Housing

Error message

Deprecated function: The each() function is deprecated. This message will be suppressed on further calls in _menu_load_objects() (line 579 of /var/www/drupal-7.x/includes/menu.inc).

Who Has Been Evicted and Why?

Published by Anonymous (not verified) on Wed, 08/07/2020 - 9:15pm in

Tags 

Credit, Housing

Andrew Haughwout, Haoyang Liu, and Xiaohan Zhang

LSE_Who Has Been Evicted and Why?

More than two million American households are at risk of eviction every year. Evictions have been found to cause prolonged homelessness, worsened health conditions, and lack of credit access. During the COVID-19 outbreak, governments at all levels implemented eviction moratoriums to keep renters in their homes. As these moratoriums and enhanced income supports for unemployed workers come to an end, the possibility of a wave of evictions in the second half of the year is drawing increased attention. Despite the importance of evictions and related policies, very few economic studies have been done on this topic. With the exception of the Milwaukee Area Renters Study, evictions are rarely measured in economic surveys. To fill this gap, we conducted a novel national survey on evictions within the Housing Module of the Survey of Consumer Expectations (SCE) in 2019 and 2020. This post describes our findings.

Our survey evidence complements recent studies based on administrative court data in two ways. First, evictions can happen outside of the court system. Some evidence even suggests that more than half of evictions are informal, without being ordered by a court. Second, within a survey, we can elicit reasons for evictions—for example, loss of income, as opposed to divorce or sale of a property by the landlord—to shed light on the events leading up to evictions.

Our eviction survey module consists of the following questions. First, to encourage truthful reporting by respondents with an eviction history, we ask all respondents whether they know someone who has been evicted since 2006. Then, respondents are asked whether they themselves have been evicted in the past, and if so, the year of eviction. Finally, we elicit reasons for eviction by offering respondents nine predefined options, such as “health issues/medical bills” and “increase in monthly rent or utility costs,” as well as the ability to type in their own reasons if theirs is not covered by the options provided. After merging these survey responses with a rich set of demographics and other outcomes collected from the SCE, we examine the links between eviction, income, homeownership status, and credit access.

Eviction Rate and Income

Our analysis finds that evictions are relatively common in the United States. More than 24 percent of households know someone who has been evicted and about 4 percent of households have been evicted themselves. These rates are substantially higher for current renters, with 37 percent knowing someone evicted since 2006 and 9 percent having an eviction history. For homeowners, these shares are 21 percent and 2 percent, respectively. Our eviction rate is slightly lower than that of a previous study based on the Milwaukee Area Renters Study, which showed that one in eight renters in Milwaukee were evicted between 2009 and 2011. The different eviction rates can potentially be attributed to the differences between samples (national versus local) and different survey years.

Eviction is related to household income in a highly nonlinear way, as shown in the chart below. About 73 percent of the households who have been evicted before have a current income under $50,000. For income bins above $50,000, the eviction rate is always under 3 percent, and gradually declines as income rises. The percentage of households knowing someone who has been evicted is highly correlated with the share of households who have been evicted themselves.

Causes of Eviction

Turning to reasons for eviction, the next chart shows that slightly more than half of respondents with an eviction history selected “job loss/ unemployment,” “reduction in income,” or both as reasons for their eviction, making income or job loss the most prevalent reason.

Besides income loss, about 15 percent of the evictions were driven by property sales, remodeling, or landlords changing the property to a primary residence for themselves. In fact, for households that did not suffer an income loss, sale of the property by the landlord was the most common driver of evictions. (Note that we did not offer these “no‑fault” reasons as options for respondents to choose from, meaning that our survey participants entered them in the “Other” category. This design makes it unlikely that respondents untruthfully used these reasons for their eviction.) Taken together, a meaningful fraction of evictions is no‑fault. Such results motivate recent state and local policies requiring “good cause” for evictions.

Who Has Been Evicted and Why?

Homeownership among Evicted Households

We next study homeownership for households with an eviction history. We find that households with an eviction history are much less likely to be homeowners than other households, with a homeownership rate of 35 percent (regardless of whether their evictions were at-fault or no-fault), compared to an average of 74 percent for our full sample. Put another way, however, this means that more than one-third of households with past evictions are homeowners, suggesting that many evicted households subsequently overcome challenges and become homeowners.

Credit Access for Evicted Households

The next chart presents credit-access results for households, broken down by eviction history and homeownership status.

We can see that among current renters, those with past evictions are less likely to have access to credit cards and auto loans, consistent with previous work showing that eviction negatively affects credit access and consumption for several years. The bottom panel shows that renters with past evictions are more likely than other renters to have applied for credit cards in the past twelve months. Therefore, despite applying more often for credit cards, renters with past evictions are less likely to have them. This suggests that considering only whether renters have credit cards could understate the impact of evictions on credit supply to renters. Looking at student loans, we see that for current renters, there is no significant relationship between access to student loans and eviction history, potentially because student loans are generally not underwritten.

Turning to homeowners, we see no substantial differences in credit access—for credit cards, auto loans, or student loans—between those with and without an eviction history, suggesting that once an evicted household becomes homeowners, they enjoy access to credit similar to that of other households.

One final note of interest is that when we compare respondents who experienced a no-fault eviction with those who were evicted for income-related reasons, we don’t get a clear message about whether it is eviction or income instability that causes outcomes such as constrained credit access. A tentative read of the data suggests that eviction itself serves as an impediment to credit access and home ownership for those who remain renters. However, a significant share of no-fault evictees achieve homeownership and enjoy high current incomes.

Who Has Been Evicted and Why?

Eviction and Race

Our survey provides some evidence that evictions are concentrated in minority communities. Minority respondents are more likely to report that they have been evicted in the past, although this result becomes statistically insignificant when we account for income and education levels. But minority respondents are 8 percentage points more likely to report knowing someone who has been evicted, a statistically significant result even when we account for income and other demographics.

Conclusion

In summary, based on a novel survey, we find that evictions are fairly common in the United States, with about 9 percent of renters having at least one past eviction. Income loss is the most important cause of eviction, followed by property sales, remodeling, or conversion of the property to a primary residence, with the latter three drivers highlighting the importance of protecting renters from no-fault evictions. We also find that evictions are linked to reduced credit access. Despite these challenges, one-third of evicted households subsequently become homeowners.

Andrew Haughwout

Andrew Haughwout is a senior vice president in the Federal Reserve Bank of New York’s Research and Statistics Group.

Haoyang Liu

Haoyang Liu is an economist in the Bank’s Research and Statistics Group

Xiaohan Zhang is an assistant professor at California State University‑Los Angeles.

How to cite this post:

Andrew Haughwout, Haoyang Liu, and Xiaohan Zhang, “Who Has Been Evicted and Why?,” Federal Reserve Bank of New York Liberty Street Economics, July 8, 2020, 2020, https://libertystreeteconomics.newyorkfed.org/2020/07/who-has-been-evict....




Disclaimer

The views expressed in this post are those of the authors and do not necessarily reflect the position of the Federal Reserve Bank of New York or the Federal Reserve System. Any errors or omissions are the responsibility of the authors.

Introduction to Heterogeneity Series III: Credit Market Outcomes

Published by Anonymous (not verified) on Tue, 07/07/2020 - 10:00pm in

Rajashri Chakrabarti

 Credit Market Outcomes

Average economic outcomes serve as important indicators of the overall state of the economy. However, they mask a lot of underlying variability in how people experience the economy across geography, or by race, income, age, or other attributes. Following our series on heterogeneity broadly in October 2019 and in labor market outcomes in March 2020, we now turn our focus to further documenting heterogeneity in the credit market. While we have written about credit market heterogeneity before, this series integrates insights on disparities in outcomes in various parts of the credit market. The analysis includes a look at differing homeownership rates across populations, varying exposure to foreclosures and evictions, and uneven student loan burdens and repayment behaviors. It also covers heterogeneous effects of policies by comparing financial health outcomes for those with access to public tuition subsidies and Medicare versus those not eligible. The findings underscore that a measure of the average, particularly relating to policy impact, is far from complete. Rather, a sharper picture of the diverse effects is essential to understanding the efficacy of policy.

Here is a brief look at each post in the series:

Inequality in U.S. Homeownership Rates by Race and Ethnicity1. Inequality in U.S. Homeownership Rates by Race and Ethnicity

Andrew Haughwout, Donghoon Lee, Joelle Scally, and Wilbert van der Klaauw investigate racial gaps in homeownership rates and, importantly, explore the reasons behind these differences. They find:

  • The Black-white and Black-Hispanic homeownership gaps widened after the Great Recession, markedly more so after 2015.
  • The foreclosure crisis disproportionately affected areas with majority Black or Hispanic populations.
  • Explanations for the homeownership gap may include differential effects of tightening underwriting standards across areas with a majority Black or Hispanic population versus those with a majority white population, differences in labor market outcomes across these areas during and following the Great Recession, and larger incidence of student debt in these areas.

Who Has Been Evicted and Why?2. Who Has Been Evicted and Why?

Andrew Haughwout, Haoyang Liu, and Xiaohan Zhang explore the reasons behind evictions, who is more likely to be evicted, and the possibility of owning a home and gaining access to credit following evictions. Their findings reveal:

  • Large shares of low-income households have been evicted.
  • Income or job loss and change in building ownership are important reasons behind evictions.
  • Renters with a past eviction history are less likely to have access to credit cards and auto loans.

Measuring Racial Disparities in Higher Education and Student Debt Outcomes3. Measuring Racial Disparities in Higher Education and Student Debt Outcomes

Rajashri Chakrabarti, William Nober, and Wilbert van der Klaauw investigate whether (and how) differences in college attendance rates and types of college attended may lead to student debt borrowing and default. The key takeaways include:

  • There are noticeable disparities in college attendance and graduation rates between majority white, majority Black, and majority Hispanic neighborhoods, with graduation rates the lowest in majority Black neighborhoods.
  • Students from majority Black neighborhoods are more likely to hold student debt and in larger amounts.
  • Borrowers from majority Black neighborhoods are more likely to default, and this pattern is more prominent for borrowers from two-year colleges than those from four-year colleges.

Do College Tuition Subsidies Boost Spending and Reduce Debt? Impacts by Income and Race4. Do College Tuition Subsidies Boost Spending and Reduce Debt? Impacts by Income and Race

Rajashri Chakrabarti, William Nober, and Wilbert van der Klaauw investigate the effect of tuition subsidies, specifically merit-based aid, on other debt and consumption outcomes. The main findings include:

  • Cohorts eligible for these tuition subsidies have higher credit card balances and higher delinquencies in their early-to-mid-twenties. These patterns are more evident for borrowers from low-income and predominantly Black neighborhoods.
  • Eligible cohorts are more likely to own cars (as captured by auto debt originations) in their early-to-mid-twenties. This pattern is more prominent for borrowers from low-income and predominantly Black neighborhoods.
  • The patterns indicate substitution away from student debt (as net tuition declines) to other forms of consumer debt for eligible cohorts in college-going ages, a pattern more prominent for borrowers from low-income and Black neighborhoods.

Medicare and Financial Health across the United States5. Medicare and Financial Health across the United States

Paul Goldsmith-Pinkham, Maxim Pinkovskiy, and Jacob Wallace investigate the effect of access to health insurance programs, as captured by Medicare eligibility, on financial health of individuals. They find:

  • Medicare eligibility markedly improves financial health, as captured by declines in debt in collections.
  • Access to Medicare drastically reduces geographic disparities in financial health.
  • The improvements in financial health are most evident in areas with a high share of Black, low-income, and disabled residents and in areas with for-profit hospitals.

As these posts will demonstrate in greater detail tomorrow, the average outcome doesn’t provide a full picture of credit market outcomes. There is considerable heterogeneity in different segments of the credit market both in terms of outcomes, as well as the in the effects of specific policies. Outcomes vary by a range of factors, such as differences in race, income, age, and geography. We will continue to study and write about the importance of heterogeneity in the credit market and other segments of the economy.

Chakrabarti_rajashriRajashri Chakrabarti is a senior economist in the Federal Reserve Bank of New York’s Research and Statistics Group.

How to cite this post:

Rajashri Chakrabarti, “Introduction to Heterogeneity Series III: Credit Market Outcomes,” Federal Reserve Bank of New York Liberty Street Economics, July 7, 2020, https://libertystreeteconomics.newyorkfed.org/2020/06/introduction-to-he....

Related Reading:

Series One

Introduction to Heterogeneity: Understanding Causes and Implications of Various Inequalities

Series Two
Introduction to Heterogeneity: Labor Market Outcomes




Disclaimer

The views expressed in this post are those of the author and do not necessarily reflect the position of the Federal Reserve Bank of New York or the Federal Reserve System. Any errors or omissions are the responsibility of the author.

Cartoon: Cancel landlords

Published by Anonymous (not verified) on Sat, 04/07/2020 - 7:50am in

Federal, state, and local governments could’ve prevented the looming eviction and homelessness crisis, but at least the stock market was rescued.

Dominic Cummings Wants to Take Housing Out of the Hands of Local Authorities

Published by Anonymous (not verified) on Mon, 29/06/2020 - 4:03am in

I was at a Zoom meeting Friday evening of my local constituency Labour party, Bristol South. The evening was devoted to a discussion of how the party should respond and formulate proper policies following the Keir Starmer’s national policy review. The areas under discussion that evening were housing and local democracy, and health and social care after the Coronavirus. Many members that the way to restore proper health and social care would be to give power back to the trade unions, and proper wages and career prospects to the women and men working in our NHS and care sector.

Local democracy is rather more complicated, however. As has been shown by the news over the last couple of days, many local authorities are now in dire financial straits thanks to the Coronavirus pandemic. The Tories did promise that they’d give them all the funding they needed to cope, but it’s been a typical Tory promise: the funding hasn’t materialised. The result is that a number of local authorities are facing bankruptcy. Wiltshire in the West Country is one, and Bristol may well be another. Bristol has fared better than most, as the much-maligned elected mayor, Marvin, did manage to sort out the financial mess and serious budget deficits left by the previous elected mayor, George Ferguson. It seems under Red Trousers there was serious financial mismanagement. This really doesn’t surprise me, as Ferguson announced one year there would be tens of millions of cuts, but that we shouldn’t be afraid of them. Before he became an independent, Ferguson was a Lib Dem, but he may as well have been a Tory.

It’s unclear what the proper spheres of national and local government are. Andrew Marr has published a book on this very issue, but I stopped reading it and put it away due to the flagrant anti-Labour bias on his TV show. I guess I’ll have to dig it out and start reading it properly, as this could become a major issue in the next few years. It is a major problem how we can get the British public involved in both national and local government, so that they don’t feel ignored and marginalized by the authorities.

And there’s a serious problem for local authorities on the horizon. Apparently Dominic Cummings wants to take housing out of the hands of local authorities. This is extremely alarming, given the closeness between the Tories and developers, as shown by Jenrick’s scandalous conduct over at Tower Hamlets. As Mike and the others have revealed on their blogs, Jenrick allowed Tory donor Richard ‘Dirty’ Desmond to develop Westferry in London against existing planning regulations or the wishes of the local authority after Dirty Des gave the Conservatives a £12,000 bung. After twelve years of power, we’re back to John Major and New Labour levels of sleaze and corruption again. It’s feared that if the Tories do take it housing into national government, they’ll just let off a free-for-all of development.

The Labour party in Bristol is trying to encouraging the renovation of older properties as well as the construction of new housing. Not only does this also provide accommodation, but it also employs more people. There are also problems with the current planning legislation in that developers can convert old commercial properties into residential housing in areas around music venues. This has been done in the old office blocks surrounding the Bristol pub, the Fleece and Firkin, which has been a centre for live musical performances in Bristol since the 1980s. The problem is that at the moment the developers don’t have to do anything to protect the homes’ prospective residents from the noise, so that they complain instead about the music venue. The local authority in Bristol is trying to bring in some of the continental legislation that protects existing music venues by insisting that the developers must install double glazing and so on when they build flats and homes in such areas.

The party on Friday was expecting the Tories to make the announcement they were taking housing away from local authorities today, but wondered if they actually would after the scandal with Jenrick. I haven’t heard that they have. But it’s clearly something they would dearly love to do. If that happens it will lead to housing and building development that isn’t wanted by the existing residents of an area, and the further destruction of local democracy.

This is an area which needs to be very closely watched and guarded.

Future uses for student accommodation

Published by Anonymous (not verified) on Wed, 24/06/2020 - 1:44pm in

Tags 

Housing, Students

Vacant dwellings 720

Since the late 1990s, Purpose-Built Student Accommodation (PBSA) has been a feature of development in and around the centres of education in our cities, housing the burgeoning student population that has significantly contributed to Australia’s population growth in recent years.

Now, as overseas migration, including most international students, has slowed to a trickle, how will we use these towers of one-bedroom units? Kieran McConnell shares some insights from his capstone research project into PBSAs – future ghost towers, or ghettos in the sky?

High levels of vacancy resulting from depopulation or a change in economic conditions can have long-lasting ramifications for the urban environment in which vacant buildings and houses are located.

Cities have always experienced varying levels of occupancy due to the ebbs and flows of the economy and changes in living preferences. Normally, this is a gradual phenomenon, that allows for organic regeneration and growth (creative destruction).

However, when areas contain a heavy concentration of a specific demographic and/or an industry, rapid change, either deliberate or via external shocks leaves them overexposed to a rapid loss of said people and industries, and because policymakers can be blinded by the good times, there is generally little in the way of ready to go interventions to stem the tide.

COVID-19 – a challenge for ‘student cities’

Australian cities where international students account for a large share of residents are scrambling to find solutions to the possibility of empty high rises and streets due to the COVID-19 pandemic.

Restrictions put in place to contain the virus have, in part, resulted in the first decline in student visa arrivals since March 2013. Adding, to the reduction in demand, capital cities are experiencing a boom in purpose-built student accommodation developments.

The City of Melbourne alone has over 10,000 accommodation units currently under construction or with planning approval. As a result, demand for student accommodation – once thought of as a given and projected to grow for the foreseeable future – is now staring down a double barrel of low demand and substantial oversupply.

These are the key elements for long term vacancy and has been historically correlated with social problems for cities including vandalism, abandonment of buildings and ultimately a cascading deterioration of whole areas.

Are there alternative uses for PBSAs?

To avert the negative consequence of population loss, other suitable uses for PBSA facilities need to be found.

However, questions have been raised over the ability for PSBA units to be retrofitted. And with an impending economic downturn (our recently-updated national forecasts are showing Australia’s national growth rate at 0.7% in 2020/21, down from 1.2% in 2019/20), some previous viable options such as general residential, hospitality and commercial use, may now be untenable.

For operators of PBSA facilities, they would prefer to fill the empty beds with students once again, and so too would city planners (this is reflected in the restrictive section 173 agreements that stipulate PBSA facilities can only accommodate students).

Getting students back to Australia

Lobbying by universities for the federal government to introduce policy that allows students back next year through ‘special travel bubbles’ and quarantine measures will in some way help avert a situation of ‘destudentifaction’ (out-migration of students). However, with Universities such a Melbourne Uni forecasting $1 Billion lost in revenue for the next three years, the status quo returning is looking highly unlikely.

As a consequence, operators of PBSA facilities in Australia have approached and been contracted by state and local governments to utilise extra capacity for social housing. Scape, Australia’s largest provider of PSBA has offered excess capacity to the Victorian State government for quarantine purposes and in Queensland, the state government is utilising a Scape PSBA facility in inner Brisbane to accommodate 300 homeless persons for the duration of the pandemic.

Being cautious about short term thinking

Little or no planning controls or policy exists for such a situation and worryingly, this change in use is being considered and implemented in extreme circumstances.

Yes, it will quickly increase the number of beds and satisfy immediate requirements, but will the converted units and their location meet the needs of its future residents, most likely our most vulnerable citizens?

Are PBSA facilities suitable for social housing?

This situation has led me to investigate whether social housing is an appropriate alternative use for PBSA facilities. My research focused on the spatial and building characteristics of PBSA facilities constructed post-2002 in the City of Melbourne to determine a level of transformation suitability.

The analysis generated a score based upon a like-for-like swap (structural changes not considered). It demonstrated that most PBSA facilities had a medium-to-high level of appropriateness. Generally, facilities have a high number of services present within walking distance. And despite the relatively small size of the standard PBSA units (Type 1 – PBSA design guidelines), facilities have potential to satisfy a combination of community housing guidelinesBetter Apartment Design Standards and current supportive housing recommendations, due the provision of communal areas.

Furthermore, in addition to satisfying these characteristics, the majority of PBSA facilities are made up of studio or one-bedroom units. This configuration according to Victorian Auditor General report into the state’s public housing system is what it desperately needs and is failing to address (there is an overall lack of one-bedroom stock across the state but there are also serious spatial mismatches – in particular, a lack of appropriate housing stock in growth areas).

A win-win-win

For State governments like Victoria, this change in use could quickly and effectively increase the quality and number of units available for social housing.

For the PBSA operators, it could help plug the huge revenue hole that the reduction in the number of international students coming to Australia has caused, and will continue to cause.

And for affected local governments, it may avert depopulation and its negative economic and demographic effects.

Learn more about this work

Kieran McConnell is a forecaster with our local government forecasting team, and has prepared this piece as a summary of his capstone research project. For a more detailed analysis of opportunities related to Purpose Built Student Accommodation in your area, or to read the full study, contact our forecasting team here.

David Hulchanski class discussion

Published by Anonymous (not verified) on Mon, 22/06/2020 - 7:45am in

I recently participated in a panel discussion in David Hulchanski’s graduate-level social housing and homelessness course at the University of Toronto.

Points raised in the blog post include the fact that all English-speaking countries of the OECD have relatively low levels of public social spending, relatively low levels of taxation, and serious affordable housing challenges.

The link to the full blog post is here.

David Hulchanski class discussion

Published by Anonymous (not verified) on Mon, 22/06/2020 - 7:45am in

I recently participated in a panel discussion in David Hulchanski’s graduate-level social housing and homelessness course at the University of Toronto.

Points raised in the blog post include the fact that all English-speaking countries of the OECD have relatively low levels of public social spending, relatively low levels of taxation, and serious affordable housing challenges.

The link to the full blog post is here.

Seattle’s Tiny Houses Keep the Virus Out

Published by Anonymous (not verified) on Thu, 18/06/2020 - 6:27am in

Three great stories we found on the internet this week.

Small but mighty

To slow the spread of the coronavirus, cities have been housing the homeless in hotels, a well-intentioned solution, albeit expensive and temporary — flaws that tiny houses could fix.

Shelterforce takes a look at a string of villages in Washington State where some 400 tiny houses have been built for homeless people over recent years. The miniature model has attracted attention since the pandemic began. The homes are eight by twelve feet and spaced five feet apart, ensuring residents are socially distanced from their neighbors. The houses seem to be effective at stopping the spread of Covid-19 — when hundreds of the tenants were tested on May 12, not a single result came back positive.

In March, Seattle Mayor Jenny Durkan fast-tracked funding to build 50 more tiny houses there, calling them “probably the most successful shelter we have to get people into long-term housing.” That’s because, unlike free hotel rooms, which will become unavailable once tourists return, tiny houses provide shelter until the resident is truly ready to move on. They’re also cheaper: housing someone in one of them costs an average of $38 per day, as opposed to $56 per day in a shelter or over $100 per day in a hotel. And, of course, they can be used in perpetuity, as a permanent part of Washington’s homelessness solution long after the pandemic has passed.

Read more at Shelterforce

Teaching for fluency

Teton County, Wyoming, a place of stunning beauty and world-renowned skiing, is also excelling in an unexpected realm: helping students who are non-native English speakers thrive.

Graduation rates for English language learners (ELL) in the district’s schools have been higher than statewide rates nearly every year for the past decade. In addition, for eight of those years, the district’s “achievement gap” — the difference in graduation rates between ELL students and the rest of the student body — was smaller than the state average.

jackson holeJackson Hole, Wyoming. Credit: Alan English / Flickr

What’s their secret? Starting early is one big part of it. ELL support begins at kindergarten, which is earlier than in many other Wyoming school districts. This support includes extra reading and writing lessons, and targeted language instruction. By the time these kids get to high school, said one principal, “We are a recipient of what is happening at the middle and elementary levels.”

These early interventions do cost money, but Teton County funds the program with property taxes — no small potatoes, thanks to tony Jackson Hole — and allows the district to distribute those funds where they’re needed most so that a school’s resources aren’t tied to any given town’s local tax base.

Read more at the Jackson Hole News & Guide

Helping out the Joneses

Is the coronavirus crisis bringing neighbors closer together? The Guardian finds evidence that it might be. A recent poll in the U.K. found that two-thirds of respondents had answered a call to help a neighbor in the previous week, a number that has grown in comparison to similar pre-lockdown surveys. And Britain’s Office of National Statistics, which has been tracking the social impact of the virus, found that 71 percent of Britons were confident that their community would help them if they needed it, and that 67 percent had checked in on a neighbor in the past week.

Plenty of people the paper spoke to backed up these findings with anecdotal evidence, including one newly minted septuagenarian. On her recent birthday, her neighbors hung bunting in her garden and sang “Happy Birthday” to her from the street. “I just feel that I am part of a village in a way that I never was,” she said, “and I hope – I hope – that it doesn’t stop.”

Read more at the Guardian

The post Seattle’s Tiny Houses Keep the Virus Out appeared first on Reasons to be Cheerful.

Where are the most at risk mortgage holders?

Published by Anonymous (not verified) on Fri, 12/06/2020 - 11:31am in

Tags 

Housing

 "What happened to the narrative?" "The statistics kicked in!"

In the current climate of economic and social uncertainty, many have started to ask how this is likely to impact residents in their local area. Will low income households be able to make their financial commitments without continued Government support, especially if they aren’t able to return to usual employment or find a new job?

In this blog, Georgia looks at where low income households with a mortgage may be at risk.

Looking for more tips, tricks and insights for understanding the housing story of your area in the context of Covid-19 or more generally? Check out our other housing blogs and free Housing Report Starter Guide.

As the economic and social impacts of Covid-19 become clearer, many have started to ask how this is likely to impact residents in their local area. The particular concern is around the tapering down of Government support packages, such as the JobSeeker and JobKeeper payments in Septmeber. Will low income households be able to make their financial commitments without this support, especially if they aren’t able to return to usual employment or find a new job? Is some media speculation about increasing mortgage arrears and foreclosures likely? Will this lead to a decline in house price due to urgent sales?

These are all valid questions. Low income households – which we’re defining as those earning less than 80% of the median income of their region – are highly susceptible to struggling with their mortgage payments. Many are already in mortgage stress – this is households spending more than 30% of their income on their mortgage repayments. So I decided to investigate, in the eastern states most affected by the pandemic, where there might be hotspots for low income mortgagors. I’ve put the data in the interactive map below, so you can see how your local area fares.

!function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"])for(var e in a.data["datawrapper-height"]){var t=document.getElementById("datawrapper-chart-"+e)||document.querySelector("iframe[src*='"+e+"']");t&&(t.style.height=a.data["datawrapper-height"][e]+"px")}}))}();

The data is showing a high concentration of low income households with mortgages in the outer growth areas of our capital cities. This is not altogether surprising, as they are traditionally home purchasing areas, are relatively affordable in comparison to inner and middle ring areas, and therefore attract a younger and lower income demographic. What is quite startling, is that low income mortgagors account for more than one in ten of all households in some of Melbourne’s growth areas, such as Wyndham, Melton and Casey.

Unfortunately we don’t have a crystal ball, and have no way of knowing the Government’s plans for JobSeeker and JobKeeper until they are announced. But perhaps for Councils that suspect low income mortgagors in their area are likely to struggle, perhaps forewarned is forearmed. Further interrogation of this data might assist you in supporting your residents through the coming months.

Looking for more tips, tricks and insights for understanding the housing story of your area in the context of Covid-19 or more generally? Check out our other housing blogs and free Housing Report Starter Guide.

‘What matters’ is that equality works

Published by Anonymous (not verified) on Thu, 04/06/2020 - 5:00pm in

We are currently told that Black Lives Matter which, like all lives, of course they do. And while we now discover that the American policeman accused of murder had had 17 complaints against him, none of which seemed to have changed anything, and, indeed there are also instances of American policemen killing white arrestees with... Read more

Pages