First-time Buyers Drive Gains (Q3 2018 Homeownership Rate)
Led by another surge in owner household formation, homeownership rates are up again, but those gains are not driven by those who experienced the housing crash and lived to tell about it.
First-time Buyers Drive Gains (Q3 2018 Homeownership Rate)
Led by another surge in owner household formation, homeownership rates are up again, but those gains are not driven by those who experienced the housing crash and lived to tell about it.
Home Buyers Need 7.2 Years to Save Down Payments – 1.5 Years More Than in 1988
In San Jose, Calif., buyers would need a whopping additional 13.3 years. In a handful of major metropolitan areas, the time it would take to save a down payment with a constant savings rate of 10 percent is shorter than it was 30 years ago.
Most Popular Neighborhoods Heading Into Home Shopping Season
The country’s most popular neighborhoods have a lot in common with its most popular celebrities: They tend to be in California.
Black and White Homeownership Rate Gap Has Widened Since 1900
In 1900, the gap in the homeownership rate between black and white households was 27.6 percentage points. It's now 30.3 percentage points, the widest among whites, blacks, Hispanics and Asians – although the difference between white and Hispanic homeownership rates has more than tripled. Asians have seen the largest gains, although their homeownership rate still lags whites.
What Are the Hidden Costs of Selling a Home?
The biggest “hidden” expenses are closing costs, which total $13,357 for the median-valued U.S. home. In San Jose, closing costs for the median valued home total $74,927, while in Indianapolis – which is in a state with no transfer tax – they total $8,604.
Income Doesn’t Determine Whether People Buy Homes, for Now
People will continue to break into the market when and how they can by buying cheaper homes, homes farther out, smaller homes—whatever is feasible. The rub is that as U.S. housing markets continue to burn hot, the feasible options become harder to find for more of us.
Singles Can Afford Fewer Than Half of U.S. Homes — and It’s Worse for Women
It takes a single person almost 11 years to save a down payment for a typical U.S. home – more than twice the time it takes a couple. The wage gap means single men can save down payments faster -- and afford a greater share of U.S. homes than single women.
Changes to Capital Gains Taxes Could Radically Alter the Calculus for Home Sellers
Proposed changes to the laws governing the exclusion of home sales from capital gains taxes would both radically change the time horizon for short-term homeowners considering selling their home and have a potentially huge impact on the inventory of homes for sale.
Breakeven Horizon Shortens Nationally, But Still Lengthening in Most Major Metros
It takes 4.9 years of renting in San Jose before buying a home there is a better prospect – but not because rents in San Jose are affordable: The median rent is $3,600 a month, among the highest in the country. It’s just that the median home value is even less affordable: $992,144.
A Majority of U.S. Households Could – in Theory – Afford to Buy a $300K, Newly Built Home
Almost 60 percent of U.S. households earn enough money to theoretically buy a typical, newly constructed home priced at about $300,000 – and raising the price doesn’t thin the herd of potential buyers as much as may be expected, thanks in large part to very low mortgage interest rates.
