Shrinkflation Hits Homes

A report by John Burns Research & Consulting (JBREC) shows that 25% of new homes reduced in size last year. However, prices rose by 2.5%, reaching $441,000 in August 2023.

Home designs now focus on eliminating hallways and including multifunctional rooms. These smaller spaces (known as "flex space"), like pocket offices and nurseries, are more common due to the work-from-home trend.

Homes are shrinking to as little as 350 square feet. Builders and developers are focusing on affordability, responding to high demand and demographic changes.

D.R. Horton, the largest home builder, has reduced the average home size by 3%. Parcl Labs data shows the median square footage for new homes fell from 2,098 to 2,036 between 2022 and 2023.

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Goldman Sachs' Q2 Profit Surge

Goldman Sachs doubled its profits in Q2, earning $3 billion.

The firm’s asset and wealth management unit now manages nearly $200 billion. This shift helped them secure $3 billion, even amid high interest rates and inflation.

The bank also posted strong results in debt underwriting and fixed-income trading. Investment banking fees rose 21%, driven by a backlog and a resilient US economy.

Goldman also exited some consumer ventures, including partnerships with companies like General Motors and Apple, indicating a retreat from retail banking.

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BlackRock Reaches $10.6 Trillion in Assets

BlackRock, the world’s largest money manager, now oversees $10.6 trillion in assets.

In the second quarter, clients added $51 billion to BlackRock's long-term investment funds.

Investors flocked to exchange-traded funds (ETFs), contributing an additional $83 billion.

The firm also saw $35 billion added to its fixed-income investments. This surge led to an 8% increase in revenue compared to last year.

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Rufus: Amazon's New AI Shopping Assistant

Rufus aims to help shoppers make informed purchase decisions. It answers questions, gives product recommendations, and tracks orders. It uses text chat and is available in the Amazon Shopping app.

Customers can ask about product details and get info from listings, reviews, and Q&As. For example, “Is this coffee maker easy to clean?”

Rufus also makes personalized product recommendations. It considers factors like weather and usage. For instance, it suggests umbrellas for Florida's climate.

Rufus is now live for all US customers.

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