>> THIS WEEK ON "NJ BUSINESS BEAT" -- PRICES STILL RISING FASTER THAN EXPECTED.

WE DIG INTO THE LATEST INFLATION NUMBERS AND WHEN WE COULD SEE SOME RELIEF.

PLUS, A HEALTH CARE WORKER SHORTAGE REACHING CRISIS LEVELS IN NEW JERSEY.

>> THE NEED IS REAL.

HEALTH CARE IS SO VITALLY IMPORTANT TO OUR ECONOMY.

>> WHAT LAWMAKERS ARE DOING TO INCENTIVIZE PEOPLE TO GET INTO THE MEDICAL FIELD.

>>> AND WE PUT NEW JERSEY'S HOUSING MARKET IN FOCUS FROM SALES COOLING DOWN TO RISING PRICES AND THE FIGHT TO CREATE MORE AFFORDABLE HOUSING.

THAT'S AHEAD ON "NJ BUSINESS BEAT."

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

>> HELLO.

I'M RHONDA SHAF HER.

THANKS FOR JOINING US THIS WEEK.

AFTER WRITING THE RENT CHECK, PAYING FOR GROCERIES AND SHELLING OUT MONEY TO COMMUTE FOR WORK, THERE'S NOT MUCH LEFT IN THE BANK FOR MOST OF US.

THIS IS THE STING OF INFLATION AND PRICES FOR ALL SORTS OF PRODUCTS AND SERVICES ARE STILL RISING SHARPLY.

INFLATION IS SO STRONG, THAT THIS WEEK, THE SOCIAL SECURITY ADMINISTRATION DECIDED TO GIVE RECIPIENTS AN 8.7% COST OF LIVING ADJUSTMENT, THE BIGGEST IN MORE THAN 40 YEARS, AND CONCERNS ABOUT INFLATION AND THE ECONOMY ARE FRONT AND CENTER IN MIDTERM CAMPAIGNS.

INFLATION IS MEASURED BY THE CPI INDEX, UP 8.2% OVER THE PAST YEAR.

FOOD PRICES ARE UP 11% AND THE PRICE OF GAS IS UP 18% SINCE LAST YEAR, ALTHOUGH WE DID SEE LOWER PRICES AT THE PUMP LAST MONTH.

MEAN TIME CORE INFLATION WHICH MEASURES PRICES OF EVERYTHING ELSE, IS ALSO MARCHING HIGHER BY 6.6%.

IT IS NOT A PRETTY PICTURE.

U.S. POLICYMAKERS LIKE TO SEE AN INFLATION RATE OF JUST 2%.

WHEN ARE THINGS GOING TO BECOME MORE AFFORDABLE?

EXPERTS CAN'T SAY FOR SURE WHEN INFLATION WILL BE STOPPED, EVEN WITH THESE RISING COSTS, NEW JERSEY'S ECONOMY HAS BEEN HOLDING UP.

THAT COULD BE ABOUT TO CHANGE, ACCORDING TO RUTGERS UNIVERSITY PROFESSOR JAMES HUGHES, DEAN EMERRYTIS OF THE SCHOOL >> IT'S NICE TO SEE YOU ON "NJ BUSINESS BEAT" AND TALK ABOUT AN ISSUE WE CAN'T SEEM TO ESCAPE THAT IS INFLATION.

THE LATEST NUMBERS OUT THIS WEEK SHOW MORE PAIN FOR CONSUMERS.

FIRST OF ALL, WHY ARE WE SEEING INFLATION CONTINUING TO SURGE AT THIS VERY STRONG PACE?

>> BASICALLY, EVEN THOUGH ENERGY COSTS ARE COMING DOWN, PAST INCREASES HAVE STARTED TO FILTER THROUGH THE ECONOMY AS A WHOLE.

EVEN THOUGH WE MAY SEE SLIGHTLY CHEAPER GAS AT THE GAS STATION AND THE LIKE, WE HAVE MANY OTHER FORCES PUSHING UP PRICES THROUGHOUT THE ECONOMY, SORT OF AN AFTER EFFECT OF WHAT WE HAD EARLIER IN THE YEAR.

WE STILL HAVE ISSUES WITH VERY, VERY STRONG JOB MARKET, EVEN THOUGH THE FEDERAL RESERVE HAS BEEN INCREASING INTEREST RATES IN ORDER TO COMBAT INFLATION.

WE KEEP ADDING JOBS AND AS WE KEEP ADDING JOBS WE KEEP ADDING TO DEMAND.

IT'S THOSE DEMAND FORCES THAT ARE PUSHING UP INFLATION ACROSS THE BOARD.

>> HOW DETRIMENTAL IS INFLATION TO NEW JERSEY RESIDENTS AND THE ECONOMY HERE?

WE KNOW TO START WITH, NEW JERSEY CAN BE AN EXPENSIVE PLACE TO LIVE.

>> THE NATION HAS RECOVERED 102% OF ITS EMPLOYMENT LOSSES.

NEW JERSEY HAS ACTUALLY ACCOUNTED FOR 103% OR RECOVERED 103%, SO WE'RE SLIGHTLY AHEAD OF THE NATION.

YES, WE ARE MORE EXPENSIVE, BUT WE'RE STILL APPLYING THE SAME PERCENTAGE INCREASES TO OUR BASIC COSTS IN THE STATE.

BUT WHAT IS HAPPENING IS, EVERY TIME WE HAVE HIGH INFLATION, EVERY TIME WE HAVE A RECESSION, IT'S THE LOWER INCOME SECTOR OF NEW JERSEY THAT GETS HIT THE WORST.

>> DO YOU THINK NEW JERSEY IS IN A RECESSION RIGHT NOW OR WILL BE SOON?

>> NOT RIGHT NOW.

OUR JOB GROWTH HAS BEEN UNUSUALLY STRONG, IT'S ACTUALLY BEEN STRONGER THAN THE NATION AS A WHOLE, SO THAT'S A REAL POSITIVE.

SO WE ARE SORT OF IN UNCHARTERED TERRITORY.

THERE ARE A LOT OF NEGATIVE INDICATORS OUT THERE IN TERMS OF GROSS DOMESTIC PRODUCT DECLINE, BUT WE STILL HAVE A VERY ROBUST, STRONG LABOR MARKET WHICH IS REALLY CARRYING THE ECONOMY RIGHT NOW.

>> THE LAST TIME WE SAW A SEVERE RECESSION, 2008-2009 PERIOD, NEW JERSEY WAS HIT HARDER BECAUSE IT WAS VERY MUCH CONCENTRATED IN THE FINANCIAL INDUSTRY TO START.

IS OUR ECONOMY IN BETTER SHAPE IN NEW JERSEY TO WEATHER A RECESSION SHOULD IT COME?

>> AS WE MOVE INTO 2023, WE'LL PROBABLY HAVE A RECESSION.

HOPEFULLY IT'S JUST A RECESSION AND NOT A FULL-BLOWN RECESSION, BUT IT IS COMING AND THERE'S NO WAY TO AVOID THAT GIVEN THE PACE OF INCREASES BY THE FEDERAL RESERVE IN TERMS OF INTEREST RATES AND THE LIKE.

BUT '07, THE GREAT 2007 TO 2009 RECESSION, REALLY WAS THE BURSTING OF THE CREDIT BUBBLE THAT EXISTED BETWEEN 2000 AND 2006.

SO IT WAS UNIQUELY CONCENTRATED IN THE FINANCIAL SECTOR.

THIS TIME IT'S GOING TO BE A BROAD-BASED RECESSION NOT TIED TO ANY UNIQUE EXCESS IN THE ECONOMY LINKED TO NEW YORK OR NEW JERSEY.

>> SO SOME POSITIVES FOR SURE EVEN AS WE NAVIGATE THROUGH WHATEVER IS AHEAD.

THANK YOU SO MUCH FOR YOUR TIME AND FOR JOINING ME.

>> MY PLEASURE.

>> COVID-19 CASE NUMBERS CONTINUE TO DECLINE IN NEW JERSEY, AND A NEW POLL FINDS MOST RESIDENTS FEEL THE PANDEMIC'S IMPACT ON THEIR DAILY LIVES IS OVER.

THE LATEST SURVEY BY MONMOUTH UNIVERSITY FIND 71% OF THE RESPONDENT OPPOSE BRINGING BACK COVID RELATED RESTRICTIONS LIKE SOCIAL DISTANCING OR FACE MASKS AND 25% SUPPORT REINSTATING THEM, AND SUPPORT FOR GUIDELINES HAS BEEN ERODING OVER THE LAST FEW MONTHS.

63% OF THOSE SURVEYED OPPOSE SHOWING PROOF OF VACCINATION AT WORK OR OTHER GATHERINGS.

THE POLL ALSO ASKS WHETHER RESIDENTS BELIEVE THE PANDEMIC IS OVER.

21% OF THE RESPONDENTS BELIEVE COVID IS GONE FOR GOOD, WHILE 50% SAY THE PANDEMIC WILL NEVER END.

MONMOUTH UNIVERSITY'S POLL WAS TAKEN IN LATE SEPTEMBER.

>>> HEALTH CARE WORKERS IN HIGH DEMAND IN NEW JERSEY, WITH CRITICAL OPENINGS GOING UNFILLED.

IT'S A SITUATION THAT WORSENED DURING THE PANDEMIC, ESPECIALLY IN THE FIELD OF NURSING.

NEW JERSEY IS EXPECTED TO FACE ONE OF THE MOST ACUTE NURSING SHORTAGES IN THE ENTIRE COUNTRY BY 2030 ACCORDING TO SYSTEM FROM THE FEDERAL GOVERNMENT.

DEMOCRATIC STATE LAWMAKERS THIS PAST WEEK INTRODUCED A PACKAGE OF BILLS THEY BELIEVE WILL ATTRACT WORKERS INTO THE HEALTH CARE INDUSTRY, INCLUDING WORKING WITH THE STATE LABOR DEPARTMENT TO TRANSITION UNEMPLOYED WORKERS INTO HEALTH CARE.

ASSEMBLYMAN LOU GREENWALD IS ONE OF THE SPONSORS.

>> WE ARE LOSING PEOPLE TO THIS REMARKABLE PROFESSION.

FOR NEW JERSEY, STATE OF 9.3 MILLION PEOPLE, THIS IS OUR LARGEST INDUSTRY.

500,000 OF OUR RESIDENTS ARE IN THIS WORKFORCE AND WHILE WE HAVE A LOT TO BE PROUD OF IN NEW JERSEY AND ONE OF THOSE THINGS BEING WE ARE BASICALLY AT FULL EMPLOYMENT, WHERE FOR EVERYONE WHO WANTS A JOB THERE ARE TWO JOB OPPORTUNITIES FOR THEM, IT HURTS AN INDUSTRY LIKE THIS.

THEY EQUATE TO A $44 BILLION ANNUAL INVESTMENT IN NEW JERSEY.

THAT'S HOW IMPORTANT THIS INDUSTRY IS TO US.

>> THE STATE WILL STEP IN AND OVERSEE OPERATIONS AT TRENTON WATERWORKS TO ENSURE SAFE DRINKING WATER SUPPLIES FOR MERCER COUNTY COMMUNITIES.

THE ANNOUNCEMENT THIS WEEK COMES SHORTLY AFTER THE MAYORS OF FOUR TOWNS NEAR TRENTON CALLED FOR A STATE TAKEOVER OF THE UTILITY WITH HAMILTON MAYOR JEFF MARTIN CITING YEARS OF GROSS INCOMPETENCE AT THE FACILITY.

ACCORDING TO THE MURPHY ADMINISTRATION THE TRENTON WATERWORKS SYSTEM HAS INTERMITTENTLY STRUGGLED TO MONITOR WATER QUALITY AND INVEST IN REQUIRED MAINTENANCE AND NEW INFRASTRUCTURE, AMONG OTHER THINGS.

THE MOVE COMES TWO YEARS AFTER THE STATE SUED THE CITY OF TRENTON FOR FAILING TO PAY FOR MANDATED CITY UPGRADES.

>>> HOUSING AFFORDABLIBILITY HAS LONG BEEN AN ISSUE AND A REPORT SAYS IMMIGRANTS ARE HARDEST HIT.

THE REPORT BY THE ADVOCACY GROUP MAKE THE ROAD NJ POINTS OUT NEW JERSEY IS THE SEVENTH MOST EXPENSIVE STATE IN THE NATION FOR RENTERS.

THE GROUP POLLED RESIDENTS IN THREE NEW JERSEY CITIES WITH THE HIGHEST PERCENTAGE OF RENTERS AND FOUND THAT SOME TENANTS ARE LIVING IN DANGEROUS AND UNHEALTHY CONDITIONS.

THEY'RE HAVING TROUBLE AFFORDING THEIR UNITS.

IN ELIZABETH, NEARLY 60% STRUGGLE TO PAY THEIR RENT, NEARLY 44% OF THE RENTERS IN PASSAIC FACE DIFFICULTIES IN PAYING RENT AND ALSO THE CASE FOR MORE THAN A THIRD OF THE RENTERS IN PERTH.

THINGS ARE GOING FROM BAD TO WORSE ACCORDING TO GERARDO WHO WORKS WITH MAKE THE ROAD.

>> RENTERS ARE IN A CRISIS THAT WAS TRUE BEFORE THE PANDEMIC AND IT'S ONLY BEEN EXACERBATED SINCE.

RENTS ARE INCREASING, SO IN EACH ONE OF THESE CITIES A MAJORITY REPORTED THAT THE LANDLORDS WERE INCREASING RENT EVERY YEAR AND THEY DON'T HAVE THE MEANS TO PAY THE RENT BECAUSE OF JOB LOSS, STAGNATION IN WAGES AND STRUGGLING TO PAY FOR RENT AND BASIC NEEDS TO PUT FOOD ON THE TABLE.

>> ON "NJ BUSINESS BEAT" WE'RE PUTTING THE COST OF HOUSING IN FOCUS.

HOUSING COSTS HAVE BEEN CLIMBING IN NEW JERSEY AND MORTGAGES MORE EXPENSIVE TOO.

MORTGAGE RATES JUMPED IN TWO DECADES.

AS OF THURSDAY THE 30-YEAR FIXED MORTGAGE WAS 6.92% WITH LENDERS OFFERING RATES WELL ABOVE 7%.

A YEAR AGO THE AVERAGE RATE WAS JUST OVER 3%.

IF YOU WANT TO BUY A SINGLE FAMILY HOME IN NEW JERSEY IT'S GOING TO COST YOU A HALF A MILLION DOLLARS ACCORDING TO THE LATEST STATS FROM NJ REALTOR, THAT'S THE MEDIAN SALES PRICE WHICH REPRESENTS AN 8.7% INCREASE THIS YEAR COMPARED TO THE SAME PERIOD LAST YEAR.

ONE REASON FOR THOSE HIGHER PRICES, LOW INVENTORY.

THE NUMBER OF NEW LISTINGS IS DOWN MORE THAN 20% COMPARED TO LAST YEAR, AND THE NUMBER OF SALES CLOSINGS IS DOWN 17%.

I TALKED ABOUT WHAT'S AHEAD FOR THE MARKET WITH JESSICA, A VICE PRESIDENT AT THE NATIONAL ASSOCIATION OF REALTORS.

>> JESSICA, FIRST OF ALL IT'S GREAT TO HAVE YOU ON "NJ BUSINESS BEAT," AND I'M INTRIGUED TO TALK TO YOU ABOUT THE HOUSING MARKET.

IT HAS BEEN QUITE A COUPLE YEARS.

LET ME TALK TO YOU FIRST ABILITY SOME RATHER BIG NEWS THIS WEEK, MORTGAGE RATES CONTINUE TO RISE AND THEY'VE HIT LEVELS NOT SEEN SINCE 2006.

HOW IS THIS GOING TO IMPACT THE HOUSING MARKET?

>> THE RECENT AND VERY STEEP RISE IN INTEREST RATES, IT REALLY HAS EXACERBATED POTENTIAL HOME BUYERS' BUYING POWER AND THEY'RE HAVING A DIFFICULT TIME ENTERING THE MARKET, ESPECIALLY FOR FIRST-TIME HOME BUYERS THAT DON'T HAVE THE HOUSING EQUITY TO RELY ON.

>> WE'VE HAD THIS SITUATION IN THE HOUSING MARKET WHERE WE'RE STILL SEEING, UNTIL RECENTLY, HOME PRICES RISING AND THEY'VE RISEN A LOT UP TO THIS POINT.

WILL WE SEE A TURNAROUND?

ARE THE BIG GAINS IN HOME PRICES OVER?

>> WE'RE STILL SEEING YEAR OVER YEAR GAINS IN HOME PRICES BUT WHAT'S IMPORTANT TO NOTE IS THAT THEY ARE MODERATING.

IN ALL HONESTY THAT'S A GOOD THING FOR POTENTIAL HOME BUYERS TRYING TO ENTER THE MARKET BECAUSE WE HAVE SEEN GAINS THAT WERE DOUBLE DIGITS IN THE COUNTRY INCLUDING NEW JERSEY AND THAT'S UP UNTIL THE MOST RECENT WE'RE STARTING TO SEE THEM NOW INTO A HEALTHIER PACE INTO A MODERATED PACE BECAUSE OF THIS RISE IN RATES, BUT IT DOESN'T MEAN THAT DEMAND IS WANING AN WE CERTAINLY DON'T ENOUGHLY.

>> -- SUPPLY FOR BUYERS TODAY.

>> WHAT IS DIFFERENT IN WHAT'S GOING ON IN HOUSING NOW THAN OTHER TIMES WHERE WE SAW A DISRUPTION IN THE ECONOMY?

I'M THINKING BACK, OF COURSE, TO 2008-2009 WHERE WE ACTUALLY HAD A COLLAPSE IN THE HOUSING MARKET.

IS THIS GOING TO BE DIFFERENT IF THE ECONOMY IS IN A RECESSION NOW OR HEADING INTO ONE?

>> WE'RE IN A VERY, VERY DIFFERENT MARKET TODAY THAN WHERE WE WERE IN 2008 AND THERE'S THREE MAIN REASONS WHY.

ONE IS, WE HAVE INCREDIBLY TIGHT LENDING STANDARDS.

IT'S DIFFICULT TO OBTAIN A MORTGAGE TODAY.

YOU HAVE TO HAVE A HIGH CREDIT SCORE, MONEY IN RESERVES TO BE ABLE TO OBTAIN A MORTGAGE.

THE SECOND REASON WHY IS WE HAVE SUBSTANTIAL UNDER BUILDING.

WE HAVE AN UNDER BUILDING HOMES IN THE U.S. FOR MORE THAN 15 YEARS AND WE DON'T HAVE THE HOUSING SUPPLY LIKE WE DID DURING THAT TIME PERIOD.

THE THIRD REASON WHY IS PURE DEMOGRAPHICS.

WE HAVE A WAVE OF YOUNG ADULTS ENTERING INTO HOUSEHOLD FORMATION AND WANT TO FIND A HOME AND THERE IS NOT THE AVAILABLE INVENTORY AND SENIORS, THEY'RE NOT NECESSARILY BUDGING FROM THEIR HOMES.

>> YOU MENTIONED IT'S A TOUGH TIME FOR POTENTIAL BUYERS.

IS IT STILL A SELLER'S MARKET?

>> WE'RE SEEING NEARLY A THIRD OF HOME SELLERS ARE RECEIVING MORE THAN ASKING PRICE, HOMES ARE MOVING IN 16 DAYS AND THEY'RE RECEIVING 2.5 OFFERS.

I WOULD SAY IT'S STILL A SELLER'S MARKET, BUT THEY'RE STARTING TO SEE EQUILIBRIUM.

>> THANK YOU FOR YOUR TIME.

>> THANK YOU.

>>> FEWER PEOPLE ARE APPLYING FOR MORTGAGES THESE DAYS.

IN FACT, APPLICATIONS ARE DOWN NEARLY 40% COMPARED TO A YEAR AGO, ACCORDING TO THE MORTGAGE BANKERS ASSOCIATION.

I SPOKE WITH STEVE GROSSMAN, PARTNER AT NJ LENDERS IN THE TRAITS HE'S SEEING.

>> GREAT TO TALK TO YOU ON "NJ BUSINESS BEAT."

>> PLEASURE MEETING YOU, RHONDA.

>> WE SEE THESE MORTGAGE RATES MOVE HIGHER.

WHAT IS THIS DOING TO THE MORTGAGE MARKET OVERALL AND LENDING IN NEW JERSEY IN PARTICULAR?

>> WE LOOK AT NEW JERSEY, YOU CAN'T PAINT THE ENTIRE STATE WITH ONE BRUSH BECAUSE NEW JERSEY'S MADE UP OF MANY LITTLE MICRO MARKETS.

IN GENERAL, THE VOLUME HAS REDUCED TREMENDOUSLY, BUT IT'S NOT NECESSARILY DRIVEN BY THE RATES.

ONE OF THE REASONS WE'RE DOING LESS BUSINESS IS, THERE'S STILL AN INVENTORY SHORTAGE ON HOUSING IN THE STATE OF NEW JERSEY.

SO IF THERE IS A WELL-PRICED HOME, YOU KNOW, IN A NICE TOWN, THERE'S STILL MULTIPLE BIDS.

SO THE LACK OF TRANSACTIONS FOR THE OVERALL INDUSTRY HERE IS REALLY DRIVEN BY THE HOUSING MARKET FIRST, NOT NECESSARILY THE MORTGAGE RATES.

THERE ARE A SEGMENT OF THE POPULATION WHO, FROM AFFORDABILITY PERSPECTIVE, HAS BEEN ELIMINATED OR MAYBE PUSHED OUT OF THE HOUSING MARKET FOR THE TIME BEING, BUT THERE'S STILL AN AMPLE NUMBER OF BUYERS THAT ARE PREPARED AND WILLING TO BUY EVEN WITH THESE RATES.

>> GIVEN WHERE THE RATES ARE, WHICH, OF COURSE, COMPARED TO WHERE THEY WERE A YEAR OR TWO AGO IT IS QUITE A BIT OF A STICKER SHOCK FOR PEOPLE, ARE YOU SEEING THE UNDERWRITING RIGHT NOW PREDOMINANTLY WITH FIXED RATE, 30-YEAR CONVENTIONAL MORTGAGES OR ARE THERE OTHER MORTGAGE PRODUCTS THAT PEOPLE ARE GRAVITATING TO AT THIS POINT?

>> THE LOWER THE LOAN AMOUNT PEOPLE ARE STILL TAKING FIXED RATE PRODUCT BUT WHEN YOU START GETTING INTO THE HIGHER LOAN AMOUNTS OR JUMBO LOAN, PEOPLE ARE CONSIDERING TAKING ADJUSTABLE RATE MORTGAGES.

WE'RE NOT GREAT FORECASTERS OR PREDICTORS BUT WHEN YOU LOOK AT RATES THAT THESE -- THEY'RE NOT HISTORICAL HIGHS, BUT THE HIGHEST WE'VE SEEN IN MANY YEARS, THERE'S A GOOD PROBABILITY THAT IN THE NEXT NINE TO 36 MONTHS PEOPLE HAVE AN OPPORTUNITY TO REFINANCE THEIR LOAN, SO THE JUMBO INVESTOR MERITS TAKING AN ADJUSTABLE AND A LITTLE BIT MORE, EXCUSE ME JUMBO BORROWER WILL TAKE ON THE RISK AND A LOT OF THESE LOANS ARE CONSERVATIVE AND THE RATES LOCKED IN FOR FIVE, SEVEN, TEN YEARS, 15 YEARS, SO A LOT OF THE POPULATION BELIEVES THAT WITHIN THE NEXT NINE TO 36 MONTHS, THEY'LL HAVE AN OPPORTUNITY TO REFINANCE THEIR MORTGAGE AND GET A LOWER RATE.

THE COMMON TERM USED OUT THERE, YOU MARRY YOUR HOME AND DATE YOUR MORTGAGE.

A LOT OF PEOPLE RECOGNIZE THAT IT'S A GOOD TIME TO BUY.

YOU STILL GET THE TAX BENEFITS AND PAYING DOWN DEBT >> THANKS SO MUCH FOR TALKING TO ME TO GIVE US THE INSIGHT OF WHAT'S GOING ON IN THE MARKET.

APPRECIATE IT STEW YOU'RE WELCOME.

THANKS FOR HAVING ME ON YOUR SHOW.

>> THE PATH TO HOME OWNERSHIP IS AN UPHILL BATTLE FOR MANY AND FOR BLACK AND BROWN RESIDENTS IT IS A MUCH TOUGHER FIGHT.

FOR THEM OWNING A PIECE OF THE AMERICAN DREAM CAN BE OUT OF REACH.

THEY HAVE AN ADVOCATE IN BRIAN WOODY WHITE THE CHIEF DIVERSITY AND INCLUSION OFFICER AT HOMEBRIDGE FINANCIAL SERVICES.

HE'S DETERMINED TO SHEDD SOME LIGHT ON THE HOME BUYING PROCESS FOR BLACK AND BROWN RESIDENTS HE SAYS ARE HANDICAPPED BY THEIR OWN LACK OF KNOWLEDGE AND INSTITUTIONAL RACISM AGAINST THE MINORITY COMMUNITY.

IT'S NICE TO HAVE YOU ON "NJ BUSINESS BEAT."

THANKS FOR YOUR TIME.

>> THANK YOU.

>> YOU ARE REALLY ON A MISSION TO CHANGE HOME OWNERSHIP, NOT JUST IN NEW JERSEY, BUT BEYOND.

WHY TODAY DO WE STILL SEE SUCH AN ISSUE WITH DISPARITY IN HOME OWNERSHIP IN THIS COUNTRY?

>> WELL, YOU KNOW, OVERALL RIGHT NOW, BLACK AND BROWN HOME OWNERSHIP IS AT ITS LOWEST LEVELS SINCE 1968, WHICH WAS BASICALLY THE CREATION OF THE FAIR HOUSING ACT.

TO BE HONEST WITH YOU, A LOT OF IT REALLY HAS TO DO WITH FIRSTS.

WE'RE TALKING ABOUT POOR COMMUNICATION IN THESE COMMUNITIES ABOUT REALLY THE REAL STEPS TO GETTING A HOME.

ON TOP OF THAT THERE'S AN EDUCATION PROBLEM AROUND THINGS LIKE PERSONAL FINANCE AND BUDGETING AND HOW TO PREPARE FOR A HOME.

ONE OF THE OTHER BIG PROBLEMS IS THE ISSUE OF INDIVIDUAL AND INSTITUTIONAL RACISM.

THAT'S REALLY A BIG PROBLEM RIGHT NOW THAT'S ALL OVER THE PLACE.

YOU KNOW, FOR EXAMPLE, YOU TAKE IN NEW JERSEY AND IN THE NORTHEAST, ONE COMPANY WAS FINED $24 MILLION FOR RED LINING AND ANOTHER WAS FINED $12 MILLION.

IF YOU TAKE A LOOK AT WHAT HUD IS DOING RIGHT NOW, HUD HAS HAD TO RELEASE A PROGRAM CALLED PAVE JUST TO DEAL WITH THE CONSTANT LOWERING OF VALUATIONS FOR BLACK HOMES IN NEIGHBORHOODS SIMILAR TO WHITE NEIGHBORS.

WHEN IT'S THAT BAD, YOU KNOW, IT SOUNDS SIMPLE ON THE SURFACE, BUT WHEN YOU'RE BLACK AND CONSTANTLY RUNNING INTO THESE PROBLEMS, IT GETS TIRING AND YOU DON'T WANT IT.

YOU SAY I'LL STAY IN THE APARTMENT I'M IN.

>> HOW SPECIFICALLY ARE YOU WORKING TO CHANGE THE EQUATION?

I KNOW YOU AND I TALKED ABOUT SOME OF THE EFFORTS THAT YOU REALLY WANT TO PUSH ON THE EDUCATION SIDE, GETTING THE WORD OUT ANY WAY YOU CAN?

>> RIGHT.

FOR EXAMPLE, AFFORDABLE LENDING IS A TERM YOU WILL HEAR A LOT.

AFFORDABLE LENDING ISN'T A PROGRAM.

IT'S REALLY A MARKETING NAME FOR INCOME-BASED PROGRAMS THAT ARE UNDERNEATH PROGRAMS LIKE FANNIE MAE AND FREDDIE MAC, BUT WHAT YOU HAVE TO UNDERSTAND IS INSIDE A MORTGAGE COMPANY YOU REALLY HAVE WHOLESALE, RETAIL AND SERVICING.

BURIED UNDER RETAIL ARE JUST INCOME-BASED PROGRAMS.

ONE OF THE THINGS I HAD TO DO FIRST IS INTERNALLY WITHIN HOMEBRIDGE, CREATE A CHANEL THAT IS FOR AFFORDABLE LENDING TO RAISE IT UP AS AN INCOME OPPORTUNITY FOR LOAN OFFICERS AS WELL AND DEAL WITH THAT.

SO THAT'S THE FIRST THING THAT I DID.

BUT THE SECOND THING THAT I'M WORKING ON RIGHT NOW IS A NEW RELEASE 2023, JUST BECAUSE OF THE ECONOMY AND EVERYTHING THE WAY IT IS RIGHT NOW CALLED FINALLY HOME, AND IT'S A NEW WAY TO APPROACH EDUCATION IN BLACK AND BROWN COMMUNITIES BECAUSE WE, OBVIOUSLY, WHAT'S BEEN DONE UP TO THIS POINT IS NOT WORKING.

>> I REALLY APPLAUD ALL THE EFFORTS YOU'RE DOING ON THE EDUCATION FRONT.

YOU ARE ALSO COMING UP AGAINST THE ECONOMY AND MORTGAGE RATES HAVE REALLY CLIMBED.

DO YOU WORRY THAT BLACK AND BROWN POTENTIAL HOMEOWNERS WILL BE SET BACK EVEN FURTHER, JUST GIVEN WHAT'S HAPPENING WITH RATES?

>> WE HAVE TO DO SOMETHING ON TWO FRONTS.

ONE, WHAT ARE WE GOING TO DO ABOUT THE SKYROCKETING PRICE OF HOMES AND THE INVENTORY.

EVEN IF THE INVENTORY COMES BACK AND THE HOMES COST TOO MUCH IF THE HOUSE COSTS TOO MUCH IT'S GOING TO BE OUT PRICED ABOVE WHAT YOU CAN GET WITH AN AFFORDABLE LOAN.

WE HAVE TO FIX THAT PROBLEM.

RIGHT NOW, AND I DON'T KNOW WHAT WE CAN DO ABOUT IT JUST YET, BUT YOU HAVE LARGE EQUITY COMPANIES BUYING ENTIRE COMMUNITIES OF HOMES AND THEY'RE FORCING PEOPLE TO RENT THOSE HOMES.

IF THAT CONTINUES, THAT MEANS THAT ANY ONE OF US TRYING TO MOVE TO A COMMUNITY THAT YOU WANT TO LIVE IN, YOU THINK THE HOUSE IS AVAILABLE AND YOU GO THERE AND YOU CAN ONLY RENT IT BECAUSE ONE OF THESE MASSIVE EQUITY FIRMS HAVE BOUGHT THE COMMUNITIES AND THERE'S LESS INVENTORY FORCING US TO RENT.

>> THANK YOU SO MUCH FOR YOUR TIME.

>> THANK YOU FOR HAVING ME.

VERY MUCH APPRECIATE IT.

>>> THIS WEEK, JERSEY CITY ANNOUNCED ITS INTENTION TO MOVE FORWARD ON THE FIRST BUILDING OF BAYFRONT, A WATERFRONT DEVELOPMENT PROJECT.

THE CITY'S PLANNING BOARD SIGNED OFF ON PLANS FOR A 210 UNIT RESIDENTIAL BUILDING WITH 35% OF THOSE UNITS SET ASIDE FOR AFFORDABLE HOUSING.

NEW JERSEY COMMUNITIES HAVE BEEN MANDATED TO PROVIDE AFFORDABLE HOUSING SINCE THE MOUNT LAUREL DECISION DECADES AGO, AND YET, THERE ARE STILL NOT ENOUGH PLACES FOR LOWER INCOME RESIDENTS TO LIVE.

I TALKED ABOUT THAT WITH ADAM GORDON, EXECUTIVE DIRECTOR OF THE FAIR SHARE HOUSING CENTER.

>> ADAM, AS YOU KNOW VERY WELL, WE HAVE A HUGE AFFORDABLE HOUSING PROBLEM IN NEW JERSEY.

MANY SAY IT'S A CRISIS.

IS IT GETTING WORSE?

>> I WOULD ABSOLUTELY AGREE IT IS A CRISIS AND GETTING WORSE.

WE'RE SEEING RECORD RENT INCREASES, EVEN DATA SHOWING JERSEY CITY IN THAT AREA HAS THE HIGHEST RENTS ANYWHERE IN THE COUNTRY.

I THINK WE'RE SEEING AN UNPRECEDENTED CRISIS.

IT'S BECAUSE IT'S A LOT OF PEOPLE WANT TO LIVE IN NEW JERSEY RIGHT NOW.

THE BAD NEWS, WE'RE TO THE BUILDING ENOUGH HOUSING TO KEEP UP WITH THAT.

>> THE ORGANIZATION YOU WORK FOR RECENTLY PUT OUT A REPORT BASICALLY LOOKING AT WHAT'S WORKED AND WHAT HASN'T WORKED WHEN IT COMES TO AFFORDABLE HOUSING IN NEW JERSEY.

WHAT NEEDS TO HAPPEN NOW TO SPUR SOME OF THAT DEVELOPMENT TO AT LEAST START CHIPPING AWAY AT THE PROBLEM?

>> RHONDA, WE'RE DEALING WITH A LOT OF OUTDATED REGULATIONS AND RULES ESPECIALLY AT THE MUNICIPAL LEVEL.

THERE'S LOTS OF OWNERS OF OLDER SHOPPING CENTERS, OFFICE PARKS, MORE THAN HAPPY TO USE THEM TO BUILD STARTER HOMES, AFFORDABLE HOUSING, AND IT'S NOT ALLOWED.

>> ARE YOU STILL SEEING SIGNIFICANT RESISTANCE IN SOME COMMUNITIES TO A MANDATE TO REQUIRE AFFORDABLE HOUSING IN NEW CONSTRUCTION, FOR INSTANCE?

>> WE ARE DEFINITELY SEEING RESISTANCE IN SOME COMMUNITIES.

THERE'S COMMUNITIES DOING A GOOD JOB AND HAVE MOVED THE BALL BOTH URBAN AND SUBURBAN COMMUNITIES, WE'VE SEEN A LOT OF IMPROVEMENTS IN SOME PLACES.

>> LET'S CIRCLE BACK ON REGULATIONS.

ARE YOU HAVING CONVERSATIONS WITH STATE LAWMAKERS ABOUT POTENTIAL CHANGES?

IS THERE ANY HOPE THAT THERE WILL BE SOME HEADWAY ON THIS IN THE LEGISLATURE THIS SESSION?

>> ONE GREAT BILL WE'VE BEEN SUPPORTING MAJORITY LEADER LOU GREENWALD, TROY SINGLETON HAVE BEEN PUSHING THIS BILL THAT WOULD REQUIRE THE MUNICIPALITIES APPROVE CONVERSIONS OF EXISTING OFFICE PARKS AND SHOPPING CENTERS TO APARTMENT BUILDINGS AND TOWNHOUSING WITH A REQUIREMENT OF 20% AFFORDABLE HOUSING AND BYPASS A LOT OF YEARS OF RED TAPE AND BLOCKING THINGS WE'RE SEEING FROM LOCALITIES.

>> DO YOU THINK MORE HAS TO BE DONE TO KEEP OUT PRIVATE INVESTORS FROM BUYING REAL ESTATE?

FOR INSTANCE, IF WE START TO SEE MORE DEVELOPMENT OF SHOPPING CENTERS AND THIS COMES TO BE, WHAT IF A BIG CORPORATION COMES IN AND BUYS IT AND REDEVELOPS IT, DON'T WE HAVE THE RENT INCREASE PROBLEM?

>> WE NEED RESTRICTIONS.

WE CAN'T HAVE IT BE WHOEVER CAN BUY PROPERTIES PRICE IT AT WHATEVER IT IS BECAUSE WE DO HAVE THE SUPPLY AND DEMAND IMBALANCE AND NEED SOME PROTECTIONS.

WE NEED TO LOOK AT THAT.

WE'RE LOSE SOMETHING EXISTING AFFORDABLE HOMES, ESPECIALLY THE AREAS THAT ARE GENTRIFYING AND HOW WE PROTECT THOSE HOMES AND AND FOR LONG-TIME RESIDENTS TO STAY IN THEIR COMMUNITIES.

>> THE REQUIRED SET ASIDE FROM MOUNT LAUREL SHOULD THAT BE RECONSIDERED?

SHOULD IT BE HIGHER NOW?

>> THERE'S PLACES IN WHICH IT CAN BE HIGHER AND WE HAVE SEEN THAT.

WE'VE SEEN PLACES YOU'RE SEEING 25% OR 30% SET ASIDES BUT IT DEPENDS ON THE DETAILS.

I THINK THAT IT'S EASIER TO DO THAT IN SOME PARTS OF THE STATE THAN OTHERS AND I DON'T THINK IN TERMS OF THAT, ONE SIZE FITS ALL SOLUTION IS GOING TO WORK.

>> IT'S BEEN VERY GOOD GETTING CAUGHT UP WITH YOU TO SEE THE LATEST ON THE AFFORDABLE HOUSING ISSUE.

THANK YOU FOR YOUR TIME.

>> THANK YOU SO MUCH.

HOPEFULLY WE CAN WORK TOWARDS SOMETHING THAT WILL EASE THE HOUSING CRISIS.

>> THAT DOES IT FOR US THIS WEEK.

SUBSCRIBE TO OUR NJ SPOTLIGHT NEWS CHANNEL TO GET ALERTED WHEN WE POST NEW EPISODES AND CLIPS.

COMING UP NEXT WEEK WE EXPLORE HOW TO STRIKE THE RIGHT WORK-LIFE BALANCE EVEN IF IT MEANS FINDING A NEW JOB.

I'M RHONDA SCHFALLER ENJOY THE