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10 Things Retirees Need to Know About Housing

By U.S. News & World Report

For most retirees, your house is your biggest and most valuable asset. You might be planning to retire in place, sell it to move to a retirement mecca, use it to produce some much-needed income or leave it to your kids as part of an estate. But your home’s value can fluctuate over time. Here are ten things to know about the current housing market, according to reports from the Joint Center for Housing Studies at Harvard University and the National Association of Realtors.

1. Home prices are up. According to the National Association of Realtors, U.S. home resales rose in May 2017 to 5.62 million, the third highest level in a year. The median home price has reached an all-time high of $252,800, or 5.8 percent better than a year ago.

[See: 10 Ways to Reduce Your Housing Costs in Retirement.]

2. Some markets are hotter than others. However, according to the study from Harvard University, home price appreciation over the longer term has been unevenly distributed across the country. One in six of the nation’s markets — mostly on the east and west coasts — has experienced price appreciation of 40 percent or more since 2000. But almost a third of the markets — mostly in the midwest and the interior south — have shown declines.

3. Recession recovery. While home prices on average have finally regained their pre-recession peak in nominal terms, in real, inflation-adjusted terms they are still lagging behind.

4. A lack of inventory. While the number of homes for sale is up from recent lows, they are still down some 8 percent from a year ago. So it is still a seller’s market. Housing inventory has dropped for 24 straight months as measured on an annual basis.

5. New construction. New home construction rose 5.6 percent last year to 1.17 million units, and single-family homes did even better, growing by 9.4 percent. However, according to the National Association of Realtors, construction has sagged more recently, falling for a third straight month in May 2017 to its lowest level in eight months.

[See: 10 Tips for Finding a Great Place to Retire.]

6. Older units. Over the longer term, residential construction is still soft. According to the Harvard study, residential construction in the past decade has added fewer units to the housing stock than during any ten-year period going back to the 1960s.

7. Fewer starter homes. Construction of multifamily housing is higher now than in the 1990s. But construction of smaller “starter” homes is particularly anemic. The share of homes being built under 1,800 square feet fell from 37 percent of all completions in 1999 to just 21 percent in 2015.

8. A slowdown in hot rental markets. Rents have been rising faster than inflation. But increases from 2016 to 2017 are smaller than they were in 2014 to 2015. In a few select markets like Houston, San Francisco and New York rents have actually been falling slightly from recent highs.

9. A decline in home ownership. The number of owner-occupied households grew by more than 280,000 in 2016. Still, the home ownership rate has fallen to 63.4 percent, marking the 12th consecutive year of declines. Home ownership among African Americans has gone down the most, from 49.7 percent in 2004 to 42.2 percent in 2016.

[Read: Is Retirement a Good Time to Sell Your House?]

10. Generational differences. The millennial generation — the 83 million people born between 1982 and 2000, according to the U.S. Census Bureau — created 7.6 million new households between 2010 and 2015. But the share of millennials living with parents or grandparents was still at an all-time high of 35.6 percent in 2015. By the year 2035, according to the Harvard projections, some 50 million households — or one out of every three — will be headed by older adults. That will greatly increase the demand for units meeting the needs of aging adults. So you might as well install those bathroom grab bars now to beat the rush.

Tom Sightings is the author of “You Only Retire Once” and blogs at Sightings at 60.

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10 Things Retirees Need to Know About Housing originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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