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.

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SWEET: Republican Representative Introduces Resolution To Expel Nancy Pelosi From Congress

Louisiana Republican Rep. Ralph Abraham has introduced legislation to expel Speaker Nancy Pelosi from the House of Representatives.

Abraham’s resolution accuses Pelosi of a “vicious crusade” against President Donald Trump.

Above: Rep. Ralph Abraham

“Nancy Pelosi’s vicious crusade against our lawfully-elected President is nothing more than a politically-motivated witch hunt and it must be stopped,” Abraham said in a statement obtained by Fox News. “She has disgraced the people’s House and weaponized the Speaker’s gavel for her party’s political gain.”

“House Democrats spent nearly three years obsessed with election meddling only to dwarf any such efforts with their own deceitful plan to nullify the 2016 election and prevent President Trump from winning in 2020,” the statement continued. “I have introduced a resolution calling for her to be expelled from the House and for the Speaker’s Office to be vacated.”

The text of the resolution, which is most definitely not going to pass the Democrat-controlled House reads: “Resolved, That pursuant to Article 1, Section 5, Clause 2 of the United States Constitution, Representative Nancy Pelosi be, and she hereby is, expelled from the House of Representatives and the Office of the Speaker is declared to be vacant.”

Fox News notes that constitutional clause holds that “Each House may determine the Rules of its Proceedings, punish its Members for disorderly Behaviour, and, with the Concurrence of two thirds, expel a Member.”

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