Tag: affordability

Contrary to Perception, Little Difference Between Young and Old DTI Ratios

September 06, 2019 by Zelman & Associates

Earlier this week, Home Mortgage Disclosure Act (HMDA) data for 2018 was released. The annual dataset is enormous and serves as the primary baseline for most analyses of the mortgage market and its participants. This year also includes numerous ...

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Filed Under | affordabilitymortgage

Alarming Increase in Mortgage Debt-to-Income Ratios Reverses Course

July 26, 2019 by Zelman & Associates

Late last year, the average mortgage debt accumulated by homebuyers relative to their income was quickly rising, which was attributable to home price appreciation outpacing income growth, spiking mortgage rates and more lenient underwriting ...

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Filed Under | affordabilitymortgage

As “Crisis” Calls Mount, an Eye-Opening Spin on Affordability

July 12, 2019 by Zelman & Associates

From 2011-18, national existing home prices and apartment rents have climbed by 50-55% and 35-40%, respectively, easily outpacing 17% income growth for non-supervisory and production employees that represent the vast majority of the employment ...

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Filed Under | affordabilitydemographics

A Fair Premium for New Homes Versus Existing Stock a Complicated Topic

June 14, 2019 by Zelman & Associates

Earlier this week, Redfin, the technology-enabled real estate brokerage, published a study on the valuation premium associated with a garage versus a similar property without one. Across its national analysis, the average premium realized for ...

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Filed Under | affordabilityexisting home salesnew home sales

Warning Lights Flashing Red for Healthcare Costs and Housing Affordability

April 05, 2019 by Zelman & Associates

According to the Bureau of Economic Analysis (BEA), personal consumption expenditures totaled $13.9 trillion in 2018, up 4.7% year over year versus a 5.0% increase in disposable income, which was aided by wage growth and tax reform. The BEA ...

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Filed Under | affordabilitymacro housing

A New Analysis of Homebuyer Leverage Ratios and Entry-Level Implications

February 08, 2019 by Zelman & Associates

In 2018, we estimate that the monthly payment for a typical entry-level homebuyer increased 11% year over year, inclusive of principal, interest and mortgage insurance. The spike was driven by an approximate 40 basis point increase in 30-year ...

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Filed Under | affordabilityentry-levelmortgage

Why an Often-Cited Existing Home Price Measure is Probably Wrong

January 11, 2019 by Zelman & Associates

In its most recent monthly release for November 2018, the National Association of Realtors (NAR) reported that the median price for existing home closings was $257,700, bringing the year-to-date figure to $257,500. With approximately 40% of ...

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Filed Under | affordabilityhome pricing

Some Fascinating Conclusions as Home Affordability Concerns Come into Focus

November 16, 2018 by Zelman & Associates

Over the last year, home price appreciation has averaged roughly 5.5% across the country while the typical 30-year fixed mortgage rate has expanded by almost exactly 100 basis points. A simple calculation results in the average monthly mortgage ...

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Filed Under | affordabilitymortgage

Has the New Home Premium to Existing Homes Gotten Too Wide?

October 05, 2018 by Zelman & Associates

Of late, there is an argument surfacing that new home pricing has become too expensive relative to the existing home alternative. It goes something like this: the median new home price reported by the Census Bureau over the last four quarters ...

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Filed Under | affordabilityhome pricinghomebuilding

Affordability Reportedly at 10-Year Low – Is it Fear Mongering?

August 24, 2018 by Zelman & Associates

Two weeks ago, the National Association of Home Builders (NAHB) published its Housing Opportunity Index, which is intended to frame housing affordability across the country. The index is calculated on a 0-100 scale, with higher values aligned ...

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Filed Under | affordabilityhome pricing