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 Programs Also 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

Housing Cost as Percentage of Income Upstate South Carolina 17 per cent spend 30 per cent or more on housing

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 County Median Family Income $44,229 Median House Value $88,200 Monthly 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

Greenville County Median Family Income $ 50,332 Median House Value $111,800 Monthly 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

Laurens County Median Family Income $39,739 Median House Value $74,800 Monthly 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

Oconee County Median Family Income $43,047 Median House Value $97,500 Monthly 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

Pickens County Median Family Income $44,507 Median House Value $96,100 Monthly 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

Spartanburg County Median Family Income $45,349 Median House Value $91,100 Monthly 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

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 apartment46 hours/week One bedroom53 hours/week Two bedroom65 hours/week Three bedroom83 hours/week Four bedroom 95 hours/week Anderson, Greenville, Pickens, Spartanburg –Rental Unit at FMR Studio apartment62 hours/week One bedroom75 hours/week Two bedroom85 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