The Growing Trend of Long Term Renting

Still running global payroll like a relay race? Deal replaces fragmented payroll vendors with one global system, no third parties Hire manage and pay teams in one hundred and fifty plus countries with in house local experts and white glove delivery. And deal plugs into what you already use, Workday, SAP, Netuite. operate like a local everywhere. Visit dEel dot com slash wsj. That's dEel dot com slashWsj The Supreme Court hands down a flurry of decisions, including two that empower President Trump's immigration agenda Plus, we've got the latest on the earthquake in Venezuela, which could be one of the deadliest in the country's history. We're still waiting on a clearer assessment from authorities. We're expecting the death toll and the injury toll and lots more damage reported in the upcoming hours and days. And as it becomes more expensive to own a home, some people are choosing Keep on renting instead. It's Thursday, june twenty fifth. I'm Alex Osaf for the Wall Street Journal. This is the PM edition of What's News, The top headlines and business stories that move the world today The Supreme Court handed down a few consequential decisions today The court allowed President Trump to take away legal protections from hundreds of thousands of immigrants in the U S. for humanitarian reasons Those immigrants had what's called temporary prrotected status, or TPS under a program Congress created in nineteen ninety for migrants whose home countries are hit by armed conflicts, natural disasters, or epidemics. In a six three decision, the court said it didn't have much power to review the executive branch's decisions on the program Journal Supremeourt reporter James Roser says the decision has an immediate impact on immigrants from Haiti and Syria When Trump returned to office last year, there were seventeen countries that had protections under TPS. Trump moved to revoke the TPS protections from thirteen of those seventeen countries. The Haiti and Syria cases are the two that arrived on appeal at the Supreme Court, and those are the decisions that came today What it means immediately is that Trump can end TPS status for about three hundred fifty thousand immigrants from Haiti and about six thousand immigrants from Syria. It also will likely pave the way for him to revoke TPS protections for a number of other countries that have had it. A second immigration decision allows the administration to turn asylum seekers away at the US Mexico border the court said in that case is that the administration is allowed to essentially bar people from stepping foot onto US. soil where they would have the right to claim asylum So the two decisions taken in tandem, The TPS case and the asylum case have the effect of broadening Trump's authority to enact his second term immigration crackdown Next up, the Supreme Court ruled that Bayer couldn't be held liable for failing to warn consumers about the cancer risks of its popular weed killer roundup. Patrick Thomas who covers agriculture for the journal says the decision is a big deal for Beer, which produces about half the world's glyphosate, the active ingredient in roundup So this is a massive victory. Roundup generates billions of dollars for Bear They've been involved in this litigation for almost a decade since Bear bought Monsanto. but since then, they've had hundreds of thousands of lawsuits basically claiming that this weed killer causes cancer The EPA has repeatedly determined that lyphosate does not cause cancer in humans and doesn't need a label at the federal level that includes a cancer warning. And what today's ruling affirms is that because at the federal level You don't need that cancer warning. Individual states cannot ask for some kind of additional warning. This takes away a lot of the leverage from plaintiff's lawyers who have been going after the company for a number of years and gives them more incentive to try and settle with the company. A Bayer spokesperson said the decision was, quote, good for science, farmers and industries that depend on regulatory clarity for innovation Bayer shares closed up about nineteen percent And finally, the court also struck down a Hawaii law stopping guns from being carried into public facing, privately owned locations, like gas stations and supermarkets without the property owner's permission. It's the latest decision to expand the Second Amendment right to bear arms The Supreme Court justices are scrambling to finish their work before taking their summer recess, which typically begins in early July. Separately, a federal judge today blocked key portions of President Trump's executive order that would create lists of eligible voters The judge in Massachusetts declared steps outlined in the executive order to be, quote, legally void, and she ordered agencies to stop implementing the directives immediately. It's one of a string of court defeats this week for the administration's efforts on elections In markarkets newews, US indexes ended the day mixed. The do was up about zero point one percent and the S and P five hundred was flat Micron kept on soaring after its blockbuster results earlier this week. It was up almost sixteen percent today, but worries about AI spending weighed on the NSDAQ which fell about half a percent Apple stock was down more than six percent after the company announced it was raising prices of its Mac, computers and iPads Crude oil futures turned about two percent higher today, pausing a decline that has brought prices down around pre Iran war levels The run up in energy costs over the past few months was clear in the latest inflation data out today. The personersal consonsumption expenditures price index rose four point one percent in May compared to a year earlier. That's its highest reading since april twenty twenty three JP Morgan Chase has promoted two men to be presidents of the firm puts Doug Petno and Troy Rorbaugh in line to take over as CEO of the bank once Jamie Diamond steps aside. People familiar with the matter said Diamond is expecting to keep the top spot for another three years. We's got the latest on the aftermath of yesterday's powerful earthquakes in Venezuela The death toll has risen to one hundred and eighty eight, with thousands more feared trapped in the rubble The U.S. Geological sururvey is projecting a death toll in the tens of thousands and billions of dollars in losses President Trump said the U. S. stood, quote, ready, willing and able to help and had ordered federal agencies to prepare a rapid response Journal reporter Kagel Yes is bas in nearby Colombia, and he says the aftermath could change Venezuela's relationship with the U. S. and China. With these earthquake relief efforts, the expectations are that we're going to see a huge influx of private sector actors, companies, charity groups, relief organizations and even U. S. support teams coming in help with reconstruction. It's likely to give the U S a huge hand up in terms of regaining the influence on the ground that they had lost to China during so many years of hostile relations we're exclusively reporting that Iran attacked a cargo ship in the Strait of Hormz today. That's despite a deal signed last week by the U. S. and Iran to end the fighting and reopen the shipping lane. The White House didn't immediately respond to a request for comment on the attack or its bearing on the deal Coming up, why might someone choose to rent a home when they could buy? We've got the next installment of our housing series up to the break This podcast is brought to you by ReliAQuest. Cyber criminals are constantly attacking. They want your data, they want your identity, they want your innovation. ReliAQuest fortifies your business with Aentic deffense, AI that detects, contains and eliminates cyber threats in minutes. It helps your security team move faster at the work that matters most to protect the business now, and delivers insights to help them predict what's next Rellyaquest. Aentic deffense for the entnerprise. learearn more at rellyacquest. com That's R E lia QuST. com Earlier this month, I took a day trip from New York City to visit Hackenssack, a city in New Jersey that's about twelve miles from midtown Manhattan It's a city that has had some pretty dramatic redevelopment in the past few years And it's easy to see. Low apartment buildings and checks cashed storefronts sit right next to gleaming new luxury residences These new buildings are popping up all over downtown Hackenssack. They're modern buildings with all sorts of amenities a concierge, a club room, fire pits, and hammocks. very attractive things for someone like Kathy Steinbaum who moved to Hackenssack six months ago. I was a Fort Lee resident in a condominium for twenty seven years. So I was a homeowner, based on my age, coming to sixty four, I'm not gonna retire in that condominium because the costs are way too high. So I made the choice to sell my house she sold her home in order to rent though the rent isn't exactly cheap And how much would a one bedroom like this rent for? I would say roughly like twenty six, eighty five is what we're starting at. In Hakenssack, I visited Aurra, one of these luxury rental buildings that b builds itself as a boutique experience. That's the development Kathy moved into after she sold her condo.. And then you also have an amenity fee. If you had a pet, there's things involved with that. There's parking obviously, which is another fee. It may sound like a lot. But here's the thing, as buying a home becomes more and more expensive, many Americans are making the same decision as Kathy. They're trading home ownership for renting or never leaving the least life in the first place ' Joined by WSJ personersonal Finance reporter, Veronica Dagger Veronica, why would someone choose to rent when they could afford to buy And there's the flexibility aspect of it. You If you're young and you're mobile and you want to move around, you want to spend most of your budget on things like travel You'd rather invest in the stock market. Also in most markets in the US It still makes more financial sense to rent versus buy when you do the math. And some of that stigma that traditionally surrounded renting is disappearing. Of course, when you go visit your friend who's got an infinity pool in this beautiful complex they rent at, it's hard to feel bad for them. It's not like in the past where someone says like, oh, I'm renting and you're like, o, they must be having financial issues. No, we're seeing a lot of upper middle class and wealthy people deciding to rent because they don't want the headache of maintaining a property According to the US Census, home ownership in the first quarter of twenty twenty six was sixty five point three percent. That's actually not that much higher than the sixty two point nine percent for the first quarter for which data is available overall way back in nineteen sixty five. So what does that tell us about the state of home ownership in the US and the broader economy? That says a lot to some of the structural barriers out there like the supply shortage of homes in the last couple years and people's incomes aren't keeping up with How much home prices are rising. And so there's this big widening gap between what people earn and what they can actually buy. Those issues have only become worse because so many folks who have had their home for many years, they may have refinanced during the pandemic. they may have super low mortgage rates, they're not putting their home on the market fewewer homes for sale When did you first start noticing that more people were deciding to just be long term renters instead of buying their homes It started around the pandemic, housing frenzy, but it's only picked up steam. Part of this is because affordability is still strained. There's still very few homes to buy in many of these desirable markets. and people don't want to get involved with the bidding wars that are still happening in places like Northern New Jersey or Boston And so they are fundamentally rethinking that idea of becoming homeowners in certain cases. There's a consulting firm called John Burns Consulting, and they were telling me about how Gen Z is approaching this as well. They're almost seeing renting as a subscription and they like being able to move anytime they want. And Joon Byrs consulting was also telling they're seeing some older folks gravitating towards this. They want to downsize their house, but they don't w to move to assisted living yet. So they're looking for something in the meantime because they don't want to take care of their yard or they don't want to have to worry about redoing the roof or they're moving to be closer to the grandkids Those folks are on the margins, but that is increasing as a population who's looking to rent. Kathy Steinbaum, who we heard from earlier. I came from a full service concierge building So amenities were important, package room gym, that kind of thing Kathy says her old home in nearby Fort Lee, New Jersey just became too expensive to stay in, even after having paid off her mortgage. Those high rises in Fort Lee, you know, they're older buildings, so the maintenance required to oate those buildings and continue with capital improvements And assessments and everything gets it gets high When I left, I was paying like seventeen fifty a month She's actually paying more right now to rent her hack and sack two bedroom over four thousand dollars a month Leaving a rental though is much easier than selling a home, and ultimately, Kathy says she would want to buy a new home in the next few years You can listen to the full version of our look at long term renters over at our Your Money Briefing podcast And tune in tomorrow morning for the final installment of our housing series, our Q and A with Wall Street Journal real Eestate editor, Craig Carmen. He'll be answering questions from listeners like you about the housing crisis and the possible solutions we discuss this week And that's what's news for this Thursday afternoon. Today's show is produced by Anthony Bancy and Danny Lewis, our supervising producer was Pierp YenMe. I'm Alex Osaa for the Wall Street Journal. We'll be back with the new show tomorrow morning. Thanks for listening This episode is brought to you by Charles Schwab Decisions made in Washington can affect your portfolio every day But what policy changes should investors be watching Washington Wise is an original podcast from Charles Schwab that unpacks the stories making news in Washington right now and how they may affect your finances and portfolio Listen at schwab d. com slash Washington wise