Since the 1st quarter of 2014 real estate research company Zillow has been warning that the cost to rent a residence now exceeds the cost to buy one. However, couple that with the fact that the Too Big to Jail banks continue to deny potential home buyers mortgages and you’ve got the ingredients for a U.S. housing market Death Spiral!
Incomplete list of residential and commercial construction industry job destruction that took place, or were announced, from January to June 2014:
Alabama: The Associated General Contractors & Builders reports that 900 construction jobs ceased to exist between May and June! From May 2013 to May 2014 the state lost 1400 construction jobs!
Arizona: Housing market research company Zillow reports that at the end of March Yuma County had the highest negative equity (homebuyers are paying way more than what the homes are really worth) in the state, 38%. Pima and Cochise counties are close behind. In Tucson, after 55 years Fruit Land Market shutdown. The property owners kicked out the Market owners, so they could sell the land to speculators.
California: Housing market research company Zillow reports that at the end of March Lassen County had the highest negative equity, 43%! Close behind is Imperial, Kern, Tulare, Lake, Merced, Madera, Yuba, Colusa and Del Norte counties, all with more than 30% of homeowners ‘underwater’! In San Louis Obispo, after 15 years Cugini’s Pizzeria & Trattoria shutdown. The restaurant owner said the greedy property owner jacked up the rent by adding on a monthly service charge as well as demanding 6% of her restaurant’s profits! She tried complaining to the property management company but they blew her off, then suddenly she got evicted! Also, the quirky store Kwirkworld shutdown. The manager blamed the landlord saying “…the rents are really high here.” In San Jose, after only four years Elefante Blanco upscale thrift shop shutdown. The owner blames it on a rent increase. And Diddams Party & Toy Store shutdown, the owners said they could no longer pay the rent. In Simi Valley, after 50 years of selling residential steam showers ThermaSol warned state officials of a “closure” in August, at least 21 jobs will be lost. Also in Simi Valley, real estate management company Genesis Acquisition Management laid off at least four employees. In San Francisco, internet based real estate search site Trulia laid off 85 employees. Apparently four executives got demoted as well. Company officials said they are trying to eliminate redundant jobs. San Francisco based Too Big to Jail Wells Fargo proves there is a coming housing market crash by killing 1073 mortgage industry jobs across the U.S., saying “We currently expect mortgage origination volumes to decline…” Mortgage servicer CoreLogic killed at least 131 jobs throughout the Golden State! In Irvine, Genpact Mortgage killed 81 jobs. They killed about 65 jobs last year as well. North Carolina based Too Big to Jail Bank of America killed 400 mortgage service jobs in the Golden State! In Sacramento, major provider of appraisal, title and closing services to mortgage lenders, ServiceLink, laid off 97 employees. ServiceLink provided service to the top 25 U.S. banks, and Fannie Mae and Freddie Mac. In Chatsworth, Peerless Building Maintenance announced they will layoff 89 employees in August. In Truckee, after 13 years Dragonfly Restaurant shutdown. The owner said he was made an “offer he couldn’t refuse” by aggressive property developers. In Orange County, after more than 30 years Anaheim Patio and Fireside shutting down two stores. The company’s attorney blames greedy property owners saying “The rent demands at those two locations are just too high for the business model right now.” In Norwalk, Asplundh Construction laid off 83 employees. In Del Mar, after 46 years Pannikin Coffee & Tea shutdown, the owner blames the landlord: “We’ve been here a long time and we just couldn’t come to an agreement with the mall management on a fair rent so we didn’t renew our lease.”-Shawn Holder
Colorado: In Denver, a longtime Kazoo Toys store shutdown. The owner blamed it on greedy landlords.
Connecticut: The city of Hartford warned it must jack up property taxes, and that’s after $18.1-million USD in spending cuts. That’s because Obama Care (Affordable Care Act) is causing an $18.6-million increase in retirement and health insurance costs for city employees! In New Canaan, after 21 years Forest Street Deli shutdown. The deli owner blames the property owner, who sold the property out from under his feet!
Delaware: RealtyTrac reports the foreclosure rate jumped 94%, from March to April!
Florida: Brevard County is now the country’s leading area for home foreclosures. RealtyTrac says one in every 303 homes has been foreclosed by the Too Big to Jail banks! In Pinellas Park, after 22 years non-profit Venue Theater shutdown. The owner blamed it on “A recent downturn of events” like the landlord jacking up the rent. In Ocala, after 35 years Abio’s Italian Restaurant & Pizzeria shutdown by the landlord. Mortgage risk analysis firm, Digital Risk, killed 745 jobs: “Due to substantial, abrupt and unforeseen residential mortgage events, including….improving credit quality, significant volume declines in refinance loan originations, etc., demand for Digital Risk services has materially decreased.”-Brandon Johnson, senior HR manager
Idaho: Housing market research company Zillow reports that at the end of March Elmore County had the highest negative equity in the Gem State, 42%! Bingham County came in second with 29%. It must be noted that realty data from many Idaho counties are not being made public, such as Bannock County (which is the hardest hit economically)! In Pocatello, the short lived Marhaba restaurant was shutdown and the property auctioned off. It’s now a ‘vapor bar’.
Illinois: In Chicago, troubled Armaclad Windows and Doors shutting down, 195 jobs lost! The company is being liquidated due to crashing sales and bad management. The company even got $10-million in local tax incentives, but it obviously isn’t enough to stop the construction market Death Spiral. The Illinois Association of Realtors report home sales crashed 9.9% across nine counties from April 2013 to April 2014! Civil engineering firm Lakeshore TolTest now chapter 7 bankrupt busted. In Bensenville, maker of windows and doors Oldcastle BuildingEnvelope shutdown, 64 jobs lost. In Franklin Park, Philips Lighting Company laid off 81 employees.
Indiana: After 56 years Oakbrook Homes shutdown. The owner said before the 2009 recession he was building 100 homes per year, since then he’s been lucky to build 25 homes per year! Indiana Limestone shutdown, 166 jobs lost! The company supplied limestone for many iconic Washington DC buildings. In Warsaw, PolyOne Designed Structures and Solutions shutdown, 110 jobs lost!
Iowa: RealtyTrac reports the foreclosure rate skyrocketed an incredible 237%, from March to April! In Dubuque window and door maker Jeld-Wen shutdown a factory, 52 jobs lost.
Hawaii: In Maui, after more than 20 years Stella Blues Cafe shutdown. The restaurant owner stated that his landlord could no longer cut him a break on the rent. In Waikiki, ice cream shop Cold Stone Creamery shutdown. The owner blamed it on the greedy landlord who jacked up the rent.
Kansas: In Leawood, after 25 years a Hy-Vee grocery store shutdown. Company officials said the store needed $4-million in reconstruction work but the city council actually passed a ruling that forces them to shutdown: “In light of the city of Leawood’s recently passed moratorium on new development along the 135th corridor, it is clear that the current business environment in Leawood is one in which Hy-Vee cannot be successful. Two attempts to find a solution acceptable to both parties –one that allows us to continue serving our customers with the products, services and amenities that they deserve and expect — have been resisted by city officials. The first was in May 2013, when we attempted to remodel the store at its current location, and now, our most recent application to build a new store at the corner of 135th Street and Roe Avenue. Because lack of city support prevents us from providing customers with the best shopping experience we have to offer, we will be closing….”
Kentucky: In Louisville, the Heine Brothers’ Coffee shop shutdown. Company officials said the shop had good business, but not good enough to cover the outrageous rent.
Maryland: The Baltimore city Housing Authority warned it might have to layoff 24 employees. However, some reports say as many as 200 employees could become unemployed! It’s blamed on federal funding cuts, but it was revealed by one local news source that the public housing agency wants to sell off housing units to private developers under the recently created federal Rental Assistance Demonstration program. In Washington County, Too Big to Jail Citi Group laying off at least 650 employees by the end of 2014! Citi is dumping approximately 64-thousand unpaid mortgages on other collections companies! In Frederick, the Tuesday Morning closeout store closed out after only three years in business. Company officials implied the landlord kicked them out.
Massachusetts: Zillow reports that the counties of Suffolk, Middlesex, Plymouth, Norfolk and Essex have 78,873 homes with underwater mortgages (homebuyers are paying way more than what the homes are really worth), at the end of March. Too Big to Jail mortgage/finance holding company State Street killed 400 U.S. jobs this year (145 just in the Bay State) despite $2.5-billion in revenues! Investors want even more revenues, so the jobs were killed! State Street laid off 700 Bay Staters last year!
Michigan: After more than 40 years the Swartz Creek Bakery shutdown. The property owner sold off the building. Washtenaw County announced 259 properties to be bundled into 75 tax auctions! Compare that to 2013 when 186 properties were bundled for auction! Only six years after moving mortgage operations to Pittsfield Township, Too Big to Jail CitiMortgage laid off 180 people! However, Citi has so much money that the affected employees will get 60 days of pay (and probably not be counted in the unemployment data as a result). In Clinton Township, after only six years Tin Fish 3 restaurant/nightclub shutdown. The owners hadn’t been able to pay half-a-million dollars in back due rent! In Walker, after ten years Schuler Books & Music shutdown. The owners said they could not afford the rent on the new lease. In Grand Blanc Inalfa Roof Systems shutdown, 52 jobs lost. The Detroit Land Bank Authority began taking bids on dozens of abandoned houses. This round of auctions involve ‘new build’ homes and bidding starts at $1-thousand. There’s one catch, you have to pay in cash only, plus you must remodel the house (apparently these ‘new’ homes are damaged). Eaton County warned of a new round of home auctions on 06 August. The 47 properties were seized from the owners for failure to pay taxes. There is a second auction planned later in the month of August. Wayne County approved drastic plans to try and get rid of $175-million in debt. County officials admit their tax revenues are crashing because residents are up and leaving in droves. To show you how bad the situation is, Wayne County also announced 557 properties to be auctioned off just in the month of June! These are properties that were seized for failure to pay taxes. In 2013 Wayne County put up for auction nearly 20-thousand properties, the most in the whole World! Not all sold, and the county came up short $182-million! In the failed state city of Detroit: “…118,000 properties owe more than $500 million in unpaid property taxes. These properties are in addition to the more than 84,000 Detroit properties to which various public entities already hold title as a result of tax foreclosure.”-Detroit Blight Removal Task Force
Mississippi: Chapter 11 bankrupt busted Senderson Plumbing Products laid off 100 employees! Another 130 employees threatened!
Missouri: In Saint Louis, Nationstar Mortgage killed 115 jobs blaming it on a decline in demand for mortgage services. And a Schnuck Markets grocery store shutdown. Company officials said it wasn’t worth it to renew the lease. After 53 years property speculators killed the Majestic Restaurant and Bar. And after at least 37 years Left Bank Books shutdown. The book store co-owner blames the property owner: “We gave it a good run, but it didn’t work out. If we could have negotiated a better lease, it would have been a different situation.”-Jarek Steele
Montana: In Butte, the Copper King Hotel and Convention Center shutdown, 50 jobs lost. The owner was trying to sell the operation for at least the past year, but nobody is interested in buying.
Nebraska: In Scottsbluff, Nationstar Mortgage quietly killed 105 jobs! The layoffs were made public by employees, and it was also revealed that back in November 2013 the mortgage company killed all their part time jobs! Several whistleblower former employees said the mortgage industry shutdown was planned at least one year ago! In Omaha, after 60 years Eli Caniglia’s Venice Inn restaurant shutdown. Some reports say the family was forced to sell out to an evil property developer.
New Hampshire: In Manchester, lightbulb maker Osram Sylvania shutting down a factory in September, 139 jobs lost!
New Jersey: Mortgage company PHH Corporation killed 130 jobs at their Mount Laurel HQ! This is on top of hundreds of jobs killed in other states, and hundreds of job cuts made in 2013. Company officials cited Mortgage Bankers of America data which warns of an impending housing market crash! U.S. Bureau of Labor Statistics construction data shows The Garden State lost the most construction jobs of all the U.S. states, and that’s in spite of reconstruction from Hurricane Sandy. From March 2013 to March 2014 New Jersey lost 46-hundred construction jobs! In Greensboro, after 79 years Ham’s Restaurant shutdown. It’s blamed on the greedy property owner. In Jersey City, iconic Casa Dante restaurant shutdown without warning, they hadn’t paid rent since October 2013! In Medford, Murphy’s Market shutdown a 17 years old grocery store. Company officials blamed the greedy property owner saying “After great expense and effort it comes with much heartache, we as a company, were unable to reach a reasonable agreement with the building’s landlord.” In Metuchen, To Be Continued bookstore shutdown. The store owners blame the property owner: “The landlords need a certain amount of money, and we just can’t afford it.”-Sergio Gonzalez, co-owner
New Mexico: U.S. Bureau of Labor Statistics construction data from April 2013 to April 2014 shows the Land of Enchantment lost 2-thousand construction jobs! Apparently half of those losses came just during the month of April 2014! After more than 3 decades Albuquerque Lighting shutdown. In Farmington, after only three years My Big Fat Greek Restaurant shutdown, 38 jobs lost. The restaurant owner blamed the greedy property owner.
New York: Poughkeepsie city officials warned of at least 25 job cuts. The city is struggling with 300 abandoned properties, crashing tax revenues, crashing property sales, all putting the city in $3.6-million of debt! Home Furniture Gallery shutdown two stores and laid off employees at its HQ. According to company officials the greedy property owners “yanked” their leases! RealtyTrac reports the foreclosure rate for the Empire State shot up by 142%, from March to April! REIT Management & Research announced they are shutting down some ops across New York, 28 property management jobs lost. In NYC, after 55 years The Famous Oyster Bar shutdown, the owners pasted a big sign on their door blaming “exorbitant rent prices”. Once again the New York City Housing Authority made threats of shutting down 57 Community Centers! Since at least 2011 NYCHA has made alternating massive layoff threats, then suddenly canceling those threats. This is a sure sign of cooked books and political games being played with wasted tax dollars. In Bohemia, construction materials maker Jasco Industries shutdown, 70 jobs lost. In Staten Island, building maintenance supply company Total Maintenance Solution lost a contract and killed 164 jobs! In Jackson Heights, La Villita Records shutdown. Reports say sales were so bad that the owner was unable to pay rent or insurance for several months. In Syracuse, Too Big to Jail First Niagara shutdown a mortgage office, 14 jobs lost. In Babylon, DE Capital Mortgage shutdown, 52 jobs lost. In Orange County, Russin Lumber shutdown, 68 jobs lost. In Syracuse, Destiny USA – Pyramid Management Group shutdown, 44 jobs lost. NYC based Too Big to Jail, JPMorgan Chase killing 6-thousand U.S. jobs relating to mortgage refinancing! The big bank says the market for home mortgages is crashing. The big bank is also killing 2-thousand jobs relating to credit card services! 8-thousand jobs lost by the end of 2014!
North Carolina: In Winston-Salem, after 16 years Ollie’s Bakery shutdown. The landlord is the suspect. In Fort Mills, Too Big to Jail Citi Group shutdown their default mortgage service unit, killing at least 400 jobs!
Ohio: A realtor association in Columbus reporting an 11.3% drop in home sales from May 2013 to May 2014. On top of that eight counties reported their April sales dropped by 12.5%, and this is with a reduction in the number of homes available! In Kenwood, Sterling’s Cut Glass shutting down. The owners say they will focus on internet sales only. Production is also being moved, 75 jobs affected. In Riverside, Ponderosa Steakhouse restaurant shutdown without notice. Company officials blamed the property owner for jacking up the rent.
Oregon: MulvannyG2 Architecture shutdown their Portland office. They’re consolidating operations. RealtyTrac reports that foreclosures of homes is up in Oregon, by 91% from March to April! The number of homes scheduled to be auctioned off skyrocketed an unbelievable 229%! In Eugene, after 36 years Fletcher’s for Children shutdown. The store owners blame the landlord for unreasonable rent. In Hillsboro, after 33 years Skate World shutting down in June. Management suggested it was due to jacked up rent. In Medford, after 37 years roller skate rink Roller Odyssey shutdown. The owners said the could not afford the new rent. In Springfield, local farmer’s-crafts type store Eugenius Marketplace shutdown after only 18 months in business! They couldn’t afford the rent, despite tripling their sales. Back to Portland, where the Wildwood shutdown. The restaurant owner says the property owner jacked up the rent. And after 17 years Jackpot Records shutdown, the owners said “…the rents have gone up…”.
Pennsylvania: In Canonsburg, GE-Hitachi Nuclear Energy Custom Fabrication Plant shutting down in October, 130 jobs lost! GE (General Electric) is the same company that designed the disaster reactors at Fukushima Daiichi, and Hitachi helped build them. In York, lightbulb maker Osram Sylvania shutting down a factory in September, 118 jobs lost! Van Buren Homes declared bankruptcy, despite a supposedly recovered housing market!
Rhode Island: In Central Falls, lightbulb maker Osram Sylvania shutting down a factory in September, 88 jobs lost. In Newport, 107 years old Potter and Company clothing store shutdown. The owner of the store said she never thought greedy landlords would do her in by jacking up the rent: “It’s very disappointing….I thought this place would survive. It’s just such a part of the community.”-Chafee Emory
South Carolina: In Greenville, after 20 years The Fashion Shack was forced to shutdown by aggressive property developers.
Texas: Zillow reports that at least 31% of homebuyers in Bell County are paying for homes that are worth much much less than what the mortagages will end up costing the homebuyer! In Midland, Walter’s family restaurant shutdown. The restaurant owner blames the greedy property owner for jacking up the rent. Too Big to Jail Bank of America killed 156 mortgage industry jobs in Dallas, Tarrant and Collin counties! In Houston, after 37 years the Black Heritage Gallery shutdown, because the new property owner evicted the gallery owner!
Virginia: In Danville, modular home maker Commodore Homes shutdown, 100 jobs lost! Capital Bagel Bakery store shutdown. The operators blame the property owners: “We were given one month notice to vacate….”
Washington: After 35 years Chamber’s Bay Realty shutdown.
Wisconsin: In Montello, Glen Oak Lumber & Milling shutdown, 43 jobs lost.
“Next week marks 6 years since our economy suffered its worst setback since the Great Depression. Yet despite these shocks; through the pain we have felt and the grueling work required to bounce back – America is better positioned today to seize the future than any other nation on Earth. Our technology companies and universities are unmatched; our manufacturing and auto industries are thriving. Energy independence is closer than it’s been in decades. For all the work that remains, our businesses are in the longest uninterrupted stretch of job creation in our history. Despite all the divisions and discord within our democracy, I see the grit and determination and common goodness of the American people every single day – and that makes me more confident than ever about our country’s future.”-Barack Obama, 10 September 2014