News – Habitat Abstract

NYS Legislature Reaches Housing Deal

April 29, 2024
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The New York State Legislature has reached a compromise on a new housing bill that would, among other things, reform eviction standards and increase tax breaks for landlords. Most notably, this would include a version of a “good cause eviction” standard that would make it harder for landlords to remove tenants, as well as a new version of the 421a property tax break. Neither landlords or tenant advocacy groups were happy with the compromise, but there are enough concessions to both that it seems reasonably likely to pass.

Analysis Shows America Has 550 “High Value” Cities

April 29, 2024
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An analysis by Zillow has found that there are now 550 cities that they consider to be “high value,” meaning that the typical home costs $1 million or more. This is an increase of 59 cities over the previous year, and 28 cities higher than the previous high set in 2022. This effect is said to be the byproduct of low housing supply and high interest rates, which has helped to keep prices artificially high.

Flattening Mortgage Demand Results From Lack of Affordable Housing

Despite the fact that mortgage interest rates have been falling, mortgage demand has flattened out, a sign of serious affordability issues in the market. These issues were reflected in both the stagnating demand for new mortgages, as well as a slight decline in refinancing applications. These issues stem from high home prices relative to the average household income, which has fallen behind in the past few years.

Sinking Land Increases Climate Change Risk to Coastal Properties

March 19, 2024
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Studies of coastal properties around the world have found that the land there is sinking, which may be dramatically increasing the risks to these properties from climate change. This is due in part, ironically, to measures intended to deal with problems caused by other aspects of climate change. As a result, developers and homeowners will need to work more quickly and think more carefully about mitigating the risks that flooding and other climate factors may pose to their properties.

Commercial Real Estate Lenders Face Financial Woes

March 19, 2024
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Banks that have significant amounts of commercial real estate debt on their books are facing difficult financial times ahead, as they face significant risks of widespread default on many of their loans. This is due to problems with commercial borrowers struggling to pay off their commercial mortgages, which are structured in a way that makes the impact of their default much more serious. And unfortunately, these problems will likely continue to affect the market for at least another year or so as more commercial mortgages come due.

Affordability Issues Plague Prospective Homeowners

People who may be interested in purchasing a home are struggling to do so, as they find themselves confronting affordability issues that prevent them from even getting their foot in the door. The combination of a high cost of living plus stagnant wages have meant that many people cannot keep up with high home prices, preventing them from even being able to put a down payment on a home. This is having a depressive effect on the real estate market that is unlikely to stop until wages go up or prices come down.