When home sales weaken, prices typically do, too, providing breathing room for buyers. That's not quite the case now. Home purchases in many areas of the country have dipped, and price gains have slowed. Yet more middle-class Americans are finding that home ownership is unaffordable.Why? Mortgage rates are up after years near historic lows. Price increases have been outrunning paychecks. And at a target price that families with a median income could afford, fewer homes are for sale. Even a modest rise in interest rates has a big impact on homebuyers, particularly in expensive markets, adding hundred of dollars onto the monthly cost of a mortgage.In the past year, the availability of homes that a middle-class family could buy has declined in 86 percent of the largest metro areas, according to an analysis of 49 cities being released Wednesday by the real estate brokerage Redfin and provided in advance to The Associated Press.That figure assumes a 20 percent down payment. If a buyer can … [Read more...] about Home sales are falling, but middle-class buyers are still outpriced
Middle class housing
With a 62 percent electoral mandate, legislative supermajority and large war chest, Gavin Newsom is in a better position than any governor in recent memory to address California’s housing and homelessness crisis. We have too few homes — that cost too much — and the resulting shame of leading the nation in poverty and homelessness. Newsom promised strong action to radically increase home production, from today’s 80,000 to more than 500,000 new units per year. However, expanding rental units and homeless shelters won’t solve the “missing middle” housing plague affecting working Californians. Newsom must also restore homeownership as a top housing priority. Homeownership is our gateway to the middle class: improved education, health, and an intergenerational financial safety net. Prioritizing homeownership also fulfills Newsom’s promise to confront racial injustice. After World War II, while banks were “red-lining” black and … [Read more...] about Newsom must prioritize affordable middle-class housing
The realtor.com data team set out to find the markets with the highest share of homes that a middle-income family could reasonably afford to purchase. Lance Lambert, provided by Published 5:00 am CST, Monday, November 12, 2018 Photo: IStock; Realtor.com Photo: IStock; Realtor.com Image 1 of / 1 Caption Close Image 1 of 1 Photo: IStock; Realtor.com 10 Surprising Cities Where a $60K Middle-Class Salary Can Snag a Sweet Home 1 / 1 Back to Gallery Can America's stressed-out, fought-over, cash-strapped middle class still afford to buy homes? That's the megamillion-dollar question these days. Because while the economy is strong and wages are rising, these gains are being left in the dust by runaway home prices. Combined … [Read more...] about 10 Surprising Cities Where a $60K Middle-Class Salary Can Snag a Sweet Home
So, along with programs to increase housing options for the poor, the plan offers a generous menu to encourage the middle class to commit to the city. The report, which will be opened up for public comment, suggests that the city should expand a fund to assist buyers with down payments. It also recommends eliminating the onerous transfer tax for first-time home buyers. The income cutoffs are quite generous. A family of four earning $105,000 would qualify for both programs. … [Read more...] about It’s not just affordable housing that’s in short supply in Philly. So is middle class housing.
After spending his days teaching AP American history and economics at the public Live Oak High School in San Jose, Calif., Matt Barry drives for Uber. Barry’s wife, Nicole, teaches as well — they each earn $69,000, a combined salary that not long ago was enough to afford a comfortable family life. But due to the astronomical costs in his area, including real estate — a 1,500-square-foot “starter home” costs $680,000 — driving for Uber was a necessity. “Teachers are killing themselves,” Barry says in the new book, “Squeezed: Why Our Families Can’t Afford America” (Ecco), out Tuesday. “I shouldn’t be having to drive Uber at eight o’clock at night on a weekday. I just shut down from the mental toll: grading papers between rides, thinking of what I could be doing instead of driving — like creating a curriculum.” In her book, author Alissa Quart lays out how America’s middle class is being … [Read more...] about Why the middle class can’t afford life in America anymore