Several weeks ago when speaking at an event in Vail, Colorado, I was asked what I do by a hotel staffer. When she found out I was a real estate economist, she then said how tragic it was that people in Vail could not afford housing and how difficult it was to live there. My thoughts immediately went to how ironic it was this individual was living in one of the top ski and mountain towns in America and yet felt a victim due to high housing costs. It was her choice to live (and enjoy) the beauty of Vail. She felt due an entitlement.
In all cities across the country, housing is a challenge for many. Low income people (and in many cities the middle class) have an affordability issue with respect to housing.
A low income household in the U.S. is defined as those making less than 80 percent of the local median income. By definition, one-half of all people make less than the median income. San Francisco has the highest low-income definition point with a median income at or below $105,350. No kidding. Most of our brains have a difficulty classifying anyone earning six figures as being low income. Still, housing is in severe short supply in San Francisco making it one of the least affordable cities in the U.S.
Over the decades, HUD has developed numerous housing programs to assist in accommodating those with lower incomes. But in no way have they been able to approach meeting the housing needs of those in the low-income bracket.
To get a perspective as to the void in low-income housing, Rent to Own Labs ( they specialize in helping homebuyers find rent-to-own homes), analyzed US Census Bureau and HUD data to match up the supply and demand of low income housing. The following table shows the top-10 cities with the greatest percentage of HUD housing stock versus the number of households defined as low income. Charleston, West Virginia has enough low-income HUD housing stock to accommodate 45.1 percent of the households defined as low income – the best in the country.
Obviously there are major challenges to millions of households across the U.S. when it comes to housing, but even more-so at lower income levels.
To read the entire article from HousingWire on the analysis completed by Rent to Own Labs click https://www.housingwire.com/articles/40745-top-10-cities-where-low-income-housing-sees-best-performance?eid=311692759&bid=1818900
No doubt the 9th best supply-to-demand percentage of low income housing in West Palm Beach, Florida caught the attention of many. Several of you are probably asking why would the U.S. subsidize housing in such a locale? It’s real simple. By defining those earning 80 percent or less than the local median income as low income, every city in the country can qualify for low income housing.
As the saying goes in research, “If you agree with my assumptions you therefore must agree with my conclusions.”
It’s rare that I agree with the assumptions.
Ted