![]() Minority would-be homeowners are feeling increasingly priced out of the market, holding off on purchasing a home until the numbers look better, says a new report issued by the National Association of Realtors. Prospective home buyers in three minority categories - Asian, Black, and Hispanic - all say they are waiting for prices to drop before entering the market. An equally large number are waiting for historically high mortgage rates to decline. A third smaller category, notes the 2023 Experiences & Barriers of Prospective Home Buyers Across Races/Ethnicities report, indicated that there were not enough homes available within their budgets. “Home buyers face the most difficult affordability conditions in nearly 40 years due to limited inventory and rising mortgage rates,” remarks Jessica Lautz, chief economist and research vice president with the NAR. In a statement, Lautz added: “The impact is exacerbated among first-time buyers who are more likely to be from underrepresented segments of the population.” The report additionally notes that saving for a competitive home down payment has also emerged as a primary obstacle to buying a home, with many indicating that they are already burdened with credit card debt, student loans, and high rents. At the same time, realtors interviewed for the report indicated that less than a quarter of would-be homeowners have applied for down payment assistance programs. Noted Lautz: “Down payment assistance programs often fly under the radar for potential home buyers.” Some 31% of Hispanic respondents, 30% of Black respondents, and 32% of Asian respondents said they were not aware of such programs. Pointing to Veterans Administration, Federal Housing Administration, and U.S. Department of Agriculture loans, Lautz added that realtors may increasingly find themselves tasked with educating potential buyers about the benefits of such programs. “Doing so, will bring in more first-time buyers and narrow the homeownership gap,” continued Lautz. By Garry Boulard
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![]() Built in 1910, one of the most classic and historic downtown El Paso office buildings is now on the market with a listing price of just under $3 million. Located at 717 E. San Antonio Avenue, the five-story Toltec Building is listed on the National Register of Historic Places. It was designed in a Beaux Arts Classicism style by well-known Western architect John Huddart. The structure, built at a cost of $100,000, was for years the home of the famous Toltec Club, a club favored by the city's business and civic elite. Upon the building's formal opening in the fall of 1910, the El Paso Herald made much of its "delicately colored rooms, libraries, and alcoves," also noting the apartments for women on the second floor, grill room on the third floor, and rooftop garden. The building hosted Theodore Roosevelt, who stopped by for breakfast at the Toltec Club in 1911, as well as the legendary Mexican revolutionary Pancho Villa, who rented space on the first floor in 1913 to serve as a purchasing office to buy supplies for his soldiers. In more recent years, the building has been the home to the Toltec Tiki Room, a bar offering Polynesian-style drinks. Measuring just over 46,000 square feet, the Toltec Building is being listed by the El Paso offices of Royal Carpet Real Estate. By Garry Boulard ![]() A one-time garage and auto repair shop in downtown Albuquerque is about to be repurposed. The Ex Novo Brewing company, which is based in Portland, Oregon, plans to renovate and upgrade a building located at Seventh Street and Central Avenue that was once the home to a Firestone Complete Auto Care location. That 11,600 square-foot garage, which opened for business in the early 1930s, was long considered a Route 66 landmark with its Art Deco exterior design. It was closed as an underperforming shop by the Firestone chain in early 2020. Now, Ex Novo plans to modernize the structure for the purpose of turning it into a full-service taproom and restaurant. According to plans, the front lot of the former Firestone garage will be turned into a patio featuring a bar, café, and beer garden. Some $75,000 in funding for the work is coming through the Metropolitan Redevelopment Agency’s Storefront Activation Grant program, which is tasked with supporting businesses and reducing vacant commercial spaces in downtown Albuquerque. Launched in Portland in 2014, Ex Novo opened a new location in Corrales in 2019. By Garry Boulard ![]() State legislatures across the country are increasingly attempting to grapple with the growth of artificial intelligence, addressing concerns about its potential misuse. According to the Denver-based National Conference of State Legislatures, at least 25 states, along with the District of Columbia, introduced bills dealing with various aspects of artificial intelligence so far this year. The state efforts come as the U.S. National Institute of Standards and Technology is conducting workshops in the hope of eventually creating federal standards for artificial intelligence systems. A legislative summary released by NCSL additionally notes that state lawmakers are studying artificial intelligence’s potential benefits, with a “growing number of measures being introduced to study the impact of artificial intelligence or algorithms and the potential roles for policymakers.” The Arizona State Legislature approved a bill prohibiting the use of artificial intelligence software in voting machines, only to see that legislation vetoed last month by Governor Katie Hobbs, who said the bill attempted to “solve challenges that do not currently face our state.” Colorado lawmakers earlier approved a bill requiring insurance companies to test their use of artificial intelligence, noting that information about race, gender, and age could be used to discriminate against consumers. The New Mexico Legislature approved a bill creating a special commission to study the impact of artificial intelligence; an approach also adapted by the state legislatures of Louisiana, Texas, North Dakota, and West Virginia. Connecticut, meanwhile, has approved a bill requiring the state’s Department of Administrative Services to do an inventory of all state agencies currently employing artificial intelligence, while at the same time requiring that such systems are regularly assessed to make sure that they are not being used in a discriminatory manner. From the executive side of the equation, California Governor Gavin Newsom earlier this month issued an executive order addressing the development, use, and potential risks of artificial intelligence as implemented by the state government. “We’re taking a clear-eyed, humble approach to this world-changing technology,” said the Governor, noting that the state should be neither “frozen by the fears or hypnotized by the upside.” In Washington, a series of bipartisan Artificial Intelligence Insight Forums have been inaugurated, with the goal of providing members of Congress with the most recent developments in the computer systems, and what, if any, legislation may be needed to govern its fast growth. In announcing formation of the insight forums, Senate Majority Leader Charles Schumer remarked: “We need the best of the best sitting at the table: the top artificial intelligence developers, executives, scientists, advocates, community leaders, works, national security experts—all together in one room, doing years of work in a matter of months.” By Garry Boulard ![]() Plans are advancing for the construction of a $600 million data center in southern Arizona that will belong to online search engine giant Google. The company, which is based in Mountain View, California, has announced that it wants to build the facility in Mesa in order to enhance its artificial intelligence and cloud business computing offerings. The facility, remarked Joe Kava, vice president of data centers for Google, will be designed to keep “digital services up and running for people and businesses,” adding that such centers “are the economic anchors in the communities where we operate.” The new project represents the first time that Google has had an actual physical facility in the Grand Canyon State. Upon completion, the new data center will be able to provide cloud technologies in metro Phoenix for both private businesses as well as public sector entities. Google in recent months has been building out its national data center presence. Last month it announced a facility investment of $1.7 billion to support already-existing data center campuses in Columbus, Lancaster, and New Albany, Ohio. Several weeks before the Ohio announcement, the company revealed plans to enhance to the tune of $350 million its Council Bluffs, Iowa, data center. The new Mesa facility will be designed to limit water usage, always a big issue in Arizona. A Google press release said the facility will employ air-cooled technology in an effort to minimize “net climate impact,” while “using natural resources responsibly, both today and in the future.” The company has additionally said that it will donate $150,000 to the utility Salt River Project in support of the company’s plan to restore hundreds of ponderosa pines destroyed by the 37-acre Dude Fire near the city of Payson in 1990. By Garry Boulard ![]() Five companies have responded to a Request for Proposals issued earlier this year to build a 35,100 square-foot hospital in Valencia County, New Mexico. County officials for years have wanted to see the construction of an acute care facility, an idea that was bolstered last year when the New Mexico Department of Finance approved $50 million in funding to plan, design, and build such a facility. The RFP issued earlier this year by the county details a 15-bed facility that will be built on a roughly 10-acre site. It additionally forecasts a 7,500 square-foot emergency department, 6,200 square-foot operating room space; and an 800 square-foot lab. Additional aspects provided in the RFP list an 800 square-foot pharmacy, l,000 square feet of clinical support space, and 2,000 square feet of ancillary support space. A push to get the project to the construction stage comes with a pointed time factor. The original state funding for the project came with a stipulation that it be spent by the end of 2025. This spring, notes the Valencia County News Bulletin, county officials successfully asked the New Mexico State Legislature to "extend the deadline to 2026, as well as allow for 5% of the $50 million to be used for pre-opening expenses." It is now expected that a contract to build the new hospital will be announced by the end of this year. By Garry Boulard ![]() As an indication that the nation's construction industry is vibrant heading into late 2023, the Associated Builders and Contractors is reporting that the index it uses to measure backlog projects stood at a healthy 9.2 months in August. That backlog, reports the association's chief economist Anirban Basu, "continues to be at the upper end of historic levels, with the infrastructure category registering substantial gains." That particular sector backlog, continued Basu, "suggests that a growing number of public works projects is poised to break ground." According to the ABC Construction Backlog Indicator, the heavy industrial sector saw a substantial backlog increase from July when it stood at 5.2 months. Last month, the figure was up to 7.7 months. Commercial and institutional work saw a backlog decrease, from 9.8 months in July to 9.5 months in August. But, as indicated by Basu, the numbers in the infrastructure category saw the greatest change from 8.2 months in July to 10.2 months last month. Regionally, the South recorded the greatest backlog figures at 11.4 months. The Northeast, Middle West, and West all came in between 8.3 and 8.8 months. By far, companies with revenues in excess of $100 million recorded the greatest backlog at 13.8 months. Companies with revenues between $30 million and $100 million saw backlogs ranging from 10.8 months to 12.8 months. The smallest backlogs, at 8.4 months, was recorded by companies with revenues of $30 million or less. In a separate ABC survey, respondents reported generally upbeat opinions on such matters as sales, profit margins, and staffing. "There's no sign of a construction recession in the near term," said Basu in looking at these positive numbers. "If anything, contractors are more upbeat, as policy and technology shifts along with the economic transformation are creating substantial demand for improvements and growth in America's built environment." By Garry Boulard ![]() The third largest school district in Arizona, and still growing, has put on the ballot for this November a big $480 million bond designed to upgrade nearly 90 separate schools. With more than 40,000 students and encompassing some 230 square miles, the Tucson Unified School District is confronting a facility challenge familiar to many districts across the country: the median age of its buildings is around 55 years old, with some structures having been built more than a century ago. One of the larger proposed individual school projects to be funded by the bond will see just over $4 million spent on system upgrades, a sewer line replacement, and security updates at the Booth-Fickett K-8 Magnet School, located at 450 S. Montego Drive. Slightly under $4 million will target water and sewer line replacement work at the Catalina High School, located at 3645 E. Pima Street, as well as new interior and exterior lighting, and renovations to the school's auto and welding shop. Another roughly $3 million will go for sewer and water line replacement work, along with new electronic heating and cooling system controls, and general building renovations at the Miles Exploratory Learning Center at 1400 E. Broadway Boulevard. According to information released by the district, additional facility work will see the repairing of any number of athletic fields, ball courts and gymnasiums, not to mention fine and performing arts space improvements. Proponents of the bond heading into the fall election will have their work cut out for them: in 2017 district voters rejected a similar, but much smaller $180 million bond by a 59% to 41% margin. By Garry Boulard ![]() Plans are moving ahead for the structural transformation of one of Tucson's most iconic buildings. Located at 72 East Congress Street, the structure is most known as being the home to the Indian Village Trading Center. For several decades that business - with a curio, jewelry, pawn shop, and crafts display - attracted visitors from across the Southwest. Identified by its neon Taos Indian hoop dancer sign at the corner of the structure, the store also featured rugs, furniture, and both Native American and Western clothing. The Rio Nuevo Multipurpose Facilities District has now finalized its $1.5 million purchase of the building, announcing plans to renovate and repurpose it as a restaurant, bar, and entertainment venue. It is expected that the updating work on the 7,100 square-foot structure may cost as much as $5.5 million to complete. Listed on the National Register of Historic Places, the structure was originally built in 1897 and served as the home to several retailers before becoming the Indian Village Trading Center. It features an 18-foot tall first floor and mezzanine ceiling, cast-iron storefront facade, and basement walls of lime mortar. By Garry Boulard ![]() With many economic forecasts agreeing that a recession seems almost certain in the coming months, the only area of disagreement centers on its size and duration. According to a just-released report by the Frankfort, Germany-based Deutsche Bank, the odds of the U.S. slipping into a recession before the end of the year or in 2024 appear to be increasing. Presenting what it calls a “monthly chartbook,” the Deutsch report remarks: “This model shows a twelve-month possibility of recession remaining above 90%.” “Given that inflation peaked significantly above target,” notes the Deutsche report, “the Fed should err on the side of tightening too much, rather than too little.” Continues the report, called US Economic Perspecetives: “A U.S. recession remains more likely than not.” The document additionally notes that in order for a much-desired "soft landing" to actually become reality, the Fed would have to first “depress demand below potential.” By so doing, it would positively impact inflation. The Deutsche report comes as the American Bankers Association has issued a new study contending that the country is more likely than not to avoid a major recession, even as economic growth has somewhat slowed down. The ABA report, compiled by the association’s Economic Advisory Committee, sees real economic growth slowing from the 2.1% of earlier this year to around 1%, with matters slightly improving next year. A press release issued by the ABA contends that “recession risks center primarily around the delayed impact of monetary tightening, deteriorating credit availability, and high credit costs.” Additional risks may be found in a “prolonged government shutdown or renewed flaring of geopolitical tensions.” The ABA committee report also notes that business investment appears likely to slow in the coming months, “particularly in areas of the economy benefitting from government policy initiatives such as chips and electric vehicle manufacturing.” Businesses, meanwhile, appear to be preparing for an economic slowdown by “reducing inventory accumulation and hiring.” Add to the forecasting mix the predictions of two economists from the New York-based Conference Board who suggest that a decline in consumer spending may be the key to any recession forecast. “The all-important U.S. consumers have stood their ground and continued to spend, and most data underlines spending growth,” say economists Dana Peterson and Erik Lundh, in a signed editorial for the CNN's website. “But some emerging information suggests that consumers may eventually stumble," continue the economists, "which could drive the U.S. into a brief recession.” By Garry Boulard |
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