FOR IMMEDIATE RELEASE  July 20, 2004	Contact: Michele Anapol (202) 466-2121 x226 manapol@nhc.org

INCOMES LAG DRAMATICALLY BEHIND HOUSING COSTS, STUDY FINDS
KEY COMMUNITY OCCUPATIONS IN THE SOUTH PARTICULARLY HARD HIT

New Data from NACo, the Center for Housing Policy and NHC for 136 U.S. Metropolitan Areas, 64 Occupations and 30 Counties Provides Key Homeownership and Rental Affordability Findings

Washington, DC – Incomes are lagging dramatically behind housing costs nationwide, while elementary school teachers, police officers, licensed practical nurses, retail salespersons and janitors in Southern Metropolitan areas have been particularly affected, according to the study Paycheck to Paycheck: Wages and the Cost of Housing in America released today by the Center for Housing Policy, the research affiliate of the National Housing Conference (NHC). This annual homeownership and rental study of Metropolitan areas nationwide, and key community occupations, was released in coordination with a new county specific study led by the National Association of Counties (NACo), and funded by Freddie Mac, entitled Paycheck to Paycheck: Wages and the Cost of Housing in Counties, which found that many of the largest and fastest growing counties are also experiencing serious affordable housing problems. Both of these studies were conducted by the Center for Housing Policy, and the Metropolitan area study was funded by the Center.

The detailed findings for the nation’s Metropolitan areas are of particular significance since many experts often focus attention on the Northeast and West as the regions experiencing affordable housing concerns.  However, based on these latest findings, key occupations in the majority of Southern Metropolitan areas studied are dealing with significant housing affordability problems.

Specifically, none of the elementary school teachers, police officers, licensed practical nurses, retail salespersons and janitors living in the following Metropolitan areas could afford to purchase a median priced home based on median income: Atlanta, GA; Baton Rouge, LA; Birmingham, AL; Charleston, SC; Charlotte, NC; Columbia, SC; Greensboro, NC; Jackson, MS; and Melbourne, FL. On the rental side, the Metropolitan area findings also reveal that based on median income retail salespersons and janitors must pay an excessive portion of their income in order to rent a one- or two-bedroom apartment in the majority of cities studied.  

“Although affordability issues continue to be prevalent in areas that we have come to expect, such as the Northeast and West, these latest findings demonstrate the growing homeownership disparities in the South for our nation’s vital community workers,” said NHC Chairman G. Allan Kingston, president and CEO of Century Housing. “Additionally, in all but a handful of the Metropolitan areas studied, the current rental market is forcing retail salespersons and janitors to pay in excess of what is considered affordable in order to rent a one- or two-bedroom apartment based on median income.”

When it comes to the county data presented by NACo, the six occupations studied were police officers, firefighters, elementary school teachers, retail salespersons, janitors and construction laborers. Similar to the findings in the Metropolitan areas outlined above, in the Southern counties of Flagler County (Daytona Beach, FL, Metro Area), Fulton County (Atlanta, GA, Metro Area) and Buncombe County (Asheville, NC, Metro Area), police officers, fire fighters and elementary school teachers cannot afford to purchase a median priced home based on typical salaries.

The county specific rental data also reveals that retail salespersons, janitors and construction laborers in Flagler County and Fulton County must pay an excessive portion of their income in order to rent one- and two-bedroom apartments.  In Buncombe County, janitors are unable to afford a one-bedroom apartment, and a retail salesperson and construction laborer must also pay more than what is considered affordable to rent a two-bedroom apartment based on typical salaries.

These county findings were the result of a survey of some of the nation’s largest and fastest growing counties, and ultimately revealed a growing concern about the lack of affordable housing for low- and moderate-income working families in urban, suburban and rural counties. In fact, approximately 85 percent of the county officials noted that most new housing in their county is geared to middle- and upper-income households, not working families. Additionally, the most pervasive barriers to creating affordable housing, reported by three-quarters of the counties, were “Not in My Backyard” attitudes (NIMBY-ism) and lack of public funding.

“This survey shows that the lack of affordable housing in America’s counties is a growing problem, affecting working families in urban, suburban and rural areas,” said NACo President and Lake County, Ill. Board Member Angelo D. Kyle. “The men and women who police our streets, fight our fires and educate our children deserve the opportunity to live in the community in which they work. The National Association of Counties will continue to work with the Administration, Congress and industry leaders to push for sound affordable housing policy.”

“NACo commends Freddie Mac for its funding of this survey and of our continued relationship in supporting affordable housing for all Americans,” Kyle continued.

“Freddie Mac puts its mission to make home possible for more of America’s hard working families first.  The importance of that mission is thrown into clear focus by the results of these new studies,” said Jim Park, Vice President of Industry Relations and Housing Outreach at Freddie Mac. “I want to thank NACo, the Center for Housing Policy and NHC for providing such a thorough and comprehensive picture of today’s affordable housing challenges.”

The overall number of Metropolitan areas studied annually by the Center for Housing Policy has been expanded this year from 60 to 136 markets. These latest findings not only include the five key community positions traditionally studied by the organization, and outlined above, but a total of 64 occupations ranging from waitresses to school bus drivers, hairdressers and child care workers.  This new Metropolitan area data is provided in an interactive, online format that allows users to select and then identify housing affordability for the wide-range of occupations outlined. To customize a detailed report for your area, please go to www.nhc.org.

In order to provide the county data, in April of 2004 NACo and the Center for Housing Policy conducted a survey drawing from a sample of some of America’s largest and fastest growing counties. The survey covered a variety of issues concerning housing for working families. This data detailing homeownership and rental market data, narrowed down to a total of 30 counties nationwide, is provided in hard copy, and online publication format, and is being released today at NACo’s Annual Conference in Maricopa County, AZ. To view the full NACo publication, please logon to www.naco.org.

It is important to note that low- to moderate-income working families are defined as those households earning at least the full-time minimum wage (nationally $10,712) up to the median household income in the county (the national median household income is $42,209).  In addition, a rental unit is considered affordable if rent does not exceed 30 percent of income. And conventional mortgage underwriting guidelines require that not more than 28 percent of household income should be used to pay the mortgage, property taxes and insurance.

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