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☆ I couldn't afford to buy a home in the US — so I invested in 5 in Europe instead
▼ + stars: | 2024-03-10 | by ( Jordan Pandy | ) www.businessinsider.com time to read: +9 min

In the fall, I'm going on a trip with some of my girlfriends from college. Really, really good. I don't have 7 million euros to buy five properties across Europe. AdvertisementWould I move to more suburban New Jersey so I could buy a house? I would not make the calculus to move — whether that's another city, or another state, or a suburb — to buy a house.

Persons: —, Amy Beihl, I've, they're, I'm, There's, Homeownership Organizations: Service, Business, Colgate University, Mallorca Locations: York, New York, Mallorca, Spain, Italy, France, Tuscany, England, Stockholm, Europe, Swedish, I'm, New York City, New Jersey, that's, America

We can't predict what the Fed will do or how that will impact mortgage rates. Yes, even as high interest rates make buying a home with a mortgage more expensive! On one hand, interest rates may drop so buying a home with a mortgage is more affordable. Or we could say there's still massive demand in the Boston market despite the jump in interest rates. Get the lowest mortgage rate you canPretty obvious advice if you want to get a mortgage now, right?

Persons: —, doesn't Organizations: Service, National, ARM Locations: Boston

☆ Biden wants to make it easier for people to buy their first home. But there aren't enough houses.
▼ + stars: | 2024-03-08 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. But I'm not waiting," President Joe Biden said during Thursday's State of the Union address. The White House is stepping up as homeownership costs keep mounting, with over 90% of the market overvalued. AdvertisementIn order to unlock supply, Biden called for a one-year tax credit of $10,000 to families selling a starter home. Ahead of the speech, Zillow Chief Economist Skylar Olsen noted that the supply crunch is worse than the White House has laid out.

Persons: —, Biden, I'm, Joe Biden, homebuyers, David Dworkin, Skylar Olsen, unspent Organizations: Service, Biden Administration, Business, National Housing, CNBC, Treasury Department Locations: homebuyers, Thursday's State

Biden unveiled a plan that includes tax credits and down payment assistance to improve housing affordability. Eligible homebuyers would get this tax credit for two years, meaning you could get a total of $10,000 in tax credits for buying a house. Down payment assistanceAnother piece of Biden's plan for more affordable homeownership is the $25,000 in down payment assistance he wants Congress to provide to first-generation homebuyers. What hopeful homebuyers should knowAs a whole, this plan could substantially improve housing affordability, enabling more Americans to become homeowners. And even for homebuyers who qualify for tax credits or other assistance, saving up for a down payment remains a big barrier to homeownership.

Persons: Biden, —, Dan Green, homebuyers Biden, hasn't, doesn't, Green, Daryl Fairweather, Fairweather, White, homebuyers Organizations: Biden, Service, Federal Housing Finance Agency, Consumer Financial, homebuilders, Loan, Program, Bank of America Mortgage, Democrats

☆ Fed Chair Powell says there’s no rush to cut interest rates
▼ + stars: | 2024-03-06 | by ( Bryan Mena | ) edition.cnn.com time to read: +6 min

Washington, DC CNN —The Federal Reserve is in no rush to cut interest rates, according to Fed Chair Jerome Powell’s written testimony submitted to congressional lawmakers, released Wednesday. Recent economic data showed that price pressures persisted in January, leading investors to recalibrate their expectations for rate cuts this year. Still, the timing and pace of rate cuts remains up in the air. Too soon to cut rates? In a recent interview with CNBC, Richmond Fed President Thomas Barkin said “we’ll see” if the Fed cuts rates in 2024.

Persons: Jerome Powell’s, Powell’s, inflation’s, ”, José Torres, “ Young, there’s, Raphael Bostic, Thomas Barkin, “, “ I’m, Austan Goolsbee, we’re, Adriana Kugler Organizations: DC CNN, Federal, Fed, Financial, “, Interactive Brokers, CNN, Atlanta Fed, CNBC, Richmond Fed, Congress, Chicago Fed, ”, Stanford University Locations: Washington

☆ Millennials stand to become the richest generation in history, after $90 trillion wealth transfer
▼ + stars: | 2024-03-01 | by ( Anna Bahney | ) edition.cnn.com time to read: +3 min

However, over the next twenty years, Millennials are poised to inherit some $90 trillion of assets and become the richest generation in history – but only the ones who already come from affluent families, potentially deepening wealth inequality further. Between now and 2044 in the US, the Silent Generation and Baby Boomers are expected to hand over the reins of their significant wealth to Millennials, according to The Wealth Report, a periodic report from global property consultant Knight Frank. But whether you’re a Millennial on the receiving end of that wealth transfer is largely a lottery of birth. Looking ahead, the number of supremely wealth people is expected to increase by 28% over the next five years, according to the report. More growth in ultra-high-net-worth individuals is expected in Asia, including India, China, Malaysia and Indonesia, the report said.

Persons: Millennials, Knight Frank, Liam Bailey, ” Mike Pickett, Z, ” Pickett, “, ”, Bailey Organizations: DC CNN, Boomers, Cazenove Locations: Washington, North America, Africa, America, Asia, India, China, Malaysia, Indonesia

☆ I bought a house with my ex 14 years after we broke up. We're saving so much money, and I'm happier.
▼ + stars: | 2024-03-01 | by ( Jordan Pandy | ) www.businessinsider.com time to read: +7 min

My rental in Palm Beach County, Florida, increased dramatically from 2021 to 2023, and it almost became unaffordable for one person. I pay less for my share of the house and have more spaceJohn fell sometime in 2022, and he lived in Daytona Beach, Florida. I began looking in Palm Beach County, and I couldn't touch anything. We also looked in Ormond Beach, Florida, but unfortunately, that didn't work — prices were too high. We looked in Melbourne, Florida, we looked in Palm Bay, we looked in Vero Beach.

Persons: —, Elisa Ball, John, We've, would've, Elisa, we're, Lucie, Brad McGinley, I'm, haven't, Ball Organizations: Service, Business Locations: Palm Bay , Florida, America, Palm Beach County , Florida, —, Daytona Beach , Florida, Palm Beach County, Jacksonville , Florida, Ormond Beach , Florida, Melbourne , Florida, Palm Bay, Vero Beach, Stuart, Port St, California

☆ Homebuyers need to earn 80% more than they did pre-COVID to comfortably afford a house in this market, Zillow says
▼ + stars: | 2024-02-29 | by ( Aruni Soni | ) www.businessinsider.com time to read: +1 min

Homebuyers need to earn 80% more than they did pre-COVID to comfortably afford a house in the current market, Zillow found. "The math has changed for hopeful buyers, who are more often partnering with friends and family or 'house hacking' their way to homeownership," a Zillow analyst wrote. 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 . According to a new report from Zillow, homebuyers today need to make north of $106,000 to comfortably afford a house in this market.

Persons: Zillow, haven't, — Organizations: Service, Business Locations: Zillow

☆ Declining boomer ownership will free up 9.2 million homes by 2035, Freddie Mac says
▼ + stars: | 2024-02-28 | by ( Aruni Soni | ) www.businessinsider.com time to read: +3 min

Declining boomer ownership will free up 9.2 million homes by 2035, a Freddie Mac report found. The 32 million homes owned by boomers will drop to 23 million by 2035, when the oldest members of the group are pushing 90. A new report from Freddie Mac estimates that declining homeownership for the group will free up 9.2 million homes by 2035. The generation accounts for about 21% of the total US population, but they own 38% of American homes, Freddie Mac found. The 32 million homes owned by the generation as of 2022 will drop to 23 million in 2035, when the oldest boomers will be close to 90 years old.

Persons: Freddie Mac, —, Meredith Whitney Organizations: Service, American Consumer Survey

☆ The US housing market added $2 trillion in value last year, boosted by a nationwide shortage of homes for sale
▼ + stars: | 2024-02-28 | by ( Yuheng Zhan | ) www.businessinsider.com time to read: +2 min

The US residential market added $2.4 trillion in value last year, listings site Redfin said. AdvertisementThe housing market in the US added $2.4 trillion last year, jumping to $47.5 trillion. Though housing demand has been dampened by stubbornly high mortgage rates, the total value of the market climbed by 5.3% from December 2022, preliminary data released by Redfin on Wednesday showed. Pandemic-era mortgage rates fell below 3%, driving a frenzy of buying in 2020 and 2021. The combination of elevated mortgage rates, high home prices and a limited pool of homes for sale means homeownership is about as unaffordable as ever.

Persons: Redfin, —, aren't, Chen Zhao Organizations: Service Locations: Redfin, New York City, New Jersey, Midwest, Milwaukee, Grand Rapids, New York, Honolulu , Riverside, Denver

☆ Home Equity Loan Alternative Could Revolutionize the Housing Market
▼ + stars: | 2024-02-28 | by ( James Rodriguez | ) www.businessinsider.com time to read: +16 min

Like a lot of homeowners, Schummer was keen to convert some of his theoretical wealth into real cash. These kinds of deals, often referred to as home-equity-sharing agreements or home-equity investments, have existed on the fringes of housing finance for decades. The success or failure of home-equity investments could shape the future of homeownership in America. If the home's value has gone up, everyone wins; sell it for a loss, and the investor might share in that downside. "Over time for us, the customer becomes everybody," Eoin Matthews, the chief business officer and a cofounder of Point, told me recently.

Persons: Kennis Schummer, Schummer, Laurie Goodman, Goodman, he'd, Eoin Matthews, —, Hometap, Jim Riccitelli, Riccitelli, Adam Rust, Rust, Rust wasn't, I'm, Jordan Gilberti, Holly Bunting, Mayer Brown, Edwin Remsberg, Matthews, they'd, Jeffrey Glass, Glass, I've, he's Organizations: Consumer, Urban Institute, Federal Reserve, Bain Capital, Palisades Group, Redwood Trust, Getty, Consumer Federation of America Locations: Pensacola , Florida, California, homeownership, America, Connecticut, Maryland, Florida

☆ Americans are moving a lot less — and boomers may be to blame
▼ + stars: | 2024-02-28 | by ( Noah Sheidlower | ) www.businessinsider.com time to read: +5 min

Fewer Americans are moving within the US, and boomer homeowners in more expensive states may explain why. Over the last few decades, US internal migration has fallen substantially. Census data shows internal migration has slowed since the 1970s amid deindustrialization and a weaker economy. "This suggests that declining internal migration is due to changes in structural aspects of migration choice, which affect individuals and families of many different backgrounds," the authors wrote. Net migration has been strongest out of California, Illinois, Massachusetts, New Jersey, and New York, which have relatively high wages and housing prices.

Persons: William Olney, Owen Thompson Organizations: Williams College, Business, Sun Belt Locations: California, New York, Northeast, Midwest, Northwest, Southwest, California , Illinois , Massachusetts , New Jersey, Georgia, North Carolina , Tennessee, Texas, California , New York, New Jersey, Florida , Nevada, Arizona

Thanks to high mortgage rates, mortgage refinance rates, and even higher home prices, the mood among hopeful homebuyers has been fairly bleak. Is there a chance the housing market will crash anytime soon? Though a large number of Americans believe the housing market is at risk of crashing, the economists who study housing market conditions overwhelmingly do not expect a crash in 2024 or beyond. The US is currently between 2.3 million and 6.5 million units short of a healthy housing supply, according to Realtor.com. What a housing market crash would mean for homebuyersAnything is possible, and nobody has a crystal ball to see for certain what will happen in the housing market in the coming months and years.

Persons: —, homebuyers, Fannie Mae's, Lawrence Yun, Yun Organizations: Service, Housing Survey, National Association of Realtors, Housing Locations: Chevron

☆ Gen Z Is Saving Money by Living With Parents; It's Going to Cost Them
▼ + stars: | 2024-02-26 | by ( Eve Upton-Clark | ) www.businessinsider.com time to read: +11 min

There are 620,000 more adults living with their parents in the UK than a decade ago. In the US, the percentage of young adults living at home has climbed 87% over the past two decades, according to the US Census Bureau. More than one-third of Gen Z respondents in a 2022 Freddie Mac survey said it's something they thought they'd never be able to achieve. A similar share of young adults lived with their parents in the wake of the Great Recession in 2010 — 44%. For many young adults, living on your own is an important step to feeling grown up.

Persons: Bethany Clark, didn't, she's, Clark, they'd, Moody's, renter, Zers, homebuyers, Gen, Freddie Mac, millennials, Z, grads, We're, Amy Lewthwaite, Lewthwaite, shouldn't, I've, Sarah Obutor, who'd, Obutor, —, Gen Zers, Jeffrey Jensen Arnett, Arnett Organizations: Census Bureau, Bloomberg, Harris, National Association of Realtors, Bloomberg Businessweek, Guardian, Financial Times, Urban Institute, Northumbria University, Clark University Locations: Surrey, England, America, London, Georgia

☆ Aspiring homeowners say they face two major obstacles to buying. Here's why 20% say it'll 'never' happen
▼ + stars: | 2024-02-26 | by ( Ana Teresa Solá | ) www.cnbc.com time to read: +1 min

With various factors keeping homeownership out of reach for Americans, many aspiring homeowners are pessimistic, doubting they ever achieve that goal. Would-be buyers point to two major obstacles holding them back, according to a new Bankrate report. About half, 51%, point to a high cost of living, and 54% say they have insufficient income given where home prices are now. The site polled 2,267 U.S. adults, 864 of whom are aspiring homeowners, in late January. Meanwhile, 30% said it could take at least five years while 10% said it could take them a decade or longer.

Persons: Bankrate, homebuyers, Mark Hamrick, Hamrick Organizations: Finance

☆ Meet the DIPS parents: Double Income, Public School. They've got it better than the POLKs, or Parents of Little Kids.
▼ + stars: | 2024-02-25 | by ( Katie Notopoulos | ) www.businessinsider.com time to read: +6 min

But the double whammy of housing plus childcare costs doesn't hit all parents — just parents of very young kids. However, after-school programs or an afternoon babysitter are typically a fraction of the cost of full-time day care.) I propose we call them: DIPS, or Double Income, Public School. For example, Massachusetts has the highest average childcare costs, where day care for an infant is $24,472. I'm stuck in between — one kid in public school and a younger one still in day care.

Persons: —, Alcynna Lloyd, Lloyd, Zillow, it's, I'm, Rich, Stanley, you'll, they'll, POLK Organizations: Service, Business, Public School, Kids, Nationwide Locations: Los Angeles, San Diego, California, Massachusetts, Iowa, In Massachusetts

☆ Your home sale may leave you in a tax shock. Here's how to reduce your capital gains tax bill
▼ + stars: | 2024-02-24 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Those gains could trigger a tax bill this season, depending on the size of the windfall, experts say. In 2023, home sellers made a $121,000 profit on the typical median-priced single-family home, according to ATTOM, a nationwide property database. Still, "the tax laws were written to encourage homeownership," and many sellers qualify for a tax break, Ringbauer said. Single homeowners can shield up to $250,000 of home sales profit from capital gains taxes and married couples filing jointly can exclude up to $500,000, provided they meet IRS eligibility. Who qualifies for the capital gains exemptionsThere are strict rules to qualify for the $250,000 or $500,000 capital gains exclusions, Ringbauer warned.

Persons: Witthaya, Miklos Ringbauer, Ringbauer, you've, There's, Assunta McLane Organizations: Summit Place Financial Locations: Los Angeles, Summit , New Jersey

☆ 'If your parents are homeowners, you're more likely to be a homeowner,' housing expert says. Here's why
▼ + stars: | 2024-02-23 | by ( Ana Teresa Solá | ) www.cnbc.com time to read: +2 min

If a parent is a homeowner, they are more likely to assist with their kid's down payment, she said. But it's harder for those with parents who are not homeowners: "Renter households are often precluded from bringing more people into their home. Having homeowner parents is 'like a 5 percentage point bonus'Young adults with homeowner parents are more likely to become homeowners themselves because they can obtain more information about the mortgage application process directly from their parents, the Urban Institute found. "Because the parents are so knowledgeable about homeownership, they're more likely to encourage their kids to do it and show them how to do it," Myers said. "It's like a 5 percentage point bonus by having parents who are homeowners."

Persons: Skylar Olsen, Myers, that's, Zers, Intuit Credit Karma, Wachter Organizations: Digitalvision, Getty, National Association of Realtors, Urban Institute, Intuit Credit Locations: Washington ,

☆ Here’s where the price of rent is dropping in the US
▼ + stars: | 2024-02-22 | by ( Anna Bahney | ) edition.cnn.com time to read: +3 min

The national median price of rent for apartments ranging from studios to two-bedroom apartments fell 0.3% year-over-year to in January. Still, prices are over 18% higher than pre-pandemic levels, due to continued strong demand and limited supply in some markets. The national median rent for a two-bedroom apartment was $1,892 in January, down 0.6%, while rent for a one-bedroom was essentially flat at $1,591. Still, even with the uptick, Chicago’s median rent of $1,852 is almost $1,000 less than coastal big cities like New York at $2,844 and Los Angeles at $2,829. But the supply of new multifamily housing is growing, which helps to bring down rental prices, according to the report.

Persons: That’s, Realtor.com, ”, Danielle Hale, Hale, weren’t Organizations: DC CNN, Kansas, Las Locations: Washington, Chicago, Indianapolis, Kansas City , Missouri, New York, Angeles, Memphis , Tennessee, Atlanta, Austin , Texas, Louis , Missouri, Miami, Phoenix, Las Vegas, Los Angeles, Seattle, Boston

☆ 52% of Black Americans say homeownership is a mark of success, report finds. But it can conflict with other goals
▼ + stars: | 2024-02-21 | by ( Ana Teresa Solá | ) www.cnbc.com time to read: +2 min

Maskot | Digitalvision | Getty Images'Homeownership has a lot more expenses than renting'"Homeownership has a lot more expenses than renting: taxes, insurance, maintenance, down payment. All these factors need to be considered," said Cherry, a member of CNBC's Financial Advisor Council. "Understand what it is to be a homeowner and how things work," said Elliott, also a member of CNBC's Financial Advisor Council. "The cost of homeownership versus renting has been made [it] daunting to become a homeowner. "At the end of the day, what good is being a homeowner when you can't provide basic necessities for yourself and your loved ones?"

Persons: Cherry, Kamila Elliott, Elliott, Susan M, Wachter, Preston D, Jacob Channel Organizations: Digitalvision, Getty, CNBC's, CFP, Wealth Partners, CNBC, Council, The Wharton School, University of Pennsylvania, Cherry Locations: Atlanta, U.S

☆ Sorry, parents: The American dream is only for DINKS
▼ + stars: | 2024-02-21 | by ( Alcynna Lloyd | ) www.businessinsider.com time to read: +5 min

Zillow determined that a family earning a median household income of $6,640 per month can expect to allocate $1,984 of that to childcare. It all adds up to a costly reality that's making the American dream of homeownership seem farther out of reach for parents than ever before. Based on the study, a new buyer household in the United States, making the median income, would spend 30% of it on housing. The upshot: Another group, less encumbered financially, appears better poised to realize the dream of homeownership: "DINKS," an acronym that stands for "dual income, no kids." "I paid $1,750 for rent in a crappy little apartment in California," Crossan told BI earlier this year.

Persons: —, Zillow, DINKS, Elizabeth Johnson, Johnson, Bartie Scott, Juliana Kaplan, Janelle Crossan, Crossan, Pengyu Cheng, Cheng Pengyu Cheng, Cheng Organizations: Service, US Department of Labor, Federal, Consumer Locations: Women’s, Los Angeles, San Diego, United States, Swiss, snorkeled, Hawaii, Canada, New Braunfels , Texas, Costa Mesa , California, California, Austin , Texas, Texas, San Francisco

☆ Meet the 'forgotten middle' of Americans over 75 about to face a rocky retirement
▼ + stars: | 2024-02-20 | by ( Juliana Kaplan | ) www.businessinsider.com time to read: +6 min

The 'Forgotten Middle' group might face difficulties affording necessary housing and care. AdvertisementA crisis is ballooning for middle Americans of retirement age. ”They focused on the potentially bleak financial futures of what they term the "Forgotten Middle." AdvertisementThat “Forgotten Middle” group is only expected to get bigger and more diverse. A University of Southern California and Columbia University analysis found that homeownership rates for lower-income “Forgotten Middle” Americans have fallen by 31% from 1994 to 2018.

Persons: —, ” Sarah Rayel, they’re, ” Rayel, There’s, Sen, John Hickenlooper, won’t Organizations: Service, University of Chicago, Health, University of Michigan, Medicaid, University of Southern, Columbia University, Consumer Finances, National Council, Aging, AARP, Democrat, Savings Locations: NORC, University of Southern California, Colorado

☆ Homeownership gap between Black and White owners is worse now than a decade ago
▼ + stars: | 2024-02-20 | by ( Anna Bahney | ) edition.cnn.com time to read: +6 min

The Black homeownership rate saw a modest annual uptick to 44.1% in 2022 from 44% in 2021, but remains significantly behind the White homeownership rate of 72%, the report found. A stubborn racial homeownership gapEven with some improvement in the Black homeownership rate, the change has done little to close the yawning gap between Black and White homeownership. Over the past decade, the gap between the two groups’ homeownership rates has worsened, expanding from 27 points to 28 points. Other states with high Black homeownership rates include South Carolina and Delaware, each at 55%. Plus, the median household income for Black Americans was $47,800 in 2022, while the median income for White Americans was $75,700.

Persons: Sharan White, Jenkins, “, ”, ” White, Black, homeownership, Jessica Lautz, Black homebuyers, ” Lautz Organizations: DC CNN, National Association of Realtors, American, Survey, Census Bureau, NAR, Joint Center for Housing Studies of Harvard University, Black, White Locations: Washington, Jamaica, Queens, New York City, Virginia, Brooklyn, Queens , New York, Wyoming, North Dakota, Mississippi, Black, South Carolina, Delaware

☆ A Bed-Stuy Loft Transformed With an Out-of-the-Ordinary Renovation
▼ + stars: | 2024-02-20 | by ( Tim Mckeough | ) www.nytimes.com time to read: 1 min

After years of renting, Jackson Owens and Flora Jin bought a loft in Bedford-Stuyvesant, Brooklyn, and it felt like the stuff of dreams. A week or so later, it was more like a nightmare. A few floors above them there was a gas leak, then an explosion. When the sprinklers came on, many of the building’s apartments were drenched, including the couple’s new 1,200-square-foot condo, which they’d bought for about $1.1 million in July 2021. “Our unit had severe water damage,” said Mr. Owens, 32, a software engineer.

Persons: Jackson Owens, Flora Jin, they’d, ”, Owens Locations: Bedford, Stuyvesant , Brooklyn

☆ These Small Towns Have a Big City Problem: The Rent Is Way Too High
▼ + stars: | 2024-02-18 | by ( Erin Nolan | ) www.nytimes.com time to read: +1 min

It had become unbearable for Troy Mongillo and his girlfriend, Amanda Pabon, to spend time at home. But the couple quickly discovered what has become a reality in Beacon and the rest of the Hudson Valley, directly north of New York City: Affordable rentals were hard to come by. They were shocked by how few apartments fell within their budget and how much landlords were demanding of them just to apply. “I was starting to feel like there’s just no end in sight,” Mr. Mongillo said of the weeks they spent searching for a new home. “Things felt really bleak.”An intensifying housing crisis has gripped New York City and urban areas around the country, fueled by the rising costs of homeownership, surging rents and limited housing stock.

Persons: Troy Mongillo, Amanda Pabon, Mr, Mongillo Organizations: New Locations: Beacon , N.Y, Beacon, Hudson, New York City

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