La Vie Boheme no more, US housing data suggests

Los Angeles /
Sep.September 15, 2016 10:30 AM

Sunny days are ahead for middle-class American households.

Fewer renters and homeowners were cost-burdened in 2015 than in previous years, according to an analysis of American Community Survey data cited by the Wall Street Journal. 

About half of all American renters spent more than 30 percent of their income — the threshold for what’s considered a “burden” — on rent in 2014, according to the analysis’ author Jed Kolko, a senior fellow at UC Berkeley’s Terner Center for Housing Innovation. In 2015, however, that rate dropped to just over 49 percent, the lowest it has been since 2008.

Accounting for both renters and homeowners, the overall percent of cost-burdened households fell from 34.6 percent in 2014 to 33.6 percent in 2015, thanks in part to growing incomes and low interest rates. The number of cost-burdened households have been declining for five consecutive years since its peak of 38.1 percent in 2010.

“The big jump in income between 2014 and 2015 helped owners and renters,” Kolko told The Real Deal. “And homeowners with mortgages got an additional boost from declining mortgage rates.”

Overall homeownership has been declining, however, the data shows. Only 949,000 new households created in 2015 — that’s down from the 1.2 million in 2014, though sales have been consistently rising in pace.

But single-family ownership posted an exceptional increase — the biggest year-to-year jump since 2007. In 2015, there were 65.7 million owner-occupied single-family homes, compared to the 65.2 million the previous year.

Kolko projects that this reflects the fact that families who lose their homes during the foreclosure crisis and subsequently became renters in the following years have finally become eligible to buy again. — Cathaleen Chen


Related Articles

arrow_forward_ios
Uncommon Developers' Ryan Hekmat and Jason Larian with rendering of project at 1017-1027 N. Berendo Street (LinkedIn, Works Progress Architecture)
Developer aims to raze three homes for 69 apartments in East Hollywood
Developer aims to raze three homes for 69 apartments in East Hollywood
Render of housing project at 2111 Firestone Blvd. (Los Angeles County)
LA County antes up $163M on four affordable housing projects
LA County antes up $163M on four affordable housing projects
Angel Stadium and State Sen.Tom Umberg (Getty)
New bill could force open bidding in future sale of Angel Stadium
New bill could force open bidding in future sale of Angel Stadium
Hollywood Arts Collective rendering (Hollywood Arts Collective, iStock)
Neighbor hits Safran’s Hollywood Arts Collective with $15M suit
Neighbor hits Safran’s Hollywood Arts Collective with $15M suit
A photo illustration representing the increased sales tax on mansions (iStock)
Measure to add tax on property sales over $5M set for November ballot
Measure to add tax on property sales over $5M set for November ballot
State Sen. Scott Wiener (Getty, iStock)
State bill would fast-track affordable housing at houses of worship
State bill would fast-track affordable housing at houses of worship
Rendering of the proposed project site at 401 Rosecrans and 3770 Highland avenues, Manhattan Beach (Withee Malcolm Architects)
Manhattan Beach planners reject residents’ attempts to trim 4-story apartment complex
Manhattan Beach planners reject residents’ attempts to trim 4-story apartment complex
Standard Communities’ Chris Cruz and the 196-unit Heritage Village complex at 707 West Santa Ana Street in Anaheim (Google Maps, About.Me, LinkedIn)
Standard adds three senior affordable housing complexes across California
Standard adds three senior affordable housing complexes across California
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...