News – Housing affordability at record low

A report from the technology-powered real estate company Redfin said that the percentage of homes for sale that were affordable for the typical household in 2022 is down from two in five in 2021 and the lowest share on record.

Housing affordability refers to the ability of a household to afford a decent and suitable place to live in, given their income level and other financial obligations. In other words, it is a measure of how much of a household’s income is required to cover the costs of housing, including mortgage or rent payments, utilities, insurance, and property taxes.

There are different ways to calculate housing affordability, but one common method is to use the housing cost-to-income ratio. This ratio compares the monthly housing costs to the monthly income of a household. A ratio of 30% or less is generally considered affordable, meaning that the household can comfortably cover the cost of housing without sacrificing other basic needs.

For example, if a household has a monthly income of $5,000 and their monthly housing costs are $1,500, the housing cost-to-income ratio would be 30% ($1,500/$5,000). If the ratio is higher than 30%, the household may be considered “cost-burdened,” meaning that they are spending a significant portion of their income on housing and may struggle to afford other necessities such as food, healthcare, and education.

It’s important to note that housing affordability can vary widely depending on the local housing market, as well as individual factors such as household size, credit score, and debt-to-income ratio. Therefore, it’s recommended to consult with a financial advisor or housing counselor to determine the most appropriate and realistic housing budget for your specific situation. Read More

Housing Bust #2 Has Begun – Wolf Street

Wolf Street
The housing market in the United States has turned down, and in some big markets … During Housing Bust #1, Miami, Phoenix, San Diego, Las Vegas

A housing bust, also known as a housing market crash or a housing bubble burst, is a sharp and sudden drop in the value of residential real estate property. A housing bust occurs when the demand for housing decreases, causing property values to plummet. This can be due to a variety of factors such as a weakening economy, rising interest rates, oversupply of homes, or lending practices that lead to excessive speculation and overvaluation.

During a housing bust, homeowners may find that their homes are worth less than what they owe on their mortgages, which can lead to foreclosures, evictions, and financial distress. The housing bust of the late 2000s is an example of a significant housing market crash that resulted in a global financial crisis. Read More 

Massive unbuilt Arizona estate asks record $75M – The Real Deal

The Real Deal
Residential real estate’s slowdown isn’t stopping developers from building what would easily be the most expensive home ever built in Arizona.

The 33,000-square-foot main mansion will have seven bedrooms, two spa locker rooms, four kitchens, four wet bars, a two-story office/library, casino room, two bowling lanes, a movie theater/metaverse room, home gym, recording studio, collector’s gallery, two story aquarium, an ice cream bar, and a spa with a sauna, snow room, two massage rooms and vitality pools, the release says.

The term “mansion” is often used to describe a large and impressive house or residence, but there is no fixed definition or criteria that determine when a house becomes a mansion.

In general, a mansion is typically a grand, luxurious home that is spacious and often located on a large piece of property. It usually features multiple rooms, including grand living areas, formal dining rooms, and multiple bedrooms and bathrooms. Mansions often have high ceilings, grand staircases, and impressive architectural features, such as columns, arches, and intricate moldings.

However, the definition of a mansion can vary depending on the location, culture, and time period. In some areas, a house with a certain number of rooms or a specific square footage may be considered a mansion, while in other areas, it may take more than just size and features to qualify as a mansion. Ultimately, whether a house is considered a mansion is somewhat subjective and can depend on the perception and opinion of the individual or society. Read More