Harvard’s “The State of the Nation’s Housing 2008″ Report

July 7, 2008

Outstanding downloadable report with very interesting data.  Harvard’s “The State of the Nation’s Housing 2008″ Report.

The study presents a dispiriting picture of how severe and structurally ingrained housing affordability challenges have become.  By 2006, 17.7 million households—about 15.8 percent of all households—were spending more than half their income on housing, an increase of 3.8 million just since 2001. Even 34 percent of households with incomes equivalent to 1-2 times the federal minimum wage, and 15 percent with incomes equivalent to 2-3 times this wage, spend more than half their incomes on housing. With the economy spinning out a growing proportion of full and part-time jobs with wages in these ranges, prospects for a meaningful reduction in affordability problems remain dim.

This year’s State of the Nation’s Housing report finds that demand for new homes has dropped well below projected long run demand. House price deflation, tight credit, and consumer concerns over the direction of the economy have kept buyers at bay and some households from forming. The somber conclusion is that if the economy slips into recession or job losses keep racking up, household growth and homeownership demand could fall even more.

Full Report Can Be Found Here

July 8, 2008 - Posted by picklerealestate | Banking, Foreclosure, Investments, Lending, Stats