Housing and Policy Flashcards
Where you live defines
Public education
Public services (garbage pick up, libraries, emergency services)
Access to public goods (parks, museums, etc.)
Who you live around
How much wealth does U.S. residential real estate account for?
In 2003 U.S. residential real estate accounted for $13.4 trillion out of $34.8 trillion net stock wealth (O’Flaherty, p. 13)
In 2015, household ownership of real estate was $25 trillion out of a total of $31 trillion of nonfinancial assets.
What proportion of Gross Domestic Product (GDP) do housing and housing services account for in a given year?
GDP = includes goods and services produced by a nation’s own citizens and firms in a given year
Housing contributes to GDP in several ways:
through private residential investment and consumption spending on housing services
What percent of income are monthly housing costs?
14% of owners and 12% of renters pay 40% or more of income for monthly housing costs
How much of monthly income do folks pay for housing?
25% of households pay between 15 and 24% of income on monthly housing costs
How much does home equity account for household wealth?
Home equity is the current market value of a home minus the outstanding mortgage balance.
In 2007, the primary residence accounted for 31.8% of total family assets, however, housing generally constitutes a smaller share of total wealth as income increases (Bucks, et al., 2009).
Another way to say this: the more income a household has the less home equity matters to total wealth.
Another way to say this: the less income a household has the more home equity matters to total wealth.
The Committee on Ways and Means: Housing policy
Reduce housing costs and improve housing quality for low-income households
Promote residential construction
Expand housing opportunities for the poor, elderly, disabled and homeless
Increase homeownership
Empower the poor to become self-sufficient
Worst case needs are defined as renters with very low incomes
no more than 50 percent of the Area Median Income
do not receive government housing assistance and pay more than one-half of their income for rent, live in severely inadequate conditions, or both.
