Welcome to today’s real estate news roundup! In the housing market predictions for 2024, Forbes Advisor discusses the challenges of rising mortgage rates and affordability, while Fannie Mae forecasts an increase in home sales transactions with a slower rise in prices. California has experienced a surge in the construction of Accessory Dwelling Units (ADUs), offering potential solutions to the housing shortage. Colorado takes an innovative approach to expand housing affordability through new legislation, promoting transit-oriented development and increasing housing supply. Additionally, the City of Santa Ana issues permits for a new residential townhome community, providing over 50 homeownership opportunities. Explore the full articles below to stay informed about the latest developments in the real estate market.
Housing Market Predictions For 2024: When Will Home Prices Be Affordable Again? – Forbes Advisor
The spring home-buying season has yet to spring to life due to an unexpected rise in mortgage rates, exacerbating affordability challenges. Existing home sales have stagnated, but newly built home sales are thriving. The housing market is on the verge of a colossal shift with a $418 million real estate broker commissions settlement and new rules mandating significant changes to the industry’s buying and selling model. Despite affordability hurdles, Fannie Mae forecasts an increase in home sales transactions compared to last year, with a slower increase in home prices. U.S. home prices continue to rise, posting an annual 6.4% gain in February. For a housing recovery to occur, inventories of homes for sale need to increase considerably, and mortgage rates need to cool off. Experts predict a better housing market in 2024 as interest rates start to settle around 6% or even lower. To learn more about the housing market predictions for 2024, read the full article on Forbes Advisor.
One of every 5 new homes built in California last year was an ADU – Daily News
In recent years, California has experienced a surge in the construction of Accessory Dwelling Units (ADUs), also known as mother-in-law units or backyard cottages. According to state data released in 2023, ADUs accounted for one out of every five new homes built in the state, a significant increase from just three years prior when they represented only one in every 10 new units.
The Bradley family in Berkeley is among those embracing the ADU trend. After their existing home grew with an addition in 2009, they decided to construct a 1,000-square-foot, two-story ADU on their lot for Mike’s daughter, Kelly. The total units on their 8,666-square-foot lot now amount to three, offering a family compound that fosters togetherness.
Legislation passed by the California state Legislature since 2017 has played a crucial role in facilitating ADU construction. Bills like AB 68 and AB 881 have streamlined the approval process, reduced barriers around lot size and parking requirements, and allowed landlords to build ADUs on rental properties. This legislative support has contributed to the growth of ADUs throughout the state, particularly in areas like Berkeley and San Jose where larger lots are available.
While ADUs offer potential rental income and additional square footage, their impact on the housing shortage varies. Some homeowners build ADUs for personal use or to generate income through platforms like Airbnb. However, ADUs alone cannot solve California’s housing shortage, and there is a need for diverse housing options to meet the demand.
To learn more about the rise of ADUs in California, read the full article here.
Colorado takes a new — and likely more effective — approach to the housing crisis • Colorado Newsline
In recent years, Colorado has faced a housing crisis with skyrocketing home prices and various factors contributing to unaffordability. However, new legislation passed by Colorado’s General Assembly is set to make the state a national leader in expanding housing affordability.
The new laws require local governments to plan and zone for more apartments and condominiums near transit stations, as well as allow the construction of accessory dwelling units (ADUs) in large cities and towns. These changes aim to increase housing supply, diversity, and affordability by reducing costs for developers.
Colorado’s transit-oriented development law is particularly noteworthy. It mandates that 31 cities plan and zone for housing at an average density of 40 dwelling units per acre within a half-mile of fixed-rail transit stations or high-frequency bus corridors. This approach harnesses market forces and allows for more profitable mid-rise projects, which can be built with cost-effective materials and accommodate more units.
The new legislation is expected to create tens of thousands of housing units, helping to address Colorado’s significant housing shortage. By promoting transit-oriented development, the state aims to improve air quality, reduce carbon emissions, and provide residents with convenient access to public transportation.
To learn more about Colorado’s innovative approach to the housing crisis, read the full article here.
City of Santa Ana issues permits for new residential townhome community 717 Lyon – City of Santa Ana
The City of Santa Ana Planning and Building Agency has issued permits for the construction of the 717 Lyon townhome development. Located at 571 S. Lyon St., this new residential community will offer over 50 homeownership opportunities in Santa Ana. Developed by Toll Brothers, a nationally recognized company known for their high-quality residential projects, the three-story townhouse units will include both market-rate and affordable housing options for low-income households. The project is expected to be completed by April 2026, showcasing the city’s commitment to attracting investments and creating much-needed new housing. For more information on 717 Lyon, visit the Toll Brothers website.