Tiny homes coming to Kalamazoo’s Northside neighborhood as affordable housing solution

KALAMAZOO, MI — The first phase of the Tiny Houses of HOPE project will break ground in Kalamazoo on Thursday, Oct. 8.

The first phase will focus on Kalamazoo’s Northside neighborhood adding six tiny homes and a center for wrap-around services for the nonprofit Helping Other People Exceed (HOPE) thru Navigation.

The $500,000 project has been years in the making as HOPE Thru Navigation founder Gwendolyn Hooker was adamant about creating an affordable housing solution for the population her nonprofit serves.

Related: Affordable tiny home neighborhood planned in Kalamazoo

The tiny homes will be available for those who have been incarcerated, have at least one year of sobriety under their belt and are currently employed. Hooker said she already has 200 candidates in Kalamazoo who fit this description.

Through her work at HOPE thru Navigation, Hooker said she was continually seeing clients couch surfing because they were turned away from landlords based on their substance abuse or criminal background.

Hooker zeroed in on housing for this population based on studies showing that relapse and recidivism rates drop by 70% if a person leaving treatment or prison has housing and employment in the first 45 days.

“Everybody knew that it was a need, but a lot of people were not loving the idea of the demographic,” Hooker said. “I was immovable on that. That was the main part of the project that couldn’t be changed.”

The plan eventually received financial backing from Kalamazoo Community Foundation and Local Initiatives Support Corporation (LISC) Kalamazoo. Community members also came together to donate $51,000.

“Not folks that were rich or have foundations, but just folks who care about equity and housing for everybody,” Hooker said. “We started out with raising money from the community first, because we wanted to make sure that we have community

Continue Reading

Will a Housing Market Crash Affect Home Depot Stock?

Will the housing market crash again? Maybe. Many aspects of the economy are cyclical, and housing prices do occasionally fall. Is a housing crash imminent? That’s harder to answer.

Some have sounded the alarm on housing for good reason. Consider the famous Case-Shiller Home Price Index, an inflation-adjusted metric created by Standard & Poor’s tracking housing prices. The index’s value was 100 back in the year 2000 and had been close to 100 when applying the index’s criteria backward to the 20th century. But since 2000, it has risen above 180 on two occasions. The first time preceded the housing crash of the Great Recession.

The second time the Case-Shiller index exceeded 180 is right now. In reality, it passed the mark way back in 2016, and it’s currently around 215. So no need to panic: Crossing 180 doesn’t immediately flip a housing-crash switch. It just shows housing prices have gone up a lot. The bigger problem, though, is how much faster home values are growing relative to average income. Consider the data over just the last 10 years.

Case-Shiller Home Price Index: National Chart

Data by YCharts.

It’s probably unsustainable for home values to outpace personal income long term. Eventually people could be priced out of affordable housing, and that could spark a housing market correction. Will that affect companies like Home Depot (NYSE:HD)?

To answer that, we can start by going back to the Great Recession. 

A model house sits atop Jenga blocks while a businessman removes a piece, creating instability.

Image source: Getty Images.

The last time Home Depot’s revenue fell

Home Depot’s revenue fell from 2007 to 2009. In fiscal 2006, when things were going well, the company generated $90.8 billion in full-year net sales. In fiscal 2009, it generated just $66.2 billion — down 27% over three years. Likewise, net earnings took a hit as the company lost operating leverage from lower sales per location.

Continue Reading

US new-home sales surge to fastest pace since 2006 as housing market shines through pandemic

a car parked in front of a sign: Associated Press

© Associated Press
Associated Press

  • Sales of new US homes accelerated by 4.8% in August, to an annual rate of 1 million units, the Census Bureau reported Thursday.
  • That rate was the highest since 2006 and marked four consecutive months of increasing sales.
  • The agency’s estimate of new homes for sale fell to 282,000, reflecting 3.3 months of supply at the current pace of sales. That’s the shortest period in data going back to 1963.
  • Though the housing market has been one of the few bright spots in the virus-rattled economy, some fear that dwindling supply will soon halt the sector’s rally.
  • Visit the Business Insider homepage for more stories.

The US housing market extended its winning streak into August as Americans continued taking advantage of record-low mortgage rates.


Load Error

Sales of new homes leaped by 4.8%, to a seasonally adjusted annual rate of 1.01 million units, the Census Bureau announced Thursday. The rate was the highest since 2006 and marked four months of increases. Economists surveyed by Bloomberg had expected the rate to drop last month to 890,000 units.

New homes’ median sale price fell from the year-ago period, to $312,800. The average sale price was $369,000.

Read more: Legendary investor Mark Mobius told us his process for finding the most exciting bargains in far-flung markets around the world amid the COVID-19 crisis — and shared his 5 top stock picks right now

July’s jump was revised higher, to a 14.7% gain.

The Thursday report also revealed a growing strain in housing supply. The seasonally adjusted estimate of new homes for sale fell to 282,000 from 291,000. The latest reading represented a supply of 3.3 months at the housing market’s current rate of sales, the shortest period in data going back to 1963.

The housing market has been

Continue Reading

New Home Sales Strongest Since 2006: Top 7 Housing Stocks

Sales of new single-family homes exceeded 1 million in August 2020, marking the highest level since September 2006. The metric, which has been rising for four consecutive months, exceeded analysts’ expectation by 13.6%.

The U.S. housing market has shown a resilient performance over the past few months despite ambivalent market predictions and fears of a second wave of the virus. Not only did the industry offset these COVID-19-related headwinds but also tackled lumber price swings, mortgage delinquencies, U.S.-China trade spat, labor shortage and inflating land prices.

This industry has experienced a strong V-shaped recovery since May and its growth is now exceeding pre-pandemic levels fueled by the work-from-home initiative and record low mortgage rates.

Since May, the Zacks Building Products – Home Builders industry has improved 57.1% compared with the Zacks Construction sector and S&P 500 composite’s 35% and 14.6% rally, respectively.

Inside the Numbers

August new home sales increased 4.8% to a seasonally adjusted annual rate of 1,011,000 from an upwardly-revised July rate of 965,000 units. Also, the sales pace was 43.2% higher than the year-ago period.

Regionally, the metric rose in Northeast and South (accounting for bulk of transactions) by 5% and 13.4%, respectively. Sales in the Midwest and West, however, dropped 21.4% and 1.7%, respectively, in August. Nonetheless, sales in all the four regions increased in double digits from the August 2019 level.

Median sales price in August was $312,800, which fell 4.6% month over month and 4.3% from the year-ago level. Average sales price of $369,000 also declined 0.8% from the prior month and 6% from August 2019.

August housing inventory decreased 3.1% from July and 13.2% from the year-ago period to 282,000. It would take just 3.3 months to deplete the current supply of homes, down from 3.6 months in July and 5.5 months in

Continue Reading