The housing market has been recovering from its last crash for almost a decade now. Unfortunately, home prices have been rising too fast for most consumers, which has created vast affordability problems in the U.S. Here is a look at the most important housing trends over the past year:
- Renters are coughing up almost 30% of their income every month
- The new tax reform injected uncertainty into various parts of the housing market
- Homeownership is divided along racial and economic lines
- The mounting affordability problem is forcing some homeowners onto the streets
- Foreign investment in real estate is booming worldwide
Here are the top articles from Zillow research over the past year:
Rental Market – Affordability concerns are affecting the rental market as well as homeownership. Renters now spend about 29.1% of their income on rent, up almost 4% from the historical average.
- How to Save on Rent: Don’t Move
- Calculator: Need a Raise to Cover That Rent Increase?
- Where Renting Pays: Places Where Owning Takes a While to Pencil Out
- 20 ‘Sweet Spots’ for Renters
Tax Reform – The new tax plan made some big changes that will directly affect the housing market. The plan put a limit on state and local tax deductions, reduced the cap on mortgage interest deduction, and doubled standard deduction.
- Tax Reform and Housing: All Your Questions Answered
- How Republicans and Democrats View Property Taxes
- An Estimated 123,000 ‘Dreamers’ Own Homes and Pay $380M in Property Taxes
- Bump in 2018 Conforming Loan Limits Likely to Save Borrowers Thousands
- How Improvements to Housing Vouchers Could Lift More Boats
Inequality – There are still racial and economic divides in homeownership. Many problems were only exacerbated by the housing crash.
- Homes in Black Neighborhoods Twice as Likely to be Underwater as Homes in White Neighborhoods
- For Many Low-Income Households, Even Low-Valued Homes Aren’t Affordable
- Why Blacks and Hispanics Rely On Their Homes for Their Wealth
- Gaps in Economic Opportunity (from 2017 Zillow Economic Forum)
Affordability and Homelessness – The mounting affordability problems means a tighter budget for most people. The housing market has become so unaffordable, however, that many homeowners are becoming homeless.
- Financial Hardship Is Widespread, Especially for Households Earning Less Than $40,000
- Rising Rents Mean Larger Homeless Population
- For Many Low-Income Renters, Even Low-End Apartments Aren’t Affordable
- As Rents Rise, More Renters Turn to Doubling Up
- Healthy Housing: Where Higher Rents Are Correlated With Worse Health
Foreign Buyers – There has been an influx of foreign buyers and investment in recent years, and many fear it is pushing up home prices. Canada’s government already addressed the influx with a special tax.