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the Campaign for Affordable Housing
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Thank you.
the Campaign for Affordable Housing
THE TRUTH ABOUT AFFORDABLE
HOUSING
presented by
the Campaign for Affordable Housing
the Campaign for Affordable Housing
Taking Action to Solve America’s Housing Crisis
the Campaign for Affordable Housing
USDA Photo
the Campaign for Affordable Housing
In recent decades, home prices and rental rates have increased faster than income in most parts
of the country, increasing the need for affordable housing.
the Campaign for Affordable Housing
Wages and the Cost of Housing in Los Angeles, California(Los Angeles, CA Metropolitan Area)
Rental Market2005
Fair Market Rent2
1BR $900/Month2BR $1,124/Month
Homeownership Market2005
Median Priced Home1
(Single- and Multi-Family)
$430,000
$136,366
$49,515
$41,083
$51,166
Annual IncomeNeeded3
Police Officer5
Firefighter5
Elementary SchoolTeacher5
Typical Annual Salaries (2005)
$17.31
$21.62
$12.80
$12.35
Hourly WageNeeded to Afford4
Retail Salesperson5
Janitor5
Construction Laborer5
Typical Hourly Wage (2005)
$18.18
1 Bedroom
2 Bedrooms
1Data on the median-priced home are from the National Association of Home Builders' Housing Opportunity Index for the first quarter (1Q) of 2005.2Rental data are from the U.S. Department of Housing and Urban Development's report on Fair Market Rents for the year 2005 and are based on a survey of recently occupied units. 3The annual income needed to qualify for a mortgage was calculated using the average prevailing interest rate, assumes a 10 percent downpayment and the use of private mortgage insurance, and includes principal, interest, taxes and insurance. 4The Hourly Wage Needed to Afford is the hourly wage that must be earned so that this rent does not exceed 30 percent of income, a standard measure of affordability. It is based on a concept developed by the National Low Income Housing Coalition. 5Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com.
Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference.
the Campaign for Affordable Housing
1Data on the median-priced home are from the National Association of Home Builders' Housing Opportunity Index for the first quarter (1Q) of 2005.2Rental data are from the U.S. Department of Housing and Urban Development's report on Fair Market Rents for the year 2005 and are based on a survey of recently occupied units. 3The annual income needed to qualify for a mortgage was calculated using the average prevailing interest rate, assumes a 10 percent downpayment and the use of private mortgage insurance, and includes principal, interest, taxes and insurance. 4The Hourly Wage Needed to Afford is the hourly wage that must be earned so that this rent does not exceed 30 percent of income, a standard measure of affordability. It is based on a concept developed by the National Low Income Housing Coalition. 5Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com.
Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference.
Wages and the Cost of Housing in Seattle, Washington(Seattle, WA Metropolitan Area)
Rental Market2005
Fair Market Rent2
1BR $693/Month2BR $834/Month
Homeownership Market2005
Median Priced Home1
(Single- and Multi-Family)
$275,000
Annual IncomeNeeded3
Police Officer5
Firefighter5
Elementary SchoolTeacher5
Typical Annual Salaries (2005)
$87,210
$46,664
$38,718
$48,220
$13.33
$16.04
$12.07
$11.64
Hourly WageNeeded to Afford4
Retail Salesperson5
Janitor5
Construction Laborer5
Typical Hourly Wage (2005)
$17.13
1 Bedroom
2 Bedrooms
the Campaign for Affordable Housing
1Data on the median-priced home are from the National Association of Home Builders' Housing Opportunity Index for the first quarter (1Q) of 2005.2Rental data are from the U.S. Department of Housing and Urban Development's report on Fair Market Rents for the year 2005 and are based on a survey of recently occupied units. 3The annual income needed to qualify for a mortgage was calculated using the average prevailing interest rate, assumes a 10 percent downpayment and the use of private mortgage insurance, and includes principal, interest, taxes and insurance. 4The Hourly Wage Needed to Afford is the hourly wage that must be earned so that this rent does not exceed 30 percent of income, a standard measure of affordability. It is based on a concept developed by the National Low Income Housing Coalition. 5Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com.
Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference.
Wages and the Cost of Housing in Atlanta, Georgia(Atlanta, GA Metropolitan Area)
Homeownership Market2005
Median Priced Home1
(Single- and Multi-Family)
$165,000
$52,326
$44,077
$36,571
$45,547
Annual IncomeNeeded3
Police Officer5
Firefighter5
Elementary SchoolTeacher5
Typical Annual Salaries (2005)
Rental Market2005
Fair Market Rent2
1BR $750/Month2BR $834/Month
$14.42
$16.04
$11.40
$10.99
Hourly WageNeeded to Afford4
Retail Salesperson5
Janitor5
Construction Laborer5
Typical Hourly Wage (2005)
$16.18
1 Bedroom
2 Bedrooms
the Campaign for Affordable Housing
1Data on the median-priced home are from the National Association of Home Builders' Housing Opportunity Index for the first quarter (1Q) of 2005.2Rental data are from the U.S. Department of Housing and Urban Development's report on Fair Market Rents for the year 2005 and are based on a survey of recently occupied units. 3The annual income needed to qualify for a mortgage was calculated using the average prevailing interest rate, assumes a 10 percent downpayment and the use of private mortgage insurance, and includes principal, interest, taxes and insurance. 4The Hourly Wage Needed to Afford is the hourly wage that must be earned so that this rent does not exceed 30 percent of income, a standard measure of affordability. It is based on a concept developed by the National Low Income Housing Coalition. 5Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com.
Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference.
Wages and the Cost of Housing in Chicago, Illinois(Chicago, IL Metropolitan Area)
Homeownership Market2005
Median Priced Home1
(Single- and Multi-Family)
$230,000
$72,940
$47,805
$39,664
$49,399
Annual IncomeNeeded3
Police Officer5
Firefighter5
Elementary SchoolTeacher5
Typical Annual Salaries (2005)
Rental Market2005
Fair Market Rent2
1BR $803/Month2BR $906/Month
$15.44
$17.42
$17.55
$11.92
Hourly WageNeeded to Afford4
Retail Salesperson5
Janitor5
Construction Laborer5
Typical Hourly Wage (2005)
$12.36
1 Bedroom
2 Bedrooms
the Campaign for Affordable Housing
1Data on the median-priced home are from the National Association of Home Builders' Housing Opportunity Index for the first quarter (1Q) of 2005.2Rental data are from the U.S. Department of Housing and Urban Development's report on Fair Market Rents for the year 2005 and are based on a survey of recently occupied units. 3The annual income needed to qualify for a mortgage was calculated using the average prevailing interest rate, assumes a 10 percent downpayment and the use of private mortgage insurance, and includes principal, interest, taxes and insurance. 4The Hourly Wage Needed to Afford is the hourly wage that must be earned so that this rent does not exceed 30 percent of income, a standard measure of affordability. It is based on a concept developed by the National Low Income Housing Coalition. 5Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com.
Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference.
Wages and the Cost of Housing in Wichita, Kansas(Wichita, KS Metropolitan Area)
Homeownership Market2005
Median Priced Home1
(Single- and Multi-Family)
$105,000
$33,299
$43,068
$35,734
$44,504
Annual IncomeNeeded3
Police Officer5
Firefighter5
Elementary SchoolTeacher5
Typical Annual Salaries (2005)
Rental Market2005
Fair Market Rent2
1BR $481/Month2BR $624/Month
$9.25
$12.00
$11.14
$10.74
Hourly WageNeeded to Afford4
Retail Salesperson5
Janitor5
Construction Laborer5
Typical Hourly Wage (2005)
$15.81
1 Bedroom
2 Bedrooms
the Campaign for Affordable Housing
1Data on the median-priced home are from the National Association of Home Builders' Housing Opportunity Index for the first quarter (1Q) of 2005.2Rental data are from the U.S. Department of Housing and Urban Development's report on Fair Market Rents for the year 2005 and are based on a survey of recently occupied units. 3The annual income needed to qualify for a mortgage was calculated using the average prevailing interest rate, assumes a 10 percent downpayment and the use of private mortgage insurance, and includes principal, interest, taxes and insurance. 4The Hourly Wage Needed to Afford is the hourly wage that must be earned so that this rent does not exceed 30 percent of income, a standard measure of affordability. It is based on a concept developed by the National Low Income Housing Coalition. 5Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com.
Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference.
Wages and the Cost of Housing in Tuscon, AZ(Tuscon, AZ Metropolitan Area)
Homeownership Market2005
Median Priced Home1
(Single- and Multi-Family)
$177,000
$56,132
$41,533
$34,460
$42,918
Annual IncomeNeeded3
Police Officer5
Firefighter5
Elementary SchoolTeacher5
Typical Annual Salaries (2005)
Rental Market2005
Fair Market Rent2
1BR $524/Month2BR $673/Month
$10.08
$12.94
$10.74
$10.36
Hourly WageNeeded to Afford4
Retail Salesperson5
Janitor5
Construction Laborer5
Typical Hourly Wage (2005)
$15.25
1 Bedroom
2 Bedrooms
the Campaign for Affordable Housing
1Data on the median-priced home are from the National Association of Home Builders' Housing Opportunity Index for the first quarter (1Q) of 2005.2Rental data are from the U.S. Department of Housing and Urban Development's report on Fair Market Rents for the year 2005 and are based on a survey of recently occupied units. 3The annual income needed to qualify for a mortgage was calculated using the average prevailing interest rate, assumes a 10 percent downpayment and the use of private mortgage insurance, and includes principal, interest, taxes and insurance. 4The Hourly Wage Needed to Afford is the hourly wage that must be earned so that this rent does not exceed 30 percent of income, a standard measure of affordability. It is based on a concept developed by the National Low Income Housing Coalition. 5Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com.
Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference.
Actual Income vs. Income Needed to Purchase Median Priced Home
MedianHome Price1
IncomeNeeded2 Police Officer3 Firefighter3
Elementary School Teacher3
Location 2005 2005 2005 Diff 2005 Diff 2005 Diff
Los Angeles, CA $430,000 $136,366 $49,515 ($86,851) $41,083 ($95,283) $51,166 ($85,200)
Seattle, WA $275,000 $87,210 $46,664 ($40,546) $38,718 ($48,492) $48,220 ($38,990)
Atlanta, GA $165,000 $52,326 $44,077 ($8,249) $36,571 ($15,755) $45,547 ($6,779)
Chicago, IL $230,000 $72,940 $47,805 ($25,135) $39,664 ($33,276) $49,399 ($23,541)
Wichita, KS $105,000 $33,299 $43,068 $9,769 $35,734 $2,435 $44,504 $11,205
Tuscon, AZ $177,000 $56,132 $42,918 ($13,214) $34,460 ($21,672) $42,918 ($13,214)
the Campaign for Affordable Housing
1Data on the median-priced home are from the National Association of Home Builders' Housing Opportunity Index for the first quarter (1Q) of 2005.2Rental data are from the U.S. Department of Housing and Urban Development's report on Fair Market Rents for the year 2005 and are based on a survey of recently occupied units. 3The annual income needed to qualify for a mortgage was calculated using the average prevailing interest rate, assumes a 10 percent downpayment and the use of private mortgage insurance, and includes principal, interest, taxes and insurance. 4The Hourly Wage Needed to Afford is the hourly wage that must be earned so that this rent does not exceed 30 percent of income, a standard measure of affordability. It is based on a concept developed by the National Low Income Housing Coalition. 5Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com.
Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference.
Actual Income vs. Income Needed to Rent at Fair Market Value
1Bedroom Fair Market
Value2 Bedroom Fair Market Value
1 Bedroom Hourly Rate
Needed
2 Bedroom Hourly Rate
Needed
Location
Los Angeles, CA $900.00 $1,124.00 $17.31 $21.62
Seattle, WA $693.00 $834.00 $13.33 $16.04
Atlanta, GA $750.00 $834.00 $14.42 $16.04
Chicago, IL $803.00 $906.00 $15.44 $17.42
Wichita, KS $481.00 $624.00 $9.25 $12.00
Tuscon, AZ $524.00 $673.00 $10.08 $12.94
Retail Salesperson3 Janitor3 Construction Worker3
Location 1BR Diff
2BR Diff 2005
1BR Diff
2BR Diff 2005
1BR Diff
2BR Diff
Los Angeles, CA $12.80 ($4.51) (8.82) $12.35 ($4.96) ($9.27) $18.18 $0.87 ($3.44)
Seattle, WA $12.07 ($1.26) (3.97) $11.64 ($1.69) ($4.40) $17.13 $3.80 $1.09
Atlanta, GA $11.40 ($3.02) (4.64) $10.99 ($3.43) ($5.05) $16.18 $1.76 $0.14
Chicago, IL $12.36 ($3.08) (5.06) $11.92 ($3.52) ($5.50) $17.55 $2.11 $0.13
Wichita, KS $11.14 $1.89 (0.86) $10.74 $1.49 ($1.26) $15.81 $6.56 $3.81
Tuscon, AZ $10.74 $0.66 (2.20) $10.36 $0.28 ($2.58) $15.25 $5.17 $2.31
the Campaign for Affordable Housing
In spite of overall increases in homeownership rates, working
families with children are finding it harder and harder to
purchase a home.
the Campaign for Affordable Housing
The homeownership rate of working families with children in 2001 was almost 6 percentage points lower than it was prior to
1980.
the Campaign for Affordable Housing
Homeownership Rates All Householdsand Working Families 1978–2001
Source: Working Families with Children: A Closer Look at Homeownership Trends, published May 2004 by The Center for Housing Policy, the research affiliate of the National Housing Conference.
All Households All Families with Children All Working Families with Children(earning less than 120% A.M.I. but more than minimum wage)
0
80
65.2 63.966.9 68.0
70.5
63.4
67.5 68.4
62.5
55.8 56.3 56.6
1978
1991
1999
2001
the Campaign for Affordable Housing
Opposition to affordable housing makes it difficult and costly to
construct or renovate houses and apartments and undermines efforts to win political support for funding,
zoning and project approvals.
the Campaign for Affordable Housing
“…NIMBYism takes many forms. It can be as overt as a public demonstration against a new housing development. It also can be as insidious as the rigid application of zoning regulations that perpetuate social and economic segregation. Whatever its form, NIMBYism reflects the perception among existing residents that additional housing for low-to moderate-income people in their neighborhoods will hurt their property values or quality of life by increasing such problems as traffic congestion, crime and crowding of local public facilities.”1
1Paycheck to Paycheck: Wages and the Cost of Housing in Counties, published May 2004 by The Center for Housing Policy, the research affiliate of the National Housing Conference.
the Campaign for Affordable Housing
Working together, we can overcome NIMBYism with the truth.
the Campaign for Affordable Housing
Not in my backyard!
Not in my backyard!
TRUTH
Not in my backyard!
TRUTH
Not in my backyard!
TRUTH
Not in my backyard! TRUTH
TRUTH
the Campaign for Affordable Housing
Low Income(Below 80 percent of area median income for a family of four)
People Who Need Affordable Housing Are Our Neighbors
Most people who reside in affordable housing work. Here are examples of occupations and the typical annual salary levels in urban areas.
Truck Driver $30,100
THE TRUTH:
to see next salary
the Campaign for Affordable Housing
Legal Clerk $34,260
Low Income(Below 80 percent of area median income for a family of four)
People Who Need Affordable Housing Are Our Neighbors
Most people who reside in affordable housing work. Here are examples of occupations and the typical annual salary levels in urban areas.
THE TRUTH:
to see next salary
the Campaign for Affordable Housing
Deputy Sheriff $40,398
Low Income(Below 80 percent of area median income for a family of four)
People Who Need Affordable Housing Are Our Neighbors
Most people who reside in affordable housing work. Here are examples of occupations and the typical annual salary levels in urban areas.
THE TRUTH:
to see next salary
the Campaign for Affordable Housing
Firefighter $43,506
Low Income(Below 80 percent of area median income for a family of four)
People Who Need Affordable Housing Are Our Neighbors
Most people who reside in affordable housing work. Here are examples of occupations and the typical annual salary levels in urban areas.
THE TRUTH:
to see next salary
the Campaign for Affordable Housing
Nurses Aide $11,500
Very Low Income(Below 50 percent of area median income for a family of four)
People Who Need Affordable Housing Are Our Neighbors
Most people who reside in affordable housing work. Here are examples of occupations and the typical annual salary levels in urban areas.
THE TRUTH:
to see next salary
the Campaign for Affordable Housing
Accounting Clerk $17,000
Very Low Income(Below 50 percent of area median income for a family of four)
People Who Need Affordable Housing Are Our Neighbors
Most people who reside in affordable housing work. Here are examples of occupations and the typical annual salary levels in urban areas.
THE TRUTH:
to see next salary
the Campaign for Affordable Housing
Legal Secretary $23,920
Very Low Income(Below 50 percent of area median income for a family of four)
People Who Need Affordable Housing Are Our Neighbors
Most people who reside in affordable housing work. Here are examples of occupations and the typical annual salary levels in urban areas.
THE TRUTH:
to proceed
the Campaign for Affordable Housing
THE TRUTH:
SOURCES: San Franciscan Bay Guardian (10/7/98); Nonprofit Housing Association of Northern California ; Good Neighbors Affordable Family Counseling; Jones, Pettus & Pyatok (1997); Annual Planning Information, Contra Costa County (1993); Marin Independent Journal (2/23/97); City of San Jose Memorandum (1/3/95).
Here are the occupations and employers of a real affordable apartment complex in San Jose, California.
Company Name Occupation
Aurelia’s Hair Time BeauticianBudget Rent-A-Car Administrative AssistantCapezio Factory Outlet SalesCapital Honda ReceptionistCity of San Jose Typist Clerk IICounty of Santa Clara Child CounselorCRX Telecom Corporation Receptionist/ClerkDanforth Biomed, Inc. TechnicianEmporium Store DetectiveFood-4-Less CashierIBM Corporation Associate Engineer
Company Name Occupation
Kaiser Hospital Staff AssistantMicro Chassis WelderSafeway CheckerSan Jose State University Instruction AssistantSan Jose Unified School District Bus DriverSouth Bay Pontiac/Cadillac Installer/TechnicianSorrento Cheese Company Machine OperatorSpar Logic AccountantStudio 5 Clothing ManagerTropicana Foods CashierWester Specialty Products Stone Cutter
the Campaign for Affordable Housing
Preserving existing affordable housing through rehabilitation
repairs and improves communities...
THE TRUTH:
the Campaign for Affordable HousingBefore…
the Campaign for Affordable Housing…and After...
the Campaign for Affordable Housing
Well-designed housing comes in many densities.
THE TRUTH:
the Campaign for Affordable Housing
Higher density affordable housing decreases traffic congestion.
THE TRUTH:
“Studies indicate that the average resident in a compact neighborhood will drive 20-30% less than residents of a neighborhood half as dense.” “At densities of 8 units per acre and higher, neighborhoods begin to support bus and rail transit….”
SOURCE: John Holtzclaw, www.sierraclub.org Local Government Commission
the Campaign for Affordable Housing
Higher density affordable housing lowers infrastructure costs.
THE TRUTH:
The U.S. Office of Technology Assessment found that it cost $10,000 [per unit] more to provide infrastructure to a lower density suburban development than to a more compact urban neighborhood. (OTA-EII-643, 1995)
Infrastructure costs per housing unit significantly decline as density increases: in developments at 30 units per acre or greater to about $10,000 from $90,000 per unit when built at 4 units per acre. (Urban Land Institute, Wieman, 1996)
the Campaign for Affordable Housing
Affordable housing comes in a size and design to fit every community.
THE TRUTH:
the Campaign for Affordable Housing
There are many good ways to educate our communities about
the need for affordable housing...
the Campaign for Affordable Housing
the Campaign for Affordable Housing
the Campaign for Affordable Housing
the Campaign for Affordable Housing
the Campaign for Affordable Housing
the Campaign for Affordable Housing
the Campaign for Affordable Housing
Working together to spread the truth helps those whose help we depend on to provide safe and
stable homes to their own families.
the Campaign for Affordable Housing
The Campaign for Affordable Housing provides public education,
advocacy training and advice for local groups who wish to expand
housing opportunities for all.
the Campaign for Affordable Housing
To learn more about our programs, publications and workshops, contact us at:
The Campaign for Affordable Housing5900 Wilshire Boulevard, 26th Floor
Los Angeles, CA 90036(323) 330-0540 phone
(323) 330-0541 faxtcah@tcah.orgwww.tcah.org
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