A recent study published by real-estate company Trulia shows that homes are the most affordable they have been in the past 40 years.
The study looked at data from 1975-2016, including median housing prices and median incomes. The company would then judge whether an area was affordable or not affordable. The study found 2016 to be more affordable than the 40 years prior.
“In 2016, the median household could afford a home 1.5 times more expensive than the median home price,” it stated. “In 1980, the median household could only afford about 3/4 of the median home price.”
The study also found that home prices have grown twice as fast as wage-growth, which demonstrates the fact people are spending more of their income on housing costs.
“Adjusting for inflation, incomes have grown 27 percent between 1980 and 2016, while home prices have grown 62 percent,” it stated.
As of February 2018, the Ithaca Board of Realtors found that closed sales are up 13.4 percent, while the median price is down 1.4 percent.
A study published in 2016 by the Washington Post looked at housing prices from 2004 to 2015, it found Ithaca’s zip code, 14850, saw a 42 percent increase in property values. Homes in Ithaca are worth $78,708 more than they would have been in 2004.
This study illustrates Ithaca’s housing crisis. In the special report published by The Ithaca Voice, the publication showed the causes behind the lack of affordable housing in Ithaca.
The paper found a variety of factors contributing to the lack of affordable housing in Ithaca including construction, student housing, and tax costs to landlords and homeowners.
Ithaca’s Mayor Svante Myrick told the online publication the housing struggle is a challenge, and said the city needs to look at all helping all demographics.
“It’s impossible to hurt one without hurting the other, and it’s impossible to help one without helping the other. If we build more student housing, that will help permanent residents; if we built more housing for permanent residents, that will help students,” Myrick told The Ithaca Voice.
The Trulia study finds housing is more affordable in the U.S., but in Ithaca, the city is in the midst of a years-long struggle for affordable housing. Ithaca is an exception to the study and affordable housing continues to be one of the city’s major struggles.