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The drop in real estate prices is beginning to produce a favorable bi-product in many areas of the country – more affordable housing. The new annual Housing Predictor Most Affordable Real Estate Market list has been released, and it pin-points where economic conditions are promising over the next two years, despite fallout from the credit crisis.
The Center for Housing Policy reports that the number of family renters paying more than half their income for housing soared nationally from 1 million to a new record high of 2.1 million during the real estate boom, pricing many out of the housing market. But the trend is beginning to reverse itself.
"A common misperception exists that there are large subsidy and grant programs for housing and these monies can be easily accessed at any time," according to the center. "In reality, public expenditures overall for affordable housing have been decreasing.” Since home prices vary drastically from one area of the country to another, affordable housing means different things to different areas.
There are a variety of mechanisms to make housing more affordable. Units can be built and operated by government agencies, as in public housing. But in large part, the government has stopped subsidizing programs and instead provides subsidies to private for-profit and not-for-profit developers. Many of these programs also include minimum requirements regarding the number of units that must be affordable to people making 30, 50, or even 80% of the area median income.
The strong likelihood of growth and good job stability are high on the list of factors which determine markets that make the annual most affordable list. The affordability of homes in all markets of the country that Housing Predictor tracks is the chief component. Five of the markets are located in the southern half of the country.
Housing Predictor forecasts more than 250 local housing market futures in all 50 states and regularly updates forecasts as local market conditions demand. Find the new most affordable real estate market list and check your market’s forecast at http://www.housingpredictor.com
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