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Afordable Housing 2013

The Council of State Governments

CAPITOL RARh

FISCAL

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Terms to Know: Cost-burdened: Spending30percentormoreo

householdorindividualincomeonhousingcosts. Severely cost-burdened:Spendingmorethan50

percentohouseholdorindividualincomeonhousingcosts.

Extremely low income:Householdorindividualearning30percentorlessotheareamedianincome.

HousingaordabilitychallengesintensifedduringtheGreatRecessionandsince,butthosechallengeshavebeenbuildingorseveraldecades.SeveralactorscontributedtothedeclineoaordablehousingintheU.S.,includingstagnantwages,highunemployment,thehousingboomandbust,andashitbyconsumerstorentalhousing.

Cost-burdened status Forty-twomillionhouseholds37percentwere

moderatelycost-burdenedand20.2millionhouse-holds18percentwereseverelycost-burdenedin2011.Overthepastdecade,thenumberose-verelycost-burdenedhouseholdsgrewbynearly7million.1

In2011,morethanhaloallrenters53.4per-centand36.9percentohomeownerswithmort-gageswereconsideredcost-burdened.Tenyearsago,40percentorenterswerecost-burdened,whilein1960,25percentwerecost-burdened.

Levelsocostburdenvarybystate.Morethanone-third36.6percentorentersarecost-bur-denedinWyoming,asare39.7percentorentersinSouthDakota,thelowestratesoanystate,ollowedcloselybyNorthDakotaat42.6percent.Floridaat60.9percent,Hawaiiat58.9percentandCaliorniaat57.7percenthavethehighestratesocost-burdenedrenters.

NorthDakotahasthesmallestpercentageocost-burdenedmortgagedhomeowners,with19.1percentpaying30percentormoreotheirincomeinhousingcosts.Iowa,at23.7percent,andNebraska,at24.9percent,roundoutthethreestateswiththeleastburdenedhomeowners.

Hawaii,at49.2percent,Caliornia,at49percent,andNewJersey,at47.3percent,topthelistasthemostcost-burdenedstatesorhomeowners.

TheNationalLowIncomeHousingCoalition,anonproftadvocateoraordablehousing,calcu-latestheminimumwagethatmustbeearnedtoaordanaveragetwo-bedroomapartmentatairmarketvalueinstates.2

Thatwagerangesromalowo$12.06inNorthDakotaand$12.71inKentuckytoahigho$32.14inHawaiiand$25.78inCaliorniawelloutoreachormanylow-incomehouseholdsandarexceedingminimumwages.

Innostatecananindividualworkingatypical40-hourworkweekattheminimumwageaordatwo-bedroomapartmentorhisorheramily.

Low-income households are hit the hardest by thelack o afordable housing Market-driven,unsubsidizedaordablehousing

hasessentiallydisappearedorthoseatthebot-tomeconomically.

In2011,76percentothoseconsideredextremelylowincomewereseverelycost-burdened.Forev-ery100extremelylow-incomehouseholds,only30adequatehousingunitswereaordablein2011. 3

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AmericansreceivingSupplementalSecurityIncomelow-incomepeoplewhoareolderthan65orareblindordisabledarealsohithardbyalackoaordablehousing.In2013,theederalmaximummonthlypaymentanSSIrecipientcouldreceivewas$710.4Evenirecipientsspent100percentotheirSSIincomeonhousing,theystillcouldnotaordastudioapartmentinatleast18states.5

While those in the lowest income brackets continueto be most afected by the shortage in afordablehousing, those in the middle-income brackets alsoare being squeezed.6

Morethantwooutothreehouseholdswithincomeslessthan$15,000annuallyspentmorethanhaltheirincomeonrentin2010rom61.2percentohouseholdsinthatrangein2001to68percentin2010.

Thenumberohouseholdsthatwereseverelyburdenedinthenextincomerange$15,000-$29,999jumpedby65.1percentrom2001to

2010,landingat30percentohouseholdsinthatincomebracketwhowereseverelyburdened.

Thenumberoseverelyburdenedhouseholdswithincomeso$30,000to$44,999annuallyhasincreasedby75.9percentsince2001,hitting12.1percentohouseholdsinthatrangein2010.

Thenumberothoseconsideredtobeinthemiddleincomebracket$45,000to$74,999an-nuallythatmovedintotheseverecost-burdenedcategoryrom2001to2010nearlydoubled,with2.7percentothosehouseholdsallingintothatcategoryin2001and5.1percentin2010.

Whilethebiggestpercentageshitsintothese-verelycost-burdenedwereseenatthemiddlein-

comelevelsrom2001to2010,thelargestnumberohouseholdsthatwereseverelycost-burdenedin2010inabsolutetermsremainedatthebottom:10.5millionhouseholdsinthelessthan$15,000rangeand5.8millioninthe$15,000to$29,999range,comparedto2.2millionhouseholdsinthe$30,000to$44,999rangeand1.3millioninthe$45,000to$74,999range.

Afordability problems have impacts beyond thehousing market. AccordingtoasurveybytheUrbanLand

Institute,55percentolargecompaniesthosewith100employeesormorereportedalackoaordablehousingneartheirlocation.Othosecompaniesrecognizingalackoaordablehous-ingnearby,67percentsaidthisshortagehasa

negativeimpactonretainingentry-andmid-levelemployees. Whenamiliesliveinhousingthatisunaordable

theyotendonothaveenoughmoneyorotheressentiallivingexpenses.In2010,severelycost-burdenedhouseholdswithchildreninthebottomexpenditurequartile,onaverage,hadonly$619tospendonlivingexpensesaterhousingcosts.Thatmeanstheyspent40percentlessonood,50percentlessonclothesandhealthcare,and30percentlessoninsuranceandpensionsthanamilieslivinginmoreaordablehousing. 7

Unless otherwise noted, gures are authors calculations of data from the 2011 U.S. Census

Bureau American Community Survey, 1-Year Estimates. http://www.census.gov/acs/www/

1 Joint Center for Housing Studies at Harvard University. The State of the Nations Housing 2012.

http://www.jchs.harvard.edu/research/state_nations_housing2 National Low Income Housing Coalition. Out of Reach 2012. http://nlihc.org/oor/20133 National Low Income Housing Coalition.4 Harvard University.5 National Low Income Housing Coalition.6 Harvard University.7 Harvard University.

RSOURCS

Jennifer Burnett, CSG Program Manager, Research Services and Specia l Projectsjburnett@csg.org

mailto:jburnett%40csg.org?subject=mailto:jburnett%40csg.org?subject=

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Percent of houseolds tat are ost-Burdened1 housin Waes3

Renters Homeowners2

Hourly wage neces-

sary to afford 2 BRapartment

Annual income necessaryto aord 2 BR apartment

Alabaa 53.8% 31.6% $13.34 $27,756

Alaska 44.3% 32.0% $21.37 $44,446

Arizona 51.9% 39.2% $17.19 $35,757

Arkansas 52.5% 27.7% $12.76 $26,539

alifornia 57.6% 49.0% $25.78 $53,627

olorado 51.5% 35.0% $17.26 $35,898

onnecticut 55.3% 40.6% $23.22 $48,304

Delaware 52.7% 34.9% $20.63 $42,907

lorida 60.9% 46.4% $19.14 $39,804

georia 54.9% 36.8% $15.28 $31,793

hawaii 58.9% 49.2% $32.14 $66,853

Idao 51.6% 36.8% $13.24 $27,545

Illinois 53.1% 38.8% $17.02 $35,392

Indiana 51.8% 26.6% $13.81 $28,733

Iowa 47.7% 23.7% $12.97 $26,980

Kansas 46.7% 27.0% $13.69 $28,471

Kentucky 51.1% 28.1% $12.71 $26,435

Louisiana 55.5% 29.8% $15.27 $31,752

maine 53.8% 35.7% $16.31 $33,928

maryland 53.6% 37.0% $24.47 $50,905

massacusetts 51.7% 38.7% $24.05 $50,029

mician 55.5% 33.9% $14.77 $30,713

minnesota 50.4% 32.2% $16.08 $33,438

mississippi 55.6% 34.4% $13.41 $27,898

missouri 49.8% 29.4% $14.07 $29,267

montana 46.6% 37.2% $13.39 $27,857

ebraska 43.6% 24.9% $13.99 $29,106eada 52.3% 42.8% $19.69 $40,965

ew hapsire 50.2% 39.9% $20.47 $42,580

ew Jersey 54.6% 47.3% $24.84 $51,672

ew mexico 53.2% 34.3% $14.42 $29,983

ew York 54.4% 41.3% $25.25 $52,513

ort arolina 53.1% 33.9% $14.17 $29,481

ort Dakota 42.6% 19.1% $12.06 $25,093

io 51.7% 30.9% $13.79 $28,679

klaoa 48.2% 28.3% $13.18 $27,415

reon 55.4% 41.2% $16.00 $33,290

Pennsylania 51.4% 33.3% $17.21 $35,802

Rode Island 50.6% 41.2% $18.18 $37,813

out arolina 54.2% 34.2% $14.34 $29,837

out Dakota 39.7% 25.0% $12.82 $26,673

Tennessee 52.8% 32.7% $13.84 $28,787

Texas 49.9% 31.6% $16.67 $34,671

ta 51.2% 34.3% $14.94 $31,079

veront 53.4% 37.0% $18.53 $38,541

virinia 50.2% 33.4% $20.72 $43,108

Wasinton 50.7% 39.4% $18.58 $38,652

West virinia 48.9% 26.8% $12.35 $25,693

Wisconsin 49.0% 33.4% $14.67 $30,518

Wyoin 36.7% 26.9% $14.84 $30,862

Afordable Housing 2013

Denitions:

Percent Cost-Burdened: Spends 3

cent of more of household or ind

income on housing costs

Housing Wages: The full-time ho

wage or annual income one musin order to pay what HUD estima

be the Fiarm Market Rent (FMR)

bedroom apartment, spending n

than 30 percent of income of the

1CSG calculations of U.S. Census Bur

2011 American Community Survey

stimate Data, www.census.gov2Homeowners with a mortgage3National Low Income Housing Coal

Out of Reach,2013,

http://nlihc.org/oor/2013