Wednesday, December 12, 2012

GSE Reform Could Have Dire Unintended Consequences for Renters via MortgageNewsDaily.com

Rental housing is a growing crisis according to the Center for American Progress, but policymakers have made it "an afterthought in the debate over the future of mortgage giants Fannie Mae and Freddie Mac." David M. Abromowitz, a Senior Fellow at the Center, said that the U.S. housing market appears on the road to recovery but any mention of a broad "housing recovery" ignores the far less rosy future of roughly a third of the U.S. population, the 100 million people who rent.

Renters face a long-term and growing affordability crisis. The demand for rental housing has skyrocketed and production has failed to keep up. As a result rents have climbed 4 percent this year while middle class wages have stalled and now one of every four renters spends more than half their monthly income on housing. Rents are projected to increase by at least another 4.6 percent next year and 4 percent in both 2014 and 2015.

Read more...GSE Reform Could Have Dire Unintended Consequences for Renters

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