Connect with us

International

Find out how much housing prices have outpaced wages where you liveExBulletin

Find out how much housing prices have outpaced wages where you liveExBulletin
Find out how much housing prices have outpaced wages where you liveExBulletin

 


Millions of Americans already cannot afford a home, and the cost of purchasing a home continues to rise.

In recent decades, it was common to find a home costing about three times the buyer's annual income. But that ratio has skewed sharply since the COVID-19 pandemic, with home prices rising 47% since the start of 2020. Last year, median home sales prices were about five times median household income , according to tables in a report recently published by the Harvard Joint. Center for Housing Studies, and there are signs the situation could get worse.

The double whammy of high prices and high mortgage rates has “left homeownership out of reach for all but the most advantaged households,” says Daniel McCue, a senior research associate at the center.

The report found that in nearly half of metro areas, buyers need to earn more than $100,000 to afford a median-priced home; in 2021, this was only the case in 11% of markets.

For those looking to buy as well as current homeowners, rising property taxes and insurance rates also add to financial challenges. According to Harvard estimates, “the all-inclusive monthly costs of a median-priced home in the United States [when adjusted for inflation] are the highest since this data was first collected more than 30 years ago. »

This has made closing racial gaps in homeownership even more difficult. In the first quarter of 2024, the report found that only 8% of Black renters and 13% of Hispanic renters had enough income to afford the monthly payments on a median-priced home.

Meanwhile, while many homeowners are reluctant to sell and give up their lower mortgage rates, home sales have fallen. Last year, existing home sales hit their lowest level in nearly three decades, even lower than after the 2008 housing crisis. The U.S. homeownership rate has only rose by just 0.1 percentage points last year, the smallest increase since 2016.

The housing crisis has also contributed to driving up rent prices

Soaring housing costs have left millions stuck in rent, which has also increased competition and prices in this market. For a record half of American renters, their housing is now unaffordable, according to Harvard. Since 2001, inflation-adjusted rents have increased 10 times faster than tenant incomes.

Housing experts say the underlying problem for both buyers and renters is a massive housing shortage that has built up over decades and will take years to fix. Single-family home construction is picking up, and some developers are building slightly smaller, less expensive homes. The boom in multifamily construction has also helped ease rents, especially in places like Austin, Texas, which has seen some of the biggest increases in recent years.

But the authors of the Harvard report say this reprieve is unlikely to last.

On the one hand, high interest rates and other rising costs of land, labor and insurance have once again slowed apartment construction. And since all of these things are very expensive, most of what is built is at the high end of the market. Over the past decade, the United States has lost more than 6 million homes with rents below $1,000. For extremely low-income renters, the National Low Income Housing Coalition calculates that for every 100 households, there are only 34 units they can afford.

At the same time, demand for rental housing remains strong, especially as more Gen Zers move out on their own. Last year, the number of renting households increased by more than half a million, the largest increase since 2016.

If demand continues to accelerate while the construction slowdown persists, the Harvard report warns that it “risks triggering another period of rapid rent increases, similar to the recent rise that contributed to the worst housing conditions.” 'accessibility for tenants never recorded'.

Sources

1/ https://Google.com/

2/ https://www.npr.org/2024/06/20/nx-s1-5005972/home-prices-wages-paychecks-rent-housing-harvard-report

The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos

ExBUlletin

to request, modification Contact us at Here or [email protected]