Friday Five: Housing Bubble Hits Gen X; Congress Acts on FHA Loan Limits, Flood Insurance

Check out the latest headlines about housing trends, including multigenerational family homes and how Gen X is handling the drop in home prices. Plus, breaking news about FHA loan limits and the National Flood Insurance Program.

Home builders are capitalizing on the uptick in multigenerational family living arrangements at a time when new-home development is in a slump. Also, new data shows why Generation X has taken the brunt of the housing downturn. 

And, a Friday Five update wouldn’t be complete without this week’s buzz from Capitol Hill: Lawmakers came to an agreement on restoring the Federal Housing Administration loan limits, but they only approved another short-term extension of the National Flood Insurance Program.

Bloomberg Businessweek: Home Builders Target In-Laws and Dogs as Extended Families Grow

Kevin Barnes figures buying a newly built home saved him money. That’s because he chose a model with a second master bedroom for his mother-in-law. The Barnes residence is part of a growing line of new homes marketed to multigenerational families, a category that increased by 30% from 2000 to 2010, according to the U.S. Census Bureau.

NPR: Gen X Takes the Housing Hit; Boomers Only Grazed

For millions of younger Americans, this long (housing) price slump will have a lasting financial impact. Economists are finding the slump is disproportionately hurting the so-called Generation X — people born between 1965 and 1982. Here’s why they are being hurt more than Baby Boomers, born between 1946 and 1964.

Omaha World-Herald: Buffett: Housing will Revive Economy

U.S. housing remains in a “depression,” Omaha investor Warren Buffett said Monday, but the rest of the economy is advancing enough that when housing recovers, employment will jump and the overall economy will grow significantly.

HouseLogic: Congress Restores FHA Loan Limits

Congress agreed to restore to previous levels the maximum loan size you can get when you use the Federal Housing Administration’s mortgage program to buy a home or refinance your current mortgage in high-cost real estate markets. The change will help make mortgages more affordable and accessible for middle-class families.

Insurance Journal: Flood Insurance Program Extended Until Dec. 16

Congress has approved yet another resolution to fund parts of the federal government, including the nation’s flood insurance program on a short-term basis. This time the funding runs until Dec. 16.