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Years of underbuilding and underinvestment in housing has left communities across America with a shortage of approximately 6 million homes. The housing shortage, coupled with rising mortgage rates and increasing demand, has caused home prices to skyrocket nearly 30% since 2019.
The American Property Owners Alliance (The Alliance) is focused on advancing bipartisan policies that will increase the supply of affordable homes. With our collective voice, we can support housing solutions across all levels of government to ensure a future where the dream of homeownership is accessible to all.
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The biggest problem for America’s housing market is that there aren’t enough homes available. The sales slowdown probably won’t do much to alleviate the situation and over time could make it even worse. The National…
By: Justin Lahard | The Wall Street Journal
As the value of homes rise, many empty nesters are faced with a difficult financial dilemma: stay in a home that’s too large and costly to maintain, or purchase a smaller — but just as…
By: Holly Johnson | Business Insider
Home prices have skyrocketed by nearly 20% over the last year and mortgage rates have risen faster over the past three months than they have in decades. But the high cost to buy a home…
By: Anna Bahney | CNN
One of the advantages to buying a home is that mortgage payments can be cheaper than renting — provided you have enough money saved up to afford a down payment and other costs of being…
By: Mike Winters | CNBC
Throughout America’s history, influential women have shaped the housing opportunities, social services, and vibrant communities we have today. As we celebrate Women’s History Month, The American Property Owners Alliance (The Alliance) is recognizing three female…
By: American Property Owners Alliance
Throughout America’s history, influential women have shaped the housing opportunities, social services, and vibrant communities we have today. As we celebrate Women’s History Month, The American Property Owners Alliance (The Alliance) is recognizing three female leaders who took a stand to create essential resources for those in need and build diverse and resilient communities.Catherine Bauer was an influential leader in the fight for affordable housing. Her forward-thinking approach to housing policy led her to be the primary author for America’s first affordable housing legislation — the U.S. Housing Act of 1937. Bauer influenced housing and urban planning strategies throughout the terms of three different United States presidents.1Patricia Roberts Harris made history as the first African American woman to hold a cabinet position when she was appointed to Secretary of Housing and Urban Development (HUD) in 1977. As HUD Secretary, Harris brought aid to deteriorating neighborhoods and worked to bring business back to impoverished areas.2 Harris was known for her leadership in battling housing discrimination and rehabilitating neighborhoods.Jane Jacobs was a writer and activist who championed a community-based approach to city planning. In Jacob’s 1961 treatise, The Death and Life of Great American Cities, she claimed, “Cities have the capability of providing something for everybody, only because, and only when, they are created by everybody.”3 Jacobs was known for her innovative approach to building vibrant communities that prioritized parks and public spaces that served the needs of residents.These are just a few of the influential women who have or are improving America’s housing opportunities through advocacy and forward-thinking policy. It’s up to us to continue the mission to make housing more accessible and equitable. The Alliance is a nonpartisan, nonprofit that advocates for public policies that support property ownership and strengthen communities. If you’re interested in supporting this mission, join our efforts today.
Home prices are going up, along with mortgage interest rates. Is now the time to buy — before conditions worsen? Read the full article on Yahoo TweetShare [...]Read More...
Homeowners who need financial assistance with their mortgages and other housing-related expenses can apply for help via the Homeowner Assistance Fund (HAF), a federal program designed to help households who have fallen behind due to COVID-19.…
Construction of new homes in the U.S. rose for the third consecutive month in December and data released Wednesday suggests that the frantic pace of building will continue this year. Read the full article on…
By: AP News
The Covid-19 pandemic upended the home-buying process. Historically-low mortgage rates coupled with an inventory shortage created a red hot market with houses selling within hours of being listed, often for well over asking price. Read the…
It was a rough 2020 for the police in the city of Boston. Like every other police force in America, not only were they caught up in the social awakening in the aftermath of the…
By: American Property Owners Alliance
But, could provide a development boon in the future. BY ANTHONY SANFILIPPO Even during the time of COVID-19, there remains a glaring need for affordable housing. Sure, demand is down right now, and with that…
BY ANTHONY SANFILIPPO
Even during the time of COVID-19, there remains a glaring need for affordable housing. Sure, demand is down right now, and with that prices may fall a little bit. But the reality is, an economic recession in the near term will only slow the development of more affordable housing moving forward.
Many local governments have tried to stimulate the development of affordable housing by providing increased funding. However, as a result of the impact of COVID-19, there is a real risk that those same governments might not be able to adequately support such measures – either to build more or to preserve existing affordable housing.
“For the commercial developers who would build the needed affordable housing units, finding the financing necessary - especially from cautious lenders during a time of uncertainty - may be a lot harder to come by.”
In California, where the affordable housing crisis was worse than every other state prior to the pandemic, Gov. Gavin Newsom announced the state will have to significantly slow spending as a result of the response to COVID-19. Specifically, in San Francisco, where low- and middle-income earners rarely find housing they can afford, a budget deficit of more than $1.5 billion is expected.
As for the commercial developers who would build the needed affordable housing units, finding the financing necessary – especially from cautious lenders during a time of uncertainty – may be a lot harder to come by.
Below-market rate debt that comes from government lenders, such as Fannie Mae or Freddie Mac, is likely to become less available. Similarly, the market will make it harder to get the kind of equity desired from low income housing tax credits, which are used in a vast majority of affordable housing projects. This is because they afford tax credits to owners in exchange for financing a residential unit that charges a rent at 60 percent or lower of the median income for a specific area.
Like the lenders, investors are also leery because of the uncertainty of how owners of affordable housing developments are going to manage the shortfall that is sure to come from renters being unable to afford rents during the pandemic.
Federally backed mortgages are allowing for mortgage forbearance for up to six months for these owners/landlords, but that only accounts for about 40 percent of owned multi-family units in the country.
Not only that, owners/landlords are dealing with increased costs because a predominance of residents are staying-at-home through the pandemic. As such, increased trash and higher use of utilities are happening.
But there is a glimmer of hope once COVID-19 is under control.
Affordable housing development could stabilize quickly once there is a return to normal because unlike market-rate housing, the rents in affordable housing are generally below market, meaning the operation risk of managing these properties wouldn’t be as high during a recession.
“With interest rates low and expected to remain that way until the economy rebounds, developers may be able to take advantage and borrow the money they needed to break ground on new multifamily projects."
Additionally, because demand for affordable housing is likely to grow as more Americans lose income, more investors could line up to develop affordable housing once the pandemic passes. Couple that with banks being incentivized by government regulations to process loans for housing in areas deemed low or middle income, and the market for affordable housing could quickly rebound, even during an overall economic downturn.
With interest rates low and expected to remain that way until the economy rebounds, developers may be able to take advantage and borrow the money needed to break ground on new, multifamily projects. The recession may actually lower the cost of land and even make construction costs drop.
Overall, the immediate pipeline for funding of affordable housing is definitely a concern. But once the pandemic passes, the market very well may course correct and in the next 18 to 24 months, a much-needed uptick in this kind of housing could come to pass.
You can spend hours Googling how-to articles on homeownership, but we’ve rounded up these four documentaries on affordable housing to provide you with a one-stop-shop for all relevant information about homeownership. Not only do these…
The nation is struggling with an affordable-housing crisis. There is not enough housing in communities across the country, including here in Philadelphia. This means families must pay more for their housing, renters have less to…
By: Philadelphia Inquirer
President Joe Biden wants to use an historic amount of federal dollars to create more affordable housing in America. But to do so, he is going to have to find his way through a wall…
President Biden recently unveiled his infrastructure proposal, asking Congress to approve $2 trillion in spending. And while much of that proposal involves basic repairs to roads and bridges, as well as upgrades to the electrical…
Many people believe that before buying a home, they’ll need to have 20% of the purchase price ready in cash to use as a down payment. That can make the possibility of home ownership seem…