According to “Out of Reach”, the annual report of the National Low Income Housing Coalition (NLIHC), prices of many rental markets have increased sharply over the past few years making affordable housing difficult for low and medium wage workers.
The report reveals a marked disparity between people’s earning and rental housing costs. This difference is sizeable and has increased every year. In fact, the cost of rental housing has gone up by 28% in the past 7 years, much beyond the wages earned by the people who need affordable housing the most.
NLIHC calculated the hourly wage needed to afford the rent and utilities of a market rate rental home in each state. Affordable housing was defined as the cost of a two-bedroom rental home without having to spend more than 30% of one’s gross income on housing costs. The report terms this rate of affordability as the ‘national housing wage’, which has increased to $16.31 from last year’s $15.78.
Housing prices in many rental markets far exceed the wages of the renters, making them the least affordable rental markets. Based on the Out of Reach 2006 report, Hawaii stands at the top of the ten most pricy rental markets for a two-bedroom rental home. Listed below are top 10 most expensive states for rental housing:
1. Hawaii – hourly wage of $23.53 needed to afford a two-bedroom rental home.
2. California – hourly wage of $22.86 needed to afford a two-bedroom rental home.
3. Massachusetts – hourly wage of $22.65 needed to afford a two-bedroom rental home.
4. New Jersey – hourly wage of $21.21 needed to afford a two-bedroom rental home.
5. New York – hourly wage of $20.70 needed to afford a two-bedroom rental home.
6. Connecticut – hourly wage of $20.42 needed to afford a two-bedroom rental home.
7. Maryland – hourly wage of $20.07 needed to afford a two-bedroom rental home.
8. Rhode Island – hourly wage of $19.36 needed to afford a two-bedroom rental home.
9. New Hampshire – hourly wage of $18.10 needed to afford a two-bedroom rental home.
10. Alaska – hourly wage of $17.90 needed to afford a two-bedroom rental home.
The report concluded that a minimum-wage earner making $10,712 a year cannot afford even a one-bedroom home anywhere in the country. The reality is that a wage earner needs to make $28,475 per year to afford a two-bedroom rental home. Families with two minimum-wage earners need to make at least $33,925 to afford a two-bedroom rental home.

Green homes are eco-friendly homes that are energy efficient and use ecological design and sustainable resources. There has been a tremendous increase in awareness of the benefits of green building in America among builders and home owners alike. With home builders finding it easier to construct green homes, the number of green homes constructed throughout the country has gone up remarkably.
Ecological concerns and the increasing awareness of the advantages of green homes have led to an upsurge in green homes in the country. Concerns about the impact their homes have on the environment have prompted some homebuyers to opt for green homes.
Building green homes is no longer a remote concept these days. Over disturbing facts about global warming and indoor air pollution, today, the top priority of the National Home Builders Association and the American Institute of Architects is constructing green buildings.
There is sufficient data around that indicate that the building of green homes is on the rise. According to the figures provided by the U.S. Green Building Council (USGBC) (who developed the LEED (Leadership in Energy and Environmental Design) green building rating system), the number of buildings with LEED status in America has increased from 38 in 2002 to 669 now. Green buildings are progressively entering the mainstream with more and more buildings getting LEED certification.
Given that green buildings do not cost very much more than traditional buildings, and that they actually reduce energy bills, the building of green homes is on the rise. A green building is not only less expensive to live in but also spikes in value by 7.5 percent on average and improves return on investment by 6.6 percent on average.
Green building concepts begin to rise everywhere as the number of individuals who want to remodel, build or buy green homes are rapidly increasing. Architects and developers are responding to satisfy this growing demand. Green buildings have been found to appreciate faster than traditional buildings.
What was once a patchwork of green buildings in several cities has now increased to encompass whole communities and neighborhoods. According to a McGraw-Hill Construction survey in 2006, about two-thirds of builders would be building green homes in America this year. Green buildings are firmly mainstream now with federal government and 15 states requiring new public buildings to meet the LEED standards. In fact, four U.S. states and 17 cities offer incentives for private buildings built to LEED standards.
With rising government initiatives, consumer interest and the number of green developers and builders, the green building revolution is all set to go to a new level.

If you are looking for the best golf community living in San Diego County, check out these top ten golf communities that are the best in sunny Southern California, according to Golf Community Realty. These exclusive gated golfing communities offer the most suitable lifestyle for golf lovers and have been chosen based on the homes available and the amenities they offer. All ten communities enjoy the exquisite Californian weather year round and are the ultimate golf areas in San Diego County.
1. Pauma Valley C.C., Pauma Valley
This golf community offers a magnificent golf course, 24-hr gate-guarded entrance, clubhouse, tennis courts, a swimming pool and a long private airstrip. Resale condos begin from the low $400s while single family homes start from $575,000.
2. Aviara Golf Club, No. San Diego County
The golf community boasts of a very picturesque resort, the Arnold Palmer Signature golf course and proximity to the Pacific Ocean beaches. The resort’s master planned housing area consists of executive homes and custom homes. Also available are numerous villas that skirt the golf course.
3. Bridges at Rancho Santa Fe, Rancho Santa Fe
This golf community is known for its award-winning villas that are available on the resale market from time to time. Custom-appointed homes begin from the mid $2 millions. Custom estate homesites and estate-sized homes are also available.
4. The Crosby Estate, Rancho Santa Fe
The Crosby Estate is home to the Crosby National Golf Club and beautiful homes with breathtaking views that include semi-custom homes, golf villas, and custom homesites. Also available are a clubhouse, a swim and athletic club, tennis garden, etc.
5. Encinitas Ranch, Encinitas
The Encinitas Ranch Golf Course offers 18 championship holes amidst a stunning natural scenario. Elegant executive homes line the golf course and are available from $895,000.
6. Golf Club of California, Fallbrook
This private golf club offers an 18-hole championship golf course, a charming clubhouse, a business center and more. Homes start from $895,000 and most of them offer wonderful views.
7. Maderas C.C., Poway
This Poway golf community offers a magnificent location, a top ranking 18-hole golf course and several custom homes that are available from 1,175,000.
8. Pala Mesa Resort, Fallbrook
The resort community offers a beautiful 4-star rating golf course, tennis club, swimming pool and a host of other amenities. Condos around the golf course start at $279,000 and other homes in the area begin at $650,000.
9. Santaluz, No. San Diego County
This is a private club with a championship golf course. Homes include single story homes of the Santa Barbara styled casitas and large custom homes. There are plenty of custom homesites too.
10. Village of Rancho Santa Fe
“The Village” of Rancho Santa Fe offers several championship golf courses and other amenities such as tennis courts, a riding club, etc. Homes in this area consist of custom homes, luxurious ranches and large estate homes.

Top 10 Luxury Home Markets To Watch for Price Increases or Reductions
The Unique Homes Magazine has listed 25 luxury home markets to watch in 2007 in its January issue. According to the Unique Homes report the 25 luxury markets will indicate where the luxury real estate market is heading to. These markets along with features that make them stand out from the rest are worth watching out for.
The following is a brief report on the top 10 luxury home markets to watch for price increases or reductions in 2007.
1. Annapolis, Maryland. The waterfront city located on Chesapeake Bay offers excellent boating and affordable prices compared to Washington’s luxury enclaves. With Washington and Baltimore within reasonable commute, this city is highly desirable.
2. Asheville, North Carolina. An eclectic ambiance and low-key lifestyle attracts people to Asheville which continues to remain one of the hottest places for luxury home buyers.
3. Aspen, Colorado. From a ski enclave this luxury market has grown into a platinum location. With its four-season appeal and restrictive zoning policies, Aspen is still a highly-sought after destination.
4. Atlanta, Georgia. The city offers several new upscale communities, numerous lifestyle amenities, retreats and much sought after waterfront luxury homes.
5. Austin, Texas. A strong real estate market that saw record gains in 2006, the reputable University of Texas, the scenic lakes and the great music attracts buyers to this hill country.
6. Bellevue/Medina, Washington. With prices going up at 28 percent, the market has still not peaked and several upscale neighborhoods are available at a lower price range when compared to other markets.
7. Beverly Hills, California. One of the top ranked luxury markets that is perpetually in demand, Beverly Hills continues to be untarnished and idolized as the Mecca for luxury. Hollywood Hills is currently a hot market for buyers.
8. Idaho. The growing resort markets in the state garner attention for the state that is making its presence felt in the luxury home market.
9. Jupiter, Florida. The boom has arrived here after Tiger Woods’ purchase of a 10-acre estate for $38 m. The market continues to surge on this exclusive island.
10. Manhattan Uptown, downtown, midtown. The luxury market is upbeat with record sales of more than $5 m in 2006 accelerated by Wall Streeters. Co-ops and town houses are favorites among buyers here.
If you are interested in buying or selling a home, condo or any other type of real estate in any of these markets, be sure to seek out the services of a real estate agent to advise you about current local market conditions.

The foreclosure market is an attractive option for buyers wanting to invest in real estate. A foreclosed property is a mortgaged property that has been taken over by the lender due to non-payment of the mortgage. The lender then sells the property in order to recover the money, often at below market prices. Foreclosed homes, condos and other properties can for make excellent investments and is a popular choice for those entering the real estate market.
The October 2006 issue of Business 2.0 Magazine ranks the top 10 foreclosure markets in the United States. Greeley in Colorado tops the list followed by Detroit in Michigan, Miami in Florida, Indianapolis in Indiana, Ft. Lauderdale in Florida, Denver in Colorado, Dayton in Ohio, Dallas and Fort Worth in Texas, and Atlanta in Georgia.
Greeley, CO, has the largest number of foreclosure households in the country, with 0.59% of homes falling in the category, an increase by 14.7% since January 2006. The report holds aggressive residential development, risky underwriting practices and stagnant wages as the main causes.
Detroit, MI, stands next with 0.51% of the households in foreclosure. The badly performing auto industry and the resulting impact to autoworkers’ incomes has contributed to number of homes in foreclosure in this city.
Third on the list is Miami, FL, where 0.37% of the households are in foreclosure, a staggering 91% increase since January 2006. The report states a weakening economy, higher property insurance premiums, and rising energy and interest rates, as the reasons for this rapid increase.
The fourth among the top ten foreclosure markets is Indianapolis, IN. Although the foreclosure rates are slightly lower from last year, still the portion of households in foreclosure stands at 0.35%. Setbacks and layoffs in the city’s auto industry together with falling home prices have contributed to foreclosure rates in this city.
Fort Lauderdale, FL, stands fifth with 0.34% of households entering foreclosure, which is up by a whopping 118.5% since January 2006.
Denver (with 0.33% of households in foreclosure), Dayton (with 0.33% of households in foreclosure), Dallas (with 0.31% of households in foreclosures), Fort Worth (with 0.31% of households in foreclosure) and Atlanta (with 0.31% of households in foreclosures) round out the top 10 foreclosure markets.
If you are looking to invest in the foreclosure market, consult a real estate agent who can help you clinch the best deal on the foreclosure property of your choice.

Women are working more, earning more and buying more than they ever did. Consequently, they have a significant influence on the American economy in general, and the real estate industry in particular.
The collective buying power of US women accounts for about 85 % of all consumer purchases. When it comes to purchasing patterns, women are estimated to make 94 % of home furnishings decisions, 91 % of new homes purchase decisions, and 89 % of travel decisions.
Women’s earnings have accelerated over the last few years and they have emerged as the Chief Purchasing Officers in their households. According to IRS data, women constitute 39 % of the top wealth holders in the country. This means about 2.5 million women possess a wealth of $4.2 trillion put together. Notably, the IRS estimates that by 2050, 42 % of these women will be single or widowed. The IRS further estimates that more wealth is bound to be accumulated among women.
Another growing trend that emerged in a December 2006 study by the National Association of Realtors (NAR) was that about 22 % of homes purchased between July 2005 and June 2006 were by single women who were in the 25 to 34 age range. Women accounted for a record number of 1.76 million home purchases (1 in every 5 homes), a significant increase from 14 % a decade ago. Women’s growing success in their careers, higher education, financial independence and a desire to build an early nest on their own, are some of the reasons that have spearheaded this home buying trend.
Among the vast demographic spectrum in the real estate industry, women have become a force to reckon with. Real estate agents are increasingly taking note of their female clients and the power they wield in home buying decisions. By the influence that they bring into play in home buying decisions, women form a significant and growing market that simply cannot be ignored.
If you are considering buying a home, condo, or any other real estate, be sure to seek out the services of a local real estate agent to guide you through this complex process.

Buying a home is a big-time real estate investment and has to be done with great prudence. Knowing where not to buy a home is as important as are the dos and don’ts of buying a home.
Of the many top ten lists on CNNMoney.com, there is listed the top ten overvalued cities in America where it is better not to buy a home for the next two years or so. The report states a variety of reasons for the unfavorable market conditions.
Five cities in California – Bakersfield, Fresno, Merced, Sacramento and Stockton, figure among the top ten cities that have the least possibility of home price appreciation. Home prices have reached a new high (by nearly 60%) in these areas over the past two years. With an economy driven by agriculture and relatively higher unemployment rates anticipated for that area, the real estate market is predicted to slump in the region.
Although three cities in Florida are recommended as good real estate buys, the report also cites four others in Southwest Florida that fall among the very bottom of the list. With home prices here expected to plummet very soon, cities like Fort Myers, Naples, Punta Gorda and Sarasota are those that one would do best to avoid for a year’s time or so, while buying a home or a condo.
Market prices are expected to decline in the Jersey Shore (New Jersey) area that saw a radical boom in the last two quarters. Although home prices in the third quarter have rebounded from the slight drop during the second quarter, the bubble is expected to burst soon and the overpriced market is likely to stabilize. The popular seaside cities of New Jersey, Atlantic City and Ocean city are anticipated to fall under the unfavorable list.
In Phoenix, Arizona, a hot favorite among investors last year, sliding home prices may to be an unavoidable occurrence in the next 12 months. With home prices dropping by more than $100,000 in some residential developments and investors trying to sell off their property, it is safer to wait for a year or longer before investing here.
Economists at Moody’s Economy.com also predict a sharp decline in Riverside and San Bernardino counties, California’s Inland Empire.
The bottom ten cities that are likely to see major drops in median home prices during the coming year are Stockton, (leading the list with a predicted fall of 9.7%), Merced, Reno/Sparks, Fresno, Vallejo/Fairfield, Las Vegas, Bakersfield, Sacramento, Washington, D.C and Tucson.
Given these fluctuating real estate market conditions, one should exercise a great deal of caution when investing in real estate. It makes sense to get the expert advice of a real estate agent to advise you about your next home purchase, since agents often have access to the most up-to-date real estate market data and neighborhood pricing trends.

Wealthy home buyers who buy multi-million dollar homes are typically self-made millionaires with new money, according to a recent online survey of 683 Coldwell Banker Previews International property specialists. The study revealed the top professions of these affluent customers. According to the respondents, 88 % of their customers are business or corporate executives, 37 % are physicians, 31 % are lawyers, 30 % are financial professional and 14 % are entertainers, entertainment executives or professional athletes.
Wealthy home buyers require their real estate agents to be equipped with special skills, according to the Coldwell Banker’s survey. Given the magnitude of the financial transactions involved in luxury home purchases, 78 % of sales associates said that the top most need their clients require from their real estate agents is privacy and confidentiality. The luxury customers also want their real estate agents to exercise discretion while dealing with their multi-million dollar transactions. Almost 70 % of respondents polled that their wealthy clients want their real estate professionals to offer customized services while 44 % said that the luxury home buyers want their agents to have good network and work relationship with executive assistants, CPAs and attorneys.
Wealthy home buyers also want their agents to know the inside scoop on the real estate market, according to 36 % of the respondents in the Coldwell Banker’s survey. Seventeen percent of the sales associates surveyed indicated that one of the necessary skills for real estate professionals working with affluent customers was the ability to provide emotional support to their clients. And according to 11 % of respondents, luxury customers want their real estate agents to establish personal rapport with their clients.
The study also included queries on the “must have” amenities that the affluent clientele want in their luxury homes. Wealthy home buyers want media rooms in their homes, according to 60 % of respondents and another 60 % polled that their affluent customers want “wired” homes. However, there are a few home design elements that are out among luxury home buyers. Gourmet kitchens, granite countertops and wet bars are no longer counted as luxuries by wealthy home buyers, according to the survey respondents.
The survey also found that the multi-million dollar home buyer pays a typical down payment of 20 % to 30 %, while a quarter of clients put down 30 % to 50 % of the sale price.

On any given day, people can easily find articles and news stories describing an impending bust of the so-called real estate bubble. Despite this gloomy prediction, many experts believe that the recent slowdown in housing will be a gradual and modest readjustment rather than sharp bust or decline. These experts believe that factors that lead to a sharp decline in the real estate market are just not present in the current economic outlook. In fact, a recent study by the Joint Center for Housing Studies at Harvard University noted that “despite the current cool-down, the long-term outlook for housing is bright.”
The rise and fall of the real estate market is subject to the forces of supply and demand, and these factors point to stable and positive growth in the real estate segment.SUPPLY FACTORS
Limited supply of real estate makes it scarce and usually pushes home prices up. In contrast, an oversupply of real estate tends to put downward pressure on home prices. Despite the current slow down in the real estate market, factors that impact limited supply favor continued growth in the real estate market. Some of these factors include:
1. Builders have readjusted growth plans in regions that have an oversupply of new housing. Over time, any excess inventory is likely to be depleted and equilibrium achieved between supply and demand.
2. The availability of land in certain regions, as well land use regulations and associated compliance costs will continue to restrict the supply of new homes.DEMAND FACTORS:
Housing located in regions with high demand tend to be more expensive than homes in regions with low demand. Factors that impact the demand for housing suggests a favorable long-term housing outlook. Some of these factors include:
1. No current evidence of significant and across-the-board job losses; forecasts of relatively low unemployment rates.
2. Long-term increased demand for second homes, vacation homes and senior housing by baby boomers.
3. Long-term increased demand for entry-level homes by the children of baby boomers.
4. Long-term increased demand for entry-level homes by immigrants.
5. Long-term increased demand for entry-level homes by second-generation Americans.
6. Forecasts that the outflows and inflows of the U.S. population in and out different regions will not significantly impact the overall U.S. real estate housing market.
7. Relative stability in interest rates.
8. Continued stability in long-term home appreciation rates.
9. Overall, rising rate of wealth across all age groups.SUMMARY
In summary, strong household growth, overall rising incomes and wealth, and a stable economy all bode well for continued long-term growth in the real estate market. While the overall housing outlook is favorable, affordability will continue to be a challenge, as wages, especially in the lower income levels, have not kept up with housing costs.

Baby boomers, baby boomers, baby boomers; we all hear this term over and over again. So who are the baby boomers? Baby boomers are people in the United States who were born between 1946 and 1964. Approximately 78.2 million people fall into this category.
As a group, baby boomers comprise the largest population cohort in the history of the United States. The size of the group gives it vast influence over American politics, popular cultural, and of course, real estate. To evaluate the influence of the baby boomers on the future of real estate, the National Association of Realtors (NAR) conducted a study in 2006. The findings of the research were published in report entitled Baby Boomers and Real Estate: Today and Tomorrow. Below are some highlights from the NAR study.
AGE DISTRBUTION
According to the NAR report, baby boomers now range in age from 42 to 60 years old. The typical baby boomer is 50 years old, and the oldest of the baby boomers turned 60 in 2006. About 46% of baby boomers are in their 40s, and about 25% are at least 55 years old.
HOUSEHOLD INCOME
As a group, baby boomers are in their peak earning years. In 2005, baby boomers had a household income of $64,700, and about 25% them had a household income of at least $100,000 per year.
HOME OWNERSHIP
About 78% of baby boomers own a home, which is higher than the national ownership rate of 69%. About 96% of baby boomers believe that home ownership is a good financial investment.
FUTURE REAL ESTATE PURCHASES
About 10%, or 7.8 million of all baby boomers, said they were likely to purchase additional real estate in the next 12 months. Of these potential buyers, two-thirds were planning on buying a primary residence, 26% want to buy land, 19% want rental property, 15% want a vacation home or seasonal home, and 14% want a commercial property.
WHAT FEATURES ATTRACT BOOMERS
When baby boomers were asked about what features are most important to them, 38% wanted a lower cost of living, 38% wanted to be near family, 38% wanted easy access to quality health care, 37% wanted a better climate, and 36% wanted to be near a body of water.
PREFERRED COMMUNITY AMENITIES
When baby boomers were asked about the type of community amenities that interest them most, about 18% wanted to be near cultural offerings, 9% wanted to be closer to their family, 4% wanted to be on a golf course, and 3% wanted easy access to educational facilities.
WHERE DO BOOMERS WANT TO RETIRE
When baby boomers were asked about where they want to retire, 33% of them want to retire in a rural area, 30% in a small town, 25% in a suburban area, and only 12% in an urban community.
BOOMERS AND THEIR REAL ESTATE AGENTS
Baby boomers consistently use the services of a real estate agent. Approximately 60% of homebuyers and 79% of home sellers used a real estate agent in their last transaction.
SUMMARY
The baby boomers have had and will continue to have a significant impact on the real estate market. As the boomers near retirement, they continue to value real estate and will continue to invest in properties and land. Real estate agents would be well served to understand what baby boomers want in terms of their real estate investments, and design strategies that target the needs of this enormous population cohort. For more information, read the NAR report entitled, Baby Boomers and Real Estate: Today and Tomorrow