Courtesy Steven Luttman
By Steve Luttman, broker/owner of SJ Lincoln Realty
Depending on who you ask, 2025 was either a step forward financially, or two steps back. The past twelve months shone a light on the existence of two very different economies within the United States. Asset prices continued their upward trajectory, with stock indexes, precious metals and cryptocurrencies reaching new highs. For those on the other end of the economic spectrum, stubbornly high inflation and rising unemployment disproportionately impacted the middle class and below. GDP remained solid, supported by strong consumer spending and A.I. data center build out. The job market began to show signs of weakness, as both the unemployment rate and the number of long term unemployed increased sharply towards year end.
The Federal Reserve experienced a uniquely noisy year including surprise resignations and allegations of fraud. Housing price growth moderated, experiencing a slight uptick versus the year prior. Mortgage rates spent most of the year trending downwards, albeit double where we were just five years ago. Home sales experienced back to back lackluster years, with affordability concerns and many not willing to give up their existing low rates hindering transaction volumes.
As we begin 2026, a theme for the year has already started to emerge: Affordability. The newly sworn in Mayor of NYC ran on a platform heavily focused upon the high cost of living. This is not a uniquely metropolitan problem however. A recent survey by Resume Now found only 12% of workers reported their wages have kept up with inflation. Goldman Sachs’ Q4 report on housing found the nationwide home price-to-income ratio to be at historic highs.
Various policies to address housing insecurity have been proposed which include freezing rents, banning investor purchases as well as a resumption of quantitative easing in the mortgage backed securities market. Governor Hochul’s plan to mandate local housing construction failed in large part due to opposition from municipalities over the fears of what comes with higher density. Recent legislation in Albany legalized Accessory Dwelling Units (ADUs) with offering property tax exemptions for their construction.
Northern Insuring Agency, Inc. is pleased to announce the addition of Chelsea Chaplin to our Business Insurance Division in the Glens Falls office.
Whiteman Osterman & Hanna LLP has added Lori Sievers as a partner in its Health Care Practice, strengthening the firm’s growing focus on New York’s health care and long-term care sectors.
