Housing News Roundup: June 10, 2015
Report: Americans Pessimistic About Social, Economic Mobility
The vast majority of Americans are doubtful when it comes to the possibility of social and economic mobility, according to a new How Housing Matters survey from the John D. and Catherine T. MacArthur Foundation. The report found that 79% of Americans believe people are more likely to fall out of the middle class than to become part of it. “We expected to see some pessimism for this, but the depth and breadth of this is quite profound,” said Rebecca Naser. Respondents indicated that a combination of stagnant wages and increasing housing costs is taking its toll on household budgets.
Source: USA Today
S.F. Mayor Increases Proposed Housing Fund to $300M
San Francisco Mayor Ed Lee has added an additional $50 million to his proposed housing bond, raising the total to $300 million. The additional $50 million would go toward purchasing land for affordable housing in the city’s Mission District. The new deal is believed to be a political compromise between the mayor and Supervisor David Campos, in which the city would focus on acquiring private land for affordable housing development. Campos has been a champion for affordable housing in the Mission District, and has garnered public support among constituents who fear being displaced from the neighborhood. The proposal requires two-thirds of voters’ approval to pass.
Current Housing Dissatisfaction Is Driving D.C.’s Residential Exodus
The promise of employment brings people to Washington, D.C., while a housing makes them leave. According to the new D.C. Office of Revenue Analysis, while 32% of the people who moved to the District from 2000 to 2014 did so because of a job, only 12% left because of a job. About 36% of the people who left the area did so because they wanted higher quality or less expensive housing, to buy a home, or for other housing-related reasons. The median rent for a one-bedroom apartment in D.C. is estimated to be around $2,000 per month.
Source: Washington Post
Where Millennials Can Afford to Buy a Home
Baltimore is the most expensive of the top U.S. housing markets where the average Millennial can still afford to own their own home, according to the new Millennial housing affordability index from Bloomberg. The metro area ranks 21st when it comes to affordability, with a median home value of $248,975, which requires an annual salary of $33,698. The median salary for Millennials in the area is $43,496. The worst market for Millennials is San Jose, where an annual income of $133,377 is needed to buy a home yet Millennials’ median income is just $53,215.
Source: Baltimore Business Journal
Smaller Cities Have Smaller Earnings Gaps
The earnings gap is narrower in smaller cities than it is in larger ones, according to a new analysis from the Brookings Institution. While small cities mirror the income distribution of the nation more closely, large cities have disproportionate shares of the lowest and highest earners. “[T]he more expansive geography of many Southern and Western cities… enables them to take in more middle-income neighborhoods and households [while] deeper levels of inequality and segregation… have long affected cities and metro areas in the Midwest and Northeast,” said Alan Berube of the Brookings Institution. An interactive tool allows users to peruse data among 575 cities, and compare their income distributions.