National Analysis of Housing Affordability, Adequacy, and Availability: A Framework for Local ...

229 Pages·2010·8.17 MB·English

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The contents ofthIS report aretheVIews ofthecontractorand do notnecessarIlyreflecttheVIews
orpolIcIes oftheDepartmentofHousmg andUrbanDevelopmentortheU S Government
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National Analysis of Housing
Affordability, Adequacy, and
Availability: A Framework for
Local Housing Strategies
by
Amy Bogdon
Joshua Silver
Margery Austin Turner
with
Kara Hartnett
Matthew VanderGoot
Prepared by:
The Urban Institute
Prepared for:
U.S. Department of Housing and
Urban Development
November 1993
FOREWORD
Local communities are in a better positIOn than HUD to diagnose their housing needs and
allocate available resources among them However, m order to make informed choices,
policymakers and CItizens must be able to acquire, analyze, and apply timely data on housing
conditions and trends in their communities. NatlOnal AnalySIS of Housmg Affordability,
Adequacy, andAvailabIlzty: A FrameworkforLocalHousmg Strategzes, prepared for HUD by
the Urban InstItute, blends mformatIOn and guidance to help develop this capacity.
This report prOVIdes a statIstical overvIew of U.S. housing markets and problems that draws
upon some ofthe most authoritative, up-to-date informatIon available To assist local planmng
efforts, HUD and the U.S Bureau of the Census recently provided States and entitlement
communitieswith specialtabulationsfrom 1990 Census datathatdescribe keylocaldemographJ.c
and housmg stockcharacteristIcs. This volume presents national aggregations ofthese data The
profile of national and regional housmg condItIons they yIeld is valuable both m Itself and as a
set of statIstical benchmarks to whIch data on local conditIOns may be compared.
However, NatlOnal Analysis is not intended to be merely descriptIve By framing a series of
basic questIons about a commumty's housmg conditions and illustrating how data from the
special tabulations and other sources may be used to answer them, it helps guide commumtIes
through the process of conducting a thorough, cntlcal assessment of housmg needs that may
serve as the basis for formulating appropriate local strategies and guiding public investment. A
forthcoming companion volume will prOVIde detailed examples of this type of housmg market
analysis for five prototype jUriSdICtions.
An mformed citizenry and a responsive local government are both essentIal to successful
community action. This publIcation reflects HUD's commitment to ensuring that local
governments, private groups, and individuals have access to the informationand expertise they
need to participate effectIvely in the planning process.
Michae A Stegman
Assistant Secretary for Policy
Development and Research
TABLE OF CONTENTS
1. BACKGROUND AND INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1-1
The NationalAffordable HousingAct and the CHAS Requirement 1-3
History ofFederallyMandated Housing Plans 1-5
Scope and Organization ofthis Report 1-8
2. HOUSING CONDITIONS AND PROBLEMS IN 1990 1-11
Number and Characteristics ofHouseholds . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-14
Population and Households 2-15
Household Size 2-15
Household ComposItIon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-19
Household Race and Ethniclty 2-21
Household incomes 2-23
Concentrations ofMinority Households. . . . . . . . . . . . . . . . . . . .. 2-28
Household Tenure Choice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-31
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-34
Size and Characteristics ofthe Housing Inventory . . . . . . . . . . . . . . . . . . . . . .. 2-35
Size ofthe Housing Stock ...'. . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-37
Size Distribution ofHousing Units 2-37
Physical Condition .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-38
Age ofStock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-41
Housing Costs and HousingAffordability 2-41
Housing Mismatch 2-51
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-56
Housing Problems and Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-56
Incidence ofHousing Problems . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-57
Excessive Housing Cost Burdens 2-61
Overcrowding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. 2-63
Housing inadequacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-65
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2-66
TABLE OF CONTENTS
{Continued}
3. HOUSING MARKET ANALYSIS: FRAMEWORK FOR LOCAL STRATEGY
DEVELOPMENT 3-69
Which Households ExpeIience the Most Severe or Widespread Housing
Problems? 3-70
How Many HouseholdsAlready Receive HousingAssistance? . . . . . . . . .. 3-73
What are the Underlymg Causes ofLocal Housing Market Problems? 3-75
HousingAvailability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3-77
HousingAdequacy .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3-83
HousingAffordability 3-85
HousmgAccessibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3-87
Which Housmg Problems Can BeAddressed Without Subsidies or Direct
FinancialAssistance? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3-88
What Groups of Households Most Need Public SectorAssistance to Meet
Their Housing Needs? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3-91
What Housing Activities Are Best Suited to Addressing PIioIity Housing
Needs in the Community? 3-93
Subsidized Production ofNew Housing Units 3-95
Subsidized HousingAcquisition and Rehabilitation . . . . . . . . . . .. 3-96
DirectAssistance to Households . . . . . . . . . . . . . . . . . . . . . . . . .. 3-97
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3-98
BIBLIOGRAPHY 101
APPENDIX DEFINITIONS
DATAAPPENDIX
• I
List ofAppendix Tables
I Location ofHouseholds
2 Distribution ofHouseholds by Household Size
3A Distribution ofHouseholds by HouseholdType
3B Percent DistributionofHouseholds by Household Type
3C Distribution ofOwner-Occupants by Household Type
4 Household RacejEthnicl1y
5 Growth in Median Income
6A Households by Income Group
6B Percent DistnbutIon ofHouseholds by Income Group
6C PercentDistribution ofRenter Households by Income Group
6D Percent Distribution ofOwner Households by Income Group
7A Household RacejEthnicityby Income Group
7B Percent Distribution of Households by RacejEthruclty and Income
Group
8 Income DistributionbyTenure
9A Tenure by Race, Income, and HouseholdType
9B Tenure by Race
9C Owner Households by Race and HouseholdType
10 Distribution ofUnits by Size and Tenure
llA Units Lacking Complete Kitchen or Plumbing
llB AHS Measures ofUnit Inadequacy
I2A Distribution ofUnits byYear Built
12B Percent Distribution ofUnits byYear Built
13 Changes in Monthly Housing Costfor Renters
14 Changes in Monthly Housing Costfor Owners
15 Private NewHousing Starts
16 Changes in Median House Value
17A Distribution ofHousing Units by UnitAffordabl1ity
17B Percent Distribution ofHousing Units by Units Affordability
18A Renter Households with One or More Housing Problems by Income
Group
18B Distribution ofRenter Households by Income Group
19A Owner Households with One or More Housing Problems by Income
Group
19B Distribution ofOwner Households by Income Group
20A Owner Households Paying Over30 Percent ofIncome for Housmg by
Income Group
20B RenterHouseholds Paying Over30 PercentofIncome for Housmg by
Income Group
21A Owner Households Paying Over 50 Percent Income for Housing by
Income Group
21B Renter Households Paying Over 50 Percent Income for Housing by
Income Group
22 Households with One or More Housing Problems Paying over30% of
Income for Housingby Income Group
23A Owner Households III Overcrowded Units by Income Group
23B RenterHouseholds in Overcrowded Urutes by Income Group
24A Owner Households in Moderate or Severely Inadequate Housing by
Income Group
24B AHS Count ofOwner Households by Income Group
24C Renter Households in Moderately orSeverelyInadequate Housingby
Income Group
24D AHS Count ofRenter Households by Income Group
25A Households with One or More Housing Problems by Income Group
and Household Type
25B Households by Income Group and HouseholdType
26A Households Paymg More than 30 Percent ofIncome for Housmg by
Income Group and HouseholdType
26B Households Paying More than 50 Percent ofIncome for Housmg by
Income Group and HouseholdType
26C Households Living in Overcrowded Units by Income Group and
Household Type
Residential Segregation Indexes for MetropolitanAreas
27A HouseholdWIth OneorMore HousingProblemsbyIncome Group and
RacejEthnicHy
27B Households by Income Group and Race/Ethnicity
28 ResIdential Segregation DissimilantyIndexes for Metropohtan
Areas
29A Rental Units WIth Housing Costs LessThan or Equal to FMR
29B PercentDistributionofRentalUnitswithHousmgCosts LessThanor
Equal to FMR
30 Rental HousingMismatch
31 Owner Housing Mismatch
32 Vacancy Rates bySize and UnitTenure
33A AsSIsted Householders by Region and Race/EthnicIty
33B Type ofHouseholdAssistance by Region and Race/Ethnicity
33C Assisted Households byArea and Race/Ethrucity
33D Assisted Households in Renter Units BUIltBefore 1950
33E Median Income ofAssisted RenterHouseholds by Region
33F Rent Levels and Size Distribution ofAssisted RenterUrnts
1. BACKGROUND AND INTRODUCTION
TheNationalAffordable HousingAct (NAHAl of1990 requires states andlocalities
to develop a Comprehensive Housing Affordability Strategy (CHASl, identifYing a
commuruty's current and anticipated needs for affordable and supporb.ve housmg and
outlming a strategy for addressing those needs. The starb.ng pomt for a CHAS is a
I
systematicanalysis ofthelocal housingmarket, including characteristics ofhouseholds
and the housing stock, estimates of housing problems--particularly among low- and
moderate-income households,--and diagnosis of market Imbalances underlymg these
"
problems. The housing market analysis IS mtended to serve as a factual baSIS for a
commuruty's programmatic strategy and spendmg pnorities. It should also provide
evidence to inform local deciSIOns about whIch housing market problems warrant
mterventIOn, and how scarce resources should be allocated among different housmg
needs and activities'>
ThIs report analyzes national housing conditions and needs, using specIal
tabulations of 1990 decennial Census data.3 Its purpose is twofold. FIrst, It provides
basic Infonnation about housing conditions and trends at the national and regIOnal
levels, to serve as context against which states and localities can compare their
situations. Second, by highlighting key natIOnal conditIOns and trends and regIOnal
variations m housmg circumstances, it illustrates ways m which communities
throughoutthe U.S. maydescribe and then analyze theirlocal housingmarkets inorder
to develop strategies for addressing housing problems and needs. The report analyzes
PublicLaw 101-625,Title II, section 105
This report Is not Intended to provide comprehensive Information or Instructions on the CRAS
2
process or requirements. see U.S. Department of Housing and Urban Development, "InstructIons for
DevelopingandCompletinga Five-YearComprehensiveHousingAffordabllltyStrategy(CRAS)"InCHASand
anAnnualPerformanceReportforLocalJurisdictions, Washington, D.C.
3 ThisreportexpandsonKathrynP. Nelson, "HousingAssistanceNeedsandtheHousingStock' Data
for Comprehensive HousingAffordabilltyStrategies,"JournaloftheAmencanPlannmgAssoclatwn, vol 58,
1(Winter) 1992 ThatpaperusednationaldatafromtheAmericanHousIngSurveytoillustrateHUD'splans
fordevelopingspecialtabulationsof1990CensusdatatomeetbasicCRASdatarequirements,andtoexplore
the unplications ofhousingmarketconditionsforlocalpolicychoicesamongprogramsdeSIgnedtoaddress
worstcase needs
1
housing market conditions and dynamics. including population and households. the
housing stock. and problems confrontinglow- and moderate-income households.4
State and local CHAS preparers will draw on a wide range of data sources to
prepare meaningful analyses oftheir local housing markets. The 1990 Census should
bea keystartmgpOint. providingmuchofthedatareqUiredtoassesshousingconditions
and problems. particularly among low- and moderate-income households.5 The
DepartmentofHousingandUrbanDevelopment(HUD) has collaboratedWIththeCensus
Bureau to develop special tabulations ofthe 1990 Census data essential to preparing a
CHAS. These special tabulations have been made aVaIlable to state and local
junsdictions in two forms. A limited setofkey data items have been pnnted on a state­
by-state basis. WIth entries for all counties and for cities WIth populations of25.000 or
more. In addition. moreextensivetabulations areavailable onCD-ROM forjurisdictlons
that wish to conduct more detailed analysis than the data book tables WIll support.
The special Census tabulations were made available in July 1993. This report
utilizesthespecialtabulationsfrom theCD-ROM. alsoreferredtoasthe CHASdatabase.
to illustrate housing market analysis with national and regional averages.6 After
showing how the data tabulations can be employed to document Significant housing
marketconditionsand housingproblems. wedISCUSSways inwhichsystematichousing
marketanalyses caninformlocaldebateanddecisionsabouthousingneeds. community
priorities. and mechanisms for public sector intervention.
• ForassistanceInanalyzingproblemsofhomelessnessandpersonswithspecial housingneeds, see
Martha Burt, PracticalMethodsJar Counting Homeless People'A ManualJorstale andLocalJunsdJctions.
InteragencyCouncUontheHomelessandU.S.DepartmentofHousingandUrbanDevelopment,Washington,
D.C. 1992.Also see theHomelessandSpecialNeedsAppendicesofICFInc's CHASSpnngTrammg, a eRS
workshopsponsoredbyHUD's OfficeofAffordable HousingPrograms, 1993.
In particular, special tabulations are necessaryto group Census data according to HUO's Income
5
categories, soastoprovideaccurateestimatesofneedsamonglow-andmoderate-Incomehouseholdsthat
are eliglble for assistance undervarious HUD programs. These tabulations are also necessary to obtain
accurateestimatesofthenumberandcharacteristicsofhousingunitsaffordableforhouseholdsatdifferent
Income levels.
6 Foranillustrationofhousingmarketanalysis In five proto1;ypejUrisdictions, seeAmyBogdonand
MargeryAustinTurner,PrototypeAnalysisoJHousfngAffordabUtty,Adequacy,andAvailabUtty:AFramework
Jor Local Housfng straiegtes. Washington, D.C.: U.S. Department of Housing and Urban Development,
forlhcomlng, 1993.
2