Science & Tech

Housing market resilient in slowing economy

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But affordability shows drop, according to Harvard study

The housing market has not been affected by a slowing economy, according to a report, The State of the Nation’s Housing: 2001, released in June 2001 by the Joint Center for Housing Studies at Harvard University. In fact, home sales at the beginning of the year were near record levels. However, prices for houses and rents continued to climb, raising concerns about affordability. Mortgage costs for the typical homebuyer rose so much faster than income that the rising cost alone absorbed most of the income gain. Rent exceeded inflation for the fourth year in a row. Principal support for this study was provided by the Ford Foundation and the Policy Advisory Board of the Joint Center for Housing Studies. Additional support was provided by the Fannie Mae Foundation, the FHLBanks, Freddie Mac, the Housing Assistance Council, the Mortgage Bankers Association of America, the National Association of Home Builders, the National Association of Housing and Redevelopment Officials, the National Association of Local Housing Finance Agencies, the National Association of Realtors, the National Council of State Housing Agencies, the National Housing Endowment, the National Low Income Housing Coalition, the National Multi Housing Council, and the Research Institute for Housing America.