What is the state of the nation’s housing?
The folks at Harvard have just released their latest housing study: SON (State of the Nation’s Housing) 2008. If you would rather check out a quick overview, check out their fact sheet.
In case you were wondering, yes, we have problems all across the country. Since this is a “current assessment” of the housing market, it can be viewed not as a media report but as scientific data. And yes, it’s discouraging.
Ready for some highlights lowlights? These all come directly from the fact sheet that you can read by clicking the link above.
- The months’ supply of unsold new single-family homes rose to more than 11 months in late 2007 and early 2008—a level previously not seen since the late 1970s—before dropping back slightly. The months’ supply of existing single-family homes for sale rocketed to 10.7 months by April 2008.
- By the end of 2007, the nation had 232,000 fewer construction jobs than a year earlier, dragging down employment growth in many states with previously booming housing markets such as Florida (74,000 construction jobs lost vs. 52,000 other jobs added) and Arizona (25,000 construction jobs lost vs. 23,000 other jobs added).
- The number of homes in foreclosure proceedings nearly doubled to almost one million by the end of 2007, while the number entering foreclosure topped 400,000 in the fourth quarter alone.
- In 2006, the number of severely-burdened households—paying more than half their income for housing— surged by almost four million to 17.7 million households.
I don’t think much more needs to be said about this study at this point. It is an interesting read, especially if you are having a great day and don’t like feeling so positive all the time.
