HOUSING AFFORDABILITY
Here are some of the big take-aways from Harvard report on Joint Center for Housing Studies:
■ The government considers people who spend over 30% of their income on housing to be “cost-burdened.”
■ People who spend more than 50% of their income to be “severely” burdened.
■ 38.9 million – were considered cost-burdened in 2015, down from 39.8 million in 2014.
■ This was the fifth straight annual decline.
■ Approximately 16% of households, or 18.8 million, paid more than half their income on housing.
■ The availability of homes for sale has fallen dramatically.
■ In 2016, the typical new home for sale was on the market for just 3.3 months. According to the report –the average is 5.1 months.
■ In 2016, 1.65 million homes were on the market making it the fewest in 16 years.
■ The supply is worse for lower-priced homes.
■ Builders have been constructing fewer homes for he first-time buyer segment of the market.
■ Between 2004 and 2015, construction of single-family homes of less than 1,800 square feet fell to 136,000 from nearly 500,000, according to the report.
■ The price of a home increased by 5.6% in 2016.
■ Prices overall remained nearly 15% below their peak, when adjusted for inflation.
■ When adjusted for inflation, prices in markets along the East and West coasts have vaulted more than 40 percent since 2000. By contrast, values in the Midwest and South have declined.
■ The rental vacancy rate fell last year to 6.9 percent, a three-decade low, according to the Harvard report. That’s the seventh straight annual decline.
■ The number of rental units available for under $800 fell by 261,000 between 2005 and 2015, according to the Harvard report.
■ The number of units for $2,000 or more climbed by 1.5 million between 2005 and 2015, according to the Harvard report.