Understanding Housing Unaffordability

What has been the trend in median sales prices for existing homes since the 2008 housing crisis?

• No significant change

• A rapid decline

• A slow and steady increase

• A sharp increase followed by a decline

What was a typical feature of starter homes in the mid-20th century?

• They were priced at over $500,000

• They were generally two or three-bedroom houses

• They were mostly located in urban areas

• They were usually over 2000 square feet

Why are fewer homes being listed for sale in recent times?

• Government restrictions on selling homes

• There is an oversupply of homes

• High interest rates make buying less attractive

• Homeowners are waiting for prices to rise further

What is a major reason for the decline in starter homes?

• Decreased demand for small homes

• Increased land and construction costs

• Government policies favoring larger homes

• Lack of interest from younger buyers

What is a significant factor contributing to low housing turnover rates?

• High demand for urban apartments

• Homeowners locked into low mortgage rates

• Increased construction of new homes

• Decreasing population in suburban areas

In Denver, what percentage of after-tax income would a median income earner spend on a median-priced home?

• 30%

• 50%

• 90%

• 72.4%

What is the suggested home price to income ratio according to financial experts?

• 2.6

• 4.0

• 1.5

• 6.1

What does a price-to-rent ratio of 21 or more suggest?

• It's better to buy than rent

• The housing market is stable

• It's better to rent than buy

• There is no difference between buying and renting

How does the current median home price to income ratio for millennials compare to that of boomers?

• It is lower for millennials

• It is the same for both

• It is higher for boomers

• It is higher for millennials

What is the financial implication for someone earning $75,000 in today's housing market?

• They cannot afford any home

• They can afford a home priced at $500,000

• They can afford a home priced at $250,000 or less

• They can easily afford a median-priced home