Bridges

Bridges Summer 2018

Bridges is a quarterly review of regional community and economic development issues, projects and regulatory changes for practitioners from community-based organizations, as well as for Community Reinvestment Act officers, academics and government of

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T H E F E D E R A L R E S E R V E B A N K o f S T . L O U I S | C E N T R A L T O A M E R I C A ' S E C O N O M Y I N D E X S U M M E R 2 0 1 8 N O N M E T R O A R E A S Renters Homeowners Homeownership Rate State 2009 2016 Change 2009 2016 Change 2009 2016 Change Arkansas 134,692 135,621 929 323,529 309,912 (13,617) 70.6% 69.6% -1.0% Illinois 175,446 176,865 1,419 501,886 480,110 (21,776) 74.1% 73.1% -1.0% Indiana 130,088 136,559 6,471 417,447 396,712 (20,735) 76.2% 74.4% -1.8% Kentucky 189,164 208,258 19,094 518,453 498,669 (19,784) 73.3% 70.5% -2.7% Mississippi 179,192 185,673 6,481 436,523 411,753 (24,770) 70.9% 68.9% -2.0% Missouri 175,847 191,942 16,095 444,449 426,536 (17,913) 71.7% 69.0% -2.7% Tennessee 168,883 189,847 20,964 476,983 471,913 (5,070) 73.9% 71.3% -2.5% U.S. Total 5,255,502 5,683,924 428,422 14,202,772 13,934,409 (268,363) 73.0% 71.0% -2.0% Rural Community Reinvestment: How One Community Is Tackling Blight 5 9 10 CRA: AN EXAMINER'S PERSPECTIVE Updates to Economic Development A N D M O R E > > Renters Feel the Squeeze, While Homeowners Enjoy Relative Affordability By Andrew Dumont T he housing crisis and resulting Great Recession that descended on the United States over 10 years ago devastated many families and their communities. While many across the country have recovered, many others are still feeling its adverse effects, perhaps none more so than the nation's renters. e recent plight of these renters is a result of increasing competition for rental housing and stagnant wage growth for most of the last decade. Increasing competition for rental housing has come about due to the foreclosure crisis pushing many former homeowners into the rental market. Further, the impact of chang- ing demographics, progressively higher average student loan balances and changing lifestyle choices among younger generations (e.g., delaying marriage and children) all influence the ability or decision to become a homeowner. ese forces have combined to significantly increase the number of renter households in the years since the Great Recession, affecting both urban and rural communities nationally and the Eighth District of the Federal Reserve. (See Table 1.) e increase in the number of renter households has placed upward pressure on >> continued on Page 3 A Social Enterprise Alternative to Payday Lenders M E T R O A R E A S Renters Homeowners Homeownership Rate State 2009 2016 Change 2009 2016 Change 2009 2016 Change Arkansas 225,452 256,407 30,955 425,962 439,540 13,578 65.4% 63.2% -2.2% Illinois 1,281,257 1,458,178 176,921 2,790,799 2,686,971 (103,828) 68.5% 64.8% -3.7% Indiana 573,468 649,758 76,290 1,347,003 1,330,799 (16,204) 70.1% 67.2% -2.9% Kentucky 309,590 362,056 52,466 657,531 649,234 (8,297) 68.0% 64.2% -3.8% Mississippi 141,157 166,731 25,574 328,964 334,646 5,682 70.0% 66.7% -3.2% Missouri 513,352 595,685 82,333 1,188,590 1,158,199 (30,391) 69.8% 66.0% -3.8% Tennessee 561,632 659,314 97,682 1,205,069 1,201,130 (3,939) 68.2% 64.6% -3.6% U.S. Total 32,035,105 37,151,245 5,116,140 61,117,650 60,946,659 (170,991) 65.6% 62.1% -3.5% Sources: Author calculations using 2005-2009 American Community Survey 5-year estimates and 2012-2016 American Community Survey 5-year estimates TABLE 1 Change in Renter and Owner Occupant Households, and Homeownership Rates, Between 2009 and 2016

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