The Need for Affordable Housing
Affordable housing is defined as housing costs that are less than 30% of a household’s annual income. Households that spend more than 30% of income on housing are considered “cost burdened” and have difficulties with paying for everyday expenses, such as housing, food, transportation and health care. It is estimated that 12 million people in rental and permanent housing spend more than 50% of their annual income in lease or mortgage payments. Households with one minimum-wage earner cannot afford a two-bedroom apartment at fair-market value anywhere in the United States. This lack of affordable housing can be a severe hardship for persons wishing to meet their family’s basic needs and save for the future.
Over the past two years, non-profit housing development organizations have faced many challenges. Costs have risen, public resources have dwindled, the economy has tanked and the mortgage crisis is impacting potential homebuyer attitudes and their ability to borrow. This has caused affordable housing production slowdowns.
Community Frameworks is committed to offering affordable housing solutions for people in the Northwest.
Affordable Housing Facts from 2008 Affordable Housing Report,
U.S. Census Bureau and the Corporation for Enterprise Development
Spokane County
Cost Burdened Homeowners 28,466
Cost Burdened Renters 28,017
Poverty Rate 16%
Number of Homeless Individuals 763
Number of Homeless Families 607
Kitsap County
Cost Burdened Homeowners $29,668
Cost Burdened Renters $24,567
Poverty Rate 22%
Number of Homeless Individuals 620
Number of Homeless Families 281
King County
Cost Burdened Homeowners 148,111
Cost Burdened Renters 123,001
Poverty Rate 19%
Number of Homeless Individuals 5,517
Number of Homeless Families 2,984
Washington State
Cost Burdened Homeowner 40.6 %
Cost Burdened Renters 44.8 %
Median Income $44,000
Poverty 12.6 %
Idaho
Cost Burdened Homeowner 33.1 %
Cost Burdened Renters 38.8 %
Median Income $46,136
Poverty 12.1 %
Montana
Cost Burdened Homeowner 33.6 %
Cost Burdened Renters 36.4 %
Median Income $43,000
Poverty 14.1 %
Oregon
Cost Burdened Homeowner 40.8 %
Cost Burdened Renters 45.1 %
Median Income $48,735
Poverty 13 %
United States
Cost Burdened Homeowner 37.5 %
Cost Burdened Renters 45.6 %
Median Income $50,740
Poverty 13 %
Federal Poverty Line is $19,350 for a family of four
Need for Senior and Disabled Persons Housing
Senior citizens and disabled persons on a fixed income have increasing difficulties in affording quality housing and can be vulnerable to homelessness. In Washington the average income of a retired person with social security benefits is $16,360, the average income of social security income for disabled persons is $11,732 and the average annual pension for veterans is $11,181. However, the average annual income needed to support a one bedroom apartment in Spokane County is $20,480.
The Need for Homebuyer and Financial Management Education
Instruction in achieving and maintaining good financial health creates long-term success stories. Classes on budgeting, credit and mortgage basics educate the participant in how to ensure long-term financial security and assists in helping dreams of homeownership become a reality.
In this community, there is also a need for long-term post-purchase counseling to insure that first-time homebuyers maintain ownership of their homes. In the current economy, ongoing post-purchase education not only helps new homeowners develop the skills to adjust their budgets to economic change, it also helps forestall foreclosure situations before they arise. Additionally, in response to the large number of non-English speaking homebuyers that Community Frameworks and other programs serve, we continue to make translators available for our homebuyer education classes and counseling activities to further support the success of all our participants.
Additional Resources
Links to “2008 Affordable Housing Report” from Washington Low Income Housing Alliance and Washington State Housing Consortium http://www.wliha.org/2008_Affordable_Housing_Report.pdf
Information and statistics gathered from the U.S. Department of Housing and Urban Development.
http://www.hud.gov/offices/cpd/affordablehousing/
Housing Cost Burdens http://scorecard.cfed.org/housing.php?page=housing_cost_burden_renters
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