Harvard Joint Center for Housing Studies’ Post

Let's do some rough math. 🏡 The average single-family home in the Boston-metro costs $705,000 🏡 The average Boston-area household makes $107,000 🏡 According to a recent study conducted by Harvard Joint Center for Housing Studies, to buy a single-family home in Boston you need $217,000 🏡 Applying the same formula for multifamily homes, the income needed to purchase these homes goes down slightly to $190,000 🏡 Only 8% of Black and Latino households make over $200,000 🏡 80% of Boston is off limits to families without a six-figure income The math ain’t mathing folks #housingcrisis

While people move for all sorts of reasons, the most common reasons have to do with housing. In 2023, housing costs were a big driver of where people moved. States with higher home prices were big losers, while states where homeownership is more affordable attracted new residents. What about this year? Where do we expect people to be moving in the year ahead? Check out my latest blog. Nestfully #housing #homeprices #movers https://lnkd.in/epbC-QDM

Interesting takeaway on home ownership and under-35s from the Harvard Joint Center for Housing Studies analysis of the latest American Community Survey data: "Homeownership rates for younger adults declined for the first time in several years, likely related to rising home values and reduced homebuyer affordability. Homeownership rates among households under age 35 decreased 0.5 percentage points in 2022-2023 to 36.1 percent. This was the first meaningful decline for this age group in nearly a decade. Rates for households aged 35-44 also declined by a modest 0.1 percentage point to 61.1 percent. But continued high rates among the growing number of older households kept the national homeownership rate steady at 65.2 percent in 2023, on par with the rates of the last two years." Without increased home production and a diversity of options to meet the demands of a wide array of households at different stages of life, we'll continue to see fewer young households owning homes, a shift that will have ripple effects across communities and regions. #housing #development #homeownership https://lnkd.in/e2fPGC4x

“Built-to-rent communities a growing U.S. trend amid sky-high housing costs” As housing costs rise in the U.S., built-to-rent communities (“BTR”) emerge as a viable alternative for individuals and families priced out of the home-buying market by skyrocketing prices and increasing interest rates. CBS News ran this segment about the growing BTR trend. 1) The Trend: Built-to-rent communities, designed for renters with single-family homes on entire blocks, originated in Phoenix during the Great Recession and have expanded across the Sunbelt, including cities like Atlanta and Dallas. This concept appeals to diverse demographics, from Gen Z to Baby Boomers. 2) Market Demand and Challenges: A July CNN poll reveals the urgent demand for affordable housing. 86% of renters feel unable to buy a home, and 54% doubt they ever will, despite 81% still aspiring to homeownership. CBS News analyst Jill Schlesinger notes that home prices have surged over 40% in four years, making ownership unattainable for many. In response, built-to-rent communities are gaining popularity, providing flexibility and amenities without ownership responsibilities. Like Cassie Wilson, NexMetro Communities’ Avilla Grand renters value the comforts of well-maintained homes while enjoying the freedom to travel. 3) Future Outlook: Despite their growth, built-to-rent communities represented only 7.9% of new residential construction last year, according to Arbor Realty Trust. Housing advocates acknowledge their potential to help but warn they cannot significantly reduce housing prices on their own. In conclusion, built-to-rent communities are a vital response to the U.S. housing affordability crisis, reflecting a shift in homeownership perspectives. They offer innovative solutions for renters seeking options that fit their lifestyles and finances, making their evolution crucial for the future of residential housing. 💡 How do you see the future of homeownership evolving in light of rising housing costs and changing demographics? Will built-to-rent communities become the norm? Share your thoughts in the comments below 👇! Please like 👍, comment below 👇, or share 👉. Click the 🔔 in my profile to get notified of my posts. And follow me for more content like this. #home #multifamily #homerental #buildtorent

In Santa Clara County, the average homeowner is 65 years or older, with a homeownership rate of 47%. Homeowners in this county typically have a median household income of around $100,000, reflecting the high cost of living and housing prices. In comparison, San Mateo County has a similar demographic, but with a slightly higher homeownership rate of about 50%. Homeowners in San Mateo generally earn more, with median incomes reaching $120,000, which can be attributed to the county's affluent communities. For those aged 35–44, Santa Clara County shows a homeownership rate of 32%, while San Mateo County offers a slightly better opportunity at 36%. Among younger adults aged 18–34, only 9% of homeowners are in Santa Clara, compared to 12% in San Mateo, where a more robust job market may help younger individuals enter the housing market. A study from the University of California, Berkeley, highlights that the age at which people typically purchase homes in California is rising, with the average age of 49 in 2021. This trend underscores the challenges younger generations face across both counties, as increasing home prices and income disparities shape the landscape of homeownership.

New for Business Insider: Renters are increasingly cost-burdened, and heightened housing costs, particularly in the Mountain region, aren't helping. New data from the Census Bureau's 2023 American Community Survey, released Thursday, reveals nearly half of renter households spent more than 30% of their income on housing in 2023. States such as Maine, New Mexico, and Utah have seen the largest percent increases in median gross rent — which includes rent and utility costs — between 2022 and 2023. The median housing cost for renters increased from $1,354 to $1,406 during this period. It's as high as $1,800 in Hawaii and Washington, DC.

Chances are, you already know someone who is living in a multi-generational home. 🏘️ It could be a recent college graduate who is living at home until they find a job; a grandparent who has moved in to help watch their grandkids; or even a parent who needs some extra care as they get older who moves in with their adult child to make the support easier. These multi-generational housing setups can vary, and there are a few that really set you up for success when it comes to keeping some privacy and independence - homes that have a lock off basement, properties with a separate structure, or even a side-by-side duplex. And thankfully, a new lending program has made purchasing these types of properties easier, requiring only a 5% down payment to buy a multi-family property. 🙌 Head to our latest blog post below to find out more and see what multi-family properties are on the market. #mutifamilyproperty #houshacking #denverinvestment

Interesting read

🏠💸 Back in 1965, buying a home was a different ball game. The median household income was around $6,900, and a median-priced home cost nearly 3x that, at $20,200. Fast forward to 2024, and the scales have tipped dramatically: the median home value has soared to $420,800—over 5x the median household income of approximately $78,000. 📊 Dive into the evolution of housing affordability with detailed insights from a CNBC analysis based on U.S. Census data. How has the dream of homeownership changed over the decades? #HousingMarket #EconomicShift #HomeBuying #RealEstateTrends #AriseLending

**Housing Starts: Down! & Why Danger Lurks** Housing starts declined in August, month-over-month, according to HUD and the U.S. Census Bureau. Even more alarming, housing starts have been down decade-over-decade (see graph), while the U.S. population continues to grow. **By the Numbers:** Privately-owned housing starts in July dropped by 6.8% compared to June and by 16% from the previous year. Single-family housing starts saw a sharp decline of 14.1% month- over-month and 14.8% year-over-year, amounting to 851,000 units. Multifamily housing (rentals) starts showed some resilience with a monthly increase of 11.7%, although they were still down 21.8% from the previous year. Opinion: These statistics are very concerning to Homesellersrights.org due to a national trend of increasing renters as opposed to homeowners. It's a fact that in most nations where homeownership falls to record levels, citizens overall have no vested interest in defending that