flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Harvard releases the State of the Nation’s Housing 2014

Harvard releases the State of the Nation’s Housing 2014

The report highlights the ongoing affordability challenge facing the country.


By Joint Center for Housing Studies | June 30, 2014
One key to realizing the millennials potential in the housing market is for the
One key to realizing the millennials potential in the housing market is for the economy to grow to the point where their income

The U.S. housing recovery should regain its footing, but also faces a number of challenges, concludes The State of the Nation’s Housing report released by the Joint Center for Housing Studies of Harvard University. Tight credit, still elevated unemployment, and mounting student loan debt among young Americans are moderating growth and keeping millennials and other first-time homebuyers out of the market.

“The housing recovery is following the path of the broader economy,” says Chris Herbert, research director at the Joint Center for Housing Studies. “As long as the economy remains on the path of slow, but steady improvement, housing should follow suit.”

Although the housing industry saw notable increases in construction, home prices, and sales in 2013, household growth has yet to fully recover from the effects of the recession. Young Americans, saddled with higher-than-ever student loan debt and falling incomes, continue to live with their parents.  Indeed, some 2.1 million more adults in their 20s lived with their parents last year, and student loan balances increased by $114 billion.

Still, given the sheer volume of young adults coming of age, the number of households in their 30s should increase by 2.7 million over the coming decade, which should boost demand for new housing. “Ultimately, the large millennial generation will make their presence felt in the owner-occupied market,” says Daniel McCue, research manager of the Joint Center, “just as they already have in the rental market, where demand is strong, rents are rising, construction is robust, and property values increased by double digits for the fourth consecutive year in 2013.”

One key to realizing the millennials’ potential in the housing market is for the economy to grow to the point where their incomes start to rise. Another important factor is how potential GSE reform will affect the cost and availability of mortgage credit for the next generation of homebuyers, which will be the most diverse in the nation’s history. By 2025, minorities will make up 36 percent of all US households and 46 percent of those aged 25–34, thus accounting for nearly half of the typical first-time homebuyer market.

The report, as well as an interactive map released by the Joint Center, also highlights the ongoing affordability challenge facing the country, as cost burdens remain near record levels and over 35 percent of Americans spend more than 30 percent of their income for housing. The situation is particularly grim for renters, where 50 percent are cost burdened and 28 percent are severely cost burdened (meaning they spend over half of their income for housing).

“When available, federal rental subsidies make a significant difference in the quality of life for those struggling the most,” says Herbert. “Between 2007 and 2011, the number of Americans eligible for assistance rose by 3.3 million, while the number of assisted housing units was essentially unchanged. Sequestration forced further cuts in housing assistance, which have yet to be reversed.”

Related Stories

| Aug 7, 2012

McCarthy tops out LEED Platinum-designed UCSD Health Sciences Biomedical Research Facility

New laboratory will enable UCSD to recruit and accommodate preeminent faculty.

| Aug 7, 2012

Pankow names Lum new CEO

Lum joined Pankow in 1980 in Hawaii and has held leadership roles in Pankow’s Honolulu and Northern California regional offices and was appointed president of the firm in 2009.

| Aug 7, 2012

Suffolk Construction builds new Boston Tea Party Ships & Museum

Construction management firm links history with the future by building museum using state-of-the-art virtual models and BIM technologies.

| Aug 7, 2012

Essex Builders to build church in Somerville, Mass.

The project’s design documents were prepared by Boston Bay Architects and reflect the church’s mission to serve the broader community as well as worship.

| Aug 6, 2012

Johnson Controls GWS appoints Genemaras as COO

Genemaras brings a wealth of experience in international business operations.

| Aug 6, 2012

Welton promoted to principal in Thornton Tomasetti’s Denver office

Welton serves as the manager of the firm’s Denver office and has more than 30 years of structural engineering experience across a range of project types including sports, commercial and residential.

| Aug 6, 2012

Kibby has joins the Harmon team

Kibby has over 24 years of experience in the glazing industry, coming to Harmon from Architectural Wall Systems where he worked in business development.

| Aug 3, 2012

Goettsch Partners opens new Abu Dhabi office

The GP Abu Dhabi office is managed by Steven M. Nilles, FAIA, LEED AP, a partner in the firm and resident of Abu Dhabi.

| Aug 3, 2012

Pinto promoted to VP in Thornton Tomasetti’s Philly office

Project experience includes commercial and residential buildings, government facilities, sports venues, airports and hotels.

| Aug 3, 2012

Nonres construction spending to increase through 2012, growth projected for 2013

Commercial and industrial projects poised to lead building sectors.

boombox1
boombox2
native1

More In Category




Great Solutions

41 Great Solutions for architects, engineers, and contractors

AI ChatBots, ambient computing, floating MRIs, low-carbon cement, sunshine on demand, next-generation top-down construction. These and 35 other innovations make up our 2024 Great Solutions Report, which highlights fresh ideas and innovations from leading architecture, engineering, and construction firms.

halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021