DeSantis signs law to crack down on squatters, empower police

 Florida Gov. Ron DeSantis formally signed legislation into law Wednesday to ratchet up penalties against squatters and empower law enforcement to go after them.

The new law, which is set to go into effect on July 1 seeks to ensure property owners are no longer forced into lengthy and expensive court proceedings to remove squatters — individuals who inhabit property without the right to do so.

“We are putting an end to the squatters scam in Florida,” DeSantis proclaimed in a statement. “While other states are siding with the squatters, we are protecting property owners and punishing criminals looking to game the system.”

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The law garnered overwhelming support in the Florida legislature.AP

That bill, HB 621, cleared the state legislature with overwhelming support and works to shorten the process for clearing squatters.

Under the new policy, homeowners can simply file a complaint to local law enforcement, which can then immediately remove them if the individual is unlawfully on the property, the individual was told but refused to leave, and that individual is not tangled up in a tenant dispute.

In other words, if law enforcement shows up and squatters can’t produce the paperwork to prove they legitimately live there, officials can remove them quickly.

“Florida is once again leading the nation, this time in securing our state against squatters,” Florida Attorney General Ashley Moody said.

“Biden has allowed millions of illegal immigrants to flood across the border. After video evidence of their plan to take over homes emerged, we’re ensuring Floridians are protected from this egregious and brazen scheme.”

In addition to the streamlined removal process, HB 621 establishes tough penalties for squatters, including making it a first-degree misdemeanor to make false statements in order to falsely convey property rights.

It also makes it a second-degree felony to trespass on a residential property with $1,000 or more in damages and a first-degree felony for “knowingly advertising the sale or rent of a residential property without legal authority or ownership.”

During the signing ceremony, DeSantis ripped into a favorite target of his, Democrat-controlled states.

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Ron DeSantis argued that property owners should have to face lengthy court battles to remove squatters.AP

“They’re siding with the squatters,” DeSantis claimed. “In fact, we have seen squatters move in and claim residence. This forces a massive, long, drawn-out judicial review before they can even be removed from the property.”

“These are people that never had a right to be in the property to begin with.”

The Post has reported extensively on a variety of squatting snafus afflicting the Empire State. Earlier this month, for instance, The Post reported how Brett Fisher Flores managed to worm his way into a $2 million Queens mansion.

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The governor was flanked by victims and advocates against squatting.AP

Flores claimed to have a “license” to stay there, according to a source.

That mansion was purchased by Susana and Joseph Landa, who planned to retire there. But instead, they were dragged into a lengthy court battle.

Florida has faced complications with squatters invading the boating community.

https://nypost.com/2024/03/27/us-news/ron-desantis-takes-aim-at-squatters-rights-in-florida-empowers-police/

State Farm Insurance Drops 72,000 California Properties

 State Farm will not renew approximately 72,000 property and commercial apartment policies, of which approximately 30,000 will be for 'homeowner, rental, rental, residential community and business owner insurance,' and the remainder of which are for commercial apartment policies, the Sacramento Bee reports.

Last May the company announced that it would stop accepting applications for property and business properties due to higher construction costs, growing risks from wildfires and other catastrophic events, and challenges related to how it insures its own business.

Last week, the company cited those challenges in an announcement, along with "the limitations of working within decades-old insurance regulations."

California says it's fixing the issues, with Insurance Commissioner Ricardo Lara announcing upcoming regulatory changes that his office says "will improve conditions for the overall market."

According to spokesman Michael Stoller, State Farm's decision "raises serious questions about its financial situation — questions the company must answer to regulators."

The action was taken by State Farm General Insurance Company, which sells homeowners insurance in California. The company acknowledged the department’s proposed changes and vowed to continue to work with the agency to “establish an environment in which insurance rates are better aligned with risk.”

In December, the department approved a 20% average rate hike for the company’s homeowner insurance policies. -Sacramento Bee

The insurer says it will begin canceling policies in July for homeowners, and August for commercial properties, which will occur on a rolling basis over the next year. 

The move comes two years after AIG pulled out of the Golden State over wildfire risk.

https://www.zerohedge.com/economics/state-farm-insurance-drops-72000-california-properties

Consumer Stress is Evident in the Declining Price of New Homes

 To entice buyers, home builders are building cheaper and cheaper houses. What are you getting for your money?

New Home Sales Prices from the Commerce Department, chart by Mish.

New Home Sales Key Points

• The average sales price peaked at $568,700 in December of 2022.
• The median sales price peaked at $498,800 in October of 2022.
• The average sales price in February of 2024 is $485,000. That’s a decline of 14.7 percent, $83,700 from the peak.
• The median sales price in February of 2024 is $400,500. That’s a decline of 19.4 percent, $96,300 from the peak.

New Homes Sold vs Sales Price

New Home Sales data from the Commerce Department, chart and calculations by Mish.

Commerce data on new homes is very volatile and subject to huge revisions. Seasonal adjustments are a mess. To help smooth away some of the wild fluctuations, I calculated 3-month rolling averages.

On a rolling average basis, seasonally-adjusted, new home sales peaked at 1.015 million in October of 2020. On an monthly basis (not shown), sales peaked at 1.029 million in August of 2020.

Sales volume declined drastically from October 2020 to the bottom in November of 2022 at a three-month moving average of 575,000. That’s a decline of 43.3 percent.

At that point, home builders decided they would rather build more houses cheaper than fewer, more-expensive houses.

Three-Month Moving Average Changes

• The average sales price is down 8.2 percent, $44,734 from the moving-average peak.
• The median sales price is down 14.1 percent, $67,800 from the moving-average peak.

The price moving averages both peaked in December of 2022.

What Are You Getting?

Price is down but so are room sizes, the number of rooms, lot sizes, amenities, and landscaping.

You are not getting the same house for $400,500 as you did for $496,800. I question the claim that houses are now more affordable.

It’s like saying a bicycle is more affordable than a motorcycle, or cheese is more affordable than moon rocks.

New Home Sales Since 1963

New Home Sales from the Census Bureau New Residential Construction report, chart by Mish.

Earlier today, I noted New Home Sales Little Changed in February

New home sales are about where they were in July of 1963 (blue highlights).

Sales are down 35.7 percent from the August 2020 seasonally-adjusted annualized peak of 1,029.

New Homes For Sale By Stage of Construction

Allegedly, there are 463,000 new homes for sale. But 106,000 of them have not even started.

85,000 are completed and another 272,000 are under construction. Data only dates to 1999, but the number under construction is on the upper end of the range.

Builders are optimistic they can sell the homes they have started.

The number of homes for sale and homes under construction may be flashing some serious warning signs. Both are at or above levels that preceded prior downturns.

Many of those who want to buy are priced out and have other financial difficulties.

Credit Card and Auto Delinquencies Soar

Credit card debt surged to a record high in the fourth quarter. Even more troubling is a steep climb in 90 day or longer delinquencies.

Record High Credit Card Debt

Credit card debt rose to a new record high of $1.13 trillion, up $50 billion in the quarter. Even more troubling is the surge in serious delinquencies, defined as 90 days or more past due. For nearly all age groups, serious delinquencies are the highest since 2011.

Auto Loan Delinquencies

Serious delinquencies on auto loans have jumped from under 3 percent in mid-2021 to to 5 percent at the end of 2023 for age group 18-29. Age group 30-39 is also troubling. Serious delinquencies for age groups 18-29 and 30-39 are at the highest levels since 2010.

Generational Homeownership Rates

Home ownership rates courtesy of Apartment List

The above chart is from the Apartment List’s 2023 Millennial Homeownership Report

Those struggling with rent are more likely to be Millennials and Zoomers than Generation X, Baby Boomers, or members of the Silent Generation.

The same age groups struggling with credit card and auto delinquencies.

Conclusions

Two different polls show millennials and zoomers are unhappy. And they are unhappy for the reasons I stated.

Many have concluded they will never be able to afford a house or have kids. Those who have concluded that are likely correct.

For more discussion, please see US Drops to Number #23 in the World Happiness Report

Home Affordability

Earlier today I asked “Are we about to run out of people who want a home and can afford a home?”

Declining price suggests that.

Builders have stabilized the number of transactions, for now. But it’s at the expense of price.

The people who most want to buy (zoomers and millennials) are very much priced out with mortgage rates near 7.0 percent, while getting less and less for their money.

A average decline of $44,734 from the moving-average peak ($67,800 from the median peak) did not make homes affordable.

The new home sales transaction rebound (second chart) peaked at 707,000, New sales are now 660,000, a decline of about 6.2 percent despite declining prices.

Meanwhile, based on the number of homes under construction, homebuilder optimism is still rising (4th chart).

Homebuilders are stretched and may finally be a decent short. That’s an observation, not advice.

https://mishtalk.com/economics/consumer-stress-is-evident-in-the-declining-price-of-new-homes/

Thriving how-to squatter internet forums reveal home takeover secrets

 Thousands of homes across America are being invaded by squatters, who move in and legally live rent-free — and amazingly there’s no easy way for homeowners or the police to evict them.

In Atlanta, the problem is so bad some residents are too afraid to leave for a vacation, for fear of returning to an unwanted visitor or even finding their home converted into an ad hoc strip club.

However, squatting isn’t as simple as turning up to someone’s home and pushing your way in.

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A TikTok influencer recently urged migrants to squat in homes.@leitooficial_25/TikTok

This has led to a host of internet forums and dark web pages devoted to the subject offering a fascinating “dummies guide” to getting into someone else’s house and establishing a right to be there.

“I don’t know if you know this, but we have a housing crisis in this country,” a prolific poster told The Post anonymously. “And it’s only getting worse. People are going to do what they have to do. You can’t stop it.”

Here are some of the tips sneaky squatters share, for homeowners and vigilant citizens to look out for:

One occupation artist said they place a for sale/rent sign on a property with a phone number attached to a burner cellphone. If there’s no response, then the home is unmonitored and prime for possession.

Many squatters wade through real estate listing sites like Zillow or Trulia to look for homes that have been on the market for extended periods without any activity and then peruse them in person.

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Alabama homeowner Carrie Black cleans up a mess left behind by a squatter.Gregg Pachkowski / gregg@pnj.com / USA TODAY NETWORK

One squatter suggested placing an orange cone in the driveway of the home and coming back a week later to see if it’s been moved.

Other sneaky tactics include researching the owner’s name and contact information online or in local municipal offices and calling them to report a squatter to assess the response.

Others go as far as to contact the local sheriff to gauge their vigor in responding to a complaint about the home.

While targeting badly dilapidated properties seems tempting, seasoned squatters advise against it. They reason that neighbors who’ve watched them rot over the years will clearly note a sudden presence and assume illegitimacy.

If it has, someone is regularly checking on the house and it should be disregarded. If not, it could be ripe for surreptitious settlement.

Squatters select homes based on their goals — longevity of stay or quality of life.

A handful of mansion takeovers — including in Beverly Hills near LeBron James’ home and a $2 million home in Queens, New York — have dominated the news in recent months, but these are rare due to the scrutiny lush spreads inevitably attract.

While swimming pools and tennis courts have their short-term allure, squatters concede deed holders, sheriffs, or media will eventually rap on the door and force a high-profile exit.

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Paul Callins returned to his Georgia home after caring for his sick wife to find that squatters had changed the locks and moved in.WSB-TV

One experienced squatter set a value limit of $500,000 for viable targets.

Homes far removed from prying neighbors are the squatting gold standard, but delicate interactions with locals are often unavoidable.

Some preach a hermit-like existence to conceal one’s presence, while others advise acting like you own the place and engaging normally — just like you have a rental agreement.

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A suspected squatter answers the door at a disputed home in Queens, New York.James Keivom

The legal term for squatting is “adverse possession,” and rules allowing it are established in all 50 states. The exact rules differ from state to state, but in many, a squatter can make an ownership claim on a property if they’ve lived there openly for a certain period and satisfy other requirements.

If neighbor engagement is necessary, many squatters endorse a charm offensive and property maintenance to minimize friction.

When a blighted home shows signs of improvement, some residents hoping for improved local property values might turn a blind eye even if they suspect something untoward.

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Squatters are also targeting abandoned motels like this one in Florida.WCJB

Utilities — or lack thereof — are another squatting flashpoint. Some occupiers manage to get their lights and gas activated with fake leases, while others prefer to remain in the literal shadows without the benefit of electricity.

One poster wrote that he dealt with a lack of plumbing in a long-term squat by repurposing a bathroom as a “compost toilet” that breaks down waste biologically, usually with sawdust or peat moss in a makeshift commode.

Other threads debate the ethics of gratis living, with some asserting that corporate-owned investment properties that sit vacant for years are fair game and don’t present a moral dilemma.

Some squatters rail against those who infiltrate properties owned by more vulnerable groups, including seniors and other working-class types who’ve managed to secure rental homes to supplement their income.

“The number of people in this country who are facing homelessness is going in one direction,” a Reddit poster said, noting that the recent migrant influx will only fuel the trend.

“You think squatting is an issue right now? Just wait.”

https://nypost.com/2024/03/23/us-news/inside-the-shady-world-of-online-squatting-how-to-guides/