DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.
Issue link: http://digital.dsnews.com/i/1536040
MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 76 June 2025 J O U R N A L In April, the popular Miami metro was the rental market with the lowest prices. The estimated maximum feasible rent for a household with the median income was 1.3 times lower than the me- dian rent for a typical Miami apartment with 0–2 bedrooms. Major coastal and Southern California metropolises, such as New York, Los Angeles, Boston, and San Diego, followed. Even though it is the most expensive, all five of these met- ros' rent-to-income ratios have decreased from the same period last year, indicat- ing a little improvement in affordability across these pricey regions. Although rents in April were $293 (20.8%) higher than they were prior to the pandemic in 2019, this increase is consistent with the rise in consumer prices over the same six-year period. Compared to the 54% increase in the median price-per-square-foot of for-sale property listings during the same period, this rent increase is much smaller. One of the main recent drivers of a rising price level should be lessened in the months to come as a result of the relative stability of rents. The median asking rent in the 50 ma- jor metropolitan areas was $1,699, which was $60 less than the peak set in August 2022 and a $5 increase from the previous month. It was down $29 or 1.7% from the previous year. April saw a seasonal uptick in rent prices, which is typical of the spring and summer months. The pace of rental rises is being slowed by a continuous infusion of new multifamily apartments, which is reliev- ing pressure on prices. In Q1 of this year, the national rental vacancy rate rose to 7.1%, the highest level since the third quarter of 2018. This spring's rental mar- ket is more favorable due to the increased vacancy rate. AFFORDABILITY GAP WEIGHS ON U.S. CONSUMERS T he National Association of Realtors (NAR) and Realtor. com 2025 Housing Affordability & Supply report shows that the nation's housing affordability gap still exists, with households making $75,000 annually only able to afford 21.2% of home listings as of March 2025, up slightly from 20.8% the year before and the largest gain of any income group. The paper examines the present U.S. housing market's scarcity of reasonably priced homes for a range of income levels. By analyzing what homebuyers at different income levels can afford based on normal loan criteria, it offers a real-time, income-specific snapshot of housing affordability. Although this growth represents progress, the nationwide inventory of for- sale homes rose by about 20% in March 2025 compared to the same month the previous year. "The housing market is at a turning point," said Nadia Evangelou, NAR Senior Economist and Director of Real Estate Research. "More homes are hitting the market, and it's encouraging to see the greatest housing-supply gains among middle-income home buyers." Breaking Down the In's & Out's Although the accessibility of home listings improved slightly for households making $75,000 annually between March 2025 (21.2%) and March 2024 (20.8%), the biggest increase of any income group, they still have less than half of the affordable home accessibility that they had prior to the pandemic, when nearly 49% of listings were accessible. These homebuyers would require access to 48.1% of listings in a balanced housing market when listings are in line with what households at different in- come levels can afford. The market requires around 416,000 more listings priced at or below $255,000 in order to hit that level. Only 8.7% of homes listed today are within the reach of a household making $50,000 per year, compared to 9.4% a year ago. In a balanced housing market, one in three listings should be within the means of these low-income households, which make up one in three households. A maximum price of $170,000 and roughly 367,000 postings are essential for balance. Higher-income households, on the oth- er hand, have almost complete access to the housing market. At least 80% of the homes listed are within the reach of homebuyers with incomes of $250,000 or more. Rental Markets With the Most Improved Affordability (0-2 Bedrooms)–April 2025 Rank Metros April 2025 Median Rent April 2025 Rent Share of Income April 2024 Rent Share of Income Percentage Point Changes (April 2025 vs. 2024) 1 San Diego-Chula Vista-Carlsbad, CA $2,669 31.1 % 35.0 % -3.9 ppt 2 Denver-Aurora-Cen- tennial, CO $1,771 19.9 % 23.2 % -3.3 ppt 3 Jacksonville, FL $1,512 22.2 % 25.3 % -3.1 ppt 4 Miami-Fort Lau- derdale-West Palm Beach, FL $2,345 37.9 % 41.0 % -3.1 ppt 5 Birmingham, AL $1,173 19.6 % 22.2 % -2.6 ppt 6 Phoenix-Mesa-Chan- dler, AZ $1,495 20.5 % 22.8 % -2.3 ppt