Americans Struggle to Afford Housing

An annual income of about $85,000 is needed to afford median-priced homes; salaries have not seen modest gains, according to a study.

CHICAGO (Reuters) -- U.S. home prices may have dipped over the past year, but many American workers would still struggle to afford a median-priced home in major cities, a new study said Wednesday.

Cast Your Vote

"American workers are really not gaining ground and they're so far behind in the first place," said Barbara Lipman, research director for the nonprofit Center for Housing Policy, which conducted the study.

While the median home price in the 202 largest metropolitan areas declined 2 percent from a year ago to $248,000 in the third quarter of 2006, mortgage rates rose enough over the year that homes actually became less affordable as pay did not keep pace.

"The real story is what happened to salaries," Lipman said. "Lower-paid occupations -- such as in retail, or home health workers - their salaries went up only about 3 percent."

The study found an annual income of nearly $85,000 was needed to afford the median-priced U.S. home.

In the New York metropolitan area, a $500,000 median-priced home required a $171,000 annual salary. The median-priced home in San Francisco, the most expensive U.S. market, was $759,000, requiring income of $260,000. In less-expensive Chicago, the median-priced home cost $254,000, requiring an $87,000 salary.

On the opposite end of the spectrum, Mansfield, Ohio, homes cost a median $85,000, requiring $29,118 in income.

The study assumed home buyers needed a 10 percent down payment and could afford to pay 28 percent of their income on mortgage payments, property taxes and home insurance.

In reality, many households expend a much higher percentage of their incomes on mortgage payments, Lipman said. To afford that, consumers cut other expenses such as for health care and transportation, she said, citing research showing unaffordable housing is the major reason families lack health insurance.

Other ways families cope with high housing expenses is to work longer hours or extra jobs, or by crowding in more income producers, she said.

An October 2006 survey by the group found families who seek to buy less-expensive homes in further-out suburbs -- adding to urban sprawl -- pay so much more for transit that it eliminates the savings.

While home prices range widely across the country, wages for low-wage jobs -- from teachers to janitors -- are about the same no matter where they are located, Lipman said.

The report cited housing aid programs offered by some big-city hospitals that have plenty of modestly-paid workers.

"For the low- to moderate-income individuals that we're talking about, they're not going to be helped by marginal declines in home prices," Lipman said. "The only way to address the problem is to create more affordable units [homes] -- which may mean higher density units, townhouses and condos."

 

 

Way forward for a stronger, tourist-friendly nation

• Published: 17/09/2010 at 12:00 AM
• Newspaper section: News

This is a critical time for Thailand, with the country recovering from the recent political events of April and May and preparing for elections next year. We have made it through a sad and painful period for Thailand, and today, I'd like to share my thoughts on what we can learn from the events of the past few months, and how I feel that the public and private sectors, the diplomatic community and the media, should work together to position Thailand to bounce back once again and prove its resilience.

William Heinecke heads one of Thailand’s largest food and hotel conglomerates.

The perception of Thailand in the eyes of the world impacts all aspects of the Kingdom, from the jobs and incomes generated by the tourism industry, to the level of foreign direct investment, to the number of businessmen who travel to Thailand to do business with Thai companies and drive the growth of the economy.

It is of vital importance to the health of the Thai economy and Thailand's 65 million citizens that the state of affairs in Thailand is depicted as accurately and as responsibly as possible around the world.

People watching the news from their home in the US or Europe need to have a balanced understanding of events taking place in Thailand. This is where I strongly feel that the foreign diplomatic community and the media, who play a major part in framing the message, have a leading role to play.

I am pleased to report that most travel warnings to Thailand have now been lifted and I would like to thank all the foreign embassies for their efforts in making this happen.

However, the initial issuance of blanket travel warnings to avoid all travel to Thailand, as many countries did during the political unrest, was a devastating blow to Thailand's economy and, in my view, a mistake. This created unnecessary panic for international guests and dealt a severe blow to the entire Thai tourism industry, a sector that contributes 7% to Thailand's GDP and employs hundreds of thousands of people. Tourist arrivals in May fell 13% compared to the same period in 2009, which itself was a soft year for tourism in Thailand due to the global financial crisis and lasting effects from the December 2008 airport closure and April 2009 riots.

Unnecessary Panic

I feel strongly that foreign nations need to be more responsible in determining whether to implement a blanket travel warning, because the impact of doing so affects the livelihoods of millions of Thai citizens.

I understand and fully support the need to safeguard the interests and safety of foreign visitors to Thailand but this must be done in a responsible manner and in a way that is appropriately tailored to the situation at hand.

I am pleased to note that neither India nor South Africa issued any travel warning during the recent red shirt demonstrations. They obviously felt their citizens were responsible enough to determine whether they should travel to Thailand and knew how to safeguard their personal safety _ a refreshing approach compared to certain countries that effectively declared all of Thailand including places such as Phuket and Koh Samui off-limits to their citizens.

A new and better-calibrated approach to issuing travel warnings is especially timely, given the increasing frequency of civil disturbances around the world. For example, we have seen labour protests in Greece in May and the G20 riots in Toronto in June _ despite the violent nature of these protests, no blanket travel warning was implemented on either Greece or Canada.

This points to the need for a better and more transparent system for issuing travel warnings. Countries are generally large, and it is rare when travel to every part of a country can be deemed unsafe. A civil disturbance in Toronto doesn't affect travel to Vancouver any more than demonstrations in central Bangkok affect vacationers in Phuket.

Examples like these lead me to urge foreign embassies and the global media to think of their responsibility to prevent unnecessary panic towards their host nations and to see that an accurate picture is projected.

Going forward, I would also like to challenge the foreign diplomatic community and global media to better understand and portray the unique nature of Thai politics.

For example, to fully understand the domestic situation in April and May, foreign embassies and the global media needed to take into account that the political unrest and violence were in no way targeted towards international visitors.

This is markedly different from the terrorist attacks in Mumbai or Bali that specifically targeted foreigners.

Tourists Well Treated

During the protests this year and last, tourists in every part of Thailand, especially Phuket, Samui and Chiang Mai experienced no ill-treatment by Thai people, red shirt or yellow shirt - yet this was never publicised.

It is also important to understand that the recent political violence was most uncharacteristic of Thais. We all know Thai people to be warm, friendly, peace-loving and extremely welcoming to foreigners with genuine hospitality. I also know that Thais take great pride in the resilience and strength of their nation.

Perhaps it is useful to take a step back to remember that Thailand is the only Southeast Asian nation never to have been colonised by European colonialists and that democracy in Thailand only took root in the 1930s. Clearly there will be lessons to be learned as democracy continues to mature in Thailand. The United States itself underwent numerous civil conflicts and social upheaval in its 230 years of democratic history. More recently, Thailand has proved its resiliency throughout various adverse events that run the gamut from economic crises, political uncertainty, natural disasters, and flu pandemics.

The private sector's interests in ensuring the safety of visitors to Thailand are fully aligned with the efforts of foreign embassies to protect the safety of their citizens. Private operators in the travel industry, including airlines, hotels and tour agents, are equally if not more directly responsible for the safety of their customers as we have our reputations at stake and financial liabilities to face.

It is clearly not in our interest to keep guests at our hotels when it is not safe to do so and we are the first to respond to any threats to safety. I urge the foreign embassies and media to give the private sector more credit and to share responsibility with the private sector in minimising the extensive damage that comes from overplaying the danger to tourists.

Rehabilitate Image

Damage has been done and I hope that lessons were learned. The private sector, public sector and media must now work together to rehabilitate Thailand's image globally and to bring business and tourists back to thailand.

It is critical to broadcast the message to the world that Thailand is a safe country to visit and in which to do business. Unfortunately, today 70% of all tourists considering a trip to Thailand, according to industry data, are concerned about their "personal safety". This is in spite of Travel & Leisure recently naming Bangkok as the "World's Best City" followed by Chiang Mai in 2nd place.

This survey was, of course, conducted prior to the April and May unrest, but it was taken in the context of the sporadic political unrest throughout 2009 and memories of the airport closure at the end of 2008. In the minds of Travel & Leisure readers, these negative events were superseded by their positive memories of their trips to Bangkok and their enjoyment of the many attractions Thailand offers visitors.

The Role of Government

This brings me to my last point, concerning the role of the government. I would like to urge the Thai government to take more pro-active steps to manage the international perception of Thailand.

There are so many positives to publicise and be proud of, from the continued strong fundamentals of the Thai economy (which are the envy of most Western countries) to the spirit shown by Bangkok's residents in coming together to clean up Ratchaprasong in the days after the protests.

Economic fundamentals remain strong and Thailand continues to be an attractive place to do business. The government's GDP growth forecast for 2010 was recently increased to 6.5%-7.5% on the back of continued strong export growth and sustained domestic demand. The currency and the stock market are at all-time highs. This strong rebound is again proof of the resilience of the Thai economy to the political uncertainty. Indeed, a more strategic approach to managing Thailand's image overseas is required if Thailand is to remain competitive and thrive in the region. Much like how Investor Relations Departments function in companies, a single government spokesman should be given responsibility and be held accountable for managing the perception of Thailand around the world.

The Thai government needs to speak with one voice. Too often the norm has been for various army or police officials, or politicians, to be given the responsibility to act as spokesmen during different periods of political unrest. This clouds the consistency of the message and the government loses control over the message communicated to the public.

In addition, it is common for the local press to quote rumours from pretty much anyone, without attribution of course. This is why it is vital that everyone takes with a grain of salt whatever is reported in the media, since anyone, including politicians, can use the media to manipulate the message sent out to the public to suit their own personal agendas, instead of what is right for the nation. If the press broadcasts messages that are incorrect or without factual basis, the government spokesman should also be given the responsibility to proactively correct the message.

Speaking With One Voice

It is crucial that the government appoint a strong spokesman to articulate the message to the public. The government needs to be in control of its public image and ensure that a message that is accurate and consistent with the good of the nation, is delivered to the public. In my opinion, only two people should speak on the behalf of the government - either the Prime Minister himself, or the official government spokesman. It should not be the army, nor the police, nor other politicians. All the bureaucracy and politicians in Parliament should report to the Prime Minister and should be prohibited from sharing their personal opinions with the press. This way, the number of different government sources speaking with the press will be minimised, enabling the government to deliver a more consistent, accurate and strategic message to the public.

We must be realistic and acknowledge the possibility for further political instability going forward, which makes it all the more important that the government manages its public image more responsibly, consistently, and strategically. For example, various government officials have come out to defend the on-going Emergency Decree, saying that the sporadic grenades in Bangkok and potential for more violence make it necessary to maintain the decree. Comments in the press of this nature are obviously cause for concern for business and potential tourists to Thailand. In response to these random acts of violence, the best message for the good of the country is probably not to say anything.

Every time Thailand has faced a crisis in the past, it has emerged stronger. And this time will be no different. The memories of the recent troubles will pass and tourists are already returning.

 

 

Breaking News: 

 

Thailand leaps as top destination

(BangkokPost.com) - Thailand has jumped from No 7 to No 3 among all-time favourite destination by world travellers.

A survey of 30,000 readers of luxury travel bible Conde Nast Traveller put Thailand in third place for
favourite overseas country, behind only India and Italy.

India made the jump from No 4 last year, while Italy fell from the top position to second.

Thailand leapt over Australia (this year's No 4, last year's No 3), New Zealand (second last year, fifth today), South Africa (which fell from fifth to sixth) and France, now in 8th place behind Spain.

In the favourite-city category, however, Sydney took the No 1 spot, with Bangkok ranked only 11th. Last year, Bangkok did not even make it into the Top 20, so maybe things are looking up.

Surprisingly to some, Phuket only maintained its No 11 ranking as most-favourite island, with the Maldives taking top spot.

Thai Airways International fell one spot in the airline rankings, from No 7 to eighth-best in the world.

NOT surprisingly, Suvarnabhumi did not make it into the Top 10 world-favourite airports.

Here are the rankings:

Favourite Countries
1. India (last year’s ranking - 4)
2. Italy (1)
3. Thailand (7)
4. Australia (3)
5. New Zealand (2)
6. South Africa (5)
7. Spain (8)
8. France (6)
9. Brazil (9)
10. Mexico (11)
11. Greece (16)
12. Switzerland (10)
13. Argentina (new entry)
14. Chile (new entry)
15. Sri Lanka (13)
16. Japan (new entry)
17. Canada (14)
18. Vietnam (new entry)
19. USA(15)
20. Egypt (new entry)

Favourite Cities
1. Sydney (3)
2. New York (4)
3. Paris (5)
4. Rome (1)
5. Barcelona (2)
6. Venice (6)
7. San Francisco (new entry)
8. Cape Town (17)
9. Singapore (5)
10. Hong Kong (18)
11. Bangkok (new entry)
12. Amsterdam (15)
13. Florence (8)
14. Istanbul (16)
15. Vancouver (new entry)
16. Buenos Aires (new entry)
17. Madrid (11)
18. Marrakech (20)
19. Dubai (9)
20. Berlin (new entry)

Favourite Islands
1. Maldives (1)
2. Greek Islands (=4)
3. Balearic Islands (new entry)
4. Mauritius (3)
5. Barbados (7)
6. Seychelles (2)
7. Bali (new entry)
8. Zanzibar (new entry)
9. St Lucia (10)
10. Great Barrier Reef Islands (new entry)
11. Hong Kong (new entry)
11. Phuket (11)
13. Cuba (new entry)
14. Koh Samui ((6)
15. Capri (13)
16. Sicily (=4)
17. Langkawi (18)
18. St Barts (8)
19. Bahamas (new entry)
20. Sardinia (16)

Favourite hotels in Australasia & South Pacific
1. Henry Jones Art Hotel, Hobart, Tasmania
2. Angsana Resort & Spa Great Barrier Reef, Australia
3. Longitude 131, Uluru, Australia
4. Lilianfels Blue Mountains Resort & Spa, New South Wales
5. Huka Lodge, Taupo, New Zealand
6. The Observatory Hotel, Sydney
7. Cradle Mountain Lodge, Tasmania
8. Hayman, Queensland
9. Sails in the Desert Hotel, Uluru, Australia
10. Cape Lodge, Western Australia

Favourite Airports
1. Hong Kong International (2)
2. Changi, Singapore (3)
3. Dubai International (1)
4. Schiphol, Amsterdam (6)
5. Madrid (new entry)
6. Vancouver (new entry)
7. Tokyo Narita (13)
8. Sydney (10)
9. Munich (8)
10. Zurich (7)

Favourite Long-haul Airlines
1. Virgin Atlantic (2)
2. Air New Zealand (6)
3. Emirates (3)
4. Singapore Airlines (5)
5. British Airways (4)
6. Cathay Pacific (1)
7. Qantas (9)
8. Thai Airways (7)
9. South African Airways (new entry)
10. Qatar Airways (new entry)

 

 

 

BREAKING NEWS

Norwegian tourists love Thailand
Jan. 2007
(TNA) Thailand has been voted as the World Best Tourist Country in the Norwegian Grand Travel Awards 2007 held in Oslo, Norway earlier this month, according to the Thai Ministry of Foreign Affairs.

The Ministry said that the Thai Embassy in Oslo reported that it is the fourth consecutive year Thailand won the annual award organised by Travel News Magazine of Norway.

Greece, Denmark and Italy ranked second, third and fourth respectively.

Meanwhile, Thai Airways International was also voted Best International Airlines in the airline category.

Norway's Travel News Magazine sponsors the Grand Travel Awards annually, this year being its 12th yearly event.

The awards were divided into 17 categories.

The award granted to Thailand resulted from an opinion poll of more than 300 tourism industry-related companies in Norway.

In a related development, the Chicago Tribune newspaper in the United States on January 7 ranked
Thailand as first among the top ten Top Value For-Money Countries under the Country Brand Index 2006 rankings.

To complete the top ten list, Indonesia, the United States, Turkey, Spain, India, Vietnam, Singapore, Greece and Hungary are included in the rankings.

 

 

BREAKING NEWS

PM reassures foreign investors

(Bangkokpost.com from Agencies)

Jan. 2007

Prime Minister Surayud Chulanont hailed 2007 as the year of "great reforms," seeking to assure foreign investors Wednesday that the country remains politically and economically stable.

"Through our actions in 2007, I fully expect Thailand will become a better place in which to invest and do business," Gen Surayud told a gathering of diplomats and members of the Joint Foreign Chambers of Commerce in Thailand.

The JFCCT has been one of the loudest critics of government's new restrictions on foreign investors, including capital controls and limits on foreign ownership of Thai companies.

Gen Surayud also reiterated the amendments to the Foreign Business Act were part of the government's effort to strengthen the rule of law. The revision restricts - in a limited number of sectors - the use of nominees by foreign shareholders to retain majority voting rights in companies Thai companies.

"The amended act is expected to strengthen our oversight capacity, address previous loopholes while avoiding the creation of unnecessary obstacles to FDI (Foreign Direct Investment)," he said.

Gen Surayud, however, said the government will examine whether to "liberalize" some of the restrictions on foreign ownership in Thai companies but he gave no details or timeframe.

Gen Surayud added that the government was "confident" the economy will expand by between 4 percent and 5 percent this year, maintaining the growth rate from 2006.

"If 2007 is to be the year of great reforms, this also means putting the economy on a sustainable track," he said.

 

 

 

New visa rules

As of the 1st October 2006 new rules regarding the use of the 30 day visa exemption stamp came into force

The new rules state that the 30 day stamp can only be used back to back for a maximum of 90 days, after which no more will be issued for another 90 days.

This means anyone using the 30 day visa exemption , and therefore doing the visa run every 30 days, to stay long term in Thailand, now need to find another way to stay long term.

It seems so far that a person can leave and enter as many times as they like within that 90 day period, but after 90 days of getting back to back entries using this method, people will be refused another 30 day visa exemption .

So, what to do ?

The rules only apply to those using the 30 day stamp to stay long term. Anyone who has a visa issued at an embassy or consulate outside of Thailand will not be affected.

So the answer is clear, If you are staying or plan to stay in Thailand long term, or an extended time, you will need to apply for the appropriate visa in your home country before travelling. Tourist visas can easily be obtained in countries neighbouring Thailand, but the consulates seem to be only issuing the single entry type, but for those with no other choice it's a good option.

 

 

 

United Nations House, Elizabeth Rose International Conference Centre
Tokyo, Japan
March 14–16, 2007

Event Info

United Nations House
Elizabeth Rose International Conference Centre
53-70, Jingumae 5-chome, Shibuya-ku, Tokyo 150-8925, Japan

Contact Us

Contact AARP Global Aging Program at: intlaffairs@aarp.org

 

 

     

AARP will hold an international conference in Tokyo, Japan, from March 14–16, 2007, to explore how Asian societies are dealing with issues related to retirement, aging populations, and quality of life for retirees and older workers. “Reinventing Retirement Asia: Enhancing The Opportunities Of Aging” will be the third in a series of symposia examining how different countries are confronting and addressing retirement and the needs and talents of their older citizens.

For the conference AARP is being supported by National Host— JANCA (Japan NGO Council on Aging). The conference will be held at the United Nations University building in central Tokyo, which also houses the United Nations Population Fund.

“Reinventing Retirement Asia: Enhancing The Opportunities Of Aging” will bring together leading decision and opinion makers in government, NGOs, academia, and business from throughout Asia, including high-level representatives from China, India, South Korea, Australia, New Zealand, Japan, and the United States, among other countries. Through a series of panel discussions and workshops, including technology demonstrations and other interactive activities, participants will explore:

• Tapping the Vast Human Capital of Older Workers
• Integrating Retirees Into Community Involvement
• Retirement Income Balancing Act: the State, Employer, and Individual
• Family Ties: Changing Role of the Family Structure for Older People
• Ensuring Access and Affordability of Healthcare
• The Power of the Silver Market: Choice & Empowerment for Older Consumers

AARP hopes the conference will serve as a catalyst for regional cooperation and increase the exchange of ideas and best practices between the United States and some of the most dynamic and fastest growing (and aging) societies in the world.