Where Rent Is Pricing People Out

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Demand Propels Home Prices Upward 2 days ago Where Rent Is Pricing People Out Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / Where Rent Is Pricing People Out Affordability First Time Homeowners. Freddie Mac Rent 2019-04-03 Seth Welborn Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Affordability First Time Homeowners. Freddie Mac Rent Share Save Sign up for DS News Daily Related Articles The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days agocenter_img April 3, 2019 2,491 Views in Daily Dose, Featured, Market Studies, News Previous: Planning for the Possible End of GSE Conservatorship Next: HUD Secretary Benjamin Carson Responds to DACA Mortgage Questions Governmental Measures Target Expanded Access to Affordable Housing 2 days ago About Author: Seth Welborn Demand Propels Home Prices Upward 2 days ago High rental costs are a burden in many metro areas, and for many who live in the 50 largest metros, average incomes cannot match up with the average rent costs. In a report, Freddie Mac takes a look at not necessarily where rents are highest, but where rents are unaffordable for the average person.“Rental affordability is a significant challenge for metropolitan areas across the United States,” said Steve Guggenmos, VP of Freddie Mac Multifamily Research and Modeling. “The vast majority of the units Freddie Mac finances are affordable. Even so, our research shows that supply just hasn’t kept pace with demand in many metros, and that’s pushing affordable rents out of reach for millions of American families.”Freddie Mac notes that cities such as San Francisco and Washington, D.C., do not make the list due to the higher incomes despite the higher than average rent costs. However, the GSE states that these cities still see that lower income households in these highest cost markets are amongst the most burdened by the lack of affordable housing, even though it is not reflected in the report.“What tends to be lost in the analysis is the impact of high rents on tenants who earn well below the median renter income. Firefighters, police officers, teachers, and other members of a city’s vital workforce earn only modestly more than their suburban or rural counterparts. As a result, they often struggle to afford housing in the communities in which they serve,” Guggenmos said.Miami tops Freddie Mac’s list, followed by West Coast cities San Diego and Los Angeles. Miami, in particular, is impacted by its lower-than-average median income for potential renters, as rents are significantly higher than in other Florida cities.For renters looking to escape high rent costs and move on to homeownership, now may the the best time. Entry level home prices are growing at their slowest pace since mid-2016, and inventory is showing consistent positive growth, as this spring turns into a homebuyer’s market, according to RealEstate.com’s Entry-Level Market Report.”Buying a home for the first time is an incredibly exciting yet extremely stressful time,” said RealEstate.com General Manager Justin LaJoie. “Potential buyers who tested the waters in recent years should have an easier time now, which should be especially good news for anyone who made an offer but lost their bid for a home. First-time buyers can give themselves an extra boost by being well-informed, prepared buyers. And the work they do—contacting more agents, doing more research and visiting open houses—should pay off this year.” Servicers Navigate the Post-Pandemic World 2 days ago Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribelast_img read more

Housing Insecurity Ahead?

first_imgSign up for DS News Daily The Week Ahead: Nearing the Forbearance Exit 2 days ago Zillow recently released a report highlighting the problems that the expiration of government aid is incurring. According to the real estate experts, dark days are ahead when it comes to renters being able to pay their housing. This could have potential implications not just for those directly impacted, but for owner-investors and the larger housing industry that relies on some renters moving up to become homeowners.The report revealed that during this past month of June, 32 million Americans received unemployment benefits from the U.S. government. Yet even with this federal aid, more renters were reported to have been late or completely delinquent in paying their rents than at any other time since the onslaught of the coronavirus pandemic.Zillow recently released a report highlighting the problems that the expiration of government aid is incurring. According to the real estate experts, dark days are ahead for housing. During this past June, 32 million Americans received unemployment benefits from the U.S. government. Yet even with this federal aid, more renters were reported to have been late or completely delinquent in paying their rents than at any other time since the onslaught of the coronavirus pandemic.The bad news continues, with the report predicting that even more renters will be unable to pay on time—if at all—in the weeks ahead. The main reason for this cloudy prediction is that boosted government unemployment aid has expired.More missed payments will likely lead to an increase in housing insecurity. The ramifications of this will not only directly affect renters but also rental investors and owners who also have to make ends meet and rely on renters’ payments in order to do so.  Zillow economist Joshua Clark voiced his take on what exactly is happening, and why: “The rental market has been more affected by the coronavirus pandemic than the for-sale side appears to have been. The steady climb of the past few years has come to an end as rent growth has slowed nationally and prices have outright fallen in a few markets. The saving grace has so far been government aid and eviction freezes, which have provided a lifeline for those who are out of work. But much of that aid has expired, putting many renters and workers who rely on the rental market continuing apace in a vulnerable position.”Rachel Briseño Bruno, a San Antonio-based Realtor, further commented on the current times: ”This is an incredibly stressful time for so many, especially when it comes to people’s homes, the place we go to be safe. Many landlords we work with own one or two properties as an investment for retirement or a child’s college fund, and they are on the hook for mortgage payments on those homes. Losing just one tenant who may have lost a job and moved back home or in with a friend can have an enormous impact.” in Daily Dose, Featured, Journal, News Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Andy Beth Miller is an experienced freelance editor and writer. Her main focus is travel writing, and when she is not typing away from her computer at her home in the Hawaiian Islands, she is regularly roaming the world as a digital nomad, and loving every minute of it. She has been published in myriad online and print magazines, is a fan of all things outdoors, and finds life (and all of its business, technological, and cultural facets) fascinating in their constant evolution. She is excited to spectate as the world changes, and have a job that allows her to bring a detailed account of those constant shifts to her readers at home and abroad. The Best Markets For Residential Property Investors 2 days ago Share Save 2020-08-05 Christina Hughes Babb Previous: Navigating Distressed Asset Investment Next: How to Streamline Mortgage Servicing Related Articles Home / Daily Dose / Housing Insecurity Ahead? Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Andy Beth Miller Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago August 5, 2020 877 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Housing Insecurity Ahead? Subscribelast_img read more