October, 28 2008, 03:07pm EDT
For Immediate Release
Contact:
Alan Barber, 202-293-5380 x115 (CEPR);
Taylor Materio, 202-662-1530 x227 (NLIHC)
Comparison of Ownership vs. Rental Costs Points to Negative Equity Accruals in Many Markets Over the Next 4 Years
Policy makers should exercise extreme caution intervening in housing market as prices continue to fall to trend levels
WASHINGTON
As the housing market meltdown continues
unabated, a report released today by the Center for Economic and Policy
Research (CEPR) and the National Low Income Housing Coalition (NLIHC) shows that in many bubble-inflated markets, homeownership remains a costly and risky proposition.
The study, "The Changing Prospects for Building Home Equity: An Updated Analysis of Rents and the Price of Housing in 100 Metropolitan Areas,"
evaluates the median house price and fair market rent, as determined by
HUD, for the 100 largest metropolitan areas. The study extends and
updates the methodology from two earlier studies, "Ownership, Rental Costs and the Prospects of Building Home Equity: A Comparison of 100 Metropolitan Areas," and "The Cost of Maintaining Home Ownership in the Current Crisis: Comparisons in 20 Cities," to the 100 largest metropolitan areas in the U.S.
The new analysis
shows the wide diversity in housing markets across the country. While
many metropolitan housing markets continue to be subject to real estate
bubbles, prices are not out of line with rents in large parts of the
country. The findings of the report again show the importance of not
relying on a one-size-fits-all solution to the current housing crisis.
The report also notes the problems that many homeowners are likely to
face finding quality rental housing due to its limited availability.
"Despite the extreme downward pressure in homeownership and labor
markets, rental vacancy rates remain stable and rents continue to inch
up" said Danilo Pelletiere, NLIHC Research Director and a co-author of
the report. "There was a critical need for affordable rental housing
before the foreclosure crisis and the problem is only getting worse.
Creating affordable rental housing in the face of foreclosure is
important to keep people in their communities and stabilize housing
markets."
According to the report, which analyzed data from the Census Bureau's American Community Survey
(ACS), the most inflated markets currently see monthly homeownership
costs outpacing rental costs by as much as 300 percent. This creates a
substantial and unnecessary drain on household income, especially for
middle- and lower-income families.
"This could mean that families may have to forgo health insurance or
quality child care as they struggle to make their mortgage payments, "
said Dean Baker, Co-Director of CEPR and an author of the study.
"Furthermore, since prices are still falling in these markets, many
homeowners won't ever accrue any equity."
The study projects that even though prospects for equity accrual have
improved slightly in bubble markets, most homeowners will still leave
their homes with large amounts of negative equity if house prices
return to trend levels. For example, it projects that by the year 2012,
homeowners in New York will have $101,964 of negative equity and in Los
Angeles the shortfall would be $168,069. In these, and other bubble
markets, households would benefit from proposals that attempt to
provide affordable rental options as part of policy solutions.
For cities where the costs of owning are much closer to rental costs,
it is likely that a small amount of equity will be accrued. In these
markets, policies that keep owners in their homes, possibly through
some form of government-guaranteed mortgage, are preferable.
The Center for Economic and Policy Research (CEPR) was established in 1999 to promote democratic debate on the most important economic and social issues that affect people's lives. In order for citizens to effectively exercise their voices in a democracy, they should be informed about the problems and choices that they face. CEPR is committed to presenting issues in an accurate and understandable manner, so that the public is better prepared to choose among the various policy options.
(202) 293-5380LATEST NEWS
White House Needs a Strategy for Combating Islamophobia, Say Rights Groups
"Any genuine attempt to combat Islamophobia must start with the government acknowledging the harm it continues to inflict both domestically and internationally, and offering adequate redress to affected communities at home and globally."
May 08, 2024
Nearly 100 organizations joined Muslims for Just Futures on Tuesday in calling on U.S. President Joe Biden to introduce a White House Islamophobia Strategy that centers government accountability and solidarity with Muslim and Arab American communities, demanding that the Biden administration honor the "lived experiences" of people who have faced Islamophobic attacks that have ramped up since Hamas attacked southern Israel last October.
The coalition's 26-page community memorandum, dated April 2024, was publicly released on Tuesday, the same day Biden spoke about fighting antisemitism in a speech marking the U.S. Holocaust Memorial Museum's Days of Remembrance.
Biden's conflation of antisemitism with protesters' and voters' demands to end U.S. support for Israel in order to save the lives of Palestinians in Gaza, said the community memorandum, has had "profound negative effects" on Muslim and Arab Americans.
The coalition said that organizations involved in drafting the memorandum—including Afghans for a Better Tomorrow, American Muslim Bar Association, and the Center for Constitutional Rights—"emphasized the direct role of the White House in perpetuating Islamophobia, anti-Palestinian racism, and anti-Arab racism through its ongoing support for the genocide and occupation in Palestine," among other military campaigns.
"Any genuine attempt to combat Islamophobia must start with the government acknowledging the harm it continues to inflict both domestically and internationally, and offering adequate redress to affected communities at home and globally," reads the memorandum.
The document includes a number of recommendations for agencies across the federal government, including a call for all agencies to vet potential employees "for affiliation with white nationalist or white supremacist" groups.
In the first weeks of Israel's bombardment of Gaza last fall, one high-profile alleged Islamophobic attack was perpetrated by a former State Department official who had served in the Obama administration and was filmed harassing a food cart vendor in New York.
The document makes other recommendations including:
- Biden to call for an immediate and permanent cease-fire in Gaza and end U.S. support for Israel's bombardment of the enclave;
- The closure of the Guantánamo Bay detention center;
- The U.S. intelligence community to "stop weaponizing Section 702 of the Foreign Intelligence Surveillance Act against Black, Arab, Muslim, Middle Eastern, and South Asian (BAMEMSA) communities by surveilling citizens and non-citizens and collecting communications without a warrant;
- The Department of Justice Civil Rights Division to consult with Black, Muslim, Arab, Palestinian, and South Asian communities about their needs and concerns, amid a surge in Islamophobic attacks that was recorded by the Council on American-Islamic Relations last year;
- The Federal Bureau of Investigation to end its use of "secret and discriminatory watchlists," which includes 1.5 million people in 2019—95% of whom had Muslim names; and
- The government to ensure that universities and schools end the targeting of "Muslim, Arab, Palestinian, and allied students supporting Palestine," who have been "discriminated against by their universities, and physically attacked, doxxed, and intimidated in efforts to silence their advocacy for Palestinian rights and opposition to Israel's genocide."
The memorandum was released as a research scholar at Arizona State University, Jonathan Yudelman, was reported to be on leave after cellphone video last weekend captured him intimidating and yelling at a women wearing a hijab.
Other Islamophobic attacks in recent months have included the stabbing of a young Palestinian American man in Austin, Texas and the shooting of three Palestinian students in Burlington, Vermont.
"By embracing a framework that honors lived experiences and acknowledges the diverse impacts within Muslim and related communities, we can begin the urgent task of dismantling systemic barriers that harm Muslim communities and those racially perceived as such," said Muslims for Just Futures. "Additionally, the government must take decisive action to dismantle policies that perpetuate Islamophobia while actively involving affected communities in decision-making processes."
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Biden Hold on Bomb Delivery 'Must Be a First Step' to Ending US Complicity, Says Sanders
"The U.S. must now use ALL its leverage to demand an immediate cease-fire, the end of the attacks on Rafah, and the immediate delivery of massive amounts of humanitarian aid to people living in desperation."
May 08, 2024
U.S. Sen. Bernie Sanders said Wednesday that the Biden administration must go much further than merely delaying shipments of two types of Boeing-made bombs to Israel, whose long-feared ground assault on the overcrowded Gaza city of Rafah is currently underway.
Sanders (I-Vt.) said U.S. President Joe Biden was "absolutely right" to halt the delivery of thousands of bombs to "this extreme, right-wing Israeli government" as it inflicts an "unprecedented humanitarian disaster" on Gaza's population.
"But this must be a first step," said the Vermont senator. "The U.S. must now use ALL its leverage to demand an immediate cease-fire, the end of the attacks on Rafah, and the immediate delivery of massive amounts of humanitarian aid to people living in desperation. Our leverage is clear."
President Biden is right to halt bomb deliveries to this extreme Israeli government.
But this must be a first step. The U.S. must now use ALL its leverage to demand a ceasefire, stop attacks on Rafah, and secure delivery of massive humanitarian aid throughout Gaza. pic.twitter.com/Td3aRfpBya
— Bernie Sanders (@SenSanders) May 8, 2024
The Biden administration has approved more than 100 weapons sales for Israel since it began its latest assault on Gaza in October. Last month, Biden signed into law a foreign aid package that includes billions of dollars in unconditional U.S. military assistance for Israel.
The New York Timesreported Tuesday that Biden "withheld 1,800 2,000-pound bombs and 1,700 500-pound bombs that he feared could be dropped on Rafah, where more than one million Gazans have taken refuge." Israel has dropped hundreds of U.S.-made 2,000-pound bombs on Gaza since October.
"The administration is reviewing whether to hold back future transfers, including guidance kits that convert so-called dumb bombs into precision-guided munitions," the Times added.
A spokesperson for the Israel Defense Forces (IDF) downplayed the importance of the delay on Wednesday and said the U.S. and Israel will resolve their disagreements "behind closed doors."
The Biden administration's decision to suspend a bomb shipment for the first time in the seven-month war came amid growing pressure from human rights organizations, United Nations experts, and U.S. lawmakers to halt all offensive weapons deliveries to Israel, which has repeatedly used American arms to commit atrocities in Gaza.
"Over the years, the United States has provided tens of billions of dollars in military aid to Israel," Sanders said Wednesday. "We can no longer be complicit in Netanyahu's horrific war against the Palestinian people."
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Utah's Anti-Trans Bathroom Snitch Line Flooded With 'Bogus' Complaints
State Auditor John Dougall said that "concerned citizens should directly contact the bill sponsor, Rep. Birkeland," who doubled down on her support for the recently enacted law.
May 08, 2024
In just a week since its launch, Utah's " snitch line" for a new law restricting transgender people's access to some bathrooms and changing facilities was inundated with around 10,000 "bogus" reports, state Auditor John Dougall revealed Tuesday.
Dougall, a Republican running to represent the state's 3rd Congressional District, shared the figure with Utah News Dispatch and released a lengthy statement detailing his office's efforts to comply with House Bill 257, which GOP legislators passed and Gov. Spencer Cox signed earlier this year.
The law prohibits trans students in K-12 public schools from using bathrooms or changing rooms that align with their gender identity, according to an online resource from the ACLU of Utah and Equality Utah. The restrictions also apply to changing rooms in government-owned or -controlled buildings—such as the Utah Capitol and city or county recreation centers—but not to the facilities in private spaces such as restaurants, shopping malls, or theaters.
Since Dougall's office launched the online complaint form last week, Utahans and other opponents of H.B. 257 have posted the link on social media with messages like, " You know what to do." Some people even shared screenshots of their fake submissions.
Among the critics of the form was state Sen. Jennifer Plumb (D-9), who
said on social media last week: "Apparently Utah's solution to people feeling unsafe in restrooms is to encourage folks to take photos of and focus extreme attention on the private parts of others who are taking care of a biological need to eliminate waste? What could possibly go wrong?"
Dougall responded that "our hotline has historically allowed complainant to upload additional supporting information. My office has no interest in those types of photos which, of course you know, would be illegal." The auditor went back and forth with Plumb, who stressed that "these 'hotline' reporting spaces are what make people unsafe."
In his Tuesday statement, Dougall said that he has not received "a single legitimate complaint" and that his office "only investigates alleged violations of the statute by government entities" and "will not investigate the actions of any private individuals."
"The office created the complaint form to comply with a statutory mandate—a role we did not request. Indeed, no auditor sets out to become a bathroom monitor," Dougall continued. He noted that "the bill was rushed to final passage" and neither its sponsor, state Rep. Kera Birkeland (R-4), "nor any other legislator consulted with this office regarding this newly mandated obligation."
"I recognize that many Utahns feel trampled by an invasive and overly aggressive Legislature that too often fails to seek input from those most affected," he added. "The Legislature crafted these public policies, and only the Legislature can revise them. Concerned citizens should directly contact the bill sponsor, Rep. Birkeland, and other legislators at le.utah.gov."
Responding to Dougall's statement on social media Tuesday, Birkeland
said in part that "it's not surprising that activists are taking the time to send false reports" and "backlash from this legislation was completely expected."
"But that isn't a distraction from the importance of the legislation," she added, claiming that the law protects women and girls, and that opposition to it comes from "a loud and vocal minority."
Since North Carolina passed the nation's first bathroom bill in 2016, similar laws and other state-level legislation attacking various trans rights have been advanced by Republican lawmakers throughout the United States, often provoking legal challenges.
As trans journalist Erin Reed, who tracks anti-trans legislation across the country, highlighted Tuesday:
The ordeal over the bathroom reporting tool in Utah mirrors problems seen in many other anti-trans bathroom laws targeting transgender adults. These laws are extremely difficult to enforce. Questions of enforcement were brought up often in the debate, with many pointing out that you can't always tell who is transgender. This sentiment was shared in the Senate Business and Labor Committee by Dustin Parmley, a public defender, who stated: "This bill is impossible to enforce. It relies on citizens to determine if someone is feminine or masculine enough to use it. The exceptions are for hidden conditions, such as someone's surgery or birth certificate. It will lead to unnecessary police investigations."
"Other attempts to create such forms have similarly failed,
such as in Virginia, where Gov. Glenn Youngkin's tip line was flooded with complaints about Beowulf, or in Missouri, where scripts for the Bee Movie were sent in," Reed noted. "In this case, it appears that when faced with problems enforcing anti-trans laws, the state of Utah attempted to sidestep the issue by abdicating the responsibility of enforcement to its citizens."
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