Friday, December 9, 2016

Housing Related CBO Deficit Reduction Options Include Elimination of Voucher and LIHTC Programs.

I created the 11 page PDF HERE with housing related items I found in the larger just published 316 page CBO document HERE with options to reduce the budget deficit. 

Housing related items I found:

  • Fannie/Freddie reforms, 
  • Changes in the HUD Home Equity Loan program, 
  • Increasing tenant share of income paid for rent in subsidized rental programs, 
  • Reducing or eliminating the HUD voucher program, and
  • Changing the MID to a 15% non refundable tax credit. 
  • Eliminating the Low Income Housing Tax Credit program.


Originally created and posted on the Oregon Housing Blog.


Thursday, December 8, 2016

New ACS 2011-2015 Renter Cost Burden Data by Income Out: My Excel Lookup Includes 1,000+ Geos From US to OR Census Tract Levels.

Readers may recall that last December I did a post with an Excel workbook (HERE) that showed ACS 2010-2014 rent cost burdens by income levels; it included a lookup worksheet that allowed users to select from more than 1,000 geographies from the national level all the way down to the Oregon census tract level. 

On Thursday Census released 2011-2015 ACS data so I have constructed a similar workbook HERE that also includes a lookup worksheet that displays counts and percentages of rent burdens by income levels and a graph that displays the results for the chosen geography. The workbook includes worksheets with the raw data and a link to the query that you can paste into a web browser to replicate the data I used. 

The main point that the data illustrates is that rent burdens decline significantly by income levels and severe cost burdens are virtually non existent for renter HH's above $50k in Oregon, and the US. (There may be some cities and metro areas outside Oregon where that isn't true, but they are the exception and not the rule). 

The table/graph pasted below for Oregon illustrates this point (you may need to scroll to right to see full table/graph):



Putting this together required a fair amount of data manipulation:). IF you discover any problems drop me an email and I will take a look. (housepdx@gmail.com)

Originally created and posted on the Oregon Housing Blog


Friday, November 25, 2016

Corrected Address: Thanksgiving Home Prices Then and Now: HUD Foreclosure Example

Correction: Corrected Address to 4066 N. Albina 
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Many years ago, working with HUD Oregon Field Office Director Dick Brinck, I helped streamline the sale of HUD acquired/foreclosed properties via programmed reductions in sales prices at regular intervals to keep the inventory moving. 

I thought it might be interesting to take a look at an ad from November 1982, shortly after the program started. 

The PDF HERE is a page from the Sunday November 28, 1982 Oregonian

I selected the FIRST Portland property I saw listed at 4066 N. Albina, listed for a minimum bid price of $32,900 in the Oregonian.  I then navigated to PortlandMaps to find out the current value of this home

According to Portland MAPS the current real market value is $489,740, nearly 15 times the listed minimum bid price in 1982.  In contrast my condo is worth only about 3 times what I paid for it in 1980 and the 2016 Cost of Living Index is about 2.5 times that of 1982.

I don't think the big increases from the minimum bid prices in the ad are a unique circumstance for the one Portland property as there are other examples where price appreciation has also likely been meteoric  (Note a Bend minimum bid price of $15,800, probably a ski condo).  

Originally created and posted on the Oregon Housing Blog

Thanksgiving Home Prices Then and Now: HUD Foreclosure Example

Many years ago, working with HUD Oregon Field Office Director Dick Brinck, I helped streamline the sale of HUD acquired/foreclosed properties via programmed reductions in sales prices at regular intervals to keep the inventory moving. 

I thought it might be interesting to take a look at an ad from November 1982, shortly after the program started. 

The PDF HERE is a page from the Sunday November 28, 1982 Oregonian

I selected the FIRST Portland property I saw listed at 4006 N. Albina, listed for a minimum bid price of $32,900 in the Oregonian.  I then navigated to PortlandMaps to find out the current value of this home

According to Portland MAPS the current real market value is $489,740, nearly 15 times the listed minimum bid price in 1982.  In contrast my condo is worth only about 3 times what I paid for it in 1980 and the 2016 Cost of Living Index is about 2.5 times that of 1982.

I don't think the big increases from the minimum bid prices in the ad are a unique circumstance for the one Portland property as there are other examples where price appreciation has also likely been meteoric  (Note a Bend minimum bid price of $15,800, probably a ski condo).  

Originally created and posted on the Oregon Housing Blog

Thursday, November 17, 2016

National American Housing Survey 2015 is Out; Homeowner Median Incomes Were Double Renter Median Incomes.

A Census website that allows custom tables is up; the table with median incomes by tenure should be HERE. (Click on "Get Table" in left pane for income data to appear).

Renter Median Incomes Were 50% of Homeowner Median Incomes; 

Renter household median income was $32,796. 
That was 50% of homeowner household income of $65,010 and 65% of overall median household income of $50,400. 

Note: Portland metro AHS 2015 data is scheduled to be released in January 2017. 

My Calculation of Affordable Rents/Housing Expense

An affordable monthly rent (@30% of income) at the AHS reported 2015 renter median household income would be $820. That affordable monthly housing expense jumps by 54% to $1,260 if the overall median income household income is used and by 98% to $1,625 if the median income homeowner household is used. 

The table below shows the AHS data and my calculations. 


The net effect of using the overall median household income (or median family household income) instead of the renter median household income is 
  • To increase the calculated "affordable" housing rent.  
  • To increase the share of all renters who qualify for programs that use these calculated higher "affordable" rent levels.
Originally created and posted on the Oregon Housing Blog