Thursday, December 1, 2011

Growing Housing Crisis in Sacramento


Wall Street Banks and the Growing Housing Crisis in Sacramento.
California has been one of the hardest hit states by the foreclosure crisis. Wall Street’s reckless lending practices devastated California with high-cost loans homeowners couldn’t afford, while inflating the housing bubble that reaped record profits for the 1 percent. The consequences of Wall Street greed is that millions of Californians have lost their homes and thousands more continue to struggle with finding quality and affordable housing.
While vacant bank-owned properties litter Sacramento neighborhoods, rental vacancies are in decline, rental prices are up in many areas, and there are 2,734 homeless in Sacramento County.12 In parts of Sacramento rent rates increased by more than 3 percent from 2007 to 2012.13

The housing market strains caused by Wall Street are felt most acutely among low-income individuals and families. Affordable housing shortages for low-income households (those 50 percent below the area median) went from 4.3 million units in 2003 to 6.4 million units in 2009 nationally.14                                    The problem is especially clear in the Sacramento metro area where 54.2% of renters are currently living in unaffordable housing.15
Contrast this very serious housing need with the fact that there have been 1.2 million foreclosures in California since 2008 and it is expected to exceed 2 million by the end of 2012.16 In Sacramento, more than 3,900 homes were left vacant by banks in October 2011, alone.17 These vacant properties blight communities, burdening already vulnerable communities struggling to recover from the continued housing crisis.California has been one of the hardest hit states by the foreclosure crisis. Wall Street’s reckless lending practices devastated California with high-cost loans homeowners couldn’t afford, while inflating the housing bubble that reaped record profits for the 1 percent. The consequences of Wall Street greed is that millions of Californians have lost their homes and thousands more continue to struggle with finding quality and affordable housing.
While vacant bank-owned properties litter Sacramento neighborhoods, rental vacancies are in decline, rental prices are up in many areas, and there are 2,734 homeless in Sacramento County.12 In parts of Sacramento rent rates increased by more than 3 percent from 2007 to 2012.13
The housing market strains caused by Wall Street are felt most acutely among low-income individuals and families. Affordable housing shortages for low-income households (those 50 percent below the area median) went from 4.3 million units in 2003 to 6.4 million units in 2009 nationally.14                                    The problem is especially clear in the Sacramento metro area where 54.2% of renters are currently living in unaffordable housing.15
Contrast this very serious housing need with the fact that there have been 1.2 million foreclosures in California since 2008 and it is expected to exceed 2 million by the end of 2012.16 In Sacramento, more than 3,900 homes were left vacant by banks in October 2011, alone.17 These vacant properties blight communities, burdening already vulnerable communities struggling to recover from the continued housing crisis.
Read the full report by AACE.

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