Advanced practice nurse role in quality improvement inclusive of shaping health policy. Integrate project management strategies and skills needed to be successful in managing a quality initiative.Utilize scientific rigor in….
Great Recession and Issues of Housing in USA
Great Recession and Issues of Housing in USA. As the housing market strive to recover from the downfall experienced during the Great Recession, the cost of housing have been almost reached levels affordable to both high and low level earners. However there have been two major problems is hindering the re-entry of low and moderate income households into the housing market as home owners. Since 2012, individuals and institutional investors who have lots of wealth and purchasing power have been buying households in large quantities. This has posed a threat to the low and moderate income households since they lack the same financial resources and, therefore, cannot compete with those investors.
Most of these investors purchase the households available in bulk holding them off the market (Chiarenza, 2013). Others convert them into rental households for single family; a trend that seems to be doing well in the housing industry. Although some of the low and moderate income earners may be able to purchase some of these houses, their payment plan may be over a period of time. Thus sellers prefer high income earners since they do all their transaction at once and pay the entire amount needed for the house.
Sometimes these low and moderate income households may come across affordable homes but their possibility to be given a mortgage loan may be impossible. This is due to the tightening of the lending standards since the recession (Baqutaya, Ariffin, & Raji, 2016). According to study done by the Centers for Community Capital and Center for Responsible Lending, by setting the minimum FICO score of the borrower as 690, most of the low and moderate income households would not qualify for a loan (Chiarenza, 2013).
Therefore, This leaves only the high income earners as the only ones with the ability to purchase and own households. The issue of the housing market has been the major reason why many people have not had the chance to find affordable households or own one.
On the other hand other minor factors such demographics and the increase in the cost of building households have played a significant part as to why many people stiff find it difficult in acquiring a household (Chiarenza, 2013). Demographics which goes hand in hand with the market shifting, results to the dominance of high income earners in the housing industry. Some, just like investors, purchase households in bulk taking the off the market. Other high income earners decide to settle in the household left behind in the market which the low income earners would have considered purchasing. Increase in the cost of developing households causes a direct increase in the price of these households. Low income earners are unable to afford most of these houses leaving them to the wealth in the society.