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Real Estate Big Data

Indeed’s list of the cities that stretch your paycheck the furthest

(BIG DATA) Indeed recently released a list of cities that show where you get the biggest bang for your buck.





If you’ve ever had the misfortune of sitting down to assess your personal budget, you know the pain of debating if living costs in your area are worth it compared to your income. Generally, the cities with the highest income are also paired with higher living costs.

San Jose, San Francisco, Washington, DC, Fairfield County, CT, and New York are America’s five metros with the highest salaries, and also some of the most expensive places to live. Is it worth getting paid more if you also end up paying more? Can’t there be some mystical region with low cost of living where you can also rake in a sizable paycheck?


Luckily for those of us too lazy to use Google or math, the nice folks at Indeed drew up a list of Cities Where a Paycheck Goes the Furthest in 2017. Using salary data from August 2016 to July 2017, they calculated an average of all jobs with annual salary information for each of the 104 US metropolitan areas with at least 500,000 residents.

After adjusting for each metro’s cost of living and considering unadjusted average salaries based on fixed-effects regression model, Indeed ended up with some helpful comparisons.


Check out if your city made the list.



After adjusting for cost of living, coastal metro areas with high salaries aren’t such a great deal. None of the big coastal metros ranked in the Top 20 list of affordability, but tinier metros in the South and Midwest made it. In fact the only California metros on the list are from the Pacific region, where housing is significantly less expensive than the coast.

Indeed notes, “adjusted salaries are higher outside the largest metros. Even though you’ll see more money on your paystubs in bigger metros than in smaller metros, those big-city salaries are outweighed by an even higher cost of living.” The highest adjusted salaries where your paycheck spreads the furthest are in Birmingham, AL, Jackson, MS, and Fresno, CA.

Honolulu, Hawaii topped the list for where salaries stretch the least.

Although housing costs are lower in Honolulu than San Francisco and San Jose, physical goods must be shipped to Hawaii, and their adjusted salaries are among the lowest in the country.


So why doesn’t everyone just move to where the cities on the top 20 list? Because moving is money, and uprooting your life and job can be a huge ordeal if you have family and friends in your area. Job security is another factor to consider. Although one area may have a higher adjusted income, it could be riskier to make the move if the job market is less stable.

Indeed also points out that some places are desirable locations even if they’re not so easy on your wallet (aloha, Hawaii.) Plus, in areas high in routine jobs, the threat of automation/robot takeover is very real. Check out Indeed’s blog post for more info on their methodology and fun charts.


Lindsay is an editor for The Real Daily with a Communication Studies degree and English minor from Southwestern University. Lindsay is interested in social interactions across and through various media, particularly television, and will gladly hyper-analyze cartoons and comics with anyone, cats included.


Why it’s about to get more expensive to get a mortgage

(FINANCE) Borrowing money is getting more expensive, especially for those looking to get a mortgage. But why?



bonds and mortgages

Although there have been some blips, bonds have grown substantially in value since the 1980s. They’ve performed extremely well for a number of reasons, not least of which is the big slowdown in inflation over that time period.

The result, for investors, has been that anything “bond-lik,e” i.e. capable of paying a regular income – like a high-dividend stock or even a property like your home – has shot up in value. A reversal of bond prices would mean less support for such investments.

That’s what the economy is currently experiencing. According to Financial Times, American worker wage growth is hastening the sell-off of bonds by the US government, which is decreasing the overall price of bonds. As bond prices go down, the interest rates that they offer new investors go up. That rate jumped to 2.85 percent last Friday, the highest level since 2014.

Since the rates at which banks lend their money are largely based on the interest rates offered by bonds, regular folks looking to take out a mortgage or a loan are facing higher costs.

How does this work?

If we’re talkin’ bond prices, we’re talkin’ yield. When the price of a bond goes up, the yield of that bond goes down! Let’s say you’re getting paid $5 each year. If you pay $50 for that right, then you’re making a 10% “yield” (5/50 = 10%). But if you pay $100 for that right, then you’re making a 5% “yield” (5/100 = 5%).

It’s the same thing with the price of a bond because the amount a bond investor gets paid (usually) is fixed. And so, when the bond goes up in value, the “yield” goes down – and vice versa.

For realtors, its important to help clients shop for the best rates to improve their confidence in this market. Leveraging the right online and local financing resources can help potential buyers get the best deal. Explaining broader market context is also critical. Historically, a three percent interest rate is still very low.

According to Investopedia, mortgage rates averaged 7.81% in 1996 and 10.19% in 1986. Instilling confidence with information will put buyers and sellers in the right place to make moves.

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Real Estate Big Data

Murdoch wants FB to pay for content – should RE search sites pay for listing data?

(DATA NEWS) Rupert Murdoch argues that Facebook should pay to feature trusted news. Sounds like a familiar argument that real estate practitioners have made for over a decade.



rupert murdoch

There’s an old argument in the real estate industry that you’ve probably heard – listing data is aggregated by real estate search sites like Zillow, which makes big bucks on that free firehose of data, but doesn’t send a cut of said profits back to the content providers (and should).

This conversation is being revisited after Facebook’s announcement that they’re going to restructure how data flows. Just as publishers are asking why Facebook doesn’t pay for content, the real estate industry is again asking – why is the data real estate professionals produce aggregated for someone else’s financial benefit?

Media mogul and Executive Chairman of News Corp, Rupert Murdoch, issued a press release outlining his urgent belief that Facebook and other media giants should pay publishers for their content, rather than benefiting from the content, keeping the profit to themselves, and padding their stock prices. This comes at a rather interesting time, given many media giants are changing they way the game is played: YouTube is causing a bit of a stir with their top contributors, Facebook has vowed to get back to their roots, and it won’t be long before other social media and marketing sites follow suit.

Amidst these changes, though, where are the benefits for the content creators?

There are influencers on YouTube that promote new products; Facebook and Twitter users who supply endless amounts of content from which other companies/brands benefit, and to apply this to real estate, Zillow, Trulia, and others who aggregate brokers’ content into their platforms and benefit tremendously. It’s shrewd business.

This is especially frustrating when you consider, as Murdoch points out, “publishers are obviously enhancing the value and integrity [of the platform] through their news and content but are not being adequately rewarded for those services.” Realtors® create data for aggregators by listing properties in the MLS, then, they are charged to be showcased on the very platforms already utilizing and profiting from the information that has been provided for free.

While Realtors® may have been paid for their listing by their client, they have not been provided a percentage of any search site’s profits, which is the primary argument Murdoch makes to Facebook.

Murdoch proposes a fee structure to remedy this issue, much in the same way cable is structured, whereby publishers would be compensated for their contributions, but it isn’t clear how this would work long-term, although it is food for thought about who really owns data.

According to Murdoch, “The time has come to consider a different route. If Facebook [or any other media giant] wants to recognize ‘trusted’ publishers, then it should pay those publishers a carriage fee similar to the model adopted by cable companies. The publishers are obviously enhancing the value and integrity of Facebook through their news and content but are not being adequately rewarded for those services. Carriage payments would have a minor impact on Facebook’s profits but a major impact on the prospects for publishers and journalists.”

In other words, real estate search sites should be paying broker for using the data they provide, instead of charging for extra bells and whistles in the name of marketing. Even if the real estate search site is one of Murdoch’s own…

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Real Estate Big Data

Housing optimism cools – what will it take to heat back up?

(REAL ESTATE NEWS) Despite economic gains and a hot housing market, optimism is cooling. Why is this happening and what’s the cure?



fair home prices existing home sales housing

Housing is a complex creature – the market can be on fire, but optimism can wane nonetheless. The National Association of Realtors (NAR) is reporting that despite solid job creation, the strength of the economy, and increased economic growth, many households are less keen on believing now is a good time for buying or selling, and are overall less confident about the economy.

This comes as a result of the fourth quarter HOME (Housing Opportunities and Market Experience) survey, which samples US households by a random digit-dial and was conducted by TehcnoMetrica Market Intelligence that gathered 2,705 households. The HOME survey collects data on a monthly basis and is focused on identifying real estate trends.

Despite an improving economy, more hiring, and low mortgage rates, optimism in home sales was not as expected, according to Lawrence Yun, Chief Economist for the NAR.

In general, most prospective home buyers had to deal with a lack of inventory – less construction, fewer sellers, and a lack of affordability.

Reduced economic confidence in the face of the economy’s improvements persisted, with more households feeling less secure about their financial situation, and less people believing the economy is improving. Simply put – they aren’t feeling it.

Renters are less engaged to buy, as demonstrated by a two percent decrease in renters believing now is a good time to go get that home.

Overall – the people most excited to purchase homes are current homeowners, households with income above $100,000, and those living in the Midwest and South. If you live in the West, it is likely that you believe yourself to be in a good market for selling a home.

Overall, people more firmly believe it is a good time to sell their home over last year, which can spell some good news for potential buyers in 2018, as more people may be comfortable putting their homes on the market.

The key is that housing supply must increase. New builds and more sellers placing homes on the market will improve confidence about the housing supply and can work in tandem with a better job market and improved economy to make households feel more optimistic about their #future.

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