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Posts Tagged ‘one million’

Gov. Brown Signs Bill Giving LLC Residents a Voice

September 27th, 2013 Comments off

Following a story we last posted Sept. 11, 2013 regarding a California measure that would give land lease community (LLC) residents and local jurisdictions a voice when community owners seek to redevelop the real estate, MHProNews has learned Gov. Jerry Brown signed the legislation into law. While local government has no actual power to prevent the conversion of the property even if a majority of community residents do not approve, SB 510 will avert costly litigation that has plagued dozens of cities because the law of property rights has not been clear. Sponsored by Rep. Hannah-Beth Jackson (D-Santa Barbara), Ventura County Supervisor Steve Bennett says, “This bill protects affordable housing, protects local governments and taxpayers, and brings closure to many years of litigation over this issue.” As noozhawk.com says, there are approximately 5,000 lLLCs in California comprised of one million residents.

(Photo credit: nbcsandiego.com–manufactured homes in Calif.)

Millennials not Quick to Buy Home

September 19th, 2013 Comments off

A USA Today survey of Census Bureau data reveals the Millennial Generation, those between 25 and 34, buoyed the renters’ ranks by some one million from 2006 to 2011, while homeownership dropped nearly 1.4 million. For some of that generation renting is a result of liftstyle and finances—they may take another job elsewhere, and in some cases do not want the ties that come with homeownership. Rental agents say occupants are older, more often single and are staying longer than they have in the past. Equity Residential has left behind properties in smaller markets like Detroit and Minneapolis and delved into major markets like New York, Boston and San Francisco. “I think they are embracing the social lifestyle of high-density urban living,” says Equity Residential CEO David Neithercut of the young adults. However, as MHProNews has learned, a Trulia survey in June revealed that 94 percent of renters 18-34 still plan to own a home someday.

(Image credit: rentdirect.com)

Lot Shortage Sidetracks New Home Construction

September 5th, 2013 Comments off

A National Association of Home Builders (NAHB) survey reveals a shortage of buildable lots is contributing to the lack of a more robust housing market recovery. “In our August 2013 survey, 59 percent of builders reported that the supply of lots in their markets was low or very low—up from 43 percent September of last year, and the largest low supply percentage we’ve seen since we began conducting these surveys in 1997,” said NAHB Chief Economist David Crowe. “One reason is that many residential developers left the industry, abandoned certain markets or simply stopped buying land and developing lots during the downturn.” The shortage of lots leads to a higher price for the lots, which is ultimately passed on to the home buyer, further stymying a fuller recovery. Housing starts bottomed out at 550,000 in 2009, and has risen to just under 900,000 annually according to the Census Bureau. MHProNews has learned starts averaged 1.5 million from 1960 to 2000, always above the one million mark until 2008.

(Image credit: Fotosearch)

Most Housing Market News is Good, except…

August 1st, 2013 Comments off

The latest data from Harvard University’s Joint Center for Housing Studies reports the rise in housing prices, while lauded by many, is driving many potential home buyers out of the market because incomes are not rising along with home prices. From 2001 to 2011 the number of households paying over 50 percent of their income for housing rose 6.7 million, an increase of 49 percent. This rise in households (includes renters) severely burdened has hit record highs, just as millions of federal rent subsidies will expire over the next ten years. As MHProNews has learned from creditwritedowns.com, the market is demanding one million new residential units annually. If construction cannot keep up this pace, home prices and rents will continue to rise, and if incomes do not then rise, the housing cost burden will spread to more households.

(Image credit: shutterstock–deflated)

Abandoned Homes Continuing to Hold Back the Market?

April 24th, 2013 Comments off

According to nationalmortgagenews, banks are the ones walking away from vacant homes these days, starting but not completing the foreclosure process because they do not want the responsibility for maintaining the property, resulting in hundreds of thousands of homes being withheld from the market. In some cases, homeowners who have already left the property are being hit with back taxes, repairs, insurance and unpaid debt. Thomas Fitzpatrick, an economist in the community development department at the Federal Reserve Bank of Cleveland, states “We’re seeing more and more, banks getting a judgment to sell a home but not taking it to a foreclosure sale. It may cost more to cure the back taxes and bring the property up to code than they could ever get from selling the property itself.” Data from RealtyTrac indicates 35 percent of the roughly one million homes in the foreclosure pipeline are abandoned and the servicer has not taken title to the property. Last year the Federal Reserve issued directives requiring servicers to notify borrowers and municipalities when they decide not to pursue foreclosure, but no time line was given and enforcement can be difficult. MHProNews has learned this may be contributing to the increase in prices on existing homes. Says Ruhi Maker, a senior staff attorney at the nonprofit Empire Justice Center in Rochester, N.Y. “I have long been convinced that the current run up in home prices is a false high. Once all these foreclosures are through the system we could see another decline in prices.”

(Image credit: condometropolis)

New Home Construction Tops One Million

April 16th, 2013 Comments off

As MHProNews has learned from CNNMoney, the seasonally-adjusted annual rate (SAAR) of housing starts topped one million in March for the first time since June 2008, 1.4 million, seven percent better than Feb. 2013 and a 47 percent improvement since last March, primarily attributable to the growth in multifamily construction (five or more units). The rental market is growing due to younger workers who have been living with their parents are moving into rentals as the job market picks up. Former homeowners who experienced foreclosure and/or bankruptcy continue to enter the rental market. Kevin Finkel, of Resource Real Estate, owner of 24,000 rental units, says the shortage will last for years. “We have had a very weak supply of apartments for almost 20 years now,” he says. The rising cost of supplies and shortage of construction workers could, however, dampen the recovery.

(Photo credit: nakedphilly)

S. Fla. Market Heating Up

March 15th, 2013 Comments off

With occupancy rates hovering near 97 percent in the South Florida apartment market, the bidding for Class A multi-units is so competitive many investors are seeking out lesser quality buildings, according to worldpropertychannel. In 2012 sales of multifamily units in the one million to ten million-dollar range reached $490 million, the highest number in five years. House prices rising 20-25 percent in the past two years is driving the rental market. Richard Tarquinio of CBRE in Ft. Lauderdale says more apartments are under construction but it will take a few years for the pent-up demand to level off. Many of the investors are foreign nationals from around the globe who have cash, MHProNews has learned.

(Image credit: Ellenberg Fraser/sydneymorningherald)

MHC Residents Gather over Rent Control Issue

March 13th, 2013 Comments off

GTWeekly informs MHProNews residents and former residents of De Anza Mobile Home Park in Santa Cruz, Calif. gathered recently to discuss the community’s loss of rent control in 2003 after a four-year federal battle between the city and what is now Equity LifeStyle Properties (ELS). The judge ruled rent control unconstitutional, which allowed ELS to raise site rents to market rate. However, the court did allow residents to enter into a 34-year lease that maintained rents at their previous level, but once the MH changes hands, the rent can go up unfettered, which in turn makes it more difficult for owners to sell and thus regain the equity in their homes. Ishbel Dickens, executive director of the National Manufactured Home Owners Association, says, “How about you start working for rent control at the state level? There are one million individuals living in manufactured housing communities in California. That’s a loud voice to take to the legislature. Don’t agonize—organize.”

(Photo credit: Santee Patch–Santee, CA)

Construction Jobs Adding Up

March 11th, 2013 Comments off

U.S. employers added 236,000 jobs in February, including 48,000 construction jobs, reflecting the upswing in the housing market. As MHProNews has learned from CNNMoney, the unemployment rate dropped to 7.7 percent, its lowest level since 2008. In the last five months builders have added 151,000 construction jobs, the highest number in seven years. Home prices, sales and building permits are up, foreclosures and interest rates are down, and the National Association of Home Builders (NAHB) says residential construction employment will be five times the rate in 2012. Still, the industry remains one million workers short of the levels seen in 2003. Meanwhile, the real estate industry added 13,400 employees in the last three months.

(Photo credit: National Association of Manufacturers)

Home Improvement another Positive Housing Sign

January 28th, 2013 Comments off

Door and Window Market Magazine states a study by the Joint Center for Housing Studies at Harvard University indicates the market for remodeling is being stimulated by foreclosures being revitalized, seniors retrofitting their homes in response to changing needs, and energy conscious homeowners making their homes more sustainable. Homeowners over 55 accounted for more than 45 percent of all home remodeling, up from about 30 percent a decade earlier. Joint Center Director Eric S. Belsky says, “After limited spending during the housing bust, renovating the more than one million distressed properties that were sold in 2011 contributed nearly $10 billion to home improvement spending. With about three million more foreclosures and short sales in the pipeline, there is even more such spending ahead of us.” The study showed market spending on energy-related projects increased from 23 percent in 2007 to 33 percent four years later. MHProNews understands some of the remodeling uptick is the result of refinancings that save borrowers on their house payment.

(Photo credit: digplanet)