Sunday, October 4, 2009

2008 Census: Housing is Getting Even Less Affordable

Yup, the details come from USA Today, which carefully crafts graphs and stories that 7th Graders will understand.  The article covers the costs of both buying and renting.

Locally, wages and median income have not kept pace with the 100-300% increase in asking/selling prices seen in this area since the year 2000.  In many instances, prices look like its 2006 around here; in other instances, are coming down.  This is because supply continues to exceed demand.  Sales are low even with a peak in seasonal demand in July and August PLUS the upto$8k tax cred.  Sales were still double digits % lower than 2008 during the summer, except in the category of attached homes in Albemarle County during July and August.

From the USAT article:
  • More Americans found housing unaffordable last year, even though home prices across the U.S. have taken a major fall. 
  • The number of renters increased, while the number of homeowners declined.
  • Reflecting the rapid pace of foreclosures, the number of homeowners dropped by about 142,000. 
  • From 2007 to 2008 the homeownership rate fell more than half a percentage point, to 66.6% — the lowest level since 2002
  • Many of those former homeowners have become renters, a segment feeling the brunt of steep housing costs. 
  • Overall, the number of renters swelled by nearly 900,000 in 2008 compared with 2007. 
  • More than 40 million spent 30% or more of their household income on housing costs, 600,000 more than in 2007.
Read the article in its entirety, and check out the table of MSAs (Charlottesville is not included--toosmall--but Richmond appears) here.

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