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Housing Supply

All articles tagged with #housing supply

Midwest Standing Ground: 134 Years of Affordable U.S. Home Prices Highlight St. Louis Advantage
real-estate5 days ago

Midwest Standing Ground: 134 Years of Affordable U.S. Home Prices Highlight St. Louis Advantage

A Fed-backed study analyzing 2.7 million listings from 1890–2006 shows St. Louis, and the Midwest, have stayed far more affordable than coastal cities over 134 years. Inflation-adjusted prices in St. Louis rose about 6%, versus about 1,000% in San Diego/Los Angeles and 354% nationally, due to long-running housing supply, abundant land, slower population growth, and zoning differences. Today St. Louis County median prices are ~$313k and the City ~$240k, with rents near $1,200 and typical 30-year mortgage payments around $1,500 after a down payment and current rates, and roughly 60% of area homes remain affordable per Zillow.

via MarketWatch|
#fed-philadelphia-study#housing-affordability#housing-supply
Trump's housing plan collides with supply reality
business7 months ago

Trump's housing plan collides with supply reality

Trump has floated measures to lower housing costs, including a 50‑year mortgage, large-scale government-backed mortgage‑bond purchases, and a ban on institutional investors buying single‑family homes. Experts warn these steps would offer limited relief or could backfire because the core problem is a long‑standing housing shortage. For example, a 50‑year loan on a $500,000 home at 6.1% could incur about $1.1 million in interest (versus $590k on a 30‑year loan), and in Greater Boston a typical home could see roughly $2 million in interest under such a loan. Critics say extending loan terms primarily shifts debt and may push prices higher if supply isn’t expanded; banning investors could reduce rentals in some markets but won’t fix supply. Real relief, they argue, requires boosting housing supply through zoning reform and new construction; Massachusetts estimates 222,000 new homes are needed by 2035. Separately, Trump moved to have Fannie Mae and Freddie Mac buy about $200 billion in mortgage bonds, which nudged rates down slightly but doesn’t address the supply shortage.

via The Boston Globe|
#50-year-mortgage#business#housing
Twin Cities' Housing Policies: Lessons from Repeated Experiments
economy8 months ago

Twin Cities' Housing Policies: Lessons from Repeated Experiments

Rent control policies, despite their popularity among populists, tend to worsen housing affordability by reducing supply, discouraging maintenance, and increasing initial rents, as evidenced by examples from Minneapolis, St. Paul, Los Angeles, and international cases. Cities repeatedly implement these policies, often leading to negative outcomes like decreased building permits and higher initial rents, with some regions like Argentina experiencing rent drops after abolishing controls. Experts warn that rent caps are counterproductive and suggest alternative approaches to address housing affordability.

via The Washington Post|
#economy#housing-policy#housing-supply
Housing Market Challenges Amidst Fed and Rate Hike Uncertainties
personal-finance1 year ago

Housing Market Challenges Amidst Fed and Rate Hike Uncertainties

The article explains that the housing affordability crisis in the U.S. is primarily due to a long-term housing shortage and rising home prices, rather than solely high interest rates set by the Fed. While elevated mortgage rates contribute to the problem, structural issues like limited supply and high demand are the main factors. Fed policies influence mortgage rates indirectly, but addressing the crisis requires broader efforts including increasing housing supply and wage growth.

via MarketWatch|
#home-prices#housing-affordability#housing-supply
real-estate1 year ago

Mortgage Rates Drop as Housing Supply Increases, Leaving Buyers in a Bind

Demand in the housing market has plummeted, with mortgage applications dropping 39% from 2019 levels, leading to increased housing supply as homes sit longer on the market. Despite mortgage rates stabilizing around 6.9%, high home prices, which surged during the Fed's rate repression in 2020-2022, continue to suppress demand. The collapse in mortgage originations has also impacted the mortgage industry, with significant layoffs. Many potential homebuyers are waiting for prices to fall, incomes to rise, or rates to decrease, keeping the market frozen.

via Wolf Street|
#home-prices#housing-demand#housing-supply
Trump's Return Signals Prolonged High Mortgage Rates
economy1 year ago

Trump's Return Signals Prolonged High Mortgage Rates

Mortgage rates have risen following President-elect Trump's victory and are expected to remain high, according to Redfin's Chen Zhao. Despite Trump's campaign promises to slash mortgage rates and ease building regulations, these are not directly controllable from the White House. Plans to make federal lands available for development could increase housing supply, particularly in the Mountain West, but the impact depends on the specifics of land availability. Trump's focus on mass deportations may affect labor supply for home building, but immigration is not a major factor in the current housing supply crunch.

via Axios|
#economy#federal-lands#housing-supply
"Rising Home Prices: The Growing Affordability Crisis Across the U.S."
real-estate2 years ago

"Rising Home Prices: The Growing Affordability Crisis Across the U.S."

A study shows that homes in nearly half of the 50 states now require a six-figure salary to afford, marking a significant increase since Biden took office. The median price for a home is $402,343, requiring an annual income of $110,871, a 46% increase from January 2020. Factors such as limited housing supply, rising home prices outpacing wage growth, and elevated mortgage rates contribute to the affordability crisis. Housing affordability is expected to be a key issue for voters in the 2024 presidential election, prompting Biden to unveil initiatives aimed at improving affordability, including tax credits for first-time homebuyers and efforts to build and renovate more homes.

via Fox Business|
#biden-administration#home-prices#housing-affordability
"Rising Income Requirements for Homebuyers in Competitive Housing Markets"
real-estate2 years ago

"Rising Income Requirements for Homebuyers in Competitive Housing Markets"

Housing affordability has become increasingly challenging for Americans due to factors beyond high mortgage rates, with the typical household now needing to earn about $106,500 annually to afford the typical home, an 80% increase from 2020. The disconnect between housing costs and wages, along with tight housing supply and restrictive land-use and zoning regulations, are contributing to the issue. Experts suggest that easing zoning restrictions and increasing housing density could help alleviate the affordability crisis, with some areas already seeing a surge in new construction due to relaxed zoning rules.

via CNBC|
#housing-affordability#housing-supply#mortgage-rates
"Biden-Harris Administration's Initiatives to Increase Affordable Housing Supply and Support Manufactured Homes"
politics2 years ago

"Biden-Harris Administration's Initiatives to Increase Affordable Housing Supply and Support Manufactured Homes"

The Biden-Harris Administration has announced new actions to boost housing supply and lower housing costs, including bolstering federal programs for affordable housing, supporting manufactured housing communities, and promoting fairer rental markets. These actions aim to create tens of thousands of affordable homes, make it easier to finance the purchase of manufactured homes, and clarify banned non-rent fees in HUD-assisted properties. The Administration is also providing new resources to prevent unfair evictions and ensure tenants' rights for military service members.

via The White House|
#affordable-housing#biden-harris-administration#housing-costs