The troubling ratio of mortgage debt to housing value is going to pose a problem for millions of baby boomers, who are set to retire with almost no equity, according to Dean Baker of the Center for Economic and Policy Research in Washington, D.C.
"The quarterly Flow of Funds data from the Federal Reserve Board show that homeowners are still taking on mortgage debt at a healthy pace even as their homes have largely stopped appreciating in value. Homeowners increased their mortgage debt at a 5.4 percent annual rate in the first quarter, adding debt at an annual rate of $510 billion. This is rate of borrowing is down from the 9.3 percent growth rate in 2006, but it is considerably more rapid than the 2.0 percent rate of house appreciation reported for the first quarter.
As a result, the ratio of equity to home value continued to fall...This drop in the ratio of equity to value is especially disconcerting given the country's demographics. With much of the baby boom cohort at the edge of retirement, it would be expected that the ratio of equity to value would be near record highs.
The long-term problem is that tens of millions of baby boomers are approaching retirement with relatively little equity in their homes and almost no assets outside of their homes. Their retirement income will be almost entirely dependent on Social Security."
FULL STORY: Ratio of Mortgage Debt to Housing Value Hits New Record
San Diego to Rescind Multi-Unit ADU Rule
The city wants to close a loophole that allowed developers to build apartment buildings on single-family lots as ADUs.
The VW Bus is Back — Now as an Electric Minivan
Volkswagen’s ID. Buzz reimagines its iconic Bus as a fully electric minivan, blending retro design with modern technology, a 231-mile range, and practical versatility to offer a stylish yet functional EV for the future.
Has President Trump Met His Match?
Doug Ford, the no-nonsense premier of Canada's most populous province, Ontario, is taking on Trump where it hurts — making American energy more expensive.
Study: Drops in Transit Ridership Linked to Extreme Weather
Unsurprisingly, people are less likely to use transit during extreme weather events, which are becoming more common around the country.
Washington State May Cap Rent Increases at 7 Percent
House Bill 1217 was passed by the House and will move next to the state Senate.
Alaska Considers “Homeless Bill of Rights”
The proposed bill builds on laws enacted by Rhode Island, Connecticut, and Illinois.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
Resource Assistance for Rural Environments
City of Edmonds
City of Grandview
Harvard GSD Executive Education
UCLA Lewis Center for Regional Policy Studies
City of Piedmont, CA
Great Falls Development Authority, Inc.
HUDs Office of Policy Development and Research