are looking for a career change, you want to find jobs paying over six figures.
Is 90k a good salary for a Single Person?
Simply put, yes.
You can stretch your salary much further because you are only worried about your own expenses. A single person will spend much less than if you need to provide for someone else.
Your living expenses and ideal budget are much less. Thus, you can live extremely comfortably on $90000 per year.
And… most of us probably regret how much money wasted when we were single. Oh well, lesson learned.
Is 90k a good salary for a family?
Many of the same principles apply above on whether $90000 is a good salary. The main difference with a family, you have more people to provide for than when you are single or have just one other person in your household.
The cost of raising a child is expensive! Any of us can relate to that!
Did you know raising a child born in 2015 is $233,610 (source). That is from birth to the age of 17 and this does not include college.
Each child can put a dent in your income, specifically $12,980 annually per child.
That means that amount of money is coming out of the income that you earned.
So, the question really remains is can you provide a good life for your family making $90,000 a year? This is the hardest part because each family has different choices, priorities, and values.
More or less, it comes down to two things:
The location where you live in.
Your lifestyle choices.
You can live comfortably as a family on this salary, but you will not be able to afford everything you want.
Many times when raising a family, it is helpful to have a dual-income household. That way you are able to provide the necessary expenses if both parties were making 90,000 per year, then the combined income for the household would be $180,000. Thus making your combined salary a very good income.
Learn how much money a family of 4 needs in each state.
Can you Live on $90000 Per Year?
As we outlined earlier in the post, $90,000 a year:
$43.27 Per Hour
$346-433 Per Day (depending on length of day worked)
$1731 Per Week
$3462 Per Biweekly
$7500 Per Month
Next up is making $100000 a year! Time for six figures!!
Like anything else in life, you get to decide how to spend, save and give your money.
That is the difference for each person on whether or not you can live a middle-class lifestyle depends on many potential factors. If you live in California or New Jersey you are gonna have a tougher time than Oklahoma or even Texas.
In addition, if you are early in your career, starting out around 55,000 a year, that is a great place to be getting your career. However, if you have been in your career for over 20 years and making $90K, then you probably need to look at asking for pay increases, pick up a second job, or find a different career path.
Regardless of the wage that you make, if you are not able to live the lifestyle that you want, then you have to find ways to make it work for you. Everybody has choices to make.
But one of the things that can help you the most is to stick to our ideal household budget percentages to make sure you stay on track.
Learn exactly how much do I make per year…
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Mortgage rates have climbed five weeks in a row and are now at their highest levels since the week before Thanksgiving.
The average rate on the 30-year fixed-rate mortgage rose to 7.32% in the week ending May 2, according to rates provided to NerdWallet by Zillow. It was an increase of nine basis points over the previous week. (A basis point is one one-hundredth of a percentage point.) It marked the highest level since mid-November.
Rates rise as inflation plateaus
The 30-year mortgage has risen 63 basis points in five weeks. That’s unusual. When mortgage rates go up, they usually climb unhurriedly, like they’re taking the stairs. But they hopped an elevator a little more than a month ago. Inflation is the culprit.
The core consumer price index stood at 5.6% year-over-year in March 2023. Six months later, core inflation had slowed to 4.1%. It looked like inflation was steadily moving toward the Federal Reserve‘s goal of 2% after the Fed had raised short-term interest rates 11 times in a year and a half.
But since last fall, progress on inflation has stalled. From October to March (the last inflation report available), core inflation dropped from 4% to 3.8%.
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No Fed rate cuts for a while
Even the Fed expressed frustration about inflation’s persistence. “In recent months, there has been a lack of further progress toward the Committee’s 2% inflation objective,” the central bank said in a statement May 1 at the conclusion of its monetary policy meeting. That might seem like a mild-mannered assertion, but in the buttoned-up world of the Fed, it’s the equivalent of banging one’s head against the desk.
At a news conference, Fed Chair Jerome Powell was asked repeatedly if the central bank will be compelled to raise short-term interest rates again to restrain inflation. He said a rate hike is unlikely. But he said he’s not in a hurry to cut the federal funds rate, either. “We want to be confident that inflation is moving … sustainably down to 2%,” he said.
The Fed doesn’t set mortgage rates — financial markets do — but the central bank exerts a strong influence. This outlook wasn’t news to financial markets. Investors know that inflation is lingering. Markets concluded more than a month ago that the Fed wouldn’t cut rates in the near future. That’s when mortgage rates embarked on this multiweek rise.
Transactions rise along with rates
Home buyers and sellers might be growing accustomed to these interest rates, prompting them to get on with their lives by making and accepting offers for real estate.
About 93,000 homeowners listed their homes for sale last week, according to Mike Simonsen, president of Altos Research, a real estate analytics firm. “That’s much more than in any week in the entire last year,” he said in his weekly YouTube commentary. He added that 76,000 offers were accepted last week, “more than any week in 2023.”
Increases in listings and sales reflect multiple motivations: Some sellers and buyers may have wanted to act before mortgage rates climb even higher, while others might have given up on the prospect of lower rates anytime soon, prompting them to take action. It’s best to avoid timing the market and instead to buy or sell a home based on one’s needs. The bottom line is that houses continue to change hands, even with mortgage rates above 7%.
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