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Sourcebook HAIHousing/Income Characteristics by Year
 
Affordability is dependent upon both housing costs and incomes in an area. A chart of basic housing and income characteristics is provided including an Housing Affordability Index (HAI) that reflects affordability based on median household income for all housing.

The Housing Affordability Index answers the question, “What is the percent of the typical household income that is required to afford the typical home?”

The chart provides the two components of the HAI that reflect the affordability of sold units and affordability of rent units. In addition, the chart provides adjusted versions of the HAI based on 80% and 60% of median income for all housing, a Lowest-Quartile Housing Affordability Index, Sold Affordability Indexes at the median owner income and at the median renter income, Rental Affordability Indexes at the median owner income and at the median renter income.

See DESCRIPTION OF MEASURES for a more detailed explanation of the additional indexes and chart components.

In addition to the various housing affordability indexes, the chart provides the data components that are used in creating the indexes. These data components include households broken down by tenure (the percent of owners and renters), the annual median household income for all households, owners, and renters, median monthly renter cost (rental units), median monthly owner cost (sold units, based on sales price of new and existing sales from MLS realtor data adjusted for mortgage terms, homeowner’s insurance, and taxes), and median sale price of new and existing sales from MLS realtor data. In addition, the percent of households that are cost burdened (pay more than 30% of income for housing) is provided.
 
 


Housing and Income Characteristics by Year
Virginia
  2007 2008 2009 2010 2011 2012
Qtr. 4
Overall Housing Affordability Index
  at Median Household Income		            
   All Housing  31.6% 27.9% 26.2% 25.6% 24.0% 23.1%
   Sold Units  37.6% 32.3% 29.0% 28.3% 25.7% 24.1%
   Rent Units  18.0% 18.3% 20.0% 20.2% 20.6% 20.9%
   at 80% of Median Household Income, all housing  39.5% 34.9% 32.7% 32.0% 30.0% 28.8%
   at 60% of Median Household Income, all housing  52.7% 46.6% 43.6% 42.7% 40.0% 38.4%
Low-Income Housing Affordability Index
    at the Median Income of the Bottom ¼ of Households		 111.7% 95.8% 90.7% 89.5% 88.3% 84.8%
Sold Affordability Indexes
   at Median Income of Owners  31.0% 26.2% 23.4% 22.9% 20.9% 19.6%
   at Median Income of Renters  60.6% 51.3% 45.5% 44.8% 40.4% 37.9%
Rent Affordability Indexes            
   at Median Income of Owners  14.8% 14.8% 16.1% 16.3% 16.8% 17.0%
   at Median Income of Renters  29.0% 29.1% 31.3% 32.0% 32.4% 32.8%
Number of Households 2,932,234 2,961,083 2,971,489 2,992,732 2,990,650 -
Percent Owners* 69.5% 68.7% 68.1% 67.7% 67.3% -
Percent Renters* 30.5% 31.3% 31.9% 32.3% 32.7% -
Median Income, Households $59,562 $61,233 $59,330 $60,674 $61,882 $63,379
   Median Income, Owners  $72,360 $75,504 $73,565 $74,846 $75,995 $77,833
   Median Income, Renters $36,962 $38,573 $37,865 $38,239 $39,352 $40,304
Median Renter Cost (Median Gross Rent) $892 $934 $989 $1,019 $1,062 $1,103
Median Owner Cost $1,868 $1,650 $1,435 $1,429 $1,324 $1,273
Median Sales Price (Existing & New) $279,000 $245,000 $228,000 $236,000 $225,000 $240,858
Percent of Cost Burdened Households 34.2% 34.7% 35.8% 35.4% 34.5% -

NA = Data not available.

*The numbers reported and used in the affordability index calculations for the 4th quarter 2012 for median household income, median owner income, median renter income, and median gross rent are CPI-adjusted estimates based on the 2011 single year data from the U.S. Census, American Community Survey. The numbers reported or used in the affordability index calculations for percent owners, percent renters, and number of households for year 2011 and 4th quarter 2012 are from the 2011 single year data from the U.S. Census, American Community Survey. Numbers are based on a sample and are subject to sampling variability.

Sources: MLS Sales Data (Virginia Association of REALTORS®), U.S. Census, American Community Survey, and Virginia Tech Center for Housing Research.



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