Housing Market

Housing Market

The Cost of the American Dream

“In cities like New York, Los Angeles, Miami, and San Francisco, you put in more than 100 hours to make enough money just to pay for housing. That’s longer than two-and-a-half weeks, meaning well over 50% of your take-home pay! Not surprisingly, unaffordable places are all located on the either coastline. In fact, 8 of the 10 most expensive places are all located in California. …The best places tend to be old manufacturing cities like Toledo, OH and Memphis, TN (17 and 18 hours, respectively).”

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Posted: October 18th, 2017 | Permalink

How Does the United States Rank in Homeownership?

“[H]ow does the United States fare on an international basis, as measured by rate of homeownership?  Before you look at the next paragraph, interested reader, what would you guess our international ranking on home ownership is?,” asked R Street’s Alex Pollock. “The answer is that, among 27 advanced economies, the United States ranks No. 21. This may seem like a disappointing result, in exchange for so much government effort. It looks like U.S. housing finance needs some new ideas other than providing government guarantees.”


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Posted: October 3rd, 2017 | Permalink

Student Debt Delays Home Ownership Seven Years

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Posted: September 19th, 2017 | Permalink

Improving the 30-Year Fixed-Rate Mortgage

The 30-year fixed rate mortgage has three major flaws, according to Fed staffers Wayne Passmore and Alexander von Hafften. “First, because homeowner equity accumulates slowly during the first decade, homeowners are essentially renting their homes from lenders. …Second, in each monthly mortgage payment, homeowners substantially compensate capital markets investors for the ability to prepay. …Third, refinancing mortgages is often very costly. We propose a new fixed-rate mortgage, called the Fixed-Payment-COFI mortgage, that resolves these three flaws.” 

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Posted: September 8th, 2017 | Permalink

August 2017 GSE Report

Moody’s Analytics projects loss in southeast Texas to be between $51 billion and $75 billion,with home and vehicle damage estimated at $30 billion to $40 billion. However, total losses could continue to rise as the storm moves into Louisiana. According to [Warren] Buffett, if those uninsured losses top $150 billion, there will be noticeable effects on the economy. “I don’t think it would be a full percentage point for a year or anything like that. But it has a real effect. It destroys wealth. If there’s $150 billion, or something, of uninsured losses that’s real wealth,” Buffett said on CNBC’s Squawk on the Street.


DS News

Brianna Gilpin

August 30, 2017

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Posted: September 5th, 2017 | Permalink

A Closer Look Institutional Activity in the U.S. Single-Family Rental Market

“We believe the demand for single-family rental homes will remain strong due to...demographic, financial and preference-related reasons,” said Sandeep Bordia, head of research & analytics for Amherst Capital. “In the Institutional SFR space, ...valuations remain attractive. At the same time, financing costs have come down significantly. This setup of supportive demographics, attractive cap-rates, modestly strong home price appreciation, cheaper and more broad-based financing argue for strong equity returns in the space over the coming years." 

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Posted: September 1st, 2017 | Permalink