Building Home Equity

Updating a study they first performed in the spring, the Center for Economic and Policy Research and the National Low Income Housing Coalition released a follow-up 17-page report in late October on The Changing Prospects for Building Home Equity. Subtitled An Updated Analysis of Rents and the Price of Housing in 100 Metropolitan Areas, the report examines the deflation of the “housing bubble”, and attempts to project “the potential for new home buyers purchasing today to acquire equity in the near future.” In truth, the report should be of interest to renters, homeowners and policymakers as well as prospective homebuyers.

In 64 of the 100 metropolitan areas they examined, a home buyer’s prospects for building equity declined, but the authors conclude that “while many communities have yet to hit bottom and significant price declines must still be reckoned with in many areas, recent price declines mean that many communities are moving back toward the historical track of modest equity increases for home buyers.”

Even more significant for residents of the Wichita metropolitan area is the report’s continued assessment of the region as a “non-bubble” market, and their projection that the area is already in position to experience those modest equity increases over the next four years.

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Published in: on December 14, 2008 at 9:16 pm  Leave a Comment