The national rental housing market is lacking 7.2 million affordable and available rental units for the 10.4 million Americans with extremely low incomes, according to a new study released by the National Low Income Housing Coalition (NLIHC). The data published in NLIHC’s report “The Gap: The Affordable Housing Gap Analysis 2016” shows that 75 percent of extremely low income (ELI) renter house-
NLIHC. “What is frustrating is the lack of timely action to address the issue. Millions of people in America are living in unaffordable rental homes. They are forced to cut their spending on food, transportation and health to pay rent.”
Freddie Mac: Housing is Mostly Steady
The U.S. housing market remains on
solid footing in most markets, according to data released by Freddie Mac in its latest Multi-Indicator Market Index (MiMi) report. The national MiMi value, as of January, stands at 82.7, a 0.18 percent monthly uptick as well as a 1.46 percent quarterly increase and a 7.57 percent year-over-year growth. Thirty-four states and the District of Columbia registered MiMi values within range of their benchmark averages, with the District of Columbia (101.8), North Dakota (96), Hawaii (95.6), Montana (95.1) and Utah (94.5) ranking in the top five. Fifty-six of the top 100 metro areas also had MiMi values within range, continued on page 66
31
n National Mortgage Professional Magazine n APRIL 2016
Report: Low-Income Renters Find Minimal Housing Choices
holds spend more than half of their income for housing, leaving them without inadequate funds for basic necessities and unexpected emergencies. NLIHC estimates that ELI renter households account for 24 percent of all U.S. renter households. Furthermore, NLIHC found 20 states have fewer than the national average of 31 affordable and available units per every 100 ELI households, with Nevada offering the least opportunities with 17 affordable and available rental units every 100 ELI households. No U.S. metropolitan area has more than 46 affordable and available units per 100 ELI households. “The Gap reveals an alarming reality about housing for extremely low income households,” said Andrew Aurand, vice president of research at
NationalMortgageProfessional.com
consumers are confident in the economy and their own understanding of the homebuying process, suggesting they are becoming more self-reliant with the homebuying experience. The Owners.com survey found 80 percent of homebuyers are confident that the 2016 homebuying environment will be as good as or better than it was five years ago, and 92 percent say that mortgage interest rates are “somewhat to very important” to their decision on when to buy. Sixty-nine percent of respondents gave themselves an “A” or “B” grade when it comes to understanding the homebuying process, suggesting confidence in their ability to self-navigate the real estate market. “Consumers are heading into the spring home buying season with a positive outlook, according to our findings,” said Steve Udelson, president of Owners.com. “Homebuyers also indicate a willingness to go online and handle more elements of the real estate process themselves in order to save time and money—a trend we expect to continue this year and beyond.” According to the survey responses consumers are now more inclined than ever to use technology to facilitate key parts of the real estate transaction. Seventy-three percent of survey respondents would use online sites to search for properties, more than half (53 percent) are inclined to book home tours online, 43 percent would consider online financing products and 27 percent would make a purchase offer online. When thinking of luxury must-haves in their new home, 29 percent of the respondents dream of a fully-equipped smart kitchen, with 19 percent wanting a spa bathroom. Respondents cited upgrading to a better home (33 percent), wanting to invest in real estate (25 percent) or relocating to a new area (24 percent) as the reason for their interest in a home purchase this year. The Owners.com Consumer Real Estate Index was conducted online among a random sample of 1,000 consumers who are likely homebuyers in 2016.