Positive data on rental housing costs, a new threat to close the CFPB, and California’s housing market shows signs of vitality. From the wild and wooly world of real estate, here are our Hits and Misses for the week of Oct. 13-17.
Hit: Some Rent Relief. A new data report from Realtor.com found typical renter households spent 23.4% of their income on their housing costs in September, down from 24.9% a year ago. The good news is that this marked the 26th straight annual decline in rent costs. Rent growth has been mostly subdued this year, with median asking prices up by a mild 0.4% year to date, compared with a 1.9% increase during the same period in 2024. Nonetheless, things could be better. As Realtor.com Chief Economist Danielle Hale observed, “Two years of gradual rent declines have given renters a bit more breathing room. Still, even as a typical household spends a smaller share of income on rent than a year ago, affordability remains stretched in major markets, particularly along the coasts.”
Miss: Here We Go Again. White House budget director Russ Vought announced this week that he wants to close the Consumer Financial Protection Bureau (CFPB), contradicting the Trump administration’s repeated insistence in court that it has no plans to shutter the agency. Reuters reports Vought, who is also the CFPB’s interim director, declared on “The Charlie Kirk Show” that “we want to put it out and we will be successful probably within the next two or three months.” The targeting of the CFPB was a priority during the Elon Musk-DOGE days, but nothing came of it as CFPB staff members successfully sued to block the administration’s attempts at dismantling its operations. Well, as long as there are Trump-unfriendly judges ready to rule against the White House, it is safe to assume the CFPB is not on the path to oblivion.
Hit and Miss: California Challenges. This week, data from the California Association of Realtors showed a total of 277,410 closed escrow sales of existing, single-family detached homes was recorded in September, a 5% jump from the 264,240 homes sold in August and a 6.6% spike from the 260,340 homes sold in September 2024. This represents the first time in six months that home sales posted a year-over-year upswing. Also, California’s median home price fell 1.7% to $883,640, down from $899,130 in August. That deserves a Hit, because it gives the impression of a housing market that is slowly becoming more vibrant. However, it also rates a Miss when you consider a story from last week that found roughly 20% of California residents, approximately 5.9 million people, admitting to being worried very often or somewhat often about paying their mortgage or rent, according to UCLA’s newly published California Health Interview Survey. The latest findings, based on 2024 data, are up from an 18.8% share in 2023, an 18.2% share in 2022, and a 15.1% share in 2021. Clearly, there is much more work to be done in California before the housing market is back to normal.
Hit: Standing Up for Heroes. Kudos to the Military Order of the Purple Heart (MOPH) Chapter 598 in Corpus Christi, Texas, which is leading an effort to revive legislation that would offer full property tax exemptions to all Purple Heart recipients in their state, even if they do not meet the Department of Veterans Affairs’ 100% disability threshold. Under Texas law, only veterans with a 100% VA disability rating can receive a full exemption from property taxes, while those with lower ratings can receive partial relief. However, the veterans’ group argued the rating system comes with flaws. Ryan Morse, adjunct for MOPH 598, explained, “To illustrate, the VA Schedule for Rating Disabilities assigns 40% for a below-the-knee amputation and 60% for an above-the-knee amputation. Even with such permanent loss, a veteran may not receive the full exemption unless rated at 100%.” In view of the rising costs of housing and home renovations, providing property tax relief to military heroes who were injured in combat is the right thing to do.
Miss: No Go Deed Goes Unpunished. Our moral support goes to Ellen Riedel, who in 2022 purchased a defunct bowling alley in Ellis, Kansas, that had been vacant for 20 years. KWCH reports that Riedel shared her story in a hearing before Kansas lawmakers on how the town showed its appreciation for her work in renovating and reanimating a long-vacant eyesore into a thriving business. Riedel’s property tax bill when she bought the property was $3,510, but after restoring the site that bill quadrupled to $20,810. As Riedel complained, “We saw potential, and my husband turned it into a beautiful venue, and what was our reward? Massive tax increases.” In next year’s state-level elections, expect to hear more business owners like Riedel speaking out about property tax hikes and campaigning against incumbents who aren’t doing anything to cut those taxes.
Miss: Another Reason Not to Watch Television. They must be running out of ideas for new HGTV shows – the latest offering from that real estate-focused cable network is “Bachelor Mansion Takeover,” which brings in 12 former contestants from “The Bachelor,” “The Bachelorette,” “The Golden Bachelor,” and “The Golden Bachelorette” programs to give the mansion at the center of those romantic reality shows a property makeover. According to Variety, this six-episode series debuts in 2026 and will have the contestants competing in weekly elimination challenges relating to the renovations. Howard Lee, chief creative officer at Warner Bros. Discovery, declared that he “can’t wait to see what they get up to in this first of its kind competition for the network.” Eh, we can wait.
Phil Hall is editor of Weekly Real Estate News. He can be reached at [email protected].
Photo courtesy of StockCake
