June 16, 2009
Borsen (Denmark) featured Assistant Professor Elizabeth Currid and her research on artists' economic contribution to urban areas. In her book "The Warhol Economy: How Fashion, Art and Music Drive New York City," Currid warns that the rising cost of living in New York is driving out artists who are essential to the city. If new waves of young artists can't afford to move to the city, in a few decades it won't be the culturally interesting place it is now, Currid said. A second Borsen (Denmark) story also featured Currid's work.
June 12, 2009
The Wisconsin State Journal featured the keynote speech by Professor Richard Green at the conference "Housing Outlook 2010: Continued Crisis or Recovery?" "Finding the bottom is really key to getting out of this mess and I do think we're close," Green said. "The long-term outlook for housing is very positive." Green is Director and Chair of the USC Lusk Center for Real Estate.
June 11, 2009
The Capital Times reported that Professor Richard Green will be keynote speaker at "Housing Outlook 2010: Continued Crisis or Recovery?", a conference at the University of Wisconsin-Madison. Green is Director and Chair of the USC Lusk Center for Real Estate.
June 8, 2009
The Cleveland Plain Dealer noted that SPPD Professors Richard Green and Raphael Bostic will speak at a Federal Reserve Bank of Cleveland Community Development Summit titled "Credit, Capital, and Community Building in Transitional Times." Green is Director and Chair of the USC Lusk Center for Real Estate.
June 8, 2009
The Sacramento Bee cited Professor Dowell Myers about illegal immigrants in the United States. A 2004 study released by the Federation for American Immigration Reform said that illegal immigrants cost California $9 billion annually. Myers has disputed that number and countered that it is difficult to quantify illegal immigrants' full economic impact, the story stated.
June 5, 2009
The Los Angeles Times quoted Professor Richard Green about current property values. "If you get away from the coasts, houses are cheap," Green said. In inland areas, some houses are selling for less than construction costs, he noted. Green is director and chair of the USC Lusk Center for Real Estate.
June 5, 2009
The San Jose Mercury News quoted Associate Professor Gary Painter about first-time home buyers. Above all, new buyers should remember that no deal is so good that they should ignore financial common sense, Painter said. They should do the math, and make sure to factor in inevitable changes in the housing market, he added. This story was carried widely. Painter is director of research for the USC Lusk Center for Real Estate.
June 5, 2009
The Los Angeles Downtown News quoted SPPD Distinguished Fellow Stan Ross about a proposed condo tower in L.A.'s downtown. Depending on how quickly the project moves forward, the developer may have to provide a large portion of the project's construction budget up front, Ross said. Due to the current frozen credit market, the developers are unlikely to get traditional financing, he added. Ross is chairman of the board for the USC Lusk Center for Real Estate.
May 23, 2009
The Cape Cod Times cited a report by Professor Dowell Myers regarding a potential labor shortage as the baby boom generation retires. Over the next 20 years, the number of retirees relative to the number of working-age Americans will increase by 67 percent, according to Myers.
May 20, 2009
The Los Angeles Times quoted Professor Richard Green about many homeowners keeping their properties in the hopes that prices will eventually rise. "Until those people are forced to sell, they're not going to," Green said. "That might change if lots of high-income people lose their jobs," he added. Green is director and chair of the USC Lusk Center for Real Estate.
May 19, 2009
La Opinion quoted SPPD Senior Fellow Sherry Bebitch Jeffe about California's perennial budget woes. It's become apparent that the state has been ungovernable for a while now, Jeffe said. "When was the last time we had an effective governor?" she asked.
May 16, 2009
The San Antonio Express-News cited Professor Dowell Myers about demographics and the future of Social Security. The ratio of retired persons to workers will "compound to a 67 percent growth over the 20-year period," Myers said. "The implications for mass retirements and the struggle for replacements in the work force are profound as well," Myers wrote in his book Immigrants and Boomers: Forging a New Social Contract for the Future.
May 16, 2009
The Los Angeles Times quoted Professor Dowell Myers about slowing immigration to outlying areas of Los Angeles. The change is a "temporary pause," and immigration will probably rise again as the economy recovers, Myers said. "Immigrants always respond to the economy," he explained. "The boom and bust cycle is totally normal."
May 14, 2009
The San Francisco Chronicle quoted Professor Dowell Myers about demographic changes afoot in California. "California is aging as the rest of the country is, but it's ahead of the curve in diversity and behind the curve in aging, and that's our big advantage," Myers said. "We have a more useful workforce, and we have more young people in school. That costs more money up front, but it will repay huge benefits in 10 years when the rest of the country has few young people."
May 9, 2009
La Opinion quoted SPPD Senior Fellow Sherry Bebitch Jeffe about the vicious circle of California's budget crisis. If the state doesn't pay its contractors, people won't receive their salaries, and therefore won't spend money, and the state won't receive its sales tax revenue, worsening the fiscal situation, Jeffe explained.
May 8, 2009
KPCC-FM's "AirTalk" interviewed Professor Richard Green about the relationship between real estate brokers and appraisers. "One of the things that let us down the road that we went down was the relationship between the brokers and the appraisers," said Green, who directs the USC Lusk Center for Real Estate. "The brokers had every incentive to get the loan done, not to make sure the loan performed properly, because they were compensated based on originations, not on loan performance; so the last thing they wanted is an appraiser to get in the way of the deal."
May 7, 2009
Investor's Business Daily quoted Stan Ross of the USC Lusk Center for Real Estate about the stress tests of the nation's largest banks. Stress tests might cause an "interesting result" with regard to banks' distressed-home sale policies, Ross said. In assessing how a bank would fare in a deeper recession, the tests might cause some banks to cut their losses by selling bad assets fast, in anticipation that prices might drop even more down the road, he noted. "The good news would be they sell it, get the cash and reloan it out," Ross explained. "They move from a stale asset to a good asset."
May 7, 2009
The San Diego Union-Tribune quoted Professor Chet Newland about best practices in city contracting. Cities should thoroughly check applicants for such positions, Newland said. "You have to go beyond the mere listed references and investigate," he noted. "Contracting is one of the most crucially important and sensitive parts of government. It's essential to have utmost integrity in contracting."
May 6, 2009
Reuters noted that SPPD Senior Fellow Richard Little spoke at the Reuters Infrastructure Summit about a possible national infrastructure bond fund. Little's idea for such a fund seemed odd to officials in Washington a year ago, he said. Now they are giving it a second look, in light of the trillions of dollars in infrastructure work the U.S. may require in coming decades, Little added. "Why not create a vehicle where the federal government could issue infrastructure bonds?"
May 6, 2009
The San Gabriel Valley Tribune quoted Professor Richard Green about stalled condo projects. Developments nationwide have been hit hard by the economy, said Green, director of the USC Lusk Center for Real Estate. "With house prices declining, buyers would rather have a house than condo, and underwriting on condos is more difficult now," he noted.
May 2, 2009
The Age (Australia) quoted Assistant Professor Elizabeth Currid about the fading luster of the Hummer car brand. "In the 2000s, we saw the Hummer as the epitome of glamour and excessive living," Currid said. "Now, if they're not scorned, they're laughed at. I think the Hummer is considered quite gauche among the set that used to drive them."
April 29, 2009
Elizabeth Currid, assistant professor at the USC School of Policy, Planning, and Development, presented her paper, "The Geography of Buzz: Art, Culture and the Social Milieu in Los Angeles and New York," during a recent research seminar at Lewis Hall. The paper was co-authored by Sarah Williams, director of the Spatial Information Design Lab at Columbia University.
April 28, 2009
The New York Times featured a new report by Dowell Myers called "The New Homegrown Majority in California." Myers and colleagues found that for the first time in California's modern history, a majority of young people in the state were born here, the story reported. More than 70 percent of 15-to-24-year-olds living here in 2007 were native born, while almost two-thirds of 45-to-54-year-olds were born elsewhere, as were about 61 percent of those aged 35 to 44 and some 54 percent of those aged 25 to 34. "It's a watershed moment," Myers said. "There has been so much focus on immigrants, on outsiders. Now we have all these insiders. These are people who carry the future, and they're mostly homegrown."
April 23, 2009
The The Riverside Press-Enterprise quoted Professor Glenn Melnick about hospitals' dependence on Medicare reimbursements. On average, about 55 percent of a hospital's revenue comes from federal reimbursements, Melnick said. A hospital that loses Medicare funding is also likely to lose private insurance contracts, the other main source of hospital revenue, the story noted. "That is usually a death knell for a hospital," he said.
April 17, 2009
The Baltimore Sun cited Assistant Professor Elizabeth Currid in a story on government spending on the arts. Writing on USC's "Politics and Society" Web site, Currid urged the Obama administration to spend more money on the arts, the story noted.
April 17, 2009
The St. Petersburg Times highlighted a presentation that Professor Glenn Melnick delivered at the Association of Health Care Journalists conference in Seattle. Total United States health spending in 2007 was $2.24 trillion, Melnick noted.
April 15, 2009
Appearing on a panel at the Financial Times' Asia Infrastructure Summit, Richard Little addressed the question of whether private investment in infrastructure could be Asia's highway to economic growth. Little is a senior fellow at the USC School of Policy, Planning, and Development and director of the Keston Institute for Public Finance and Infrastructure Policy.
April 15, 2009
The Los Angeles Times quoted Professor Richard Green about the merger of homebuilder giants Pulte Homes and Centex. "What this says is that companies are desperate to cut overhead right now," Green said. "I see this as a good, cost-saving move for both companies."
April 9, 2009
Xinhua News Agency (China) featured the latest USC Casden Real Estate Economics Forecast, which was released by the USC Lusk Center for Real Estate. The report found that rent prices fell across much of Southern California. "The dramatic changes in the economy are taking their toll on landlords, who are lowering rents or giving concessions just to keep their units occupied," said Delores Conway of the Lusk Center, who directs the forecast.
April 8, 2009
American Public Media's "Marketplace" interviewed Associate Professor Gary Painter about Pulte Homes buying rival homebuilder Centex. One advantage of the merger is that by cutting costs, it will facilitate building up cash reserves, the story noted. "Because there's not the same sort of credit available that there obviously used to be, it'll put them in a position to acquire inventory of land for the long term," Painter explained. And acquiring land in the right places will make all the difference, he said.
April 7, 2009
The New York Times featured "The Geography of Buzz," a study co-authored by Assistant Professor Elizabeth Currid of the USC School of Policy, Planning, and Development. The study delineates cultural hot spots based on geo-markers of events such as film and television screenings, concerts, fashion shows, gallery and theater openings. Currid and colleague found that "buzziest" areas in New York were around Lincoln Center and Rockefeller Center, and along Broadway from Times Square into SoHo. In Los Angeles, the "buzziest" areas were in Beverly Hills and Hollywood, along the Sunset Strip. The story included a multimedia graphic of the study's findings.
March 24, 2009
As the Obama administration prepares to disperse economic stimulus money for infrastructure, a timely new book sheds light on special districts -- the "shadow governments" that will be responsible for spending a large portion of these funds. In her book, Paying the Toll, Louise Nelson Dyble, associate director for research at the Keston Institute for Public Finance and Infrastructure Policy at the USC School of Policy, Planning, and Development, documented how the bridge district grew from well-intentioned public corporation with bipartisan support to notorious organization rife with corruption.
March 23, 2009
CNBC quoted Professor Richard Green about a resurgence in conservative lending practices. Lenders have returned to the "gold standard" of requiring 20 percent down for loans not insured by the Federal Housing Administration, Green said. "We are seeing some lenders asking for 25 percent down," he added. "It used to be, if you had a [credit] score of 680 or above you were considered very good quality credit, and you'd get the best pricing," Green added. But as lenders have gotten more careful, the bar for that top tier is higher. "Now you'll pay 1 percent more than someone with a 760."
March 18, 2009
With cargo flow down about one-third since last year, port stakeholders packed the 10th METRANS Town Hall meeting on March 11 in Long Beach. More than 1,000 people, including longshore workers, terminal operators, logistics providers and elected officials, attended the event. The topic was how to make the San Pedro Bay ports competitive and protect high-paying local jobs.
March 15, 2009
The Los Angeles Daily News quoted SPPD Senior Fellow William Fulton about slumping auto sales tax revenue as a result of declining car sales. In all likelihood, many dealerships across the nation will go out of business, Fulton said. "I do believe we're going to end up with maybe ... half as many dealerships as we have now," Fulton said. Consumers are doing their car shopping on the Internet and are more willing to buy from no-haggle sellers far outside of their city's borders, if that's where the best deals are, he explained.
March 13, 2009
The Ventura County Star quoted SPPD Senior Fellow Richard Little about the American Recovery and Reinvestment Act of 2009, which authorized $787 billion in federal stimulus spending. While the package was touted as an investment in infrastructure, some officials and analysts are disappointed with the amount that ended up being set aside for such projects, according to the story. The stimulus act is "a great bait-and-switch," Little said. "The whole thing was that this was all about infrastructure, and $50 billion isn't chump change, but it's not what the country needs," Little said. "I find that troubling. I think people were expecting maybe $200 billion or $300 billion for infrastructure." Little is director of the USC Keston Institute for Public Finance and Infrastructure Policy, the story noted.
March 13, 2009
The Wall Street Journal quoted Professor Raphael Bostic about how the redevelopment of downtown Los Angeles is faring in the current economy. While troubles facing downtown may reflect economic headwinds that have battered real estate nationally, some experts believe that downtown has also suffered from too many high-priced developments, the story stated. "The price points that were projected aren't sustainable," Bostic said. "The prices you have to charge now make the returns relatively unattractive."
March 6, 2009
National Public Radio interviewed SPPD Senior fellow Richard Little about President Obama's infrastructure stimulus plan, which designates tens of billions of dollars for so-called "shovel-ready projects." Little, director of the USC Keston Institute for Public Finance and Infrastructure Policy, discussed the impact of those projects on the nation's economic crisis and decaying infrastructure. "Essentially, it's projects that can be gotten underway within 120 days, meaning they are out to bid and ready to proceed," Little said. "The emphasis is on getting people to work and spending money," he added.
March 6, 2009
La Opinion quoted Professor Glenn Melnick about Los Angeles' Pacific Hospital reportedly seeking bankruptcy protection. If the hospital closes, 80 percent of patients who receive care under public assistance programs like MediCal would have to move elsewhere in the San Fernando Valley for services, Melnick said.
February 25, 2009
The Los Angeles Times ran the second and third parts of the "Dust-Up" debate featuring SPPD Professor Richard Green. "A cram-down is a court-ordered reduction of the secured balance due on a home mortgage loan," Green wrote in the first story. "Basically, it reduces lenders' collateral to the current value of the house, which is determined with an appraisal. That said, I worry about the impact of cram-downs on the ability of borrowers to get mortgages going forward." In the second Los Angeles Times story, Green recommended a plan to reduce the principal owed in home loans. "I think policymakers are worried that writing down principal will give borrowers something for nothing. But the same is true for reducing payments via a subsidized interest rate," he wrote. "We could help deal with the fairness problem by having a claw-back provision for borrowers whose loans are modified."
February 24, 2009
The Los Angeles Times ran an op-ed by Professor Richard Green as part of a "Dust-Up" debate series on President Obama's mortgage plan. "I would like to see an additional feature in the Obama plan: a claw-back provision for those who get a direct mortgage subsidy from the government and then later sell at a profit," Green wrote. "If we taxpayers are going to help people remain in their houses, we should get the equivalent of partial-ownership interests in the houses we subsidize."
February 20, 2009
Fox News interviewed Professor Richard Green about homeowners who are frustrated that the government is bailing out people who took risks and not helping those who were responsible. Such frustration is justified, but the economic risk of letting millions of homeowners default on their mortgages leaves the government with little choice, Green said. "A year ago I would have been appalled at this plan," Green said. "Now I think we have to do something like this. The moral hazard argument is valid, but is trumped by the macroeconomic situation." Green is director and chair of the USC Lusk Center for Real Estate.
February 19, 2009
The Oregonian quoted Professor Richard Green about President Barack Obama's mortgage restructuring initiative. "It's a clever plan," Green said. "It might actually help the housing market bottom," he added. Green is director and chair of the USC Lusk Center for Real Estate.
February 16, 2009
Los Angeles Downtown News cited the USC Casden Real Estate Economics Forecast. Downtown L.A. occupancy rates have fallen from 96 percent to 85 percent, according to the forecast.
February 12, 2009
USA Today quoted Professor Dowell Myers on the domestic housing slump. A record one in nine housing units is vacant, the newspaper reported. Myers said the problem goes beyond the construction frenzy that peaked in 2005. "This is a different problem," says Myers, housing demographer at the USC School of Policy, Planning, and Development. "It's high now because of lack of demand. Now, vacancies we see are from units that have been empty for a period of time."
February 11, 2009
Builder Magazine quoted SPPD Distinguished Fellow Stan Ross about the U.S. Treasury's recently announced recovery plan. The plan isn't necessarily an improvement over what was already in place, Ross said. The government will eventually end up guaranteeing at least some of the losses incurred by buyers and sellers of banks' toxic assets. However, the new plan has critical components that address bank capitalization and consumer lending. "This frees up capital, the banks will survive, they get new capital, they make loans to companies, and the companies invest in capital improvements," leading to more jobs created, he explained. Ross is chairman of the Board at the USC Lusk Center for Real Estate.
February 2, 2009
Los Angeles Downtown News quoted Associate Professor Gary Painter about a reported ownership change in a real estate development project. "My guess is they tried to rework their loan, but they just weren't able to get an agreement on that," Painter said. "This is happening in a lot of places right now, and not just in Los Angeles," he added. Painter is director of research at the USC Lusk Center for Real Estate.
January 27, 2009
The Wall Street Journal quoted Professor Richard Green about disincentives for first-time homeowners. Rising unemployment and announcements of huge job cuts have sapped consumer confidence nationwide, discouraging some potential buyers from making a move, the story stated. "People rightly feel less secure in their future income," Green said. The housing market won't recover until the unemployment rate stops rising, he added.
January 26, 2009
Reuters quoted Professor Dowell Myers about the state of California's economy. By some accounts, the current crisis could bode well for the state's future, as problems may spur needed reorientation of the economy. "What people may think is that you can't really solve the problems in California until you totally wreck the train," Myers said. "You have to shake them up, wake them up. The outlook is very hopeful right now because this crisis is forcing a long-overdue reassessment." The story also quoted a USC graduate student on her view of the state.
January 26, 2009
The USC School of Policy, Planning, and Development marked its 80th anniversary by hosting a special colloquium Jan. 16 at the Davidson Conference Center. During the conference, Dean Jack H. Knott noted that SPPD remains dedicated to advancing academic theory and making a vital impact in the world.
January 25, 2009
The Monterey County Herald quoted Professor Glenn Melnick about the fiscal state of a medical center in Salinas, Calif. It's unclear whether the hospital can continue its newfound financial viability or is doomed to slip back into critical condition, the story stated. "The question is, 'Are they going to find themselves in the same situation five years from now,'" Melnick said. Melnick is director of the Center for Health Policy and Management at USC, the story noted.
January 23, 2009
The Modesto Bee quoted Professor Richard Green about the state of the housing market. The market is being hammered by tight credit, expectations of further price declines, and job losses, he said. "If you see the unemployment rate turn around, that's when you'll start to see housing prices bottom and start turning in the other direction." Green is director and chair of the USC Lusk Center for Real Estate.
January 20, 2009
Portfolio quoted Professor Richard Green about the silver linings of the credit crunch and housing slowdown. Until frozen markets thaw, banks won't able to fund as many projects, but that might be a good thing, the story stated. "A slowdown is creating more time to plan and tempered expectations," Green said. "Projects that do get funding will be sound, which will ultimately be good for an ailing industry."
January 20, 2009
The Orange County Register featured the latest forecast by the USC Lusk Center For Real Estate. The forecast stated that the commercial market won't grow for two years, according to the story. "[A] lack of liquidity remains the major obstacle to a recovery in the commercial real estate markets at least until the end of this year," said Stan Ross, chairman of the Lusk Center. Now would be a good time for developers in a strong financial position to buy up such building materials as wood, steel and concrete to take advantage of falling prices, said Richard Green, the Lusk Center's director.
January 18, 2009
The San Diego Union-Tribune quoted SPPD Distinguished Fellow Stan Ross about hotel real estate. "With hospitality you have lower occupancy and competition," Ross said. "Look at what you can get a room for in Vegas." Ross is chairman of the board at the USC Lusk Center for Real Estate.
January 14, 2009
The Los Angeles Times quoted Richard Little about plans for federal infrastructure spending. After the initial round of funding, more thought and evaluation should come into play in determining worthy projects, Little said. "But first thing, you need to get the money flowing, get your contractors working," he noted. "You need to prime the pump." Little is director of the Keston Institute for Public Finance and Infrastructure Policy at USC, the story noted.
January 12, 2009
Los Angeles Downtown News quoted Associate Professor Gary Painter about a Los Angeles developer who has decided, due to the weak economy, to auction off the units in a condo building. "In normal market circumstances you typically don't see auctions," he said. "But with what's happened in the last year and a half, it's anything but normal." Painter is director of research at the USC Lusk Center for Real Estate.
January 10, 2009
The Ventura County Star quoted Richard Little about how President-elect Obama's proposed stimulus funds may be channeled into "shovel-ready" infrastructure projects. "The goal of the stimulus is just to get people working, get projects going and buying materials, which will trickle down through the economy," he said. "Whether infrastructure is always the best bang for the buck, there's some debate, but there are going to be some short-term benefits." Little is director of the USC Keston Institute for Public Finance and Infrastructure Policy.
January 6, 2009
Reuters quoted Richard Little about how President-elect Obama's proposed stimulus funds may be channeled into "shovel-ready" infrastructure projects. "We must save the patient first, then think about long-term strategy," Little said. "If the objective is to create jobs, we should focus on projects that are ready to go." Little is director of the USC Keston Institute for Public Finance and Infrastructure Policy, the story noted.
December 24, 2008
U.S. News & World Report quoted Professor Richard Green featuring advice for prospective homebuyers. "If you're not planning on living in that house for more than three to five years, I wouldn't buy anything right now," Green said. "Nobody knows what is going to happen to prices over the next few years." Green is director and chair of the USC Lusk Center for Real Estate.
December 22, 2008
The California Real Estate Journal quoted SPPD Distinguished Fellow Stan Ross about the housing market in California over the last 20 years. Regional malls got larger and office buildings got taller, Ross said. And a whole lot of space got built, but this peaked in about 1988 and 1989, he added. "Then we moved into soft years and we had excess supply coming out, so we had a substantial amount of excess space," he explained. Ross is chairman of the board at the USC Lusk Center for Real Estate.
December 16, 2008
The New York Times published a statement on infrastructure stimulus spending, signed by SPPD's Richard Little and Mark Pisano and 24 other infrastructure experts. "A new approach is needed that establishes a new level of accountability, transparency, and economic and environmental performance for how this country invests in infrastructure projects," the experts wrote. "We should only invest in projects that achieve job creation in the short run while creating the foundation for long-term economic success and energy independence." Little is director of the USC Keston Institute for Public Finance and Infrastructure Policy, and Pisano is a senior fellow at SPPD.
December 11, 2008
The Los Angeles Business Journal featured the latest forecast from the USC Lusk Center for Real Estate. Office and industrial properties across the Southland will continue to feel the effects of business closures and slower global trade well into 2009, the report found.
December 8, 2008
The California Real Estate Journal quoted Associate Professor Gary Painter about a new report warning of a $2.5 trillion risk to real estate posed by global warming. Rising losses from damage and destruction of buildings and land presumably will lead to higher insurance premiums, the story stated. "What's clearly going to happen is, as various places in California experience greater risk over time, you'd expect that to be reflected in higher prices," Painter said.
December 2, 2008
The Associated Press quoted Richard Little, director of the USC Keston Institute for Public Finance and Infrastructure Policy, about the role of public works spending in economic stimulus plans. California Gov. Arnold Schwarzenegger's plan, which involves increased infrastructure spending, won't solve the state's underlying imbalance between annual spending and revenue, critics have said. "It's not about capital expenditures," Little said. "It'll have some benefits, but it's not the solution. We need to align revenue and expenditures ... That's the fundamental thing the governor and Legislature need to wrestle with."
November 26, 2008
The Orange County Register featured Professor Raphael Bostic in a Q&A about the Fed's latest efforts to bolster the credit markets. "We are really in unprecedented times," Bostic said. "It's hard to know how much of a backstop you need." The Fed's move has restored some confidence, but it's unclear if it has gone far enough, he added.
November 18, 2008
Public Radio International's "The Takeaway" interviewed Professor Richard Green about whether the housing market is bottoming out. "I was feeling better about getting close to a bottom before September 15, because we saw prices fall so much in so many parts of the country that owning was starting to seem like a reasonably good deal relative to renting," Green said. "But with the lack of confidence due to the financial crisis, I don't think we're close to a bottom, though I did think so six weeks ago." On September 15, credit markets fell as the failure of Lehman Brothers spread throughout the market, making it more difficult for people to get mortgages, he noted. "But the other thing is that as this crisis of confidence has worsened, people are not willing to make the long-term commitment to buying a house."
November 12, 2008
Time quoted Professor Richard Green about the new plan by Fannie Mae and Freddie Mac to reduce mortgage payments for some homeowners who can't currently meet their monthly payments. The new program doesn't forgive principal, only defers it, which may not go very far at a time when some 18 percent of mortgage holders owe more to the bank than their house is worth, the story stated. "If all they're doing is lengthening the loan maturity, it may reduce the economic stress a little bit, but it doesn't deal with the main problem, which is you have an underwater loan," Green said.
November 8, 2008
The Los Angeles Times quoted Professor Richard Green about the fall in pending home sales in Southern California. "It's harder to get financing now than it was a year ago," said Green, director of the USC Lusk Center for Real Estate. "You need a 20% down payment. A year ago, it was less than 5%." Potential homebuyers are also less willing to buy now because of high unemployment rates, Green added. "With people losing their jobs and seeing their neighbors losing their jobs, they're not going to want to make the commitment of buying a house," he explained.
November 13, 2008
The Los Angeles Times quoted SPPD Associate Professor Gary Painter about financial problems facing CalPERS, California's largest public pension fund, which is losing value due to its housing investment portfolio. "It's certainly frightening for those who look forward to getting their pensions from the California system," said Painter, director of research at the USC Lusk Center for Real Estate.
November 4, 2008
BusinessWeek quoted Professor Raphael Bostic about what would happen if the federal government renegotiated troubled mortgages. Such a move would help put a floor under housing prices, Bostic said. "Everyone is trying to figure out where the bottom is," he explained. "People are not going think there's a bottom if they know there's a flood of distressed assets still coming up for sale." Bostic is director of the master of real estate development program at SPPD.
October, 31, 2008
Bloomberg News quoted Assistant Professor Elizabeth Currid about public support of the arts. "In a time of economic turmoil, the arts is the last thing on anyone's mind, and yet it's the most important time to support the arts," Currid said. The extent to which the arts contribute to the economy is well documented, the story stated. "In Los Angeles and New York, the arts account for 5 percent of the workforce, about the same as the financial sector," Currid noted. "The artists make cities more attractive to live in and they are incredibly important for tourism. Nobody comes to New York to look at the law firms."
October 31, 2008
The Los Angeles Times cited a USC Lusk Center for Real Estate study in an op-ed. According to the study, conducted in collaboration with UCLA, the slide in home values is likely to significantly constrict spending by consumers, making it harder for the economy to rebound. "We have shown that consumers react more radically to changes in their housing wealth than to changes in the size of their bank accounts," the study's authors wrote. The Orange County Register also covered the research.
October 29, 2008
During an Oct. 21 panel hosted by the USC School of Policy, Planning, and Development, Los Angeles City Councilwoman Jan Perry said that the goal of downtown's revitalization effort is to restore "the excitement of an earlier time." The changing downtown landscape was the focus of the panel discussion, which took place inside City Hall. The event was part of the SPPD Dean's Speaker Series.
October 29, 2008
Bloomberg News featured a new study by SPPD Professors Gary Painter and Raphael Bostic, along with Stuart Gabriel of the UCLA Ziman Center for Real Estate. The economists found that lunging home prices will cut economic growth in the U.S. more than the drop in stock prices this year. A 10 percent decline in housing wealth results in a $105 billion - or 1.2 percent - reduction in personal spending, according to the three-year study. Consumer spending accounts for about 70 percent of GDP, so that drop would result in a reduction in real GDP growth of 1 percentage point, the study found. "The reason, I believe, the effects are smaller for financial wealth than for housing wealth is that people tend to view those changes in housing wealth as more permanent," Painter said. "Consumption will be impacted by the decline in housing wealth for a while," he added. The study is scheduled to be published next year in the journal, Regional Science and Urban Economics.
October 22, 2008
The Press-Enterprise cited a report by the Center for Economic Development at the USC School of Policy, Planning, and Development. The center developed the strategy for the Green Valley Initiative, a private-public group launched in June 2007 to foster the growth of green jobs in the Inland Empire, the story noted. The U.S. Department of Commerce recently approved the plan, which includes 18 programs to make the region a green business hub and combat job loss and low wages.
October 20, 2008
The Los Angeles Business Journal quoted Professor Richard Green about the current market turmoil. "So much of this is being by driven by investor psychology," Green said. "Because so much of this is being driven by fear, as well as real stuff going on, as long as people are scared and no lending is happening this is going to ripple through every sector of the economy." Green is director of the USC Lusk Center for Real Estate.
October 21, 2008
SPPD Professor Dowell Myers was quoted in a Wall Street Journal news story about the role that retiring baby boomers are playing in the housing market downturn. "The generational crash is when there are too many older homeowners and not enough buyers," Myers said.
October 19, 2008
The San Diego Union-Tribune quoted SPPD Professor Raphael Bostic about the financial markets. "The big issue is how to restore confidence," Bostic said. "Right now, there's still a bit of frenzy and chaos in the marketplace." Bostic is director of the master of real estate development program at the USC School of Policy, Planning, and Development.
October 17, 2008
The Los Angeles Times quoted Professor Richard Green about an increase in Southland office space vacancies. Landlords will keep their asking rents up as long as they can, while offering other incentives such as reduced parking prices and generous allowances to help tenants build out their office interiors, Green said. It's only when those types of inducements are no longer sufficient that property owners tend to lower rents, he added.
October 17, 2008
The Star-Ledger reported that SPPD Assistant Professor Elizabeth Currid will speak at a symposium held at Rutgers, The State University of New Jersey. The conference will investigate how the cultural economy works, the roles of state and local government in promoting it, and how cultural advocates measure success, the article noted.
October 16, 2008
The Los Angeles Times quoted Professor Raphael Bostic about price trends in the housing market. Additional notices of default and foreclosure are expected in 2009, when a new wave of adjustable mortgages will reset, the story noted. That will continue to push down the median prices of homes statewide, possibly into 2010, Bostic said. "Prices could inch up month over month next year, but a lot of moving parts have to align in the economy for that to happen," he explained.
October 14, 2008
The Los Angeles Times quoted SPPD Associate Professor Gary Painter about Barack Obama's plan to create a federal agency charged with helping states that are caught in the credit crunch. "It's really a small cost for the Treasury, but it could have really important benefits to keep the local governments running," Painter said.
October 14, 2008
A panel of preeminent financial experts, including USC faculty, weighed in with their insights on how Wall Street plunged into a tailspin -- and also how to remedy the ailing markets. "Multi-party greed" drove the downturn, says Raphael Bostic, professor at the USC School of Policy, Planning and Development.
October 10, 2008
Associate Professor Gary Painter was quoted by the Sacramento Bee about recent precipitous drops in the stock market. "Apparently, the only people transacting are the early baby boomers," Painter said. "They're terrified and worried they're going to lose their retirements. It could be as simple as that. You have a lot of panicky people nearing retirement liquidating their retirement accounts. And others who are still liquid are waiting to see what prices do."
October 8, 2008
Professor Richard Green was quoted in the Press-Enterprise about how the Fed's most recent interest rate cut will affect mortgage lending. It's unlikely that the cut will stimulate the economy, because banks will not respond by increasing their lending in the current climate, Green said. "They are more afraid of losing money than of not making money," he explained. Green is director of the USC Lusk Center for Real Estate.
October 3, 2008
Richard Little was quoted in the Orange County Register about how the credit crunch is affecting California's budget. The slowing economy has Wall Street shunning state and municipal bonds, which is forcing governments nationwide to cancel debt sales, the story noted. "Nobody really wants to loan a whole lot of money," Little said. "It's not a good time for anybody, really." Little is the director of the USC Keston Institute for Public Finance and Infrastructure Policy, the story noted.
October 2, 2008
Professor Raphael Bostic was quoted in a Ventura County Star article about how the financial crisis impacts the average person. The credit crunch is affecting people's ability to get loans for homes, the story noted. "You have to be more than prime these days -- you have to be pristine," Bostic said.
October 1, 2008
Mortgage Banking magazine featured an article written by SPPD Professor Richard Green on how the American mortgage finance system has progressed from the days of the Great Depression to where it is today. Green is chair of the USC Lusk Center for Real Estate.
September 24, 2008
An Orange County Register article featured a talk by Professor Richard Green, director of the USC Lusk Center for Real Estate, held at a real estate law firm. Prospects for housing market recovery have improved recently, Green said. Factors that bode well for the market include a declining inventory of homes for sale, conditions that favor buying over renting, and the government takeover of Fannie Mae and Freddie Mac, the article stated. Green also spoke about studies comparing the advantages and disadvantages of home ownership in general. While homeownership inhibits mobility, which can affect the labor market, studies show that children of homeowners tend to do better than those of renters, he said.
This past summer, more than 40 master's students representing all programs of study with the USC School of Policy, Planning, and Development took part in the school's international lab program, doing research in Foshan, China, and Rio de Janeiro, Brazil.
September 14, 2008
SPPD Professor Yongheng Deng was quoted in the San Francisco Chronicle about China's mortgage market. "[T]he mortgage market in China does resemble the U.S.," Deng said. "In the last two to three years, the mortgage market has grown in China," he added. Before that, people would just show up with cash, he explained. "In 1998, the first mortgages were written. Three years ago, the mortgage terms became standard. And now a range of mortgage types is available." Deng is a specialist in China's real estate and mortgage markets, the story noted.
September 8, 2008
Professor Raphael Bostic was interviewed by KFI-AM about the Fannie Mae and Freddie Mac takeover. The federal government stepping in will mean more stability in the market and probably a drop in interest rates for some home loans, according to the story. "For California, it will be a good thing," said Bostic, director of the Master of Real Estate Development program at SPPD. "[W]ith the recent increase in the loan limit for Fannie and Freddie, a lot of homeowners will have access to those cheaper mortgages."
September 6, 2008
Professor Richard Green was quoted in the Los Angeles Times about record-setting home foreclosure rates in the United States. To make things worse, the U.S. jobless rate jumped in August to a nearly five-year high, the story stated. "It's really the very last thing the housing market needs right now - unemployment going up and we're heading into a recession," Green said. Job losses in construction and lending in the hard-hit Inland Empire are spreading to manufacturing, he noted. "And that causes a spillover effect," Green said. "If manufacturers are laying off people this month, retailers are likely to be laying off people next month." Green is director of the USC Lusk Center for Real Estate, the story noted.
August 26, 2008
Associate Professor Gary Painter was quoted in the Ventura County Star about the housing market in Southern California. While a significant percentage of the homes sold are foreclosures, last month's uptick in sales is "encouraging nonetheless," Painter said. However, prices probably won't be heading up until 2010, he predicted. "It's still a transition time," Painter explained.
August 19, 2008
Professor Peter Gordon was quoted in a Sacramento Bee story about the need for cities to trim their budgets. "I'm not sympathetic," Gordon said. He added that cities often spend money to satisfy interest groups, or simply because it's there. "I think the California story is that governments grow in good times," Gordon said.
July 29, 2008
In a Los Angeles Times story, Prof. Gary Painter was quoted about the penalty for delays with Los Angeles' Grand Avenue project. The board overseeing the project approved a measure stipulating that if the project is delayed beyond February, the developer will be fined $250,000 a month. Financial penalties like this can sometimes help get projects moving, Painter said. He added that $250,000 per month seemed not a large sum of money relative to the scale of the project.
July 16, 2008
Gary Painter was quoted in a recent La Opinion story about the impact of bank mergers on consumers. In the short term, mergers can have a positive effect on the industry, in that they can prevent institutions from going bankrupt, but in the long term, it's better for consumers to have more options, Painter said. An abundance of "giants" poses dangers for the industry, he added.
July 14, 2008
Prof. Dowell Myers of was quoted in the San Diego Union Tribune about how different communities will be affected by high gas prices. Developments in more far-flung communities will experience the biggest hit first, Myers said. "Geriatric villages" replete with health clubs and art galleries will flourish in closer-in neighborhoods, as aging baby boomers demand more amenities to entice them to leave the suburbs, he said. "Firms will locate where they can recruit workers better," he added. "That's why they've already moved to the suburbs, and they may still stay out there."
June 29, 2008
Dowell Myers was quoted the USA Today about baby boomers and Latino immigrants. For a nation bracing to support 79 million baby boomers in their old age, the growing and younger population of Latinos should be viewed as economic salvation, Myers said. "Children are always a fiscal burden, yet children are also the lifeblood of every community," he explained. "What's killing Japan and threatening the economic future of Europe is that they don't have enough kids, and that's what's depriving these rural areas in America," he added. Myers is the author of Immigrants and Boomers: Forging a New Social Contract for the Future of America, the story noted.
June 22, 2008
Research by SPPD Prof. Glenn Melnick of the was cited in the Waco Tribune-Herald regarding the effect of health care company mergers on health care costs. Following recent mergers in California, prices have generally risen 10 percent to 30 percent, sometimes within months, Melnick said. Melnick is a health economist for the RAND Corporation, the story noted.
June 21, 2008
Raphael Bostic of the USC Lusk Center for Real Estate was cited in a New York Times story about the rental market. In Los Angeles, the housing market slump has begun to push up vacancies as condominiums are converted into rentals, he said. Bostic is associate director of the Lusk Center, the article noted.
May 24, 2008
Juliet Musso of was quoted by the Los Angeles Times about the city of Vallejo's filing for bankruptcy. It appears that Vallejo negotiated contracts with employees that were too burdensome when the economy slowed down, Musso said. "It's a continuation of the story of bust-and-boom cycles in California," she explained.
May 20, 2008
Prof. Gary Painter was quoted in the Ventura County Star about whether recent statistics indicate a recovery in the housing market. "It's premature to say whether the market is at a turning point," Painter said. "It's very easy, when you're in a market like this one, to have little blips here and there," he explained. Painter is director of research at the USC Lusk Center for Real Estate, the story noted.
May 12, 2008
Prof. Raphael Bostic was quoted in the Los Angeles Downtown News about the impact of the housing market slump on planned downtown L.A. developments. "The softening market means that all developers are having to re-evaluate their plans," Bostic said. "Many of these projects were originally conceived with very aggressive rents both for the residential and the commercial," he explained. "Part of the difficulty in doing real estate development is that you have to be a forecaster, and for many projects the forecasts just aren't matching up with what's actually happening," he said.
May 8, 2008
Prof. Raphael Bostic was interviewed on CNBC about rising oil prices and the housing market. Expensive fuel will negatively impact the housing market since it is linked, especially psychologically, to consumer spending and people's feelings about the economy, Bostic said. "We know that consumer spending is an important part of the economy, and it provides a benchmark for what people will decide to do in terms of major purchases," he explained. In the long term, increasing fuel costs might affect development patterns, he added. "I think [high prices is] why we're seeing a lot more interest on the part of developers to create urban central core type developments."
April 21, 2008
Prof. Dowell Myers was quoted in a Los Angeles Times story about immigration policy. This week, a USC conference will bring together former federal housing secretary Henry Cisneros and other community leaders to explore ways to help immigrants better integrate into career-oriented jobs and civic life, the story reported. "It's in the self-interest of the older generation to have immigrants here," Myers said. "Even if you don't like it, you have to ask the question: Who's going to fill your jobs, buy your homes and pay the taxes for old-age support programs?" he asked. Myers is the author of the book Immigrants and Boomers: Forging a New Social Contract for the Future of America, the story noted.
April 1, 2008
Richard Little was quoted in the San Diego Union-Tribune about San Diego considering the sale of private bonds. The funding approach is likely to rattle anyone who has been watching the credit crunch closely, Little said. "We're kind of in the midst of a shaky situation, so any kind of activity like this is going to be open to question," he explained. Little is director of the USC Keston Institute for Public Finance and Infrastructure Policy, the story noted.
March 24, 2008
Prof. Raphael Bostic was interviewed on NBC Nightly News about the condominium market. Wider problems in the housing market have forced many new developments to halt construction or go on the auction block, the story reported. "The difficult part is that real estate is cyclical," said Bostic, associate director of the USC Lusk Center for Real Estate. "For most of these cities, unfortunately, their condo product came online at a time when the housing market really was weak, and condos have been really ground zero for that weakness," he explained.
March 13, 2008
Prof. Gary Painter was recently quoted in BusinessWeek about the mortgage industry. There's a need for better regulatory oversight of the information flows about mortgages, both to those investing in mortgage-backed securities and to home buyers getting the loans, Painter said. Mortgage lenders on the whole would benefit because investors would know what they are buying, which would make for a healthier industry in the long run, he added. Painter is the director of research at the USC Lusk Center for Real Estate, the story noted.
March 9, 2008
A recent San Francisco Chronicle story featured research, led by Prof. Dowell Myers, regarding the potential impact of baby boomers on the housing market. Myers and USC doctoral student Sung Ryu co-authored a study warning of a "generational housing bubble" that could burst as baby boomers - who have held up housing prices since 1970 - begin to retire. "The Baby Boom generation was born over a period of 18 years, and once its sell-off commences, it could dominate the housing market for up to two decades," the researchers wrote.
Raphael Bostic, a professor at the USC School of Policy, Planning, and Development, and Elizabeth Garrett, USC's vice president for academic planning and budget and a professor at the USC Gould School of Law, have been asked to join President Obama's administration in Washington, D.C.
February 20, 2009