Who Can Afford to Live in Orange County?: An Assessment of Orange
County's Housing Stock and Affordability
Executive Summary:
ABODE presents this assessment data concerning the local housing market and the affordability of housing in Orange County for various government employees, who make up 44% of the county's workforce and whose salary and residence information is easiest to obtain. Also included is an inventory of Special Needs Service Providers and information on the current efforts being made to provide affordable housing for people in diverse life situations.
Issues of growth and community stability are not unique to Orange County. Communities across the country are struggling with ways in which to reduce sprawl and encourage public involvement in the well-being of the community. In Orange County, these problems are complicated by the dichotomy of the rural northern areas and the urban areas to the south. As a part of the Triangle region, Orange County shares in the area's booming economic prosperity brought on by top-ranked universities, private research companies, technology firms, and other enterprises. In fact, the county has experienced a population growth rate of 14.3% from 1990 to 1997, with projections for the next decade increasing to 16.4%.
Orange County owes much of its population to the location of a major university campus within its borders. With this learning facility has come a prestigious hospital, increased private-industry research, and many cultural offerings. All of these factors increase the need for government support services, reflected in the government's 44% share of the county's workforce. Many of these government empoyees, however, do not reside in the area which they serve: in 1998 only 17% of Town of Chapel Hill employees lived within Chapel Hill, while 25% of Carrboro employees lived within that municipality. Of UNC-Chapel Hill and UNC Hospitals employees, 40% and 54% respectively live within Orange County. This trend is not limited to government staff, but it does illustrate a growing problem, as our police officers and teachers, among others, find it increasingly difficult to live in the areas they serve.
Rapid growth, as seen in the Triangle region, creates many problems, including increased housing costs. However, the difference in housing costs throughout the Triangle shows Orange County with a greater deficit of affordable housing than in neighboring counties. In October 1998, the average closing price of a home in Orange County was 22% higher than Wake County and 36% higher than Durham County. During this same year, 38% of homes in Durham and 25% in Wake closes below $120,000; 6% of homes in Durham and 14% in Wake closed for over $250,000. In Orange County, 19% of homes closed below $120,000 and 35% closed over $250,000. Data from 1998 shows that a family of four earning 100% of area median income ($54,000) can only afford 24% of detached homes closed during that period, and a family earning 60% of median income ($32,820) could afford just 6% of detached homes closed. There is clearly a need for more affordable owner-occupied units in our area.
According to figures on detached homes compiled by the Triangle Multiple Listing
Service for 1998:
* A Carrboro firefighter earning $26,743 could afford 2% of homes closed.
* An Orange County teacher earning $41,820 could afford 14% of homes closed.
* A UNC Hospitals Clinical Nurse earning $38,605 could afford 10% of homes closed.
This issue has been complicated because 62% of UNC's 24,189 students live off campus, mostly in local rental units. Due to the ability of students to combine many sources of income (i.e. several roommates) to contribute to one rent payment, rental rates are not afffordable for lower-income families and especially single parents, who have only one income to pay for rent. Using 1998 data, a family of four making 60% median income could not afford the average rental rate for two or three bedroom units, and families at 40% median incomecould not afford the aaverage rates for one, two, or three bedroom units. Out of the 7,881 rental units surveyed for this study, five were efficiency units and 668 were three-bedroom units, indicating a clear shortage of units appropriate for both single individuals and families with more than one child. The lack of affordable rental housing for low-to-moderate-income families leads many people to experience great financial burdens by paying high percentages of their incomes in rental payments. Moreover, high rents can cause people to "double up" with relatives or friends, to move to other communities in search of housing, or, in some cases, to become homeless.
* A Carrboro firefighter earning $26,743 can only afford 37% of one-bedroom rental units in Orange County, 16% of two-bedroom, and 0% of three-bedroom units.
* An Orange County (or Chapel Hill/Carrboro) teacher earning $41,820 can afford 100% of both one- and two-bedroom units, but only 50% of three-bedroom units.
* A Housekeeper working for UNC Hospitals earning $16,965 cannot afford any market rate one-, two-, or three-bedroom units in Orange County.
These market trends are certainly a factor in the migration of working individuals and families to other, more affordable communities. Orange County is increasingly becoming an area in which only people with high incomes can afford to live, which in turn threatens the diversity and community involvement that is needed for a healthy society.
Housing affordability is not an issue to be taken lightly. The lack of decent, safe, and affordable housing can threaten the health, employment, education, and family relationships of the people involved. Without decent housing for people at various income levels and life situations, families and communities suffer. In order to change effectively public policy and funding levels in support of diverse and affordable housing, more specific data is required than is commonly presented for use by housing service providers, community activists, government officials, and community leaders. With these groups in mind, this assessment begins to show where people in this community are financially: what they can afford and the ability of the current housing market to meet these diverse needs.
Over the past ten months, ABODE has worked with university and government staff, as well as housing and special needs service providers and private consultants to present a unique look into the afffordable housing situation in Orange County. In gathering salary information for various government agencies and positions, as well as current rental and owner-occupied unit prices, we have been able to calculate a person's affordable housing cost and compare this to the current market offerings.
ABODE presents this assessment acknowledging that there is still work to be done. We faced many obstacles in the preparation of this assessment, including the lack of current Census data, which limited the amount of comprehensive background information, and limited personnel and financial resources. We intend to use this study as a basis for future assessments regarding the state of housing in Orange County, and as a tool to advocate for safe, decent, and affordable housing opportunities within the county for every Orange County citizen and worker. We therefore welcome comments and ideas concerning this study as well as areas of concern for future assessments.
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