Americans with more education are optimistic about the economy. The rest aren’t.

nevada las vegas coronavirus unemployment
Entertainment and events have come to a halt during the COVID-19 pandemic, highly impacting Las Vegas’ work force.

  • A Morning Consult analysis looked at consumer confidence throughout the pandemic.
  • It has a K shape like the wider recovery, with more educated Americans more confident about work.
  • The new stimulus could change this K shape, but may not solve things like delayed rent payments.
  • See more stories on Insider’s business page.

As the coronavirus pandemic disrupted life throughout 2020, economists debated the shape of the recovery from it. Would it be a V shape, a U shape, or even an L shape?

The answer that emerged was something different: A K shape, in which the well off recover like they’re in a V, and lower-income Americans never recover at all. President Joe Biden validated the diagnosis back in 2020, on stage during a presidential debate.

It stands to reason, therefore, that consumer confidence would follow the same K shape, but the results are nevertheless striking. A new analysis from Morning Consult, looking at consumer confidence throughout the pandemic, found lower-income Americans’ confidence in the economy dropped and stayed low during a slow rebound. Meanwhile, higher-educated Americans confidence rebounded like a V and continued to grow. In every state, people with bachelor’s degrees earn more than people without bachelor’s degrees.

John Leer, an economist at Morning Consult and the author of the analysis, told Insider that over the summer, people with bachelor’s degrees felt more confident that in their ability to hold onto their jobs and not lose pay.

The story was the opposite for others. At that point, Leer said, there’s a “real realization among lower-income workers that while they may have been able to hold onto their job to date, they’re much more likely to suffer a loss of pay or income sometime in the future.”

That divide only grew more K-shaped as the pandemic continued. A few months later, Leer said, those higher-educated workers’ confidence in their ability to hold onto their jobs translated into a willingness to engage in wage bargaining; they pushed for increases in their pay and benefits.

“The exact opposite” was true for lower-income Americans.

“If they had managed to hold onto a job, they certainly were not in a position to ask for an increase in salary or benefits,” Leer said.

He added: “What you see over the course of the past year is a really strong divergence in the degree to which Americans exhibit confidence in the economy, in their own personal finances, based on their level of education.”

K shape persists throughout rounds of stimulus

While the size of the first stimulus was “appropriate,” some snags with the rollout impacted confidence. Leer said lower-income Americans were less likely to have bank accounts or to have filed taxes in 2019 – meaning it took longer for the IRS to distribute money to them.

There was a similar phenomenon with states’ unemployment programs and getting money to unemployed workers, Leer said; Insider’s Allana Akhtar and Nick Lichtenberg reported that 35 different states ran into difficulties getting unemployment insurance to their jobless residents.

“As a result, we actually see confidence among those people with higher incomes rebounding a lot faster, because they were both more likely to receive the money they were due sooner, and, in addition, they were more likely to be employed in sectors that rebounded faster,” Leer said.

Notably, checks went out faster with the second stimulus, and confidence and spending grew – although higher-income Americans already had elevated levels of confidence.

“I view the recovery plan essentially as a lifeline for folks who are really struggling right now to make ends meet,” Leer said.

Prior research from Morning Consult found that the $1,400 stimulus checks in the $1.9 trillion stimulus package could help 22.6 million Americans pay their bills through July.

But when it comes to the K-shaped recovery, we’ll probably get a sense of how that’s playing out in September or October, according to Leer; it’ll mostly depend on what job recovery looks like.

“The gap in the so-called K-shaped recovery will depend on getting lower income and less well-educated workers back to work,” Leer said.

There’s also broader issues around what Leer calls “deferred liabilities” – the rent and mortgage payments that millions of Americans haven’t been able to pay over the past year. While the American Rescue Plan does offer billions in housing assistance, some progressives are saying it’s not enough to close the gap. Rep. Ilhan Omar of Minnesota just introduced the Rent and Mortgage Cancellation Act; she said that, currently, 12 million Americans owe $6,000 in back-rent on average.

To address this, Leer says “we have to be very honest with ourselves.” He said he would take an approach similar to a financial institution with someone who can’t pay back their debt.

“You’ve got to make some sort of calculated decision as to whether or not it’s reasonable to ask somebody to pay back what they owe,” Leer said. There could be families, he said, who haven’t been able to pay their rent for 12 months – and may not be able to for the whole pandemic.

“That sort of debt overhang is gonna slow down the recovery going forward. And I would hope that we as a country come up with some sort of solution to that.”

Read the original article on Business Insider

HUD urges Congress to pass Biden’s $1.9 trillion stimulus to help struggling homeowners

GettyImages apartment buildings
Banners against renters eviction reading “no job, no rent” is displayed on a controlled rent building in Washington, DC on August 9.

  • HUD is urging Congress to pass the American Rescue Plan to provide further aid to the housing market.
  • The $1.9 trillion stimulus has measures for emergency rental assistance and homeless relief, among others.
  • A HUD official says further extending eviction and foreclosure bans isn’t in the bill, but is on Biden’s radar.
  • Visit the Business section of Insider for more stories.

As passage of President Joe Biden’s $1.9 trillion stimulus approaches, the federal agency that is focused on housing is urging Congress to pass its measures for struggling homeowners.

The US Dept. of Housing and Urban Development, or HUD, expressed support on Thursday for the package’s funding for emergency rental assistance and homelessness prevention, among other things.

As one of his first executive orders, Biden extended the moratorium on evictions to help struggling renters, and more recently, he extended the moratorium on home foreclosures to provide homeowner relief.

According to the Center on Budget and Policy Priorities, one in five renters is behind on rent, and over 10 million Americans have fallen behind on mortgage payments since COVID-19 began.

While the expansion of foreclosure and forbearance programs were necessary for homeowners and renters, a fact sheet from HUD provided to Insider said, the housing provisions in Biden’s American Rescue Plan need to be passed to provide further financial aid.

“To bolster these efforts, it is critical that Congress pass the American Rescue Plan Act of 2021 to deliver more aid to people struggling to pay their rent or mortgage,” the fact sheet said. “The American Rescue Plan Act of 2021 includes a number of provisions to provide immediate and direct relief to help people across America remain stably housed during the pandemic.”

The stimulus may be necessary relief as eviction moratoriums are increasingly being challenged in court. On Thursday, a Texas judge blocked the Centers for Disease Control and Prevention’s eviction moratorium, saying in a statement that the federal government “cannot say that it has ever before invoked its power over interstate commerce to impose a residential eviction moratorium.” 

With regards to a further extension on the moratorium on evictions and foreclosures, a HUD administration official said in a press call on Thursday that an extension is not included in the bill itself, but that further extensions are still under consideration and would be driven by public health considerations. (This official did not comment on the ruling out of Texas.)

Per the HUD fact sheet, housing aid in Biden’s stimulus plan includes:

  • More than $20 billion in emergency rental assistance;
  • $5 billion for emergency housing vouchers for those experiencing homelessness;
  • $100 million in emergency assistance for rural housing;
  • $750 million in housing assistance for Native Americans and Native Hawaiians;
  • $100 million for grants to housing counseling providers;
  • $5 billion for homelessness assistance and supportive services programs;
  • $10 billion for homeowners behind on mortgage payments and to avoid foreclosures and evictions;
  • $39 million for very low-income borrowers to purchase and repair housing in rural areas;
  • And $20 million for fair housing programs.

The $900 billion stimulus package that Congress passed in December included $25 billion for rental assistance, but a White House fact sheet says American families still owe $25 billion in back rent and require further aid.

“Failing to take additional action will lead to a wave of evictions and foreclosures in the coming months, overwhelming emergency shelter capacity and increasing the likelihood of COVID-19 infections,” the White House fact sheet said. “And Americans of color, who have on average a fraction of the wealth available to white families, face higher risks of eviction and housing loss without critical assistance.”

The House is expected to vote on the American Rescue Plan on Friday, and it will then go to the Senate, where it will likely receive zero Republican votes. 

Read the original article on Business Insider

Make Easy Cash Renting a Parking Space

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You’ve got an empty driveway or garage. You need extra cash. Put the two together and: voila! Rent a parking space. It’s a really easy way to make money – and now’s the time to cash in as the summer looms.

 

Why Renting Out Parking is Ideal

Make cash from your parking space

Making money from your parking space isn’t a new concept. It is, however, going to be far more in demand this year than ever before. So, that’s why it’s a good time to jump on and start earning cash!

More people than ever plan to spend their summer in the UK this year. Booking international travel has become a no-go for the near future – while it looks like the national lockdown will be lifted in time for summer holidays at home. On top of that, many will want to drive to their UK holiday destination – so they don’t need to use public transport and risk being in close quarters with lots of people for extended periods of time.

That means you can make the most of these driving holidays! Your parking space is the perfect offering for those looking for somewhere to pop their vehicle safely for a few days (or longer) while they holiday in your area.

Longer term rental options

Of course, if you live in a prime location, such as near a hospital, you can make the most of renting your parking space the whole year round, too. You can either make money from a regular commuter who wants to park near to their workplace – or from those regularly visiting the area (have you SEEN hospital car park prices?!).

 

Who Can Do It

As long as you have a parking space that’s not in use, you can rent it out. If you have a designated parking space in a residential car park, or a driveway, you can make cash from that space.

The more space you have, the more cash you can make! For example, if your drive fits two cars comfortably (without blocking one in), that’s double potential income.

You don’t even need to be a people-person or present at the time of parking! It just takes a little bit of communication to set up the parking agreement, then it’s money in your pocket. No business experience required!

If you want to rent a parking space on your property, it’s worth checking your home insurance policy first to make sure doing so won’t invalidate your insurance.

What type of parking space rents out well?

Anyone with a parking space can offer it for rent. The places that will see regular customers – especially during the summer holidays this year, are likely to be:

  • Coastal towns
  • Historical towns and cities (particularly those with pedestrianised city centres and only out-of-town parking options!)
  • Areas near popular holiday sites or tourist attractions
  • Parking spaces near train stations (you could score a regular customer with this one!).

If you’ve got more space than most, you could even attract overnight parking for motorhomes and campervans!

 

Finding Trusted Customers

Some people rely on putting a notice in their local newsagent, on a Facebook group or the NextDoor app. This is fine, but you could find you’re out of pocket. For example, someone might refuse to pay up after using your space. You’re also unlikely to guarantee a regular income going this route.

With so many out-of-towners expected in busy tourist areas like the coast and historical cities in the UK this summer, posting local notices won’t attract a regular customer base, either!

The best way to make sure you’re advertising your space, getting reliable customers, and (most importantly) getting paid, is to go through a hosting service.

 

How EasyParking Works

The easyParking app hooks up parking spaces with those who need them! As a host, it’s really easy to use. You register with easyParking and include your payment details via Stripe.

Then, your space is listed on the app. When someone wants to park in your area, they can select your space – and they pay upfront. That means you get guaranteed payment for every parking booking. It also helps you manage parking bookings – avoiding calamities like double-booking.

Using a hosting service like this connects you to the customers you’re looking for – without requiring lots of legwork on your side. Once your space is on the app, it’s there for anyone looking for parking in your area to see! The booking process is easy for parking customers, and hosts (that’s you!) get paid straight away, so there’s no quibble over money.

What does it cost? A tiny 10% of your booking. When you consider how much it costs (let alone the time and effort, too!) to regularly find customers on your own, it’s well worth the fee!

The renters

The benefit of the easyParking app for renters (and therefore for you as a host) is they can search for your space whilst they’re on the move – perhaps even on the journey to the area they want to park in itself!

All they have to do is search for parking, book with a few easy clicks, and then park up. Couldn’t be easier.

You can download the app on the App Store here, or on Google Play here.

 

More Ways to Make Money from Your Home

Want more ideas for making money from home (or with it)? Try these next!

The post Make Easy Cash Renting a Parking Space appeared first on MoneyMagpie.

NYC still has the most homeowners worth over $30 million in the world, study says

New York City skyline
New York City.

  • NYC, Los Angeles, and London house the highest number of individuals with net worths over $30 million.
  • New York takes the top spot globally, per a new report that includes second and third residences.
  • There’s a problem for NYC, though: the ultra-rich may be choosing to primarily live — and pay taxes — elsewhere.
  • Visit the Business section of Insider for more stories.

Out of all of the cities in the world, New York City still has the highest number of ultra-rich homeowners, but there’s a catch.

A report released February 18 by real estate platform REALM and financial information firm Wealth-X found that NYC had the highest number of homeowners with net worths over $30 million as of December 2020, with 24,660 people in that class having a residence in the city. Following behind were Los Angeles with 16,295 ultra-rich homeowners, then London, Hong Kong, and Paris. 

“The largest regional economy in the US ranks first, both for the number of ultra-high-net-worth individuals by primary residence and second-homers,” the report said. “This reflects New York’s status as a global center for finance and commerce that offers a rich blend of cultural and luxury lifestyle opportunities, high-quality education and prime real estate.”

With regard to ultra-high-net-worth individuals, the report also found that:

  • Cities in the West, like London and Australian cities, have the highest shares of ultra-high-net-worth secondary homeowners;
  • Monaco and Aspen have the highest levels of ultra-high-net-worth density;
  • Secondary homeowners are generally slightly younger and have more female representation than primary homeowners. 

When deciding to include secondary homeowners in the report, the two authoring companies said it allowed for a more “holistic view” of the ultra-rich.

“The pandemic has set up the best market for second and even third homes in the luxury real estate market,” Joanne Nemerovski, a luxury real estate advisor for Compass in Chicago, said in the report. “Regardless of how amazing their main residence is, this group of wealthy individuals is used to travel, and it’s hard for them to stay put.”

However, the prominence of second and third residences among the ultra-rich in cities like NYC could be a disadvantage in the post-pandemic economy. The boost in remote working during the pandemic has prompted many wealthy homeowners to move their primary residence to lower-tax, warmer jurisdictions, notably Texas and Florida, potentially leaving a hole in their former cities’ budgets.

According to a Bloomberg report in 2020, the top 1% of New Yorkers paid 42.5% of the city’s total income tax, meaning that if those individuals choose to change their primary residence, NYC’s economy could suffer a major financial blow. 

Housing prices have also been declining in Manhattan since the pandemic has given buyers the option to move to other less expensive cities, putting the ultra-rich homeowner hotspot at risk of losing a significant chunk of its tax base.

In other words, New York could stay the number-one city for ultrawealthy homeowners, just maybe not full-time ones. 

Read the original article on Business Insider