Frightful Forecast for Region's Housing Market

May 30, 2007 - 3:48pm

Adam Tuss, WTOP Radio

WASHINGTON -- The forecast for the future of the region's housing market is in -- and it looks outrageous.

If current trends continue, by 2057, the average home in the D.C. area is likely to cost more than $14 million, says Stephen Fuller, director of the Center for Regional Analysis at George Mason University's School of Public Policy.

Even more frightening is the fact that the numbers are based on the current market, taking into account the trend of home prices generally doubling every 10 years and growing by about 7.2 percent annually.

"It will take more than 11 times the average annual income to afford a home," Fuller says. "This will be a totally unaffordable region."

Fuller believes the best way to combat the issue is to develop better policies that affect home prices, and gain a better understanding of affordable housing.

If that doesn't happen, the housing market may get out of hand.

"This region will mirror what we think of Los Angeles today -- being largely unaffordable," Fuller says. "But it will be worse than Los Angeles is today."

Adam Tuss, WTOP Radio

WASHINGTON -- The forecast for the future of the region's housing market is in -- and it looks outrageous.

"It will take more than 11 times the average annual income to afford a home," Fuller says. "This will be a totally unaffordable region."

Fuller believes the best way to combat the issue is to develop better policies that affect home prices, and gain a better understanding of affordable housing.

If that doesn't happen, the housing market may get out of hand.

"This region will mirror what we think of Los Angeles today -- being largely unaffordable," Fuller says. "But it will be worse than Los Angeles is today."

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