Wednesday, July 3, 2019

ATTOM Data Solutions Finds Median-Priced Homes Not Affordable for Average Wage Earners in 74 Percent of U.S. Housing Markets; Home Prices Outpacing Wages in 40 percent of Locations



Todd Teta

IRVINE, CA — ATTOM Data Solutions, curator of the nation’s premier property database and first property data provider of Data-as-a-Service (DaaS released its Q2 2019 U.S. Home Affordability Report, which shows that median home prices in the second quarter of 2019 were not affordable for average wage earners in 353 of 480 U.S. counties analyzed in the report (74 percent).

The largest populated counties where a median-priced home in the second quarter of 2019 was not affordable for average wage earners included Los Angeles County, California; Cook County (Chicago), Illinois; Maricopa County (Phoenix), Arizona; San Diego County, California; and Orange County, California.

The 127 counties (26 percent of the 480 counties analyzed in the report) where a median-priced home in the second quarter of 2019 was still affordable for average wage earners included Harris County (Houston), Texas; Wayne County (Detroit), Michigan; Philadelphia County, Pennsylvania; Cuyahoga County (Cleveland), Ohio; and Franklin County (Columbus), Ohio.

The report determined affordability for average wage earners by calculating the amount of income needed to make monthly house payments — including mortgage, property taxes and insurance — on a median-priced home, assuming a 3 percent down payment and a 28 percent maximum “front-end” debt-to-income ratio.

 That required income was then compared to annualized average weekly wage data from the Bureau of Labor Statistics (see full methodology below).

“Despite falling mortgage rates and rising wages, the cost of owning the typical home remains out of reach or a significant financial stretch for the nation’s average wage earners,” said Todd Teta, chief product office with ATTOM Data Solutions.

“However, a closer look at the data reveals milder-than-usual increases for the Spring, and none as severe as in previous years since the recession. Therefore, this can help indicate the market may be easing, following similar indicators from recent home-flipping and foreclosure data trends.”

Home price appreciation outpacing wage growth in 40 percent of markets

Home price appreciation outpaced average weekly wage growth in 192 of the 480 counties analyzed in the report (40 percent), including Maricopa County (Phoenix), Arizona; Riverside County, California;
San Bernardino County (Riverside), California; Tarrant County (Dallas-Fort Worth), Texas; and Wayne County (Detroit), Michigan.

Average weekly wage growth outpaced home price appreciation in 288 of the 480 counties analyzed in the report (60 percent), including Miami County, Florida; Kings County, New York; Dallas County, Texas; Queens County, New York; and Clark County, New York.

67 percent of markets require over 30 percent of wages to buy a home

Among the 480 counties analyzed in the report, 323 (67 percent) require at least 30 percent of their annualized weekly wages to buy a home in the second quarter of 2019.

Those counties that required the greatest percent included Marin County (San Francisco), California (116.8 percent of annualized weekly wages needed to buy a home); Kings County, New York (113.4 percent); Santa Cruz County, California (112.3 percent); San Luis Obispo County, California (91.4 percent); and Maui County, Hawaii (88.2 percent).

A total of 157 of the 480 counties analyzed in the report (33 percent) required less than 30 percent of their annualized weekly wages to buy a home in the second quarter of 2019.

Those counties that required the smallest percent included Bibb County (Macon), Georgia (12.9 percent of annualized weekly wages needed to buy a home); Wayne County (Detroit), Michigan (13.2 percent); Baltimore City, Maryland (13.6 percent); Rock Island County (Davenport), Illinois (14.9 percent); and Allen County (Lima), Ohio (14.9 percent).

61 percent of markets less affordable than historic averages
Among the 480 counties analyzed in the report, 292 (61 percent) were less affordable than their historic affordability averages in the second quarter of 2019, up from 50 percent of counties in the previous quarter but down from 74 percent of counties in the second quarter of 2018.

Counties that were less affordable than their historic affordability averages included Los Angeles County, California; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; San Diego County, California; and Orange County, California.

39 percent of markets more affordable than historic averages

Among the 480 counties analyzed in the report, 188 (39 percent) were more affordable than their historic affordability averages in the second quarter of 2019, including Cook County (Chicago), Illinois; and New York County, Suffolk County, Bronx and Nassau County – all in the New York metro area.

Counties with the highest affordability index were Warren County (Allentown), New Jersey (158); Litchfield (Torrington), Connecticut (139); Cumberland (Vineland), New Jersey (139); Mercer County (Trenton), New Jersey (137); and Atlantic County (Atlantic City), New Jersey (134).

82 percent of markets post better affordability compared to year ago
A total of 393 of the 480 counties analyzed in the report (82 percent) posted a year-over-year increase in the affordability index, meaning that home prices were more affordable than a year ago, including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County, California.

A total of 87 of the 480 counties analyzed in the report (18 percent) posted a year-over-year decrease in their affordability index, meaning that home prices were less affordable than a year ago, including Sale Lake County, Utah; Saint Louis County, Missouri; Marion County (Indianapolis), Indiana; Middlesex County, New Jersey; and Jackson County (Kansas City), Missouri.


CONTACTS:

Christine Stricker
949.748.8428

Data and Report Licensing:
949.502.8313

RAF Pacifica Group Acquires 121,541-SF Office Building in Carlsbad, CA for $20.2 Million

The 121,541-SF office building at 1950 Camino Vida Roble in Carlsbad, CA, is planned as a modern office/Industrial property 

  
SAN DIEGO, CA – RAF Pacifica Group, a San Diego-based owner, operator, and developer of high-quality commercial real estate, has added to its portfolio of creative and value-add assets in Northern San Diego County with the acquisition of a 121,541 square-foot office building at 1950 Camino Vida Roble in Carlsbad, California.

RAF Pacifica purchased the property from an institutional investor for $20.2 million.

Adam Robinson
In addition to adding a new fa├žade, RAF Pacifica plans to rebrand the property, formerly called Axis 1950, into fu•sion, a modern office/Industrial building with the largest amenity space in Carlsbad for a product of this type, according to Adam Robinson, President of RAF Pacifica.

“This acquisition currently has an overabundance of parking for the space,” says Robinson. 

“We came up with the idea of removing the existing truck court and creating an expansive exterior amenities area that would set fusion completely apart from any other property in the Carlsbad market.”

Amenities planned for the new space at fusion include a full basketball court, volleyball court, an amphitheater, a variety of covered and uncovered outdoor seating and dining areas, a fire pit, barbecue grills, hammock space, a wall mural, and drought-resistant landscaping.

“Offering a sizeable amenity space that exceeds tenants’ expectations aligns with our firm’s ongoing strategy of owning well-located, modern, creative, and value-add assets,” says Robinson.



“Carlsbad’s tenant mix of mostly biotech, cleantech, communications, and action-sports companies is demanding office space that reflects the coastal outdoor lifestyle of their employees, and we are poised to meet that demand.”

The acquisition of 1950 Camino Vida Roble is part of RAF Pacifica’s growing portfolio of creative assets in the Carlsbad market.

Aric Starck
 Earlier this year, the firm acquired five properties in this market, including 6305 El Camino, a single-tenant industrial property; 2320 & 2330 Faraday Avenue, two adjacent creative industrial properties; 1905 Aston Avenue, a creative industrial R&D and corporate-headquarters facility; and Avenida Crossing, a newly renovated, multi-tenant contemporary creative office campus.

The property to be rebranded as fusion is a one-story building with a mezzanine and exceptional loading capabilities, according to Robinson.

Constructed in 1996, the building is situated on 10.9 acres and is located close to Carlsbad’s McClellan-Palomar Airport, which contributes $108 million a year to the local economy.

Aric Starck of Cushman & Wakefield will represent RAF as the leasing broker.

CONTACT:

Lexi Astfalk
Brower Group
(949) 438-6262

Camille Renshaw to speak at Women of Influence Conference in Broomfield CO

   

Camille Renshaw

NEW YORK, NY, July 3, 2019 – Camille Renshaw, Chief Executive Officer of B+E, will speak and lead a breakout session at the GlobeSt. Women of Influence Conference, July 11 at the Omni Interlochen Hotel in Broomfield, Colorado.
The session, “The Path to CRE Success & How it Compares to Different Industries,” will include Renshaw; Carmela Ma, CEO & President of CJM Associates, Inc.; Karen Halper, SVP, Head of Property Management - VEREIT, Inc.; and Marie Phillips, Director - The Instant Group.  


Carmela Ma


The session will be moderated by Renshaw and will discuss how the commercial real estate industry has changed over the years, parallels between then and now, and offer advice to women of all position levels. 

In addition, Renshaw will be honored at the conference as a 2019 Real Estate Forum Women of Influence award recipient for achievement in innovation, selected from a record-breaking 350 submissions. 


Karen Halpert

 Since 1983, the Women of Influence award has recognized remarkable commercial real estate professionals who have significantly influenced the market or had outstanding successes in the past year.
Launched by Renshaw and her cofounder Scott Scurich in December 2017, B+E is a modern investment brokerage firm, specializing in net lease real estate and 1031 exchange.  

Marie Phillips

With offices in New York, Chicago, San Francisco, Atlanta and Tampa, B+E boasts the first NNN trading platform consisting of user-friendly dashboards, real-time predictive pricing and an AI-driven exchange -- all leveraging the largest data set in the NNN industry. 


Scott Scurich

CONTACT:


John Vita
John Steven Vita Communications
847/853-8283