PHILADELPHIA–In recognition of National Homeownership Month, Pew Charitable Trusts has released a compilation of research it has conducted around the issue.
While the new report primarily targets consumers, it offers insights to credit union leaders on more than a half-dozen issues to think about, including potential opportunities.
Those issues include according to Pew:
| It's Too Hard to Get a Small Mortgage “Securing a mortgage isn't easy. Not only is there a housing shortage, but mortgages for low-cost homes ($150,000 or less) are scarce,” Pew said. “In fact, less than a third of low-cost home purchases are made with a mortgage, making homeownership difficult for many families.” For the full report, go here. More Flexible Zoning Helps Contain Rising Rents “Amid a national housing shortage, rents across the U.S. have risen 31% since 2017. Some cities, though, have eased the rent burden by allowing more homes to be built,” Pew said. For the full report, go here. 36 Million Americans Have Used Risky Home Financing “Faced with rising housing costs and limited small-mortgage availability, one-in-five home borrowers have used alternative financing, often with higher financial risks and fewer protections. What's more, our survey found disparities by race, ethnicity, and income,” Pew said. For the full report, go here. Strict Zoning Is Driving Up Rents in Colorado According to Pew, “As Colorado's population grows but its household sizes shrink, many of its towns and cities are struggling to keep up with housing demands. One hurdle to building lower-cost housing: strict land use policies.” For additional details, go here. Lack of Manufactured Home Financing Shuts Out Buyers “Better loan access for purchases of manufactured homes (often called mobile homes) could help more Americans achieve homeownership. Yet loan applications for these homes have the highest denial rates,” Pew reported. Additional data can be found here. NYC's Housing Shortage Increases Rents and Homelessness According to Pew Charitable Trusts, “Without enough housing, many Americans leave their communities or become unhoused. In New York City, strict zoning has kept rents high and construction low, contributing to a homelessness rate 15 times higher than Houston's.” Additional information can be found here.
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