Home Ownership/ Affordable Housing
Date posted: 06/16/2009
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Median Family Income (MFI) is an annual income figure. The median divides income distribution into two equal parts: one-half falling below the median income and one-half above the median. MFI is based on the distribution of the total number families including those with no income. Larimer County MFI in 2008 was $75,000.
Median sale price is determined by taking the prices of all homes sold during a given year, and splitting the range into two equal parts, with one-half falling below the median sale price and the other above the median sale price. Median sale price includes the prices of all homes sold in a particular year, including new, existing, single-family, and attached homes (such as condominiums).
The Housing Opportunity Index (HOI) is a measure of the percentage of homes sold that a family earning the median area income can afford to buy.
Affordable housing is defined as housing with monthly payments that cost no more than 30% of a household's gross monthly income for rent and utilities or mortgage PITI (principal, interest, taxes and insurance).
What this chart shows: Median Family Income & Median Home Sale Price, 2004 - 2008
Data Source: National Association of Home Builders
What these data tell us:
From 2004 to 2008, the local increase in median home sale price was greater than the local increase in Median Family Income (MFI). That turned around in 2008 when MFI increased 10.0%, but the median home sale price dropped 0.9%.According to a mortgage calculator, the monthly mortgage payments required to buy a home at the 2008 median home sale price were affordable to a family earning the 2008 Median Family Income ($75,000). That is, the mortgage payments required were less than 30% of one-twelfth the 2008 Median Family Income ($6,250).
What this chart shows: Housing Opportunity Index (HOI), Fourth Quarter, 2008
Data Source: National Association of Home Builders
What these data tell us:
The Housing Opportunity Index (HOI) measures the proportion of houses sold that are affordable to the annual Median Family Income. In the fourth quarter of 2008, the highest HOI in the state was Pueblo MSA (Metropolitan Statistical Area) (76.8%). The Fort Collins/Loveland MSA had the third lowest HOI in the state (70.2%). This means that 29.8% of homes sold within the Fort Collins/ Loveland MSA in 2008 were not affordable to families with income equal to the Median Family Income.Please note that these data do not show HOI for Colorado's ski resort areas, such as Summit and Eagle Counties. Median Family Incomes (MFI) in 2008 for these areas were $81,300 and $83,800 respectively. Although MFIs in these areas were higher than the Larimer County 2008 MFI, housing sale prices in these areas tend to be significantly higher than those in the Fort Collins-Loveland MSA.
What this chart shows: Households Paying 30% or More of Income for Mortgage, 2000 Census
Data Source: United States Census
What these data tell us:
In 2000, 26.2% of Larimer County homeowners were paying 30% or more of their household income toward a mortgage, with the majority of those households paying 35% or more. A greater percentage of Larimer County renters (42%) paid 30% or more of their household income toward rent, with 20% paying 50% or more of their household income toward rent (Affordable Rental Costs).
Additional Information:
On Compass -
- Affordable Rental Costs
- Federally Subsidized Housing
- Homelessness
- Household Types & Age of Residents
- Housing Occupancy - Ownership/Renting
- Residential Home Sales
Outside Compass -
- National Association of Home Builders
- United States Census Bureau
- United States Department of Housing and Urban Development
Data Tables:
Median Family Income and Average Home Sale Price in Fort Collins
|
Year |
Median Family Income |
Average Home Sale Price |
|
2000 |
$56,300 |
$194,500 |
|
2001 |
$58,200 |
$213,227 |
|
2002 |
$60,800 |
$217,416 |
|
2003 |
$64,800 |
$228,468 |
|
2004 |
$66,500 |
$230,589 |
|
2005 |
$69,200 |
$229,900 |
|
2006 |
$68,600 |
$230,000 |
|
2007 |
$68,200 |
$235,000 |
|
2008 |
$75,000 |
$233,000 |
Housing Opportunity Index - Fourth Quarter 2008
|
Metropolitan Statistical Area (MSA) |
HOI |
|
Boulder-Longmont PMSA |
62.1% |
|
Colorado Springs MSA |
71.8% |
|
Denver PMSA |
70.3% |
|
Fort Collins-Loveland MSA |
70.2% |
|
Greeley PMSA |
73.7% |
|
Pueblo MSA |
76.8% |
Households paying 30% or more of household income for mortgage (2000)
|
# Households |
30-34% |
# Households |
35% or more |
|
|
Larimer County |
3,541 |
8.5% |
7,346 |
17.7% |
|
Berthoud |
139 |
6.2% |
392 |
17.5% |
|
Estes Park |
150 |
8.3% |
461 |
25.6% |
|
Ft. Collins |
1,790 |
8.3% |
3,550 |
16.5% |
|
Livermore |
45 |
6.9% |
150 |
23.1% |
|
Loveland |
1,247 |
9.1% |
2,452 |
17.8% |
|
Timnath/Wellington |
170 |
10.1% |
341 |
20.2% |