Brexit in pictures.
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Trump warns Modi India must reduce obstacles to U.S. exports
DPRK: too late for united Korean team at 2018 Winter Olympics.
PROMISES, PROMISES: What Trump has pledged on health care via @AP
White House threatens to sabotage insurance of low-income people if Trumpcare isnt passed
Seattles $15 minimum wage has cost jobs, new study indicates
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An empirical turn in economics research.
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Kushner hires lawyer who represented Dems during Clinton impeachment:
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Justice Thomas calls out his colleagues for not believing in the Second Amendment. #SCOTUS
The Feds Have Come to Chicago—With a Van That Tracks Guns
This is not good. At all… look at some key Western allies: | via @pewglobal
Your Feedback Needed!
Climate change is making cities sick
Donald Trump’s presidency has had a major impact on how the world sees the United States
Happy birthday to Salvador Allende, friend to all dogs.
Rippling red brick facade shades house in Surat by Design Work Group:
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Top CNN employees resign after network retracts Trump-Russia story
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Theresa May: EU citizens in UK must apply for settled status to keep rights post-Brexit
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New global poll: Trump gets low ratings, US image down significantly in many countries
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Trumps travel ban victory should force media to examine itself
Is Bill English a lawyer? A Spinoff investigation:
ah @CillizzaCNN looking out for the true victims the bill, the Republicans
The leading market indicator of economic distress is flashing orange again
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Spectacular artistic impression of the surface of TRAPPIST 1f
Your Voice Matters – Use It To Fight and Sign Our Petitions! #petition #takeaction #resist
D.C. councilmember condemns police who handcuffed black teens for selling water
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Fox News reporter to Sean Spicer: The American people expect transparency
NEW: U.S. Image Suffers as Publics Around the World Question Trump’s Leadership
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AU reform proposals in one graph.
Have no fear of perfection, youll never reach it. - Salvador Dalí
Anthem breaks with other insurers, endorses Senate GOP healthcare bill
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Body of #SalvadorAdame found in #Michoacan #Mexico #journalist #news
Senegal changes its energy minister as Total joins its upstream #OOTT
Physicists have made the brightest light ever—as bright as one billion suns
UK: May pens billion dollar deal to secure right-wing government coalition.
SCOTUS rejects appeal seeking gun-carrying rights
Tsubasa Ozora, the manga character earning comparison to Xi Jinping in Chinese state media
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Mortgage REITs hit a 9-year high, up 18% year-to-date. $REM
#MichaelPorter’s Five Forces That Shape #BusinessStrategy
FBI questions Trump campaign adviser multiple times in Russia investigation: report
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Amazon robots are poised to revamp how Whole Foods runs its warehouses
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Suicide bombers kill nine in back-to-back blasts in Nigeria, @ariabendix reports
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That #Russia thing.
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Trump voters arent impressed with the presidents education agenda
Why Goldman Sachs pays such a high savings account rate @SallyPancakes
The I-95 corridor of the Northeast will experience a rise in temperatures on Thursday:
Iraqi Civilians Continue to Flee Fighting in Mosul
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Comment: Singapore is falling behind Hong Kong, just do the math
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Hope you like algae, because it’s going to be in everything you eat
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just saw this in Central, two days before #China President Xi Jinpings #HongKong visit. #tuesday
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Tyler Durden
What Housing Recovery? Real Home Prices Still 16% Below 2007 Peak
10 days ago




Since the financial crisis, home equity has gone from being America’s biggest driver of (illusory) wealth to one of the biggest sources of economic inequality.

And while the post-crisis recovery has returned the national home price index to its highs from early 2007, most of this rise was generated by a handful of urban markets like New York City and San Francisco, leaving most Americans behind.

To wit: home prices in the 10 most expensive metro areas have risen 63% since 2000, while home prices in the 10 cheapest areas have gained just 3.6%, according to Harvard’s annual State of the Nation’s Housing report. And while nominal prices may have returned to their pre-recession levels, when you adjust for inflation, real prices are as much as 16 percent below past peaks.

Despite seven years of rock-bottom interest rates, valuations in 3 out of 5 metropolitan areas remain below their pre-recession peak. Outside, of a few rich coastal cities, the only advantage that this “housing recovery” has brought is that some homes remain affordable for some Americans. However, thanks to the disproportionate rise in home valuations in certain densely populated areas, the number of Americans paying more than 50% of their income in rent is near a record high.

US house prices rose 5.6 percent in 2016, finally surpassing the high reached nearly a decade earlier. Achieving this milestone reduced the number of homeowners underwater on their mortgages to 3.2 million by year’s end, a remarkable drop from the 12.1 million peak in 2011.But as Bloomberg reports, nationally, just 1 in 3 homes has recovered peak value. Meanwhile, in the country’s most densely-populated markets, housing supplies are incredibly tight following nearly a decade of historically low construction.

The lack of inventory for sale is evident in both the new and existing segments of the market. In 2016, the typical new home for sale was on the market for 3.3 months, well below the 5.1 months averaged since recordkeeping began in 1988. Meanwhile, only 1.65 million existing homes were for sale in 2016, the lowest count in 16 years. And with sales volumes picking up, the inventory represented just 3.6 months of supply, an 11-year low.

Conditions are particularly tight at the lower end of the market, likely reflecting both the slower price recovery in this segment and the fact that fewer entry-level homes are being built. Between 2004 and 2015, completions of smaller single-family homes (under 1,800 square feet) fell from nearly 500,000 units to only 136,000. Similarly, the number of townhouses started in 2016 (98,000) was less than half the number started in 2005.

Renters, it seems, are bearing the brunt of the US housing stock crunch. Despite a relatively strong pickup in multi-family housing, rental markets are tighter than they’ve been in more than 30 years, though there has been some softening on the high end.

According to the Housing Vacancy Survey, the rental vacancy rate fell for the seventh straight year in 2016, dipping to 6.9 percent—its lowest level in more than three decades. MPF Research reports that the vacancy rate for professionally managed apartments was also just 4.4 percent. While some rental markets showed signs of softening in early 2017—most notably in San Francisco and New York—there is generally little indication that increases in supply are outstripping demand.

Meanwhile, the number of Americans exceeding the 30%-of-income “affordability threshold” has declined for five straight years, but while homeowners have enjoyed greater financial freedom, rates for renters have barely budged.

Indeed, 11.1 million renter households were severely cost burdened in 2015, a 3.7 million increase from 2001. By comparison, 7.6 million owners were severely burdened in 2015, up 1.1 million from 2001. The share of renters with severe burdens varies widely across the nation’s 100 largest metros, ranging from a high of 35.4 percent in Miami to a low of 18.4 percent in El Paso. While most common in high-cost markets, renter cost burdens are also widespread in areas with moderate rents but relatively low incomes. Augusta is a case in point, where the severely cost-burdened share of renters was at 30.3 percent in 2015.

In summary, the US housing market's gains since the crisis have disproportionately benefited certain cities, which creates two problems:

Renters in markets that have seen the strongest comebacks are being squeezed as wages fail to keep up with runaway rents; and,

 

Cities in the south and midwest, typically post-industrial towns, are filled with homeowners who might still be struggling with an underwater mortgage, and with only tepid gains in housing prices, many are trapped in their homes.