Housing Cost-Burdened

39% of Travis County households are cost-burdened

Indicator: Percentage of Travis County households that are "cost burdened" (pay 30% or more of income for housing)

Goal: Decrease the percentage of households that are cost-burdened

Target: 36% by 2017

Significance of Indicator: The U.S. Department of Housing and Urban Development states that housing is “affordable” if no more than 30% of a household’s monthly income is needed for rent, mortgage payments and utilities. Households that are cost-burdened may have difficulty affording necessities such as food, clothing, transportation, and medical care.

what the data tell us

The percentage of households in Travis County that are housing cost-burdened decreased in 2011, but is still higher than pre-recession levels and is also higher than the state and the nation. In 2011, 39% of Travis County households (nearly 159,000 households) were cost-burdened.

the story behind the indicator

The number of renter households in Travis County has been increasing over the past few years. This is a bit concerning as renter households are much more likely to be housing cost-burdened than owner households (48% for renters compared to 29% for owners). As the number of renter households has been increasing so have the occupancy rates of renter units. An apartment market analysis by Capital Market Research reports that renter occupancy hit an all time high of 98% in June of 2012. Median rental rates are also at an all time high, $905 in 2011. Additionally the average sale prices of homes in the Austin region have increased. The Real Estate Center at Texas A&M University reports that in 2011 the average sales price of homes in the Austin region was 27% higher than in 2002.

The City of Austin Neighborhood Housing and Community Development Department reports that federal funding levels for affordable housing have fallen 40% over the past five years. In spite of this, Austin has continued to support a continuum of housing programs to increase affordability, largely thanks to general obligation bonds approved by Austin voters in 2006. That funding has now been committed or spent. A proposition for $70 million in new general obligation bond funding, was rejected by voters in 2012. City leaders are considering going to voters again in 2013 to seek renewed funding for affordable housing.

some local efforts to improve this indicator

• The City of Austin’s Neighborhood Housing and Community Development provides housing, community development, and small business development services to benefit eligible residents so they can have access to livable neighborhoods and increase their opportunities for self-sufficiency.

 
• HousingWorks advocates a wide range of housing options so that all Austinites can afford a home that is close to jobs, family, schools, recreation, and places of worship. In May of 2012 they released a study on the economic impact of the 2006 bonds for affordable housing.

 
• The City of Austin has received a HUD Sustainability Grant to plan a 200-acre mixed use community in the Colony Park area of northeastern Travis County with affordable housing linked to jobs, transit and services. The City of Austin also approved spending approximately $10 million of a $14 million mid-year budget surplus on affordable housing projects.

 
• The Imagine Austin Comprehensive Plan was unanimously approved by City Council in June of 2012. The plan acknowledges the importance of promoting “Complete Communities” with affordable housing and access to services in all parts of town.

 
• The Capital Area Texas Sustainability Consortium, which consists of the Capital Area Council of Governments and other stakeholders, was awarded $3.7 million through a HUD Sustainable Communities Planning Grant. The grant, among other things, is being used to produce an analytics tool that will allow planners to measure the impact of different types of development on the activity centers identified in the CAMPO 2035 Plan

 
• In February of 2013 Austin City Council voted to use $10 million out of a $14 million city surplus on affordable housing projects.

 
• The Geography of Opportunity in Austin and How It Is Changing is a new report and on-line mapping tool produced by the Kirwan Institute for Race and Ethnicity in conjunction with local partners.  The maps show areas of high and low opportunity as it relates to education, economic mobility, housing, and other key issues, and are intended to be used as a tool to create policies that create socioeconomic opportunity for all Central Texans. 

a closer look at the story behind the indicator:

Click on one of the titles below for more information.

» % of Households that are Severely Cost Burdened

According to the U.S. Department of Housing and Urban Development, households spending 50% or more on housing have a severe cost burden. These working families are 23% more likely than those paying less for housing to encounter difficulties purchasing food, are 28% more likely to have either a child or an adult lack health insurance, and are almost twice as likely to not have a car says the Center for Housing Policy. Severe housing cost-burdened rates decreased for the City, the County, and the Austin-Round Rock-San Marcos Metropolitan Statistical Area (MSA) from 2010 to 2011. There was no change in severe housing cost-burdened rates for the State or the Nation. In 2011, 19% of Travis County households (roughly 40,000 households) were severely cost-burdened.

Click on graph to view a data table of this information.

Definition: Percent of households where monthly rent (plus utility and/or housing fuel costs) or mortgage payments (or other housing debt costs) equal 50% of more of a household’s monthly income

Data Source: American Community Survey, 1 Year Estimates

Data Considerations: The American Community Survey samples 3% of the Nation’s population. Due to small sample sizes, margins of error are increased and hard to reach populations may not be accurately represented in the data.

» % of owners and renters that are Cost-Burdened (2011)

Renters are much more likely to be housing cost-burdened than owners. In Travis County 48% of renters are cost-burdened compared to 29% of owners. The percentage of renters that are cost-burdened declined from 2010 to 2011 in Travis County.

Click on graph to view a data table of this information.

Definition: Percent of households where monthly rent (plus utility and/or housing fuel costs) or mortgage payments (or other housing debt costs) equal 30% of more of a household’s monthly income

Data Source: American Community Survey, 1 Year Estimates

Data Considerations: The American Community Survey samples 3% of the Nation's population. Due to small sample sizes, margins of error are increased and hard to reach populations may not be accurately represented in the data.

» % of households that are cost-burdened in the five county metropolitan statistical area

In 2011, Hays and Travis Counties had the highest percentage of households that were cost-burdened in the region (39%). The percentage of housing cost-burdened households in Bastrop, Caldwell, and Williamson Counties ranged from 30-33%.

Click on graph to view a data table of this information.

Definition: Percent of households where monthly rent (plus utility and/or housing fuel costs) or mortgage payments (or other housing debt costs) equal 30% of more of a household’s monthly income

Data Source:  American Community Survey, 3-Year Estimates.

Data Considerations: The American Community Survey samples 3% of the Nation’s population. Due to small sample sizes, margins of error are increased and hard to reach populations may not be accurately represented in the data.

vulnerable populations

• Renters — People who rent their housing are much more likely to be cost-burdened than homeowners and often have incomes too low to be able to transition into affordable homeownership. A housing market study conducted by BBC Research & Consulting found that approximately 75% of renter households in Austin are not comprised of students.

 
• People Earning at or Below 30% of the Median Family Income — According to the City of Austin's Neighborhood Housing & Community Development Department (NHCD), people earning this amount of income (roughly equivalent to a single person earning less than $15,550 annually) are the most vulnerable to homelessness due to the lack of affordable housing available for their income level.

 
• Households on a Fixed Income — The National Low Income Housing Coalition reports that millions of people nationwide receive Supplemental Security Income (SSI) because they are elderly, blind, or disabled and have few economic resources. The maximum monthly payment for SSI is less than $700 per month and most recipients of SSI do not have any other sources of income . At this income level there is virtually no housing available that is affordable.

turning the curve

The Imagine Austin Comprehensive Plan, the Downtown Austin Plan, and NHCD’s FY2009-2014 Consolidated Plan recommend increasing the affordability of owner housing by providing homebuyer assistance for low to moderate income households.

Travis County's Consolidated Plan & Action Plan and NHCD’s FY2009-2014 Consolidated Plan recommend increasing the affordability of owner housing by providing homebuyer assistance for low to moderate income households.