Happy Wednesday! Today’s edition is 668 words, a 2.5 min read.

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Today’s Big Story

The U.S. Is Running Low On Houses

The U.S. doesn’t have enough homes. That’s a big reason why house prices haven’t fallen even though Fed rate hikes have sent mortgage costs through the roof.

Why it matters: The lack of affordable housing means that many Americans can’t take the first step in building wealth while others live with the threat of looming homelessness.

By the numbers: Freddie Mac’s latest estimates show that the country is short 3.8 million houses - meaning there aren’t enough homes being built to keep up with the formation of new households.

What’s causing the shortage? Contractors are struggling to find labor and regulations over land use and zoning slow down build times.

• Existing residents pushing back against new construction - known as the NIMBYism movement.

• Homebuilding never fully recovered from the crash in 2008.

• Work from home policies increased the demand for more living space.

The big picture: The median sale price of homes in the U.S. is now $419,000, up 40% from January 2020, according to Redfin.

Zoom Out: Many believed that the Fed’s rate hikes would slow the economy down and people would lose their jobs or their incomes would fall, forcing them to sell their homes. 

• That didn’t happen. The economy has stood strong and homeowners are happy staying put with the record low mortgage rates they secured in 2020 and 2021.

• Plus 60% of mortgage holders bought or refinanced their home in the last four years during the pandemic-era boom and don’t want to move now.

What’s next? There are 39% fewer homes for sale than five years ago. Unless an extraordinary economic event occurs, a short supply of houses may be the new norm.

Quick Bites

Business & Economy

U.S. stock markets closed lower for the second day in a row on Tuesday (S&P -0.47%, Nasdaq -0.16%, Dow -0.72%) ~ Markets are leveling out after the S&P topped its highest level since April 2022 last week.

Former Nissan boss and fugitive Carlos Ghosn has sued the carmaker for more than $1bn for defamation in an attempt to clear his name.

Rivian struck a deal with Tesla to give its customers access to the Tesla charging network.

World

41 women died in a Honduran prison riot that the president is blaming on “mara” street gangs that often control power inside penitentiaries.

A BBC investigation helped expose a global monkey torture network stretching from Indonesia to the U.S.

Indian police retain carrier pigeons to use when disasters sever communication lines.

US News, Politics, & Government

Hunter Biden reached a plea agreement with a U.S. attorney on tax crimes and weapon possession. The deal will likely keep him out of prison.

A Florida county is under quarantine after agricultural officials discovered giant African land snails which can cause meningitis in humans.

Social media star Andrew Tate was charged with rape and human trafficking in Romania.

Sports & Entertainment

Taylor Swift just added 42 international stops to her Eras Tour.

Lionel Messi is set to debut for Inter Miami on July 21.

A Spotify executive called Prince Harry and Meghan “grifters” after their $20m multi-year podcast deal ended after they made just 12 episodes.

Science, Health, & Tech

An undersea volcanic eruption in Tonga caused nearly 200,000 lightning flashes and spewed ash 36 miles into the sky.

Scientists use an AI program to create a perfectly personalized playlist by reading minds.

Gas stoves can emit a cancer-causing chemical at a higher rate than second-hand tobacco smoke, according to a Stanford University study.

Extras

Painting your kitchen gray could add $2,500 to the value of your home.

Central (Lima, Peru) took the top spot at this year’s 50 Best Restaurant awards.

The No. 1 type of music to help you focus, according to a Harvard Neuroscientist.

A man faked his own death then showed up at the funeral in a helicopter.