As the United States shakes off the last vestiges of a recession that has affected every area of the country, and the Federal Reserve has hiked its key interest rate for the first time in many years, everyone is watching to see what’s going to happen with the job market.
A more pertinent question would be: What’s going to happen with the current housing market?
Right now, in cities across America, the middle class is quickly being priced out of homes. A recent article in Yahoo! Finance reports that “from 2010 to 2013, home prices were 56 percent higher than construction costs, an increase from the 1990s when home prices were 33 percent higher than construction costs . . . .” Unfortunately, cities on both the East and West coasts are seeing average home prices close to, or even topping, one million dollars—far out of the reach of most city dwellers.
City planning commissions are also choosing not to build high-density (and more affordable) construction by choosing not to change zoning laws that would allow it. Decisions like these are preventing middle- and low-income groups from owning a home.
Middle- and Low-Income Lending Problems
Since the housing crisis started in 2008, and lending regulations were tightened, middle- and low-income would-be homeowners found that they could no longer use private lenders to obtain a mortgage. Instead, in many cases, they were forced to rent homes at a much higher rental cost than would have had just five years ago. Instead of becoming homeowners, many had to continue to rent. Then, as rents increased around the country, people were being priced out of certain cities where just 10 years before, they could have easily met their mortgage payments.
Opportunities in the Current Housing Market
Even as certain areas of the country are pricing hopeful homeowners out of the market, affordable housing options near large and small city areas remain. Manufactured home communities are located in every state, and they offer:
UMH properties owns 98 manufactured home communities in seven states throughout seven states in the United States. Our affordable homes allow you to live where you want. Call or contact us today to learn more about our modern, spacious homes.