The New Housing Crisis: Buyers are shut out of the market

Homebuilding still lags far behind pre-Recession numbers, leaving supply far lower than the number of would-be homeowners, and pricing many completely out of the market.

sorbetto/Getty Images Skyrocketing home prices aren't just a big-city problem anymore From Des Moines, Iowa, to Boise, Idaho, the cost of buying a home has soared far past the point of affordability for many in the market. One culprit: Home construction per household is at its lowest level since Kennedy was president. In some growing midsize cities, there are 10 times as many buyers as homes available. And across the country, the bulk of the homes that are being built are aimed at high-end buyers, not new homeowners. Matt Levin/CALmatters In the Bay Area, NIMBY attitudes toward housing density give rise to a 'yes in my backyard' campaign The San Francisco metro area has some of the highest housing costs in the country, with home and rent prices so out of hand that some young tech-sector workers have banded together to attend zoning meetings and fight for more homes. "I got asked so many times, 'Who's paying you to be here?' " says a leader of the 1,700-member group. "And I was like, no one could pay me to care this much." "YIMBY" groups have since popped up in Austin, Texas, Denver and New York. Meredith Rizzo/NPR For many blacks, the American dream remains an impossible one In the past 30 years, homeownership rates for almost all groups of Americans have gone up, but for African-Americans, the rate dropped 3 percentage points, to 43 percent. Lower incomes and savings have a lot to do with that, but the legacies of redlining and enforced segregation still reverberate in many cities. African-Americans were also among those most targeted for subprime loans before the bubble burst in 2008. Kirk Siegler/NPR Wanted in rural America: all-new businesses, homeowners, plumbing and wiring Since the recession, Americans have been staying in their homes twice as long as they had before. In small towns, that can often mean that existing homes on the market have gone decades without major renovations. New homes, meanwhile, come up every few months and are snatched up in a flash.One developer says: "Most of my houses are sold before they're done." That leaves rural areas in a paradox: Even if they managed to attract new business, there's nowhere for workers to live. You received this message because you're subscribed to our Best of NPR emails. |  Unsubscribe  |  Privacy Policy | NPR 1111 N. CAPITOL ST. NE WASHINGTON DC 20002