NJ Faces Shortage of over 200,000 Available Affordable Homes
A new National Low Income Housing Coalition (NLIHC) analysis of Home Mortgage Disclosure Act (HMDA) data finds that only 4.6% of mortgages issued nationwide between 2011 and 2013 were larger than $500,000.
The United for Homes Campaign proposes lowering the portion of a mortgage for which the interest can be deducted from $1 million to $500,000.
The analysis includes state maps illustrating the percentage of mortgages issued for more than $500,000, by county. In almost 95% of counties, these mortgages accounted for fewer than 3% of all mortgages issued. The HMDA analysis covers both government-insured and conventional loans for home purchase or refinancing, and is restricted to owner-occupied properties that are one-to-four family or manufactured housing secured with a first lien.
In New Jersey, only 6.9% of mortgages in New Jersey from 2011-2013 were over $500,000 (ranging from 0.1% to 14.0% by county).
The United for Homes Campaign proposal would also convert mortgage interest deduction to a 15% non-refundable tax credit. People who borrow more than $500,000 would still receive a tax credit on the first $500,000 of the mortgage. This reform would provide a tax break to 16 million additional homeowners who currently do not itemize deductions for their tax returns.
The reform would also create almost $230 billion of additional revenue over ten years that the campaign proposes be dedicated funding for the National Housing Trust Fund.
Currently, there is a shortage of 210,481 units affordable and available to the lowest income renters in New Jersey.
Click here for New Jersey’s county by county map.
Click here for the full list of state maps.