the explainer

The Realtors' settlement could upend housing costs

The sweeping Realtors' commission settlement of $418 million announced last week could resolve class-action lawsuits accusing the National Association of Realtors (NAR) of artificially driving up the cost of buying and selling homes under one of the world's most lucrative commission structures.

What will the settlement do for consumers?
"This is a major win" for them, Ryan Tomasello, a real estate industry analyst with investment firm Keefe, Bruyette & Woods, said to USA Today. The agreement might not change things dramatically right away because sellers are used to factoring in 6% fees, which amount to $12,000 on a $200,000 home, but Tomasello has predicted the settlement could eventually reduce the $100 billion Americans pay annually in real estate commissions by 30% as agencies lower fees to compete for business.

The change will "effectively destroy the current homebuying and selling business model" by barring the NAR from including offers of compensation for brokers on its multiple listing service (MLS), the database where homes are posted. University of Wisconsin-Madison Associate Professor Max Besbris, the author of the book "Upsold," which examines the link between housing prices and the real estate business, said to The New York Times. "It will absolutely transform the real estate industry. "

How will this affect brokers?
It could "push some real estate brokers out of business," said Christine Romans and Rob Wile at NBC News. Keefe, Bruyette & Woods predicts one million agents could leave the industry as commissions shrink. The promise of easy money during the pandemic housing market boom lured people into the industry, with more than 156,000 people acquiring their real estate licenses in 2020 and 2021. But half of all U.S. agents sold just one house — or none — in 2023, according to The New York Times.

And the courtroom drama is not over for the real estate industry. HomeServices of America, a subsidiary of Warren Buffett's Berkshire Hathaway, is the last defendant in the Missouri case not to settle. HomeServices said in its annual report it plans to "vigorously appeal" the jury's damage award.

Poll watch

Over 7 in 10 U.S. service industry employees feel that the attitudes of customers have gotten worse in two major ways since the Covid-19 pandemic, according to a new Gallup poll. The poll surveyed 18,865 workers and found that 43% believed customers were more demanding, while 28% believed customers had greater expectations for remote service.

Picture of the day

In ruins

A Palestinian girl stands amid the rubble of the Al-Farooq Mosque, which was flattened during Israeli airstrikes on Rafah last month.
Mohammed Abed / AFP via Getty Images

Good day 🎶

… for Joni Mitchell fans. Her music has returned to Spotify, over two years after she pulled it from the streaming service in "solidarity with Neil Young's protest over it hosting anti-vax content," The Guardian said. Mitchell did not comment on the return of her music, but the move came a week after Young said he was putting his music back on the platform after it ended its exclusivity deal with Joe Rogan's podcast, which Young accused of spreading misinformation about Covid-19 vaccines.

Bad day 🍫

… for eggflation. A study by Which? reveals some chocolate Easter eggs cost at least 50% more this year, as dry weather in West Africa pushes up global cocoa prices. On average, chocolate costs 12.6% more than 12 months ago.

Puzzles

Daily crossword

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Talking Points

New coalition goes after the mighty lobbying power of AIPAC

This month, more than two-dozen progressive organizations announced a new initiative to counteract the "destructive influence of the Republican megadonor-backed AIPAC on the Democratic primary process and our government's policy toward Palestine and Israel." This newly formed Reject AIPAC coalition is comprised of left-leaning groups including Justice Democrats, Sunrise Movement, and Jewish Voice for Peace Action. Reject AIPAC accuses AIPAC of working to "silence growing dissent in Congress against Netanyahu's assault on Gaza" despite significant calls for a cease-fire from Democratic voters.

AIPAC's "biggest targets are members of the so-called Squad of progressive House Democrats," although its "ambitions are broader," Politico said. The group is reportedly prepared to spend $100 million this election cycle and is monitoring "15 to 20 House races and polling in many of those districts."

'A collective and focused effort'
Reject AIPAC has plans underway for a "seven-figure campaign of paid media and field organizing," The 19th said. This will defend lawmakers up for reelection who have "taken pro-Palestinian stances that have put them in the pro-Israel lobby's crosshairs." Although this amount is "substantial," said Axios, it remains a "far cry from the nine figures AIPAC is planning to spend."

The new group will be "promoting pro-Palestinian members and candidates, as well as highlighting national polling that shows that the majority of Democratic voters are aligned with their stances" against AIPAC's uniform support for Israel in the Gaza war, The Associated Press said. It also hopes to highlight the right-wing financial support AIPAC enjoys and "draw parallels between AIPAC and explicitly right-wing lobby groups like the National Rifle Association," Haaretz said.

'Evolving with the times'
AIPAC has defended its efforts, saying to Axios that it is "entirely consistent with progressive values to stand with the Jewish state." Earlier this month, AIPAC members and donors met with lawmakers from both parties, including Democrats "who identify as progressive, to seek support for" continued congressional aid to Israel, The New York Times said. "Most people are not purely liberal or purely conservative," said one attendee at a recent AIPAC conference, and the group is "evolving with the times."

Progressive groups have run a similar game plan against AIPAC before, most recently in 2022, Semafor said. The "effectiveness of the approach was mixed," but perhaps that's because that year "Israel simply wasn't a burning issue."

Statistic of the day

7: The number of countries that meet the World Health Organization's international guidelines for air quality, according to a new report from air quality organization IQAir. Out of 134 countries surveyed, Australia, Estonia, Finland, Grenada, Iceland, Mauritius and New Zealand were the only ones to meet the guidelines for airborne particles.
The Guardian

INSTANT OPINION

Today's best commentary

'The EPA accidentally killed small cars'
Kate Aronoff in The New Republic
There are more pickups and SUVs on the road these days, says Kate Aronoff. Americans have not "suddenly embraced off-roading." The Environmental Protection Agency imposed Obama-era rules with tougher fuel-efficiency requirements for small cars than light trucks. This let car companies ease the "standards to which they're held" by making more pickups, inadvertently "killing the sedan." In 2012, Americans bought far more passenger vehicles than light trucks. Now the numbers are reversed, at the climate's expense.

'If Ukraine falls, it will be the GOP's Afghanistan'
Marc A. Thiessen in The Washington Post
Republicans rightly hammer President Joe Biden for his "catastrophic" Afghanistan withdrawal, says Marc A. Thiessen. The sight of Taliban forces taking Kabul as "desperate Afghans fled" caused a slide in popularity from which Biden hasn't recovered. "Republicans should look at the damage the fall of Kabul did to Biden's good name and imagine what the fall of Kyiv would do to theirs." Conservatives blocking fresh Ukraine military aid will "own" disaster there, just like Biden owns Afghanistan.

'Case closed: Prolonged school closures needlessly hurt students'
Las Vegas Review-Journal editorial board
The data now makes it clear that the longer students were stuck in remote classrooms due to the pandemic, the further they fell behind, says the Las Vegas Review-Journal. The New York Times described the grim outcomes in a recent article. Some political leaders, like Florida Gov. Ron DeSantis, "pushed to have kids back in schools" early and "faced vicious attacks" from teachers' unions. But now we know: "Keeping schools closed didn't stop the virus from spreading. But it did keep children from learning."

WORD OF THE DAY

prosopometamorphopsia

A rare neurological condition that causes faces to appear stretched and distorted, which one man recently told The Times made his roommate appear as if he had a "demon face"

The Week recommends

Video games to play this spring

Last year was a banner year for video games, delivering several big-name releases, such as "The Legend of Zelda: Tears of the Kingdom" and "Baldurs Gate 3." So far, 2024 is shaping up to be another good year for gamers looking to add to their repertoire.

'The Outlast Trials' (March 5)
Horror game fans will enjoy the third installment of Red Barrels' Outlast series, "The Outlast Trials," which came out of early access in March with new maps and missions. "The Outlast Trials" more than delivers the "bloodcurdling, stomach-dropping, wince-inducing gore and violence" fans expect from Red Barrels, said Jasmine Gould-Wilson on Games Radar+.

'Princess Peach: Showtime!' (March 22)
Princess Peach takes the helm of Nintendo's new Mario game for Switch, "Princess Peach: Showtime!" Unlike her previous starring role, this game is not an inverted "Super Mario" game. "Princess Peach: Showtime" is "very much doing its own distinct thing," IGN's Brian Altano said. Like its predecessors, "Showtime" is "definitely for the younger crowd, but so are many of the best Nintendo games," said Altano.

'Tales of Kenzera: Zau' (April 23)
Developer Surgent Studios' "Tales of Kenzera: Zau" was an "emotional breakout" of The Game Awards, Kotaku said. The game follows a young shaman's journey to revive his dead father after he makes a deal with Kalunga, the god of death. The game was inspired by studio founder Abubakar Salim's experience with grief, who said he "always believed that games are the most powerful way of telling a story."

In the morning

Tomorrow's Saturday Wrap features New Hampshire's lessened restrictions on brass knuckles, RuPaul's fortified compound and Sen. Chuck Schumer's call for Israeli Prime Minister Benjamin Netanyahu to be replaced. Enjoy your weekend!

Thanks for reading,
Summer

Evening Review was written and edited by Theara Coleman, Nadia Croes, Catherine Garcia, Scott Hocker, Anya Jaremko-Greenwold, Justin Klawans, Harold Maass, Joel Mathis, Summer Meza, Devika Rao, Rafi Schwartz, Anahi Valenzuela and Peter Weber, with illustrations by Stephen Kelly and Julia Wytrazek.

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