Hey there, welcome back to HomeSweet - your one-stop shop for the best homeowner news. We will give you - holy homeowner - the tools, resources, insights, and memes to both build wealth and build a better life at home. Growing up, we remember our moms getting those Pottery Barn mailers with impeccably decorated rooms and homes. Yeah, let's get you there. Alright, on with the show!

Greenhouse gas emission programs for homeowners (NYT). President Biden recently signed the biggest climate bill in US history. The main aim of the bill is to reduce greenhouse gas emissions and slow down climate change. Part of the plan is to financially incentivize homeowners to use greener energy. Households can claim a "tax deduction of up to 30% for upgrades that save energy," like updating electrical panels, adding insulation or more energy-efficient windows, and installing heat pumps. In addition, solar panels will be marked down from $20k to ~$14k. Lastly, low- and middle-income families will be able to claim rebates up to ~$800 for a greener stove/oven and $8k for space heating or cooling. Overall, according to Rewiring America, households can save around $2k annually with some of these easy options.

Rates still high, price haircuts soon, and balling in Europe? (WSJ, CNBC, WSJ). With average 30 year mortgage rates still near 6.0% and a Powell-directed Federal Reserve most likely to keep hiking interest rates in the coming months, the overheated housing market has to give somehow. That "somehow" is through lower prices on homes, which could happen as soon as Q4 but probably closer to Q1 '23. The chart below shows much steeper incline curves for places like LA, Seattle, Boston, and DC - which means the haircuts there will be higher (~20%+) when compared to flatter curves like Chicago and Philly (~10%). Finally, as the US Dollar reaches historic strength (USD is perhaps the best-performing asset YTD, sheesh), some wealthier Americans are jetting over to Europe to arbitrage-buy residences on the cheap. London, Paris, Tuscany... you know, nice places. This deal will NOT last forever.

A modeling gig is cool: exotic destinations, beautiful people, stunning verandas, mouthwatering indulgence, and strangers being nice to you for no reason. But you know what's really cool? A remodeling gig... to your home... with a high resale ROI.

We found and ranked the best bang-for-your-buck home improvements. A few things to consider first. One, curb appeal is still king, meaning that a well-maintained exterior is the most important to homebuyers (a workable kitchen is #2). Two, costs are up but so is resale value; supply chain snags from the pandemic and tricky global trading tariffs chiefly are keeping costs high. The below options will be more or less attractive to you based on budget, lifestyle, resale value, and obviously how ROYAL you want your home to look :-)

Of course, homebuyers can always ball out and punch up the luxe factor of any of these improvements by using top quality, en vogue materials and hiring highly skilled labor. Let us know with any questions here, folks.

The world is frankly a bit nutty right now. Stress and mental fatigue define 2022 so far. Tech layoffs, equity and crypto markets sucking wind, a looming recession in US and EU, energy crisis / Ukraine, comically high inflation, and an unsustainable cost of living situation. Do we just shrug and kick dust? Nah. Many of these things are outside our control, but one thing we can control is adding calm spaces to our homes. Yes, calm spaces. Everyone right now needs a home that more closely resembles a serene yoga retreat in Bali, complete with clean rooms, fresh organic fruit, plenty of natural light, and lots of space (both real and imagined).

Any ideas? That's why we're here:

Regardless of where you stand politically (or otherwise), we think that three themes are here to stay for the foreseeable future: social justice, climate change, and mental health. Creating soothing spaces in your home checks the last two boxes, but especially mental health.

There's a reason we call it a house - not a nuthouse.

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Thanks for coming through and we hope you enjoyed it. See you next week.

Eyal, Ben, and Aaron 🚪

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