Results for: Housing affordability

The 2024 US presidential election is heavily influenced by the ongoing housing crisis. Both major parties are presenting solutions to appease worried voters, with Vice President Kamala Harris focusing on increased housing supply and affordability measures, while former President Donald Trump emphasizes immigration policies and energy production to address the issue. The complexity of the crisis, its impact on inflation, and the need for long-term solutions require voters to carefully consider the proposed plans.

The affordability of housing in California has reached its lowest point in nearly 17 years due to a combination of rising home prices and elevated mortgage rates. Only 14% of California households could afford to purchase a median-priced home in the second quarter of 2024, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). This marks a significant decline from the first quarter of 2024 and the second quarter of 2023, and represents less than a third of the affordability peak in 2012.

The Calgary Chamber of Commerce has released a report expressing concerns over the city’s housing affordability crisis and calling for all levels of government to work together to address the issue. The report found that demand for housing is soaring, outpacing the supply, which is leading to a dramatic increase in real estate costs. The chamber emphasized that affordability has been a crucial competitive advantage for Calgary businesses, and the current crisis is making it increasingly difficult for businesses to attract and retain employees. The chamber is urging the government to prioritize the construction of affordable housing, increase the workforce in the construction industry, and reduce regulatory barriers. The report also highlights the importance of collaboration between all levels of government to effectively tackle the housing affordability crisis.

Massachusetts real estate trade groups launch a campaign against Governor Healey’s proposal to tax high-dollar home and commercial real estate sales to fund affordable housing, citing concerns over increased housing costs and unreliable funding.

Queensland Greens are advocating for a two-year rental freeze and a one percent cap on prices in the upcoming October election. They estimate that renters could have saved an average of $5,395 since 2022 if a rental cap had been introduced. The call for further action comes amid a rental crisis in the state, with median weekly rent prices sitting at $550, a 22 percent increase in two years. The Queensland government has already implemented some measures to address the issue, including outlawing bidding and limiting rent increases to once every 12 months. However, the Greens and Anglicare Australia believe these measures do not go far enough and are calling for stricter regulations.

The City of Calgary’s proposed blanket rezoning bylaw, currently under discussion at a historic public hearing, aims to simplify the process of allowing duplexes, triplexes, and rowhouses in most residential areas. However, confusion and concerns have arisen, prompting the city to clarify the details of the proposed changes. The bylaw would not permit highrises and would still require developers to obtain development permits for multi-unit buildings. It aims to streamline the process and reduce costs for homeowners, while allowing for more flexibility in housing options. The public hearing has attracted over 840 speakers, with discussions focusing on affordability, community involvement, and the need for evidence-based decision-making.

The home building sector has faced headwinds in April, with the SPDR S&P Homebuilders ETF (XHB) declining 10%. This decline is largely due to rising mortgage rates, which have reached their highest levels since before the Great Financial Crisis. High mortgage rates have led to a decline in existing home sales, a key indicator for the sector. Housing affordability has also been negatively impacted by high mortgage rates and rising home prices. In addition, home builders are facing increasing incentives to move their inventory, which can negatively impact margins. However, there are also some positive factors for the sector, such as solid balance sheets and falling lumber prices, which can help margins. Overall, the sector is likely to face continued headwinds until yields start to fall significantly and mortgage rates stabilize.

The home building industry faces headwinds from higher mortgage rates, rising housing affordability, and increased incentives from builders. High mortgage rates, which have surged above seven percent, are deterring homebuyers and leading to a decline in existing home sales. Housing affordability has also deteriorated significantly due to the combined effect of high mortgage rates and rising home prices. In response, home builders are offering incentives such as mortgage buy downs and free or discounted upgrades to move inventory, negatively impacting their margins.

Despite these challenges, some positive factors are supporting the industry. The balance sheets of major home builders are generally strong, with low debt-to-capital ratios. Additionally, lumber prices have recently declined, which will help improve builders’ margins. However, the overall outlook for the sector remains uncertain as interest rates continue to rise. Home builder stocks have rallied off their lows but still trade far above recent lows. Until yields start to fall significantly, profit-taking is likely to continue in the sector.

Calgary’s historic public hearing on blanket rezoning commenced on Monday, marking the start of the largest such hearing in the city’s history. With 741 people registered to speak, the hearing will delve into a pivotal housing strategy aimed at addressing the city’s growing housing crisis. The proposal seeks to allow for a wider range of housing types, including townhomes and rowhouses, in areas previously restricted to single-family homes. Despite concerns from opponents about property values, infrastructure, and neighborhood character, proponents argue that the rezoning is essential to increase housing supply and affordability.

A report from Anglicare Australia paints a bleak picture of the Australian rental market, revealing that the national vacancy rate has plummeted to an all-time low of 0.7 percent, while average rents are $200 per week higher than pre-pandemic levels. The report highlights the growing gap between incomes and housing affordability, with only 289 of the 45,000 homes listed being affordable for a person earning a full-time minimum wage. The report emphasizes the need for increased support for low-income earners and calls for reforms to the private rental market to address the widening affordability crisis.