Speaker 1: Global business news twenty four hours a day at Bloomberg
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Speaker 1: This is a Bloomberg Business flag from Bloomberg World Headquarters,
Speaker 1: assigned Charlie Pellett's Stock flore today. The cost of living
Speaker 1: a gained in April by the most in three years,
Speaker 1: and a trio of FEDE officials suggest higher rates could
Speaker 1: soon be warranted. Tenured on two thirty seconds, yeald one
Speaker 1: point seven six percent, SMP five hundred Index down nine
Speaker 1: to two thousand forty seven, A drop there of point
Speaker 1: nine percent. Has stackdown fifty nine, a drop of one
Speaker 1: point three percent down, Industrials down one hundred eighty points,
Speaker 1: a drop of one percent, Gold up six ten the
Speaker 1: ounce to twelve eighty, a gain of five tenths of
Speaker 1: one percent. Crude of eighty three cents of arrow fifty
Speaker 1: five on West Texas inter Media, Crude a game of
Speaker 1: one point seven percent. I'm Charlie Pellett. That's a Bloomberg
Speaker 1: Business flash. You're listening to Taking Stock with Kathleen Hayes
Speaker 1: and on Bloomberg Radio, Broadcasting live today at the Kimpton
Speaker 1: Morrison House Hotel in Alexandria, Virginia, the Washington metro area
Speaker 1: home of Bloomberg ninety one and one oh five point
Speaker 1: seven fm h D two one of the big reports
Speaker 1: the markets have had their eye on today and certainly
Speaker 1: the three feed officials who are suggesting maybe rate hacks
Speaker 1: are possible in June housing starts new home construction having
Speaker 1: a nice game last month of six point six percent
Speaker 1: nationally to nearly one point two million at an annual rate.
Speaker 1: What is going on in the Washington D C. Area?
Speaker 1: How about people who left to go to the suburbs
Speaker 1: trying to rush their way back into the district. Joining
Speaker 1: us now is David Howell. He's c i O, it's
Speaker 1: Chief information officer at McNerney Associates, a leading Washington d C.
Speaker 1: Metro real estate company. Thanks for joining us today, David.
Speaker 1: Thanks appreciate the operating to be here. So what is
Speaker 1: the big trend now? I when I first came to
Speaker 1: the East coast about thirty years why can't believe it?
Speaker 1: So long I started coming to Washington for work. I
Speaker 1: was coming financial news in the fit. I remember what
Speaker 1: the old district was like. It is so different now,
Speaker 1: it really is, and and the trend has been with
Speaker 1: real development and real boom in d C, and people
Speaker 1: have been migrating more towards the district. There's been a
Speaker 1: real huge development boom in d C, with huge development
Speaker 1: towards apartments and condos um and particularly with orientation towards
Speaker 1: apartments and condos without parking, without with any orientation towards
Speaker 1: towards cars, which is a completely new development. David speak
Speaker 1: about nightmare community, I'm wondering, what's the commune? Can it
Speaker 1: be like tonight? How come long can people expect to
Speaker 1: to stay in in traffic if let's say the whole
Speaker 1: the city's in full swing. Well, and I think that's
Speaker 1: part of what's driven the move towards the district people
Speaker 1: that have been migrating from the outer suburbs. An hour
Speaker 1: long community is not at all unusual, and particularly if
Speaker 1: they're driving. And we've had some recent problems with Metro
Speaker 1: in particular. Um and although they will get those problems fixed, UM,
Speaker 1: it's washingt d C typically has the second longest commutes
Speaker 1: in the country. UM And so forty five minute, hour long,
Speaker 1: hour and a half commutes are not unusual. Well, you know,
Speaker 1: we look earlier today to Mark Jinks. He's the city
Speaker 1: manager for Harry and Alexandria, and he talked about I
Speaker 1: asked him what was the biggest thing in his forty
Speaker 1: years in managing, you know, urban development he's a city
Speaker 1: manager here. Of course, the rail link for the Washington
Speaker 1: C area. He said, it's made a big difference. Does
Speaker 1: Washington d C need more of what you just described
Speaker 1: dwellings that don't rely on cars and public transportation that
Speaker 1: mose people around it does? And I think, UM, those
Speaker 1: areas in the closer in suburbs and d C that
Speaker 1: have planned well for transit have the one are the
Speaker 1: ones that have really prospered. Alexandria City, Arlington have done
Speaker 1: that extremely well. Some of the outer suburbs of Fairfax
Speaker 1: County they're learning they have not that done that quite
Speaker 1: as well. They have not done as dense planning around
Speaker 1: the metro stops as Arlington and Alexandria have. The Maryland
Speaker 1: suburbs have done that probably better than some of the
Speaker 1: Virginia suburbs have. They're learning. UM. The silver line out
Speaker 1: through some of the areas in Fairfax County they've learned
Speaker 1: and they're doing that better UM and they're profiting from it.
Speaker 1: UM and So those closer in suburbs that did that
Speaker 1: well in the beginning, they've done very well. UM. The
Speaker 1: ones that are doing it now, they're going to prosper
Speaker 1: in the long term. And the revitalization that you see,
Speaker 1: let's say in a place like Alexandria, can you comment
Speaker 1: on that, you bet? Again, those those areas that are
Speaker 1: around the metro stops that that allowed for dense um
Speaker 1: development in the very beginning, they've done very well. The
Speaker 1: ones that UM Vienna in Fairfax County immediately comes to mind,
Speaker 1: where they had single family houses and broader townhouse communities
Speaker 1: rather than town centers and more dense development. UM. They're
Speaker 1: having to rethink their planning. Now. Where would you like
Speaker 1: to see a new metro stop. That's a great question
Speaker 1: because frankly, those new met pro stops are really hard
Speaker 1: to come by now because the land is so hard
Speaker 1: to to purchase now, is so expensive to do UM.
Speaker 1: I think, frankly, those new metro stops probably aren't going
Speaker 1: to happen now. What's really going to happen now is
Speaker 1: they simply have to rethink the zoning and the planning
Speaker 1: around where those metro stops are now. So speaking of things,
Speaker 1: getting more expensive, not going to new associates, your real
Speaker 1: estate company. Prices go up, commissions get higher. Business must
Speaker 1: to be really good. But what does it mean for
Speaker 1: the potential home buyer and the potential home seller in
Speaker 1: this area? You know, Ultimately markets seek balance over time,
Speaker 1: and where we've seen this explosive growth in d C
Speaker 1: um as compared to the suburbs ten years ago, in
Speaker 1: the last boom, it was the suburbs that were booming
Speaker 1: that it will seek balance over time. Um As prices
Speaker 1: have gone up in d C. Ultimately, it's going to
Speaker 1: reach a point where prices have come to a point
Speaker 1: where people will start to move back more to the suburbs.
Speaker 1: Not the suburbs are dead now. Is just a little
Speaker 1: bit more affordable in the suburbs, and it will get
Speaker 1: people will come back to the suburbs. New York City,
Speaker 1: Coastal California. A lot of foreign he has come in
Speaker 1: and help boost those prices. Is that happen in washing
Speaker 1: d C. I don't think it's happened in DC as
Speaker 1: much as it has in San Francisco. In l A
Speaker 1: and New York we've seen some of that, but just
Speaker 1: not as much as it has in those other big cities.
Speaker 1: Tell me about the issues that your customers are most
Speaker 1: concerned about in an interest rate environment with low as
Speaker 1: interest rates are now. Obviously rates are not the issue.
Speaker 1: Down payment is the biggest issue for most of our folks.
Speaker 1: Um And and not that that's an enormous issue, but
Speaker 1: down payment is the bigger issue than payments. Well, David Hall,
Speaker 1: we thank you so much for joining us today. Thanks
Speaker 1: for the opportunity, appreciate being here. I was just gonna ask,
Speaker 1: I want to. I just wanted to if there's one
Speaker 1: thing that you could describe now and say it's going
Speaker 1: to be different you come back in a year from
Speaker 1: now or so on, what is the what do you
Speaker 1: think is gonna be the biggest change here? I think
Speaker 1: the biggest change here is going to be jobs, because
Speaker 1: our biggest challenge here has been with the sequestration and
Speaker 1: the cutbacks and defense spending UM that really arecipitated the
Speaker 1: downturn in our market here. That's eventually going to get better.
Speaker 1: So I think our market here is going to be
Speaker 1: better a year from now than it is now. Um
Speaker 1: And frankly, Northern Virginia market was impacted more to the
Speaker 1: negative than most of our market because of the cutback
Speaker 1: and defense spending. Contractors here are learning how to to
Speaker 1: to adjust for that. So I think our market is
Speaker 1: gonna be better a year from now than it is now.
Speaker 1: Very interesting. Thank you very much, Thank you appreciated David Howell.
Speaker 1: He is the chief information officer and executive vice president
Speaker 1: of McInnerny Associates. They're based in Washington, d C. Thank
Speaker 1: you very much. We are broadcasting live from the Kempton
Speaker 1: Morrison House Hotel and alex Hendria, Virginia. This is Bloomberg Radio.
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