% of Income for Housing

What is This Indicator?

Percentage of people paying more than 30% of household income on housing.
(US Census Bureau, American Community Survey 2005-2007)

The percentage of people who spend more than 30% of thie household income is increasing.

The U.S. Department of Housing and Urban Development defines 30% of gross income as the maximum households can pay in housing costs (mortgage/rent and utilities) without creating an excessive housing burden.

Why is it Important?

This is one measurement of housing affordability in our community.  The lower a household's income, the more likely they are to experience housing cost burden.  According to the 2005-2007 American Community Survey, renters over the age of 65 also have a high housing burden.

As recent increases in home prices and rents have outpaced the increase in Vermonters’ wages, housing has become less affordable for more people. Unemployment as a result of the recession has compounded this challenge.  The graph below from the 2009 Update of Between a Rock and a Hard Place shows the gap between the income needed to to buy a median priced home in Vermont and actual median income.  In 2008, the median purchase price for a Vermont home was $200,000 - a 100% increase from 1996, the study's baseline year for its series of reports.