Overview Of Housing Affordability

In Upstate South Carolina

Diane Eldridge

September 16, 2003

Upstate Forever

Research Methods

• U.S. Bureau of Census, 2000 Census Population and Housing– Median Family Income– Medial House Value

• Bureau of Labor Statistics, GSP MSA– Salaries for Policeman, Firefighter, Teacher– National Consumer Expenditure Survey

• National Low Income Housing Coalition• Ginnie Mae Mortgage Calculator

– Loan Payment for FHA, VA and conventional loan

• Multiple Listing Service

What Is “Affordable Housing”?

• The term means different things to different people

– Housing that they themselves are qualified to buy– Housing that someone can afford to buy from

them– Housing for households with low- to moderate-

incomes– Housing built with government assistance– Housing for poor people

Affordable Housing ProgramsAlso Known As

• Workforce Housing

• Housing for Heroes

• Housing Opportunities

“Official” Definition

What makes housing affordable is the ratio of housing costs to household income

30 Per Cent Test *

Housing is affordable when a household pays no more than 30 per cent of its total monthly income on:– Rent and utilities, or– Mortgage payment, insurance, taxes and utilities

* Does not include down payment and closing costs

Cost of Housing in Upstate

South Carolina

• Median-price house (2000)– Anderson County $ 88,200– Greenville County $111,800– Laurens County $ 74,800– Oconee County $ 97,500– Pickens County $ 96,100– Spartanburg County $ 91,100

Cost of Housing in Upstate

South Carolina

• FMR Rental Unit – Monthly Rent– Anderson,Greenville, Pickens, & Spartanburg

Counties 0 BR $354 1BR $428 2 BR $483

3BR $609 4BR $716

– Laurens & Oconee Counties 0 BR $287 1BR $335 2 BR $407

3BR $523 4BR $598

• Insert map of Upstate six counties

Median Family Income and Housing Value Upstate South Carolina 2000

$88,200

$74,800

$97,500

$96,100

$91,100

$111,800

$45,349

$44,507

$43,047

$39,739

$50,332

$44,229Anderson

Greenville

Laurens

Oconee

Pickens

Spartanburg

Median Housing Value Median Family Income

Housing Cost as Percentage of Income Upstate South Carolina

17 per cent spend 30 per cent or more

on housing

30 to 34 percent5%

Less than 10 percent25%

10 to 14 percent19%

20 to 24 percent13%

15 to 19 percent17%

25 to 29 percent8%

35 to 39 percent3%

Not Computed1%

50 percent or more6%

40 to 49 percent3%

Upstate Housing Costs Increasing Faster Than Incomes

Anderson County +22.61%Greenville County +22.99%Laurens County +31.22%Oconee County +31.85%Pickens County +23.72%Spartanburg County +25.73%

Anderson CountyMedian Family Income $44,229Median House Value $88,200Monthly House Payment $815 - $876 Conventional $815 VA $874 FHA $876

Monthly Fair Market Rent $354 - $716 0 BR $354 1BR $428 2 BR $483 3BR $609 4BR $716

Monthly IncomeAvailable for

Housing (30%)Median Family $1,105.7380 Per Cent of Median $884.5850 Per Cent of Median $552.86Teacher $954.25Police Office $789.75Firefighter $669.50Minimum Wage Worker $267.80

Greenville CountyMedian Family Income $ 50,332Median House Value $111,800Monthly House Payment $1,033 - $1,110 Conventional $1,033 VA $1,106 FHA $1,110

Monthly Fair Market Rent $354 - $716 0 BR $354 1BR $428 2 BR $483 3BR $609 4BR $716

Monthly IncomeAvailable for

Housing (30%)Median Family $1,258.3080 Per Cent of Median $1,006.6450 Per Cent of Median $629.15Teacher $954.25Police Office $789.75Firefighter $669.50Minimum Wage Worker $267.80

Laurens CountyMedian Family Income $39,739Median House Value $74,800Monthly House Payment $691 - $743 Conventional $691 VA $742 FHA $743

Monthly Fair Market Rent $287 - $598 0 BR $287 1BR $335 2 BR $407 3BR $523 4BR $598

Monthly IncomeAvailable for

Housing (30%)Median Family $993.4880 Per Cent of Median $794.7850 Per Cent of Median $496.74Teacher $954.25Police Office $789.75Firefighter $669.50Minimum Wage Worker $267.80

Oconee CountyMedian Family Income $43,047Median House Value $97,500Monthly House Payment $992 - $901 Conventional $901 VA $999 FHA $992

Monthly Fair Market Rent $287 - $598 0 BR $287 1BR $335 2 BR $407 3BR $523 4BR $598

Monthly IncomeAvailable for

Housing (30%)Median Family $1,076.1880 Per Cent of Median $860.9450 Per Cent of Median $496.74Teacher $954.25Police Office $789.75Firefighter $669.50Minimum Wage Worker $267.80

Pickens CountyMedian Family Income $44,507Median House Value $96,100Monthly House Payment $888 - $984 Conventional $888 VA $984 FHA $977

Monthly Fair Market Rent $354 - $716 0 BR $354 1BR $428 2 BR $483 3BR $609 4BR $716

Monthly IncomeAvailable for

Housing (30%)Median Family $1,112.6880 Per Cent of Median $890.1450 Per Cent of Median $556.34Teacher $954.25Police Office $789.75Firefighter $669.50Minimum Wage Worker $267.80

Spartanburg CountyMedian Family Income $45,349Median House Value $91,100Monthly House Payment $842 - $934 Conventional $842 VA $934 FHA $927

Monthly Fair Market Rent $354 - $716 0 BR $354 1BR $428 2 BR $483 3BR $609 4BR $716

Monthly IncomeAvailable for

Housing (30%)Median Family $1,133.7380 Per Cent of Median $906.9850 Per Cent of Median $566.86Teacher $954.25Police Office $789.75Firefighter $669.50Minimum Wage Worker $267.80

Upstate Median Income Families

• Can afford median-priced house with an FHA, VA or conventional loan anywhere in Upstate if they can afford the down payment and closing costs

Above: Oconee County $88,900

Below: Spartanburg County $87,500

Families Making 80 Per Cent of Median

• Anderson, Laurens– Can afford median-priced house

with FHA, VA or conventional loan if they can afford down payment and closing costs

• Pickens, Spartanburg– Can afford median-priced house

with conventional loan if they can afford down payment and closing costs

• Greenville, Oconee– Cannot afford median-priced

house with FHA, VA or conventional loan

Greenville County $110,000

Upstate Teachers$38,170

• Can afford up to a four-bedroom rental unit at FMR

• Can afford a median-priced house with a conventional loan (15 per cent down payment)

Upstate Police & Firefighters($31,590 & $26,780)

• Can afford up to a four-bedroom rental unit at FMR

• Cannot afford a median-priced house with a FHA, VA or conventional loan

Families Making 50 Per Cent of Median

• Cannot afford to purchase a median-priced house in the Upstate

• Cannot afford a 4-bedroom rental unit at FMR in the Upstate

• Cannot afford a 3-bedroom rental unit at FMR in Anderson, Laurens, Pickens, or Spartanburg Counties

Oconee County $29,500

Oconee County $126,900

Greenville County $56,900

Spartanburg County $71,500

Minimum Wage Worker

• Working 40 hours per week, cannot afford any size rental unit at FMR or a median priced house with FHA, VA or conventional loan

• Laurens, Oconee– Rental Unit at FMR

• Studio apartment 46 hours/week• One bedroom 53 hours/week• Two bedroom 65 hours/week• Three bedroom 83 hours/week• Four bedroom 95 hours/week

• Anderson, Greenville, Pickens, Spartanburg– Rental Unit at FMR

• Studio apartment 62 hours/week• One bedroom 75 hours/week• Two bedroom 85 hours/week• Three bedroom 107 hours/week• Four bedroom 126 hours/week

How Long Would a Minimum Wage Worker Have to Work to Afford a FMR Rental Unit in Upstate S.C.?

Conference Goals

• Perspectives from home builders, developers, bankers, planners, community leaders, representatives from local, regional, state, federal programs

• Upstate housing costs and income levels• “Gaps”• Financing mechanisms• Local initiatives• National perspective• Barriers and incentives• Ideas from other communities• Local opportunities