Kevin P. KaneChief Housing Market AnalystEconomic & Market Analysis DivisionSpecial Thanks Randall Goodnight (Ft. Worth)

State of the Nations Housing Markets

Nonfarm Payrolls Annual Average Percentage Change (12-month avg.)

Regional Nonfarm Payrolls Percentage Change 12 months ending September 2011

U.S. Housing Market Conditions: 3Q 2011 Sales market conditions continue to remain soft across the country Year over year home sales prices continued to decline in 3Q2011 (5 straight quarters)

Existing home sales increased 17 percent compared with 3Q2010 (compared with 13% decline in 2Q2011)

Inventories of new homes for sale were down 21 percent from a year ago and down 12 percent for existing homes

Rental market conditions are mixed throughout the country

Apartment absorption is up slightly and the number of multifamily units permitted increased by 25 percent in 3Q2011

Regional Conditions 3Q 2011

National Home Price IndicesBased on Qtr. To Same Qtr. Previous Year

Percentage Change in SF Activity12 Months Ending 9/10 to 9/11

Percentage Change in MF Activity12 Months Ending 9/10 to 9/11

Summary: Year over year job growth occurred during the past 12 months but rate is still very low at 0.8%

Sales Market conditions remain soft. Prices declined but sales increased in 3Q2011.

Rental Market conditions are mixed throughout the nation (generally balanced to tight). Overall, rents are higher and vacancy rates arelower.

Contact Information:

Kevin P. KaneChief Housing Market AnalystOffice of Policy Development and ResearchU.S. Department of Housing & Urban DevelopmentEmail: kevin.p.kane@hud.gov

Regional/Field Economist

3Q2011 U.S. Housing Market Conditionswww.huduser.org

Its goal is to help residents of public housing and participants in the Housing Choice Voucher (HCV) program become self-sufficient through education, training, case management and other supportive services*Families who volunteer to participate in FSS sign a five-year Contract of Participation with the PHA that specifies the steps both the family and the PHA will take to move the family towards economic independence

*Families who volunteer to participate in FSS sign a five-year Contract of Participation with the PHA that specifies the steps both the family and the PHA will take to move the family towards economic independence

*This was a prospective study of the FSS program for families that use HCVThe study was designed to respond to the following research questions:*There were a total of 181 participants from 14 sites included in the tracking study The tracking sites had between 15 and 20 families newly enrolled in FSS during the third and fourth quarters of 2005The case manager interview information was provided annually by case managers assigned to each family. They provided informaiton on *Although the sample of 100 PHAs is representative of all FSS programs, *The average annual income for graduates increased from $19,902 in the first year to $33,390 in their year of graduation while other exiters income only increased from $15,551 to $15,918.

*A multivariate regression analysis of characteristics associated with graduation showed that Participants with a high school diploma at around the time of program enrollment are about twice as likely to graduate as those who do not have a high school diploma or equivalent.Graduates also had more years of schooling than exiters (measured at time of enrollment).Still enrolled participants resemble program graduates in terms of educational attainment.

*Looking at those escrow accounts with a positive balance

The average accrued escrow balance for graduates was about $5,300, more than twice the average escrow account balance for other exiters ($2,140)

Still enrolled participants had positive escrow account balances averaging $3,516

*Before this study, we knew that some FSS graduates derived substantial financial payouts under the program, but that many others failed to graduate or show any other sign of benefiting. *