NC
Strategic Scorecard |
2.2.3 Home
Affordability |
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Target: Less
than 25% of homeowners pay 30% or more of income on
housing
Actual: 30%
of homeowners
US
Rank 2004: 27th (up
from 28th in 2000)
SE
Rank 2004: 7th (down
from 6th in 2000)
SE
Region: AL
FL GA KY MS NC SC TN VA WV Updated
3/19/06
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| Primary
Performance Indicator |
Percent of Homeowners
with Mortgages
Paying 30% Or More of Income on Housing
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Performance
Trend:
The
trend depicts the degree to which actual
performance has approached the target in
recent years. |
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Comments
• |
NC
housing is gradually becoming less and less affordable,
relative to income. |
• |
Since
2000, the percentage of NC homeowners with mortgages
spending more than 30% of their income for housing
has increased from 25.5% to 29.7%. |
• |
During
the same period, NC's competitive rankings changed
very little, fimproving from 28th to 27th nationally
and dropping from 6th to 7th in the Southeast region. |
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Definition
(What Is Being Measured)
Percent
of owner-occupied households with mortgages paying
more than 30% of their income on housing costs,
such as mortgage payments, other acquisition
costs, real estate taxes, property insurance,
utilities (electricity, gas and water and sewer)
and fuels (oil, coal, kerosene, wood).
Source: US
Census Bureau, American Community Survey |
Relevance
(Why This Is Important)
Affordable
housing is vital for families and communities alike, and is essential
for attracting and retaining business. Housing is generally considered
affordable to the extent that housing costs do not exceed 30% of
income. Excessive housing costs can price many middle-class families,
including teachers, out of many housing markets (e.g., urban areas)
and force longer commutes. |
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| Other
Highlights |
| North
Carolina |
• |
The
housing affordability gap is growing in NC, but NC's housing
continues to be more affordable than in many other states.
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• |
In
2004, the ratio of renters in NC spending at least 30%
of their income on housing hit 41%, the 23rd highest ratio
in the US 6th highest in the region (Source: US Census
Bureau). |
• |
Moreover,
from 1998 to 2003, NC's foreclosure rates increased dramatically.
In 2003, the median monthly housing cost for renter-occupied
housing in NC was the 28th highest in the US and 4th highest
in the region (US Census Bureau). In 2004, NC was ranked
21st in the US in housing affordability by the National
Low Income Housing Coalition. |
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In
2002, 50.7% of homeowners aged 65 or more paid at least
30% of their income for housing, the same as the national
rate, and the 20th highest in the US (Source: AARP Policy
Institute). |
| Southeast
Region |
| National |
• |
The national percentage
of households paying more than 30% of income for housing
has increased, both for renters and owners. With this mounting
housing cost burden, a full-time job may no longer guarantee
American families a decent, affordable place to live, forcing
many communities to make affordable housing a priority. |
| Global |
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Goal
2.2: Promote
adequate & affordable housing |
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