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As we close out the week, Wall Street is still buzzing at the prospect of lower interest rates, even as other economic indicators like unemployment and inflation flash red. The housing market also remains wonky, as mortgage rates keep both buyers and sellers feeling stuck.

In today’s newsletter, we’ll visit suburban Houston, where chaotic trade policy and immigration crackdowns have had knock-on effects on a once-booming market for new homes. Later, we’ll look at a Hollywood spending spree and answer your questions about the end of a tariff-free shipping loophole. Have a great weekend!  

— Tony Wagner and Virginia K. Smith, newsletter editors

A suburban home under construction
Mario Tama/Getty Images
In the Lone Star State, building a home is harder with tariffs and immigration crackdowns
The Texas suburbs have been a major driver of home building, but new housing construction in the state has slowed, and single-family housing permits are down 8%.

In Atascocita, a well-off suburban community northeast of Houston, 47-year-old Jackie Chandler is trying to build her dream home. 

“We have a really tight knit sense of community here. We know all of our neighbors. They know all of us. They've seen our kids grow up,” she told Marketplace’s Elizabeth Trovall. 

Far from the traffic-filled highways of the city, it’s quiet. A bald eagle flies overhead. 

Chandler loves it so much here, this is the second time she’s building a new home, for her husband and two kids. They started building their first home in 2016 — the house is just down the street from their new build. 

This time, they wanted something new and a little smaller.

“We are in the very early stages of construction,” she said, standing in a grassy lot filled with a large dirt-packed rectangle. It’s called “the pad,” where the house will be built. Despite being covered in dozens of loads of dirt, it’s still not tall enough.

“It is still 25 loads too short,” she said. 

Construction has barely started and they’re already at least two weeks behind where they thought they’d be. 

Chandler said she wasn’t prepared for how much had changed when it comes to building a new house. The process has been riddled with uncertainty. 

“When we started getting estimates back, it was really eye opening to us that — because there was a lot of uncertainty about tariffs, and now you're seeing enforcement of immigration… ICE and all this stuff happening — there was a lot of uncertainty about cost,” she said. 

She and her dad, who both work in construction, were surprised. 

“Where we thought maybe the budget would be $15,000 for a line item, it was coming in at $28,000,” Chandler said. 

She said tradespeople would hold off on quoting her for jobs, with prices and labor being so unstable. Instead they’d push it off, telling her to call back when she gets her framing up and then they could give her an estimate. 

“You can't do that when you're trying to plan to build a house,” she said. “You need to build your budget and you need to get everybody lined up.”

They had to take out a new construction loan. After adding up the estimates, it’s costing them more to build a smaller home on the same street.

“We were $100 dollars a square foot there,” she said. “This house is probably $200 a square foot.”

And after the home is built, Chandler isn’t sure how long they’ll stay there. 

During this process, the family has been considering a drastic option: moving to Mexico. 

READ MORE


 
News you should know

Let’s do the numbers

  • Wall Street has officially had its best week in over a month, with the S&P 500 up by 0.1% on Friday, the Dow down 0.6%, and Nasdaq up 0.4%.
  • Small cap companies haven’t all benefited from recent stock market gains, but analysts say that could change when the Fed starts cutting interest rates.
  • Consumer sentiment fell 4.8% in September, and it’s down 21% from a year ago.
  • Grocery prices rose 0.6% in August, but don’t blame tariffs. Here’s a more detailed breakdown of what’s getting more expensive.

More numbers on the housing market 

  • Foreclosure activity rose 18% in August from a year ago, according to real estate data firm ATTOM.
  • The scale of market gains the past five years is pretty astounding. The U.S. housing market gained $20 trillion in value overall, according to Zillow. 

Hey, big spender

  • Shares in Warner Bros. Discovery surged by more than 55% this week on the news Paramount Skydance is looking to buy the entertainment conglomerate in a mostly cash deal worth tens of billions.
  • Skydance just merged with Paramount after a long dealmaking and regulatory approval process. Since then, the studio splashed out on the rights to UFC and Call of Duty. CBS, a subsidiary, is shifting its news division rightward with a rumored acquisition.
  • How does a scrappy upstart and a beleaguered Hollywood institution add up to such a dealmaking powerhouse? It helps that CEO David Ellison’s dad is Oracle co-founder Larry Ellison, who added $100 billion to his massive net worth in a single day this week.
QUOTE OF THE DAY
"These are baristas who are working for a multibillion dollar corporation, headed by a CEO who made $96 million in the first four months of his employment with Starbucks, who are barely making enough take-home pay to pay their bills."
—  Michelle Eisen, a founding member of Starbucks Workers United

It’s been about a year since new-ish Starbucks CEO Brian Niccol announced a new strategy to turn the chain around. We wanted to know: How much of that plan has been achieved? Are workers noticing anything different? Workers at some 600 stores voted to unionize in recent years, and are still negotiating a first contract. Listen to Eisen’s view from the ground, and read Starbucks’ response.


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Final note
Online shopping is changing fast

The Trump administration has closed a loophole that let shipments worth less than $800 enter the U.S. tariff-free. The so-called de minimis exemption gave rise to ultracheap Chinese retailers like Temu, which is aggressively cutting prices and stepping up advertising to make up ground. 

Temu and its fast-fashion rival Shein got a head start adapting to this chaotic new trade environment, because Trump ordered new taxes on small shipments from China earlier this year. Now that the rules have changed for the whole world, we’ve pulled together an FAQ for you.
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