Posts Tagged ‘rent’

Homeownership Up From 50-Year Low

Posted on August 09, 2017 by Laura Lam

The U.S. homeownership rate climbed in the second quarter, a signal that the sharp downward spiral that began after the housing crash is finally reversing.  The homeownership rate hit 63.7% in the second quarter, the Census Bureau said, a jump of nearly a full percentage point from a year ago, when it touched a 50-year low of 62.9%. The share of Americans who own homes has climbed steadily since then.  The homeownership rate also edged up from the first quarter, when it sat at 63.6%. “The damage the [2007-09] great recession has done to the homeownership rate is likely reversing course,” said…

Switching Gears: Builders Turn to Starter Homes to Lure Millennials

Posted on May 22, 2017 by Laura Lam

First-time buyers are rushing to buy homes after a decade on the sidelines, promising to kick a housing market already flush with luxury sales into higher gear.  Tracking home sales to a particular age group is hard, but a series of data points form a mosaic of a generation of young people ready to buy: The number of new-owner households was double the number of new-renter households in the first quarter of this year, the share of first-time buyers is creeping back toward the historical average, and mortgages for first-timers are on the rise. “They’re crawling out of their parents’…

Renters Finally Turning Toward Homeownership

Posted on May 04, 2017 by Laura Lam

The homeownership rate has been on the decline ever since the peak of the housing bubble a decade ago.  However, last month, the Census Department said American home ownership was 63.6% in the first quarter, down a bit from the fourth quarter of 2016, but up from a year ago, which is economists’ preferred way to gauge the data. According to Trulia Chief Economist Ralph McLaughlin, the number of owner-occupied households rose more quickly than renter households for the first time since 2006. The number of new owner households was up 850,000, compared to a 365,000 increase in the number of…

Millennials Warm Up to Homeownership

Posted on April 27, 2017 by Laura Lam

For the second year in a row, Bank of America has conducted its Homebuyer Insights Report, which explores the attitudes, behaviors and preferences of current homebuyers. This year, a major focus was on millennials who are beginning to change their perspective on home buying.  According to Steve Boland, head of consumer lending for Bank of America, they surveyed young adults who had pulled the trigger and that it was the right decision.  “They are telling their millennial counterparts who are sitting on the sideline … this is going to be a great decision, it will help with your personal and…

Landlords Take Over the Housing Market

Posted on March 13, 2017 by Laura Lam

As rising home prices, slow new home construction, and demographic shifts push homeownership rates to 50-year lows, the U.S. is increasingly a country of renters – and landlords.  Last year, 37% of homes sold were acquired by buyers who didn’t live in them, according to a new report published by Attom Data Solutions and Inc. That number may include second homes, or properties acquired by investors who seek to fix up old homes and resell them at a profit. But it’s also a strong indication that landlords are playing a larger role in the U.S. housing market.  In the years following the foreclosure…

What Does the Average American Spend on Housing?

Posted on February 24, 2017 by Laura Lam

While the cost of college has climbed at an alarming rate over the past 20 years, there remains no purchase more significant — financially or, perhaps, emotionally — than a house. While some have rightly questioned whether the American Dream is worth pursuing, the fact remains that we all need a place to rest our heads at night. According to the Bureau of Labor Statistics’ (BLS) 2014 Consumer Expenditure Survey (CES), the average American household spends about $1,030 per month on rent or mortgage, inclusive of property taxes, insurance, and utilities (not including telephone). That’s roughly 21% of the average household’s income…

High Rents and Student Debt Hinder Homeownership

Posted on October 18, 2016 by Laura Lam

Higher rental costs and student loan debt continue to prevent many Americans from purchasing a home, according to the results of a survey from NeighborWorks America.  NeighborWorks reported that 56% of survey respondents said that rents are too high where they live for them to be able to save enough to buy a home. Similarly, 53% of potential homebuyers with student loan debt said that their debt was either somewhat or very much an obstacle to that purchase.  Another 30% of respondents said they knew someone who delayed a home purchase because of their student loan debt. The two issues…

The Middle-Class Housing Crisis

Posted on August 23, 2016 by Laura Lam

Deepening income inequality across the U.S. is dividing the housing market into winners and losers among renters and owners, the middle class and wealthy, and racial groups.  An annual report from Harvard University’s Joint Center for Housing Studies, the State of the Nation’s Housing, reveals that even while the housing market begins to recover and regain solid footing, large parts of the country are being left behind. The number of American households paying more than 30% of their incomes on housing – a number that economists consider sustainable – ticked up to nearly 40 million in 2014.  That is particularly concerning because that number had been trending down for 3…

Housing Recovery Still Far From ‘Normal’

Posted on August 09, 2016 by Laura Lam

Home sales rose to their highest level since before the financial crisis and were 25% higher than a year earlier, according to the Census Bureau.  But while news of a 592,000 annual rate was positive, economists cautioned not to break out the champagne for the housing market quite yet. “This … is an important milestone for the housing recovery, but historically, it is well short of what should be normal,” said Lawrence Yun, chief economist for the National Association of Realtors.  Considering population and job growth, new home sales should be around 800,000 or 900,000 a year, according to Yun….

Homeownership Obstacles Vary by Ethnicity

Posted on July 20, 2016 by Laura Lam

While all prospective homebuyers may face challenges to buying a home, the perception of what those obstacles are can take different forms based one’s race or ethnicity, according to the results of a survey by the Futures Company in partnership with the California Association of Realtors Center (CAR) for California Real Estate. The obstacle cited most among all respondents was saving enough for a down payment at 29%. Next was housing supply constraints at 27%, followed by access to credit and financing at 22% and personal debt at 19%. Among African-Americans and Asians a similar trend played out. The highest…