Real money. Hey, this is real money. You are the most important part of the show. Tell me whats on your mind by tweeting me eighth ali velsh me ali velshi. Its the american dream, but finding an affordable home is getting harder to do. In a report put out by real estate data company trulia only 14 of the markets are now within reach of middle income buyers. A year ago this was 20 . Only half the houses available in denver are now affordable to a Median Income earner, down from 67 a year ago. Down from twothirds. In atlanta, 72 are now within reach of the middle class. Thats down from 79 a year ago. Predictbly the most affordable market for americas middle class are concentrated in the south and midwest. When we say a share of the market is affordable or within reach of middle class home buyers that means the total Monthly Payments on a home loan are no more than 31 of a metro areas median household income. More than 31 of the Median Income in a given metro area. Metro areas in ohio, akron, toledo, columbus, all of them have markets that are now within reach of between 81 and 86 of local area middle income buyers. Gary, indiana, detroit, michigan, rochester, new york, all of these markets close to 80 of the markets within reach of the middle class buyers. In the south, little rock, arkansas, have 88 and 83 respectively within reach. And just as predictable is this is that the least affordable markets for americas middle class are concentrated on the coast. Besides francisco, los angeles has only 31 of affordabilitying. San diego, 39 . San jose, 4 . New york city metro area has 28 of homes within reach of local area middle income buyers. Fairfield, connecticut, 38 . All the way out in honolulu, over here, we put it here for convenience, only 47 of homes are within reach. Yesterdayjed, we saw prices go up. Over the last year weve watched Interest Rates go up. This beautiful thing we had, the one good thing about the recession is that homes became more affordable for americans, and now thats moving in the other direction. Were seeing affordability worsen everywhere in the country thats because wages are sluggish. Mortgage rates are moving off. Last year Mortgage Rates hit an alltime low in the low 3s. Now were in the low 4s. Rates have come down, but theyre still up from that historic low. Higher prices and higher rates means afford ability is getting worse. Its getting harder fo to buy a home. You calculate the Monthly Payment and affordable is 31 less of the Median Income in the given area. Youre only comparing available homes in the metropolitan area to Median Incomes in that same metro area. Thats right. Its used to determine whether a borrower can afford the home that theyre looking at. Remember that incomes differ hugely across different markets. In places like San Francisco and san jose have higher Median Incomes than in the southwest. Even though incomes are higher, affordability is worse. Thats because home prices and incomes are bigger differences. For those in San Francisco and los angeles, we got the short end of the stick on that one. What are the implications. Lets say that the patterns continue, home price gas up. What are the implications of having these markets where the spread between the median price of a house and the meetan income are so great . The first thing is that we see more renters. In these least affordable markets the homeownership rate tends to be lower. They tend to live in smaller units. Whereas the typical where there are more renters, people double up. They may have roommates, they may live with their parents. The futur failure to get more household formation i love how you use economist speak. Household formation. We dont want the number of houses to get too far ahead of household formation then you of a lot of vacant homes. What happened in the recession lots of young people moved back in with their parents or they never left. So we formed fewer new households during those years than normal. We didnt need as much construction, so construction suffered as well. Were now at a point in the recovery where household formation is picking up. Young people are starting to go back to work, which means more are going to move out of their parents homes and out of roommate situations. Thats creating demand, but that demand is on the rental side. Theyll move out from of parents basement to a rental. Here in manhattan there is a lot of construction given that there is not a lot of space to build stuff. A lot of building are exclusiv exclusively rental buildings. Theyre starting with rental buildings, and the nonrental stock is nowhere near affordable. It doesnt come close to Median Income. Its all at the high end. Its a matter of supply and demand. Rents and home prices are high in places like new york, but the supply that is coming online doesnt fit the middle class. Right now we are seeing a construction boom in new york, San Francisco, boston, big cities that typically dont have a lot of new construction. As you said most of this is big buildings, most of it is rentals. But what effects affordability is construction over the long term. And over the long term places like San Francisco and new york and boston build very little housing. They build less housing than most other mark markets in the country. If you look at where housing is built in parts of texas, parts of the south. Every place that builds a lot of housing is affordable. If you build enough housing to keep up with demand prices dont rise as fast. No one is ever looking at new york and San Francisco saying these cities are doomed, but are they doomed to be the home of rich people . Without more construction it gets harder and harder for the middle class to afford to live there. Places are expensive if there is Strong Demand because theyre pleasant and desirable places to live or places where you can find great jobs. And they are places with tight supply. Strong demand, tight supply, thats the recipe for a longterm affordability crisis. Thats what we see in places like San Francisco and new york. Jed, good to see you as always. Thank you for joining us with your great statistics and analysis. Yesterday from trulia. Putting a roof over your head does not come cheap, and for some people it may get worse. Were fighting for everybody who lives here, and were fighting for everybody who has affordable middle class housing in new york city. Plus how america feeds cuba, literally. That story and more as rea real money continues. Keep it right here. If you live in new york this will be familiar to you. If you are not from new york this is just going to be interesting. Peter Cooper Village is manhattans largest apartment complex, and that is saying something. But its significance goes well beyond its size. It has become a powerful symbol of Affordable Housing for middle class americans. Whether it will stay affordable is in doubt. Analysts are seeing the first signs of potential sell of the property, and its not just about them but about the middle class. We already have 32 regio 32 registe registerants. Gathering up for a fight at stake, an 80acre middle class apartment complex of more than 11,000 apartments along manhattans river that is home to 25,000 residents. But with fears of a potential sale, steinberg and others worry that the Affordable Housing that has allowed them to live here for decades will be wiped out. We are fighting for everybody who has Affordable Housing in new york city. Steinberg payed 1300 in monthly rent. The hallmark which opened in 1947 for world war ii veterans. It was deviled by metlife with the citys help. Owners have changed hands over the years, deregulating rent for some units, and analysts say deregulating even more rents will be a priority. I think its a certainty. Its just a question of how quickly they can do so. Reporter back during the real estate boon, the buyers ran out of money and the lenders took control. The developers partnered in that deal that failed. The Investment Firm is now in control of the apartment. It did not respond to a question to comment on the first step of a potential sell. In the meantime reports Fortress Investment group is preparing a bid of 4. 7. Billion dollars. One urban Development Expert said stakes are high for peter Cooper Village. It would be catastrophic. I dont want to sound dramatic but it is dramatic. Weve been losing middle class housing for several years. As for designberg and other tenants their hopes hinge on mayor bill de blasios push for Affordable Housing. This is the poster child. Mary snow, al jazeera. The tenants say what is happening in their part of the town is far beyond the certain oconcern of affordability of housing in america. Are they right . Professor, good to see you. Thank you for being with us. Thank you. That woman who we just heard said it could be catastrophic for new york if these apartments become less affordable. Is she dramatic . Or is she on to something. No, i dont think it is. Some areas have become very unaffordable. This was initially for returning veterans and younger people. If a younger person moves into new york theyll be forced to move away from downtown or theyll double or triple up. Its a very difficult situation, and theres been very, very little Affordable Housing generated by the federal government or by local governments for decades. It is 25,000 residents. High, high density occupancy for new york, and generally speaking that is usually related to low Income Housing. Tell me about middle class housing. New york has very little middle class housing. New york had tremendous housing shortage after world war ii, so rent stabilization came in and programs came forward to generate middle Income Housing for firefighters and teachers and others who live here. And that was really set up 40, 50, 60 years ago is now at risk. Affordable housing loss is very real. And this same thing is carried out with smaller complexes. Over 40 of people in new york who rent pay more than half their income for rent. This is not true of many parts of the country. You heard jed say the consequence means people dont buy. They become renters. You get a society of renters. What is the consequence of this . Why is it when they built petering cooper, it was important to bring middle class people into the city, now they say let it become market rent. When it was originally built there was some government money on the table to help it being built. But with the various capitol Financial Firms involved with peter cooper in 2006 when it was initially sold they are not in it to supply Affordable Housing. Theyre looking to make a profit. If you can represent that womans unit that she pace 1,300 for twice that, theyll do it. Theyll find ways to get those people out. Even if she holds on. Shes 67yearold woman and retired, thats not atypical. Before when it was developed it was younger people. Shell probably be able to hold on to her rentstabilization, but the person who moves in after her probably will not. So matter what there will be a continued decline of subsidize housing in new york and many other parts of the country unless there is money put on the table so little appetite for that in our economy. I know, i know, i know. What is the consequence in chicago, boston, new york, of diminishing stock of Affordable Housing. I think in San Francisco there has been Something Like a riot around the google and facebook campuses. There is tension among young people who come into new york, and they dont know what to do. They move to what used to be considered slums. Which has its own set of problems because those places are gentry flying, which we often think of good, but renters over there dont think good. Theyre pricing those people out of their own areas. Exactly. I have worked in a number of different situations where there was a displacement going on, and i would work generally for the tenants. What you would find is that the development cant go forward unless they displace the poor. Thank you for being with us. Andrew is a sociologist professor and an expert on these things from queens coming. Weve been following three families across america. One of them is facing a sudden and unexpected challenge. Later, a spaceship that can land like a helicopter. Keep it right here. Tonight on Al Jazeera America, at 8, primetime news, what concerns you the most . Bringing you the latest headlines from around the world you can really feel the tension here. Then at 9, its america tonight in depth reporting from coast to coast would it be dangerous for you go about three blocks that way . I wouldnt go by myself. At at 10, consider this its the latest push for reform. Antonio mora brings you unique perspectives on the news of the day tonight starting at 8, only on Al Jazeera America everybody was counting on this april thought to warm up the economy but numbers indicate the economy is going to need more time to recover. Lets start with consumer spending. Consumers took a breathe center april after going on a spending spree in march. Spending fell onetenth of 1 last month. Personal income row rose by threetenths but the advance of wages and salaries was the weakest of the year. Adding to the buzz kill the university of michigans monthly gauge of Consumer Sentiment came in well below estimates for may. Time for an update on one of the three families were following as part of our ongoing series of americas middle class rebuilding the dream. We check back in with the boland family. A singe mother and owner of a company i. She recently was hurt and does not have insurance. I dont think people realize how physical retail is. There is a lot of lifting boxes and unpacking things, and because i had hip surgery on the right side, now the left side is showing some signs of that. I timed the hip surgery so i could get through christmas and get through the move. As they put me under the told the doctor, im going to work tomorrow. He said, no youre not. I went to work the di the day after, and i had to. It was mothers day week. My 5,000 rent was due. I cant afford Health Insurance. I went to a clinic where they use your income tax and put you on a sliding scale. Then they refer to you a specialist. Because of my pay scale i paid 10 . I went in on december 12th because my entire left side of my body was numb and tingling. I thought i was having a heart attack and stroke. I was under a lot of pressure at christmas. During christmastime i work seven days a week. I went down to the clinic, and they did an ekg. Im just going to take the penalty this year, and open enrollment starts again in november. And im hoping that the store by november will be able to provide me with being able to pay the insurance each month. Well stay with jody bowlin. The average rate for Unemployment Rate is the lowest uninsured rate since gallop began tracking it in 2008. Next week well get an update with the sabino family, they do have Health Insurance but their continued financial strains have sent them back into marriage counseling. Just when you think it cant get more out of control, you can always count on someone to set a new standard of crazy. This time its steve balmer, the former microsoft ceo. Hes offering 2 billion for the los angeles clippers. Its three times the value according to forbes, and when balmer ran microsoft, he bought skype for three times what ebay would pay for it. And Donald Sterling said he may sue for termination of his ownership. Well tell you how were doing business with havana despite the embargo. Ill tell you tiny toys that might help. Dont go away. Tomorrow on tech know. We probably ought to put the goggles on now. Visionary technology. These goggles will help surgeons detect tumors that are less than one millimeter in size. Life changing. These have the potential to revolutionize the way that we approach patients with mini cancers. Tech know, every saturday go where science meets humanity. This is some of the best driving ive every done, even though i cant see. Tech know. Were here in the vortex. Tomorrow, 7 30 eastern. Only on Al Jazeera America. You. The head of the u. N. Chamber of congress visited cuba and urged that country to adopt Economic Reforms and more marketoriented policies. The chamber has long opposed the trade i a embargo with cuba. Many believe they are shut out of the market, but thats simply not the case. [ music ] reporter for Many Americans this is the picture of cuba. A rhythminfused culture known for its classic cars and cigars, mixed with a communist style government reminiscent of a bygone area. But with an embargo that dates back to the eisenhower days, the message is clear cuba is for bi forbidden. There is a lot of interaction between the u. S. And cuba. Since 2000, for 15 years nearly the u. S. Has been free to sell Agricultural Commodities to cuba, and has. Less in recent years but that trade still goes on. Reporter last year exports to cuba making the u. S. The islands largest source of imported food. That means the beans and chicken eaten in places like havana come from ranchers and farmers in nebraska. Cargill is probably the biggest exporter, soybean, corn. Tysons chicken. Cuba buys a lot of chicken pieces. Last year the u. S. Sold 144 million in frozen chicken, an agri business in states like illinois, nebraska have sold