Analyzing Affordability In Metropolitan Housing Markets: An Examination Of Affordability For Middle-Income Households

Source: Daniel Melser & Celia Chen, Moody’s, January 28, 2008

As we begin 2008, the U.S. housing and mortgage markets are in the midst of what now accurately can be characterized as a housing bust. Mounting anecdotal reports from metro areas across the country – both recognized housing hot spots and slow-growth markets – indicate that middle-income households are the hardest hit by this ongoing crisis. But it is wrong to assume that the dramatic downturn is easing the housing-cost burden on middle income families either in the short-term or over the long-term. This report shows that these families remain unable to access affordable homes in their communities under current market conditions, and that policy solutions focused on this crisis will only be successful if they are implemented in tandem with a long-term strategy for keeping our communities affordable.

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