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Most people don't earn six figures, but it's become the new benchmark for whether or not you can afford a typical U.S. home. Americans need to earn an annual income of $110,871 to buy a median-priced home of $402,343 — a 46% increase since January 2020, according to a new Bankrate analysis of Redfin sales data. For context, households currently earn a median income of $74,580, according to the most recent U.S. Census Bureau data available. As a result, the number of places where you need to earn $100,000 or more to afford a median-priced home has climbed from seven to 23 since January 2020. In Montana, the income needed to buy a median-priced home increased 77% since 2020 — the largest jump of all states.
Persons: it's, Bankrate, homeownership Organizations: Census, of Columbia, Washington, Rhode, Center, of Labor Statistics, CNBC Locations: U.S, California, Hawaii, Massachusetts, Colorado, Jersey, York, Utah, Montana, Hampshire, Oregon, Connecticut, Florida, Vermont, Idaho, Nevada, Arizona, Maryland, Virginia, Maine, Texas, Hawaii , Massachusetts, New York, Utah , Montana and Idaho, Midwest, Mississippi , Ohio , Arkansas , Indiana , Kentucky, Iowa, Oklahoma
The couple paid less than usual for the area by going through a community land trust, or CLT. Community land trusts allow low-income homebuyers to purchase homes at a reduced price in exchange for the trust's retaining ownership of the property's land. Community land trusts were an unfamiliar conceptI learned about community land trusts while driving through a neighborhood. It's a community housing organization that offers homebuyer education and also sells affordable homes through a community land trust program. Our lives are much betterWhen buying a land trust home, not only do you have to qualify for the land trust program, but you also have to qualify for a mortgage at the bank.
Persons: Melisa Gomez, Romo, , It's, Gomez, we're Organizations: Service, Romo, Land Trust Locations: Duluth , Minnesota, Minnesotans, Duluth, Fayetteville , Arkansas, . Duluth, El Salvador, Mexican
Sarah WolfeAs Tiffany Mane read a personal finance book during her train ride to work, a woman sitting near her acknowledged that she, too, knew of the author. And there's a cyclical effect at play: Women utilize Dunlap's resources to improve their financial lives, and then share the information with others. A 2021 survey from NerdWallet showed women were less likely to be invested in the stock market than their male counterparts. "This kind of identity-focused personal finance is 100% necessary, and is the future of personal finance." In that group, members share financial wins and trade advice on topics like which banks or credit cards to use.
Persons: Sarah Wolfe, Tiffany Mane, Mane, Tori Dunlap, Dunlap, isn't, She's, Annamaria Lusardi, Lusardi Organizations: D.C, Finance, Facebook, Stanford Institute for Economic Policy Research, Global Financial Locations: Washington, York, NerdWallet
Puerto Rico is becoming an increasingly popular destination for mainland Americans looking to relocate for tax purposes without giving up their US citizenship. Maridav/Getty ImagesBetween 2021 and 2022, about 27,000 individuals moved from the US mainland to Puerto Rico, according to data collected by the US Census Bureau . Related storiesIn 2021, the cost of living in Puerto Rico rose by 7%, the largest jump seen in 40 years. According to data from Realtor.com, the median home price in San Juan, Puerto Rico, in February was $950,000, up 37% in the past year. AdvertisementAccording to the Associated Press, there are now 25,000 short-term rentals in Puerto Rico, up from 1,000 in 2014.
Persons: , Anna, Brock Pierce, Anna aren't, Adrián González Costa, Hurricane Maria, Puerto Ricans Organizations: Service, Puerto Ricans, Business, US Census Bureau, Federal Housing Finance Agency, San Juan, Puerto Rican Independence Party, San Juan Daily Star, Associated Press, AP Locations: Puerto Rico . Puerto Rico, Europe, Puerto Rico, Maridav, Puerto, Realtor.com, San Juan , Puerto Rico, Aguas Buenas, San Juan, San Juan ., AFP
Austinites are heading an hour away, to Killeen, according to real-estate consultancy John Burns. Orlando residents are decamping to Lakeland, Florida, trading nightlife for space, John Burns said. The Austin metropolitan area similarly grew 2.7% in 2021 and 2022, adding 63,000 people, according to the city of Austin. In 2021, 1,607 households moved from Orlando to Lakeland, while 250 households left Austin for Killeen, John Burns said in its analysis, published March 5. The primary reason is affordability, Austin real-estate agent Lisa Copeland told Business Insider.
Persons: John Burns, , Orlando, Redfin, Killeen, Austin, Lisa Copeland, Copeland, Jordan Prais, It's, Prais, Lakeland's, it's Organizations: Service, Orlando, Austin, John, John Burns Research, Consulting, Business, Lakeland, Florida Children's Museum, Army Locations: Killeen, Orlando, Lakeland , Florida, Austin, Killeen , Texas, Lakeland, Central Florida, Austinites, Texas, Fort Hood
A family of four needs to make more than $275,000 to live comfortably in some of the most expensive U.S. cities, a recent SmartAsset analysis reveals. "Comfortable" is defined as the income needed to cover a 50/30/20 budget for a family of two adults and two kids. That's followed by other cities known for having notoriously expensive housing costs, including Boston, New York City, Honolulu and Los Angeles. Out of all 99 cities SmartAsset examined, a family of four would need a median of $226,886 to live comfortably. But that's still higher than the median family income in the U.S. of $92,750, according to the most recent U.S. Census bureau data available.
Persons: That's Organizations: MIT, Boston, New, Urban, Santa, Chula, Seattle, Legislative, Office, for Community & Economic Research, CNBC Locations: San Francisco, Jose , California, Arlington , Virginia, New York City, Oakland, California, Urban Honolulu, Hawaii, Irvine , California, Santa Ana , California, Portland , Oregon, Diego, Chula Vista , California, Newark , New Jersey, Jersey City , New Jersey, Aurora, Colorado, Long Beach , California, Anaheim , California, Angeles, Washington, Francisco, Boston , New York City, Honolulu, Los Angeles, In California, U.S, Houston
More than a third of Gen Z and millennial homebuyers anticipate their families to help with the cost, Redfin says. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementNearly half of Gen Zers and millennials say they aren't keen on buying homes soon due to sky-high prices. "The bigger problem is that young Americans who don't have family money are often shut out of homeownership.
Persons: Gen Z, Redfin, , Z, Zers, Daryl Fairweather, they're, " Fairweather Organizations: Service Locations: America
Then, as the Federal Reserve began its battle against inflation in 2022, mortgage rates shot up, eventually hitting a 20-year high in October. Over the past decade, there's been a clear correlation between mortgage rates and inventory: When mortgage rates fall, the number of available homes for sale at a given moment shrinks. So, yes, waiting it out until mortgage rates decline sure seems appealing. The Federal Reserve has signaled that it plans to drop borrowing rates this year, which would likely push down mortgage rates. Advertisement"People are focusing on mortgage rates because every week they hear about mortgage rates changing," Doerner of the FHFA told me.
Persons: swiping, there's, Mike Simonsen, Freddie Mac, CoreLogic, , homebuyers, Redfin, John Burns, Alex Thomas, There's, Will Doerner, Doerner, They're, Simonsen, it's, Jerome Powell Organizations: Federal Reserve, Buyers, Altos Research, Bank of America, John, John Burns Research, Consulting, Federal Housing Finance Agency, Federal, Fed
With a landmark legal settlement poised to upend a decades-old norm that has dictated who pays real estate agents and how much, economists, agents and lenders are beginning to worry that the burden could now be on first-time home buyers. Buyers may soon have to pay out of pocket for something that had always been baked into the price. “First-time home buyers are usually the people who don’t have much cash and experience — and that experience matters,” said Daryl Fairweather, the chief economist of Redfin, the online brokerage that cut ties with the National Association of Realtors last year. The lawsuit was initially brought by home sellers in Missouri who accused N.A.R. of artificially inflating home prices by coupling commissions paid to sellers’ and buyers’ agents.
Persons: , Daryl Fairweather, Buyers, N.A.R Organizations: Redfin, National Association of Realtors Locations: Missouri
Read previewMoving into their 360-square-foot floating home a year ago was a dream come true for Sarah Spiro and Brandon Jones. In 2023, there were 70 floating home sales reported on the Regional Multiple Listing Service, or RMLS, which covers the Portland area and a significant part of northwest Oregon, Portland Floating Homes real-estate broker John McPherson told BI. Lily and Dylan Rose moved onto their houseboat on Lake Union in Seattle in June 2019. AdvertisementHome insurance for a floating house tends to be about double what it is for a regular house on land, McPherson said. Additionally, the float — the part of the floating house that's equivalent to a foundation — deteriorates over time, McPherson said.
Persons: , Sarah Spiro, Brandon Jones, Spiro, keepingafloatwiththejoneses Spiro, Jones, keepingafloatwiththejoneses, Adam Lind, @adam.floatinghome, It's, John McPherson, Lily, Dylan Rose, Elizabeth Earle, BI's Jordan Pandy, Earle, Elizabeth Earle Earle's, McPherson, Daryl Fairweather, Redfin's, Realtor.com, Hannah Jones, it's, Laura Woodley, Woodley, isn't, Kate Fincham, Fincham, Lily Rose, Dylan, Rose, she's Organizations: Service, Business, Portland Floating Homes, Realtor.com, Union, Trust, England & Wales, Lake Union Locations: Fontana Lake, North Carolina, Portland, Oregon, Seattle, Sausalito , California, Johns Island , South Carolina, England, Bluffers Park, Toronto, Lake, Boston
The nearly 29-percentage-point gap in Navy Federal’s approval rates was the widest of any of the 50 lenders that originated the most mortgage loans in 2022. In addition, an analysis by staff of the Senate Banking Committee, which 10 Democratic senators cited in a letter asking federal regulators to review Navy Federal’s mortgage lending earlier this year, also found racial disparities in Navy Federal’s mortgage approval rates based on the publicly available data. A spokesperson for Navy Federal did not respond to a request for additional details about the analysis. Navy Federal described Adegbile’s analysis as an “external review,” but his law firm, WilmerHale, is also defending Navy Federal in a class-action lawsuit from Black and Latino borrowers who allege the credit union discriminated against them in mortgage applications. “Navy Federal should immediately put out the full investigative report and data analysis so that Navy Federal’s members have an opportunity for themselves to review the findings,” the statement said.
Persons: hadn’t, , , Debo Adegbile, ” Adegbile, WilmerHale, – Ben Crump, Adam Levitt, Hassan Zavareei –, Adegbile Organizations: CNN, Navy Federal Credit Union, Department of Defense, Federal, Consumer Financial, Bureau, Banking Committee, Navy Federal, U.S . Commission, Civil Rights Locations: Black, Navy
Recessions Actually Make People Live Longer
  + stars: | 2024-03-19 | by ( Aki Ito | ) www.businessinsider.com   time to read: +6 min
Recessions, it would seem, help us stay fitter, and live longer. The new paper, along with other research into recessions, provides an important reminder that economic growth isn't — and shouldn't be — the only measure of our collective well-being. If recessions save lives, that comes with a corollary: Boom times cost lives. Sure, economic growth provides jobs. If the new research tells us anything, it's that we still have a long way to go in striking a healthy balance between economic growth and social welfare.
Persons: grads, Amy Finkelstein, didn't, that's, Aki Ito Organizations: Business Locations: Japan, San Francisco
Biden faces concerns about his age as he begins a tough general election campaign. A newly released general election ad attempts a "Morning in America" kind of message. "Under the leadership of President Reagan, our country is prouder, and stronger, and better," the narrator says. Biden's own set of challengesIn November 1984, Biden won a third term representing Delaware in the Senate. But with a general election campaign that'll stretch for months, this could change.)
Persons: Biden, , Joe Biden's, Donald Trump —, hasn't, Ronald Reagan, Here's, Reagan, Walter Mondale, Trump, Mondale, Megan Varner Organizations: Service, GOP, Democratic, New York Times, Siena, Biden, Times, Gallup, Trump, Independents Locations: America, Georgia, Michigan, Washington, United States, Delaware, Atlanta ,, States, Siena
I have many financial goals, so instead of one big savings account, I have one for each goal. Years ago, I heard some advice from a financial influencer that stuck with me: If you have numerous savings goals, set up different savings accounts and give each a name to correspond with their purpose. I opened up six new Capital One 360 Performance Savings accounts in the new year to help me achieve my financial goals. TaxesI'm embarrassed to say that I have never set aside money for taxes in all my years as a freelancer. While I usually had the funds available, peace of mind comes with having a separate savings account to cover taxes.
Persons: , I've, It's, it's, I'd, haven't, Sam Organizations: Service Locations: homeownership
Commissions aren’t disappearing — you’ll still need to pay a real estate agent for their work, just as you would any service provider. And the commission, which is set between an agent and the seller, will continue to be negotiable. The seller’s agent will also still be able to split the commission with the agent bringing the buyer. One new rule prohibits agents’ compensation from being included on listings placed on local centralized portals known as multiple listing services, which critics say led brokers to push more expensive properties on customers. This agreement will specify the work the buyer’s agent will do and how they will get paid.
Persons: who’ve, TD Cowan, Will, that’s, it’s Organizations: DC CNN, National Association of Realtors, NAR, MLS Locations: Washington
First-time homebuyer no down payment programsIt's possible to get a mortgage with no down payment. VA mortgage borrowers enjoy the ability to put no money down and interest rates that are typically lower than conventional mortgage rates. Other low down payment mortgage optionsIf you don't qualify for VA or USDA no down payment home loans, there are other strategies you can use to reduce the down payment you're required to pay. Preparing for the application processTo ensure you qualify for a no down payment mortgage, work on getting your credit score in a good place. Forgoing a down payment may mean paying a higher interest rate and higher monthly payment on your mortgage.
Persons: you'll, Here's who's, Fannie Mae, Freddie Mac Organizations: US Department of Veterans Affairs, US Department of Agriculture, Federal Housing Administration, Federal Housing Finance Agency, USDA, Chevron Locations: homebuyers
The Dutch offer home mortgages with evolving interest rates that can automatically decrease over time. However, other countries are taking notice: The Dutch mortgage lender DMFCO recently began offering Dutch-style mortgages in the UK. AdvertisementBut there are some deeply entrenched features of the American mortgage system that make it unlikely we'll see widespread adoption of Dutch-style mortgages. AdvertisementAdditionally, mortgage interest rates in the US aren't determined by the loan-to-value ratio beyond a certain point. AdvertisementBut Cecela says he's interested to see what happens with the Dutch-style mortgages newly on offer in the UK.
Persons: , Lindsey Harn, Lindsey, Harn, Guy Cecala, Cecala, Melissa Cohn, Raveis, Cohn, he's Organizations: Service, Business, Lindsey Harn Group, Mortgage, Mortgage Finance, USA Locations: Netherlands, San Luis Obispo County , California, Europe
The title acceptance pilot waives the need for a lender's title insurance policy on some refinance mortgages. The Federal Housing Finance Agency recently rolled out a new pilot program that would lower refinance closing costs for some borrowers. Called the "title acceptance pilot," this program would waive the requirement that conforming loans have a lender's title insurance policy on certain refinance mortgages. Borrowers are required to purchase a lender's title insurance policy, which can be a significant out-of-pocket cost. Pushback from the mortgage industryLeaders from the mortgage and title insurance industries overall weren't pleased with this announcement.
Persons: , Biden, Fannie Mae, Freddie Mac, homebuyers, Christopher Tyson, Tyson, doesn't Organizations: Service, Federal Housing Finance Agency, Mortgage Bankers Association, Union, Consumer Financial, National Community Stabilization Trust, homebuyers
Housing, housing and more housingThe housing sector carries more than four times as much weight in CPI compared to the Fed’s preferred inflation gauge. But, with PCE, housing has a much more limited impact on the inflation index. Both indexes are faulted for using this metric to calculate housing inflationBoth indexes use a widely criticized metric called owners’ equivalent rent (OER) to track housing inflation. But it can often take months for these trends to show up in either the PCE or CPI housing indexes. Another issue with using OER to track housing inflation is that it doesn’t really affect homeowners.
Persons: Joe Biden, Frederic J . Brown, Organizations: New, New York CNN, Federal, Cleveland Federal Reserve, PCE, Bureau of Labor Statistics, Getty, Commerce Department, Bank of America Locations: New York, November’s, AFP
Opinion | On the Wild Intoxications of Spring
  + stars: | 2024-03-11 | by ( Margaret Renkl | ) www.nytimes.com   time to read: +1 min
I spied the first spring beauty of the year on Feb. 20, the same week a Northern flicker started drumming on our metal chimney, the week of budburst for our red maple sapling and our young red mulberries. The bluebirds often start house-hunting much earlier than they intend to nest, but the first flicker concert at dawn and the first spring beauty opening in the afternoon sun — they’re for real. Soon the crows will be stalking through the wild parts of the yard after a rain, collecting long, damp stalks of grass to line their nests with. This year spring beauties came a little late compared to last year (Feb. 16), but still very early compared to the year before that (March 20). Spring is here!
Persons: skinnier
The budget seeks to restore the expanded Child Tax Credit and keep Social Security benefits intact. The budget also proposes a tax increase on billionaires, companies, and firms giving executives big paydays. The proposal comes after a tax bill that would partially expand the Child Tax Credit currently lingers untouched in Congress. Advertisement"It cuts costs for families with children and American workers and lowers childcare costs for hardworking families," Young continued. Would a restored child tax credit or maintained Social Security benefits impact your life?
Persons: Joe Biden, , White, Shalanda Young, Young, Biden Organizations: Tax, Social, Service, American, Management, Social Security, Federal, Aid, Republican, Republicans, Democratic, , GOP, Security
Over half of US owners and renters said housing prices will inform their vote for president, Redfin said. Soaring mortgage rates and prices have made it hard for Americans to buy property. President Biden recently unveiled proposals to boost housing affordability in the US. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . February saw mortgage rates inch back up, reversing course after a period of declines as markets adjusted expectations for rate cuts from the Federal Reserve.
Persons: Redfin, Biden, , Daryl Fairweather Organizations: Service, Qualtrics, Federal Reserve Locations: November's
Secretary of Housing and Urban Development Marcia Fudge speaks during the daily press briefing at the White House on March 18, 2021 in Washington, DC. WASHINGTON — Marcia Fudge, who has served as the secretary of Housing and Urban Development since March 2021, is leaving the Biden administration, the White House said Monday. The White House said that after she departs, Deputy Secretary Adrianne Todman will serve as acting secretary. Fudge is only the second Cabinet secretary to leave the administration during Biden's first term as president. Before working in the Biden administration, Fudge represented an Ohio Congressional District in the House from 2008 to 2021, serving at one point as chairwoman of the Congressional Black Caucus.
Persons: Marcia Fudge, WASHINGTON, Joe Biden, Marcia, Biden, Adrianne Todman, Olivia Dalton, Fudge, Biden's, Marty Walsh, Jeff Zients Organizations: Housing, Urban, White, Urban Development, Biden, of Housing, U.S . House, Representatives, Air Force, Labor, Politico, Ohio Congressional District, Congressional Black Caucus Locations: Washington , DC, U.S, Ohio
Colin Yong, who works in the food and beverage industry, lives in a cozy, five-room public housing apartment in Singapore with his wife. But she wasn't always keen on it because she preferred a new house," Yong said. But my wife wanted more shelving and everything, so we learned to meet in the middle." Amanda Goh/Business InsiderWarm, dim lights create a soothing atmosphere that puts people at ease. Amanda Goh/Business InsiderNot settling for lessThe couple has one tip for other first-time homeowners: Don't settle for less.
Persons: Colin Yong, , It's, homeownership, Yong, they're, Eddy Kur, Amanda Goh, I've, wasn't Organizations: Service, Housing, Development Board, BTO, Amazon Locations: Singapore, Hougang, Amazon Germany
Read previewThe Florida condo market is caught in a storm. By contrast, median condo prices nationally rose 8% over the same period, to around $340,000. A deepening insurance crisis for Florida homeownersThe rising cost of insurance has been a long-simmering problem in Florida. Recently, he walked away from buying a $300,000 condo in North Palm Beach that would have come with a $4,500 annual insurance bill. On his own single-family home in Palm Beach Gardens, Forina added, his annual insurance premium, which was $2,600 in 2017, jumped to $8,200 in 2024.
Persons: , It's, Joe Humphfner, rusk, Florida homeownership, Holly Meyer Lucas, Meyer Lucas, Anthony Forina, Forina, Humphfner Organizations: Service, Business, Sunshine State, Farmers Insurance, Bankers Insurance, Homeowners, Wall Street Journal, Condo, Humphfner Locations: Florida, Jupiter, West Palm, Jacksonville, Miami, Coral, Florida's, South Florida, North Palm, Palm Beach
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