Recent Homeownership and Mortgage Trends in New York City Asian American Community Development Confe

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Recent Homeownership and Mortgage Trends in New
York CityAsian American Community Development
Conference The State of Asian New Yorkers,
2007 and BeyondOctober 26, 2007





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Furman Center for Real Estate and Urban Policy
Since its founding in 1994, the Furman Center for
Real Estate and Urban Policy has become the
leading academic research center in New York City
devoted to the public policy aspects of land use,
real estate development and housing. The Furman
Center, a joint research center of NYU Law School
and the Robert F. Wagner School of Public
Service, is dedicated to

• Providing objective academic and empirical
  research on the legal and public policy issues
  involving land use, real estate, housing and
  urban affairs in the United States, with a
  particular focus on New York City
• Promoting frank and productive discussions among
  elected and appointed officials, leaders of the
  real estate industry, leaders of non-profit
  housing and community development organizations,
  scholars, faculty and students about critical
  issues in land use, real estate and urban policy
  and
• Presenting essential data and analysis about the
  state of New York Citys housing and
  neighborhoods to all those involved in land use,
  real estate development, community economic
  development, housing, urban economics and urban
  policy.

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Presentation Outline

• Homeownership Rates in New York City
• Homeowner Cost Burdens and Housing Affordability
• Recent Trends in Home Mortgage Lending
• Recent Trends in Mortgage Foreclosures

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Homeownership Rates in NYC

• Roughly a third of NYC households own their own
  home. This is the lowest homeownership rate
  among major cities in the U.S.
• Rate has been trending up increased 4 percentage
  points between 1990 and 2005, from 28.7 to
  33.1.
• But New Yorkers are still half as likely to own a
  home as other Americans (67 of whom own their
  own homes).

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Homeownership Rates in NYCBy Race and Ethnicity

• Black New Yorkers have seen strong gains, with
  their homeownership rate increasing from 21 in
  1990 to 28 in 2005.
• Hispanic New Yorkers lag behind all other groups,
  with a homeownership rate of 16
• Asians and Whites enjoy homeownership rates
  above the City average, but still far below
  national averages.

Source Furman Center calculations using data
from ACS 2005
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Homeowner Cost Burdens in NYC

• The median NYC homeowner with a mortgage pays
  roughly one third of their income on housing
  costs (within HUDs affordability standard).
• But low-income homeowners are stretched very
  thin. Three quarters of homeowners who earn less
  than 50,000 a year (and have an outstanding
  mortgage) pay more than half their income on
  housing costs.

Source Furman Center calculations using data
from HVS 2005
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Homeowner Cost Burdens in NYC By Race and
Ethnicity, 2005

• 1/3 of Asian homeowners and about 1/4 of Black
  and Hispanic homeowners pay more than 50 percent
  of their income on housing, compared to only 17
  percent of White, non-Hispanic homeowners

Source Furman Center calculations using data
from HVS 2005
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Affordability of Homeownership in NYC

• Between 2000 and 2005, the median sales price in
  NYC rose by 68 , from 285,805 to 480,000
  citywide in 2005 (measured in 2005 dollars).
• In the same time period, the Citys real median
  household income decreased slightly.
• Housing price-to-income ratio (10.3) is among the
  highest in large U.S. cities.
• In 2005, less than 5 of homes on the market were
  affordable to New Yorkers earning the Citys
  median income (43,434), down from 11 in 2000.

Source Furman Center calculations using data
from NYC Dept. of Finance, ACS and Federal
Housing Finance Board
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Home Prices, Incomes Subprime Lending in NYC,
2000-2005
Source Furman Center calculations using data
collected by HMDA, HUD, NYC Dept. of Finance and
NYC county clerks offices
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Rate of Subprime Home Purchase Loansby Race and
Ethnicity, 2006
Source Furman Center calculations using data
from HMDA 2006 and HUD subprime lender list
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Rate of Subprime Home Purchase Loans By
Neighborhood, 2006
Source Furman Center calculations using data
from HMDA 2006 and HUD subprime lender list
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Subprime Lending Foreclosure Filings in NYC,
2000-2005
Rate of Subprime
Lending 16
Rate of Foreclosure Filings (per 1,000 homes)

• Source Furman Center calculations using data
  from HMDA, HUD, NYC Dept. of Finance and NYC
  county clerks offices

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Rate of Foreclosure Filings in NYCBy
Neighborhood, Annual Average 2000-2005
Source Furman Center calculations using data
from NYC Dept. of Finance and NYC county clerks
offices
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Conclusion
What we know so far about foreclosures in NYC

• Rates of foreclosure filings are higher in NYC
  neighborhoods with
• Higher rates of subprime lending
• Lower median household incomes
• Higher proportions of African American or
  Hispanic households

CRL (2007) study suggests future risk of
foreclosure may increase as housing markets cool.
High rates of foreclosure could threaten gains
in homeownership.
Furman Center is currently researching impacts
that foreclosures have on surrounding
neighborhoods.
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For More Information

• Contact the Furman Center at furmancenter_at_nyu.edu
  or [phone]
• Visit the tremendous store of data available
  through the Furman Centers New York City Housing
  and Neighborhood Information Service (NYCHANIS),
  www.nychanis.com
• For this and other reports and publications,
  please visit http//furmancenter.nyu.edu