Homeowner Affordability: Fallen Off the Tripod

18 Pages Posted: 23 Feb 2009

See all articles by Susanne Trimbath

Susanne Trimbath

STP Advisory Services, LLC; Creighton University, Department of Finance and Economics; Bellevue University - College of Business

Juan Montoya

Milken Institute

Date Written: February, 23 2009


There's something about "Affordability" that makes it very popular: Presidents past and present set goals around it. The popularity of this perennial policy goal is based on the feel-good idea that everyone would live in a home that they own if only they could afford it. Owning your own home is declared near and far to be the American Dream. Recently, however, it seems that Americans' aren't all having the same dream. Despite improving conditions of affordability, home sales continue to decline. As income becomes unstable because of mounting job losses, housing falls further out of balance - no change in price or mortgage interest rates will be enough to rebalance the tripod in the next year.

Keywords: Housing, Affordability, Income, Employment, Finance, Homeownership, Real estate, Mortgage

JEL Classification: G00, R21, R31, L85

Suggested Citation

Trimbath, Susanne and Montoya, Juan, Homeowner Affordability: Fallen Off the Tripod (February, 23 2009). Available at SSRN: https://ssrn.com/abstract=1348143 or http://dx.doi.org/10.2139/ssrn.1348143

Susanne Trimbath (Contact Author)

STP Advisory Services, LLC ( email )

PO Box 1252
Bellevue, NE 68005
United States
4029328888 (Phone)

HOME PAGE: http://www.STPAdvisors.com

Creighton University, Department of Finance and Economics ( email )

United States

Bellevue University - College of Business ( email )

United States

Juan Montoya

Milken Institute ( email )

1250 Fourth Street
Santa Monica, CA 90401
United States
310-570-4612 (Phone)

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