The US is becoming less affordable housing

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According to the new report Freddie mac, the amount of affordable housing for very low income families in the United States fell by more than 60% between the years 2010 and 2016. Data leads The Washington Post.

The report is the first to compare rent increases in specific divisions over time. It looked at loans that the corporation financed twice in the period between 2010 and 2016. This allows you to compare accurate rental data and how its availability has changed.

For the first time, 11% of almost 100 000 rental units across the country were considered affordable for very low income families. On second financing, when units were refinanced or sold, rents increased so much that only 4% of the same units were classified as available.

“Our supply of affordable housing is rapidly declining, with rent growth outpacing income growth in most major metropolitan areas,” said David Brickman, executive vice president and head of Freddie Mac Multifamily.

He added that affordable housing is dying out without government subsidies. More tenants flooded the market after people lost their homes in a housing crisis. In 2009, the share of vacant apartments was 8% compared to 4% in 2017. This trend, combined with the stagnant supply of apartments, has led to an increase in rent.

Freddie mac purchases mortgage loans from a network of primary market lenders and issues mortgage-related securities. This helps lenders provide loans to developers and owners for the purchase, refinancing, refurbishment and construction of apartment buildings.

The report noted a significant decrease in the share of available units in seven of nine states, where Freddie mac financed most rental units.

Colorado and North Carolina had the largest difference. When first funded, 32% of Colorado's units were considered affordable to very low-income families; in the second funding, only 8% in Colorado was considered affordable. Most of the rental units analyzed in Colorado were in the Denver area. In North Carolina, the percentage of affordable apartments fell from 10% to 0,3%, mostly in Charlotte.

In Arizona, Georgia, Nevada, Texas, and Washington, rental rates for low-income families have also decreased.

In California and Florida, the poorest households were no longer available on the rental market until the period covered by the report.

In California, 56% apartments were affordable for low-income families with first financing, compared to 10% with second financing. In Florida, the number of low-cost apartments fell from 60% to 39%.

A significant decrease in accessibility usually occurred most quickly, said Steve Guggenmos, vice president of research and modeling Freddie Mac Multifamily. Most units remain accessible to people with an average income in the area, with the exception of California, where only a quarter of the units were available to them.

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