According to the latest HOI readings,  56.1% of all new and existing homes that were sold during the third quarter were affordable to families earning the national median income of $61,500, far higher than the 40.4% of families who could afford homes at the peak of the housing boom.

“If there is a silver lining to this crisis, it would be that some housing markets have become more affordable with a larger inventory to choose from,” said NAHB Chairman Sandy Dunn. “But this is undeniably a crisis and Congress needs to act on a housing stimulus to get the market moving again.”

What is becoming more obvious to a lot of people is how much the housing industry impacts so many other industries. Fewer homes built or remodeled means fewer jobs for title professionals, loan officers, real estate agents, framers, carpenters, roofers, landscapers and dozens of other professions directly connected to the construction and sale of housing.

It also means less lumber is purchased, so lumber yards and loggers suffer. It means fewer building materials are transported across the state or country, so truck drivers and truck stop owners suffer. It means fewer marketing dollars are spent, so those who work for ad agencies, newspapers, TV and radio suffer.

The housing slowdown also affects government. Fewer homes mean fewer development approvals and permits are being sought, which means engineers, planners, architects and city and county staff in the planning and building departments suffer. Far less revenue coming in to the economy means we all suffer.

As one local elected official recently said, “I have long felt that the building of homes is one of the most effective job development tools that exists. It’s not only the labor to construct the home, but also the labor to manufacture all of the components, such as carpet, windows, appliances and so forth. It is great for the economy, and provides one of the most highly prized commodities there is — a home.”

The National Association of Home Builders recently released an annual study that estimates the direct economic impact of new residential and remodeling construction, including the number of jobs and the government revenues generated. In 2008, NAHB estimates that:

Construction of 1,000 new single-family homes creates 3,049 jobs and generates more than $89 million in tax and other revenues for federal, state and local governments.

Construction of 1,000 new multifamily rental units creates 1,155 jobs and generates more than $33 million in tax and other government revenues.

$100 million worth of residential remodeling activity creates 1,109 jobs and generates more than $30 million in tax and other government revenues.

Read more here….

The percentage of new homes with 2.5 or more baths in 2006 was 59 percent, compared to just 22 percent in 1976. Thirty-nine percent of new homes built today have at least four bedrooms, compared to just 23 percent for those built in 1976. Today, nearly 90 percent of all new homes have central air conditioning – vs. less than 50 percent in 1976.

More than 80 percent of modern homes have at least a two-car garage, up from 59 percent in 1976. And today’s homes are built for the wireless age, with high-speed data access, modular wiring systems and multiple telephone lines.

Hennebery Eddy’s parking garage for the historic First Presbyterian Church in downtown Portland. Completed in 2007, the 170-spot structure burrows three levels below grade adjacent to the church, and its intensive green roof allows partial public access.

When church members purchased the neglected four-story building that sits where the garage is located today, they had envisioned planting a lawn on the roof. But the community didn’t have green design in mind originally. The structure was necessary for older congregants and families to participate in various church services, and the grass merely a placeholder for above-ground building expansion.

Eddy says the client began thinking greener, because his firm convinced the church that those features dovetail perfectly with its concern for “practical, thoughtful solutions that last long, are efficient, and don’t cost a lot to operate.” Materials are durable, ceilings painted white reflect light and reduce the number of fluorescent lamps installed by approximately 15 percent, a second-generation elevator saves energy, and ventilation turns on only when carbon monoxide sensors trip the switch.

The garden itself is designed to highlight the rose window that had been hidden by the four-story neighbor. Lawns, which the church daycare program uses, are framed by walking paths and boxwood, and furniture nestled into the garden’s sawtooth edge activates the public sidewalk. Hardscaping is graded so that stormwater drains toward planted spaces, although heavy precipitation travels to flow-through planters and stormwater vaults.

“Design the experience for the people who are going to be using it, and design the way it fits into the city,” Eddy says. “Then make the cars fit in the most efficient way you possibly can.”

Dustin Micheletti said he and his wife Kesia moved to Oregon from California partially because of the lower housing prices. Still, he said would not have been able to afford a home had it not been for a program that will save the couple more than $150 in property taxes per month.

The program is the Single Family New Construction Tax Abatement program. Administered by the Portland Development Commission (PDC), it was designed to encourage home ownership in distressed parts of the city. The neighborhoods eligible for the program, called “Homebuyer Opportunity Areas,” are located throughout north, northeast and southeast Portland. Builders can apply to the PDC to have their new homes or condominiums qualify for the program, and buyers must do the same.

Generally speaking, the sales price of the home must be no more than $275,000, and the buyer’s annual income must be no more than $67,500. If all qualifications are met, the buyer pays property taxes only on the land the building sits on, not the building itself — a considerable savings, since the building is typically valued much higher than the land.

Ann Johnson, PDC loan production supervisor, said those who participate in the program usually pay a third or less of the normal property tax on a detached single family home. The tax abatement lasts for 10 years after purchase. After that the homeowner begins paying taxes on both the land and the building.

The PDC also offers tax abatement programs for certain multifamily developments along transit corridors, and for low-income housing held by charitable, nonprofit organizations.

Read the rest of the story here.  Learn more about the Portland Development Commission’s tax abatement programs here.

After years of writing a check to a landlord each month, Adrienne Livingston decided to invest in herself instead. Last fall she bought a new two-bedroom condominium a couple of blocks from Clackamas Town Center.

“I didn’t want to pay another person’s mortgage anymore,” she said.

It’s a decision that a growing number of single women are making. One-fourth of all first-time homebuyers were single women, according to the National Association of Realtors’ 2007 Profile of Home Buyers and Sellers. Single women make up more than one-third of the growth in real estate ownership since 1994.

Even today’s volatile economy and uncertain housing market aren’t deterring women from having a goal of home ownership, said Michelle Puggarana, program manager for the Portland Housing Center, a nonprofit organization that helps first-time home buyers.

Single women come to the closing table with a variety of life experiences. Some have never been married; some are divorced or widowed. Some live alone, some live with children, friends or partners. But they share some common preferences in housing. According to the NAR, single women buyers tend to:

• Prefer two bedrooms or more
• Choose resales over new construction
• Buy in city rather than suburban areas
• Be unwilling to compromise on location or quality of neighborhood
• Prefer condos or townhomes with well-run homeowners’ associations
• Desire security and/or gated access
• Want proximity to stores, shopping and fitness centers

Read more….

Education: Bachelor’s degrees, Did not complete college
Employment: Work in business and financial occupations, Work in computer or mathematical occupations, Work in management-level occupations, Work in office and administrative support occupations, Work in sales and related occupations
People & Culture: Born in the Midwest, Retirees, Wealthy retirees.

The main types of people are…

Rat Racers - Dual-income suburban families. These married couples with children lead very busy lives, with most bringing in two paychecks per household. Education level varies from high school to college.
Affluent DINKs - High-income, kid-free couples living in the suburbs. Middle-age Dual Income No Kids couple bringing in two attractive incomes. Most are highly educated and are employed in management professions. A high proportion are homeowners.
Self-sufficient Seniors - Suburban seniors who live alone. More than 40% either live alone or live with non-relatives. Some are homeowners. Education level varies from high school or lower to college.

The National Confectioners Association estimate 20 million pounds of candy corn are sold each year.

Mayhem in the credit, stock and housing markets may look like bad news, but it actually presents some great opportunities for young adults.

The turmoil is bringing prices down to levels that might afford them an economic toehold and, perhaps, a house. By buying low, young people may decide to start a decades-long investing habit. They can take their medicine early and flourish later.

However, serious challenges await the generation that will be asked to repay the loans that the federal government is taking out now. College seniors are graduating into a recession that economists predict will last for a year or longer, and jobs are hard to come by. Benefits like health insurance and 401(k) plans are even scarcer.

If there is one word that best describes how twentysomethings can navigate these waters it is “invest.” Invest, invest, invest. Put money into retirement accounts and the stock market. Build a down payment and get into the housing market. Invest in yourself by continuing to add skills and knowledge. It’s hard to invest all over the place at once, especially if you’re earning a lousy salary, but it will all bear fruit.

It is good to take a long-term view. Everything you do now may seem small, but it will change where you are when you turn 30, 40 and 50.

Here are some specific ways that young adults can make the most of the current mess.

• Invest automatically. If your company has a 401(k) plan, participate to the fullest amount you are permitted. If it doesn’t, create your own automatic retirement savings plan by opening a Roth Individual Retirement Account (IRA) and authorizing a set amount to be deducted from your checking account every month. You won’t miss the money, and down the road you’ll be happy you have it.

• Put that money in the stock market. Recoveries always come after a fall, and they often move quickly. The market crashes of 2008 allow you the opportunity to buy in at low prices. You don’t have to learn to pick stocks; simply find a low-fee, broadly-based index fund from a no-load mutual fund company such as Fidelity Investments or Vanguard Investments and you’ll participate in that recovery.

• Create a savings account and stash something in it each time you get paid. Consider this your down payment/grad school/new car/wedding account. Keep it in the same bank as your checking account so you can easily transfer money into it.

• Start building your career, even if you don’t have a good job. Start networking in your field by joining a professional association and going to meetings. Take extra classes or learn skills on your own that will give you an edge over other job candidates. Apprentice yourself to a mentor.

• Build a solid credit profile. If you don’t have a credit card, get one. If you have one, make sure to make payments on time every month. Use the card only for items you can afford to pay in full at the end of the month, or for true emergencies. Check annualcreditreport.com to see your credit profile.

• Buy your own health insurance, if you don’t get it at work. Even a broken leg can wipe you out if you’re living hand to mouth. You’ll get better care when you do need it. And health insurance is typically cheap for young people. Shop at ehealthinsurance.com.

• Get real estate savvy. This may not be the best time to buy a house, but it is a good time, and that’s likely to last for a while. Start scouting neighborhoods and then use mortgage calculators to determine what you can afford.

• Get money savvy. If you start in your 20s, you’ll still be behind Warren Buffett, who was investing in his teens. But you could become a financial whiz by the time you’re 35, with plenty of time left to put that expertise to use. Start slow and learn a little bit more all the time.

• Defer gratification. You may feel like you’ve already delayed ‘real life’ and grown-up things long enough. But a few more years of living with student-caliber furniture, an older car, fewer restaurant meals and Netflix instead of movie theaters will pay off down the road.

• Get help. Even tightening your belt may not leave you enough cash to invest in a house, a career and a retirement all at the same time. But presented with those worthy causes, your parents or grandparents may be able and willing to help a bit.