Source: The Atlantic
Rental prices have been skyrocketing in just about every American city. Since the ranks of renters are growing without a corresponding increase in construction, rents are rising across the board. Nationwide, rental prices increased by 3.7 percent from September 2014 to September 2015, according to Zillow. But new analysis shows that the price of housing is increasing a whole lot more for those at the bottom of the economic ladder than for those at the top. A lot more construction is happening at the top of the market, where developers and builders are quickly getting luxury apartments to market. Meanwhile, construction has been slow for cheaper apartments.
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Wednesday, May 25, 2016
Wednesday, May 18, 2016
A Record Share of Young Women Are Living at Home
New analysis from the Pew Research Center shows that a larger share of young American women are living with family now than at any time since the 1940s, as more of them forgo early marriage for higher education. While the Great Recession nudged many millennials back to their parents’ homes, the shift is particularly apparent among women. In 1940, 36.2 percent of women age 18 to 34 lived with their parents or other relatives, and by 2014, the share of women living with family had climbed back up to 36.4 percent. Women today are five times as likely to be enrolled in college than in 1940, when only 5 percent of 18-to-34-year-olds were pursuing a degree.
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Read the full story
Wednesday, May 11, 2016
Wednesday, May 4, 2016
Real Home Prices Could Take 17 Years to Return to Peak
Source: Wall St. Journal
New analysis by real-estate information firm CoreLogic finds that when adjusted for inflation, home prices are years away from hitting the lofty heights of the housing boom. Indeed, economists there say that prices are unlikely to surpass 2006 levels until 2023 or beyond, some 17 years past the peak. The rise and fall in prices without adjusting for inflation matter for existing homeowners because they determine whether or not they are underwater on their mortgages. The rapid run-up in prices in recent years has made it easier for people to sell their homes because they no longer owe more on their mortgage than the home is worth.
New analysis by real-estate information firm CoreLogic finds that when adjusted for inflation, home prices are years away from hitting the lofty heights of the housing boom. Indeed, economists there say that prices are unlikely to surpass 2006 levels until 2023 or beyond, some 17 years past the peak. The rise and fall in prices without adjusting for inflation matter for existing homeowners because they determine whether or not they are underwater on their mortgages. The rapid run-up in prices in recent years has made it easier for people to sell their homes because they no longer owe more on their mortgage than the home is worth.
Monday, May 2, 2016
Interest Rate Update
Interest rates are still looking good. Even with the .25% hike in the Federal Funds Rate long
term interest rates remain at historic lows.
30 Year Fixed up to $417,000 3.50% to 3.75%
30 Year Fixed “Agency” up to $625,500 3.625% to 3.875%
30 Year Fixed FHA up to $417,000 3.25% to 3.50%
30 Year Fixed FHA “Jumbo” up to $729,500 3.25% to 3.50%
Freddie Mac Makes “Bold” Prediction
Officials from residential giant Freddie Mac are predicting that housing starts and home prices will reach their highest levels since 2006. That is a nationwide prediction. Low interest rates, an improving job market, and a gradual increase in housing supply will fuel a strong 2016. The chief economist for Freddie Mac stated “housing markets are poised for their best year in a decade”. The prediction also states that the housing markets should sustain their momentum through 2017 which is always good news.
30 Year Fixed up to $417,000 3.50% to 3.75%
30 Year Fixed “Agency” up to $625,500 3.625% to 3.875%
30 Year Fixed FHA up to $417,000 3.25% to 3.50%
30 Year Fixed FHA “Jumbo” up to $729,500 3.25% to 3.50%
Freddie Mac Makes “Bold” Prediction
Officials from residential giant Freddie Mac are predicting that housing starts and home prices will reach their highest levels since 2006. That is a nationwide prediction. Low interest rates, an improving job market, and a gradual increase in housing supply will fuel a strong 2016. The chief economist for Freddie Mac stated “housing markets are poised for their best year in a decade”. The prediction also states that the housing markets should sustain their momentum through 2017 which is always good news.
Wednesday, April 27, 2016
Helsinki Suburb Offers Millennials Cheap Rent if They Live in a Senior Center
Source: The Atlantic
Helsinki reportedly has notoriously high rents, so millennials under the age of 25 took notice when they could grab a small studio apartment for $265 a month. But notably, the studios are located in a home for seniors, one where the young studio-dwellers would be expected to spend three-to-five hours a week with the older residents. The city-funded project aims to address youth homelessness, reduce social isolation, and encourage mixing between the generations. Younger people get an affordable place to live and some contact with older folks who aren’t their grandparents. The idea has been applauded as a way to provide young people with a socially useful way to find affordable housing while making senior homes livelier, less isolated places.
Helsinki reportedly has notoriously high rents, so millennials under the age of 25 took notice when they could grab a small studio apartment for $265 a month. But notably, the studios are located in a home for seniors, one where the young studio-dwellers would be expected to spend three-to-five hours a week with the older residents. The city-funded project aims to address youth homelessness, reduce social isolation, and encourage mixing between the generations. Younger people get an affordable place to live and some contact with older folks who aren’t their grandparents. The idea has been applauded as a way to provide young people with a socially useful way to find affordable housing while making senior homes livelier, less isolated places.
Wednesday, April 20, 2016
U.S. construction spending rises solidly to near 8-year high
Source: Reuters
While there has been some slowing in consumer spending and persistent weakness in manufacturing, the national economy may be on firmer ground as U.S. construction spending rose more than expected in October with outlays rising across the board. Construction spending increased 1.0 percent to a seasonally adjusted $1.11 trillion rate, the highest level since December 2007, after an unrevised 0.6 percent gain in September, according to the Commerce Department. Construction spending has risen every month this year and is likely to support the economy in the final three months of the year.
While there has been some slowing in consumer spending and persistent weakness in manufacturing, the national economy may be on firmer ground as U.S. construction spending rose more than expected in October with outlays rising across the board. Construction spending increased 1.0 percent to a seasonally adjusted $1.11 trillion rate, the highest level since December 2007, after an unrevised 0.6 percent gain in September, according to the Commerce Department. Construction spending has risen every month this year and is likely to support the economy in the final three months of the year.
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