chapter 9 - Ch. 9- Housing Affordability: When is Housing...

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Ch. 9- Housing Affordability : When is Housing Affordable? - affordability , the term, has varied over time in what it means, and remains vague. -US Department of Housing and Urban Development standard is that a household should spend no more than 30% of total income on housing costs, including mortgage or rent payments and utilities. *Households paying more than 30% of income are “housing cost burdened,” and those paying more than 50% are “severely housing cost burdened.” *most affordability indices underestimate affordability problems for large and/or low- income households.----30% is more significant to some people -1991 census bureau, 1/3 homes are “shelter poor” and can’t afford to be paying what they were. *US median household income in 2002 was $56,500, but varied on location -metropolitan areas: $60,300 -nonmetropolitan areas: $45,000 Households and Housing Costs : -One must differentiate between cost increases due to our greater consumption of housing compared to real changes in cost. 1982- median cost of single-family home $69300; 2002- $187,500 *In part, due to inflation *Increase in costs of labor and materials *land values have increased *changes in households’ demands for more space of higher quality *(for bedrooms, bathrooms and garages) *13.4 million renter and 14.5 owner households have affordability problems. *for cost-burdened renters, struggle is to pay rent and utilities; cost-burdened owners, struggle is property maintenance and holding onto equity. Homeownership and Affordability
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This note was uploaded on 02/22/2012 for the course AG 2373 taught by Professor Staff during the Fall '10 term at Texas State.

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chapter 9 - Ch. 9- Housing Affordability: When is Housing...

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