Study: Home Ownership Is a Shrinking American Dream for the Middle Class

The number of middle-class Americans who can afford home ownership is falling in  more cities, according to a new industry study.
The report from real  estate research firm Trulia concludes that in 20 of the top 100 largest metro area, the middle class are now  frozen out of the home buying market.
Trulia considers a home affordable  for a median income buyer in a given market if total monthly costs — including  mortgage, insurance and property taxes — after a 20 percent down payment are  less than 31 percent of a region's median household income. Trulia Chief Economist Jed Kolko noted  monthly payments for an average home now cost 20 percent more than a year ago,  according to USA  Today.
"Even having a college degree is no guarantee that  homeownership is within reach in the priciest markets. There's no easy way to  make housing more affordable, though new construction can help," Kolko said. 
The trouble with that last point, though, is that new construction is  more rare in the most expensive markets because fewer people can afford to buy  there — a simple case of supply and demand, according to Kolko.
"For  America's most expensive housing markets to become significantly more  affordable, they would need either a spectacular drop in demand — a local  economic collapse, for example — or a dramatic increase in housing  supply."
The least affordable U.S. markets, and the percentage of homes  for sale in each where median-income Americans can afford to buy, are: 

  1. San Francisco, 14 percent
  2. Los Angeles, 23 percent
  3. Orange County, Calif., 24 percent
  4. New York/New Jersey Metro, 25 percent
  5. San Diego, 28 percent
  6. Ventura County, Calif., 29 percent
  7. San Jose, Calif., 34 percent
  8. Fairfield County, Conn., 37 percent
  9. Honolulu, 39 percent
  10. Oakland, Calif., 40 percent.

In addition, some popular metro areas  had particularly steep drops in affordability in the past year. In Denver, the  share of affordable homes slid to 50 percent from 67 percent. The figure fell to  29 percent from 43 percent in Ventura County, and to 48 percent from 62 percent  in San Antonio.
The prospects for home ownership are even bleaker for  Americans who are less educated, according to Trulia. The study found home  ownership is out of reach for the less educated in most of the top 100 metro  markets in the U.S.
"Even within a local market, affordability depends  on where you land in the income distribution; and how much education you have  often shapes your income today and in the future," Kolko said.
The more  optimistic flip side of the Trulia study is that since the middle class has been  priced out of home ownership in 20 of the 100 largest markets, they can still  afford to buy a home in the other 80. "In most U.S. markets, the majority of  homes for sale are within reach of the middle class, and buying is cheaper than  renting in all of the 100 largest metros," Kolko said.
Home prices in  most American cities continued to grow in the first quarter of 2014, according  to National Association of Realtors (NAR) data cited by U.S.  News & World Report
Lawrence Yun, chief  economist at the NAR, said, "The price increases over the past two years have  been a double-edged sword. It's been very good for the owners or recent buyers  because they're immediately getting equity."
"But it has not been good  news in terms of affordability because affordability is inversely related. That  means that for potential buyers, it's more difficult because it's pricier," he  told U.S. News.

Read at:  http://www.moneynews.com/Economy/home-affordable-middle-class-housi...

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LIGHTER SIDE

 

ALERT ALERT

Obama Lies Again: – Ignores That The Year After Signing The Stimulus More Than (4) Million Jobs Were Lost

Former President Obama, the only President in US history who had his FBI and other Intel agencies spy on the opposition party candidate, claims that he created the great economy that Americans are enjoying today. The only thing Obama created was debt and massive job losses with his horrible economic recovery.

Yesterday the former President tweeted an effort to take credit for President Trump’s successful economy:

Joe Hoft@joehoft

Of course another @BarackObama lie. He can’t open his mouth without lying. 11 years ago the US lost (4.3) million jobs over the next 12 months. Horrible liar. https://twitter.com/barackobama/status/1229432034650722304 

Barack Obama  @BarackObama

Eleven years ago today, near the bottom of the worst recession in generations, I signed the Recovery Act, paving the way for more than a decade of economic growth and the longest streak of job creation in American history.

President Obama’s policies were a disgrace and a failure. He doubled the national debt in spite of zero interest rates from the Fed. His recovery was the worst in US history.

Also, Obama’s assertion is just plain false. The ‘Stimulus’ was passed in February 2009 right after Obama took over the Presidency. He promised to not pass any bills for at least a week to allow for the bills to be read by the people but lied as soon as he was sworn in. The Stimulus was hundreds and hundreds of pages of government handouts to Democrat districts and it was close to $1 million. This was not what America needed and it led to the Tea Party.

Far-left Wikipedia has this to say about the Stimulus:

Note that in his infinite wisdom, NYT economist Paul Krugman is credited with arguing that “the stimulus was far smaller than the economic crisis warranted”. (He also said the markets would crash and burn if President Trump was elected President.)

The data shows that the 12 months after Obama’s stimulus, the US lost 4.3 million jobs:

In Obama’s first three years he netted a loss of 1.5 million jobs compared to President Trump who has added more than 6.7 million jobs.

When it comes to the economy, the billionaire schools the community organizer every time.

Tucker: Bloomberg is trying to buy the election

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