Housing Affordability Housing Affordability Overview Overview Alachua County, Alachua County, Florida Florida Shimberg Center for Affordable Housing M.E. Rinker, Sr. School of Building Construction College of Design, Construction and Planning University of Florida
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Housing Affordability Overview Alachua County, Florida Shimberg Center for Affordable Housing M.E. Rinker, Sr. School of Building Construction College.
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In today’s presentation, In today’s presentation, we will:we will:
Look at a brief overview of Alachua County households
Define affordable housingDefine housing “cost burden” Look at examples that illustrate who may
experience housing cost burden in Alachua County
Let’s get started by looking at Let’s get started by looking at households in households in
Alachua County. . .Alachua County. . .
Alachua County HouseholdsAlachua County Households
Total households (2000): 87,509About 55% of households are familiesAbout 25% of households are families with
childrenAbout 6% of households have one or more
members age 65 or above
Alachua County PovertyAlachua County Poverty
Nearly 23 percent of Alachua County’s total population was below the poverty level in 1999
This compares with 12.5% of Florida’s total population in poverty for the same year; and
12.4% for the U.S. in 1999
Alachua CountyAlachua CountyRenters or Owners?Renters or Owners?
Owner-occupied housing accounted for about 55% of the housing units in Alachua County in 2000
Renter-occupied housing made up about 45% of Alachua County’s housing units in 2000
Florida’s homeownership rate is about 70%U.S. homeownership rate is about 66%
Now that we’ve seen a brief Now that we’ve seen a brief overview of Alachua County’s overview of Alachua County’s households, let’s move into a households, let’s move into a
discussion of affordablediscussion of affordablehousing. . .housing. . .
.
What is Affordable Housing?What is Affordable Housing?
Housing is considered Housing is considered affordable if a household pays affordable if a household pays no more than 30 percent of its no more than 30 percent of its gross income for all housing gross income for all housing
related costs.related costs.
Rental housing is affordable if Rental housing is affordable if these items total no more than these items total no more than
30% of gross income:30% of gross income:RentElectricGasWater & Sewer
Homeownership is affordable Homeownership is affordable if these items total no more if these items total no more than 30% of gross income:than 30% of gross income:
Homeowners’ association fees (if any) Allowance for periodic maintenance Electric Gas Water & Sewer
What is housing“cost burden?”What is housing“cost burden?”
Households are considered cost burdened if housing related costs exceed 30 percent of gross income.
Households who pay more than 30 percent of their gross income for housing may have difficulty affording other necessities such as food, child care, transportation and health care.
Alachua County Cost BurdenAlachua County Cost Burden
Nearly 37% of Alachua County renters are housing cost burdened.– Note that this number has been adjusted to
exclude student households.
More than 25% of Alachua County homeowners who have a mortgage are cost burdened.
Since housing affordability is Since housing affordability is based on household income, based on household income, let’s look at some example let’s look at some example
groups’ earnings. . .groups’ earnings. . .
Earnings ExamplesEarnings Examples
Public school teachers (K-12) with a bachelor’s degree and 5 years’ experience: $28,800.
The Shimberg Center for Affordable Housing publishes homeownership affordability information annually in The State of Florida’s Housing.
One of the ways of looking at affordability involves the calculation of an index.
Affordability IndexAffordability Index
An index of 100 means that the average house is affordable to the average household.
The higher the index, the more affordable homeownership is.
Alachua CountyAlachua CountyAffordability IndexAffordability Index
Alachua County’s index for the most recent year available (2001) was 121.38.
So on average, homeownership is affordable in Alachua County.
But how do we stack up But how do we stack up against other Florida against other Florida
counties?counties?In 2001, Alachua County ranked in the
bottom third of Florida’s 67 counties in terms of single-family homeownership affordability (actual rank: 47 of 67).
About 70% of Florida’s counties offer a more affordable balance between median income and median house price than Alachua County.
Let’s translate this into more Let’s translate this into more specific information. . .specific information. . .
Median Sales PriceMedian Sales Price
The median sales price for houses in Alachua County was $154,500 in the quarter ended September 30, 2003.
The median sales price for the same period in 2001 was $123,500.
This represents a 25.1% increase for the 2-year period.
How much income does a How much income does a household need to qualify for household need to qualify for
the median-priced house?the median-priced house?A household would need an income of
about $50,850 per year to afford the median priced house in Alachua County.
Note these important assumptions:– The household has no debt– The household is using FHA loan at 6.25%
fixed interest rate over 30 years
Which of our example groups Which of our example groups are income-qualified for this are income-qualified for this
house?house?
None of our example groups qualify.
Let’s look at an example Let’s look at an example selling at less than median selling at less than median
sales price in 2004. . .sales price in 2004. . .
Example PropertyExample PropertySpringtree II subdivision3 BR/2 BA1,623 square feetCarportBuilt 1979Sold January 29, 2004 for $124,400Sold for $80,000 on May 28, 1999
– represents nearly 56% appreciation in less than 5 years
How much income would be How much income would be necessary to qualify for a necessary to qualify for a mortgage for this home?mortgage for this home?
Household income would need to be about $40,950 to income qualify for this home, assuming:– No debt– FHA mortgage at a fixed 6.25% for 30 years
Now let’s look at our example Now let’s look at our example groups and see who can groups and see who can
afford this home. . .afford this home. . .
Who qualifies?Who qualifies?
None of our example groups qualify.
Now let’s look at income Now let’s look at income qualification in another way. . .qualification in another way. . .
How much house could our How much house could our groups qualify for?groups qualify for?
Public school teacher with 5 years’ experience qualifies to purchase an $87,512 home.
Deputy sheriff qualifies to purchase an $89,198 home.
Firefighter qualifies to purchase an $81,237 home. Registered nurse qualifies to purchase a $117,053
home. Secretary qualifies to purchase a $53,929 home. A child care worker qualifies to purchase a
$38,870 home.
Let’s wrap it up. . .Let’s wrap it up. . .
Who may be affected by Who may be affected by problems with housing problems with housing
affordability?affordability? Many of those who provide services essential to
community functioning, such as those employed providing public safety, nursing care, public education and child care.
Those who provide other essential services within our community, such as secretaries, retail clerks, food service workers and maids and housekeepers.
Useful links:Useful links:
Shimberg Center for Affordable Housing– www.shimberg.ufl.edu
Alachua County Property Appraiser– www.acpafl.org
Alachua County Dept. of Growth Management’s Housing Programs– http://growth-management.alachua.fl.us/