Housing News Roundup: June 24, 2015
D.C. Expects to Add 410K Jobs in the Coming Years…But Where Will People Live?
More jobs will mean an increase of 410,000 new households over the next eight years in the Washington, D.C. area. The rise of new jobs will be sparked by an increase in low-income jobs combined with the retirement of Baby Boomers. While the region is already working to assist those who earn less than the median income, many wonder where exactly the new workers will be able to live. The area is expected to have 2.5 million households by 2023, and an estimated 36 percent will be low-income households. Many of the new and open jobs will be available in northern Virginia; nearly half of them will be located in Fairfax County, Fairfax City and Falls Churchs as a result of the Silver Line Metro corridor.
Source: The Washington Post
In New York City, Renters Outnumber Owners of All Ages
Recently released data from American Housing Survey confirms that the number of renters in New York City outnumbers owners at nearly every stage of life. According to Census data, New Yorkers start to own homes at much later ages than in other large American cities. Compared to other metro areas such as Philadelphia, Washington, D.C., or Boston, buyers begin to overtake renters by age 35. However, in New York, there are almost four times as many renters than homeowners in their 30s, and owners balance out renters only once residents reach their fifties.
Source: City Lab
Church Sees New Life as an Affordable Housing Development
Back in 2002, with their building in disrepair and their congregation dwindling, leaders of the First Baptist church in Clarendon, Va. considered selling their property and walking away. Because the main building was only a block away from the Clarendon Metro station, they were considering offers of up to $10 million. Instead, they decided to create a nonprofit development corporation and sell the air rights to build affordable housing over a new sanctuary. Overcoming challenges in public and political controversy, the development was completed in 2011. Today it houses families in both dedicated affordable units and in market-rate units that helped finance the deal and has drawn interest from other churches facing similar financial difficulties.
Growth in Home Values Expected to Slow in S.F.
Rents in San Francisco are escalating at the nation’s fastest pace, but growth in the region’s home values is expected to be cut in half over the next year, according to a new Zillow analysis. This change will come as a shock as both renters and homeowners, and puts San Francisco behind Denver, Dallas and San Jose as the fastest growing large markets. Next year, growth in the home-value index is expected to slow to an annual rate of 5.3% in San Francisco and 4.7% in San Jose. Zillow Chief Economist Stan Humphries explains, “What we’re seeing is the passing of the baton — as mortgage rates begin to rise and incomes and household formation rates increase — from a stimulus-driven housing market to one driven by fundamentals.” While Humphries says “This transition from housing recovery to a more normal market is a good thing in the long-term,” it may cause some turmoil in the more immediate term.
Source: Biz Journals
Immigrant Investors Help Fund Affordable Housing
Developers around the country are increasingly using EB-5, a government visa program that provides U.S. green cards in exchange for investments in American businesses, as a way to fund affordable housing. In San Francisco, 30% of the units in the new Shipyard development will be dedicated affordable housing, and the project’s financing includes millions of dollars from immigrant investors. The city’s lack of available units across market types and its dense population mean that oftentimes, residents must outbid one another for available units. Funds from the immigrant investor visa is helping to increase the affordable housing stock in Houston.
Source: The Houston Chronicle