The annual State of New York City’s Housing and Neighborhoods report finds that homeownership became far less affordable to middle-income residents between 2000 and 2005 as property values skyrocketed, and that the number of subprime loans issued to buyers has increased greatly over the past few years. The report, which is put together by NYU’s Center for Real Estate and Urban Policy, shows that fewer than 5 percent of home sales in 2005 were affordable to residents earning the city’s median income, a drop from the 11 percent of sales that were affordable to such residents in 2000. Adjusted for inflation, the median home sales price in the city increased 68 percent between 2000 and 2005. The report also finds that the percentage of subprime mortgage loans increased to account for 22.9 percent of all home loans issued in 2005, up from 6.5 percent in 2002. TRD
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NYC affordability down, subprime up
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