Susan Kauffman’s Post

Are we pointing fingers in the wrong direction on the topic of rental affordability? This data might suggest so. Renters living in apartments and single-family rental homes owned by REITs and other institutions tend to spend a much lower share of income toward rent compared to most U.S. renters -- further illustrating the bifurcation of rental affordability. The Census shows half of American renter households are rent burdened (spending >30% of income toward rent), while the typical rent-to-income ratio nationally is 31% -- where it's been hovering for the last 10+ years. Compare that to REITs, who reported rent-to-income ratios (among new lease signers) ranging between 18-23%. Those numbers have changed relatively little in recent years, even when rents surged in 2021-22, thanks to surging incomes among new renter households, too. (Note: Some large REITs have not disclosed their ratios this year and therefore were excluded from the chart.) Invitation Homes -- who reports average renter household incomes of $158,000 -- reported the lowest rent-to-income ratio of 18%. Many apartment REITs, too, show renter household incomes in the six-figures, too. Additionally, RealPage -- which reports on a broader set of U.S. renters living in professionally managed, market-rate apartments -- shows a median rent-to-income ratio of 22%, and trending downward after peaking near 24% in late 2021. RealPage shows incomes among new lease signers (which includes dual-income roommates) right around $100k. By comparison, analysis of Census data shows renter incomes for the overall population well below $60k. Why the big discrepancy? Well, for one, the professionally managed market caters to mid- and higher-income renters. Over the last decade, three-fourths of all NEW U.S. renter households have had incomes topping $75k (according to Harvard analysis of Census data), and this is the demographic served by most REITs, "private equity" and other institutional capital Additionally, there are a couple key methodology differences. Census includes utilities, which I'd argue paints a misleading picture of true rent. And housing providers can only track income for new lease signers. Regardless, there's obviously a very real affordability crisis among lower-income renter households -- for whom there's a severe deficit of supply. Few of these households live in professionally managed, market-rate apartments or SFR -- now or prior to COVID, either. These renters are far more likely to be rent burdened and have far fewer options for places to live. They're also more likely to double up with other households to share the cost of rent and utilities. Bottom line: We need a lot more housing, especially for lower-income households. We need to keep the spotlight there. Misdirected angst toward higher-income renters is a disservice to low-income renters in far greater need. #housing #affordability #apartments #SFR

Two things to consider ... the stigma that had grown re renting versus owning is receding especially among those desiring potential mobility, and the emergence of BFR communities with the products and amenities often not previously available to renters that satisfy the desires and ego of renters and retirees in particular.

Arizona has become a top choice for those fleeing California https://ift.tt/WQxH7cb In efforts to escape “sky-high real estate prices” and rising costs of living, California residents are favoring Arizona as a top relocation destination behind only Texas. That’s according to a report released Monday by StorageCafe, a national marketplace for storage space and an affiliate of real estate data provider Yardi. The report reviewed U.S. Census Bureau county-to-county migration data between 2013 and 2022 to identify the most popular and profitable moving routes from California to Arizona. The census report collected data from 3.5 million addresses nationwide, including an unspecified number from counties in California and Arizona. StorageCafe’s analysis ranked the 50 most popular moving routes based on “individual move-ins,” referring to one relocation event where an individual household from California establishes a new residence in Arizona. StorageCafe also considered numerical and percentage differences in home and rent prices across counties in both states, homeownership or rental status, per capita income and generational demographics. The report found that more than 630,000 California residents relocated to Arizona over the past decade — an average of 173 new residents per day. Among the top 50 moving routes, 36% of migrating California residents purchased homes during their first year in Arizona. According to StorageCafe, almost all top-ranked routes offered significant savings on home and rental prices, with the highest amount reaching nearly $1 million. Additionally, the report noted that “homes in Arizona cost less than half of what they do in California ($321K vs. $659K), giving people a much better chance at homeownership. The same trend applies to rent, with Arizona apartments being 30% cheaper than in California.” The No. 1 route between the states — and the route for five of the 10 most popular routes —was from Los Angeles County to Maricopa County. Encompassing the Phoenix metro area, Maricopa County experienced almost 8,700 move-ins from Los Angeles alone in 2022, with 43% of newcomers choosing homeownership. Other common starting points for Californians moving to Maricopa County were San Diego County (5,173 movers), Orange County (4,021), Riverside County (3,302) and San Bernardino County (2,649). About 34,000 California migrants relocated to Phoenix in 2022, with technology job opportunities heavily influencing the trend. “[Phoenix] has always been a darling of tech companies, due to its top-notch universities and strong aerospace industry. Naturally, there’s a busy scene of home-grown tech companies, as well as California transplants. In the past few years, companies like Unical Aviation, Sendoso, and HomeLight moved their corporate headquarters from California to Maricopa County,” the report noted. “This trend is further boosting the local tech sector and contributing to the creation of thousands of...

According to the latest Canadian census, there are almost 1 million more renter households now than a decade ago — to unprecedented levels across all age groups. The city driving the trend is Montreal, according to a recent Point2 study that analyzed renter levels in Canada’s 50 largest cities. Besides financial savings from renting vs owning in some higher-priced locales, there is a mix of reasons for the increased renter numbers, including higher immigration, an aging population, the popular preference to live maintenance-free and relocations to job centres. Canada is experiencing a significant increase in its number of renters, with 33.4 per cent of households now renting — the highest percentage ever recorded. Young millennials and baby boomers are the largest groups contributing to this trend.

A look at the state of affordable housing in the U.S. In a recent Pew Research Center survey, 69% of Americans said they were “very concerned” about the cost of housing, up from 61% in April 2023. But what counts as an “affordable” home, and how many Americans are struggling to afford a place to live? This analysis tries to answer those questions, using data from U.S. Census Bureau surveys and other sources. What makes a home affordable? One commonly used (though also criticized) benchmark for housing affordability is that no more than 30% of household income should go toward housing costs. Households that spend more than that are considered “cost burdened” by the U.S. Department of Housing and Urban Development. By that standard, 31.3% of American households were cost burdened in 2023, including 27.1% of households with a mortgage and 49.7% of households that rent, according to 1-year estimates from the Census Bureau’s American Community Survey (ACS). (Many more people own than rent: In the second quarter of 2024, 65.6% of occupied housing units were owned while 34.4% were rented, according to the most recent estimates from the Census Bureau’s Current Population Survey/Housing Vacancy Survey.) We can also look at affordability for renters, specifically, over time using a slightly different standard: the share who spent 30% or more of their income on gross rent, rather than the share who spent more than 30% on total housing costs. In 2023, about half (51.8%) of renting households paid that much in gross rent, ACS estimates show. By comparison, 53.4% of renting households paid that much in 2011. The share of renters reaching that threshold hovered around 50% for the entire 2011-2023 period. What factors contribute to housing being unaffordable? A lack of housing affordability is the product of multiple factors intersecting in sometimes unpredictable ways. Interest rates, new home construction, population growth, population shifts, rising home prices and rents, disposable incomes, and local economic conditions all affect how easy or difficult it can be to find a home you can afford in a place you want to live. Let’s take a closer look at a few of these factors. — Pew Research 

Housing data from the U.S. Census Bureau 2023 American Community Survey was released today. “Over 21 million renter households spent more than 30% of their income on housing costs in 2023, representing nearly half (49.7%) of the 42.5 million renter households in the United States for whom rent burden is calculated. Households are considered cost-burdened when they spend more than 30% of their income on rent, mortgage payments, and other housing costs.” * 4.6 million (56.2%) Black or African American alone renter households were cost-burdened. * 1 million (43.4%) Asian alone renter households were cost-burdened. * 10.4 million (46.7%) White alone renter households were cost-burdened. * 229,000 (48.8%) American Indian or Alaska Native alone renter households were cost-burdened. * 53,000 (51.7%) Native Hawaiian or Pacific Islander alone renter households were cost-burdened. * 4.8 million (53.2%) Hispanic renter households were cost-burdened.

A look at the state of affordable housing in the U.S. In a recent Pew Research Center survey, 69% of Americans said they were “very concerned” about the cost of housing, up from 61% in April 2023. But what counts as an “affordable” home, and how many Americans are struggling to afford a place to live? This analysis tries to answer those questions, using data from U.S. Census Bureau surveys and other sources. What makes a home affordable? One commonly used (though also criticized) benchmark for housing affordability is that no more than 30% of household income should go toward housing costs. Households that spend more than that are considered “cost burdened” by the U.S. Department of Housing and Urban Development. By that standard, 31.3% of American households were cost burdened in 2023, including 27.1% of households with a mortgage and 49.7% of households that rent, according to 1-year estimates from the Census Bureau’s American Community Survey (ACS). (Many more people own than rent: In the second quarter of 2024, 65.6% of occupied housing units were owned while 34.4% were rented, according to the most recent estimates from the Census Bureau’s Current Population Survey/Housing Vacancy Survey.) We can also look at affordability for renters, specifically, over time using a slightly different standard: the share who spent 30% or more of their income on gross rent, rather than the share who spent more than 30% on total housing costs. In 2023, about half (51.8%) of renting households paid that much in gross rent, ACS estimates show. By comparison, 53.4% of renting households paid that much in 2011. The share of renters reaching that threshold hovered around 50% for the entire 2011-2023 period. What factors contribute to housing being unaffordable? A lack of housing affordability is the product of multiple factors intersecting in sometimes unpredictable ways. Interest rates, new home construction, population growth, population shifts, rising home prices and rents, disposable incomes, and local economic conditions all affect how easy or difficult it can be to find a home you can afford in a place you want to live. Let’s take a closer look at a few of these factors. — Pew Research 

New U.S. Census Bureau data from the 2023 American Community Survey revealed that New Hampshire’s renters continue to be cost-burdened by housing expenses. In 2023, the estimated median income for households that owned their home was $114,853. Renters’ median household income that same year, however, was estimated to be $53,816. Read more in our latest report: https://lnkd.in/e754uZdC 

𝗣𝗼𝘀𝘁-𝗣𝗮𝗻𝗱𝗲𝗺𝗶𝗰, 𝗛𝗼𝘂𝘀𝗶𝗻𝗴 𝗣𝗿𝗶𝗰𝗲𝘀 𝗜𝗻 𝗠𝗼𝘀𝘁 𝗢𝗻𝘁𝗮𝗿𝗶𝗼 𝗠𝗲𝘁𝗿𝗼𝗽𝗼𝗹𝗶𝘁𝗮𝗻 𝗔𝗿𝗲𝗮𝘀 𝗥𝗲𝗺𝗮𝗶𝗻 𝗘𝗹𝗲𝘃𝗮𝘁𝗲𝗱 𝗖𝗼𝗺𝗽𝗮𝗿𝗲𝗱 𝘁𝗼 𝗠𝗲𝘁𝗿𝗼𝗽𝗼𝗹𝗶𝘁𝗮𝗻 𝗧𝗼𝗿𝗼𝗻𝘁𝗼 - This blog, authored by researcher Frank Clayton, examines the percentage change in housing prices in Ontario census metropolitan areas (CMAs), with emphasis on the census metropolitan areas within the Greater Golden Horseshoe (GGH). For the entire January 2015 to June 2024 period, housing prices increased significantly more in the eight other CMAs in the GGH than in Toronto. There has been a fundamental shift in housing demand by Toronto CMA residents to other parts of the province due to a growing preference for more space and the relative scarcity and unaffordability of ground-related homes in the Toronto CMA. The smaller relative decline in prices in the Toronto CMA since the pandemic peak reflects some reversal of demand overexuberance for homes in fringe CMAs at the time of the pandemic. It is not a precursor to a shift in ground-related housing demand back to Toronto, like prior to the time Millennials moved into the homebuying age groups. Read the blog here: https://lnkd.in/gHbrAWzY