WYMT | Eastern KY | News, Weather, Sports

Sluggish Incomes Add To Housing Slump

WASHINGTON (AP) - An Associated Press analysis finds that
sluggish incomes are a key factor in the slumping housing market.

An AP analysis of new Census data finds that since 1990,
homeowners have faced a growing gap between their incomes and the
price of their homes.

Analysts say the widening gap helped make the recent boom in
housing prices unsustainable. The rising prices were fueled largely
by low interest rates and risky borrowing, rather than increasing
incomes.

The analysis shows that homeowners in nearly every city are
spending significantly bigger shares of their incomes on housing
costs.

From 1990 to 2006, the share spent on housing costs increased in
all but 13 of the cities examined. Nationally, the share increased
from 21 percent to nearly 25 percent for homeowners with a
mortgage.


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
WYMT CONTACT INFO 199 Black Gold Blvd. Hazard, KY 41701 606-436-5757 - switchboard 606-439-9968 - newsroom
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 9731912 - wkyt.com/a?a=9731912