American Dream Revised
NEWBURGH, NY — September 18, 2013 — “Housing in the Hudson Valley: American Dream Revised,” the annual report from the Center for Housing Solutions at Hudson Valley Pattern for Progress, explains through data and research that homeownership remains out of reach for many in the Hudson Valley.
Among the Center’s findings is a precipitous decline in home mortgage applications in the Hudson Valley. To measure the decline, the Center for Housing Solutions examined application numbers in a four-county study area of Orange, Dutchess, Ulster and Rockland counties. In the aggregate, conventional applications dropped by 80% in the six-year period of 2005 to 2011. Would-be homeowners submitted 30,327 mortgage applications in 2005. That number dropped to 5,909 in 2011.
“The decline is dramatic and telling,” said Joe Czajka, Vice President at Pattern for Progress and Executive Director of the Center for Housing Solutions. “While the recession is presumed to be over, the path to homeownership remains littered with obstacles. Those barriers include a revival of rigor in bank requirements and the inability of would-be homeowners to save for down payment and closing costs that can easily top $20,000.”
“The growing problem of student debt has become another looming barrier,” Czajka continued. “Loan payments of $400 a month or more can stand in the way of owning a home for many in the Millennial generation between the ages of 18 and 34.”
The report notes that low wage jobs and real estate taxes which are among the highest in the nation are of particular concern in the Hudson Valley.
“More and more,” said Czajka “People are turning to renting as a viable option and that has become a very real part of the American Dream. It’s clear that leaders in the Hudson Valley now need to make sure that renting does not become an out-of-reach option as well.”
The annual housing report also makes note of:
• Modest gains in the real estate market
• Improved levels of New York State funding for housing in the Hudson Valley — although a need remains
• The negative impact of sequestration
• The need for streamlined approval process and infrastructure investment
• A discussion of a possible Federal Renter’s Tax Credit
• Accomplishments of the Center for Housing Solutions during its first year
“Housing in the Hudson Valley: American Dream Revised” and additional supporting material will be discussed in detail at the annual luncheon for the Center for Housing Solutions which takes place at 11:30 a.m., Tuesday, Sept. 24, at Anthony’s Pier 9 in New Windsor featuring Assemblyman Keith Wright, chair of the Assembly Committee on Housing; housing expert and State Senator Cecilia Tkaczyk, representing the northern part of the region; and Center for Housing Solutions Executive Director Joe Czajka.