The office of New York State Comptroller Thomas DiNapoli has issued an analysis of housing affordability in the state with affordability being a relative measure that combines both income and costs.
Essentially, housing is considered affordable if it is equal to or less than 30 percent of household income.
For homeowners, that index includes mortgage, interest, utilities, fuel and property taxes.
From 2000 to 2012, the trends for NY state have shown a steady increase in median rent and an overall decline in housing affordability for both renters and homeowners.
The percentage of NY households with rent above affordability increased from 40.5 percent to 50.6 percent while homeowners above the affordability level increased from 26.4 percent to 33.9 percent.
This lack of affordability presents financial hardship for an increasing number of NY state renters and homeowners.
This also presents significant problems for business, as they see increasing difficulty in attracting or maintaining employees related to the availability of affordable housing.
So how does this affordability index play out within our region?
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Herkimer County
There are 7,938 rental households in the county and 44.2 percent of these exceed the affordability index (ranked 17th out of 62 counties, a 7.7 percent increase from 2000 to 2012.)
There are 19,013 owner households and 20% exceed affordability (ranked sixth out of 62 counties, a (-1.1 percent) decrease from 2000-2012.) Essentially, Herkimer County presents a relatively better picture for homeowners than renters.
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Hamilton County
There are only 374 rental households in the county and 20.9 percent of these exceed the affordability index (ranked 1st out of 62 counties, a 12.2 percent decrease from 2000-2012.)
There are 1,760 owner households and 25.2 percent exceed affordability (ranked 40th among the counties, a 6.3 percent increase from 2000-2012.)
Essentially, Hamilton County presents a better picture for renters than homeowners; however there are very few rental opportunities available.
Housing affordability is a mix of factors including regional household incomes, property taxes, the demand for housing and the availability of existing housing.
The American Community Survey (ACS) measured changes in these factors from the period 2000 to 2012 and found the following:
• Median homeowner costs increased by 9.9 percent during this period, however, rental costs increased by 18.6 percent
• Property taxes increased by 12.3 percent
• Adjusting for inflation, median homeowner income declined by 1.6 percent, however, renters median income declined by 7.1 percent
• Vacancy rates for both homeowner and rental properties remained relatively constant for this period. In 2012, vacancy rates for owner occupied properties were 1.9 percent, while vacancy rates for rental properties were at 4.6 percent.
In summary, the percentage of households, both owner-occupied and rentals, that exceed the affordability index in NY state has increased. More than 50 percent of rental households and 30 percent of homeowners now exceed this index.
The housing crisis, which ignited the 2008 recession, is still out there lurking and New Yorkers are continuing to struggle to pay rising housing costs at a time when real incomes are stagnant or declining. Homeownership is still a vital cornerstone of the American Dream.
CAP-21 believes that the Adirondack Community Housing Trust provides an affordability option for home ownership within the Park and serves as a vehicle to gain entry into the housing market and build basic housing equity.
For more information on the Housing Trust please contact CAP-21 at (315) 369-3353 or at info@cap-21.org . To download the full report from the NYS Comptroller’s Office please go to www.osc.state.ny.us or ask CAP-21 to email or send you a copy.