Pacific Union Economist, Selma Hepp, recently attended the “Housing Renaissance” conference in San Diego:
- Millennials are increasingly active buyers and now represent about 50 percent of first-time buyers in the U.S. California’s affordability constraints hold back the first-time buyer share at 30 percent.
- Minorities will also emerge as a hypergrowing demographic of homebuyers in the U.S. By 2020, minorities will account for all growth in homeownership.
- Mortgage creditors will need to consider the changing face of homebuyers and accommodate their needs and cultural differences.
- In San Francisco, the share of income spent on rent is 46 percent, up from 31 percent historically. The share of income spent on mortgage payments is 41 percent, up from 39 percent historically.
- Affordability constraints are especially challenging for the bottom two-thirds of income levels, where a lack of supply is particularly problematic.
- Income inequality has been increasing dramatically over time. The share of middle-income households nationally decreased from 65 percent in the 1970s to 40 percent today.