U.S. Households Make Long-Awaited Gains in Housing Recovery #homeownership #realestate

Source:  Wall St. Journal

Housing affordability is finally improving after years during which poor and middle-class American families have struggled to pay rent, according to an analysis of American Community Survey data.  Nearly half (49 percent) of renters were cost-burdened in 2015, meaning they spent more than 30 percent of their incomes in rent, compared with about 50 percent a year earlier - the lowest level since 2008.

Indeed, across the board, there are signs that affordability challenges are beginning to ease.  Some 33.6 percent of households were cost-burdened in 2015, meaning they spent more than 30 percent of their incomes on housing costs, down from 34.6 percent a year earlier, the fifth straight year of declines.  Much of the reason for the improvement in affordability for homeowners was low mortgage rates.  Renters also appear finally to be seeing income gains that are outpacing rent growth.

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