Driven by rising home prices and growing demand, the U.S. housing recovery is well underway, concludes The State of the Nation’s Housing report released today by the Joint Center for Housing Studies of Harvard University. While still at historically low levels, housing construction finally turned the corner, giving the economy a much-needed boost. But even as the recovery gains momentum, homeowners in many parts of the countries face delinquency problems or owe more than their homes are worth, and severe housing cost burdens have set a new record.
The report describes the drastic increase in renter households nationwide, increases in multifamily construction, and problems facing potential homebuyers. “Tight credit is limiting the ability of would-be homebuyers to take advantage of today’s affordable conditions and likely discouraging many from even trying,” says Chris Herbert, Director of Research at the Joint Center for Housing Studies. “At issue is whether, and at what cost, mortgage financing will be available to borrowers across a broad spectrum of incomes, wealth, and credit histories moving forward.”