(Bloomberg) — The U.S. economic recovery is wildly uneven. More than 13 million Americans are unemployed. At the same time, many others have been able to work from home and some are actually richer — thanks to a surging stock market and housing boom.
This conflict has been dubbed the “K-shaped” recovery. And it’s exacerbating racial, wealth, social and gender disparities, according to Peter Atwater, an adjunct lecturer at William and Mary, a university in Virginia, who has popularized the term.
It’s also compounding the challenges policy makers face as they consider additional stimulus measures to bolster growth.
Here are a dozen charts that show the divergence — or what Atwater describes as “stacked inequity on one side and stacked privilege on the other.”
Top of K
High-paid workers have fared much better than their low-wage counterparts. At the height of job losses in April, employees in financial and information services — bankers, real estate agents, telecommunications professionals — saw some of the fewest job losses.
These industries have recovered faster and typically pay more, with information workers making $1559 per week on average before the pandemic compared to $981 for all private-sector workers.
Bottom of the K
The leisure and hospitality industry has borne the brunt of pandemic shutdowns, with half of jobs in the sector vanishing in April.
Since then, only half of those jobs have come back. The industry employs one in nine people in America and pays some of the lowest wages in the country.
The Consumer
Job losses often lead to a slowdown in consumer spending, which makes up 70% of the economy. But at the start of the pandemic consumption remained steady, bolstered by unemployment insurance payments that allowed those without a job to keep shopping.
Those extra funds have since dried up and Congress is at a standstill in their talks to provide additional aid. As wealthy Americans have become more confident about the economy, the country’s lowest earners have become less optimistic as their jobless benefits shrink.
Americans with the lowest wages are having trouble affording normal household expenses.
Housing Market
The real estate market is surging, especially for affluent buyers and sellers as urbanites relocate to more-spacious suburbs amid the pandemic. But this hasn’t helped the two-thirds of low-income Americans, who don’t own their home.
And for those homeowners who have lost a job or are struggling, they are defaulting on their mortgages at the fastest pace since the previous financial crisis. Foreclosures are also seeing a sharp rise, despite government efforts to keep people in their homes during the pandemic.
Although President Donald Trump imposed a ban on evictions through the end of the year, it’s really delaying a ticking time bomb. Rent payments will still be due at some point and may be untenable for people who are still unemployed.
Stocks Surge
Record stock gains and surging housing prices have come amid unprecedented stimulus from the Federal Reserve, whose near-zero interest rates and bond purchases have kept mortgage rates low and encouraged investors to buy equities.
The rise in stocks has been propelled by companies that are benefiting from the pandemic, like Amazon.com Inc., and hurting companies like Macy’s Inc., which rely on in-store shopping. It’s also disproportionately impacting women and business owners of color.
The surge in equities, also driven by tech companies like Apple Inc. and Tesla Inc., is mostly benefiting America’s wealthy and top-earners who have extra income to invest and retirement accounts through their employers.
America’s richest people have seen their fortunes balloon, with Tesla’s Elon Musk, for example, at one point last month tripling his wealth to more than $100 billion.
Race, Gender
The pandemic has widened inequalities between men and women, and among races. More women have lost their job than men and fewer of them are returning to work as schools and daycare centers remain closed.
A decade of progress in the labor market for Black Americans has been erased, and this group is also dying from Covid-19 at twice the rate of White Americans. Latino Americans are nearly three times as likely to contract the virus compared to White people, according to the Centers for Disease Control and Prevention.
Corporate ‘Monopsony’
Corporate America has more monopolies, which has amplified racial and wealth inequalities during the pandemic. As more businesses consolidate, profits have surged for corporations but those proceeds aren’t trickling down to workers.
The net worth of the top 5% of households almost tripled between 1983 and 2016. A term some economists use to describe these companies’ influence over workers and wages is monopsony.
Monopsony has caused problems in industries where one large company overwhelmingly dictates employee earnings. That’s resulted in stagnant wages, especially for the lowest-income workers. The federal minimum wage, at $7.25, hasn’t kept up with inflation let alone the pace of house prices.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
