Housing News Roundup: February 26, 2015
How Much Do You Have to Earn to Afford a House?
Looking for a house? The price might be right in Pittsburgh. A new report finds that the salary needed to buy a median-priced ($135,000) house there is $31,716, the lowest annual wage of 27 metropolitan areas studied. The most expensive median-priced home ($742,900) was in San Francisco, where a salary of $142,448 is the threshold number. Americans still need to earn more than the national median income ($52,250) to afford a home in 11 of the 27 areas reviewed.
Source: Next City
Older Home Buyers Fuel Market for New Homes
A recent Merrill Lynch survey finds that retirees and people nearing retirement will drive the new home market in the next decade. While downsizing to a smaller home is still most common, one-third are choosing to move to larger homes in part to accommodate visiting family members. Eighty-five percent prefer to receive long-term health care in their own homes rather than moving to an institutional setting such as assisted living. The preferences of older adults in retirement will have “widespread implications” for home design and affect how communities plan for aging populations, the survey said.
Source: Los Angeles Times
Student Housing: Out with Traditional Dorms, In with Mixed-Use Spaces
Restaurants, shops and hotels are finding homes near campus housing, as developers are feeding the needs of Millennials who want these amenities within walking distance. Roughly a quarter of new campus student housing is going the mixed-use development route. The next challenge, though, is getting banks to warm up to these projects.
Source: Wall Street Journal
Nashville Looking at Airbnb Tax Revenue to Fund Affordable Housing
Taxes collected from short-term rental businesses such as Airbnb might be steered to a housing fund in Nashville. The Barnes Fund for Affordable Housing provides incentives for developers to build affordable housing, including homes for the elderly and disabled. The expanding short-term rental market is increasingly being looked to as a source of local tax revenue around the country.
Source: The Tennessean