'A Cheaper Roof Over Your Head During the Pandemic?' diff viewer (4/5)

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A Cheaper Roof Over Your Head During the Pandemic?	A Cheaper Roof Over Your Head During the Pandemic?
2020-06-09 00:45:15 UTC	2020-06-10 01:20:13 UTC (1 day later)
We take for granted that homes are either owned or rented, but that could soon change, and pandemic-driven economic pain could accelerate the process.	We take for granted that homes are either owned or rented, but that could soon change, and pandemic-driven economic pain could accelerate the process.
Before the pandemic, homeownership was already slipping out of reach for many in America’s expensive coastal cities. Hybrid arrangements have been emerging that occupy a middle ground between owning and renting — trying to combine the advantages of both.	Before the pandemic, homeownership was already slipping out of reach for many in America’s expensive coastal cities. Hybrid arrangements have been emerging that occupy a middle ground between owning and renting — trying to combine the advantages of both.
It’s an idea that could bring the benefits of owning a home back within reach, especially for millennials struggling to get on the homeownership ladder.	It’s an idea that could bring the benefits of owning a home back within reach, especially for millennials struggling to get on the homeownership ladder.
It’s also an idea that could gain momentum during the pandemic. As economic hardship deepens, investment capital could help desperate homeowners avoid selling their homes while providing investors with the bargain of a century.	It’s also an idea that could gain momentum during the pandemic. As economic hardship deepens, investment capital could help desperate homeowners avoid selling their homes while providing investors with the bargain of a century.
But hidden within the idea is a danger: It might work far better early on than in the long run.	But hidden within the idea is a danger: It might work far better early on than in the long run.
Instead of just lending people money to buy homes, companies are now co-investing with them — in other words, taking an ownership stake in the home. This can take on many different forms, including offering down payment assistance or providing a substitute for home equity loans.	Instead of just lending people money to buy homes, companies are now co-investing with them — in other words, taking an ownership stake in the home. This can take on many different forms, including offering down payment assistance or providing a substitute for home equity loans.
The underlying principle is the same: A home buyer or existing homeowner receives cash in exchange for a share of the ownership of the home. The co-investor then (1) shares in the home’s rising or falling value (often disproportionately to their ownership), and (2) sometimes requires a flow of monthly payments from the occupant.	The underlying principle is the same: A home buyer or existing homeowner receives cash in exchange for a share of the ownership of the home. The co-investor then (1) shares in the home’s rising or falling value (often disproportionately to their ownership), and (2) sometimes requires a flow of monthly payments from the occupant.
When monthly payments are required, they are akin to dividends on the co-investor’s share in the home, and they also conveniently resemble both rent payments and interest payments on a mortgage. In some cases, a portion of the payment is allocated toward increasing the occupant’s equity in the home, akin to principal payments on a mortgage but governed by different math.	When monthly payments are required, they are akin to dividends on the co-investor’s share in the home, and they also conveniently resemble both rent payments and interest payments on a mortgage. In some cases, a portion of the payment is allocated toward increasing the occupant’s equity in the home, akin to principal payments on a mortgage but governed by different math.
For the time being, this arrangement is mostly happening alongside traditional financing of the home. In other words, companies are taking an ownership stake in homes bought with cash or with a mortgage.	For the time being, this arrangement is mostly happening alongside traditional financing of the home. In other words, companies are taking an ownership stake in homes bought with cash or with a mortgage.
But at least one firm, San Francisco-based Haus, is already co-investing most of a home’s value, eliminating the need for a mortgage altogether. It requires monthly payments that can dial up or down the occupant’s ownership share, or keep it steady. And it allows people to roll over the co-investment with new terms at 10-year intervals. (The current practice is to require people to sell or refinance the home after several years so the co-investor can cash out).	But at least one firm, San Francisco-based Haus, is already co-investing most of a home’s value, eliminating the need for a mortgage altogether. It requires monthly payments that can dial up or down the occupant’s ownership share, or keep it steady. And it allows people to roll over the co-investment with new terms at 10-year intervals. (The current practice is to require people to sell or refinance the home after several years so the co-investor can cash out).
Setups in which the occupant never attains full ownership amount to a new way of financing shelter — an owner-renter hybrid. The occupant of the home, without fully owning the property, simultaneously enjoys some of the benefits of homeownership and rental living. Specifically, occupants have some of the security of a homeowner. They need not worry about the landlord’s renewal of the rental contract or about rising rents for an extended period — nor must they come up with funds to ultimately acquire ownership, such as principal payments on a mortgage.	Setups in which the occupant never attains full ownership amount to a new way of financing shelter — an owner-renter hybrid. The occupant of the home, without fully owning the property, simultaneously enjoys some of the benefits of homeownership and rental living. Specifically, occupants have some of the security of a homeowner. They need not worry about the landlord’s renewal of the rental contract or about rising rents for an extended period — nor must they come up with funds to ultimately acquire ownership, such as principal payments on a mortgage.
The idea of an owner-renter hybrid isn’t entirely novel. It resembles rent-to-own arrangements, including those of some high-profile new start-ups, as well as some more esoteric financial arrangements for shelter that have cropped up in the past, such as shared appreciation mortgages. In fact, if occupants keep their ownership share steady, it achieves the same end as a very long-term rental contract.	The idea of an owner-renter hybrid isn’t entirely novel. It resembles rent-to-own arrangements, including those of some high-profile new start-ups, as well as some more esoteric financial arrangements for shelter that have cropped up in the past, such as shared appreciation mortgages. In fact, if occupants keep their ownership share steady, it achieves the same end as a very long-term rental contract.
This hybrid also has much in common with rent control. Like rent control, it guarantees a predictable flow of housing costs for the long run and affords the resident protections — from eviction, for example — that provide a degree of permanence.	This hybrid also has much in common with rent control. Like rent control, it guarantees a predictable flow of housing costs for the long run and affords the resident protections — from eviction, for example — that provide a degree of permanence.
That’s no coincidence. The recent resurgence of rent control and the own-rent hybrid both address people’s need to replace homeownership with more affordable forms of secure shelter.	That’s no coincidence. The recent resurgence of rent control and the own-rent hybrid both address people’s need to replace homeownership with more affordable forms of secure shelter.
Enter the pandemic, and the owner-renter hybrid may suddenly appeal to people well beyond the expensive coastal cities. Many homeowners without work may have to sell their homes, even on unfavorable terms. The hybrid arrangement would grant such a homeowner the option of selling equity in the home piecemeal to co-investors for cash, while continuing to reside in it. For many, that would be a much better outcome than the alternative.	Enter the pandemic, and the owner-renter hybrid may suddenly appeal to people well beyond the expensive coastal cities. Many homeowners without work may have to sell their homes, even on unfavorable terms. The hybrid arrangement would grant such a homeowner the option of selling equity in the home piecemeal to co-investors for cash, while continuing to reside in it. For many, that would be a much better outcome than the alternative.
It’s also one that would leave investors pleased, with a previously unimaginable stake in owner-occupied housing, acquired on favorable terms. If investors execute their business wisely, they could even pose as saviors, having offered desperate homeowners a lifeline that spared them from catastrophe. But can any such profiting in the aftermath of a pandemic avoid ultimately being judged as predatory? The hybrid arrangement could easily devolve into taking advantage of homeowners in distress, and even the most ethical investors may feel compelled to participate for fear of missing out on a land grab.	It’s also one that would leave investors pleased, with a previously unimaginable stake in owner-occupied housing, acquired on favorable terms. If investors execute their business wisely, they could even pose as saviors, having offered desperate homeowners a lifeline that spared them from catastrophe. But can any such profiting in the aftermath of a pandemic avoid ultimately being judged as predatory? The hybrid arrangement could easily devolve into taking advantage of homeowners in distress, and even the most ethical investors may feel compelled to participate for fear of missing out on a land grab.
Fast forward past the pandemic and its aftermath: Is the new hybrid the solution for the housing affordability crisis in America’s expensive coastal cities?	Fast forward past the pandemic and its aftermath: Is the new hybrid the solution for the housing affordability crisis in America’s expensive coastal cities?
It could certainly help ease the pressure for potential buyers. As long as most people prefer to purchase homes outright, principal and all, those willing to go the hybrid route will have an advantage. They will need to pay only interest-like dividends to their co-investors, without having to buy out the co-investor’s share — the equivalent of not paying mortgage principal.	It could certainly help ease the pressure for potential buyers. As long as most people prefer to purchase homes outright, principal and all, those willing to go the hybrid route will have an advantage. They will need to pay only interest-like dividends to their co-investors, without having to buy out the co-investor’s share — the equivalent of not paying mortgage principal.
You might wonder: Wouldn’t people lose out by not participating in America’s biggest forced-saving plan ever, the mortgage? The answer is probably yes, inasmuch as the forced commitment to save is the key.	You might wonder: Wouldn’t people lose out by not participating in America’s biggest forced-saving plan ever, the mortgage? The answer is probably yes, inasmuch as the forced commitment to save is the key.
Nevertheless, fans of the new arrangement would justifiably argue that hybrid owner-renters could invest their savings relative to mortgage costs in whatever they choose, including the acquisition of other residential real estate (for example, in the form of tiny fractions of many other homes).	Nevertheless, fans of the new arrangement would justifiably argue that hybrid owner-renters could invest their savings relative to mortgage costs in whatever they choose, including the acquisition of other residential real estate (for example, in the form of tiny fractions of many other homes).
But that’s not how things are likely to play out. Instead of investing those savings, people might be tempted to divert them into greater housing expenditure, by securing more expensive homes than they could otherwise afford to buy.	But that’s not how things are likely to play out. Instead of investing those savings, people might be tempted to divert them into greater housing expenditure, by securing more expensive homes than they could otherwise afford to buy.
It’s not just about individuals’ choices. A mass participation in owner-renter hybrids in the expensive coastal cities would have unintended consequences for the way in which home prices evolve, and for broad housing affordability.	It’s not just about individuals’ choices. A mass participation in owner-renter hybrids in the expensive coastal cities would have unintended consequences for the way in which home prices evolve, and for broad housing affordability.
Updated June 5, 2020	Updated June 5, 2020
	So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.	A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.	The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.	Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.	Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.	States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.	Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.	Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)	If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.	Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.	The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.	If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.	If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
It’s helpful to understand that these hybrids essentially increase the demand for housing. When owner-renters use their savings relative to mortgage costs to obtain better homes, they squeeze more buying power out of their monthly housing budgets by drawing greater amounts of investors’ capital into the housing market. That means more money going after housing.	It’s helpful to understand that these hybrids essentially increase the demand for housing. When owner-renters use their savings relative to mortgage costs to obtain better homes, they squeeze more buying power out of their monthly housing budgets by drawing greater amounts of investors’ capital into the housing market. That means more money going after housing.
If owner-renter hybrids take hold, we should expect Wall Street to own a bigger slice of America’s neighborhoods (not just rentals). And we should expect home prices to gradually shift from familiar momentum-driven patterns — based on traditional markets of home trading among people — to the more erratic and volatile behavior of financial markets.	If owner-renter hybrids take hold, we should expect Wall Street to own a bigger slice of America’s neighborhoods (not just rentals). And we should expect home prices to gradually shift from familiar momentum-driven patterns — based on traditional markets of home trading among people — to the more erratic and volatile behavior of financial markets.