Up, up and away

Summary

Marketplace Morning Report: "Up, Up and Away" – January 23, 2025

On the January 23, 2025 episode of Marketplace Morning Report titled "Up, Up and Away," host Sabri Benishore and correspondent Samantha Fields delve into pressing issues affecting the American economy and daily life. The episode covers a surge in home prices across major metro areas, the innovative role of the Watch Duty app in managing wildfire emergencies, and the impact of a contagious bird flu strain on egg supply and prices. Below is a detailed summary of these key segments, enriched with notable quotes and insights from experts and stakeholders.

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1. Nationwide Surge in Home Prices

Overview: The episode opens with an analysis of the recent uptick in home prices across the United States. For the first time since 2022, December saw rising home prices in every major metropolitan area, according to Redfin data.

Key Points:

• Geographic Trends: The most significant increases were observed in Cleveland, Milwaukee, and Philadelphia. These Midwest markets are becoming attractive due to their relative affordability compared to traditionally hot Sunbelt cities like those in Texas and Florida.

• Market Dynamics: High mortgage rates and low housing inventory have constrained the housing market, but persistent demand is pushing prices upward despite these challenges.

Notable Insights:

• Expert Opinion: Darrell Fairweather from Redfin notes, "Today people... are moving to Florida, but it's more expensive now than it used to be, which limits how much prices can grow" (01:28).

• Consumer Behavior: Brian Moschagouri from Apartment List explains, "A lot of people have been holding off buying for a while, hoping mortgage rates would come down." However, with rates remaining high, consumers are adjusting by deciding to purchase despite the costs (02:12).

• Regional Affordability: Samantha Fields highlights, "In the Midwest, home prices are still low relative to the rest of the country," citing Cleveland's median sale price of $229,000 as a base for potential 15% increases (01:34).

Conclusion: The housing market's resilience amidst high mortgage rates and low inventory underscores shifting demand towards more affordable regions. As consumers acclimate to the new financial landscape, home prices continue their upward trajectory nationwide.

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2. Watch Duty App Enhances Wildfire Management

Overview: Sabri Benishore transitions to discussing the escalating wildfire situation affecting California’s Los Angeles and Ventura counties. Over 30,000 people were under evacuation orders due to a rapidly spreading wildfire encompassing more than 10,000 acres.

Key Points:

• Wildfire Impact: Thankfully, no buildings or homes have been destroyed yet, but the speed of fire spread necessitates efficient information dissemination.

• Watch Duty App: This innovative application aggregates updates from emergency responders, mapping fires and evacuation zones in real-time. It relies heavily on human reporting to ensure accuracy and promptness.

Interview Highlights:

• David Merritt, CTO of Watch Duty: Explains the operational model, stating, "It's a very, very manual effort. And it's an interesting partnership between technology and human reporting" (03:50).

• Megan McCarty Carino’s Insights: "We had people sleeping, not a lot, sleeping in shifts even with a big team," illustrating the dedication required to manage multiple concurrent fires (03:05).

Conclusion: The Watch Duty app exemplifies how technology and human collaboration can effectively manage and communicate during natural disasters. This manual yet efficient approach ensures that critical information reaches those in harm's way swiftly and accurately.

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3. Avian Flu Outbreak Drives Egg Prices to Record Highs

Overview: The episode shifts focus to the agricultural sector, highlighting a devastating strain of bird flu that has led to the culling of tens of millions of chickens across the nation. This outbreak has severely impacted egg production, causing prices to soar.

Key Points:

• Price Explosion: A dozen eggs now average over $4, double the price from the previous year, as reported by the Bureau of Labor Statistics.

• Supply Shortages: With egg-laying hens reduced to approximately 300 million from the necessary 340 million, the scarcity has put immense pressure on both suppliers and consumers.

Stakeholder Perspectives:

• George Ohannessian, Co-owner of Heidi's Restaurant: Shares his struggles, "I've been busy finding eggs. They're very expensive. They're hard to find" (05:21). He faces a dilemma in maintaining affordable prices for customers despite the soaring costs.

• Brian Moschagouri, Vice President at Eggs Unlimited: Highlights the unprecedented nature of the crisis, stating, "We have to have about one bird to every person in the country. Right now, I think we have about 300 million egg laying hens after the recent flu outbreaks."

• Emily Metz, CEO of the American Egg Board: Outlines the long recovery process, "We have to humanely euthanize those birds... sanitize the farm state and federal approvals... bring in new birds. [...] That's a six to nine month process" (06:56). She emphasizes that stabilization depends on the absence of new outbreaks.

Consumer Impact:

• Behavioral Changes: Moschagouri observes, "If I go to the store and I see large dozens at $2.99 limit two, I'm probably going to grab two dozen as opposed to one dozen," noting how scarcity and pricing strategies can further exacerbate demand (06:22).

Conclusion: The bird flu outbreak presents a significant challenge to the egg industry, with long-term implications for supply and pricing. Recovery hinges on effective disease management and the ability to restore the hen population, a process that requires time and stringent safety measures.

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Final Thoughts

The January 23 episode of Marketplace Morning Report "Up, Up and Away" provides a comprehensive look at significant economic and environmental issues impacting Americans. From the resilience and challenges within the housing market to the innovative solutions in wildfire management and the critical disruptions in the agricultural sector, the episode underscores the interconnectedness of various sectors and their influence on everyday life.

For listeners seeking in-depth analysis and insightful reporting on current events, this episode offers valuable perspectives and expert commentary that illuminate the complexities of today's economic and environmental landscape.

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Notable Quotes:

• Darrell Fairweather (Redfin): "Today people are moving to Florida, but it's more expensive now than it used to be, which limits how much prices can grow." (01:28)

• Brian Moschagouri (Apartment List): "A lot of people have been holding off buying for a while, hoping mortgage rates would come down." (02:12)

• David Merritt (Watch Duty CTO): "It's a very, very manual effort. And it's an interesting partnership between technology and human reporting." (03:50)

• George Ohannessian (Heidi's Restaurant): "I don't know what to do... sometimes there's not much I can do because right now there just aren't enough chickens laying eggs." (05:55)

• Emily Metz (American Egg Board): "We have to humanely euthanize those birds... bring in new birds. That's a six to nine month process." (06:56)

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This summary provides an in-depth overview of the episode's main discussions and insights, making it accessible and informative for those who haven't tuned in.

Transcript

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[Sabri Benishore]

Home prices have gone up kind of everywhere. From Marketplace, I'm Sabri Benishore in for David Brancaccio. Home prices rose in every major metro area around the country in December. That's the first time since 2022. This is according to new data from Redfin. The biggest increases were in Cleveland, Milwaukee and Philadelphia. Marketplace's Samantha Fields has more.

[Samantha Fields]

It's not exactly what most would be homebuyers want to hear. Prices just keep going up. Chris Salviati at Apartment List says with mortgage rates stubbornly high and inventory stubbornly.

[Brian Moschagouri]

Low, demand starting to shift to some of these Midwest markets. You know, those are some of the last bastions of housing affordability in the.

[Samantha Fields]

US A few years ago, prices were shooting up the most in Sunbelt cities in Texas and Florida that at the time were still relatively affordable. Darrell Fairweather at Redfin says today people.

[Emily Metz]

Still are moving to Florida, but it's more expensive now than it used to be, which limits how much prices can grow.

[Samantha Fields]

But in the Midwest, home prices are still low relative to the rest of the country. Take Cleveland.

[Emily Metz]

The median sale price is $229,000, which makes it more possible for prices to rise 15% because they're rising from such a low level.

[Samantha Fields]

But it's not just the Midwest. Prices are rising everywhere. Chris Salviati says a lot of people have been holding off buying for a while, hoping mortgage rates would come down.

[Brian Moschagouri]

And now that we haven't seen those rates really move in a significant way, you might be seeing some folks just getting acclimated to what the new rates.

[Samantha Fields]

Are and deciding, I might as well just go for it. I don't want to wait forever. I'm Samantha Fields for Marketplace.

[Sabri Benishore]

More than 30,000 people were under evacuation orders Wednesday as a fast moving wildfire swept through a mountainous area that borders California's Los Angeles and Ventura counties. That fire has burned more than 10,000 acres so far, but has not damaged or destroyed any buildings or homes, according to reports. Fires can, of course, move very quickly, which means information has to move very quickly and accurately. Over the last few weeks, one app that's emerged as particularly helpful is called Watch Duty. It collects updates from emergency responders and then maps the fires and evacuation zones all in one place. And it uses quite a bit of actual human reporting. My colleague Megan McCarty Carino spoke with David Merritt, Watch Duty's chief technology officer, about how it works.

[Megan McCarty Carino]

So we're actually a mix now of paid staff reporters and volunteers. The reporters come, collect information, listen to radio. When we say reporters, the person writing the reports that and updates that get to your phone. But there's a huge team of volunteers that help support that. You know, during these LA fires, you know, there were at one point like five concurrent fires that all needed pretty, pretty prompt attention. And that's a lot. It's, you know, we had people sleeping, not a lot, sleeping in shifts even with a big team.

[Samantha Fields]

So this is really a pretty manual effort. It sounds like. It's not like you're just pulling data sets from other sources or populating data with automated systems.

[Megan McCarty Carino]

It's very, very manual. And it's an interesting partnership between technology and human reporting.

[Sabri Benishore]

You can hear more of that interview on Marketplace Tech at our website, marketplace.marketplace.org.

[Listener Caller]

Hi, this is Alex from Petoskey, Michigan.

[Megan McCarty Carino]

As a college student studying management and.

[Listener Caller]

Finance, I look forward to getting an unbiased report on the US economy every morning from Marketplace. Even though they aren't there in real life. The Marketplace gang shares every breakfast with.

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[Listener Caller]

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[Sabri Benishore]

A particularly contagious strain of bird flu continues to spread on farms nationwide. Tens of millions of chickens have been culled as a result. And as we've been reporting, that sent the cost of eggs skyrocketing. Last month, a dozen eggs at the grocery store cost more than $4 on average, according to the Bureau of Labor Statistics. That's about double the price from a year ago. Daniel Ackerman has more.

[Listener Caller]

George Ohannessian co owns Heidi's Restaurant, a breakfast diner in Waltham, Massachusetts. These days he's spending less time at the grill than he'd like because he's.

[Brian Moschagouri]

Been busy finding eggs. They're very expensive. They're hard to find.

[Listener Caller]

Ohannessian spent the morning traveling from one egg whole sailor to the next. It's been hit or miss.

[Brian Moschagouri]

Then when you get somewhere and they don't have them, they're like, okay, where do I go next? It's been very hard. It's been very hard.

[Listener Caller]

He's paying almost three times more for eggs than he was just a few months ago. And he says he can't pass that on to his customers.

[Brian Moschagouri]

It's a family restaurant and we try to keep everything affordable so we can keep our customers happy. But I just don't, you know, I don't know what to do.

[Listener Caller]

Sometimes there's not much he can do because right now there just aren't enough chickens laying eggs. Says Brian Moschagori, vice president at the wholesaler Eggs Unlimited.

[Megan McCarty Carino]

A general rule of thumb is that we need about one bird to every person in the country. Right now, I think we have about 340 million people in the United States.

[Listener Caller]

That's compared to around 300 million egg laying hens after the recent flu outbreaks. Moschagouri says that means we've never seen.

[Megan McCarty Carino]

Prices this high before.

[Listener Caller]

Muscadori sells eggs to retail stores, and he says a scarcity mindset among some shoppers can make matters worse.

[Megan McCarty Carino]

I'm a consumer myself, right? And if I go to the store and I see large dozens at $2.99 limit two, I'm probably going to grab two dozen as opposed to one dozen. And I think, you know, in some cases that creates more demand at some of these chains.

[Listener Caller]

And it's not clear when more supply will come online. Emily Metz is CEO of the American Egg Board, a trade group for egg producers. And she says it takes time for egg farmers to get up and running after an avian flu outbreak.

[Emily Metz]

We have to humanely euthanize those birds to prevent their suffering.

[Listener Caller]

Then there's sanitization of the farm state and federal approvals of that sanitization.

[Emily Metz]

And then we have to bring in new birds. And those birds have to mature to a point that they're starting to lay eggs. That's a six to nine month process. So unfortunately, it's not a switch that can be flipped.

[Listener Caller]

Metz says a recovery in egg supply can only happen through a prolonged period with no new avian flu outbreaks. That's something the industry is still waiting for. I'm Daniel Ackerman for Marketplace, and in.

[Sabri Benishore]

New York, I'm Sabri Benishore with the Marketplace morning Report from 8pm American Public Media.

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