The number of households severely burdened by rent—or those spending more than 50 percent of their income on rent—is set to rise at least 11 percent from an estimated 11.8 million this year to 13.1 million by 2025, with the largest increases expected among older adults, Hispanics and single-person households, according to new research from Harvard University's Joint Center for Housing Studies (JCHS) and Enterprise Community Partners. More than one in four renters, or around 11.2 million households, were severely burdened, according to 2013 data, up by more than 3 million since 2000, the study noted. Adding in those facing "moderate" burdens—or spending 30-50 percent of income on housing—brings the total to just under half of all renters, the study said. "We are now seeing more renters than at any other time in U.S. history," the study noted, citing figures showing homeownership rates have fallen from a peak of 69.2 percent of householders in 2004 to 63.4 percent in the second quarter of this year, the lowest since 1967. At the same time, "the private sector is unable to supply new units at rents low enough to reach low-income renters," the study noted, with the median rent of newly constructed units at $1,290 in 2013, about half the median renter's monthly household income. Rents and occupancies are currently hovering at historic highs as supply isn't keeping up with demand. While apartment construction has seen strong growth over the past three years, construction of multifamily homes, such as apartment buildings, fell to next to nothing amid the housing bust and the new units are meeting with pent-up demand.
At $1,290 a month a consumer could afford a house!
Here is the break down:
VA (With a disability rating), could afford a $230,000 home (based upon a 4% interest rate, coupled with $900 a year property taxes, and $1200 a year for home owners insurance.) @ $1274 a month.
FHA (First time buyer), could afford a $200,000 home (based upon 4.25% interest rate, coupled with 3.5% down payment, $900 a year properties taxes, and $1200 a year in home owners insurance) @ $1279 a month.
Conventional (10% down), could afford a $235,000 home (based upon 4.15% interest rate, coupled with $900 a year property taxes, and $1200 a year in home owner insurance) @ $1282 a month.
Author:Michelle Mojica Phone: 602-687-0617 Dated: September 23rd 2015 Views: 555 About Michelle: ...
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Mojica & Associates Real Estate has over 55 years of combined real estate experience here in the Valley. Concentrating on evolving trends in a rapidly growing market, we specialize in finding the perfect opportunity for first time buyers, families looking to upgrade their home, 2nd home buyers and investors. Whether you are looking for the perfect place to hang your hat or finding qualified buyers to purchase your current property at top market prices, we can get it done for you.
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