Housing shortage as owners stay longer
Seattle: Amazon is selling a transparent geo-plastic dome igloo for $1,200. Made by Garden Igloo, the 12-foot dome is made from recyclable PVC and PA6 plastic materials. One or two people can stand upright or lounge in chairs. The igloo can be cooled, heated and work in up to 90 pounds of snow or winds up to 31 miles per hour.
DFW: Plano has the highest percentage of seniors in the workforce of any city in the U.S., according to data from the U.S. Census Bureau and reported by the Dallas Business Journal. Of more than 34,000 Plano residents over 65, a quarter are working. From 2009-2017, seniors in the workforce grew 99%, while the Plano senior population grew 65%. Four additional cities with senior workforce ranging from 21-23% are Arlington, Irving, Garland and Dallas.
DFW: Latest U.S. Census Bureau figures show Hispanics account for 40.5% of DFW population gains. Black residents accounted for 23.5% of the region’s growth from July 2017-July 2018. Asian residents were 20.7% of overall growth and had the fastest growth in the state, from 4% to 5% of the Texas population. In the Dallas metro area, the Asian population has grown 56% since 2010. The non-Hispanic white population contributed 9.4% to the metro area growth. Demographers predict that Hispanics will be the state’s majority demographic sometime by 2022.
Tolleson: Opendoor, Zillow and Offer Pad have bought homes since 2014 in this suburb of Phoenix, trying to perfect programmatic house flipping. Last year, nearly 5,000 homes in the metro area were purchased, roughly one in every 20 existing homes sold to investors. They’re after transaction fees and anything they can get in reselling the property. Margins are low, so volume must be high and fast. Big investors now own more than 22,000 rental houses in metro Phoenix, one of the fastest-growing metro areas. The houses are relatively inexpensive, usually new and fairly same, reports the Wall Street Journal. In Arizona, borrowers can walk away without recourse. Mortgage lenders can repossess in as few as 120 days after missed payments. Big rental investors have amassed more than 300,000 rentals around the nation, including Dallas. In 2018, over 8% of Dallas home sales were to investors. Firms such as Opendoor pay cash, minus its fee from 6% to 13%. Both Opendoor and Offerpad are sources of inventory for the big landlords. Around 10% of homes sold by the two companies in 2018 went to big rental investors, according to Attom Data Solutions. Zillow plans to integrate its instant-buying program with a call-center mortgage lender it bought and make loans online.
D.C.: The housing market faces a home shortage as owners stay longer, according to a survey by the National Institute of Aging and the U.S. Census Bureau. The average tenure of a typical homeowner has increased in the last year. Before the crash in 2007, the average length of time lived in a home was five years. From 2008-2016, it was seven years. In 2019, the span is 11.3 years. Many owners have mortgages with historically low rates, so incentive is low to sell and borrow if money costs more. Seniors are also aging in place. Data from Freddie Mac shows that if seniors born from 1931-1959 acted like earlier generations, nearly 1.6 million housing units would have come to market by 2018. With improvements in health care and technology, older Americans prefer to age in place, satisfied with their communities, homes and quality of life. The Urban Institute estimates that 3.4 million millennials are missing out on home ownership. The number of homes retained by seniors is likely to grow as the number of seniors increase and barriers to staying put are reduced. Production of new homes is lagging.
NYC: Today, 20% of Americans live in multi-generational homes where at least two adult generations live under one roof, accounting for 64 million people. This is an increase of 8% since 1980, according to the Pew Research Center. This year, Wells Fargo lowered down payment requirements for duplex buyers to 5%, for loans conforming to Fannie Mae and Freddie Mac guidelines. Such loans can have as many as four borrowers, so a couple and parents can take out the loan together. Borrowers have to take a four-to-six hour online course about being a landlord. Some couples let parents live in their second home free by using IRS gift tax rules, allowing a gift up to $15,000 tax-free to any person. So couples could gift rent of $60,000 without a gift tax, after consulting with appropriate sources.