Center for Housing Policy

NEARLY A QUARTER OF WORKING HOUSEHOLDS SPEND MORE THAN HALF THEIR INCOME ON HOUSING
Shrinking incomes outpace falling homeownership costs; renters face rising costs on tightening household budgets
A new study by the Center for Housing Policy confirms that falling home prices have not solved the housing affordability problems of the nation's working households. In fact, the Center's Housing Landscape 2012 report found that the share of working households paying more than half their income for housing rose significantly between 2008 and 2010 for both renters and owners. This annual report explores the latest Census data from 2008 to 2010 on housing costs and income, including housing cost burden data from the 50 largest U.S. metropolitan areas, all 50 states and the District of Columbia. Among other conclusions, Housing Landscape 2012 finds that nearly one in four working households in the U.S. spends more than half of total income on housing.

Housing cost burden for working households grew over the two-year period studied largely due to falling incomes and rising rental housing costs. Report author Laura Williams says rents rose due to increased demand for rental housing which has outstripped supply, partly due to the crisis on the homeownership side of the market.
"More and more people are interested in renting," Williams remarked. "Some prefer it because it allows them to be more mobile in a tough job market. Others are postponing purchasing a home or facing difficulties obtaining a mortgage. Given the long lead times involved in responding to increased demand with increased supply, the rental market has tightened somewhat and rents increased."

For working homeowners over the same two-year period, incomes slid more than twice as much as housing costs. In fact, incomes for working homeowners fell even more sharply than they did for working renters. Jeffrey Lubell, executive director of the Washington-based Center for Housing Policy, said this phenomenon was primarily due to a drop in average hours worked among moderate-income homeowners.

"The data show that homeowners have been hit hard by the housing crisis in more ways than just lost equity," Lubell explained. "Many working homeowners have been laid off or had their hours cut."

Additionally, the housing costs of most working homeowners are still tied to homes bought before the sharp drop in home prices and thus do not reflect today's lower home purchase prices.

"Most of today's homeowners bought their homes at a time when housing prices were much higher than they are today," Lubell continued. "As a result, their housing costs have not declined nearly as much as you would expect from looking at the broader market declines in home sale prices."

Read the Housing Landscape 2012 report

Key National Findings
Nearly one in four working households spends more than half of its income on housing. The share of working households with a severe housing cost burden increased significantly between 2008 and 2010, rising from 21.8 percent to 23.6 percent.
Despite falling home prices and values, housing affordability worsened for working homeowners. Median housing costs for working homeowners declined modestly between 2008 and 2010. Meanwhile, the incomes of working homeowners declined even more, driven in large part by a decrease in the median number of hours worked per week between 2008 and 2010.
Working renters fared even worse, with both increased rents and decreased incomes between 2008 and 2010. While incomes increased somewhat between 2009 and 2010, over the two-year period renters saw a four percent decline in household income. The housing costs of renters rose over the two-year period by four percent.
State and Local Findings
Between 2008 and 2010, the share of working households with a severe housing cost burden increased significantly in 24 states and decreased significantly in only one state: Maine. Eight other states that saw no significant increase in the percentage of such households already had steadily high rates of severe housing cost burden.

Among the 50 states and the District of Columbia, the following five had the highest share of working households with a severe housing cost burden in 2010:

California 34%
Florida 33%
New Jersey 32%
Hawaii 30%
Nevada 29%

Among the 50 largest metropolitan areas, the following five metropolitan areas had the highest share of working households with a severe housing cost burden in 2010:

Miami-Fort Lauderdale-Pompano Beach, FL 43%
Los Angeles-Long Beach-Santa Ana, CA 38%
San Diego-Carlsbad-San Marcos, CA 37%
Riverside-San Bernardino-Ontario, CA 35%
New York-Northern New Jersey-Long Island, NY-NJ-PA 35%

A closer look at the data reveals that the share of working households with a severe housing cost burden increased significantly over the two years studied in 19 of the 50 largest metropolitan areas, yet decreased significantly only in the Riverside, Calif., area. Of these 19 metro areas, 13 are located in the South and two more are in California. Overall, the level of severe housing cost burden among working households displayed a high level of variation at the metropolitan level. Levels ranged from a high of 43 percent in the Miami area to a low of 15 percent in Pittsburgh.

Methodology

This report is based on Center for Housing Policy tabulations of American Community Survey (ACS) data collected by the U .S. Census Bureau in 2008, 2009, and 2010. Estimates in this report were generated by the Center using Public-Use Microdata Sample (PUMS) population and housing files made publicly available by the Census Bureau. Each file includes roughly 40 percent of the full ACS sample for its respective year, resulting in over 3 million records in each population file and over 1.2 million records in each housing file.The Center for Housing Policy analyzed these data to develop national, state, and metropolitan area estimates of working households with severe housing cost burdens.

Notes: For purposes of this report, "working households" are defined as those with a household income of no more than 120 percent of the area median income in which the household members worked an average of at least 20 hours per week for the preceding 12 months. "Severe housing cost burden" is defined as monthly housing costs (including utilities) exceeding 50 percent of household income.

Acknowledgements

The Center for Housing Policy gratefully acknowledges the support of the John D. and Catherine T. MacArthur Foundation for this work. Any opinions or conclusions expressed, however, are those of the authors alone.

Learn more about the National Housing Conference and its research affiliate the Center for Housing Policy.

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Scientific American: Homeless Project Residents Drink Less If Booze Ban Is Lifted

The magazine Scientific American provides more evidence that providing safety for the first saves money.
http://www.scientificamerican.com/article.cfm?id=homeless-project-residents-drink-less

BBC looks at US poverty

The following link takes you to a 30-minute You Tube video where the BBC looks at homelessness and poverty in the richest country in the world.

http://www.youtube.com/watch?feature=player_embedded&v=suJCvkazrTc#!

NJAR®-Approved Foreclosure Bill Going through Legislative Process

On February 16, 2012, the Senate Economic Growth Committee approved S-1566, the New Jersey Residential Foreclosure Transformation Act. This legislation, supported by NJAR^®, establishes the New Jersey Foreclosure Relief Corporation, which will be able to work with municipalities to help them acquire foreclosed properties, which will in turn be used to provide affordable housing. NJAR^®successfully requested an amendment to this bill to ensure that one of the members of this corporation will be a real estate licensee. This legislation is now before the Senate Budget and Appropriations Committee, and it must be approved before it can be sent to the full State Senate for a vote. The legislation must also be approved in the General Assembly.   

Monarch Housing releases homeless reports

If the links do not work go to Monarch's Website: http://monarchhousing.org/tag/monarch-housing-associates/

Monarch Releases Regional Homeless Reports

by Kate M. Kelly on February 20, 2012

Key Findings Provide Local Communities
With Tool for Data Driven Planning

Using data from New Jersey’s Homeless Management Information System (HMIS) and dividing the state into three regions, Monarch Housing Associates has created three Regional – Northern, Central, and Southern – Homeless Assessment Reports.

Key findings include the following homelessness household population totals:

• 6,830 in the Northern Region;
• 3,476 in the Central Region; and
• 2,675 in the Southern Region.

Other findings include data about subpopulations, information about the causes of homelessness, and additional demographics that paint the picture of the homeless population.

With the implementation of the HEARTH Act, resources for homeless programs will be tied to a community’s ability to effectively reduce the number of people experiencing homelessness and implement programs and processes that can successfully end homelessness.

The use of local data on the homeless population and the programs within a community will play a critical role in planning and program development in order to end homelessness and will be essential for basic compliance with HEARTH Act regulations. These reports provide a snapshot of the characteristics of homeless households in the three regions.

While these reports provide very basic information about the homeless population in each region, they may serve as the foundation of a more in depth review of the population and its needs. Communities in New Jersey are well positioned to move towards data driven planning with the wealth of information available through HMIS. We hope this report will serve as an example of how to take the first step in using data to transform the system.

To view the reports use these links:

• Northern Region
• Central Region
• Southern Region

If you need more information about the reports, click here to send us an email.

Family Promise of Southern OC, part 2

We still are in need of securing hosts sites for the weeks of 3/4 and 3/11. We do not want to put our guests in a motel. If any host and or support congregation can assist us with this please let us know and if a host is able to support this we may need to have volunteers to provide meals and overnight accommodations. If you are interested in any way please contact us ASAP.

A big thanks to Lacey United Methodist Church for hosting our guests this week, all the volunteers including folks from Forked River Presbyterian Church and for Jackie the new coordinator for doing a great job!

Thank you to the Greenbriar Oceanaire Womens's Club for donating Walmart Gift Cards for our families that will be used for clothing and personal items.

Family Promise of SOC
338 South Main Street
Barnegat, NJ 08005
609-994-3317
familypromisesoc@gmail.com

Family Promise of Southern Ocean County

As some of you may recall, Family Promise SOC received an approval of a grant to help 2 families with housing vouchers from HUD through the county. It has been a long wait but we finally are going to be able to assist the first family with the housing voucher. The family will receive assistance from Lakewood Housing Authority with the voucher and Family Promise will provide case management services to the family. I had the great pleasure of sharing this news on the phone to Melissa (our past guest) and after I told her that she has been approved to receive the voucher all of a suddenly there was silence... and then in a quiet voice I could hear Melissa crying with tears of joy! Melissa and her 4 children will finally have "a place to call home". If anyone knows of any homes for rent in the Toms River area please let me know, as they must find a place within 60 days.