Saturday, September 3, 2011

Downtown Rental vs Sale Ownership Trend

This economy is creating some interesting statistics.  Available condo units for sale in downtown Charlotte are lower than they have been in over 5 years, and available condo units for rent are higher than they have been, ever!  I have applied the information reported below from a national level and applied it to a local graph of downtown Charlotte activity.

Housing affordability continued to be near record highs in the second quarter, hovering near its highest level in the 20-plus years it has been recorded, according to the NAHB/WF Housing Opportunity Index.  'At a time when home ownership is within reach of more households than it has been for more than two decades and (interest) rates are at historically low levels, the sluggish economy and tight credit conditions confronting home buyers and builders remain significant obstacles to many potential home sales,' says Bob Nielsen, chairman of the National Association of Home Builders. 'That said, however, some housing markets across the country have stabilized and are beginning to show signs of a budding recovery.' Source: NAHB

The conversion of owner-occupied single-family homes into renter-occupied homes has played an important role in stabilizing housing markets that have been wracked by foreclosures, according to a report on rental housing. The Joint Center for Housing Studies of Harvard University report shows that 1.4 million single-family homes became occupied by tenants during the 2008-2009 period, up from 700,000 in the 2006-2007 period. 'That is a tremendous surge in rental housing supply,' JCHS research director Christopher Herbert said during a Washington presentation of the report’s findings.

The conversion from owner-occupied to renter-occupied data comes from the American Housing Survey that is published every two years. JCHS managing director Eric Belsky told National Mortgage News that he expects the next AHS report will show a continuing surge in conversions in 2010. Source: National Mortgage News

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