M5 Exam I Study Guides - Lecture notes Test 1 PDF

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Study Guide for Exam I: M1-M5 AHRM 2644: Housing and the Consumer Exam 1 scheduled 1:25-2:30 pm, February 17 (Fri), 412 Wallace Hall The items listed below cover a majority of what will be on the exam. However, be sure to finish all of the reading assignments. The majority of the exam will be multiple choice, true/false, and matching.

Study for Test: All Assigned Readings • Class Lectures • Videos BRING THE FOLLOWING:  

Your Student ID Charged laptop

NOTE: It will be your responsibility to bring your fully charged laptops to the exam and also please double check if you can link to Canvas. You will be taking the exam online through Canvas, but it will be proctored in the classroom. Notes, books, and other electronic devices are NOT allowed during the exams.

M1: What is the Study of Housing * The holistic study of housing includes four main components – be able to name and explain each. Product: physical shelter/buy and sell Environment: neighborhood/community Service: design and develop/ selling and financing/managing/regulating Process: provisions and maintenance of homes and stock * Why is housing an interdisciplinary study? It reaches across several disciplines such as sociology, architecture, economics, psychology, interior design, law and political science. * Be familiar with the Conceptual Framework for the Study of Housing Check out map on powerpoint. The personal factors and external factors play a role in the 4 components of housing (product, environment, service, process) which then make up the quality of life (family, individual, community) M2: Housing Needs, Meanings & Models * How do preferences differ from needs? Preferences are what you would rather have where as needs are essential to living * What is a household? Householder? Family? How do they differ?

A household includes all people who occupy a dwelling. A householder is someone who owns the dwelling. A family is two or more people living together who are related by birth, marriage, or adoption. * What is the American Housing Survey? How is it used? It is the largest regular national housing sample survey in the United States and contains information on the number and characteristics of U.S. housing units as well as the households that occupy those units. It provides data on apartments, single-family homes, mobile homes, vacant homes, family composition, income, housing and neighborhood quality, housing costs, equipment, fuels, size of housing unit, and recent movers.

* What is the Family Life Cycle? The Family Life Cycle is a chart that goes from smallest to largest: married couples, child bearing, preschool children, school aged children, teenagers, launching, middle years, and later years. The life cycle is very different for singles and childless couples * Needs and Values considerations for housing choice 7 basic housing needs: protection, sense of place, need to relate, need for wholesome self-concept, social and psychological stimulation, creativity, and need to fulfill values. PHYSICAL NEEDS, SECURITY, LOVE AND BELONGING, SELF-ESTEEM, AND SELF ACTUALIZATION (Maslow’s hierarchy of needs pyramid) Self-expression, refuge from the outside world, cocoon where we feel nurtured and let down your guard, privacy. * What determines a household’s lifestyle? Age, type, size and stage in life cycle Culture and generation differences * Who are the traditionalists, modernists and cultural creatives? How would you describe each? Traditionalists: small towns and strong churches, “Good Ol American Way” Modernists: high value on personal success, consumerism materialism, technological rationality Cultural Creatives: affluent, well-educated, cutting edge of social change, read more and watch less TV, love art, also known as Bobos or Hippies. * How do generational differences impact housing choice and lifestyle? Structural alternatives vary as the as the generations move through various stages in the life cycle, but each generation puts up its own stamp on how that structure fits with their lifestyle * What is a norm? A standard, model, or pattern regarded as typical for a specific group

* What are the six housing norms? What is the U.S. norm for each? 1. Tenure: desire to own one’s dwelling- “American Dream” 2. Space: refers to how many people and how old they are in each house. No more than 2 to a bedroom, depends! 3. Structure type: Single-family detached home is the U.S. norm 4. Quality: Equipped kitchen, central heating, indoor plumbing soundness of structure. 5. Neighborhood/location: Seeing a shift because of economics 6. Expenditure: about 16% of the average U.S. household’s spending goes to shelter-related expenses, and an additional 6% goes to utilities. * Which norms are held by most American households and which are determined by socioeconomic status? Tenure, Space and Struture: desired by most Americans Quality, Expenditure and Neighborhood: vary with lifestyle and status * What does tenure mean? Tenure means home ownership, own ones’ own dwelling, the “American Dream” Household type Age Type Size Stage in life cycle

Social class Education Income Occupation

Housing Values

M3: Values, Lifestyles, & Norms * Be familiar with the Housing Choice Model.

Lifestyle Cultural orientation Generational differences

Housing Norms Tenure Space Structure Quality Neighborhood/Location Expenditure

*

* What are the meanings, roles and functions housing serves for people (reward, status symbol, etc.)? “American dream”

Housing choice

* What is a housing value? Standards or guideposts that influence our housing decisions * Explain some of the value clusters that influence our housing? Economy: economic use of goods/services Family: factors that affect physical and mental well being Personal: emphasize independence of self-expression Social Prestige: emphasize upward mobility and view housing in terms of effect on social standing * How do values differ by generation? Traditionalists: loyal to workplace, politically conservative, save then buy Baby Boomers: Idealists, team-oriented, value education Gen Xers: value skills over education, fun-loving generation Gen Yers: optimistic, confidence, sociability, diversity Generation Z: not centered one opinion, fearful about tomorrow, share views online, high maintenance workforce, fragile and needy, mixed views * What are some examples of urban lifestyles? Careerism: work focused, military family, job controls time and money Familism: family focused, children center of interest, locations important Consumerism: newest goods and services, personal pleasure, entertainment Leisure: retirees, travel and entertainment are focus, minimize work * Explain Maslow’s Hierarchy in terms of housing. Know the stages of the pyramid.

SelfActualization

Self -esteem Love and Belonging Security Physical Needs

* How does the normative “family life cycle” fit today’s society? It’s a pie chart! Starts off as (small stages): married couple, child bearing, preschool children, school-aged children Average size: teenagers, launching Big size: middle years, later years * What impacts a sense of community and community support systems? * How do house and home differ? House: any building that serves as a living quarters for one or more families Home: any place a person lives * HOME includes what three things? The people, structure and community * How does housing impact children? Housing impacts children implants memories of surroundings, things we remember that will carry on throughout our life whether we feared something (under the bed), unconsciously we reproduce aspects of its form in our homes (Winnie the pooh chair) * What factors contribute to a household’s need for space? Number of people, age of people, square/foot per room, persons per room * How does cost affect housing choices? More money you have, the more you can spend on a home Price defines the quality, location, structure and space * How does housing affect feelings and behaviors? M4: Housing & Communities * What overriding factors affect housing choice? Employment, needs, values, lifestyle, stage in life cycle, preferences * Geographic and general location factors/considerations Climate, population density, culture, topography, home styles, lifestyle and traffic/commute * Community and neighborhood considerations Economy (growing, declining, etc), taxes, local services (fire, police, etc.), schools, crime/safety, future plans, amenities * What is Green space?

Green space relates to high environmental living and healthy air, no pollution, safe drinking water. Environmental quality of life relates to green space available for outdoor activities in a community. * What determines neighborhood satisfaction (three were given)? Believe current neighborhood is an improvement Adequate level of stimulation Residents feel at home * What is co-housing? Co-housing is a sense of community, private homes gathered around a common space. Each home has traditional amenities. * Who are most dissatisfied with their neighborhoods – owners or renters? Research says renters are more dissatisfied * Greatest enemy of desirable neighborhoods – according to the New Urbanism movement The automobile * Lot considerations Size (know your lot line), condition of landscaping, sidewalks, driveways * What are easements, encroachment, and eminent domain? Easements: legal use of property for another purpose Encroachment: moving onto someone else’s property Eminent Domain: government takes personal property to benefit city * How do we fix the suburbs? Bring back corner streets, make streets narrow, drop cul-de-sac, mix housing types, plant trees curbside, plan for mass transit, make a town center, turn down lights and link work to home. * What concepts are incorporated into the New Urbanism? What other names are used for the New Urbanism? Elements of new urbanism: mixed neighborhoods, close to parks/stores, generous street networks, garages in back, good use of porches, etc. Other names: Smart growth, traditional neighborhood design, and new-traditional town planning * How is the New Urbanism concept being used in public housing and rebuilding of communities? New urbanism was used to re-do public housing here in Diggs Town Norfolk * What is a PUD and what are its benefits? Planned Unit Development

Benefits: larger houses/less money, convenience of retail shops, more choices of house types, open spaces and common area, broader mix of residents, move from one type of housing to another * What is neighboring? Next to or near another place; adjacent * Gentrification vs disinvestment in neighborhoods Gentrification: the process of renewal and rebuilding accompanying the influx of middle-class for affluent people into deteriorating areas that often displaces poorer residents Disinvestment: * Gated community A gated community is a safer way of living usually for retirees where people must have access to cross the gate before entering community * Conservation community – what are its features? Set up to promote conservation of materials and ecology (greener space) * What leads to higher neighborhood satisfaction? Believe current neighborhood is an improvement Adequate level of stimulation Residents feel at home * What is a comprehensive plan? Process that determines community goals and aspirations in terms of community development. Dictates public policy in terms of transportation, utilities, land use, recreation, and housing.

M5: Current Housing Market and Trends * What determines home prices? The economy, income, employment rates * What is the fastest growing household type? Married couples without children * What are the causes of the credit crisis? Easy credit, few regulations, fraud, no accountability * How has the homeownership rate and home values changed? Home ownership rate has declined and home values have changed * What is home inventory? comprehensive report which includes detailed descriptions and photos of the personal property in and around your home. While considered a key component in documenting insurance claims

* Do people still consider home buying a good investment? Yes * How have appraisals impacted the housing market?

55% of appraisers responding to a survey said they had felt uncomfortably pressures to overstate the value or condition of a property * What are housing starts and what affects them? Housing starts are housing units produced- affected by: Supply and demand, cost, land available, constraints of zoning, turnover filter down, and policy issues such as tax advantages * How well has the US met projected housing needs? (housing starts) * Why are McMansions not selling as well as they once did? Higher energy costs and the baby boomers downsizing * What is a new trend in home size? Singles have outnumbered couples with children * Currently are more sales new or existing homes? ¾ of all sales are existing homes * How do people view the commute related to housing choice as stated on your slide on commute? A large number of the homeowners would gladly trade in square footage for less time on the road * What is a “short sale”? How do they impact the seller and neighborhood? “short sale” made up of large percentage of existing sales-sold for less than is owed. It is best for the neighborhood because it sold the home and someone else is moving in, but drops the sellers credit score by 150-200 points so it hurts there credit to buy something in the future. * Where do most people have their net worth? In there home (about 71%) * What do the terms “under water” and “negative equity” mean? “Under water” means that you owe more than the house was worth “negative equity” means State of the Nation Housing 2016 Based on your readings: * What are the general trends in the current housing economy? Less people are buying homes More people are renting Prices are continuing to grow Ownership rates are falling Smaller lots are more common

* Trends (direction of change) - home size, home ownership, commute, housing starts, housing density, lot size, vacancies, rentals, home prices, etc. Single-family home sizes are getting bigger, rest are getting smaller Home ownership rates are falling (lowest level in half a century) but should stabilize in the next few years Commuters would trade in square footage for less time on the road Housing starts climbed 10.8% to 1.1 million units Majority (58%) of single-family construction was built in low-density areas Median lot size has decreased and suburbs usually have smaller lots (becoming more common to have small lot) The average months supply of vacant lots soared after 2006, dropped after 2009 then stabilized in 2015. More people are renting than owning homes The rise in home prices helped those owners whom were under water reaching a new peak in 2015. * What factors contribute to these trends? Know which trends are increasing, decreasing, or flat. Growing Momentum in single-family construction Gains in multi-family construction Increasing new and existing home prices and sales Further reduction in mortgage distress The weak economy, income Low energy prices Decrease in household growth...