Based on data analyzed by Gallup, the following nine metro areas show where job creation is significant.  The data analyzed was Job Creation Index (Gallup Exclusive data), Unemployment rate and change in unemployment (year over year):

9. San Jose – Sunnyvale – Santa Clara, CA

8. San Antonio, TX

7. Houston – Sugar Land – Baytown, TX

6. Atlanta – Sandy Springs – Marietta, GA

5. Orlando – Kissimmee, FL

4. Nashville – Davidson – Franklin, TN

3. Richmond, VA

2. Pittsburg, PA

1. Oklahoma City, OK

It appears that the south and warm weather cities are seeing the greatest strength in job creation.

1.  Financial Reasons to not own a house:

• Cash Gone
• Closing Costs
• Maintenance
• Taxes
• You’re trapped
• Ugly

2.  Personal Reasons to not own a house:

• Trapped
• Walls
• Rent
• Psychology
• Your Time
• Choices
• Stress
• Cash is King

There isn’t enough space here to restate his points.  So, read the article.

From a personal perspective, we haven’t owned a home in over 3 years.  We miss have something that is our own.  But I can buy into many of his points … especially when starting something new.

Is JC Penney’s Makeover the Future of Retailing? — HBS Working Knowledge.

A few of the takeaways from the article:

• Price it Right.  JC Penney’s is removing the “590″ annual sales with Fair and Square pricing.
• Town Square.  Stores within a store.  For example, Martha Stewart, IZOD, Nanette Lepore, and others, will have very specific concept stores within JC Penney.
• Buzz.  Again, a tired brand is getting attention through the media, and its spokesperson, Ellen DeGeneres.

It may take upto three (3) years to know if the strategy works.  Will consumers support it?  Will shareholders be patient?  Time will tell.

This week BungoBox was featured on BloombergTV’s show The Mentor.

This was of interest to me because in June 2011 I was introduced to Bob Cannon and Tom Cannon, the founders of BungoBox. BungoBox offers their customers reusable moving containers. They drop them off at your current residence / business and then pick them up at the new location. Their slogan is: “Move. Unpack. Now Give ‘Em Back.”

In this show, Bob and Tom were paired with Marc Lore, the founder of Quidsi.com, which is more commonly known as Diapers.com. The main them was to discuss how to grow their business.

A few of the strategic takeaways from the episode include:

• Tip No. 1.  When looking to raise capital, it’s easy to be fooled by the profit a customer brings in.  Always consider the cost to acquire that customer.
• Tip No. 2.  Control expansion by saying “no” to certain opportunities for easy revenue can often be more valuable to your long-tem business growth.
• Tip No. 3  When looking at expansion, proving that your business model works in a single market opens the door to scalability.

These points really resonated with me as well.  Bob and Tom, nice episode.  Work Hard! I look forward to your future growth!

In case you haven’t noticed … JC Penney has a new direction. Ron Johnson the new CEO has taken charge and is breathing air to a tired brand.  What is Ron Johnson’s background?  Prior to his appointment at JCP, he has deep roots in retail at both Target and the Apple Store.

Most shoppers view JC Penney as a “also ran.” When you compare their offering to their peers, Macy’s and Kohl’s, the product is similar, but seems inferior because the retail space, in my opinion, outdated.

JC Penney is rolling out two significant programs:

1. Fair and Square Every Day Pricing
2. Stores within a Store.  (Think Martha Stewart boutique)

Fair and Square Every Day Pricing.  Johnson has determined that the large majority of its sales are sold at deep discounts.  (Over 50% off.)  The new pricing structure is:

1. Every Day – Fair Prices
2. Month Long Value – Themed Items and Products
3. Best Prices – Clearance

We’ll have to wait and see if the pricing structure works.  This probably works, in time, with their second initiative

The second program is the concept stores.  They are going to roll out stores within a store.  The first one they’ve announced in Martha Stewart.  Others will be named, but will be similar, I would assume to what they already do with Sephora.  Their concept stores are supposed to roll out about 2 per month, until their are 80 to 100 branded concepts in each JC Penney.

There have been a slew of articles about JC Penney’s approach. I am sure there was a very healthy debate in the executive offices and Board Room, as well.

I think the approach has generated significant publicity for a brand that is tired and worn out. In a competitive retail environment, would there be a reason to talk about JC Penney? Probably not.

Two that I like and recommend, should you have an interest:

Rafi Mohammed – Harvard Business Review – Understanding JC Penney’s Risky New Pricing Strategy

AP Interview with CEO Ron Johnson

Men list more homes:

Women list expensive homes:

The Center for Housing Policy collected data points from the National Homebuilders Association, US Department of Housing and Urban Development, and Salary.com

Below summarizes Boise, Idaho specific data:

• Homeownership 3Q 2011 Median Price:  $148,000 (Metro Ranking of 104).  This places Boise in the middle of the data points of most to least expensive homeownership markets.  This includes new and existing sales.
• Homeownership Affordability Index:  24 (Metro Ranking of 93).  This means 24 out of 74 occupations(or just 32%) earn enough to afford a median priced home as of 3Q 2011.
• Rents of a 2 Bedroom Apartment 3Q 2011 Median Rent:  $702 (Metro Ranking of 164).
• Rental Affordability Index:  52 (Metro Ranking of 154).  This means 52 out of 74 occupations (or 70%) earn enough to afford a 2 Bedroom apartment in Boise.
• Qualifying Income needed to purchase a Median Priced Home:  $42,698 (Metro Ranking of 172).  In 4Q 2009 a similar study was done.  At that time the median priced home was $163,000, and the qualifying income was $48,657.  There has been a -12.25% decrease in qualifying income.

Here are a couple of additional graphics that I was able to extract from the website.

This Chart compares the income of seasonal retail jobs to the annual income needed to purchase a median priced home:

This Chart compares the income of five pre-selected occupations (out of a list of 74) to the annual income needed to purchase a median priced home:

One other tool that I haven’t shown allows you to select an occupation, and compare the median salary across three markets.  The report provides median home price, income needed to purchase a home, and the median salary for the occupation across all three markets.  The site can be found here.

• How workers fare in the housing market (for sale and rental)
• Housing affordability for working families in various occupations

They also provide some templates on how certain occupations match up with the needed income to achieve the median home price in each MSA. The data points were collected from the National Homebuilders Association, US Department of Housing and Urban Development, and Salary.com

The Most to Least Expensive Homeownership Markets can be found here.

The Top 10 Most Expensive Homeownership Markets with Q3 2011 Prices are:

1.  San Francisco, CA: $585,000
2.  New York, NY: $450,000
3.  San Jose, CA: $443,000
4.  Honolulu, HI: $425,000
5.  Santa Ana, CA: $405,000
6.  Santa Cruz, CA: $395,000
7.  Bridgeport, CT: $390,000
8.  Suffolk-Nassau, NY: $378,000
9.  Cambridge, MA: $370,000
10. Ocean City, NJ: $353,000

The Least 10 Expensive Homeownership Markets with Q3 2011 Prices are:

200.  Battle Creek, MI: $85,000
200.  Flint, MI: $85,000
202.  Wheeling, WV: $84,000
203.  Lima, OH: $83,000
203.  Saginaw, MI: $83,000
203.  Springfield, OH: $83,000
206.  Bay City, MI: $82,000
207.  Ocala, FL: $80,000
207.  Toledo, OH: $80,000
209.  Youngstown, OH: $77,000

The Center for Housing Policy also reviewed data for rental affordability. They compared 2 Bedroom rentals across all markets. The Most to Least Expensive Rental Markets can be found here.

Obviously, their are some market overlaps when you compare affordability of rentals to affordability of homeownership.

Here are the Top 10 Most Expensive Rental markets (Cities in BOLD are also in the Top 10 Most Expensive Homeownership Markets):

1.  San Francisco, CA: $1,833
2.  Santa Cruz, CA: $1,730
3.  Honolulu, HI: $1,702
3.  San Jose, CA: $1,702
5.  Suffolk-Nassau, NY: $1,661
6.  Santa Ana, CA: $1,584
7.  Oxnard, CA: $1,527
8.  Los Angeles, CA: $1,465
9.  Bethesda, MD: $1,461
9.  Washington, DC: $1,461

The data is summarized below:

1.  Ocala, FL.  Value per sq. ft.:  $50.  Average home size:  1,615 sq. ft.  Zillow Home Value Index:  $85,200

2.  Lakeland, FL.  Value per sq. ft.:  $52.  Average home size:  1,666 sq. ft. Zillow Home Value Index:  $89,100

3.  Spartanburg, SC.  Value per sq. ft.:  $56.  Average home size:  1,678 sq. ft.  Zillow Home Value Index:  $98,800

4.  Mobile, AL.  Value per sq. ft.:  $57.  Average home size:  1,803 sq. ft.  Zillow Home Value Index:  $78,200

5.  Detroit, MI.  Value per sq. ft.:  $59.  Average home size:  1,604 sq. ft.  Zillow Home Value Index:  $72,900

6.  (Tied) Atlanta, GA.  Value per sq. ft.:  $60.  Average home size:  2,128 sq. ft.  Zillow Home Value Index:  $109,700

6.  (Tied) Memphis, TN.  Value per sq. ft.:  $60.  Average home size:  1,882 sq. ft.  Zillow Home Value Index:  $95,400

8.  (Tied) Canton, OH.  Value per sq. ft.:  $61.  Average home size:  1,634 sq. ft.  Zillow Home Value Index:  $88,900

8.  (Tied) Augusta, GA.  Value per sq. ft.:  $61.  Average home size:  1756 sq. ft.  Zillow Home Value Index:  $84,600

10.  Toledo, OH.  Value per sq. ft.:  $62.  Average home size:  1,652 sq. ft.  Zillow Home Value Index:  $86,700