Latest news with #affordability
New York Times
6 hours ago
- Business
- New York Times
Free Buses and Child Care. A Rent Freeze. Can Mamdani Achieve His Plans?
Zohran Mamdani's rapid rise from upstart mayoral hopeful to likely winner of the Democratic primary for mayor of New York City was propelled by the simple message that the city was too expensive — and that he had plans that would fix it. Mr. Mamdani's singular focus on the city's affordability crisis resonated, especially with young voters. They embraced his populist promises to make bus service free, freeze rents on stabilized apartments, build city-owned grocery stores and offer free early child care. But whether his campaign promises can become reality is an open question — and important parts of Mr. Mamdani's platform are not solely in a mayor's control. While some of his left-leaning policy ideas are not entirely new — rents have been frozen before, for example — others would represent a dramatic reimagining of city government. And much of Mr. Mamdani's agenda relies in large measure on increasing revenue through taxes on businesses and the wealthy — part of an overarching vision to rethink how the city funds expanded social programs. Along with raising income taxes, he has pledged to shift the property tax burden 'from the outer boroughs to more expensive homes in richer and whiter neighborhoods,' according to his campaign website. Already, Mr. Mamdani's plans, in line with his democratic socialist political affiliation, have prompted intense backlash from business leaders who say he poses a danger to New York's economy. In private meetings, power brokers are discussing how to mount a strong challenge to Mr. Mamdani in the November general election. Want all of The Times? Subscribe.
CBS News
12 hours ago
- Business
- CBS News
Berkeley City Council approves zoning change to encourage "middle housing"
In a unanimous vote Thursday night, the Berkeley City Council approved a zoning change designed to make it easier to build small apartment buildings across much of the city—part of a broader effort to address the region's ongoing housing affordability crisis. Dubbed the Middle Housing Ordinance, the new policy streamlines the permitting process for residential buildings such as duplexes, triplexes, and three-story multi-family homes. City officials and housing advocates said the change could increase housing options for middle-income residents who have been increasingly priced out of the market. "These types of units will get a streamlined, 'by-right' approval," said District 1 Councilmember Rashi Kesarwani, who championed the policy. "So if [a project meets] the development standards, they don't go above three stories, and they have setbacks and open space, they can get approved over the counter." The new zoning rules, however, will not apply to the Berkeley Hills, where fire-risk concerns have limited development. Supporters of the ordinance argued that increasing housing supply is essential for reducing costs and giving younger and middle-class residents a foothold in the city's expensive real estate market. "I could not afford one of these houses," said Andrea Horbinski, a renter in the Berkeley Hills with a Ph.D. "And I don't think that is going to change. So hopefully, [developers will] build different housing, new housing, smaller size that I could afford." Horbinski was one of the residents who spoke in favor of the ordinance at the council meeting. "The more the merrier," she said. "The more housing there is, the more prices will come down, the more things will be more affordable for more people." Berkeley's real estate market remains one of the priciest in the region. According to the Bay East Association of Realtors, of the 66 single-family homes sold last month in Berkeley, the median price was $1,812,500. "With what we're projecting, in terms of 50 to 100 homes per year, that's an incremental change," Kesarwani said. "So it'll give us the opportunity to adapt and adjust." Still, not everyone is on board. Some residents fear the zoning change could alter the character of Berkeley's neighborhoods and put added strain on infrastructure. "Why Berkeley, which is already so densely populated and already so hard to get around in?" asked longtime resident Clifford Fred. "It just doesn't make any sense to me." Fred said he's concerned about traffic congestion and limited parking. "Older people who don't have driveways, people need their parking spaces," he said. "I don't think it's selfish for people to have parking spaces near their home." Opponents also criticized the ordinance for not including specific requirements for affordable housing units. But supporters like Horbinski remain hopeful that smaller, lower-cost units will eventually make ownership more attainable. "I think eventually I'll be able to get to a place where I could have a condo or a unit in one of these sort of missing-middle type places," she said. The zoning change is expected to take effect in November. Berkeley follows in the footsteps of Sacramento, which passed a similar measure last year. Santa Rosa is reportedly considering a comparable proposal.
CBC
15 hours ago
- Business
- CBC
Metro Vancouver's condo market is slumping. Here are 4 key factors behind the slowdown
4 factors behind B.C.'s depressed condo market 17 hours ago Duration 2:58 Social Sharing After years of soaring prices and new builds, Metro Vancouver's condo market is showing signs of strain with projects stalling, sales declining, and developers hitting pause. Industry experts say it's the result of a "perfect storm" of four major forces converging: high interest rates and softening rental income, reduced foreign capital and lower immigration — all of which have created a challenging environment for both buyers and builders. "[We] are at a breaking point, the industry is doing terribly," said Anne McMullin, CEO of the Urban Development Institute. "It's not just that the industry is struggling; it's our inability to deliver homes that people can afford." Rising interest rates, declining rent Increase in borrowing costs has reduced affordability for buyers and made it more expensive for developers to finance new builds, says McMullin. Just five years ago, mortgage rates were near historic lows, making it relatively affordable for buyers to borrow large sums and invest in real estate. But those rates have climbed significantly, pushing up monthly mortgage payments. WATCH | Some real estate advisors question Surrey's decision to convert condos to rental units: Some real estate advisers question Surrey's decision to convert condos to rental units 3 days ago Duration 1:36 Surrey city council has approved changes to development applications for converting hundreds of condo units into rental units. As Pinki Wong reports, some real estate advisers think the shift will mean fewer homes for younger generations to purchase down the road. The result is higher "carrying costs" — the total expense of owning a condo, including mortgage payments, property taxes and maintenance fees. The City of Vancouver's 2025 budget includes a 3.9 per cent property tax increase and an 18.2 per cent hike in utility fees, together adding hundreds of dollars to annual expenses. "It costs more to build a unit or a home than the average person in the Lower Mainland can afford," said McMullin. "When it's costing more to build … we see project cancellations and we start to see projects not going ahead." At the same time, condo and rental price growth has stagnated, which means homeowners can no longer count on steady price growth to absorb the costs. According to the latest housing market update from the B.C. Real Estate Association, residential prices in the province in May 2025 were down 4.2 per cent at $959,058 compared to the same time last year, while residential sales were down 13.5 per cent. In Vancouver, average asking rents for a two-bedroom fell from $3,440 in 2024 to $3,170 in 2025, according to the latest figures from Statistics Canada. Though economists expect rates to begin to decline slightly in the second half of the year, persistent inflation risks and ongoing U.S. trade tensions could keep borrowing costs elevated for now. Decline in foreign capital and immigration levels A second factor cooling B.C.'s condo market is the decline in foreign investment, largely due to the federal ban on non-residents purchasing residential property in Canada. Initially enacted in January 2023 under the Prohibition on the Purchase of Residential Property by Non-Canadians Act, the ban was recently extended by two more years and is now set to expire on Jan. 1, 2027. It prohibits foreign commercial enterprises and non-resident individuals from buying homes anywhere in Canada. The federal government says foreign ownership has fuelled worries about Canadians being priced out of housing markets in cities and towns across the country. But for developers, the measure has made it harder to access the capital needed to get projects off the ground. "While the intention is understandable, the current broad-brush form of the ban also limits access to foreign capital that could help builders meet presale thresholds and finance new construction," the Homebuilders Association Vancouver said in a statement. The association has called for a more flexible approach to the policy. The group suggests Canada could look to Australia's model, which allows foreign buyers to invest in new builds under specific conditions, such as requiring the units to be rented out or limiting resale timelines. Another drag on demand is a recent slowdown in population growth. WATCH | Metro Vancouver housing market looking good for buyers: analyst: Metro Vancouver housing market looking good for buyers: analyst 19 days ago Duration 7:46 A recent advertisement from a Surrey real estate agent which touted a 25 per cent discount on a housing unit highlights how buyers have an advantage in the current Metro Vancouver housing market. Mark Ting, a partner with Foundation Wealth and On The Coast's personal finance columnist, says that the trend of housing prices going down may be sustained. As of spring 2025, B.C.'s population stood at approximately 5.7 million. But the province recorded a net population decline, with 2,357 fewer residents compared to the previous quarter. The drop comes amid changes in federal immigration policy. Under its 2025–2027 Immigration Levels Plan, the federal government has introduced targets not only for permanent residents but also for temporary residents, which include international students and foreign workers. The plan aims to reduce temporary resident volumes to no more than five per cent of Canada's total population by the end of 2026. The Canadian Mortgage and Housing Corporation says the condo slowdown is likely to persist this year as supply increases outpace demand.
Yahoo
19 hours ago
- Business
- Yahoo
One of the best cities for renters to live is in Washington, report finds
Three cities in the Pacific Northwest have been named among the best places to rent in the western United States in 2025. The apartment-search website RentCafe published its annual "Best Cities for Renters to Live" report on June 26, finding Seattle, Portland, and Boise are among the top cities for renters in the West. The report looked at communities where affordability intersected with a "strong sense of community" and good job prospects. Researchers took 150 cities across the nation and ranked them based on 20 indicators, including "apartment quality, economic strength, traffic, air quality and access to natural amenities," according to the report. Overall, McKinney, Texas, was ranked as the best city for renters in the country due to its mix of affordability, quality of life, and consistent job growth, according to RentCafe. But the report also ranked the top 10 cities by region. Here's more on the report and what to know about the best places for renters in the nation and the West. According to RentCafe, the 10 best cities for renters to live in the western U.S. in 2025 are: Gilbert, Arizona Boise, Idaho Scottsdale, Arizona Denver, Colorado Colorado Springs, Colorado Salt Lake City, Utah Reno, Nevada Westminster, Colorado Seattle, Washington Portland, Oregon While Seattle ranked ninth in the West, its overall rank fared a bit worse in RentCafe's 2025 report. The Emerald City ranked 73rd in the nation. Analysts found that while Seattle, with a population of about 781,000 residents, enjoys a strong local economy (ranked 16th in the U.S.) and quality of life (12th), its housing and cost of living scores are among the lowest in the report, ranking 139th out of 150. Seattle has consistently ranked among the most expensive places to live in the country, according to media reports. The Seattle Times reported that, in 2023, consumer prices in the Seattle metro area were nearly 13% higher than the national average, according to data from the Bureau of Economic Analysis. Housing costs were about 50% higher than the national average, the paper reported. However, some households can live comfortably in the city despite its high cost of living. A January 2025 report from the travel website Upgraded Points found that Seattle ranked third in the U.S. for cities where "middle-class families enjoy the most financial breathing room." This is due to wages exceeding the area's "elevated living costs." According to U.S. Census data, the median household income in Seattle in 2023 dollars was $121,984. The median gross rent was $1,998, according to the data. According to RentCafe, the five best places for renters to live in the United States in 2025 are: McKinney, Texas Sarasota, Florida Atlanta, Georgia Austin, Texas Huntsville, Alabama Anaheim, in Southern California, ranked last in RentCafe's report of the best places for renters to live in the nation. Home to a Disneyland theme park and the Los Angeles Angels baseball team, Anaheim scored near the bottom of the list for housing and cost of living (144th), local economy (122nd), and quality of life (117th), according to the report. This article originally appeared on Kitsap Sun: Best places for renters in 2025? Washington has a top city in the West
Yahoo
a day ago
- Business
- Yahoo
Mortgage rates fall for 4th straight week, lowest since early May
Mortgage rates fell for the fourth consecutive week to the lowest level since early May, mortgage buyer Freddie Mac said Thursday. Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed that the average rate on the benchmark 30-year fixed mortgage fell to 6.77% from last week's reading of 6.81%. The average rate on a 30-year loan was 6.86% a year ago. Housing Crisis Deepens As 47 Major Metro Areas Now Require Homebuyers To Spend More Than 30% Of Income "Borrowers should find comfort in the stability of mortgage rates, which have only fluctuated within a narrow 15-basis point range since mid-April," said Sam Khater, Freddie Mac's chief economist. "Although recent data show that home sales remain low, the resulting available inventory provides homebuyers with a wider range of options to consider when entering the market." These States Were The Housing Market Mvps, According To Read On The Fox Business App The average rate on the 15-year fixed mortgage fell to 5.89% from last week's reading of 5.96%. One year ago, the rate on the 15-year fixed note averaged 6.16%. The lower rates, while welcome news, come as a new report said affordability in just three of America's 50 top metro areas is such that households that make the median income can scoop up a home that will not go above 30% of their yearly earnings. said it determined the three major metro areas where the 30% rule – one in which potential homebuyers limit their mortgage payment to 30% of their monthly income – remains feasible by "using a standard 20% down payment and May's average mortgage rate of 6.82%." It also factored in tax and insurance. Those metro areas were Pittsburgh, Pennsylvania; Detroit-Warren-Dearborn, Michigan; and St. Louis, Missouri, the real estate marketplace said. Median annual household incomes in those cities were $72,935, $72,493 and $79,869, respectively, according to the report. Nationwide, found roughly 44.6% of income would be necessary for a household to be capable of financially handling a "median-priced" home. "Earnings have risen, but homebuying costs have risen faster, which means that adhering to affordability guidelines can feel challenging if not impossible in many housing markets across the country," said chief economist Danielle article source: Mortgage rates fall for 4th straight week, lowest since early May Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
