Home / Daily Dose / Will ‘Unaffordable’ Homes Ever Become ‘Affordable’ to Millennials? in Daily Dose, Featured, Market Studies, News While buying a home that fits the definition of “unaffordable” to millennials (age 25 to 34) according to the federal government—that is to say, a home with monthly mortgage payments that exceed 31 percent of the household’s monthly income—is generally a bad idea, research released by Trulia on Wednesday indicates that sentiment may be reversing its field.In many housing markets that have seen strong wage and income growth, the share of a household’s monthly income put toward a mortgage payment is shrinking, hence the once “unaffordable” house could become affordable within a matter of just months in some cases, according to Trulia. Interestingly, the majority of the markets where unaffordable houses become affordable over the life of a 30-year mortgage (or are already affordable) are in the northeast or on the east coast (Providence, Rhode Island; Newark, New Jersey; New Haven, Connecticut), while the majority of those markets that are defined as unaffordable and likely to stay that way are located on the west coast (primarily in California).Initial mortgage payments are already affordable to millennials in 73 out of the 100 largest housing markets in the country, according to Trulia—in other words, the initial mortgage payments make up 20 percent or less out of that household’s monthly income. In a market where house prices are low and income growth is strong, such as Columbia, South Carolina (another market in the eastern U.S.), the payments begin the life of the mortgage as 17 percent of the household’s monthly income; by the end of the life of the loan, the payments drop to 6.6 percent. The households in the top 10 affordable markets all will end up paying less than 7 percent of their monthly income toward their mortgage payment by the end of the loan. The top five affordable markets are all in the eastern part of the country: Detroit, Birmingham, Pittsburgh, Akron, and Columbia.In 17 out of the largest housing markets, however, a median price home is defined as unaffordable to millennials; but the good news is, though the monthly payments may be initially unaffordable, it becomes affordable in less than two years into the life of the mortgage in markets like Washington, D.C.; Silver Spring, Maryland; Madison, Wisconsin; and Tacoma, Washington. Even in some pricier east coast markets like Boston, Cambridge, and Long Island, due to strong predicted wage growth, the median price home will become affordable to a millennial six years after purchase.New Haven, Connecticut, was the market with the largest expected decline in percentage of monthly income put toward a mortgage payment over the life of a mortgage, due to projected strong income growth in that area. Millennials purchasing a median priced home in New Haven now can expect to pay 37 percent of their monthly income toward a mortgage payment; by the end of the loan, that share will drop to 11.2 percent, a decline of more than 25 percentage points, according to Trulia.“Buying a home is one of the biggest financial decisions a household can make,” Trulia said in the report. “In general, buying is a better financial decision than renting, but at the same time, median housing prices in several markets are unaffordable and down payments can be hard to come by. So the decision can be tough. If households plan on staying in their home for a long period of time, buying an unaffordable home probably isn’t a terrible idea. If a household moves often, it’s almost certainly a better idea to rent.”To read the complete study, click here. Tagged with: Housing Market Millennials Wage and Income Growth Previous: Activists Urge White House Not to Abandon GSE Reform Next: High Rents Put Would-Be Homebuyers in a Catch-22 Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Save Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Housing Market Millennials Wage and Income Growth 2015-11-11 Brian Honea Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. About Author: Brian Honea The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Print This Post Subscribe The Best Markets For Residential Property Investors 2 days ago Will ‘Unaffordable’ Homes Ever Become ‘Affordable’ to Millennials? November 11, 2015 3,528 Views Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily The Week Ahead: Nearing the Forbearance Exit 2 days ago
Read Full Story Nachman Shai, a former journalist who currently serves as a member of the Knesset, spoke to the Shorenstein Center about the rise of “soft power” as the dominant force in “asymmetric confrontations” between strong and weak powers.Now that the battle has moved from hard power to soft power, Shai pointed out, Israel must “showcase its moral standards.” This moral capacity has always been a component of Israel’s national identity, but “not the whole story.” Now, Shai said, “military and economic power are not enough in and of themselves.”According to Shai, the media has played a significant role in this shift from hard to soft power. “In the Palestine conflict,” he said, “Israel used to enjoy a monopoly over the flow of information.” But Palestine has “learned to play the game.” It has “developed communication perception…and created an alternative source of information from Israel’s.” He cited instances of individual journalists who were willing to go along with Palestine’s stipulations in order to get access to stories.The Internet has shifted the conversation so that now, weaker powers receive more news coverage than in the past when there was only a centralized media source. Shai concluded that in order to win the soft-power battle, Israel needs to continue marketing itself as a “country of ideals, moral values and high-tech innovation.”Listen on SoundCloud
By Sharon DowdyUniversity of GeorgiaTwenty years ago, Terry Chandler and his wife, Deborah, moved their family to a 200-acre farm in Madison County. The land was in terrible shape. The only thing it had was potential. They worked hard to improve it, and for their efforts Gov. Sonny Perdue awarded them the fourth annual Governor’s Agricultural Environmental Stewardship Award.The award — given during a ceremony to kick off National Agriculture Awareness Week in Atlanta on March 17 — honors farmers who incorporate environmentally friendly practices on their farms, creating a sustainable system.“Georgia’s agricultural community is innovative and resilient,” Perdue said. “They will emerge from this challenging [economic] time stronger and even more focused on providing great products, running efficient operations, and utilizing cutting-edge technologies to bring food to the tables of Georgians and people all around the world.”When the Chandlers arrived at Still Water Farm in Danielsville, its top soil was long gone. Almost all the structures, including the farm house and hog floor, were overgrown, collapsed or both. The jungle of Chinese privet stood strong.The pond was silted in and the dam was about to collapse, too. The land needed some care and proper stewardship to rebound. One million chickens, 24,000 hogs and hundreds of cows later, the farm today is in much better shape.The farm now consists of 145 acres of pasture, 80 beef cattle, 2 chicken houses, 35 acres of timber and produces 700 tons of hay each year. Through it all runs 5 miles of fencing, creating eight 5-acre paddocks and nine 10-acre paddocks. More than 1.5 miles of underground water lines supply water to each paddock.Chandler converted the farm’s old wet area that couldn’t be worked into a wildlife pond. He cleared, sloped and grassed the stream banks and converted the hog-waste lagoon to catch all runoff from the poultry, cattle and hay barn roofs.Four other district stewardship winners were honored by Perdue for their efforts to protect and preserve the environment on their farms: Billy Max James of Cohutta Farms in Ellijay; Tom Bradbury of Bradbury Farms in Montrose; Will Harris of White Oak Pastures in Bluffton; and Clayton Wayne McKinnon of McKinnon Farms in Douglas.District winners received signs for their farms to serve as permanent recognition of their environmental efforts.Chandler doesn’t intend to stop improving his land just because he’s now the state’s top agricultural environmental steward. He plans to construct a manure storage facility and more fencing to protect surface water, impound more water and improve nutrient management.