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A CASE STUDY OF
RENTAL HOUSING
IN CHESTER COUNTYKristen B. Crossney, PhD and Beau Ryck
West Chester University
(610) 430-5838
Making the Case for Affordable Housing
• Wealth Accumulation
• Homeownership has long been a channel through which wealth is accumulated.
• 2008 Mortgage Crisis
• Years of financial deregulation generated increased predatory lending that inordinately affected middle to low income households.
• The New Rentier Class
• The market collapse, along with stagnant wages and increased housing cost, has forced many to rely on rental housing options.
• Growth
• Homogenous housing stock hinders growth.
Chester County NOW
Chester County Pennsylvania
Population 509,468 12,773,801
Population Change 2.1% 0.6%
Living in same house
In last 5 years
89.7% 87.8%
HS graduate or higher 92.7% 88.3%
College graduate 48.3% 27.0%
Foreign born 8.7% 5.8%
Median household
income
$86,184 $42,267
Living in Poverty 6.5% 13.1%
Chester County NOWChester County Pennsylvania
Housing Units 194,329 5,565,157
Rental Rate 23.8% 29.9%
Housing in Multi-unit
Structures
17.8% 20.6%
Persons per household 2.64 2.47
Median Housing Value $329,700 $164,900
Median Gross Rent $1,142 $794
Vacant Housing Units 4.4% 10.9%
Vacant Owner Occupied 1.3% 1.8%
Vacant Rental 4.7% 6.3%
Changing Demographics
-25000 -20000 -15000 -10000 -5000 0 5000 10000 15000 20000 25000
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
Ag
e
Chester County Population, 2010
Growth and change
2000 (2010$) 2010 % change
Population 433,501 509,468 17.5%
Housing Units 163,773 194,329 18.7%
Vacancy Rate 3.60% 4.40% 22.2%
% Rental Occupied 23.70% 23.80% 0.4%
Median Housing Value $231,099 $329,700 42.7%
Gross Rent $841 $1,142 35.8%
Median Income $82,683 $86,184 4.2%
Housing Type
1-unit, detached
1-unit, attached
2 units
3 or 4 units
5 to 9 units
10 to 19 units
20 or more units
Mobile home
Size of Housing Units in Chester County
No bedroom
1 bedroom
2 bedrooms
3 bedrooms
4 bedrooms
5 or more bedrooms
Size of Housing Units
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0 Bedrooms 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms 5+ Bedrooms
Owner occupied
Rental
Housing Values
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Less than$50,000
$50,000 to$99,999
$100,000 to$149,999
$150,000 to$199,999
$200,000 to$299,999
$300,000 to$499,999
$500,000 to$999,999
$1,000,000 ormore
Chester County
Pennsylvania
Gross Rent
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
Less than $200 $200 to $299 $300 to $499 $500 to $749 $750 to $999 $1,000 to $1,499 $1,500 or more
Chester County
Pennsylvania
Overcrowded Housing
Defined as more than 1 person per room
In 2010, less than .5% of owner occupied housing but 3.4%
of rental housing
Housing burden in 2010
• For homeowners
• 42% spend less than 20% of their income on housing
• 30% spend more than 30% of their income on housing
• 10% spend more than 50% of their income on housing
• For renters
• 27% spend less than 20% of their income on housing
• 41% spend more than 30% of their income on housing
• 21% spend more than 50% of their income on housing
Housing Burden in Chester County
• For the average income household, 30% of income is
$2,154.60.
• Assuming the buyer has put a 10% downpayment on a
median valued home, and finances the rest at 5% interest
rate
• Mortgage is $1,927
• $227 remains to cover additional housing costs such as home
equity loan, real estate taxes, homeowners’ insurance, condo fees,
utilities
• Median monthly costs of homeowners is $2,241, compared to
$1,447 in Pennsylvania
A CASE STUDY OF
RENTAL HOUSING
IN CHESTER COUNTYKristen B. Crossney, PhD and Beau Ryck
West Chester University
(610) 430-5838
