Slick Vik Posted September 24, 2013 Share Posted September 24, 2013 A new study finds more Houstonians are spending a higher percentage of their incomes on housing.By Nancy Sarnoff 11:31 AM More Houstonians are spending a higher percentage of their incomes on housing, a new study from Rice University's Shell Center for Sustainability shows. The report's key finding revealed that half of Houston's City Council districts do not meet the conventional definition of affordable, which stipulates that the average household not spend more than 30 percent of its income to cover rent or mortgage expenses. "Our incomes aren't high enough commensurate with affordable housing," said Lester King, a Shell Center fellow and author of the report, "Sustainable Development of Houston Districts: The Health of the City." "It may involve looking at the mix of jobs being available in the city," he added. "It may involve increases in income relative to increases in the cost of living over time. It may involve also the change in demographics." Adding transportation costs makes Houston seem less affordable to even more people. The average Houstonian spends 30 percent on housing costs and 16 percent on transportation costs, the report shows. The combination of housing and transportation costs, 46 percent, puts Houston at No. 26 in the nation for affordability among the 50 largest cities, King said. "That's something to watch," King said. Philadelphia was the most affordable city based on those criteria, with 33 percent of household incomes going to housing and transit. New York ranked 4th with 37 percent and Chicago was 14th with 42 percent. Since housing prices in Houston are already relatively low, King said policies aimed at reducing transportation costs would help make it a truly affordable city. Only about 5 percent of Houstonians use public transit. Aside from major efforts to improve connectivity in the road network, King cited programs like jitney systems and other shuttle programs that may "help increase transit usage and make living close to your job more attractive." District F lagging The study released Monday addressed other social, economic and environmental indicators of sustainable development, which King said is defined as "meeting the needs of the present generation without compromising the ability for future generations to meet their own needs." In addition to housing affordability, the study examined flooding, unemployment and disparity in graduation rates. The information was based on the 2010 Census, other national and state data and input from city government officials, academic institutions and nonprofits. The report found that the percentage of housing units in Houston where residents spent more than 30 percent of their incomes on housing increased almost 50 percent in 2010 from 1990 and 2000 levels.It found that residents of District F, which includes the Alief, Eldridge/West Oaks and Westchase neighborhoods, spent an average of 33.6 percent of their income on housing. That was the highest of the city's 11 council districts. Other districts with higher levels of people putting more of their income toward housing were on the northeast side of town, as well as parts of south and southwest Houston. The report notes a significant income disparity between District F and District E, which overall spent less than 30 percent of income on housing. District F's median income of $39,766 was less than 60 percent of the median income in District E, which includes Clear Lake and the Edgebrook communities. "This difference may explain why a higher percentage of households in District F are finding housing costs more unaffordable," the report states. In addition to calling for further discussion by citizens and policymakers of the issues raised by the report, King also noted that Houston is wealthy enough to meet its challenges. "This is good news, since a wealthy city has the necessary resources to become more sustainable," King said in an accompanying news release. "The problem in Houston is not one of scarce funds; it is a problem of making the right choices among competing interests." http://www.houstonchronicle.com/business/real-estate/article/Affordability-thy-name-is-not-Houston-4837796.php Link to comment Share on other sites More sharing options...
Subdude Posted September 30, 2013 Share Posted September 30, 2013 I don't find this all that surprising. As Houston continues to grow it seems natural that costs would start increasing. A few years ago there was a study that looked only at all-in transportation costs (fuel, insurance, depreciation etc), and as I recall Houston came out relatively high. However, that might have been somewhat attributable to gasoline prices at the time. Link to comment Share on other sites More sharing options...
livincinco Posted September 30, 2013 Share Posted September 30, 2013 Would love to see a breakdown of the methodology used for determining these numbers. I have questions about any study that concludes New York is more affordable than Houston. Link to comment Share on other sites More sharing options...
samagon Posted September 30, 2013 Share Posted September 30, 2013 New York is concluded as more affordable because they choose to live in 400sf shoe boxes for the same price as we pay for 1500sf. I assume if demand was there for 400sf shoe boxes in Houston, more would live in them and save some cash. Same with cars, if they needed to jump into a prius they would, but as it is, they buy a top of the line f150 and are happy with 15mpg trip from conroe to downtown. it's not the same study, but it makes the same inferences. They assume that people are forced to spend 46% of their income on housing and vehicle, but really, they should be doing a study to find out if people enjoy driving their expensive cars and living in their big houses out in the burbs, what's the overall happiness index of Houstonians compared with NYers? Link to comment Share on other sites More sharing options...
ricco67 Posted September 30, 2013 Share Posted September 30, 2013 Like I was saying in another thread, we're looking for about 600 to 100sq and its difficult. I'd wish they'd build something nice, yet small. Link to comment Share on other sites More sharing options...
livincinco Posted September 30, 2013 Share Posted September 30, 2013 New York is concluded as more affordable because they choose to live in 400sf shoe boxes for the same price as we pay for 1500sf. I assume if demand was there for 400sf shoe boxes in Houston, more would live in them and save some cash. Same with cars, if they needed to jump into a prius they would, but as it is, they buy a top of the line f150 and are happy with 15mpg trip from conroe to downtown. it's not the same study, but it makes the same inferences. They assume that people are forced to spend 46% of their income on housing and vehicle, but really, they should be doing a study to find out if people enjoy driving their expensive cars and living in their big houses out in the burbs, what's the overall happiness index of Houstonians compared with NYers? Agreed and the inference is very misleading. They are measuring the amount that people choose to spend on these things not what they can afford. However, they state it as a measure of affordability. Link to comment Share on other sites More sharing options...
KinkaidAlum Posted September 30, 2013 Share Posted September 30, 2013 Sure, they pay more for shittier and smaller spaces, but they save a HELLUVA lot of cash by not having to buy a car, gas, insurance, parking garages, etc... Transportation costs in Houston are very high. Link to comment Share on other sites More sharing options...
august948 Posted September 30, 2013 Share Posted September 30, 2013 Sure, they pay more for shittier and smaller spaces, but they save a HELLUVA lot of cash by not having to buy a car, gas, insurance, parking garages, etc... Transportation costs in Houston are very high.If you add in the taxes paid to support the pubic transport network in nyc that enables a car free lifestyle, where does that put them? Link to comment Share on other sites More sharing options...
Ross Posted October 1, 2013 Share Posted October 1, 2013 If you add in the taxes paid to support the pubic transport network in nyc that enables a car free lifestyle, where does that put them? Thanks for the laugh and the image that typo evoked! Link to comment Share on other sites More sharing options...
august948 Posted October 1, 2013 Share Posted October 1, 2013 Thanks for the laugh and the image that typo evoked! Oops! Guess I fat-fingered it. Link to comment Share on other sites More sharing options...
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