Availability of Affordable Housing a ‘Major Problem’
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But opinions about what is affordable vary based on demographic factors, including income, race, ethnicity and age, research shows.
Amid the Covid-19 pandemic, many prospective homebuyers and renters say the increase in prices is causing a "major problem" for availability and affordability, according to research by the Pew Research Center.
Housing affordability has been a critical public policy issue since the start of the pandemic. In fact, about 49% of those surveyed say the availability of affordable housing in their local community is a major problem. This is up 10 percentage points from early 2018, the Pew research shows.
Meanwhile, about 36% of U.S. adults surveyed said that affordable housing availability is a minor problem in their community, while 14% said it is not a problem, according to the report.
Demographic Differences
The research shows that opinions on the question of housing affordability differ by a variety of demographic factors, including income, race, ethnicity and age.
Most adults living in lower-income households (57%) say the availability of affordable housing is a major issue in their community, compared with those living in middle- (47%) or upper-income households (42%), the report says.
Regardless of income level, city residents typically view affordable housing availability as a larger issue than those living in the suburbs or rural areas. In fact, two-thirds of adults residing in urban metropolitans with lower household incomes (66%) say affordable housing in their area is a major problem, compared with 56% of suburban residents with lower incomes and 52% of those with lower incomes living in rural areas, the research shows.
Research by the National Association of Realtors shows that while the home-price surge slowed a bit In the fourth quarter, 67% of 183 metro markets surveyed had a double-digit increase in the median single-family existing-home sales price. But the percentage was even higher in the third quarter (78%).
As for apartment rents, monthly prices were up 17.6% year over year as of February, according to Apartment List. During the past four months, rents increased by just 0.7%, although February’s 0.6% growth was faster than the pre-pandemic norm for this time of year, the research shows.
“Successful strategies for improving housing affordability are policy reforms that make it feasible for homebuilders and developers to provide more housing, especially at the low-cost end of the market,” Emily Hamilton, senior research fellow at George Mason University, told SciLine in an interview.
For more information from the Pew Research Center report click here.
Andre Claudio is an assistant editor at Route Fifty.
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