MReport May 2018

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TH E M R EP O RT | 55 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA Tech Employees Flee From Silicon Valley PRIME-AGE WORKERS ARE RETREATING FROM THE SILICON VALLEY DUE TO THE LACK OF AFFORDABLE HOUSING. CALIFORNIA // According to an article by the Observer's Sissi Cao, prime-age workers (those in their mid-30s) are retreating from Silicon Valley due to the lack of affordable housing. "A typical software engineer at the highest-paying tech companies in the area now needs to spare a third of his or her income to afford a home near work, which runs around $1.2 million," Cao reported. In an attempt to alleviate this problem, Trulia found that the Golden Gate City built more new homes than any other city in 2017. Last year the city approved 94.6 percent more homes than its aver - age between 1980-2016. The total number of permits in 2017 was 6,270. Although San Francisco's afford- ability crisis has been waging for more than a decade, it seems to be reaching epic proportions. A recent Black Knight report found that San Francisco hit a new peak in home appreciation, as prices rose by more than 11 percent year-over- year in December 2017. One way tech companies are re- acting to the affordability problem is by building branches outside of San Francisco to retain employees, as conveyed by Lux Capital co- founder Josh Wolfe, who spoke to Cao. However, for residents who don't want to move out of the city, unorthodox living arrange- ments may be the solution. New York Times writer Nellie Bowles recently delved into this problem, finding that some professionals are moving back into dorms when priced out of the single-family housing market. "Everybody told me housing in San Francisco was really expen- sive, but I was like, 'I live in New York, how much more expensive can it be? … I was a bit cocky," Katherine McKim, 37, told Bowles. Tracking Amazon's HQ2 Impact HAS THIS TECH GIANT FIGURED OUT WHERE IT'LL BUILD ITS SECOND HEADQUARTERS? WASHINGTON // The hottest question in business for the past six months has been, "Where will Amazon build its second headquarters?" With many cities still in the mix, it's still anyone's guess ... but Zillow thinks it has it figured out where this Seattle-based company will move next. A new study by Zillow predicts that Amazon will choose either Atlanta or Northern Virginia, near the Capital Region, for its much- sought-after HQ2. Zillow's predic- tion is not a capricious one. The firm polled 85 housing experts and economists. Twelve said that Atlanta seems to be the likeliest bet. That's the largest single consensus of the poll. The city, Zillow said, has an enviable combination of steady growth and appeal with generally affordable housing and rents. In fact, among the 20 cities on Amazon's list (winnowed from an original list of 238 bids), "Atlanta has the fourth-lowest home values and rents, making it an attractive option for Amazon, which is expected to hire as many as 50,000 people to come work at the new headquar- ters," the report stated. Also, Atlanta "is undergoing an urban renaissance with new public infrastructure providing attractive opportunities for employers seeking to lure young urbanites," said Zillow Senior Economist Aaron Terrazas. In addition to affordability, experts cited land availability, talent, and business-friendly tax codes as a few reasons why they believe Amazon will choose Atlanta as its second headquarters Not so far from Atlanta, Northern Virginia is among the more expensive housing markets on the top 20 list. However, placement here would "put Amazon at the doorstep of the nation's top policy- makers. In other words, exactly the kind of place that a major business could inject with stable and steady job opportunities," the report claims. "Northern Virginia has its benefits as well," said Terrazas, "as it's close to a highly educated workforce and a well-developed public transit infrastructure in the D.C. area." A growing tech workforce was another major reason by Northern Virginia is in a neck-and-neck tie with Atlanta. As with Atlanta, 12 experts said Northern Virginia would be the place. Close behind Atlanta and the D.C. area is Austin, one of two Texas cities in the running for HQ2, and the second-likeliest op - tion. Eleven experts said Austin, with its tech growth and strong appeal overall, would be the place for Amazon. The other Texas city still in the hunt, Dallas, is consid - ered the fourth-most-likely home for Amazon. Least likely to win the coveted HQ2 are New York and Los Angeles, Zillow reports. Both markets' biggest drawback is how expensive it is to live there already—something Amazon is reported to be taking seriously. Wherever HQ2 goes, that city will need to be prepared for some real impact. "The potential economic ben - efits of hosting Amazon HQ2 are tantalizing, and will tempt the 20 municipalities still in the hunt to dangle significant tax incentives to get a deal done," said Terry Loebs, Founder of Pulsenomics. "These cit - ies should be prepared not only to justify their financial inducements, but to carefully weigh the social risks and costs that could ac- company their HQ2 commitment. The mix and degree of these potential risks, such as diminished affordable housing stock, more congested roadways, and greater income inequality, vary consider - ably across the 20 markets." But wherever it goes, if history is any guide, the effects will be sizable. "As the experience of Seattle sug- gests, Amazon will not only directly bring thousands of high-paying jobs to the chosen city, but also has the potential to transform the regional economy," Terrazas said. "The local jobs boom that Amazon's HQ2 promises will spur demand for the full spectrum of housing types, ranging from urban apartments to suburban single-family homes." Amazon will let us know who wins the prize later this year. Georgia Leads Nation in Poor Money Management NOT ALL AMERICANS ARE PROS AT MONEY MANAGEMENT DESPITE IT BEING A SKILL THAT IMPACTS THEIR DAILY LIVES. GEORGIA // WalletHub recently listed the cities with the best and worst money-management skills. Three California cities, made it into the top five (Cupertino, Los Altos, and Saratoga), followed by Scarsdale, New York and Sun City, Florida. On the bottom end of the spectrum, Fairburn, Lithonia, and Colleague Park in Georgia are the three worst cities with Bastrop, Louisiana, and Dolton, Illinois closing out the bottom five. To rank their list of more than 2,500 cities, WalletHub based their finding on 10 key metrics, each graded on a 100-point scale, with 100 representing the best-money-man - agement skills. WalletHub used data from TransUnion and RealtyTrac. One of the metrics used was mortgage debt-to-income ratio. The top five cities maintaining the lowest mortgage debt-to-income ratio were East St. Louis, Illinois; Chester, Pennsylvania; West Mifflin, Pennsylvania; Niagara Falls, New York; and McKeesport, Pennsylvania. In an article that corresponded with WalletHub's findings, financial writer Adam McCann studied the 2017 Consumer Financial Literacy Survey prepared for the National Foundation for Credit Counseling and The Boeing Employees' Credit Union by Harris Poll. McCann found that U.S. households pay little to no attention to financial literacy. While 80 percent of the popula - tion surveyed indicated they need professional guidance on matters related to personal finance, only 40 percent suggested they maintain a budget to manage their finances. A debt-free life and fantastic credit are then just a consequence of handling your finances the right way. LOCAL EDITION DATA

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