>>> FUNDING FOR "NJ BUSINESS BEAT" PROVIDED BY NJCU SKOOBZ.

A GAME CHANGING FORCE OFFERING PROGRAMS LIKE FINANCIAL TECHNOLOGY AND BUSINESS ANALYTICS AND DATA SCIENCE.

STEPS AWAY FROM THE EXCHANGE PLACE PATH TRAIN IN JERSEY CITY AND MINUTES FROM WALL STREET.

LEARN MORE AT NJCU.EDU SLASH GAME CHANGER.

>> THIS WEEK ON "NJ BUSINESS BEAT"S. SUPPLY CHAIN STRUGGLES.

BOTTLENECKS FROM COAST TO COAST CAUSING COST AND DELAYS THAT WILL BE PASSED ON TO YOU THE CONSUMER.

PLUS A MAJOR MILESTONE A DECADE IN THE MAKING.

THE LATEST ON THE PLAN TO REPLACE THE CENTURY OLD PORTAL BRIDGE.

AND WE PUT NEW JERSEY'S REAL ESTATE MARKET IN FOCUS, ANALYZING HIGH SALES PRICE, SATE OF INVENTORY IN NEW CONSTRUCTION, WAYS TO TACKLE AFFORDABLE HOUSING PRICES AND ADVICE FOR FIRST-TIME HOME BUYERS.

AHEAD ON "NJ BUSINESS BEAT"S. ♪♪ >> THIS IS "NJ BUSINESS BEAT" WITH RHONDA SCHAFFLER.

>> HELLO.

THANKS FOR JOINING US ON "NJ BUSINESS BEAT."

IF YOU ARE WATCH ON YOUTUBE, MAKE SURE YOU SUBSCRIBE TO OUR NJ SPOTLIGHT NEWS YOUTUBE CHANNEL TO GET ALERTED WHEN WE POST NEW EPISODES AND CLIPS.

YOU MAY HAVE NOTICED YOUR ORDERS FROM AMAZON OR OTHER ONLINE RETAIL WEBSITES ARE TAKING A LITTLE LONGER TO FILL.

MAYBE INSTEAD OF GETTING YOUR PACKAGE IN A DAY OR TWO, IT IS TAKING SEVERAL DAY OS ARE A WEEK.

OR MAYBE YOU TRIED TO PLACE AN ORDER BUT WHAT YOU WANTED WAS OUT OF STOCK.

THIS IS HAPPENING BECAUSE OF BOTTLENECKS LONG THE SUPPLY CHAIN FROM MANUFACTURING TO SHIPPING TO DELIVERY.

YOU MAY HAVE HEARD OF THE PROBLEMS AT WEST COAST PORTS.

THERE IS TROUBLE ON THE EAST COAST AS WELL AS WE HEARD FROM A FEW EXPERTS.

>> IN FIFTY YEARS OR SO OF DOING THIS ITS NEVER BEEN THERE FRUSTRATING.

IT IS CRAZY.

IT IS GOING TO GET WORST.

YOU KNOW, IF YOU WANT SOMETHING YOU ARE GOING TO HAVE TO PAY MORE FOR IT.

THERE IS JUST NOT GOING TO BE NOW HAVE GO AROUND.

MERCHANDISE THAT ISN'T IN DISTRIBUTION CENTERS NOW OR WITHIN THE NEXT MONTH OR SO IS NOT GOING TO BE AVAILABLE TO PURCHASE FOR THE CHRISTMAS SEASON.

>> MOST CONSUMABLES COME FROM OUTSIDE THE COUNTRY.

AND SHIPPING HAS BEEN REALLY BAD.

THE RELIABILITY OF SPECIFICS BECAUSE LOT OF STUFF COMES FROM CHINA AND TRANSIT PACIFIC TRIPS HAS BEEN VERY LOW.

AND HAS BEEN ALL-TIME LOWS EVEN THE NEW YORK/NEW JERSEY PORT.

>> NEW JERSEY CONGRESSMAN JOSH GOTTHEIMER SAYS SUPPLY CHAIN PROBLEMS ARE BEHIND PRICE INCREASES ON A NUMBER OF GOODS.

AND HE SAYS THAT'S HURTING FAMILIES AND BUSINESSES.

>> WHY HAS IT GOTTEN SO EXPENSIVE THAT BUT NOW HAVE A FIVE ALARM FIRE WITH THE UPCOMING HOLIDAY SEASON.

THE LAST THING WE NEED IS A GIANT PIECE OF COAL IN AMERICA'S CHRISTMAS STOCKING THIS SEASON.

GIVEN HOW DEPENDENT WE ARE AND WHAT COMES TO US IN THESE CONTAINERS THE COST THEY HAVE TO CHARGE THE AVERAGE FAMILY FOR NEARLY EVERYTHING GOES WAY UP.

AND HURTS FAMILIES AND BUSINESSES ESPECIALLY NOW INTO CHRISTMAS TIME.

CRIPPLING SMALL BUSINESSES BECAUSE IT IS HARDER TO ABSORB THE PRICES FOR THINGS THEY SELL, IF THEY CAN EVEN GET THEM.

>> THIS WEEK THEY WOULD EXPAND HOURS TO GET THROUGH THE BACKLOGS AND PORTS ALONG THE WEST COAST WILL MOVE TO WORKING AROUND THE CLOCK.

AND ANOTHER BOTTLENECK NEW JERSEY TRAIN COMMUTERS HAVE HAVE BEEN DEALING IF WERE YEARS BUT IS COMING TO AN END.

AND NJ TRANSIT HAS APPROVED A NEARLY $1.6 BILLION CONTRACT TO REPLACE THE PORTAL BRIDGE WHICH CARRIES TRAIN TRAFFIC OVER THE HACKENSACK RIVER.

MORE THAN A HUNDRED YEARS OLD AND AS ANY NEW YORK-BOUND COMMUTER KNOWS, IT CAN GET STUCK FROM TIME TO TIME RESULTING IN DELAYS.

THE NEW BRIDGE WILL BE BUILT 25 FEET HIGHER ABOVE THE WATER TO ACCOMMODATE LARGER SHIPS PASSES UNDER THE BRIDGE.

CONSTRUCTION WORK COULD START IN THE NEXT FEW MONTHS WITH THE FIRST TRACK EXPECTED TO OPEN IN NOVEMBER 2025.

THE PORTAL PRIVILEGE IS ONE OF THE BUSIEST RAILROAD BRIDGES USED BY 200,000 PASSENGERS A DAY.

THIS PAST WEEK THE FINAL GUBERNATORIAL DEBATE WAS HELD RIGHT HERE ON NJ PBS.

GOVERNOR PHIL MURPHY AND REPUBLICAN JACK CHIT REALLY TRADED VERBAL BLOWS ON TAXES IN THE STATE BUDGET AS A ROWDY CROWD MIXED IN CHEERS AND JEER ZBLIS THINK WE NEED A TAX SYSTEM THAT WORKS FOR EVERYBODY.

RIGHT NOW THAT'S NOT THE CASE.

THE GOVERNOR'S BUDGET SUPERVISOR $11 BILLION IN FOUR YEARS I'M.

THAT IS MORE THAN 30%.

>> I THINK ALL SIT DOWN AND TIGHTEN THE BELT AND FIND PLACES TO CUT.

>> WHICH SPECIFIC PROGRAMS WOULD YOU CUT?

>> I'LL TELL YOU WHAT I'LL DO MICHAEL.

I WILL SIT DONE ON DAY ONE OF THE LEGISLATURE, WE'LL HAVE THAT CONVERSATION.

>> WHY IS THE BUDGET UP.

THINK ABOUT IF YOU ARE YOUR FAMILY DID NOT PAY THE RENT OR MORTGAGE.

WE'RE PAYING OUR BILLS.

AND BY THE WAY, EVERY TIME OF THE MILLIONAIRES TAX HAS GONE INTO THE MIDDLE CLASS FOR TAX RELIEF.

EVERY DIME.

>> WE'LL HAVE A LOT MORE ON THE CAMPAIGN IN OUR SHOW NEXT WEEK.

WHEN IT COMES TO NEW JERSEY'S ECONOMY, THERE ARE DISPARITIES THAT HAVE ONLY DEEPENED SINCE COVID-19.

THAT IS EVIDENT IN A NEW REPORT FOR THE NEW JERSEY INSTITUTE OF SOCIAL JUSTICE WHICH FOUND NEW JERSEY'S MOST VULNERABLE POPULATIONS HAVE NOT RECEIVED THE FINANCIAL SPORT ON PAR WITH MOST COMMUNITIES.

LAURA SULLIVAN IS THE INSTITUTE'S DIRECTOR OF ECONOMICS PROGRAMS.

LAURA, THIS LATEST REPORT FROM YOUR ORGANIZATION POINTS OUT A LOT OF THE PROBLEMS COVID-19 CREATED IN COMMUNITIES THAT WERE ALREADY FACING PROBLEMS.

HOW HAS COVID EXACERBATED THE ISSUE OF FINANCIAL INSECURITY IN NEW JERSEY FOR MANY, MANY PEOPLE?

>> WELL THANK YOU FOR HAVING ME.

THIS IS REALLY AN IMPORTANT CONVERSATION THAT WE NEED TO HAVE.

OUR REPORT REALLY HIGHLIGHTS THE FACT THAT COMMUNITIES OF COLOR IN NEW JERSEY WERE DISPROPORTIONATELY IMPACTED BY THE COVID-19 PANDEMIC.

FROM THE HEALTH OUTCOMES TO THE ECONOMIC OUTCOMES.

SO IN TERMS OF THE ECONOMIC OUTCOMES, WE'VE REALLY SEEN THAT COMMUNITIES OF COLOR, BLACK AND LATINO COMMUNITIES IN PARTICULAR HAVE FACED A DISPROPORTIONATE EXPOSURE TO THE VIRUS AT THEIR JOBS.

THEY HAVE BEEN LESS LIKELY TO BE ABLE TO WORK FROM HOME.

WE HAVE ALSO SEEN THAT BLACK AND LATINO FAMILIES HAVE FACED GREATER ECONOMIC CONSEQUENCES.

THEY HAVE BEEN MORE LIKELY TO FACE UNEMPLOYMENT AND JOB LOSS.

LOSS OF INCOME, DUE TO REDUCED HOURS.

WE'VE ALSO SEEN THAT HERE IN NEW JERSEY BECAUSE THESE DISPROPORTIONATE IMPACTS ARE BUILDING ON PREEXISTING INEQUITIES, OUR RACIAL WEALTH GAP, WHICH IS AMONG ONE OF THE HIGHEST IN THE NATION, MEANS THAT COMMUNITIES OF COLOR ARE LESS LIKELY TO HAVE A SAFETY NET A RAINY DAY FUND TO WEATHER A JOB LOSS OR WHEN THEY HAVE LOSS OF INCOME.

SO WE'VE REALLY SEEN DRAMATIC IMPACTS IN BLACK AND BROWN COMMUNITIES DURING THIS PANDEMIC.

>> ONE AREA THAT YOUR REPORT FOCUSES ON IS HOUSING.

WHETHER IT IS RENTAL HOUSING OR THE HOME OWNERSHIP ISSUE, WHICH AS YOU KNOW ONE REASON WE HAVE THE WEALTH DISPARITY IS DIFFERENT IN HOME OWNERSHIP RATES.

WHAT HAVE YOU FOUND?

AND HOW DO WE GO ABOUT FIXING THIS PROBLEM?

>> WE IN OUR REPORT TALK ABOUT THE FACT THAT THESE DISPARITIES EXIST BECAUSE OF GENERATIONS OF POLICIES WHICH HAVE BRED OPPORTUNITIES FOR HOME OWNERSHIP FOR WHITE FAMILIES PREDOMINANTLY WHILE EXCLUDING BLACK FAMILIES IN PARTICULAR.

FROM RED LINING TO MORE RECENTLY PRED TOREY LENDING IN COMMUNITY OF COLOR PARTICULARLY DURING THE GREAT RECESSION.

SO WE'VE SEEN THESE DISPARITIES CONTINUE TO EXIST BECAUSE OF POLICIES THAT WE HAVE ALLOWED TO EXIST OVER GENERATIONS.

SO WE FEEL THAT BECAUSE OF THAT WE NEED ADDITIONAL POLICIES TO HELP REPAIR HARMS.

>> ARE YOU OPTIMISTIC SOME OF THOSE HARMS WILL GET REPAIRED?

>> WE ARE OPTIMISTIC THAT THERE IS OPPORTUNITIES FOR CHANGE.

WE ARE WORKING TOWARDS SUPPORTING THE NEW JERSEY REPARATIONS TASK FORCE HERE IN THE STATE.

WE'D LIKE TO SEE THAT PASSED THIS YEAR.

WE THINK IT IS CRUCIAL TO START WITH THE FOUNDING OFF OUR NATION WITH THE INSTITUTION OF SLAVERY WHICH TOOK HOLD DEEPLY IN THE STATE OF NEW JERSEY, IN FACT WE WERE KNOWN AS THE SLAVE STATE OF THE NORTH.

SO WE WOULD LIKE TO SEE THAT IMPORTANT TASK FORCE PASSED SO THAT WE CAN BEGIN TO LOOK AT HOW SYSTEMIC DISCRIMINATION HAS LED TO WHERE WE ARE TODAY.

AND THEN WE CAN PROMOTE POLICY REFORMS.

>> LAURA, THANK YOU SO MUCH FOR YOUR TIME.

I REALLY APPRECIATE IT.

>> THANK YOU SO MUCH FOR HAVING ME.

>> AS WORKERS RETURN TO THE OFFICE, AND WITH KIDS BACK IN SCHOOL, THE DEMAND FOR COVID-19 TESTING IS HIGH.

TO MEET THAT DEMAND, QUEST DIAGNOSTICS HAS EXPANDED ITS FACILITIES TO CLINTON, OPENING A NEXT GENERATION 250,000 SQUARE FOOT LAP.

IT CAN HANDLE MORE THAN 300,000 TESTS PER DAY, WHICH WILL BE CRITICAL TO THE CURRENT PANDEMIC AND FUTURE OUTBREAKS ACCORDING TO QUEST'S SENIOR DIRECTOR, ROBERT ROGEMANN.

WHAT THIS PANDEMIC SHOWED US IS THAT INCREASED CAPACITY COULD BE A CRITICAL COMPONENT FOR LABS IN THE FUTURE, SHOULD WE FACE ANOTHER PANDEMIC LIKE THIS.

AND THIS FACILITY IS DESIGNED WITH EXPANSION CAPABILITIES IN MIND SO THAT WE CAN ADAPT CHANGING CONDITIONS SHOULD ANOTHER SITUATION OCCUR.

>> OWNING A HOME OR RENTING AN APARTMENT IN NEW JERSEY IS BECOMING INCREASINGLY DIFFICULT AND A LOT MORE EXPENSIVE.

HOME BUYERS ARE EXPERIENCING A SELLERS' MARKET AND AT THE SAME TIME NEW JERSEY'S POOREST COMMUNITIES ARE STRUGGLING TO PAY THEIR RENT WHILE STILL AFFORDING BASIC NEEDS LIKE FOOD AND HEALTHCARE.

WE'RE PUTTING NEW JERSEY'S REAL ESTATE MARKET IN FOCUS THIS WEEK, FROM THE LATEST TRENDS TO SOLUTIONS FOR AFFORDABLE HOUSING.

TO UNDERSTAND WHY HOUSING IS SO EXPENSIVE, IT IS HELPFUL TO LOOK AT THE OVERALL REAL ESTATE MARKET.

IN NEW JERSEY, FEWER HOMES WERE AVAILABLE FOR SALE IN AUGUST, THE MOST RECENT MONTH DATA WAS AVAILABLE.

NEW LISTINGS DROPPED MORE THAN 16%.

THE FRENETIC PACE OF ACTIVITY SLOWED WITH CLOSED SALES DOWN 6%.

BUT PRICES ARE STILL RISING.

THE MEDIAN SALES PRICE OF A HOME WAS $461,000.

UP NEARLY 13% IN THE PAST YEAR.

TO GET THE LATEST ON THE REAL ESTATE TRENDS, WE ARE SEEING IN OUR STATE, I TALK WITH ROBERT WHITE, THE INCOMING PRESIDENT OF NEW JERSEY REALTORS.

ROBERT, WE SAW SALES OF SING FAMILY HOMES DIP IN AUGUST FOR THE FIRST TIME IN QUITE A WHILE.

WHAT IS THE FALL SELLING SEASON LOOKING LIKE IN NEW JERSEY?

>> THE DIP WAS JUST BECAUSE IT'S SUMMER.

AND I THINK THAT, YOU KNOW, THE REMAINDER OF 2021 AND WELL INTO 2022 YOU WILL STILL CONTINUE SEEING RISING PRICE, RISING INVENTORY, LOW INTEREST RATES AND LOTS OF BUYERS OUT THERE LOOKING TO BUY.

>> WHEN YOU SAY RISING INVENTORY, DOES THAT MEAN WE'RE GOING THE MOVE TOWARDS A BUYERS MARKET?

OR IS IT STILL VERY MUCH A SELLERS MARKET.

>> THE BIGGEST THING RIGHT NOW IS THAT NEW HOME STARTS HAVE STARTED AGAIN.

BUILDERS ARE NOW SIGNING CONTRACTS, YOU KNOW, ON NEW PROJECTS.

THEY ARE GETTING CAUGHT UP ON THE 2020 PROJECTS THAT WERE LAGGING BEHIND BECAUSE OF INVENTORY IN TERMS OF MATERIALS, PRICING COSTS AND STUFF LIKE THAT.

BUT THAT'S ALL, YOU KNOW, LUMBER IS BACK DOWN.

APPLIANCE LEAD TIMES ARE, YOU KNOW, IMPROVING.

SO BUILDERS FEEL CONFIDENT NOW THAT THEY CAN LOCK INTO A CONTRACT AT A PARTICULAR PRICE AND NOT WORRY ABOUT, YOU KNOW, TAKING A LOSS AT THE END OF THE DAY.

SO WE ARE STARTING TO SEE MANY MORE NEW HOME STARTS ACROSS THE STATE.

AND THAT TOO ADDS INVENTORY EVERY DAY TO THE MARKET.

>> DO YOU SEE MORE THAN SINGLE FAMILY HOME STARTS?

IN OTHER WORDS WE SAW A RUSH OF BUILDING AROUND TRAIN STATION, CONDOS, THINGS LIKE THAT.

>> WE'RE SEEING A MIX OF EVERYTHING, RIGHT?

SO THERE ARE A LOT OF NEW HOME STARTS, YOU KNOW, IN THE NORTHERN PART OF THE STATE AS WELL AS THE CENTRAL PART OF THE STATE THAT CONSIST OF SINGLE FAMILIES.

THEY CONSIST OF TOWN HOMES AND CONDOS.

AND SOME EVEN MIXED WHERE THERE IS A LITTLE BIT OF BOTH IN THE DEVELOPMENTS.

>> DO YOU THINK, ROBERT, WITH MORE INVENTORY COMING ON THE MARKET, IT WILL HELP FOR THE FIRST-TIME HOME BUYER?

LET'S FACE IT.

THE AFFORDABILITY ISSUE EVEN WITH LOW MORTGAGE RATES IS VERY DIFFICULT FOR A LOT OF NEW JERSEY RESIDENTS BECAUSE THE PRICES KEEP GOING UP.

>> YOU KNOW, I THINK WHEN WE TALKED EARLIER IN THE YEAR WE WERE SEEING 20 TO 30 MULTIPLE OFFERS ON ANY GIVEN PROPERTY, RIGHT?

AND UPWARDS OF, YOU KNOW, 20 TO 100 THOUSAND DOLLARS OVER THE ASK PRICE.

WE'VE ALREADY STARTED TO SEE, WHERE WE'RE STILL GETTING MULTIPLE OFFERS, BUT WE'RE -- WE'RE SEEING MAYBE 6 TO 10.

RIGHT?

SO THAT MEANS THAT THERE IS AN INCREASE IN INVENTORY.

AND I THINK IT ALSO MEANS THAT A FIRST-TIME HOME BUYER PARTICULARLY, WHERE THEY MAY HAVE HAD THEIR EYES SET FOR CERTAIN AMENITY, CERTAIN NEIGHBORHOODS, THAT THEY ARE THINKING OUTSIDE THE BOX OR MAYBE EXPANDING THEIR REACH A LITTLE MORE AND TAKING ADVANTAGE OF THAT.

AND THEY ARE GETTING THEIR BIDS WON.

>> FINALLY, ROBERT, WHAT IS GOING TO BE DO YOU THINK THE ONE BIG INTHING THIS HOUSING AS WE LOOK AHEAD TO THE NEXT YEAR?

WE'VE GONE THROUGH PHASE, WHETHER IT IS OPEN CONCEPT OR A CERTAIN KIND OF KITCHEN.

BUT WHAT IS THE THING HAPPENING NOW?

>> OUTDOOR SPACE IS STILL GOING TO BE VERY VERY IMPORTANT TO EVERYBODY.

AND I ALSO BELIEVE THAT YOU ARE GOING TO SEE DEDICATED HOME OFFICE SPACE, NOT ONLY FOR PARENTS BUT FOR CHILDREN AS WELL.

SO I THINK THOSE WILL BE THE TWO BIGGEST ITEMS THAT FAMILIES ARE LOOKING FOR WHEN THEY ARE, YOU KNOW, PLANTING ROOTS IN NEW JERSEY.

>> ROBERT, AS ALWAYS, A FLOWS SPEAK WITH YOU.

THANK YOU.

>> GREAT SEEING YOU.

HAVE A GREAT DAY.

>> GIVEN THE PRICE OF HOUSING, OWNING A HOME IS SIMPLY OUT OF REACH FOR MANY.

BUT RENTING IS ALSO CHALLENGING.

ESPECIALLY IF YOU ARE WORKING FOR MINIMUM WAGE.

THE FAIR MARKET RENT FOR A ONE BEDROOM APARTMENT IN NEW JERSEY IS JUST UNDER $1400.

BUT TO AFFORD THAT AT MINIMUM WAGE IN NEW JERSEY, YOU WOULD HAVE TO WORK 88 HOURS PER WEEK.

THAT IS MORE THAN TWO FULL WORKWEEKS IN ONE.

FOR MORE ON THIS WAGE AND HOUSING GAP, WE SPOKE TO ANDREW ARRENT AT THE NATIONAL LOW INCOME HOUSING COALITION.

ANDREW, THE COALITION DID A STATE BY STATE LOOK AT JUST HOW EXPENSIVE IT IS FOR RENTERS AND HOW HARD AND LONG THEY HAVE TO WORK TO AFFORD RENT IN THEIR COMMUNITIES.

GIVE ME SOME OF THE HIGHLIGHTS FROM YOUR FINDINGS IN NEW JERSEY, WHICH IS ONE OF THE LEAST AFFORDABLE STATES.

>> WHAT WE FOUND IS THAT NEW JERSEY IS THE SIXTH LEAST AFFORDABLE STATE IN THE NATION.

AND WE ESTIMATE THAT IN THE STATE THE TYPICAL RENTER WHO IS WORKING FULL-TIME NEEDS TO EARN AT LEAST $26 AN HOUR JUST TO AFFORD A MODEST ONE BEDROOM APARTMENT WITHOUT SACRIFICING OTHER NECESSITIES LIKE FOOD AND TRANSPORTATION AND OTHER THINGS THEY NEED TO SURVIVE.

>> SO WE KNOW IN NEW JERSEY THAT THAT IS JUST NOT REALISTIC FOR SO MANY PEOPLE.

WHEN YOU'D LOOK AT THIS REPORT AS A WHOLE.

WHAT IS IT SAYING ABOUT THIS STATE WE'RE IN WHERE PEOPLE ARE STRUGGLING TO FIND AFFORDABLE HOUSING?

>> YEAH, I MEAN IT TELLS US THAT THERE ARE MILLIONS OF RENTERS WHO ARE WORKING IN LOW-WAGE JOBS OR WHO ARE ON FIXED INCOMES THAT ARE REALLY STRUGGLING TO FIND AND AFFORD A RENTAL HOME.

YOU KNOW, WE FOCUS ON THE HOUSING NEEDS OF THE LOWEST INCOME RENTERS.

AND SO OFTEN THOSE ARE RENTERS THAT TYPICALLY HAVE INCOMES BELOW POVERTY.

AND WE ESTIMATE THAT THE STATE OF NEW JERSEY HAS A SHORTAGE OF MORE THAN 200,000 RENTAL HOMES THAT WOULD BE AFFORDABLE AND AVAILABLE TO THOSE RENTERS.

>> DID THE PANDEMIC MAKE IT WORSE?

>> IT DEFINITELY HAS.

AND MORE THAN HALF OF RENTERS HAVE SAID THAT THEY HAVE LOST INCOME AT SOME POINT DURING THIS PANDEMIC.

IT IS EVEN A GREATER PROPORTION AMONG LOW INCOME RENTERS HAVE THAT LOST INCOME.

AND MANY OF THESE RENTERS WERE STRUGGLING BEFORE THE PANDEMIC.

AND NOW THEY ARE STRUGGLING EVEN MORE NOW.

>> SO OF COURSE, THE MILLION DOLLAR QUESTION IS, HOW DO YOU FIX THE PROBLEM?

DO YOU HAVE TO INCENTIVIZE DEVELOPERS IN SOME WAY?

BECAUSE WE KNOW DEVELOPERS ARE BUILDING A LOT OF SWANKY APARTMENTS.

NOT JUST IN NEW JERSEY, BUT CROSS THE COUNTRY.

SO HOW DO WE TACKLE A PROBLEM THAT IS THIS BIG?

>> YOU KNOW FIRST AT THE FEDERAL LEVEL WE REALLY NEED TO INCREASE THE AMOUNT OF RENTAL ASSISTANCE THAT WE PROVIDE TO LOW INCOME RENTERS.

YOU KNOW CURRENTLY, NATIONALLY ONLY ABOUT ONE OUT OF EVERY FOUR ELIGIBLE FAMILIES ACTUALLY RECEIVE ASSISTANCE BECAUSE WE JUST DON'T ADEQUATELY FUND THE PROGRAMS.

AND THAT RENTAL ASSISTANCE WOULD HELP RENTERS AFFORD HOUSING IN THE PRIVATE MARKET.

BUT BEYOND THAT, WE NEED TO INVEST IN HOUSING PROGRAMS THAT WOULD SUPPORT DEVELOPERS WHO ARE DEVELOPING HOUSING THAT IS AFFORDABLE TO LOW INCOME RENTERS.

AND WE HAVE THESE PROGRAMS IN PLACE NATIONALLY.

WE JUST DON'T FUND THEM WELL.

>> WE HAVE SEEN HERE SOME RENTAL ASSISTANCE GIVEN OUT RELATED TO THE UP AND DOWN TO TRY TO HELP SOME OF THE.

BUT HOW BIG OF A POTENTIAL PROBLEM ARE WE LOOKING AT WHEN IT COMES TO EVICTIONS AND HOUSING INSECURITY?

>> YOU KNOW, WE KNOW THAT THERE ARE ABOUT SIX MILLION RENTER HOUSEHOLDS BEHIND ON REND.

THAT IS ABOUT ONE OUT OF EVERY SEVEN HOUSEHOLDS AND MANY OF THEM, ABOUT NEARLY THREE MILLION SAY THEY FEAR THEY ARE GOING TO BE EVICTED WITHIN THE NEXT TWO MONTHS.

SO THIS IS A LONG-TERM PROBLEM.

AND WE NEED LONG-TERM SOLUTIONS LIKE -- LIKE MORE RENTAL ASSISTANCE, YOU KNOW, HAD WE HAD A HOUSING SAFETY NET IN PLACE BEFORE THE PANDEMIC, WE WOULDN'T BE AS RELIANT ON EMERGENCY RENTAL ASSISTANCE THAT STATES AND LOCALITY HAVE HAD THE TO HURRY UP AND PUT IN PLACE AND FIGURE OUT.

>> AND FINALLY DO YOU SEE ANY APPETITE FOR THAT IN THE CAPITOL HILL.

>> MORE THAN 300 MILLION DOLLARS IN THE BUILD BACK BETTER ACT THE DEMOCRATS IS PUT FORWARD THAT COVERS MORE RENTAL ASSISTANCE AND MORE SUBSIDIZED CONSTRUCTION OF AFFORDABLE HOUSING AND ALSO THERE IS MONEY FOR PUBLIC HOUSING TO MAKE SURE WE MAINTAIN QUALITY OF THE HOUSING AS WELL.

>> THANK YOU FOR SHARING THE RESEARCH WITH ME, I APPRECIATE IT.

>> THANKS FOR HAVING US.

>> THE PHRASE "AFFORDABLE HOUSING" CAN CONJURE UP IMAGES OF OLD RUN DOWN BUILDINGS.

TAKE A LOOK AT A THESE.

THE COMPANY WORKS WITH MUNICIPALITIES AND NON PROFITS THROUGHOUT THE STATE TO DEVELOP AFFORDABLE PROPERTIES IN SUBURBAN COMMUNITIES.

WE TALKED WITH THE OWNER OF THE WALTERS GROUP, JOE DALE DUCA ABOUT WHY HIS COMPANY PUTS SUCH EMPHASIS ON AFFORDABLE HOUSING COMPLEXES.

>> THE DEMAND FOR AFFORDABLE HOUSING IS OVERWHELMING, BOTH IN NEW JERSEY AND AROUND THE COUNTRY.

LITERALLY MANY HUNDRED OF THOUSANDS OF FAMILIES IN NEW JERSEY SPENDING MORE THAN 50% OF THEIR INCOME ON HOUSING.

AND THE CONVEY ECONOMISTS AND OTHERS WILL LAY IT OUT FOR YOU, IF YOU ARE SPENDING MORE THAN 30% ON YOUR HOUSING, YOU ARE INCOME CHALLENGED.

AND IN NEW JERSEY, WE ALL KNOW THAT REAL ESTATE IS EXTREMELY EXPENSIVE.

AND IT IS MORE EXPENSIVE IN SUBURBAN PLACES, PLACES WITH GREAT SCHOOLS.

PLACES WITH JOBS.

AND THAT IS WHERE PEOPLE WANT TO LIVE BECAUSE THEY WANT THEIR KIDS TO GO TO GOOD SCHOOLS AND THEY WANT TO BE NEAR THEIR JOBS.

AND SO IT IS EXTREMELY DIFFICULT FOR PEOPLE TO MOVE IN TO NICE COMMUNITIES AND BE PART OF IT.

AND EVERYONE WANTS THAT FOR THEMSELVES AND THEIR CHILDREN.

BUT IT IS A TREMENDOUS BARRIER TO ENTRY TO A VERY LARGE PERCENTAGE OF THE PEOPLE WHO LIVE AND WORK IN NEW JERSEY.

>> THERE IS A NEW EFFORT UNDER WAY TO HELP MORE RENTERS EVENTUALLY BECOME HOME OERNZ.

THE FEDERALLY BACKED MORTGAGE GIANT FANNIE MAE IS NOW CONSIDERING RENTAL PAYMENT HIS WHEN POTENTIALLY BUYERS APPLY FOR MORTGAGES.

FANNIE MAE ESTIMATES 17% OF RECENT APPLICANTS WHO WEREN'T RECOMMENDED FOR A LOAN WOULD HAVE ACTUALLY QUALIFIED IF RENTAL PAYMENTS WERE TAKEN INTO ACCOUNT.

WILL IT MAKE A DIFFERENCE?

WE TALKED ABOUT HOME FINANCING AND MORTGAGE RATES WITH CHRISTOPHER MAHRER THE CHAIRMAN AND CEO OF OCEAN FIRST BANK.

>> FOR SOME TIME MORTGAGE RATES HAVE REMAINED LOW.

THEY STARTED CREEPING UP THOUGH.

HOW MUCH WILL THAT IMPACT A BUYERS ABILITY TO SECURE A HOME.

>> SO FAR RATES STILL HOVER AROUND 3%.

SO IF WE LOOK OVER THE LONG-TERM THAT IS QUITE AN AFFORDABLE MORTGAGE.

BUT CERTAINLY IT IS UP.

IT IS UP, YOU KNOW, PROBABLY ABOUT HALF A POINT IN SOME CASES OFF EARLIER IN THE YEAR.

SO THAT WILL MAKE SOME DIFFERENCE.

WE DON'T THINK IT IT WILL MAKE A DIFFERENCE IN THE APPETITE FOR HOMES.

IN FACT OF THE SUPPLY OF HOMES AND THE AVAILABILITY OF HOMES FOR SALE, SEEMS TO BE DRIVING MUCH MORE THAN RESTRAINT.

>> WE'VE SEEN HOUSING PRICES RISE.

AND HONESTLY THAT PUTS HOMES OUT OF REACH FOR SOME NJ RESIDENTS.

WHAT ELSE CAN BE DONE ON THE FINANCING FRONT TO HELP PEOPLE OBTAIN MORTGAGES, WHEN THEY ARE WATCHING THOSE HOUSING PRICES CONTINUE TO RISE?

>> WHEN YOU THINK ABOUT EQUITY IN OUR HOUSING MARKETS AND THE WEALTH GAP IN THE COUNTRY, THE WEALTH GAP BETWEEN MINORITY AND NON MINORITY PEOPLE IN OUR COMMUNITY IS VERY SUBSTANTIAL.

AND ALMOST ALL OF THAT GAP IS REPRESENTED BY THE EQUITY YOU WOULD HAVE IN YOUR HOME.

SO WE REALLY HAVE SOME FOLKS THAT ARE MISSING OUT ON THIS OPPORTUNITY TO BUILD GENERATIONAL WEALTH THROUGH OWNING A HOME.

THERE ARE A NUMBER OF PROGRAMS, OCEAN FIRST HAS PROGRAMS, BUT ALSO THE FEDERAL HOME LOAN BANK OF NEW YORK PROVIDES FIRST-TIME HOME BUYER PROGRAMS, DOWN PAYMENT ASSISTANCE PROGRAMS THAT CAN HELP PEOPLE GET THE DOWN PAYMENT AND FIND THE OPPORTUNITY TO BUY A HOME.

WE'RE ALSO SEEING INCREDIBLE INNOVATION IN THE WAY WE'RE LOOKING AT QUALIFYING BORROWERS TO GET A MORTGAGE.

AND, YOU KNOW, AS MANY PEOPLE KNOW, THIS KIND OF CREDIT SCORE INDUSTRY OR THE FICO SCORE, CAN HAVE A HUGE IMPACT ON AVAILABILITY OF CREDIT.

AND THERE IS A LOT OF INNOVATION GOING ON IN THAT WORLD TO MAKE IT A LITTLE MORE BALANCED.

>> I DID READ AS WELL THAT FANNIE MAE IS NOW GOING TO LOOK AT RENTING HISTORY AS A WAY TO HELP DECIDE WHETHER A HOME BUYER, POTENTIAL HOME BUYER CAN QUALIFY.

WHICH SEEMS LIKE A POSITIVE.

I MEAN, THEY SAID THAT IT WOULD INCREASE THOSE WHO ARE ELIGIBLE TO GET MORTGAGES?

>> OH THIS IS ABSOLUTELY A STEP IN THE RIGHT DIRECTION.

YOU KNOW FOR YEARS, YOUR TIMELY PAYMENT OF MORTGAGE PAYMENTS GIVES YOU A GREAT CREDIT SCORE.

BUT YOUR TIMELY PAYMENT OF RENT DOES NOT.

SO THAT HAS BEEN EXCLUDED FROM YOUR FICO SCORE.

IT DOESN'T HURT YOU BUT IT DOESN'T HELP YOU.

AND ESPECIALLY FOR A FIRST-TIME HOME BUYER THAT MAY NOT HAVE AN EXTENSIVE CREDIT FILE WITH LOT OF OTHER, CAR LOANS AND THINGS LIKE THAT, THEY NEED THE OPPORTUNITY TO SHOW THEY HAVE BEEN RESPONSIBLE IN HANDLING THOSE KINDS O PAYMENTS.

>> I'M SURE POTENTIAL HOME BUYERS WOULD LOVE TO HEAR FROM A BANKER, IF YOU ARE THINKING ABOUT BUYING A HOME FOR THE FIRST TIME.

WHAT'S THE VERY FIRST STEP YOU SHOULD TAKE THAT PERHAPS WILL MAKE YOUR MORTGAGE APPLICATION GO THROUGH A LITTLE EASIER.

>> I THINK THE FIRST THING YOU CAN DO IS GET A GREAT EDUCATION ON THE PROCESS ON WHAT YOU WILL NEED ON HOW BANKS AND OTHER MORTGAGE LENDERS MAKE THAT DECISION.

IT IS VERY IMPORTANT TO MAINTAIN RECORDS AROUND PAYING THINGS LIKE RENT.

IF YOU ARE PAYING RENT ON A TIMELY BASIS, ESPECIALLY THOSE WHO MAY PAY RENT WITH, SAY, A MONEY ORDER.

KEEP COPIES OF THOSE RECEIPTS SO YOU CAN DEMONSTRATE YOU MADE THE PAYMENTS.

ALSO LOOK AT YOUR BUDGET.

LOOK HOW MUCH YOU CAN AFFORD.

TALK WITH YOUR LOCAL REALTOR.

THEY ARE GREAT SOURCES OF INFORMATION.

AND START THINKING ABOUT THE DOWN PAYMENT.

AND THE OTHER TRICKY PART OF THIS IS MAKING SURE THAT WHEN YOU BUY A HOME AND WHEN YOU GET APPROVED TO BUY A HOME, THAT YOU HAVE THE CUSHION TO BE ABLE TO STAY IN A HOME AS WELL.

SO IT IS NOT JUST ABOUT SCRAPING TOGETHER THE DOWN PAYMENT AND MAYBE GETTING A QUALIFICATION FOR A LOAN.

YOU WANT TO MAKE SEWER THAT EVEN AFTER YOU CLOSE YOU UNDERSTAND, YOU KNOW, THERE MAY BE UNEXPECTED EXPENSES.

WE USE A SIMPLE RULE YOU SHOULD HAVE PROBABLY SOMEWHERE IN THE RANGE OF SIX MONTHS WORTH OF PAYMENTS.

>> GOOD TO SEE YOU AGAIN.

THANK YOU.

>> THANK YOU, RHONDA.

>> AND THAT WRAPS UP OUR SHOW FOR THIS WEEK.

THANK YOU SO MUCH FOR WATCHING.

I'M RHONDA SCHAFFLER.

AND WE'LL SEE YOU NEXT WEEK.

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