What is Stopping Poor People From Moving?

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Why have people stopped moving? The reason, economists believe, is that while there are good wages in economically vibrant cities like New York and San Francisco, housing prices are so high that they outweigh any gains people stand to make in earnings. As a result, high-income cities are still appealing to many workers, but only highly skilled workers who can command salaries high enough to make it worthwhile to move. Low-income workers will end up spending much of their incomes on housing if they move, and so stay put.

Source: The Atlantic.

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Separate Entrance for Poor People?

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Extell Development Company, as former Next City intern Raillan Brooks details at the Village Voice, is using a “workaround enabled by the city’s Inclusionary Housing law to help Extel (sic) collect on some major tax breaks and building allowances.” Floors two through six of the building will be available only to residents earning less than 60 percent of the Area Median Income, putting them under the “affordable” umbrella.

Now, get this: Those five floors are part of the exact same building as the luxury condos, but because of the separate entrance they could be legally designated as a separate entity.

via Next City.

Most and Least Affordable Housing Markets

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The National Association of Home Builders/Wells Fargo Housing Opportunity Index released last week determines the percentage of residents who can afford a median priced home in a given area. Predictably, homes in the Midwest with the rising foreclosures and falling housing prices have the most affordable housing markets and least affordable homes are concentrated on the coast, mostly West. Only 10.5% who earn the median household income of $59,800 can afford a median priced home in Los Angeles – Long Beach/ Glendale where the median home price is $412,000.

Bruce E. Breunig Jr., broker at Century 21 Alliance in Margate, admitted that “we Realtors remain part of the problem. We blame the media for fueling the downturn and try to counterbalance it with our own positive spin.”

Meanwhile realtors are divided over the accuracy of their own numbers even to the extent of admitting to blame for the downturn in the market.