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COST OF RENTING, OWNING UNAFFORDABLE FOR MANY U.S. WORKERS With home prices recovering faster than income growth, many workers across the country are finding hard work is not enough to pay the bills, according to the 2013 Paycheck to Paycheck report from the Center for Housing Policy (CHP). The report examined housing costs related to renting and owning for workers in five different occupations across 207 metropolitan areas. The occupations considered were housekeepers, wait staff, auto mechanics, front desk managers, and flight attendants. After exploring housing affordability for mid-career professionals in those areas, the report found only flight attendants could afford rent for a two-bedroom unit at fair market value in all 207 metros. On the other hand, housekeepers and wait staff could not afford a two-bedroom unit in any of the 207 metros. For auto mechanics, a twobedroom apartment at fair market value was too expensive in 36 metro areas, and for front desk managers, 34 metro areas were unaffordable. To own a median-priced home in the metros studied, CHP found that housekeepers and wait staff can afford to own in just 8 and 10 metro areas, respectively. While flight attendants can rent in all 207 metro areas, they can afford to own in 182 markets. According to the report, popular destinations such as Los Angeles, Seattle, Boston, San Francisco, and New York were generally ruled out for even relatively highearning flight attendants. Auto mechanics can buy a median-priced home in 127 metro areas, and front desk managers can achieve homeownership in 133 metros. "One of the most overlooked aspects of this recovery is that for many workers, incomes are not rebounding in step with local housing markets," said Maya Brennan, CHP senior research associate and co-author of the report. "Even in a strong sector like travel and tourism, wages have not kept pace with the rising costs of renting or homeownership." "There is a fundamental tension between a housing recovery and housing affordability," added Lisa Sturtevant, CHP director. "The solutions are higher wages or greater access to affordable housing." FHFA LAUNCHES CAMPAIGN FOR HARP AWARENESS The Federal Housing Finance Agency (FHFA) announced a new program in late September that will seek to educate homeowners on potential refinancing options under the Home Affordable Refinance Program (HARP). The program aims to inform underwater homeowners of expanded HARP eligibility requirements and encourage homeowners to discuss refinancing options with their lenders. "To date, more than 2.8 million homeowners have refinanced through HARP," said FHFA Acting Director Edward DeMarco. "With the launch of this campaign we look forward to reaching those homeowners who may not know about the program or understand the eligibility criteria to take advantage of today's low interest rates by refinancing through HARP." In order to publicize the program, FHFA has recruited HGTV personality Mike Aubrey to help promote HARP. "HARP is an absolute no-brainer for eligible homeowners. 48 The program allows underwater homeowners the option to refinance at a lower rate and in my book that's a great deal," Aubrey said. "I spend my time on TV and as a Realtor trying to get great deals for my clients. FHFA has already done the legwork to create an amazing deal. It's as simple as finding out if you qualify, getting the refinancing done, and watching the savings add up." To be eligible for HARP, the homeowner must meet the following criteria: » Loan must be owned by Fannie Mae or Freddie Mac. » Mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009. » Current loan-to-value ratio must be greater than 80 percent. » Borrower must be current on their mortgage payments with no late payments in the last six months and no more than one late payment in the last 12 months. In the first quarter of 2013, San Francisco ranked as the most expensive city for renters. In order to afford a one- bedroom apartment at fair market value, one would need an annual income of $56,920. Honolulu came in second, where income required for a one-bedroom was $55,680. Other metros in the top five included Santa Ana, California ($51,760); Suffolk-Nassau, New York ($51,400); and San Jose, California ($50,480). Some of the most unaffordable cities to rent were also the most expensive for homeownership. San Francisco ranked No. 1 as the priciest metro for owning a home, where minimum annual income would need to be $179,097 to afford a median-priced home. San Jose followed, with an income requirement of $145,931. Rounding out the top five were Santa Ana ($131,868), New York ($119,133), and Honolulu ($115,949). On the other end of the spectrum, South Bend, Indiana, was found to be the most affordable metro area, followed by three markets in Ohio—Lima, Mansfield, and Springfield. With a median home value of $75,000, Detroit also made the top five for housing affordability in the first quarter. STUDY FINDS 8.3M HOMEOWNERS ON VERGE OF POSITIVE EQUITY Home prices have rebounded so rapidly that RealtyTrac is reporting 8.3 million borrowers who've been underwater are on track to have enough equity to sell their home within the next 15 months—without resorting to a short sale. Metro markets that boast the highest percentage of homes with resurfacing equity include Omaha, Nebraska; Colorado Springs, Colorado; Tulsa, Oklahoma; Little Rock, Arkansas; and Raleigh, North Carolina. In a study released recently, RealtyTrac also revealed that nationwide, more than 126,000 properties in the foreclosure process are actually in good equity standing— meaning they have a loan-to-value (LTV) ratio of 100 percent or lower. That figure represents 24 percent of all homes currently in foreclosure. States with the highest percentage of positive-equity foreclosures include Oklahoma and Hawaii—both with more than half of their foreclosures above—water (57 percent and 53 percent, respectively), followed by New York (47 percent) and Texas (46 percent).

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