Depending on your personal financial situation, there may still be some advantages to buying a home now.
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After a respite in June, the Federal Reserve raised interest rates again in July, moving the benchmark rate to a range between 5.25% and 5.50%. That’s the highest level in 22 years. While that may be beneficial for those with high-yield savings and certificates of deposit (CD) accounts, higher interest rates generally hurt a wide swath of borrowers.
This is arguably felt the most by homeowners looking to refinance and buyers looking to purchase a home. As of August 7, 2023, the average 30-year mortgage interest rate is 7.09%, while a 15-year mortgage is 6.54%. Compared to the very low rates buyers and owners could have secured during the height of the pandemic, now doesn’t seem like a great time to buy or refinance.
But everyone’s personal financial situation is different and even if rates don’t fall, it doesn’t necessarily mean that now isn’t a good time to move. In fact, depending on where you live and your financial goals, there may still be advantages to buying a home now.
Start by exploring your mortgage rate options here to see exactly what rate you’d qualify for.
3 advantages to homebuying now
While no one wants to pay more than they should, there may still be some advantages to buying a home now. Here are three to consider:
Buy high, sell high
Interest rate hikes have had mixed results on the larger real estate market. In some portions of the country, home values have dipped, but in others, they’ve remained the same or have actually increased. If you have a home in one of the latter regions, it may make sense to still buy a new home now because you’ll have a chance to make more money on your existing property than at any time previously.
So while you may pay more for a property you like than you would have previously, you’ll also likely earn a greater profit on your current home sale than if you had put it on the market earlier. That greater profit will put you in a position to bid on more expensive homes than you may have anticipated.
It’s not an exact science, and it’s particular to where you currently live — and where you want to move to — but if you can sell your home for a higher price, it may still be worth buying now, even at the elevated interest rates.
Learn more about your mortgage options here now.
Tax benefits
If you don’t own a home yet, then you’re not benefiting from a significant tax advantage that many homeowners enjoy. The mortgage interest tax deduction specifically puts a lot of money back into the pockets of homeowners every tax filing season. This allows you to deduct a significant amount of money from your tax bill — resulting in thousands of dollars back to you on your annual return. But you need to own a home and pay a mortgage to file for the deduction.
While this may not be a strong enough incentive to buy a home, it could help alleviate some of the burden of paying that elevated interest rate. Crunch the numbers and see if it’s worth it for you. When comparing the cost of the higher rate to what you could get back at the end of the year, you may be pleasantly surprised.
Investment value
Yes, rates are high now. And yes, that may affect how much you can borrow and what you can ultimately purchase. But a real estate purchase, over the long-term, is still generally the better option, particularly when compared to renting. That’s because real estate values, accounting for some inevitable hiccups, will continue to rise. Even adjusted for inflation, home values today are still significantly higher than what they were in decades past, making real estate one of the best long-term financial investments Americans can pursue.
And remember
Interest rates are always changing. Most experts expect rates to stay flat or even drop later this year and into 2024. As the fight to tame inflation improves interest, rate improvements will likely follow. And, as many have already said, buyers should simply consider “dating the rate and marrying the home.” In other words: rates are temporary and can and will change. But if you find your dream home now, you may not get a second chance to buy it in a more favorable rate environment.
Learn more about today’s mortgage interest rates here now.
Hey mate! Have you written a post about what happens if you don’t reinvest your dividends? And the difference in account value over many years if you do or don’t reinvest?
-Joel
Awesome question, Joel. I haven’t written that. But after digging into the numbers, it could be a millions of dollar difference. So let’s dive in.
Highlights
Dividend reinvestment is a simple idea with huge consequences.
A typical investor – like you and me – is likely to see a 6- or 7-figure difference over our investing careers if we ensure we’re always reinvesting our dividends.
What are Dividends?
In May 2022, I wrote a take down of “dividend bros” who irrationally believe that high-dividend stocks are a panacea for investors. Yes, dividends are important. But the dividend bros are still wrong. I won’t beat that horse here, but you can read it for yourself via the link above.
An important stanza from that article will help us define dividends:
The fundamental value proposition in general stock investing is two-fold:
First, we hope a company’s capital value increases. We want them to invent valuable intellectual property, buy land, build factories, earn more cash, etc. All this growth comes from them investing money, including their own earnings, wisely. We can then sell our stocks for capital gains.
Second, we hope a company’s earnings increase. Some of those earnings will flow to us as part-owners of the company. Those payments to shareholders are called dividends. The dividends we receive today, tomorrow, and every day in the future add up to increase the net present value of the company.
Dividends, in short, are the profit payments that we receive as owners of a company. Dividends are one of the two main pillars of wealth creation for stock investors.
How are Dividends Received?
Dividends are typically paid out quarterly, and you might receive your dividends in a few different ways.
In the old days, you would have received a check straight from the company whose stock you owned. That doesn’t happen much anymore. Instead, you’re much more likely to receive a cash deposit straight into your brokerage account or IRA account.
If you own mutual funds or ETFs, the stocks in that fund will pay their dividends to the fund itself, and then you, as a fund owner, will receive your fraction of the dividends from the fund.
When you receive dividends in Taxable accounts, you owe taxes on those payments (recorded on a 1099-DIV tax statement). When you receive dividends in Qualified accounts (IRA, 401k, HSA, etc), you owe no taxes. Nice!
What is Dividend Reinvestment?
Investors have long faced a dilemma when receiving dividends: should they take the cash out of their investment account, or use the cash to buy more shares? This second option is called dividend reinvestment.
Some types of accounts automatically reinvest your dividends for you. Most 401(k) plans, for example, automatically reinvest dividends for their investors. But many IRA accounts and Taxable accounts do not reinvest automatically. Instead, you need to opt in to automatic dividend reinvestment. You might read or hear the term “DRIP” – dividend reinvestment plan – in these conversations. Check your accounts, and make sure you’re enrolled in DRIP (assuming you want to reinvest your dividends automatically).
But why? Why is dividend reinvestment so important? What’s wrong with taking my cash dividends and…ya know…buying that vintage armoire on Facebook Marketplace?
The Power of Dividend Reinvestment
Let’s dive into some data. Let’s look at the difference between two long-term investors (the best kind of investors), one who reinvests their dividends and one who doesn’t. As usual, I’m using the S&P 500 index as a proxy for “the stock market.”
First, some grounding information. From 1950 to today, the S&P 500 price has grown at 7.8% per year, with an additional 3.2% per year paid out as dividend payments. Math majors, you’ll recognize that this sums to 11.0% total return per year. Nice! Of course, we know this 11.0% average belies a far more volatile market. The worst year for total returns was -38% and the best year was +46%. As this favorite-chart-of-mine reminds us: the average is not the actual.
But back to the topic at hand – 7.8% per year in price, plus 3.2% per year in dividends. How would that affect our two investors?
If our first investor invested $1.00 in 1950 and did not reinvest his dividends, his dollar would have grown to $236 in the stock market and he would have earned $68 in dividends, presumably now sitting as cash in his wallet. Not bad, right?
Our second investor, who does reinvest his dividends, would have seen that same dollar grow to $2026 in the stock market. Sure, he doesn’t have $68 in cash. But I think I’d take the $1790 extra in the stock market.
Note…these two charts show exactly the same data. But using a Log scale on the y-axis helps us understand their difference a bit better.
That’s the power of dividend reinvestment. That’s the power of compound interest. Small differences, when magnified over decades, turn into huge differences.
DRIPing and DCA
But here’s the thing: most of us don’t approach investing with an attitude of “here’s $1, let me wait 73 years.” Instead, we make regular contributions to our accounts (a.k.a. dollar-cost averaging, or DCA) and think in terms of a normal lifespan/workspan (e.g. a few decades.)
So how much does dividend reinvestment matter to an investor like that? Like us?
Let’s look at the same data as before – the S&P 500 from 1950 until today – and measure the returns of a two DCA investors, one dividend reinvestor and one not. Let’s assume both of our investors save $10,000 per year. Our non-DRIP investor ends up with a nice stock portfolio and a wad of dividend cash. The DRIP investor has only stocks…but a larger portfolio, we expect.
Over the various 30-year periods (e.g. 1950-79, 1951-80, etc.), the DRIP investor outperforms the non-DRIP investor (including both his stocks and his wad of cash dividends) by an average of $703,000, or roughly ~43%.
So yes – dividend reinvestment matters to everyday investors like you and me.
As I wrote earlier, your 401(k) is most likely already reinvesting dividends for you, but it’s worth double-checking. Your other accounts – IRAs, taxable accounts, etc. – might not be reinvesting your dividends. Go fix that! Because while dividend payments might feel like “free money” or a nice bonus income, I’d rather have the extra $703K.
Wouldn’t you?
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-Jesse
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Everyone loves a good celebrity story—the dazzling red carpets, the breathtaking performances, and sometimes… the scandals. From Justin Bieber to Meghan Markle, each star brings their own set of controversies that make us scratch our heads in disbelief. But what’s worse than a scandal is when an influential celebrity gets away with toxic behavior without facing any repercussions.
In today’s blog post, we’re counting down 20 celebrities whose questionable deeds mostly flew under the radar. So if you want to learn more about who wasn’t caught in these webs of drama, keep reading!
1. Nicki Minaj
Photo Credit: Shutterstock.
One user posted, “Nicki Minaj and oh god where to begin…. She paid for the bond of her brother, who was convicted of s-xually assaulting his 12-year-old step-sister, and years later went on Twitter and accused the girl’s mother of extortion, but let’s just say the forensics evidence in court made it VERY clear the child was not lying.
“She dressed as a fairy princess and ‘demanded’ a woman in a wheelchair walk.
“She married a man who had broken into a 17-year-old girl’s home, put a knife to her back and attempted to assault her… She then went on to her radio show and told over 10 million people that the victim was a white woman (she was not) who was lying to an innocent black man due to spite. The victim has been harassed by her fans since, even receiving death threats.
“She gloated in a now-deleted tweet about how she fires her employees who ask for days off. When asked, she would tell them to think about the days she wanted off but never got, and if they still wanted the day off after her spiel, she would fire them.
“She’s consistently a very vile person, and it seems no one cares enough to say anything about it.”
2. Kirk Douglas
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“Kirk Douglas. R*ped Natalie Wood and probably more. Still regarded as a legend,” one user shared.
Another user added, “It was a violent [too], from what I read. He was a horrible man. Comparing women to dogs.”
“…And maybe killed a pregnant girlfriend. I don’t think they ever found her body,” one commenter replied.
3. Jack Nicholson
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One Redditor said, “In 2000, Jack Nicholson beat a woman so severely that she sustained permanent damage to various regions of her brain.”
Another user asked, “Why haven’t I heard of this? What a [horrible human].”
One user replied, “Nicholson is getting up in years as he’s in his mid-eighties now, and rumour has it that he’s got Alzheimer’s—hasn’t made a film in several years. If some of the more unsavoury and sinister stories about him are true, it’s likely to come out after he passes. Once he’s gone, I don’t know whether his several adult children would have the clout and influence to suppress something like an exposé biography.”
4. Oprah
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One Redditor commented, “Oprah. Oprah started the anti-vaxxer movement by bringing on Jenny McCarthy and Andrew Wakefield and didn’t bring out an actual scientist to dispute the claims. She gave them the voice that they should never have had, and because of it, she has the blood of every person who has died because of their anti-vaxxer beliefs on her hands.”
Another user added, “Oprah and Meryl Streep enabled and supported Weinstein for decades. I’ve even heard stories about them directing young hopefuls in his direction, knowing full well what he would do. Somehow they haven’t had a word said against them for their behaviour and are treated as modern-day saints.
“No amount of wearing a ‘Times up’ button and espousing girl power nonsense will cover up the fact that they were complicit in his crimes. But because they are so powerful, rich and (most importantly, women), they have gotten away with it without much mention. I get you can’t be held responsible for someone else’s actions. But they knew, and they were fine with it.”
5. Charlie Chaplin
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“Charlie Chaplin treated his children and teenage wives with relentless cruelty,” one user shared.
Another user replied, “There was a documentary on Chaplin where they tried to wave all these ‘[abusing] teenage girls’ [claims] away by basically saying: ‘Oh, women in Hollywood are all jaded cynical;… Charlie just appreciated the pure innocence of young girls before they corrupted themselves.’ I remember thinking they should have just ignored the issue entirely if that was the best they could come up with.”
6. Ellen DeGeneres
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One Redditor posted, “Ellen got away with it for a long time.”
Another user shared, “Ellen always had a nasty streak, all the way back to her Carson appearance. Her humour was always based on pain, but she crossed a line when she went from exploring it to inflicting it on others. I honestly think she had some incredible insight into modern culture, but it’s all [thrown] away by being a sh-thead. Losing her sitcom really seemed to have broken something in her.”
One user replied, “Remember when she tricked a celebrity (don’t remember who) into revealing she was pregnant on her show, which is a massive breach of privacy in a world where famous people need to fight to keep anything private.
“Then the woman had to announce sometime later that she suffered a miscarriage. Sure, it’s not Ellen’s fault that it happened, but if she had just minded her own business, this person would not have to deal with her trauma publicly. There’s a reason some people wait a few months to announce a pregnancy.”
7. Paul Walker
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“The internet still seems to go all lovey when Paul Walker comes up, but he was literally mid-thirties when he started hooking up with his 16-year-old girlfriend. I never understood why he got a pass for that,” one user shared.
Another user replied, “Cause he died young and starred in a successful franchise.”
8. Antony Starr
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One user shared, “[Antony] Starr, who plays homelander on The Boys, was harassing women at a restaurant. A 21-year-old chef tried to be diplomatic with him, and Anthony smashed a bottle against his face; when he literally had glass shards implanted in his eyebrows, Anthony said, “You don’t know who you’ve messed with, you don’t know who I am and what you’ve done. You’ve committed the mistake of your life, and I’m going to look for you. I want to kill you.”
“There’s a reason why his co-stars say he’s most like his characters. The way he got so violent after someone being diplomatic with him and the desire to continue wanting to destroy him, as indicated verbally by him, are clear signs of someone on the psychopathy spectrum and someone with the wealth and status to habitually and casually get away with treating people terribly.”
9. Victor Salva
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“Victor Salva. Director of the Jeepers Creepers films. Less toxic, more convicted [child abuse] behaviour, but nobody seems to care and keeps giving his films—which are clearly him living out his fantasies of tormenting young boys—the time of day,” one user commented.
Another user replied,” (Not so)Fun fact. He filmed jeepers and creepers right next door to an elementary school and high school. I was at the high school when it was filmed. Total piece of sh-t.”
10. Dr. Phil
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One user shared, “Dr. Phil. He literally sent troubled teens to an abuse camp (‘ranch’) to ‘fix them.’ The workers physically, emotionally and s-xually abused those kids.”
Another Redditor responded, “You can just call him “Phil.”
11. Phil Spector
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“Phil Spector used to point guns at everyone in the studio and would threaten people on a daily basis. He made a gold coffin for his wife in case ‘she would ever leave him.’ Yet, people were surprised when he murdered someone.”, one user shared.
Another user added, “He held Ronnie Bennett captive and abused her for years. She gave up custody of her children and all future earnings on her recordings during the divorce out of fear he would hire somebody to kill her. His kids all say he s-xually abused them and kept them captive.”
12. Kobe Bryant
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One user commented, “Kobe got away with r-pe…
Kobe’s defenders claim Kobe is innocent by citing something the victim allegedly said after the trial, ‘I’m going to make so much money off of this,’ even though every publication that initially reported this eventually had to take their article down. And even then, maybe it’s ok to be happy considering what Kobe’s PR team, the media, and celeb worshippers who say the same stuff you’re saying put her through?”
13. Steven Tyler
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One user posted, “Steven Tyler makes me want to vomit. I hate how Aerosmith is still played all over.”
Another user added, “I am almost certain that when their guitarist went solo in the 80s, Tyler’s BS was part of the issue, and only part of the band wanted to sober up. Amazing what a large contract with tons of money can make some people come back to, though.”
14. Joan Crawford
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“Joan Crawford, in her lifetime, physically and emotionally abused her children, and it was not a secret to those close to her. Woody Allen is still welcome in some social circles though he is a [predator] and a sociopath who has groomed and… abused his own children. He married his stepdaughter, a child when they began living together… There’s a long list,” one Redditor posted.
15. Jimmy Page
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One user shared, “Jimmy Page. He [abused] a lot of children.”
One user asked, “Wait, what? Really?”
One user answered, “Dude was even caught red-handed with hard drives of child [images]…”
16. Heidi Klum
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“Heidi Klum. She’s literally abusing minors on camera AND is making money off of that, but nobody is talking about it,” one user posted.
One user replied, “I couldn’t agree more. I’m from Germany, and just about every woman over the age of 10 watches her show ‘Germany’s Next Top Model.’ In school, my classmates would just talk about this show all the time when it was on, and some of my friends still watch it. I’ve never watched it, and I’m not going to.
“It’s really disgusting what happens there. You are allowed to participate from the age of 16. The participants even have to pose [in nothing] or only in their underwear. Anyone who refuses will be kicked out. There are countless things I could list now, but that would be too much for me. I can not understand how something like this can still be produced and shown. Heidi Klum is a terrible person, in my opinion.”
17. Cardi B
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One Redditor asked, “Didn’t Cardi B admit to drugging and robbing guys she had met at the strip club? I was pretty surprised at how quickly the media let her off the hook for that one.”
Another user answered, “Didn’t one of the victims say that being drugged was still a better experience than listening to her music.”
One commenter responded, “That’s hilarious if true.”
18. Woody Allen
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“Before Allen v. Farrow HBO came out, Woody Allen used to have supporters on Reddit who would go hard at defending him like the Al Franken supporters do these days. They would link to bullshit publicans and weird pdfs claiming to be from the court case. People would usually give up arguing with them because they were so many, and they were extremely knowledgeable about the case, so they could just keep citing shit whenever people would critique Woody Allen.
“I would keep talking shit about Woody, and sometimes there were no defenders, but weeks later, you would have someone come in and start a point-by-point breakdown about how Woody was innocent and was framed by Mia.
“Then Allen v. Farrow HBO came out, and suddenly, I don’t see these types of comments anymore. I suspect a social media astroturfing campaign was a part of Woody’s PR budget, but then it became exhausted after Allen v. Farrow,” one user posted.
19. Sean Penn
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A user also commented, “Sean Penn tied [up] his wife, Madonna,… and beat her. No one seemed to care. Most people don’t even know it, I bet.”
However, one user disagreed, “According to her, it never happened. There are many documented instances of him being an asshole, but I’m inclined to believe her on this.”
20. Billy Joel
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“Billy Joel. Dated a 19-year-old Elle McPherson in his mid-thirties. Then moved on to Christie Brinkley. He treated his band, who was co-writing and arranging his songs, like absolute garbage. He then unceremoniously fired them at a producer’s insistence.
“They protested fishing limitations imposed on fishermen on Long Island by getting purposely arrested. The thing is, there were dangerous levels of chemicals in the fish. The restriction was so people didn’t get sick and die.
“He was allowed to play Moscow during the height of the Cold War. They proceeded to act like a total asshole because the film crew documenting it wanted to light the audience. Also, years of being a fat, drunken slob and terrorizing Long Island.” one Redditor posted.
Another user added, “My Father owned an appliance repair company on the south shore of Long Island; he sold it in ’95. Billy Joel was a customer, and my Dad said the man was always a huge [jerk]. He hated doing service calls for Joel and always tried to pawn them off on his apprentice, but that didn’t always happen, and he’d have to go there himself. I wondered why the guy didn’t just buy a new washer, but whatever. Apparently, his brother was a nice man.”
Do you agree with the list above? Tell us below!
Source: Reddit.
These are 10 Things That Completely Destroyed The Love in a Relationship
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There’s no question that relationships can be confusing, but here are some of the top things to avoid if you want to keep your relationship healthy!
10 Actors and Actresses People Refuse to Watch Ever Again
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We all have a favorite actor or actress, but most of us have a least-favorite as well. Check out this list of actors and actresses people never want to see performing again!
Top 10 Worst Human Inventions of All Time
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Some inventions are world-changing, and some of them, well, they change the world in the wrong ways. Here are some of the worst inventions Redditors could think of.
10 Famous Celebrities Who Look Like They Smell Terrible
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We’ve all had moments of hygiene faux pas—but these celebrities just look like they don’t take care of themselves at all.
10 Terrible Fads People Are Glad Died Out
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Every fad has its time in the limelight, but some of them come and go faster than others; and some just need to die out right away. Check out this list of fads of which people were happy to see the last.
Here’s some good news, if you can call it that. Real estate experts at a recent housing forum in San Francisco determined that we are in the midst of an “affordability crisis,” not a housing bubble.
Jed Kolko of Trulia fame and Tim Cornwell of the Concord Group told attendees at the SPUR Urban Center in SF that it’s more an issue of supply and demand, not necessarily an overheated housing market.
In SF, which ranks #1 in terms of unaffordability for the 100 largest metros in the United States, only 14% of for-sale homes are affordable to the middle class.
That compares to 34% in San Jose and 40% in Oakland, both of which are also in the top 10 in terms of unaffordability.
Housing Bubble vs. Affordability Crisis
But that doesn’t make it a bubble, at least not yet, despite Karl Case of S&P/Case-Shiller declaring one in certain cities a year ago.
Kolko took time to explain the subtle differences between a bubble and an affordability crisis, as seen in the chart above.
As you can see, high prices relative to incomes are an affordability issue, whereas high prices relative to the “fundamentals” spell bigger problems.
Affordability is also more of a supply/demand issue, while bubbles are more irrational price divergences.
Additionally, high prices AND rents point to an affordability issue, while high home prices relative to rents are more of your classic bubble territory.
Finally, affordability can persist well into the future, and as we all know, bubbles eventually pop, sometimes pretty abruptly.
Why It’s Not a Bubble?
The argument continues to be the same, that less household income is going toward the mortgage, but that’s really only because mortgage rates are artificially low.
If rates were more, dare I say, normal, there’s a chance mortgage payments wouldn’t be so attractive (or at least manageable) relative to rents.
In fact, RealtyTrac said today that if interest rates rise a full percentage point from current levels, 630 counties (representing 46% of the total population) will exceed their historical averages for income-to-home price affordability.
And 59 counties will exceed their historical peaks (bubble territory) for income-to-home price affordability.
Another reason home prices supposedly aren’t in a bubble, and are only “modestly” overvalued is their current level relative to the previous bubble.
At the moment, San Francisco metro area home prices are just six percent overvalued when looking at the historical relationship between median incomes and home prices.
That compares to 53% overvalued during the height of the previous boom. In other words, when you compare current prices to levels seen in 2006-2007, things still look great.
But using that insane time period as a measuring stick (coupled with low interest rates) might not be the best way to determine whether home prices are dangerously elevated or not.
How Can We Make Housing More Affordable?
In order to improve housing affordability, Kolko offered two “options,” increase supply or reduce demand.
One solution is simply to build more homes, which will obviously increase supply.
But he noted that both geography and regulations constrain supply in the Bay Area, so making it easier to build new housing units could aid affordability.
Apparently the Bay Area has suffered from decades of underbuilding, per Cornwell, and demand has just kept rising in the tech-rich area.
If there’s a larger housing supply, demand relative to supply will be weaker, which should push home prices lower, or at least keep them from rising at an unsustainable rate.
Even so, you’ll never land a bargain in hot cities like SF, which RealtyTrac refers to as “inherently unaffordable.”
Lastly, consider the fact that even though we may not be in a full-blown national bubble, mini bubbles are popping up all over the country. So look local instead of national if you want a more accurate picture of your housing market.
A strike is an action taken by a group of employees who stop working in an attempt to pressure their employer into meeting their demands. Workers strike over a wide array of issues, but the most common demands include higher wages, safer working conditions and better benefits.
A strike is a powerful tool for workers looking to effect change in their workplace. Halting production can impact a company’s bottom line and draw public attention to workers’ complaints.
For example, you have probably seen reports of screenwriters and actors striking in Hollywood over fair pay and other issues. The strikes include members of the Writers Guild of America, a union representing 11,500 screenwriters, and the Screen Actors Guild and the American Federation of Television and Radio Artists (SAG-AFTRA), which represents 160,000 performers. The strikes effectively shut down Hollywood, canceling or postponing new movies and new seasons of TV shows. The strikes will do more than interrupt people’s media consumption, though. The last time TV and film writers went on strike in 2007, the economic impact was calculated at $2.1 billion, including 37,700 lost jobs, according to a report by the Milken Institute, a think tank focused on economic development.
Even the threat of a strike (especially one involving hundreds of thousands of workers), can compel an employer to make the changes called for by employees. Recently, the Teamsters union, which represents 340,000 UPS workers, threatened a strike over demands for higher pay, more jobs and new workplace protections. UPS and the Teamsters reached a deal on a tentative five-year contract just days before the strike was set to start.
A strike would’ve disrupted package delivery on a massive scale, wreaking havoc on businesses and the economy. According to one estimate by Anderson Economic Group, a consulting firm, a 10-day UPS strike could’ve cost the company more than $800 million. The wider economic impact could’ve reached $7 billion.
How a strike works
The National Labor Relations Act of 1935 gives U.S. employees the right to strike.
Deciding to strike
Workers decide to strike for a variety of reasons. In 2022, the top reason was pay, followed by health and safety issues and staffing, according to the Labor Action Tracker, an annual report on work stoppages by unionized and nonunionized workers compiled by researchers with the Cornell University ILR School.
Often, strikes are organized by labor unions, which have the role of representing their members in contract negotiations with employers. For a union to go on strike, it has to have support from union members who cast secret ballots in a strike authorization vote. Voting to authorize a strike doesn’t guarantee a union will go on strike. Instead, authorizing a strike shows the employer on the other side of the bargaining table that the threat of a strike is credible because members have authorized union leaders to call for a strike.
SAG-AFTRA, the performers’ union, authorized a strike in early June. Then, on July 13, its national board held a second vote to launch the strike.
Can you strike without a union?
U.S. workers don’t have to be part of a union to go on strike.
The Fight for $15 campaign is a high-profile example of nonunionized workers organizing a strike. In 2012, fast-food workers in New York walked off the job in protest of low wages and poor working conditions. That soon grew into a nationwide campaign to demand a $15-per-hour minimum wage. As it has grown, Fight for $15 has amassed an eclectic group of low-wage workers. The impact of a Fight for $15 strike held in November 2016 rippled across the service sector, with workers walking off the job at airports, restaurants, child care centers and other job sites.
What happens to a striker’s job?
Because striking is a legally protected action, workers have some job protections when they go on strike. How much protection depends on the purpose of the strike. The purpose of a strike can be categorized in a couple of ways:
Economic strikes include workers who go on strike over demands like higher wages, shorter hours and better working conditions. When workers strike for economic reasons, they can’t be fired by their employer, but they can be replaced. If an employer hires permanent replacements, strikers don’t automatically get their jobs back at the end of the strike. Instead, strikers are given the first chance to be rehired if a job opens with the employer.
The threat of being replaced during an economic strike is real. Since the 1980s, when the Reagan administration took a harder stance against organized labor, employers followed suit and more often have used or threatened to use their right to permanently replace workers. However, that isn’t without consequences. Researchers have noted that replacing striking workers can escalate tension and prevent a resolution of the strike.
Also, employers who hire permanent replacements could have their motives closely scrutinized. The National Labor Relations Board, which protects workers’ right to collective bargaining, issued a ruling in 2016 that said Piedmont Gardens, a care facility in Oakland, California, committed an unfair labor practice by replacing strikers because that action was motivated by a desire to punish strikers and avoid future strikes, which violates workers’ right to strike.
Unfair labor practice strikes include workers who go on strike because their employer broke the law. Common unfair labor practices by an employer include interfering with employees’ right to organize or join a union or refusing to bargain in good faith with a union. When workers strike over unfair labor practices, they can’t be fired and they can’t be permanently replaced. Employers can hire temporary replacements during an unfair labor practice strike, but once the strike ends, workers are entitled to have their jobs back.
However, there are some instances when a strike violates the law. When that happens, workers’ jobs aren’t protected. Here are a few cases where the right to strike is limited:
Workers at health care institutions must give 10 days’ notice before going on strike.
Workers can’t go on strike to compel an employer to commit an unfair labor practice or to support an unfair labor practice committed by a union. For example, workers can’t use a strike to pressure an employer to fire someone who’s not paying union dues.
Even if their strike is legal, workers could lose their jobs if their behavior during the strike violates the law. For example, workers who strike can’t physically interfere with people attempting to work or threaten workers who aren’t striking.
Being part of a union during a strike can add a layer of job protection. During a strike, when a union and employer reach an agreement on a new contract, it’s common for the union to insist that all striking workers be reinstated to their original jobs. Knowing that condition would likely be part of the contract, employers are unlikely to hire permanent replacements for workers who strike.
Do workers get paid while on strike?
Workers are in a tough spot financially while on strike. They don’t collect a paycheck and, in most states, they don’t qualify for unemployment benefits, according to LawInfo, a legal services site owned by Thomson Reuters. One exception is in New York, where striking workers can collect unemployment if a strike goes longer than 14 days.
Unions typically manage a strike fund — a pot of money used to keep workers afloat during a strike. Union members may be entitled to a certain amount from the strike fund, depending on union rules.
Workers who receive medical benefits through their employer may lose coverage if their employer stops paying its share of their insurance premiums. Workers on strike can maintain coverage under COBRA — a federal law that requires employers to temporarily extend coverage after employment ends. But, in that case, striking workers are on the hook for their insurance premiums during a strike. Some unions can afford to help members cover these added costs.
How long do strikes usually last?
In 2022, the majority of strikes lasted less than five days, according to Cornell’s Labor Action Tracker. About a third of strikes lasted more than five days, including some that went on for more than a month.
That’s a drastic change from earlier decades. In 1979, which is the last year comprehensive work stoppage data is available from the Bureau of Labor Statistics (BLS), strikes lasted 32 days, on average. And half of strikes lasted more than 16 days.
The decline of strikes in the U.S.
Strike activity has declined dramatically in the U.S. in recent decades.
In 2022, U.S. workers were involved in 424 work stoppages, which included 417 strikes and seven lockouts, according to Cornell’s Labor Action Tracker.
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A lockout is a work stoppage initiated by an employer. It prevents workers from returning to work until they agree to certain terms.
Compare that to 1979, when 4,827 work stoppages were recorded, according to BLS. That year, work stoppages involved 1.7 million workers. At the time, that was typical. BLS stopped tracking work stoppages involving fewer than 1,000 people in 1980, making 1979 the last year for which comprehensive data is available. But data going back to the 1930s shows it was normal for millions of U.S. workers to engage in thousands of strikes per year.
Strikes have declined because striking has become riskier. Since the 1980s, employers have been more forceful with unions by threatening to replace strikers. At the same time, union membership became less common as the U.S. economy shifted away from traditionally unionized industries like manufacturing. In 1983, about 20% of U.S. workers belonged to a union. Now, it’s just over 10%, according to BLS.
A resurgence of strikes in the U.S.
Despite the long-term decline, strikes appear to be having a resurgence now, according to Johnnie Kallas, a Ph.D. candidate in labor relations at the Cornell University ILR School. Kallas leads the Labor Action Tracker project.
Without comprehensive strike data from BLS, historical comparisons are tricky. But the Labor Action Tracker shows work stoppages increased by 52% from 2021 to 2022. The number of workers involved in work stoppages also increased last year, from 140,000 in 2021 to 224,000 in 2022.
In part, the uptick in strike activity stems from the pandemic, Kallas says. Since COVID-19 shut down businesses, maxed out supply chains and made in-person interactions riskier, there have been numerous examples of frontline workers organizing strikes over staffing issues and safety procedures. Those concerns spanned multiple fields, including education, health care, trucking and food service.
“The pandemic had a huge impact on labor activism and strikes in the United States,” Kallas says. “Not that these issues didn’t exist beforehand, but I think they were exacerbated.”
More generally, organized labor seems to be having a moment. The number of unionized workers in the U.S. is on the rise again, according to BLS. And workers at well-known companies like Starbucks, Google and Apple are leading unionization efforts. Meanwhile, public support for unions is at its highest point since 1965, according to an August 2022 Gallup Poll. The survey found that 71% of Americans approve of labor unions. That figure has climbed steadily since 2009, when just 48% of Americans approved of labor unions.
It’s official. The Eames Shell Chair is giving the iconic Eames lounger a run for its money! It’s all over Pinterest at the moment and our current obsession for This is Very Pinteresting.
It seems like no dining room or office can be complete without a shell chair these days. It gives an instant touch of modern to a room and looks great juxtaposed with other styles. You can find the chair in a variety of colors and price points like this, ahem, homage to the original making it an easy addition to the home.
In the 1950’s Charles Eames with wife Ray Eames, reinvented modern furniture. Popular for their molded plywood techniques, and using materials like resin and plastic they began designing for Herman Miller. Their belief in functional, sleek, and simple design has resonated throughout the design world for decades and is to this day, obviously very popular with the Pinners. The only question is which color is the best editors comment: I’d like a collection of them all!.There’s also an Eames documentary that I’m dying to watch called Eames: The Architect and the Painter. Have you had a chance to see it? I’d love to know your thoughts on it. And be sure to come pin your latest obsessions with us right here!
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This is Very Pinteresting is brought to you by our editorial intern Bianca of A Fabulous Challenge!
The recent increase in mortgage rates, which has made buying a house or borrowing against home equity more expensive, in part reflects a broad increase in rates on long-term U.S. Treasury securities. But the increase in 30-year fixed mortgage rates over the past year has been unusually large relative to rates on long-term Treasury securities, which may suggest that mortgage rates are being pushed up by temporary factors. In particular, as the path of future interest rates becomes more certain, mortgage rates could fall by roughly half a percentage point.
Why have mortgage rates risen by so much more than yields on 10-year Treasury bonds? We find that much of the increase in this spread can be attributed to two factors: interest rates on Treasury bonds with maturities less than 10 years are higher than rates on 10-year Treasury bonds and mortgage prepayment risk has increased. Higher interest rates on shorter term bonds matter because mortgages are generally held for fewer than 10 years. Prepayment risk is higher than in recent decades largely because of uncertainty around future interest rates. Both these factors are likely to continue to push up mortgage rates over the next few quarters.
Factors Contributing to the Spread between Mortgage and 10-Year Treasury Bond Rates
Mortgage rates reflect the cost of using a mortgage to buy a home or tap home equity and thus affect the price of real estate and housing wealth. To the degree that the Federal Reserve’s tightening of monetary policy pushes up mortgage rates, this channel is an important way in which tighter monetary policy slows the economy and dampens inflation. As shown in figure 1, there has been a long downward trend in mortgage rates (dark green) over the past forty years in line with the rate of 10-year Treasury bonds (light green). However, the spread between mortgage rates and Treasury bond rates fluctuates for various reasons, including changes in credit conditions and interest rate uncertainty.
Mortgage rates generally track the rate on 10-year Treasury bonds because both instruments are long term and because mortgages have relatively stable risk. Nonetheless, to compensate investors for the higher risk of mortgages, rates for fixed mortgages have historically been, on average, one to two percentage points higher than Treasury yields. As rates on 10-year Treasury bonds have risen since mid-2020, mortgage rates have risen as well. But, over the past year, mortgage rates have risen by a surprisingly large amount relative to the 10-year Treasury rates, putting more restraint on borrowing conditions and the housing market.
Figure 2 shows the spread between 30-year fixed mortgage rates and 10-year Treasury rates from 1997 through May 2023. The peak spread during the housing crisis was 2.9 percentage points, reflecting a sharp tightening of credit conditions and significant disruptions in the financial markets that fund mortgages. The spread rose again during the COVID-19 pandemic, peaking in 2020 at 2.7 percentage points, reflecting shorter-lived disruptions in financial markets and concerns among lenders and investors in mortgage assets. Recently, the difference between 30-year fixed mortgage rates and 10-year Treasury rates has widened to an unusual degree. Since October 2022, the spread has hovered near the levels last seen during the housing crisis.
To explain why the spread between 30-year fixed mortgage rates and 10-year Treasury rates is so large, figure 3 parses it into three components:
The spread between the rate charged to borrowers and the yield on mortgage-backed securities (MBS), referred to as the primary-secondary spread, which is generally stable when the costs of mortgage issuance are stable (blue).
A combination of an adjustment for mortgage duration and prepayment risk (light green). The duration adjustment reflects that mortgages are generally held for fewer than 10 years and are more closely related to rates on a 7-year rather than a 10-year Treasury security. Prepayment risk reflects the probability that a future drop in rates induces borrowers to exercise their option to refinance.
The remaining spread, which reflects changes in demand for mortgage-related assets after adjusting for prepayment risk (purple).
Given estimates of 1 and 3, we are able to estimate 2 by subtraction.
Factors Driving Higher Mortgages Rates
Using this framework, we find that the biggest reason that the mortgage spread to the 10-year Treasury rate is higher relative to other periods is due to the duration adjustment and prepayment risk. Since mortgages are typically held for fewer than 10 years, they have a shorter duration than 10-year Treasuries. Since early 2022, and for the first time since 2000, the rate on 7-year Treasury securities is higher than the rate on 10-year Treasury securities. In particular, from 2015 through 2019, the 10-year rate exceeded the 7-year rate by about 0.15 percentage point on average. Instead, year-to-date, the 7-year rate has exceeded the 10-year rate by about 0.10 percentage point, on average. As a result, the duration adjustment explains roughly a quarter of a percentage point of the unusually large spread shown in figure 3.
In addition, prepayment risk is higher now than in previous years. Borrowers with mortgages are affected differently if interest rates rise or fall. If rates rise, mortgage holders can simply choose to keep their mortgages at the previously issued rate. Instead, if rates fall, mortgage holders can prepay and refinance their mortgages at lower rates. That means that if there is a wider range of uncertainty around the future of interest rates—even if that range is symmetrical—there is a higher probability that current mortgage holders will find it advantageous to refinance in the future. As it happens, measures of interest rate uncertainty (such as the MOVE index, or Merrill Lynch Option Volatility Estimate Index) are currently higher than before the pandemic. Moreover, when rates are very low as they were in early 2020, there is only so much lower they can go, and thus borrowers and lenders alike see a smaller likelihood of a new mortgage being refinanced to a lower rate in the future. Instead, when mortgage rates are higher, as they are now, there are more possible future outcomes where rates fall and mortgages are refinanced. In other words, mortgage lenders want to protect against the possibility that mortgages issued recently will be refinanced to lower rates. As a result, lenders charge a premium.
To get a sense of how much this factor is pushing up mortgage rates to an unusual degree, it is useful to compare the estimated contributions of the duration adjustment and prepayment risk now versus the late 1990s, which was before the housing bubble, the housing crisis, the slow recovery from the 2008 recession, and the COVID-19 pandemic. In the late 1990s, 10-year Treasury rates were moderately higher than today but, like today, the 7-year rate was higher than the 10-year rate. At that time, the estimated contribution of the duration adjustment and prepayment risk to the mortgage rates spread was roughly a half percentage point lower than today.
While the largest factors driving high mortgage rates are the duration adjustment and prepayment risk, another reason mortgage rates have been unusually high is because of a slightly elevated primary-secondary spread. Lenders often finance mortgages by selling claims to MBS, which are pools of mortgage loans that are guaranteed by government-sponsored enterprises. The spread between the primary mortgage rate to borrowers and the secondary rate on MBS reflects the costs of issuing mortgages. For example, originators have to bear interest rate risk between the time an interest rate on a mortgage is set and when it is closed. The primary-secondary spread jumped by 0.3 percentage points toward the end of 2022, but has retraced most of the runup since then.
Finally, the component after accounting for those factors is also somewhat elevated relative to before the pandemic. This component, referred to as the option-adjusted spread (and “other” in figure 3) is likely elevated due to reduced demand in the MBS market. In recent years, the Fed has reduced its holdings of MBS. In addition, private investors in MBS have readjusted portfolios in response to an increase in interest rates. This was particularly true when long-term Treasury rates jumped in the fourth quarter of 2022; demand for MBS has remained cool since then. In addition, holders of MBS may be more pessimistic about prepayment risk than empirical models reflect, which could be the case if investors think that future mortgage rates are more likely to be a little lower relative to current rates rather than a little higher.
Conclusions
Higher mortgage rates are probably here to stay for a while, but a reduction in uncertainty could meaningfully bring down mortgage rates. If interest rate uncertainty returns to more normal levels and prepayment risk fell back to levels seen in the late 1990s, rates could fall – perhaps by half a percentage point. Nonetheless, one factor keeping rates higher that is likely to persist for the next several quarters is dampened demand for MBS as the market for mortgage financing continues to recalibrate to restrictive monetary policy and higher interest rates.
Until the economy slows to a more sustainable pace, uncertainty will remain. How will a slowdown affect house prices? How much will it reduce the income of borrowers? Will financial markets remain stable? Until such questions are resolved, unusually high mortgage rates will probably continue to cool the housing market and dampen borrowing against housing equity.
The Brookings Institution is financed through the support of a diverse array of foundations, corporations, governments, individuals, as well as an endowment. A list of donors can be found in our annual reports published online here. The findings, interpretations, and conclusions in this report are solely those of its author(s) and are not influenced by any donation.
Step into a world where sleek lines, open spaces, and a harmonious marriage of form and function reign supreme.
Mid-century may be a classic style from the mid-1900s, but homes built in this style have a timeless appeal. With their distinct architectural features — which often include flat roofs, horizontal planes, and geometric shapes — they embrace simplicity, functionality, and a seamless integration with the surrounding environment.
Nature and lifestyle were key when designing mid-century houses, so many of them were built with floor-to-ceiling windows with views of the yard, sliding glass doors, and many access points to the outdoors.
Incorporating clean lines and basic shapes, simple furnishings, a practical Scandinavian approach with muted color palette, and warm inviting earth tones, simplicity is a notable characteristic of mid-century design. Mid-century modern homes also used spaces efficiently with their split-level design, which makes it easy to see why the this architectural style continues to fascinate with both its practicality and its aesthetic appeal.
Our favorite midcentury modern houses
For those who want to immerse themselves in the world of midcentury beauties, we’ve rounded up our favorites. Carefully restored by their owners while preserving their original character and incorporating modern amenities and technologies, we believe the examples below have done a great job at striking a balance between maintaining the historical integrity of the house and making it functional for contemporary living.
Without further ado, here are 13 stylishly refreshed-yet-classic mid-century modern houses that we’ve covered in the past, many of which had some quite famous owners (or architects).
#1 A secluded mid-century modern home with unique features and views of lush surroundings
There is so much to love about this Santa Clarita property — which was home to ‘Dallas’ Star Linda Gray for almost FIVE decades. Named Oak Tree Ranch after the stunning oak trees that grow on the property, the private California compound has many unique features.
Photo credit: Marc Angeles courtesy of The Agency
Designed by acclaimed architect A. Quincy Jones, the mid-century house is unquestionably elegant and captivating. True to the principle of bringing the outside in, the floor is made of heart pine, (meaning the heart of the pine tree), sourced from a New Orleans schoolhouse.
The freestanding fireplace is another unique feature of this property. The kitchen was designed by renowned architect Josh Schweitzer who added beautiful racks to hang pots and pans out in the open, pro-style appliances, and a pizza oven.
Photo credit: Marc Angeles, inset DFree / Shutterstock.comPhoto credit: Marc Angeles courtesy of The AgencyPhoto credit: Marc Angeles courtesy of The Agency
Sitting on 2.7 acres of lush land, the property has stables for four horses, a tack room/barn, a north-south tennis court, a large swimmer’s pool with spa, organic gardens, koi pond, chicken coop, and an endless lawn to enjoy the outdoors.
#2 This mid-century modern home built by Steele & Van Dyk resembles a semi-secluded paradise
The 8.86-acre property located in the Sonoma County town of Sebastopol is one of the most spectacular (and most lovingly preserved) mid-century homes you’ll find.
It was once owned by Charles M. Schulz, the creator of the beloved comic strip Peanuts and his children have fond memories of the property, which was used by their father as a creative studio.
Photo credit: Jim Nevill Productions courtesy of Coldwell Banker Realty
There were several lots on the original 27-acre property such as Schulz’ main house, his grandmother’s house, a large pond, a baseball field, a miniature golf course, a large swimming pool, an enclosed entertainment pavilion, and his studio, all surrounded by vineyards and apple orchards.
The family who bought the property after Charles Schulz’ ownership made a few changes to the studio but made sure not to alter the nature of the design.
They renovated the studio and turned it into an inviting one-bedroom home which operated as a licensed vacation rental for a few years.
True to the architecture of mid-century modern houses, the former art studio has clean lines, minimal decoration, and large, flat panes of glass windows and doors which allow a connection with nature.
Photo credit: Jim Nevill Productions courtesy of Coldwell Banker RealtyPhoto credit: Jim Nevill Productions courtesy of Coldwell Banker RealtyPhoto credit: Jim Nevill Productions courtesy of Coldwell Banker Realty
With the home surrounded by natural beauty, you’ll find a four-hole golf course, Redwoods groves, and walking trails lined with numerous rhododendrons, azaleas, camellias, dogwoods, several varieties of ferns, fruit trees, and plenty of flowers.
Photo credit: Jim Nevill Productions courtesy of Coldwell Banker Realty
#3 One of legendary architect Frank Lloyd Wright’s last projects, a mid-century masterpiece
Sitting on 14 acres of protected land in New Canaan, Conn., we find one of legendary architect Frank Lloyd Wright’s final projects, built in 1955, just a few years before his death in 1959.
Photo credit: Udor Photography courtesy of Coldwell Banker Realty
Known as Tirranna — a moniker inspired by an Australian Aboriginal word meaning “running waters”, as the home is cantilevered over a pond and overlooks a waterfall on the Noroton River — the property is one of Frank Lloyd Wright’s largest residential properties.
The architect also lived here while building the Guggenheim Museum and even used some of the scalloped glass windows from the Guggenheim Museum project to complete the home’s south-facing greenhouse.
Clocking in at a generous 7,000 square feet, the 7-bedroom, 8.5-bath home blends geometric complexity with nature’s flowing curves, in typical Frank Lloyd Wright style.
Photo credit: Udor Photography courtesy of Coldwell Banker RealtyPhoto credit: Udor Photography courtesy of Coldwell Banker Realty
Throughout the home, the architect combined and contrasted soaring ceilings and open living spaces with cozy and cocoon-like mahogany-paneled bedrooms.
Photo credit: Udor Photography courtesy of Coldwell Banker Realty
The home’s functional wood-paneled and stainless-steel kitchen epitomizes the mid-century modern aesthetic, while each of the bathrooms are spa-like and adorned with spectacular wood panels and unique features.
#4 A Mid-century home in Palo Alto that has maintained the integrity of its original design
This mid-century modern home is so simple that it reads as sophisticated.
It bears the signature of internationally recognized architect and Frank Lloyd Wright protégé Aaron Green. The 3-bed, 2-bath home features extensive use of mahogany, slab floors with radiant heat, built-in beds, desks and dressers, and Formica counters.
Photo credit: David Eichler
With flat roofs, both the exterior and interior have a clean and functional design. Inside the home, there is minimal decoration and the various cabinetry adds depth and variation in elevation.
The large windows give magnetic views of the yard. All in all, a gorgeous home updated for modern living while still retaining its mid-century authenticity.
Photo credit: David Eichler
#5 One of the most spectacular mid-century modern houses with a Moroccan theme and great views of the Coachella Valley
This stylish home is located in a compound in Rancho Mirage’s Thunderbird Heights — a prestigious gated hillside community adjacent to Thunderbird Country Club.
Photo credit: Kris Magenheim, inset CBS Radio, Public domain, via Wikimedia Commons
The mid-century home was custom-built for famous entertainer Bing Crosby and his second wife, Kathryn Grant, and was an absolutely perfect fit for its celebrity owner who loved to live large.
Among its most striking features, Bing Crosby’s former home lists a large living room with a stone fireplace and bar, a chef’s kitchen, a movie theater, and a beautiful and spacious 1,400-sq. foot master suite with a stunner of a walk-in closet and a fireplace, as well as four additional en-suite bedrooms.
Spread over 1.36 acres of land, the phenomenal home has approximately 6,700 square feet of living space that extend into the outdoor areas.
Photo credit: Kris Magenheim courtesy of The AgencyPhoto credit: Kris Magenheim courtesy of The AgencyPhoto credit: Kris Magenheim courtesy of The AgencyPhoto credit: Kris Magenheim courtesy of The Agency
The home’s most famous guests, though, were definitely Marilyn Monroe and John F. Kennedy. In honor of their stay there, the two-bedroom attached casita has been named the JFK Wing.
#6 An architectural gem with mesmerizing views of its lush surroundings and direct entrance to Rustic Canyon Park
Set in Los Angeles, this mid-century home designed by notable architect David Hyun has formerly been the residence of prominent entertainment lawyer Gary Concoff and his wife Jean.
The house dubbed ‘the Modern Tree House’ has large floor-to-ceiling windows which provide scenic views of the century-old trees that surround it and encourage a sense of harmony with the outdoor spaces it’s built around. The combination of the large windows and open floor plans let in a lot of beautiful natural light into the two-story home.
Photo credit: Marc Angeles courtesy of The Agency
Notable features on the lower level of the house include an eat-in Eggersman kitchen, a full-service bar, a formal powder room, and three bedrooms. The distinctive spiral staircase leads to the primary suite upstairs fitted with generously sized closets as well as two separate offices and a large den/media room.
Photo credit: Marc Angeles courtesy of The AgencyPhoto credit: Marc Angeles courtesy of The AgencyPhoto credit: Marc Angeles courtesy of The AgencyPhoto credit: Marc Angeles courtesy of The Agency
The massive backyard of the nearly quarter-acre property features a large swimming pool, a unique area for dining set amongst the trees, and a gate directly into Rustic Canyon Park, said to be one of the best parks in Los Angeles.
#7 The lovely mid-century modern house Richard Neutra designed for his secretary
One of the most impressive celebrity homes on our list, Red Hot Chili Peppers bassist Flea’s house is made out of two architecturally significant structures: The first is a modern heptagon-shaped house designed by AD100 architect Michael Maltzan and the other is a lovely midcentury-style house built by famed architect Richard Neutra in the early 1950s.
Photo credit: Cameron Carothers courtesy of Compass
Clocking in at 1,350 sq ft, the midcentury-style home has 2 bedrooms, and one bath, and is surrounded by walls of glass.
The home was built by Richard Neutra for his secretary, Dorothy Serulnic and her husband, George, back in 1953. Neutra, one of the most influential architects of the twentieth century, made sure that his secretary’s home is as livable and comfortable as it is visually appealing.
He designed several built-ins including a sofa system with a record player and concealed speakers, multiple desks, shelving systems, a dining room table, and a sliding breakfast nook, which are still present in the house today (or, rather, were still there when Flea tried offloading his La Crescenda compound a while back).
Photo credit: Cameron Carothers courtesy of CompassPhoto credit: Cameron Carothers courtesy of Compass
Architect Michael Maltzan then built a dramatic, seven-sided house on the property half a century later. The spaceship-like house is surrounded by seven exterior walls (some made out of glass) and is anchored by an open-air courtyard that sits right at the center.
A small cabin built by artist and craftsman Peter Staley provides a little extra space for guests and an eye-grabbing feature.
#8 Master architect Richard Dorman’s award-winning home, the Seidenbaum Residence
Tucked away down a long private driveway into a quiet, secluded compound we find architect Richard Dorman’s Seidenbaum Residence.
With its timeless appeal and unique design, the home is nestled in the Hollywood Hills on Mulholland Drive, overlooking outstanding views of the San Fernando Valley and the Hollywood sign.
Image credit: The Agency
Spanning 3,198 square feet, the five-bedroom, three-bathroom home has two peaked roofs and clerestory windows that capture the California sunshine inside the main living area.
Boasting an open-concept layout, the home blends mid-century and modern designs. From the dining and main living areas to the kitchen, the fluid design captures a sense of tranquility amid the walls of glass that draw in the natural light.
Providing warmth and intimacy, the see-through, double-sided fireplace is a show-stopper in the great room.
Image credit: The Agency Image credit: The Agency Image credit: The Agency
#9 This elegant home with a zen factor beautifully remodeled for modern-day living
Originally built in 1955, this home offers a fresh, contemporary take on the timeless midcentury style. Esteemed architectural firm OWIU (which stands for the only way is up) updated the property, building on its mid-century modern legacy.
Photo credit: Justin Chung courtesy of The Agency
The 1,516-square-foot home is in Mount Washington, a historic neighborhood in the San Rafael Hills of Northeast Los Angeles. It has bright, warm interiors, and is filled with the natural finish of attractive light oak wood.
The house — which has retained its original charm —is all about comfort, timeless design, and an approachable elegance.Kane Lim from the popular reality show Bling Empire was once the owner of this beautiful property.
Photo credit: Justin Chung courtesy of The AgencyPhoto credit: Justin Chung courtesy of The Agency
It has all the standard features of a mid-century home and then some,with floor-to-ceiling windows, clean lines, breathtaking views, and a deck in the primary suite that leads to a Japanese-style garden with bonsai and maple trees.
Photo credit: Justin Chung courtesy of The Agency
The house’s exterior has fresh pathways and gardening beds, a gate that leads to the lower portion of the property, and a large open space that has a sculptural staircase and custom wood bench surrounding a fire pit.
#10 A charming, thoughtfully updated former celebrity home on a quiet hilltop
On a quiet hilltop right above the famed Mulholland Drive sits a 4-bedroom hilltop hideaway once owned by power couple Emily Blunt and John Krasinski.
The secluded, single-level mid-century home has a large open plan design and walls of glass that allow light to enter rooms from multiple angles.
With soaring, beamed ceilings, wide plank hardwoods, and original stonework, the living room is as eye-catching as it is inviting and features a gas fireplace.
The primary bedroom suite is one of the main highlights of this home and it looks and feels like a retreat in itself. With its vaulted, beamed ceilings, and massive windows inviting the outdoors in, a sitting area, custom built-ins, a walk-in closet, and a marble-clad ensuite bath with a soaking tub and steam shower, it truly is a stylish and elegant space.
Photo credit: One Shot Productions courtesy of CompassPhoto credit: One Shot Productions courtesy of CompassPhoto credit: One Shot Productions courtesy of Compass
The flagstone patio is surrounded by mature oak and olive trees and features a bubbling fountain, making it a great place to relax and soak in the picturesque views of mountains, the canyon, and the slivers of the city skyline.
Photo credit: One Shot Productions courtesy of Compass
#11 A spectacular stilt house with jaw-dropping views and a unique taste of Los Angeles history
Nestled in Sherman Oaks, Los Angeles, this is one of 17 unique homes propped up over the side of the Beverly Glen Canyon. The mid-century house was tastefully modernized by its previous owner, acclaimed architect Donald M. Goldstein. It’s undoubtedly a part of architecture history in Los Angeles.
Photo credit: Andrew Orozco courtesy of The Agency
Known as Neutra’s Platform Houses because they were originally designed by legendary architect Richard Neutra, these gravity-defying homes are incredible. Also known as the Stone-Fisher Speculative Houses (as they were built for the Stone-Fisher development company), the unique abodes were later completed by architect William S. Beckett.
The one-story home creates the illusion of a floating vessel in the sky. The unique structure has a rectangular form, horizontal emphasis, long balconies stretching the full width of the house, and large windows to display magnificent views of the San Fernando Valley.
Photo credit: Andrew Orozco courtesy of The AgencyPhoto credit: Andrew Orozco courtesy of The AgencyPhoto credit: Andrew Orozco courtesy of The Agency
Some of the notable features of the 2-bedroom, 2-bathroom home include pyramid skylights, raised ceiling and roof lines, a 300+ bottle wine cellar, a Roman soaking tub, and its black metal exterior is coated with a 24-gauge Kynar finish.
#12 A classic mid-century house in a prime location with a long list of past celebrity owners
The star-studded Los Angeles Tree House — carefully tucked away from prying eyes in the famous Mulholland Drive — has attracted names like Ellen DeGeneres, Heath Ledger, and Hunger Games star Josh Hutcherson as its owners.
Image credit: The Agency
The charming home with its lush surroundings is as serene as it is private. Inside, the clean mid-century modern style is warmed by a blend of natural textures, with walls of glass opening the home to the beautifully landscaped outdoors.
Image credit: The AgencyImage credit: The Agency
The home’s most extraordinary feature is its expansive 2,500-square-foot outdoor deck which is pretty phenomenal.
Image credit: The Agency
It overlooks the leafy treetops illuminated with ethereal lights at night and is furnished with an outdoor grill, lots of seating areas, and an open-air screening room with a retractable projection screen.
#13 A two-story mid-century gem in Bel Air with artsy appeal
Set in a quiet cul-de-sac, the 5,134-square-foot mid-century modern home features 5 bedrooms and 4 baths and has been fitted with everything from stone counters to auto window shades, radiant limestone floors, and high-end SS Thermador appliances.
Image courtesy of Compass
The two-story Bel-Air home features dramatic vaulted ceilings that soar over the living, dining, and family rooms.
With its seamless indoor/outdoor living, scenic surroundings and the floor-to-ceiling windows and doors that are popular in mid-century modern houses, the house is flooded with natural light.
The home’s interior is stylishly refreshed with inviting warm-toned furnishings providing a relaxing and enriching experience, with art and pops of color accenting its midcentury aesthetic.
Image courtesy of CompassImage courtesy of Compass
Midcentury modern houses continue to captivate and inspire with their timeless charm and architectural elegance. From their clean lines and expansive windows to their innovative use of materials, these houses represent a design movement that has left an indelible mark on the world of architecture, one that will continue to attract homeowners and renovators for years to come.
Especially since, as we’ve seen with the examples listed above, updating these midcentury gems creates true masterpieces.
Many people harbor hopes and dreams for how they will live, achieve professional success, start a family, travel, and more. Whether that means launching a nonprofit by age 30, having three kids, sailing around the world, or all of the above, reaching those goals takes planning and focus.
The same is true of your finances. Money helps fund your aspirations, and it needs care and tending. Solid financial planning can help you realize those dreams, from having your child graduate college debt-free to being able to retire early.
So here’s your guide to setting smart money goals and achieving them, step by simple step.
What Are Financial Goals?
Financial goals are the aspirations you have for how you will bring in income, spend it, and save it. These can be short-term dreams, like financing a vacation to Tulum next winter, or longer-term ones, such as retiring by age 50.
Identifying these goals and then creating a roadmap to achieve them is what smart financial management typically boils down to.
Short-Term Financial Goals
Short-term goals are usually defined as things you want to achieve with your personal finances within anywhere from a few months to a couple of years.
Examples of short-term financial goals could be anything from starting an emergency fund to finding a budget that works for you to saving up for a new mobile phone.
Long-Term Financial Goals
When you pull back and think big-picture about money management, you have likely entered the realm of long-term financial goal setting. These are goals that can take several years or even decades to achieve.
Examples of long-term goals would be saving enough money to buy a house, put your kids through college, or retire comfortably.
What Are S.M.A.R.T. Goals?
When you are thinking about your financial goals and doing some research, you may come upon the acronym S.M.A.R.T. Think of this as a guideline to help you set and achieve your money aspirations. Here’s what it stands for:
• S for Specific: Instead of your goal being “to be financially comfortable,” try to be more precise. Perhaps your goal would be to have no debt except your mortgage and a certain amount in your retirement fund.
• M for Measurable: It can be wise to assign real numbers to your goals. For instance, to save $200K in your kids’ college funds is a measurable aspiration. Just saying, “to pay for college” can be too vague to work toward.
• A for Achievable: Setting unrealistic expectations can lead to frustration and disappointment. Think about your lifestyle, income potential, cost of living, and other key factors, and set reasonable goals.
• R for Realistic: Similarly, plan steps to achieve your goals realistically. Don’t expect to cut your expenses to the rock bottom or ignore the impact of inflation over time.
• T for Time-based: Give yourself specific goals and due dates, such as “Save $500 a month until I have $5,000 in my emergency fund 10 months from now.”
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How to Set Financial Goals
Next, consider the specific steps of setting financial goals. Break it down as follows:
1. Assessing Your Finances
Figuring out exactly what your current finances look like is a vital step. Sure, you probably know when you get paid, but have you checked how much is going toward your retirement savings every pay period or — gulp — exactly how much you’re spending on food delivery? Keeping a close eye on your finances might help you set smarter money goals.
It might seem easy to ignore the finer details of our finances in favor of blissful ignorance, but failing to know where you and your money stand might harm your financial health down the line.
So if you haven’t looked at where your money is going in a while, taking a look at how much money you’re bringing in, how much you’re spending, and how much you’re saving might help you set more meaningful money goals.
• Check out your bank statements, credit card statements, and even online banking records can help you determine where your money is going every month.
• Write down big numbers like credit card, personal loan, or student loan debt. This can help you plan for payoff.
• Consider using tech tools to help you wrangle your finances. There are plenty of apps you can download, and online banking might be able to help you too. Typically, banks offer apps where users can easily access details about their spending and balances. Your credit card bill or app can also often provide a graphic representation of where your dollars fly off to each month.
2. Figuring Out What Is Most Important to You
Once you have a snapshot of your overall financial situation, it can be worthwhile to spend some time reflecting on your money goals: what is really important to you.
While there are many things a person ideally should be saving for, like a down payment on a house or retirement fund, your financial goals might not be the same as your sibling’s or your coworker’s.
Just like your parents always told you: You’re unique. And so is the process of setting financial goals. What might they look like?
• You might want to pay off student debt as fast as possible in order to free up more cash every month.
• You might be working toward public service loan forgiveness and not be as focused on quickly paying off student loans.
• Perhaps your financial goal is to save up an emergency fund or take a vacation in six months.
• You might want to retire and move to another country by the time you’re 55.
It’s likely that your goals will be a mix of short-term and long-term aspirations, as described above.
3. Establishing a Fun Budget
Okay, but what if you just want to go clothes shopping once a month without feeling guilty or take that Budapest vacation you’ve been dreaming about?
Make it work! Setting a financial goal is all about having your money serve you. Here are some pointers:
• Planning out your discretionary spending might not only help keep your finances on track but can also help you inject an extra fun quotient into your life. That’s a win-win.
• When a budget is too harsh and punitive, you might well wind up making impulse buys or otherwise overspending. If you know you have some cash stashed for mood-lifting purposes, you can hopefully avoid that scenario.
But whether you’re focused on saving up for a down payment on a house or a trip to Disneyland, you won’t get there without a plan. Making a budget will get you focused and help you take control of your finances.
4. Staying On Track
Once you’ve decided on a money goal or two, it’s time to put a plan into action. Your plan will vary depending on whether you’re tackling a long-haul climb out of credit card debt or saving an emergency fund. A bit of advice:
• Managing your money isn’t a “set it and forget it” proposition. Life happens. You may get a raise one month, and then have a (surprise!) major dental bill the next. It’s important to check in with your money regularly.
• Adapt your budget when things shift. Everything from getting a nice bonus to having a baby can be a good reason to check in with your money goals and recalibrate.
• Whatever your financial goals, there are tools that can help you along on your financial journey. Having the right banking partner can play a crucial role. Look for a bank that can help you set up automatic deductions from your checking account on payday to savings toward your financial goals. And find a bank that doesn’t charge you all kinds of fees; after all, they’re enjoying the privilege of using the money you’ve deposited!
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Types of Financial Goals to Consider
If you’re looking for help brainstorming how to manage your money aims, here are some popular financial goal examples to consider:
Build an Emergency Fund
Whether you’re easily covering your monthly expenses or grabbing change from the bottom of your bag to buy a coffee, many people are living paycheck to paycheck. But what if that paycheck disappeared or if you had a large, unexpected expense? Enter the emergency fund.
Recent history has taught us a lot about how emergencies can arise. Stashing away an emergency fund might help you comfortably weather a pandemic, a “company-wide restructuring” that eliminates your position, or an unexpected illness that cuts into your freelance earnings.
Consider a long-term financial goal of setting aside about three to six months’ worth of expenses to help you weather any rough financial waters that may lie ahead.
Track Your Spending
As mentioned above, keeping track your expenses is important. Sometimes, spending that starts as an occasional thing (that TGIF latte) becomes a regular expense that drags down your budget.
Or you might find that you are dealing with lifestyle creep, which occurs when you earn more but your spending rises too, keeping you at the same level of wealth.
If you track your expenses, you can see how your money is tracking. You might decide to cut back on streaming services or realize that now that you’ve paid off your credit card debt, you could put more toward retirement.
Pay Down Credit Card Debt
High-interest credit card debt can feel like a treadmill: You keep putting in more and more effort, seemingly without getting closer to the finish line. Many of us struggle with it. The average balance that consumers carry as of the start of 2023 was over $7,000, and the average interest rate as of mid-2023 topped an eye-watering 24%.
With numbers like that, it can take a very, very long time to pay off what one owes, especially if you only make the minimum payment. What’s more, if your balance is more than 30% of your card’s credit limit, your credit-utilization ratio may not look too attractive to the credit reporting agencies (Equifax, Experian, TransUnion), and your credit score may skid south. In fact, some say that it’s financially healthiest to use only 10% or less of the credit your card extends to you.
It’s no wonder that for many of us, setting a financial goal involves the words “pay off my credit card.” Indeed, making a plan to pay down debt instead of focusing on those minimum monthly payments could help you dramatically improve your finances. Your credit card statement will tell you how much to pay to get rid of debt in three years; that can be a helpful guideline. If you need other options, consider:
• A balance-transfer credit card deals, which offer low or no interest for a period of time (typically 6 to 18 months), may also be useful.
• A personal loan, which may offer a lower interest rate. You can use that to pay off the credit card debt and then have a lower amount due to pay off the loan.
• You might also consider a debt management plan or meeting with a nonprofit debt counseling agency if you feel you need additional help.
When you get out from under the burden of this kind of debt, other doors (like to a home you own) may open. It can give your budget just the kind of breathing room you crave.
Pay Off Student Loans
Paying off student loans is another move that can help you reach your financial goals. Doing so frees up funds in your budget for other uses. Some ideas:
• Make extra payments toward the principal when possible. That might mean a little more every month or applying a windfall like a tax refund.
• Refinance a student loan. This could potentially lower your rate and help you pay off your debt sooner.
• Pay biweekly instead of monthly. This means you make an extra payment each year, again helping shorten the timeline to becoming free of student loan debt.
• Enroll in autopay. Federal student loan servicers and many private lenders will lower your interest rate a bit if you opt into automatic payments. While it won’t make a huge dent in what you owe, every little bit can help.
Contribute to Your Retirement Fund
Most of us know we should be saving for retirement, but that financial goal can be easier said than done when there are so many competing places to put our money.
The good news is that when you set up a retirement fund and start saving, even small amounts can grow over time, which makes saving for your golden years a great financial goal. Contributing regularly — whether through your employer’s plan or an IRA — is worthwhile, especially in times like these when inflation is high.
Many experts say that a smart financial goal is to be saving 10% to 15% of your pre-tax paycheck for your retirement. One smart move: If your employer offers a company match of dollars put toward retirement, put in at least the minimum required to snag it. So if your company says you must contribute 6% of your salary to get a 50% match, that means if you put in 6%, they will add 3% to your savings. Don’t leave that money on the table!
Save More Money
Another way to hit your financial goals, big and small, is to save more money. Here are a few techniques:
• Automate your savings. Set up seamless recurring deductions from checking to savings for just after payday. Doing so means you don’t have to remember to allocate the funds. And you won’t see the money sitting in checking, tempting you to go shopping with it.
• Challenge yourself each month to give up an expense. For instance, don’t buy any pricey coffees for one month and put aside the savings. Next month, no movies. The following, no takeout lunches. You can do it!
• See about bundling insurance premiums or paying annually vs. monthly to save money.
• Negotiate bills. See if your credit card provider will lower your rate, for starters.
How to Adjust Your Financial Goals if Your Circumstances Change
Sometimes, life throws you curveballs. You don’t get the raise you were hoping for. A family member has a medical issue that requires more money to manage than you expected. Or you move to a new town with a higher cost of living.
In these situations, you may need to ramp down some of your financial goals. Perhaps you can’t have that emergency fund fully saved by the end of this year. You could lower how much you put away and reconcile yourself to the fact that you won’t meet your goal as soon as you would have liked.
This is just another reason why checking in with your money and adjusting your budget often is important.
And don’t forget the bright side: If you get a major salary bump or a windfall, you can use that to crush your goals that much sooner. Staying flexible can be vital, regardless of which way your finances are trending.
The Takeaway
Setting smart financial goals is an important step in managing your money and achieving your life goals.
By taking such steps as evaluating your financial situation, creating a budget, and setting smart benchmarks, you can be on track to check off your aspirations. Whether that means saving for summer vacations, eliminating credit card debt, or retiring early, taking control of your money can be a very good feeling. And finding the right banking partner can help make the process even easier.
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FAQ
What is a good financial goal?
Financial goals need to reflect what’s important to you, but for most people, they are a mix of short-term aspirations (like having an emergency fund and minimizing credit-card debt) and long-term plans, like retirement savings.
How do you stick to a financial goal?
Sticking to a financial goal can be easier if you set up automatic deductions that transfer money from checking (where you might be tempted to spend it) to savings. Also, getting familiar with your finances, developing a plan, and regularly checking your progress are good moves.
What are some money management tips?
It’s a good idea to assess your finances and make short- and long-term goals. Then, allocate a percent of your earnings and set up automatic deductions to your savings; pay down high-interest debt (like credit cards); establish an emergency fund; and start saving for retirement. Even if it’s just a small amount, it will grow!
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Metro Atlanta’s housing market last month downshifted the way it usually does in mid-summer, with higher mortgage rates applying an added brake.
Fewer than 4,900 homes were sold in the 12-county core of the region in July — down 16% from June — as the median price of a sale edged down slightly to $400,000, according to the Georgia Multiple Listing Service.
The market typically decelerates as the start of school approaches and families’ scramble to lock in new addresses eases. Moreover, the market has been in a year-long slide with home sales in July down 21% from the same month last year, according to Georgia MLS.
Mortgage rates have been hovering near their highest levels in two decades amid the Federal Reserve’s sustained efforts to tame inflation. That has been a problem at both ends of the supply-demand equation— with buyers facing headwinds and many would-be sellers deciding not to list their homes.
“It’s an issue especially for first-time homebuyers,” said Latoya Forbes, broker at Village Premier Collection, specializing in the city and the eastern suburbs. “Those rates make their monthly payments so much higher. There are absolutely some people staying out of the market because of it.”
Those on limited budgets who are intent on buying cannot be too choosy, she said. “You don’t have the luxury of saying, ‘I only want to stay on this side of town.’”
In the past year, rates have been higher than any time since the spring of 2002.
The average 30-year fixed-rate mortgage peaked at 7.08% interest last fall and, while it hasn’t hit that mark since, it’s been consistently flirting with 7%.
But it is not just buyers thinking about higher rates. Many current homeowners who might be in the market for a new home are thinking about the low rates they have now on their current mortgages and the higher cost of a loan on a new home.
Many of them held back from selling, which depresses inventory — that is, the numbers of homes listed for sale.
Buyers seem to be gritting their teeth and accepting the reality of higher rates, said Connie Spaziano, managing broker at Re/Max Around Atlanta, which has four northern metro locations. “We have more buyers than sellers. The real issue is low inventory.”
In a balanced market, in which buyers and sellers have roughly equal negotiating power, the number of homes for sale equals at least six months of sales. But inventory in metro Atlanta has been consistently less than two months of sales for more than a year.
There were 11% fewer listings than a year ago, when inventory was already historically sparse, according to MLS.
That shortfall has made newly built homes an ever-larger part of the picture, perhaps 30% of overall sales. And with listings few in number, new construction is often snapped up quickly.
Smith Douglas Homes expects to build 1,000 homes in metro Atlanta this year, said James Van Kirk, executive vice president of the Atlanta-based builder.
“This year is going much better than weanticipated,” he said. “We attribute a lot of the demand to a lack of re-sale inventory on the market.”
In late July, when homes went on sale at the company’s 27-house development in Dallas, in Paulding County about 30 miles northwest of Atlanta, four sold almost immediately at prices between $330,000 and $380,000, he said.
But buyers who want a home for less than $300,000 must go farther, Van Kirk said: Below the $300,000 line, the company has built townhomes in Jasper and houses in Dalton.
After the collapse of the housing bubble and the ensuingGreat Recession, home constructionvirtually ceased. As the economy recovered, the region again started drawing transplants from around the county, but building has not caught up.
Amid strong job growth and a surge in home values, the Atlanta area remains affordable compared to many competing metros. According to real estate marketplace Zillow, the most common out-of-state location of wannabe buyers looking at metro Atlanta homes ismuch higher-pricedNew York.
According to national brokerage Redfin, the median home price in metro New York is $800,000.
Metro Atlanta housing report
Atlanta housing market*, in July
Number of homes sold: 4,827
Median sales price: $400,000
Number of listings: 10,654
Changefrom a year earlier
Number of homes sold: -21.2%
Median sales price: -0.6%
Number of listings -11.0%
Compared to the month before:
Number of homes sold: -16.1%
Median sales price: -2.2%
Number of listings: 4.0%
Mortgage rates, average 30-year mortgage
Highest: 18.39% (1981)
Lowest: 2.65% (2021)
Year ago: 4.99%
Two years ago: 2.77%
Five years ago: 4.59%
Ten years ago: 4.40%
Recent: 6.90%
*For the 12 counties centered on the city of Atlanta
Source: Georgia Multiple Listing Service, Federal Reserve Bank of St. Louis, Freddie Mac