Inside Real Estate - January 10th, 2020

Inside Real Estate (Jan 10th, 2020)

Funding affordable housing in the U.S. / Where to rent instead of buy / Airbnb's new Bay Area digs / Charlie Sheen takes a loss on 90210 home


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1. New legislation that aims to contain the worsening housing crisis in California could result in higher taxes for some homeowners who have big home loans and vacation properties. Assemblyman David Chiu, D-San Francisco's bill would “cap a state tax break for mortgages to the interest paid on the first $750,000 of a loan for a primary home” and eliminate the deduction for mortgage interests on secondary houses. Advocates for this proposal said it could generate $400 to $500 million per year that could go toward homeless shelters, supportive housing and other benefits for homeless people. “It’s a small price to pay among a small number of wealthier homeowners to establish a permanent fund for homelessness prevention,” said Chiu. - SAN FRANCISCO CHRONICLE

2. Airbnb on Thursday confirmed that it leased 300,000 square feet of office space in two large Santa Clara, California, buildings. Their lease at 4301 and 4401 Great America Parkway could create jobs for 1,500 people, a boon for the Bay Area community. According to The Mercury News, Airbnb’s new two-building campus will debut in two installments: one in 2021 and the other in 2024. The privately held home-share platform is also rumored to be mulling an initial public offering (IPO) sometime this year. - MERCURY NEWS

3. Boston and some of its surrounding communities are collectively pressuring legislators to allow them to impose taxes that could fund affordable housing. Officials pushing for this aid money revealed a proposal that would “allow taxes on real estate transactions above the statewide median sale price for single-family homes.” So for a city like Boston, deals above the $2 million mark would be taxed. This is considered part of Boston Mayor Marty Walsh’s five-year plan to improve the affordable-housing shortage in that region. - WBUR

4. Renting may be more affordable than buying a home in some U.S. areas. According to a new study from ATTOM Data Solutions, that seems to be true of at least 18 of the country's most populated counties, including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; and San Diego County, California, among others. Renting is also more affordable in other markets that boast populations of one million people or more — like San Francisco, New York City, Boston, and Las Vegas. Those cities with one million or more people where it’s more affordable to buy than rent include Wayne County (Detroit), Michigan; Philadelphia County, Pennsylvania; and Cuyahoga County (Cleveland), Ohio. - ATTOM DATA

5. The Jackson brothers — Marlon, Tito and Jackie Jackson — helped celebrate the groundbreaking of an upcoming $500 million Hard Rock Hotel and Casino in Gary, Indiana (their hometown). The gambling facility will also feature a 2,000-seat entertainment venue, restaurant and hotel. The new casino will replace the dated Lake Michigan Majestic Star gambling boat. According to some projections, it could attract more than 3 million annual visitors when it debuts sometime in 2021. - WGN

6. Minnesota Gov. Tim Walz is suggesting that the state loan $276 million to pay for affordable housing. In order to approve the proposal, a supermajority of the Legislature — which means support from both sides of the aisle — must first approve the proposal. In addition to this initiative, Walz is also expected to roll out a lengthier public works package that would include investments in water systems, higher education buildings, public safety, roads and bridges. While he has not yet announced what he thinks his 4-part deal will cost, he said the bonding bill could roughly amount to $2 billion. - STAR TRIBUNE

7. Actor Charlie Sheen sold his Los Angeles mansion for $6.6 million, considerably less than his $10 million asking price in 2018. Zoned to 90210, the estate is actually considered to be in Sherman Oaks, not Beverly Hills. Built in 1992, the Mediterranean-style villa features 9,000 square feet of interior space. It includes an impressive master suite with a screening room, wet bar and private living area. Records obtained by the Los Angeles Times show that Sheen purchased the place for $7.2 million in 2006. - LA TIMES

8. A new apartment complex made entirely out of shipping containers will break ground in Jacksonville, Florida, this month. Despite their curious exterior, the building’s developer said it will actually be a luxury multi-family housing project with high-end finishes. The three-story structure’s units will average a cozy 320 square feet of space and will start at $550, which is affordable for that city’s downtown area. - WJXT

9. A nearly completed, sprawling French chateau-style mansion in Green Bay, Wisconsin, will hit the auction block with no reserve on Feb. 8. The home and its three-acre parcel were listed in mid-2019 and re-listed on Jan. 7 for just under $7 million. The three-story, 22,590-square-foot main house features seven bedrooms and two attached garages, one of which is suited to accommodate a sports court. Wisconsin architect Jim LaPlant designed the home for its previous owner. The current owner purchased it as a foreclosure and completed construction on the partial structure. Even so, the house is still just “90 percent” done, so the buyer can still customize some parts of the interior. - MANSION GLOBAL

10. The New York Times uncovered the real-life history of New York commercial real estate icon Faith Hope Consolo, who passed away in 2018. Consolo at one point led the retail division of Douglas Elliman and regularly published snapshots on the city’s market performance. She spoke at real estate panels and conferences, where she shared valuable lessons from her illustrious decades-long career. After her death, a childhood friend of Consolo reached out to the Times to reveal that she’d invented details about her upbringing and her family life. Much of what the public thought they knew about her was actually "smoke and mirrors," the Times reports. She wasn't born into a wealthy family but came from a modest background and worked her way up the cutthroat New York real estate scene to make a name for herself. - NEW YORK TIMES

Written and curated by Darla Guillen Gilthorpe. Darla writes for the Houston Chronicle, where she was part of its 2018 Pulitzer Prize finalist staff. She was previously an editor at Vox Media site Eater and has had bylines in Elle Decor, SFGate and various other outlets. Follow her on Twitter here.

Edited by Sheena Vasani, staff writer at Inside. 

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