Climate risks for housing, office demand rises: Asking for a Trend
On today's episode of Asking for a Trend, Host Josh Lipton breaks down some of the top stories and key themes from the trading day. As Hurricane Milton barrels toward Florida, First Street and Zillow (Z) are teaming up to create a first-of-its-kind rating system to assess climate risks on for-sale properties. The monitored risks include heat, wind, and most importantly, flooding. First Street head of climate implications Jeremy Porter explains, "Our mission has always been to quantify and communicate climate risk, and when we first started about eight years ago, there were really very few resources that people had for understanding what their climate risk looked like and the resources that did exist for things like FEMA zones... So what we ended up doing was creating our own hazard models at the property level so people could understand not only what the risk is today, but what the risk is into the future, what the risk is to their specific property, and how that might impact their pocketbooks." Yahoo Finance Markets and Data Editor Jared Blikre breaks down his top takeaways from the trading day. The market is seeing mixed risk signals as the S&P 500 (^GSPC) closed just shy of a fresh record high on Tuesday while ten-year bond yields (^TNX) closed above 4%. Meanwhile, the risks associated with a no-landing scenario for the US economy have been reignited after September's jobs report came in much hotter than expected. The AI trade has also bounced back, as Nvidia (NVDA) closed close to its record high. The US office market reached an important milestone in the third quarter as the overall availability rate peaked and began declining for the first time in more than five years. JLL CEO of Americas Markets John Gates explains, "It's been slowly recovering for some time now, maybe even 18 months. We saw an acceleration, though, in the third quarter and some of the statistics start to look pretty good. Total leasing volumes in Q2 and Q3 were about 86% of pre-pandemic levels, which is the highest that it's been." He identifies New York as a major active market, and also points to the following cities as expanding markets: Dallas, Texas; Nashville, Tennessee; Phoenix, Arizona; and Atlanta, Georgia. Recession concerns have been prevalent on Wall Street, but key economic indicators, such as the unemployment rate, are not aligning with historical recession trends. Market Domination Anchor Julie Hyman breaks down the details, exploring the relationship between unemployment rates typically seen during recessions and how the current situation differs. This post was written by Melanie Riehl
