1. Wireless Access SSID: cwag2017
Password: cwag17

2. The State of Affordable Housing
Dave T. Garland
National Association of Realtors
Second Century Ventures
August 1, 2017

3. A Robust Real Estate Transaction Market (2016)
Home Sales
Median Home Price
YoY Price Growth
6.0m
$236,000
4.0%
Owner Occupied Transactions
Non-Owner Occupied Transactions
4.2m
1.8m
Avg. 30yr Mortgage Rate
Total Inventory
3.9%
1.7m

4. #1 Realtor® Challenge?

5. $13.4t 43.3m 136m 119m 75.7m $10.2t 17m Vacant (& 2nd homes) Equity
Rented (36%)
$13.4t
43.3m
Housing Units
136m
Households
119m
Owned (64%)
75.7m
Mortgage Debt Outstanding
$10.2t

6. 18% 5-yr Rent Growth
12% 5-yr Wage Growth
V S

7. $535k 2012 Bay Area Median Home Price
V S
$1.07m 2017 Bay Area Median Home Price

8. $535k 2012 Bay Area Median Home Price
V S
$1.07m 2017 Bay Area Median Home Price

9. Financial Instruments Development Subsidies Tax Credits Zoning
CURRENT SOLUTIONS: Inclusionary Housing
Loan Subsidies
Financial Instruments
Development Subsidies
Tax Credits
Zoning
Housing Trusts
AFFORDABILITY ISSUES: Supply Constraints Low Inventory Rent Increases Down Payment Construction Costs Area Demand Local Requirements

11. NAR Housing Affordability Index (HAI)
Measuring whether or not a typical family could qualify for a mortgage loan on a typical home

12. Realtors® Affordability Distribution Curve & Score
The measure which is intended to represent affordability for all different income percentiles in a single measure

13. How can we better understand market inefficiencies?

15. Sources & Continued Research

16. Wireless Access SSID: cwag2017
Password: cwag17