Marketplace Morning Report Episode: "Up, up and away" Release Date: January 23, 2025
In this episode of the Marketplace Morning Report, host David Brancaccio delves into pressing economic and environmental issues impacting Americans today. From surging home prices and destructive wildfires to the ongoing challenges in the egg market caused by bird flu outbreaks, the episode offers insightful analysis and firsthand accounts to help listeners navigate these complex topics.
1. Surging Home Prices Across Major Metro Areas
Timestamp: 01:03 - 02:42
The episode opens with Sabri Benishore reporting on a significant uptick in home prices across every major metropolitan area in the United States for December—the first such increase since 2022. This surge is primarily attributed to persistent high mortgage rates and limited housing inventory.
Key Points:
- Redfin Data: December saw home price increases nationwide, with Cleveland, Milwaukee, and Philadelphia experiencing the most notable rises.
- Midwest Attraction: Chris Salviati from Apartment List highlights a shifting demand towards Midwest markets like Cleveland due to their relative housing affordability. He notes, “These are some of the last bastions of housing affordability in the US” (01:27).
- Changing Buyer Behavior: With mortgage rates remaining high, potential buyers who had previously postponed purchasing homes are now adapting to the new rates and deciding to proceed with their investments to avoid indefinite delays.
Notable Quote:
Chris Salviati: "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 are and deciding I might as well just go for it." (02:31)
2. Wildfires and the Role of the Watch Duty App
Timestamp: 02:49 - 04:27
Sabri Benishore shifts focus to the alarming wildfire situation in California, where over 30,000 residents have been evacuated due to a fast-moving wildfire encroaching on Los Angeles and Ventura counties. Despite burning more than 10,000 acres, fortunately, no buildings or homes have been lost.
Key Points:
- Wildfire Impact: The rapid spread of the wildfire underscores the necessity for timely and accurate information dissemination.
- Watch Duty App: Marketplace introduces the Watch Duty app, a tool that aggregates updates from emergency responders, maps fire zones, and evacuation areas. The app relies heavily on human reporting to ensure accuracy.
- Interview with David Merritt: David Merritt, Chief Technology Officer of Watch Duty, explains the app's operations. He emphasizes the blend of technology and manual reporting, stating, “It's very, very manual and it's an interesting partnership between technology and human reporting” (04:20).
Notable Quote:
David Merritt: "We're actually a mix now of paid staff, reporters and volunteers. The reporters collect information, listen to radio... during these LA fires, there were at one point like five concurrent fires that all needed pretty prompt attention." (03:34)
3. Egg Supply Crisis Amid Bird Flu Outbreaks
Timestamp: 06:02 - 08:40
The episode then addresses the ongoing bird flu strain's devastating impact on poultry farms nationwide, leading to the culling of tens of millions of chickens and a consequential spike in egg prices. Last month, the average cost of a dozen eggs soared to over $4, double the price from the previous year.
Key Points:
- Rising Costs: The scarcity of eggs has significantly affected both consumers and businesses, particularly restaurants struggling to manage increased costs without passing them on to customers.
- Restaurant Perspective: George Ohannessian, co-owner of Heidi's Restaurant in Waltham, Massachusetts, shares his challenges in sourcing affordable eggs. “I can't pass that on to my customers... I don’t know what to do” (06:58).
- Supply Shortage Details: Brian Moschagiore, VP at Eggs Unlimited, explains the severity of the shortage: “We have about 340 million people in the United States” compared to roughly 300 million egg-laying hens post-flu outbreaks (07:25).
- Consumer Behavior: The scarcity mindset is exacerbating the situation, as consumers tend to buy in larger quantities when limited supplies are available, further driving up demand and prices.
- Industry Recovery: Emily Metz, CEO of the American Egg Board, outlines the lengthy process required for farms to recover from outbreaks, emphasizing the need for a flu-free period to restore egg production. “It's a six to nine month process... we can't flip a switch” (08:18).
Notable Quote:
Brian Moschagiore: "Prices this high before." (07:33)
Conclusion
The Marketplace Morning Report episode "Up, up and away" delivers a comprehensive examination of current economic pressures and environmental challenges. From the evolving housing market dynamics and innovative wildfire response tools to the critical disruptions in the egg supply chain, listeners gain a multifaceted understanding of factors shaping daily life and business operations in the U.S. Through expert interviews and on-the-ground reporting, the episode underscores the interconnectedness of market trends, technological advancements, and public health concerns.
This summary is based on the transcript provided and aims to encapsulate the episode's key discussions and insights for those who have not listened to the full broadcast.