THE WEEK IN REVIEW

Welcome to my weekly newsletter featuring a personal note on the ever-evolving world of real estate along with a few newsworthy updates. Enjoy!

THE GILDED AGE

I LOVE this series on HBO.

The GILDED AGE was a moment in our history between the 1870's to around 1900 known for rapid economic growth and industrialization.

Then we had a period following World War II, roughly 1946 to the mid-1960s, often called the GOLDEN AGE of economic prosperity, manufacturing strength, and national identity.

It's easy to romanticize the past. Lest we lose perspective on the many ways in which we have PROGRESSED as a country since the post-war "Golden Age" or the 19th century "Gilded Age," here are a few facts to consider:

1. Life Span: Average life expectancy has nearly doubled since 1900, and has increased from around 68 years in 1950 to over 78 years today.

2. Electricity: Only 3% of US homes had electricity in 1900. 10% of households had no electricity in 1950.

3. Taxes: The highest U.S. income tax rate in 1950 was 87%!! Today it is 37% for single filers with taxable income over $626,350 and $751,600 for married couples filing jointly.... less than half.

4. Communication: Instantaneous communication via cell phones and the internet is standard compared to.... horse and buggy, the postal service, telegrams, pagers, fax machines, "mobile" phones... a tectonic change from pretty much everything else.

5. Travel: Cars, planes, and other forms of mass transit have made travel faster and more accessible to all Americans. 60% of US citizens owned a car in 1950. Today 92% do. 74% of Americans will fly this year. In 1950 it was just 2%.

6. Education: In 1950, about 34% of U.S. citizens aged 25 and older had completed four years of high school or more. In 1900 it was only 7%. Today it's around 86%.

7. Citizens' Rights: The early 1900s offered very few rights to women and minorities. Full enfranchisement was not achieved until the Voting Rights Act passed in 1965.

Women could not get credit cards in their own name until 1974.

8. Pollution: Cities in 1900 were far more polluted with visible contaminants like thick smoke, soot, and raw sewage. While modern cities produce greater total volumes of more dispersed, invisible pollutants like carbon dioxide and greenhouse gases, we have witnessed a dramatic reduction in many of the most dangerous pollutants.

9. Home Sizes and Amenities: The average US home is about 250% larger than in 1900. In 1950 the average home size was 983 SF. Today the average size of a new single-family home in the US is around 2408 SF. 93% of today's homes have internet access. Almost 75% have a dishwasher, and over 80% have a washer/dryer.

10. Fashion: While the HBO series is a feast for the eyes, I am thrilled that women no longer wear elaborate layers of corsets, bustles, and ornate fabrics. And most men I know don't even like wearing a tie, let alone multi-piece suits accessorized with top hats, high collars, and cravats.

Thank you, Warren Buffet, for reminding us, "If you were to pick one time to be born and one place to be born... You'd pick today, and you would pick America." Far from perfect, with much more work to be done, but still...

real estate & the news

• Electricity costs are rising because of demand but also because of aging infrastructure:  Electric companies will spend a projected $1.1 trillion between 2025 and 2029 on energy grid upgrades and the costs of upgrading utility infrastructure are climbing, as well. There’s a national shortage of transformers, a key component in the electrical grid, and new tariffs could worsen the shortage as most transformers are imported. (USA TODAY)

• Tariffs will cost global businesses upward of $1.2 trillion in 2025, with most of the cost being passed onto consumers. (S&P Global). Just one-third will be borne by companies, with the rest falling on the shoulders of consumers, under conservative estimates. Many view this as the biggest tax increase on consumers in recent US history, the largest tax increase as a percentage of GDP since 1993. (CNBC)

• The current housing shortage is estimated at approximately 2.8 million units, and it could take around 10 years to resolve. This figure is likely conservative, as it only reflects the physical shortfall and doesn’t account for the fact that many households haven’t been formed due to discouragement—such as individuals remaining in their parents’ homes longer. It’s important to note that the shortage isn’t uniform across the US; it’s most acute in coastal cities, and much less severe in the middle of America. (JP MORGAN PRIVATE BANKING)

around dc

FALL HARVEST FESTIVAL

mount vernon

Experience an 18th-century harvest at George Washington’s Mount Vernon. Explore a corn maze, sample fresh farm products, and watch demonstrations of centuries-old techniques, including wheat treading, cooking, candle-making and blacksmithing. More details here.

Lee Arrowood

Principal, Arrowood Advisory at Compass

M: 202.251.3175

O: 202.448.9002

lee.arrowood@compass.com

+$173M Sold In 2023

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