Homes in Large Cities Are Less Affordable Than Ever

first_img Related Articles Home / Daily Dose / Homes in Large Cities Are Less Affordable Than Ever Subscribe  Print This Post The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, News The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago 2020-12-23 Christina Hughes Babb Servicers Navigate the Post-Pandemic World 2 days ago Previous: What Neighborhood Factors Impact Home Values? Next: Unprecedented Equity Could Help Prevent ‘Foreclosure Tsunami’ Homes in Large Cities Are Less Affordable Than Ever Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share 1Save Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Veronica Bradley has covered the consumer packaged goods industry, the tech industry, the healthcare industry, and a few other industries that impact people’s daily lives. When she isn’t researching and writing, she moonlights as an amateur accountant and bookkeeper for a small family brewpub, because unlike most writers, she isn’t afraid of numbers. The American Dream of homeownership is becoming more cost-prohibitive than ever, especially in the country’s largest and most in-demand cities, according to Point2. And the researchers there don’t expect the situation to improve anytime soon.While mortgage rates have been historically low, they’ve been offset by rapidly increasing home costs. The magic number for affordability is 30%—a mortgage over 30% of a household’s income deems that home unaffordable. Fifteen major cities have now crossed that threshold, up from only 13 cities in 2010.While many cities are still under 30%, 51 of the 100 largest U.S. cities have increased in unaffordability. Only 11 of the largest U.S. cities saw a minimum change.And incomes aren’t keeping up with the rising cost of mortgages. Homeowners in the most unaffordable cities would need to make an additional $43,567 annually in order to not be burdened by their mortgages. Fifty-three of the 100 largest cities have home prices increasing faster than wages.Since 2010, Los Angeles has seen home prices increase by 57%, Seattle and Santa Ana have experienced 77% increases, and North Las Vegas and Aurora, CO, have seen 90% and 100% increases. Wages in these cities have increased nowhere close to these amounts, which puts buyers in a bad place.In fact, some of the cities with the fastest rising home prices are cities with slowest increasing incomes. North Las Vegas house prices, for example, are rising 75% more than incomes.The market with the most expensive homes is San Francisco with a median price of $1,239,415. To other California cities, Fremont and San Jose, possess a median home price of over a million dollars, as well. This means that with even a down payment of 20%, a monthly mortgage would be between $4,000 and $5,000 for 30 years.However, not every city is in the same situation. Six cities in the U.S. have mortgages that fall below 10% of annual, average income. Detroit requires about 8% of income, and Cleveland and Toledo, both in Ohio, boast mortgages below 10%. These three cities have all experienced incomes increasing over mortgages. The Ohio cities even saw real estate prices drop.Although lowering home prices isn’t usually considered a good thing, it does allow more people to purchase homes for the first time, which can correct the market over time. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago December 23, 2020 1,665 Views About Author: Veronica Bradleylast_img read more

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Scottish agents using ‘holiday let’ loophole to dodge tenancy legislation

first_imgHome » News » Scottish agents using ‘holiday let’ loophole to dodge tenancy legislation previous nextRegulation & LawScottish agents using ‘holiday let’ loophole to dodge tenancy legislationScottish landlords and letting agents have been targeted by campaigners who claim many are advertising traditional rental properties as ‘sham’ holiday lets.Nigel Lewis17th May 201901,260 Views Letting agents in Scotland are using a loophole to circumvent the country’s ‘indefinite’ rental contract length regulations, it has been claimed.Introduced in 2016 the law, which is similar to proposed regulations being considered for England, replaced short-hold tenancies with indefinite rental contracts in order to give tenants greater security and make it harder for landlords to evict tenants.But housing campaigners in Edinburgh, which is Scotland’s largest private rental market, say they have identified several letting agents and landlords who are advertising properties as ‘holiday flats’ in order to circumvent the rules.Living Rent, a local campaign group, says landlords are offering their properties as ‘holiday lets’ in order to avoid having to register as landlords and avoid the law on tenancy length.Holiday let loopholeIt claims the ‘holiday let’ loophole also enables letting agents to sidestep the legislation and means deposits do not have to be protected and properties are exempt from HMO licensing rules and has been holding protests outside several letting agents in the city. SNP leader Nicola Sturgeon has promised to look into the loophole.“The new, better contracts were hard won by tenants up and down Scotland, demanding better rights and better protections from eviction,” says Emma McGillivray of Living Rent.She said the group, which recently featured on Scottish TV,  is now considering taking legal action against the landlords and letting agents involved.“We welcome the Scottish Government’s consultation on holiday lets, but if they are serious about protecting tenants, they need take action now close this loophole and drastically step up regulation and ensure tenants are safe,” says Megan Bishop, the author of Living Rent’s recent report into the Scottish rental market.Nicola Sturgeon Living Rent SNP tenancies Edinburgh May 17, 2019Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021last_img read more

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