Housing Tenure and Affordability from 1970 to 1990: Progress, Stasis, or Retreat?

Abstract

Long term trends measured over 15 to 20 years reveal cyclical phases of economic growth and stagnation which are often tied to major demographic trends. These long waves of growth and decline are also apparent in housing. The post-war period of expansion and improvement in housing consumption-stimulated by consistent, long-term growth in incomes-lasted until approximately 1975. This cycle of growth generated major improvements in homeownership and housing affordability. During the next two decades, economic growth stalled, homeownership declined, and housing affordability emerged as a major problem. At the same time, housing markets absorbed an unprecedented expansion in demand as the baby-boom matured. There were also major shifts in housing demand related to changes in life-styles reflected in proportionately fewer married-couple families, more female-headed families, and more single-person households.

Although it is premature to suggest that another long-term housing cycle is beginning, the recent shift in public attention to the domestic agenda suggests growing pressure for a change in direction. This paper assesses the long-term trends in the nation’s housing established over the past 15 to 20 years. Using data from the Current Population Survey and the American Housing Survey, as well as other sources, major trends are identified and analyzed for homeownership and affordability.

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Notes on contributors

C. Theodore Koebel

C Theodore Koebel is Director of the Center for Housing Research and Associate Professor of Housing and Urban Planning, Virginia Polytechnic Institute and State University, Blacksburg.

Kristina E. Zappettini

Kristina E Zappettini is Associate Faculty member at California State University - Chico.