The State of Housing: Competitive and Unequal

The 2019 State of the Nation’s Housing report from the Joint Center for Housing Studies of Harvard University paints a picture of a housing market that is increasingly competitive and unequal. 

MarketWatch reports that the report sends the message “that the way we create housing isn’t working for many Americans.” The market is also incredibly tight: In 2018, the vacancy rate for owner-occupied homes was the lowest since 1995, and the vacancy rate for renters was the same as 2016, hitting the lowest rate since 1985. 

Homeowners have it a little easier than renters, the Harvard researchers conclude, at least in one sense. The share of owners who are cost-burdened keeps falling, and in 2018 hit its lowest level of the century. Also, the amount of equity Americans hold in their homes just keeps rising, along with home prices, providing nest eggs for children’s higher education, small business formation, retirement, and more.

That’s nice work if you can get it, but not everyone can. More areas of the country are increasingly unaffordable. Higher-cost homes mean bigger down payments must be saved – no easy feat when rents are so expensive – or a greater debt burden for those who choose to make small down payments.

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