Current Economic Conditions Of The Usa Is Characterized By Slow Growth And Deteriorating Household Net Worth

The typical series of big events in life include graduating high school, going to college, finding a significant other, graduating college, getting married, and buying a home. Although these events happen in a variety of different patterns nowadays, a major bump in the road is occurring when looking to buy a home, especially in Colorado Springs. This article highlighted the challenges that the millennial generation is facing when reaching this stage in life. "Student loan debt is more than $1.2 trillion, and nearly 70 percent of college graduates have some student loan debt, according to the Federal Reserve (pg 1)." These college graduates now need to add loan payments to their monthly debts, leaving them with even less disposable income. Not

More whites can own a home compared to people from other minorities. “Statistics indicate that 73% of whites own homes compared to 45% African Americans” (McKernan and Ratcliffe, 2). Whites are more likely to receive prime mortgages compared to black. Home ownership is a large determinant of wealth. The government provides subsidies for home ownership, but such subsidies only benefit the rich because they are based on income. The rich prosper from mortgage interest deduction benefits. There is a clear disparity and a wide gap in home values between white and black neighborhoods. Unfortunately, this is mostly caused by policy. The National Housing Act of 1934 marked the black neighborhoods as credit risks. Such neighborhoods have high poverty rates and declining infrastructure. People have maintained this perception since that time. “It would be possible to reduce the wealth gap by offering tax credits to low-income households and removal of other barriers that prevent home ownership” (McKernan and Ratcliffe, 2). At the same time, it is important to make the mortgage lending and relief programs transparent and fair. Institutionalized discrimination and negative stereotypes should be obsolete in the pursuit of

The housing crisis in the late 2000’s was created in part from subprime loans that lenders gave to individuals that did not have to provide proof of income that they could afford the house. This was a disaster likely to repeat itself. If a person is hoping to buy a home, they will buy whatever the lender allows them to purchase even though it could be a financial stretch. Lenders, builders, sellers, appraisers, buyers, owners, and governmental policy makers are all still gambling with the economic future of both their buyers and the American economy as a whole.

For generations homeownership has been viewed as one of the cornerstones of the American dream. Nevertheless this American dream has almost exclusively been available to white Americans. However, over the past 25 years this dream has become a reality for more and more Americans as the rise of the subprime mortgage market has allowed the majority of Americans to become homeowners. In 2005, at the peak of the housing bubble, 69.2% of Americans seemed to have achieved the American dream of owning their homes. Three years later, the housing bubble popped and the American economy entered the most severe economic downturn since the Great Depression. The downturn was largely caused by the implosion of the subprime mortgage market whose growth was driven, in part, by the belief that homeownership is a right that all Americans are entitled to as part of the American dream. The perpetuation of this belief is dangerous to the United States economy because homeownership has for so long been unobtainable for the majority of non-white Americans, as one of the only paths to this American dream for many minorities is through high-risk home loans that threaten the stability of the economy.

House, a shelter for people, which is one of a basic requirement for human survival in today’s world. According to Andriotis (2014) and Shlay (2006), homeownership is regarded as an aspect of the American dream for a long time (p.1) (p.527). The American dream, a pursuit that a large number of US citizens seek, require individuals work hard to achieve it. In other words, owing a property has long been a gateway to the American dream. Individuals have possession of the house if they have enough money to afford the payment on a home and be willing to purchase it. Otherwise, people need to rent a house to guarantee that they have a relatively fixed shelter. However, there are the limited rights for the tenants, and thus they have to depend on the decision of owners, whereas the landlords have the power to make a decision on the property since they have the housing ownership. Hence, whether to buy or rent have become a fundamental problem that plagues the individuals. Elsinga and Hoekstra (2005) point that the homeownership not only in favor of personal, but also benefit the community (p.403). Therefore, buying a house is over than renting since it brings tremendous benefits to individuals. Specifically, purchasing a property is a desirable option that generates tax benefit, build self-confidence for owners, and profits the construction of the community harmony rather than renting a house.

Freedom, liberty, and opportunity are just a few of the incredible advantages available to those who live in the United States. However, the ideologies surrounding the traditional “American Dream” have evolved with the changing generations of citizens of who have lived in this country. In years past, this multifaceted desire included having a family, a nice car, and a house with a white-picket fence. However, the current generation of millennials has seemingly dismissed this long-accepted dream and created one of their own. This change directly correlates with a number of events, including the Great Recession of 2008. An essential component, which included owning a home, has evidently dissolved from the current desires of younger

Given today’s market and forecasting for trends, we are observing a rather fierce market of competition to obtain a mortgage. Coupled with a decreasing number of inventory of available houses and increases in mortgage rates. The local real estate market should rise, and continue to gain value throughout the year. This is of course a positive reflection of a growing economy. It just doesn’t seem fair to the 1.1 million borrowers who rely on FHA mortgage loans. This number is predicted to decrease in 2017, as these typical households would not be able to afford the monthly mortgage rates. It is fair to assume that a growth in the number of renters of housing should be observed with the growing local real estate

Despite slow household growth in the last decade, there are several factors that indicate the housing market is set to rebound. The economy has seen a current increase in the number of people who are renting living spaces, whether they be apartment or homes (Searcey, 2015). As there continues to be a higher demand for rentals, especially in heavily populated cities, the rent pricing will increase. Justifying high rent prices, when comparable to purchasing a home, will be difficult to do. According to the National Association of Realtors, a large portion of Americans are allocating a large share of their income for housing. Economists predict that home buyers will continue to rise as long as the economy

There are different approaches among sociologists, policy makers, economists, and scholars toward public policy and the experiences of vulnerable families. All of them attempt to remedy cultural and behavioral modification of the poor families to move out of poor neighborhoods through the Move To Opportunity program. Government attempted to remedy the inequality issue through Housing Choice Voucher (HCV) program or Federal housing programs. Because living in disadvantage neighborhood level “contributes to environmental stressors that negatively affect the mental and physical health of children and adults” ( Deluca at el, 2013,

One fundamental cause of the homeownership crisis among African American communities are inflated subprime loans, which are implemented to expand the profit margins of the housing market and to uphold segregated communities, despite the passage of the Fair Housing Act of 1968. A subprime loan is a predatory loan with high interest rates that is intended for individuals that are high risk borrowers. However “some lenders provide financial incentives to mortgage brokers who push families into loans with higher interest rates” (Mendenhall, 32) ,despite their credit score or their ability to pay back the

One of the main difficulties low income individuals in urban spaces face is the access to affordable housing. Affordable housing “refers to housing intended for ‘low income’ or ‘very low income’ people” (Williams, 2003, p. 18). Housing is fundamental to the social and economic needs of people in the city. However, among the poor populations of this neighborhood, there is a shortage of affordable housing. The median household income in community board 4 neighborhoods is $27,000 (U.S. Census, 2013). Not only is the median household income almost below the national poverty line, but it is insufficient and cannot cover the rising costs of housing. Rent tremendously surpasses the financial budget of the low income residents in community board 4

This has forced community to seek creative ways to remove land from the speculative market and formulate ways to buy and sell homes that keeps them affordable. The affordability standard in the United States is based on the Department of Housing and Urban Development (HUD) definition stating that “a household should pay no more than 30 percent of its annual income on housing” (Towey 3). By 2006, 39 million households paid more than 30% of their income for their housing, and half of those were paying more than 50 percent of their income to cover housing expenses with data showing continued upward pressure on housing prices (Towey 4). With so much family income going towards housing in safer communities with better education systems, low-income and middle-income families have less money to pay for other necessities including food, clothing, transportation and medical care. People who live on the edge and decide where each dollar is spent have little spare time to devote to the greater

When we think of the “American Dream,” one of the components that we dream about is owning a home. But the value of real estate has been climbing – and in some cases, faster than the median household income of most Americans. This places real estate ownership out of the hands of more and more people, and makes buying a home more difficult. This infographic catalogs the listing price of real estate per square foot in cities across America. It reviews every state and looks at one to three cities in each one. Along with the list price of real estate, it compares those prices to the national average – so you can see that in some cities, it\'s two, three, four, or even twelve times as expensive as the national average to own property. To give you

The concept of poor is relative, as well as thought that FHA-insured loan options are for poor people depends on one’s meaning of being poor. However, the goal of the FHA is always to assist consumers and intending housebuyers with less-than-perfect credit or little money for down payments. The FHA 203(b) loan is regarded as the most typical loan option that the typical home buyer is eligible for.

It was always one of my dreams to own my own home. As a pastor’s son, we moved often and I always looked forward to creating roots of my own- a permanent place to call home. I imagined a home with hardwood floors and a man-cave complete with all of my professional sports jerseys lining the walls. I imagined a home that my future children, and grandchildren, would be able visit and find brass-framed pictures of myself and their mom and doorways with height marks penciled into the paint highlighting the growth and additions to the family.  It was a dream that was almost snatched away when the economy crashed and the housing market burst. When the housing market exploded, many, like myself, whose dreams seemed like a possible reality, looked more like a nightmare or even worse, a reality that would never come true. The economy crashed and many families were just looking for a way to provide for their families, much less trying to keep or take on a mortgage. It was a scary time for America, both for potential buys and those who lost their homes in a sudden and swift plummet. As we look back at what happened, we can reflect on a few lessons learned and silver linings that have resulted.