<

Extra Space in Your Community

Posts Tagged ‘unemployment’

Why is Everyone So Pessimistic?

Saturday, July 10th, 2010

The Denver Post reported last week that mortgage rates have fallen to their lowest point in 50 years. Doesn’t that mean they have fallen to well below pre-recession rates? The last time mortgage rates were this low was in the 1950s. But experts say that the falling mortgage rates will not improve the housing market much — too many people have either lost their jobs or are afraid that they will lose their jobs — so they are afraid to commit to a mortgage.

Well, what do the experts know, anyway? In March John Koskinen, the interim chief executive for Freddie Mac, was quoted in the Post saying that mortgage rates were about to bottom out — he said they had gone as low as they were going to get, and people should buy houses while they could get those rates. Well, he was wrong — mortgage rates dropped even further, to the rates they are at today.

But that isn’t the end of the pessimism we saw in last week’s Post. Yesterday an article picked up from the Associated Press argued that even though the number of unemployment applications is beginning to drop, and even though first time applications for unemployment benefits are at their lowest level since early May, we shouldn’t get too excited — it’s probably not a trend.

Maybe, but what if it is a trend? What that says to me is that the people who aren’t buying new homes now because they don’t have jobs may feel differently in another year or so, when they have gotten back to work and have another year of job history under their belts.

Why do we assume that things are going to get worse and not better? In Denver, of all places — where did our confidence go? What ever happened to that old American tradition called hope?

Surviving the End of Unemployment Benefits

Friday, May 14th, 2010

Just when it was starting to seem as though the economy was getting better, for nearly five million Americans who will lose their unemployment benefits by June, things are getting much, much worse. Last week the Denver Business Journal reported that nationwide, unemployment went up to 9.9 percent in April. Nearly one out of every ten American workers who are actively seeking work are currently jobless. The statistics are not broken down by state yet, but in Colorado in March, the unemployment rate was 7.9 percent.

As of April 1, around 6.7 million Americans, or 46 percent of jobless Americans, had been out of work for 27 weeks or longer — almost seven months. Another 9.2 million Americans were working part-time when they would prefer to work full-time. That leaves these Americans with just two options: find other ways to generate income, or spend less. (Or move to a place like Denver, which has the nation’s third strongest economy compared with other metro areas, the DBJ told us on Wednesday.) Here is what some Coloradans are doing to bring in some extra cash or to reduce the amount they spend:

  • Trade goods or services using a barter system. You may know people you can barter with — for example, frugal parents have long traded babysitting nights with each other. Some even form neighborhood babysitting cooperatives. But you can also log on to one of the new bartering websites, such as the Colorado Barter Exchange. You can also try the Colorado Barter Directory, or place an ad on Craig’s List noting the goods or services that  you would like to barter.
  • Empty a room in your home, and offer it for rent, or empty your garage, and rent out the space for parking. Some families are also finding that they are left with no other choice but to downsize to a smaller home. If that is the situation you are in, you may want to put some of your belongings into a self storage unit, or, if you can, sell some things on Craig’s List or eBay to earn a little cash.
  • Start a small business. Some entrepreneurs have started businesses in order to create full-time jobs for themselves. Others start businesses that can act as part-time jobs, or businesses that use website advertising traffic to create small amounts of residual, passive income. You can add advertising to your website using Google Adsense.
  • Sell electronic content through a website. Some people earn money writing blog entries. You could also try writing a do-it-yourself ebook and selling it online. If writing is not your cup of tea, you could try venturing into video or audio content.
  • Look for short-term freelance work using websites like Guru or Elance. These websites list assignments for people with many different types of skills, from sales and marketing, to graphic design, to engineering…you name it.
  • Register for temporary work with a temporary agency, such as Kent Staffing of Denver.

Good luck!

Inept Colorado Aid Programs Make Homeless Problem Worse

Friday, February 12th, 2010

It’s not easy to be down on your luck in Colorado these days.

  • Yesterday, the Colorado Springs City Council decided to take aim at the homeless, by banning camping within city limits. Knowing that homeless people are not always equipped by REI, they made the language of their resolution nice and broad — too broad, as it turns out. Council member Tim Gallagher (the only council member to vote against the resolution) commented later, “If you throw a blanket out on grass at a park and sit on it, you’re camping.” Colorado Springs city attorneys are looking at ways to revise the language. But the problem is, it’s hard to design a law to target homeless people — and that’s really what the Colorado Springs City Council is trying to do. If you make the language too specific, it ends up not applying to the homeless because they don’t have tents and camp stoves. If you make the language too broad, then suddenly picnicking families, students out studying, and workers taking a quick break to get some fresh air all find themselves in violation of the law. But my point is, you can’t help the homeless by writing new laws. You have to find them housing. The fact is, city officials say there are between 300 and 500 homeless people in Colorado Springs, but homeless services agencies think there are only about 175 beds in Colorado Springs homeless shelters.
  • At the same time, the state’s computer system has been having problems turning over money that is supposed to be used to pay unemployment benefits. On Monday, 42,000 Coloradans who were supposed to receive unemployment benefits were told that they would have to wait at least until Tuesday, because a computer glitch had caused Chase to deposit only enough benefits for 8,000 unemployed people. Maybe a day doesn’t seem like a long time to wait. But it is a very long time when you have children to feed, or when you’ve accidentally overdrawn your bank account trying to pay bills, or when you have a family member with a prescription that needs to be filled right away. The whole reason we have unemployment benefits is that people who don’t have jobs are in economically precarious circumstances. They are in danger of becoming homeless at some point. Besides — why should Chase receive the interest from keeping all that money in the bank another day? I think Chase should donate whatever residual income it earned from the glitch to housing programs for the homeless.
  • Not only are unemployment benefits delayed, but so are food stamps and Medicaid. In 2008, Colorado’s food stamp program was rated as worst in the nation. Colorado came in 52nd, behind Guam. And Colorado is still out of compliance with federal guidelines that say food stamps must be provided within 30 days after a person applies and that Medicaid has to be provided within 45 days. In October, 19 percent of new food-stamp applications were delayed, and 18 percent of new Medicaid applicants didn’t receive their benefits either. According to a Denver Post article, state officials blamed the delays on their computer system. Again with the computer glitches!

These might not seem like matters that would affect the self-storage industry, but they are. We are not supposed to let people live in self-storage units. It can be heartbreaking to have to tell a tenant that in the middle of winter, though. If we have to tell people they can’t sleep here, then I for one want to know that there are decent programs we can refer them to, programs that will make it possible for families to eat, get needed medical care, and have a roof over their heads at night. I don’t want to think that people are going to have to wander the streets or live in their car on a cold February night. I still say Colorado is the best place in the world to live. But let’s make it livable for those who are less fortunate — people who deserve a safe place to sleep just as much as anyone else, but who, like so many people right now, are just — down on their luck.

Denver Commercial Real Estate Market on Slow Upswing

Friday, January 8th, 2010

I knew that if we hung in there a little longer, Denver would start to ease out of the recession. According to today’s Denver Business Journal, that is exactly what’s happening.

According to Paula Moore of the DBJ, L.A. real estate brokerage firm Grubb & Ellis has had its eye on Denver. L.A.’s brokers are predicting that Denver’s commercial real estate market will slowly start to recover this year — ahead of the national commercial real estate market, which may not start to come back up until 2011. That is not much consolation for homeowners who are still struggling with the residential real estate market, but it is good news for entrepreneurs like those of us in the self-storage industry. So cheer up, homeowners, because if business starts to improve, there should eventually be more buyers out there with money to buy your homes.

If entrepreneurs and investors start buying and renting more commercial space in Denver for businesses, that tells me two things. First, consumers must be spending money in Denver again — or there would be no demand for these new businesses.  Secondly, those new businesses will bring jobs, so Denver’s unemployment rate should go down — and the newly employed will start spending money again, too. These have to be good things for Denver’s economy. We’re still in the early days…but we are getting there.

Denver entrepreneurs, investors, operators of self-storage facilities and other small businesses, and all of our customers who want us to continue to be here providing excellent service — let’s all breathe a sigh of relief. Better times are on their way.

And, to all of those businesspeople out there who are investing in commercial real estate in order to start or expand a business — bear in mind that if you need a place to store excess inventory, supplies, and equipment, you can always come to Extra Space Storage.

Contact Privacy Policy Sitemap Where to Find Us