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30 THE GAP BETWEEN HOUSING NEEDS AND SUPPLY Achieving the vision of housing options that help families at all income levels to achieve their dream of homeownership requires bold innovation at all levels of government in the private and nonprofit sectors, according to a research report by the Urban Institute's Urban Next50. Urban Next50 is an initiative in partnership with the Citi Foundation that explores promising solutions to advance equity and upward mobility. For the research report, Urban Institute held a series of conversations with experts, advocates, practitioners, and policymakers in housing to understand the gaps that keep innovations from advancing in housing and the solutions to the "nation's most challenging housing problems." e report focused on four areas, which if "pursued effectively and at scale could correct the fundamental mismatch between housing needs and housing supply" being faced in the current market. ey included: » Producing more housing at a lower cost through modernized local zoning and land use regulations for builders and developers » Preserving affordable housing and protecting residents of revitalizing neighborhoods from displacement through partnerships between local housing officials and private-sector property owners, financial institutions, and community-based nonprofits » Expanding housing assistance through federal and state policymakers to ensure that people at the bottom of the income ladder can afford decent housing » Expanding opportunities for secure homeownership through new mortgage loan products and innovative processes that close the persistent gaps in homeownership and home equity for people of color However, the report pointed out that one of the key challenges to implementing these solutions was the "lack of reliable information with which to design and implement" them. Giving some examples, the report indicated that while local and state planners lacked reliable information about how zoning and land regulations differed across national jurisdictions, mayors, housing officials, private developers, or nonprofit organizations attempting to expand the housing supply were often "stymied by fierce 'not in my backyard' (NIMBY) opposition." Community-based organizations and local housing officials trying to preserve affordable housing urgently needed data and analytic tools to monitor the unsubsidized affordable housing stock; assess risks of loss so they could prioritize properties (and property owners); and design effective strategies for maintaining housing availability, quality, and affordability. YOUNG HOMEOWNERS LIVE WITH REGRET First, it took them more time to buy a home and now that they have a place to call their own, millennials suffer from homebuyers' remorse according to a Bankrate.com survey, which found that nearly two-thirds of millennial homeowners have regrets about their home purchase—most of it stemming from difficulties with maintaining the home they bought. Millennials also form the largest share of any generation who regret their home purchase. e survey, which was carried out between January 30 and February 1, covered 2,668 adults across age-groups. When looked across age-groups though, the survey found that overall 44 percent of homeowners had regrets about their home purchase while 56 percent were happy with their home. e most common factor that caused homeowners to regret their purchase was unexpected maintenance or hidden costs. While 18 percent of all respondents cited this as their key factors, a quarter of these respondents were millennial homeowners. "Repairs and maintenance costs are something all homeowners face. Consumers should expect to set aside 1 percent of their home's purchase price each year to keep in a savings account to cover these expenses," said Deborah Kearns, Analyst at Bankrate.com. "Budgeting early on can prevent dipping into emergency savings or going into debt to handle these added expenses." Some of the other factors that made homeowners suffer from buyers remorse included, buying a house that was too small (12 percent); buying a house that was in a bad area (8 percent); making a poor investment (7 percent); having a high monthly mortgage payment (7 percent); not getting the best mortgage rate (6 percent); and buying a house that was too big (6 percent). e survey also revealed that 79 percent of Americans believed that owning a home was "a hallmark of achieving the American Dream." However, income proved to be the biggest hindrance to achieving their goal of homeownership with 51 percent of survey respondents who didn't own a home citing this as the key reason for not having their own home yet. Forty-one percent of respondents who don't own a home also said that they didn't buy because they couldn't afford a down payment and closing costs related to buying a home.

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