Business and Finance
The Growing Dilemma: Renting vs. Buying a Home
“Renting or buying? A dilemma growing among prospective homeowners as they question the financial impact. Find out the emotional and financial value associated with homeownership in this Bank of America report.”
Buying a home has always been considered a significant investment, a cornerstone of financial stability and future security. However, a recent Bank of America Homebuyer Insights Report reveals a growing number of prospective homebuyers who fear that renting could have detrimental effects on their financial future. With high interest rates and soaring home prices, the uncertainty surrounding the decision to rent or buy has only intensified. This article delves into the reasons behind this dilemma and explores the emotional and financial value associated with homeownership.
The Rising Uncertainty:
The report reveals that 57% of respondents are unsure whether it is the right time to buy a home, compared to 48% from the previous year. This trend is particularly prominent among first-time homebuyers, with 62% expressing uncertainty. Higher interest rates and escalating home prices have left renters questioning the feasibility of homeownership in the current market. Matt Vernon, Head of Consumer Lending at Bank of America, recognizes this growing concern but emphasizes that research consistently supports the belief that owning a home is the best long-term decision for most prospective homebuyers.
Population Flows and Supply Challenges:
Complicating the decision-making process are the continuing population flows across the United States. As stated in the Bank of America Institute’s On the Move publication, cities in the South have experienced substantial inflows of people, primarily driven by younger generations. Despite an increase in housing supply to accommodate these changes, the supply of rental properties in some areas falls short of meeting the demands of growing populations. Consequently, while 37% of respondents prefer renting for now, 81% of prospective buyers still plan to purchase a home in the near future.
Emotional Value of Homeownership:
The report highlights the emotional and financial benefits of homeownership, with a majority of homeowners and prospective homebuyers recognizing these advantages. Homeownership offers a sense of permanence, emotional stability, control over living space, and fulfillment, according to the survey. However, baby boomers appear to be an exception to this outlook, with 80% favoring renting over buying. They value the freedom from property maintenance, financial responsibilities, and enjoy the flexibility of choosing when and where to move.
Lack of Confidence and Lessons Learned:
Prospective homebuyers also express a lack of confidence in various aspects of the homebuying process, including understanding financing, interest rates, homebuying terminology, and grant programs. However, meeting with lending specialists can be beneficial in exploring assistance programs, such as Bank of America’s down payment and closing cost grants. Furthermore, the report reveals that 66% of current homeowners would have done something differently when buying their first home, such as saving more for a down payment or considering other neighborhoods.
The Bank of America Community Homeownership Commitment:
The Bank of America Community Homeownership Commitment is a $15 billion program aimed at assisting low- and moderate-income homebuyers. This initiative is designed to address the lack of confidence expressed by prospective buyers in understanding various aspects of the homebuying process. Through the commitment, Bank of America offers down payment and closing cost grants, as well as access to lending specialists who can provide guidance on financing options, interest rates, and grant programs. The program also takes into account the lessons learned by current homeowners, with the goal of empowering potential buyers to make informed decisions and achieve successful homeownership.
About Bank of America Institute
Bank of America Institute is dedicated to uncovering powerful insights that move business and society forward. Established in 2022, the Institute is a think tank that draws on data and analyses from across the bank and the world to provide timely and original perspectives on the economy, sustainability, and global transformation. The Institute leverages the depth and breadth of the bank’s proprietary data, from approximately 68 million consumer and small business clients, 56 million verified digital users, $4.2 trillion in total payments in 2022 and $1.4 trillion in consumer and wealth management deposits. From this robust data set, the Institute provides a unique perspective on the health of the economy. It also elevates thought leadership from throughout the bank that addresses long-term trends and shares these findings with the general public.
Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,800 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 57 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).
For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.
SOURCE Bank of America Corporation
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Lifestyle
Philly Whole Foods store becomes first to unionize – a labor expert explains what’s next and how Trump could stall workers’ efforts
Whole Foods workers at the Philadelphia flagship store in the city’s Art Museum area voted to unionize on Jan. 27, 2025. They are the first store in the Amazon-owned grocery chain to do so.
Paul Clark, a professor of labor and employment relations at Penn State University, talked to Kate Kilpatrick, The Conversation U.S. Philadelphia editor, about why this is happening – and why in Philly.
The Whole Foods workers in Philadelphia voted 130-100 in favor of unionizing. What do we know about their grievances?
From what I understand, these workers have felt that compensation, benefits and work conditions were not what they should be. Some are long-standing employees and say they struggle to afford their basic necessities.
Why did the union drive effort succeed now, and in Philly?
In the last five years, there has been a surge in union organizing. There are a number of reasons for this. First is the labor market. Low unemployment emboldens workers to take the risk of organizing a union. If workers feel their employer can’t replace them or that they can easily get a similar job, they are less fearful of angering the employer by trying to organize.
The second reason is that the Biden administration was a labor-friendly administration – perhaps the most in history. The U.S. president appoints a majority of members to the National Labor Relations Board, which interprets and enforces the labor law that governs organizing. Under Biden, the NLRB regularly issued decisions that provided greater protection to workers and held employers accountable when they violated workers’ rights. During Republican administrations, the board’s decisions are generally pro-business and provide less protection to workers. So workers had the wind at their back in that regard.
Also recent polling shows that 70% of Americans approve of unions, compared with less than half of Americans just 15 years ago. The generally favorable view of unions creates a more supportive environment for organizing.
And the last factor is that Generation Z, the youngest group of workers, clearly wants more out of their work and employment than previous generations. So we see a lot of young workers across the country organizing at Starbucks, Trader Joe’s, Apple and now at Whole Foods and other stores.
Why Philadelphia? Philadelphia is a relatively strong union town. The percentage of the workforce that is represented by a union is higher in Philadelphia than in most cities and areas of the country. So when workers express interest in organizing in Philadelphia they get a lot of support. Other unions might turn out members for their rallies, pressure the company to not oppose the organizing drive and offer other aid and assistance.
The starting wage at the Philadelphia Whole Foods store is US$16 an hour. Is that considered low when the city’s minimum wage is just $7.25 an hour?
The minimum wage in Philadelphia is $7.25 because that is the federal minimum wage. States can institute a higher minimum wage if they choose to, but Pennsylvania is one of the few Northeast states that hasn’t adopted a minimum wage higher than the federal minimum. The minimum wages in New Jersey, New York and Massachusetts, for example, are $15 or above.
But the minimum wage in Pennsylvania is almost irrelevant because of today’s labor market. Unemployment is low, and many employers have to offer significantly more than the minimum wage to get workers.
And the minimum wage is supposed to be a starting wage for workers with little experience or seniority. What workers want is a living wage. According to the MIT Living Wage Calculator, a single person in Philadelphia needs to earn around $24 per hour to cover the basic costs of living. And Whole Foods is a profitable business. It’s part of Amazon, one of the most profitable, largest companies in the world. I think workers at these companies believe that they play an important role in generating those profits because of the work they do. And they think they should get a fair share of those profits.
How might the Whole Foods workers expect the company to fight back?
When employees win an organizing election as the Whole Food workers have, they have won a battle but not the war. The purpose of forming a union is to improve wages and benefits and working conditions, and you do that by negotiating a contract with the company. That is the next step in the process. But the law only requires employers to bargain with employees – to meet at reasonable times and exchange proposals. It doesn’t compel them to agree to anything.
The typical strategy of companies that aggressively oppose their workers having a union is to drag their feet in bargaining and not sign a contract. That is technically illegal, but labor law in the U.S. is relatively weak, and with good legal advice you can drag out bargaining for a very long time.
We’ve seen this with the Starbucks campaign. The first Starbucks store unionized in 2021. Over 540 stores have organized since then. And Starbucks workers at those stores still do not have a contract.
Could the new Trump administration have any impact on how this plays out in Philly?
The fact that the Trump administration has taken over gives companies more confidence that the standard delay strategy will work.
On Jan. 28, 2025, President Donald Trump fired Jennifer Abruzzo, the general counsel of the NLRB. The general counsel is the official at the board who basically enforces the National Labor Relations Act. Abruzzo was very aggressive in holding employers accountable if they violated the act and in protecting the rights of workers who tried to organize.
Trump’s approach to labor law in his first four years in office was at the other extreme. He appointed as general counsel Peter Robb, who was seen as far less aggressive in protecting workers’ rights and his interpretations of the law were much more pro-business.
Under the Biden administration, if a company was coming to the bargaining table month after month and not agreeing to anything, the NLRB would eventually step in and cite the employer for not bargaining in good faith. The NLRB could find the employer guilty of unfair labor practices and genuinely put pressure on it to bargain a contract.
Based on the board’s actions during the first Trump administration, the board in the next few years will be more likely to allow companies to delay and delay in reaching a contract.
What leverage do the Whole Foods employees have?
They can go on strike. But Amazon has the resources to put up with a strike at one Whole Foods store forever.
Other Whole Foods stores may be considering union drives. The more stores that organize, the more momentum the Philadelphia store will have. But for now, these workers in Philly are going to have their work cut out for them.
That said, they won’t be alone. The Whole Foods workers organized with the UFCW Local 1776, which is basically a statewide union that’s been around for decades. It has a lot of resources and experienced and knowledgeable leaders, plus the resources of the national UFCW. So it’s going to lean into this fight, and these workers will also have a lot of support from the rest of the labor community in Philadelphia.
Earlier this month, three Congressional representatives from Pennsylvania wrote a letter to Jason Buechel, the Whole Foods CEO, and to Jeff Bezos, the Amazon founder, that expressed their concerns about efforts to suppress the union drive. Is that support typical?
It’s not unusual. But there is no legal basis for elected officials to intervene in a labor-management dispute. I’d put that under the heading of community support.
You have a lot of progressive elected officials in Philadelphia who are supportive of unions, and that’s true in Pennsylvania right up to the governor.
Paul F. Clark, Professor of Labor and Employment Relations, Penn State
This article is republished from The Conversation under a Creative Commons license. Read the original article.
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Business and Finance
Reasons to Consider an Up-and-Coming Career in 2025
(Family Features) If you’re thinking about making a career change, re-evaluating your long-term career path or looking for a career with purpose, there is one path you may not have considered – and it might be the perfect fit: funeral service.
Consider this: Funeral service is facing a critical shortage of skilled professionals in the next decade due to retiring funeral home owners and rising death rates. In fact, the National Funeral Directors Association (NFDA) estimates 5,700 openings for funeral service workers during each of the next 10 years.
In a world where Gen Zers said having a sense of purpose is important to their overall job satisfaction and well-being, according to a study by Deloitte, there’s an opportunity for business-minded individuals, young professionals and those seeking second career paths to explore this distinguished and fulfilling profession. While 1 in 10 (12%) adults would consider a career as a funeral director, Gen Zers (44%) and Millennials (38%) admit they do not know enough about the profession based on a survey by the NFDA.
There are several reasons to consider funeral service as a career, whether you’re a new grad, a young professional looking to get your foot in the door or someone with years of experience who’d like to test your transferable skills in a new career.
1. Fulfillment and Purpose
Funerals and memorial services are an important part of the grieving process and an opportunity for family and friends to gather to comfort one another and say goodbye to their loved one.
Funeral directors are not just in charge of logistics. They play a vital role in helping families navigate one of the most challenging times in their lives. They provide emotional support, guide families through funeral arrangements and ensure the service honors the deceased’s life.
2. Community Involvement
Funeral directors are often deeply involved in the communities they serve, volunteering with local nonprofit and community organizations, sponsoring little league teams and organizing collections for troops overseas. This sense of community extends beyond the immediate responsibilities of the job, as many funeral directors take on the role of mentors and leaders, guiding the next generation of professionals.
“As I look ahead to the next 15 years of my career and beyond, I ask myself one question and encourage others to do the same, no matter what career they are in: Are you doing the work to inspire a new generation of leaders and being the person you needed when you first started out?” said Allyse Worland, CFSP, licensed funeral director. “For me, the answer is always yes, and I am excited to see what the future holds.”
3. Ability to Own a Business
A career in funeral service offers the opportunity to own your own funeral home. With experience and business skills, you can manage and grow a company that provides essential services to your community. It’s a unique blend of compassion and entrepreneurship, allowing you to make a meaningful impact while running a successful business.
If you’re looking for a meaningful career that combines purpose, community and the opportunity for growth, funeral service might be the path for you. With the occupation’s demand for skilled professionals on the rise, now is the time to consider how you can make a difference in the lives of others while shaping the future of a growing profession.
Learn more about the career path and take a quiz to determine whether it’s right for you by visiting rememberingalife.com/careers.
Photo courtesy of Shutterstock
SOURCE:
National Funeral Directors Association
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Business and Finance
Survey: As 2025 Begins, CEOs Are Most Worried About a Trade War and Recession
NEW YORK /PRNewswire/ — As the new year begins, what will keep the world’s executives up at night?
CEOs globally rank intensified trade wars as the top geopolitical risk to their companies. They say tensions between the US, EU, and China will have the greatest geopolitical impact, according to a new survey from The Conference Board.
When it comes to economic risks, leaders can’t seem to kick the recession jitters. Concern of an economic downturn remains high: 46% of CEOs globally identify it as a high-impact issue in 2025—down modestly from 53% in 2024.
Amid geopolitical and geoeconomic tumult, more CEOs are strengthening their supply chains. Among US CEOs, 71% plan to alter their supply chains over the next 3-5 years—an increase from 54% in the 2024 survey.
CEOs also weighed in on AI. They say the biggest benefit has been workforce productivity, demonstrating AI’s ability to support workers rather than replace them…at least for now. However, many are struggling to integrate the technology because of talent concerns: 45% of CEOs globally say lack of expertise is the top challenge to implementing AI.
This year’s survey reflects the views of more than 1,700 executives, including over 500 CEOs. The survey’s participants—CEOs, C-suite leaders, and board directors—weighed in on the top business threats and opportunities in 2025. They were primarily from four regions: North America, Europe, Asia, and Latin America.
Highlights from C-Suite Outlook 2025 include:
GEOPOLITICS & TRADE
CEOs say a global trade war and US-EU-China tensions are top geopolitical challenges in 2025
- Global instability and competition on the front burner: Amid talk of tougher trade policy, CEOs worldwide named US-EU-China tensions among the high-impact issues facing their business in 2025. That ranges from 34% of US CEOs to nearly 50% in Asia and Europe.
- Leaders remain focused on cyberattacks: 25% of CEOs and 36% of C-suite executives name it a high-impact issue in 2025. Fears of a foreign cyberattack rank high among risks CEOs fear most in the US (45%) and Europe (35%).
- Risks vary by region: Among economy-related geopolitical risks, CEOs cited higher energy prices (35%) as their top risk. That includes 47% of CEOs in Japan and Europe, and 36% of Europe’s CEOs also fearing energy supply risks.
RECESSION
Recession tops the economic worry list: CEOs say it’s their #1 economic concern in 2025
- The fear of a downturn persists: Globally, 46% of CEOs identified a downturn/recession as a high-impact issue for 2025. That’s down modestly from 53% in last year’s survey.
- Recession is the top concern for all regions excluding Japan: Japan’s CEOs top concern is labor shortages (66%).
DEBT in the US
A ticking time bomb: US CEOs remain deeply worried about the nation’s debt
- Top concerns: An outsized 51% of US CEOs see US national debt and deficits, followed by decoupling or derisking from China, as the greatest external geopolitical concerns for their businesses.
- Policy & globalization impacts: Regarding what they think will have the greatest impact, issues cited by US CEOs include US debt & deficits (38%), regulation (32%), protectionism (27%), corp. tax rates (22%), immigration (21%).
SUPPLY CHAINS
Supply chain resiliency gains momentum: More CEOs are planning to shake things up
- A big increase among US CEOs: 71% of US CEOs plan to alter their supply chains in the next 3-5 years. It’s a significant increase from 54% in last year’s survey.
- A big increase among Europe’s CEOs: 77% plan to alter their supply chains, an increase from 61% in 2024.
- The how—top changes being made to supply chains: CEOs across most regions—excluding the US—are using digital technology/AI to improve performance tracking as a primary goal. US CEOs chose vendor diversification.
- The why—top reasons for altering supply chains: Among the roughly 80% of CEOs looking to alter supply chains, most are doing so to lower costs and risk of supply chain disruptions.
ARTIFICIAL INTELLIGENCE
CEOs are struggling to integrate AI…mainly because they don’t have the right talent
- Lack of talent: Among CEOs globally, 45% say lack of expertise is the top challenge to implementing AI.
- Is worker resistance overblown? Only 9% of CEOs cite worker resistance as a top challenge to implementation.
- In what areas has AI made the biggest improvements? According to CEOs globally, workforce productivity (44%), customer satisfaction (25%), innovation (24%), operational resilience (18%), and ROI from marketing (12%).
ESG
As extreme weather events intensify, climate events are top of mind for CEOs globally
- Concerns/Risks: Among CEOs globally, 34% cite climate events as the top ESG factor impacting business. That’s second to only sustainability, cited by 39%.
- Priorities: When it comes to environmental priorities, there are stark regional differences.
- Among CEOs globally, renewable energy tops the list.
- US CEOs are most focused on climate resilience/adaptation.
- Europe and Japan’s CEOs are most focused on carbon neutrality.
- CEOs in other areas of Asia are most focused on renewable energy.
PROFIT PLANS
Outside of Japan, few CEOs are looking to raise prices in 2025. Instead, the focus is on innovation, tech, and product development.
- Innovation leads: Worldwide, 37% of CEOs say innovation is a top priority for growing profits, followed by introducing new products/services (29%) and investing in technology, including AI (26%).
- Just 13% expect to increase prices.
- Higher budgets for marketing tech: 37% of CEOs globally—including 57% in Europe and 31% in the US—say they plan to increase their marketing budgets by 10% or more on AI and data analytics to support the drive for profits.
About The Conference Board
The Conference Board is the member-driven think tank that delivers Trusted Insights for What’s Ahead™. Founded in 1916, we are a non-partisan, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.ConferenceBoard.org
SOURCE The Conference Board
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