Did You Know: Income-Housing Cost Mismatch
September 2, 2010
By Sophia Stuart, Marketing Associate
- In 1960, only 12 percent of renter households spent half or more of their incomes on housing. By 2008, that share had doubled.
- In 1960, half of renters in the bottom income quartile spent 39 percent or less of their incomes on housing. In 2008, half spent 54 percent or more.
- In 1960, the median house price-to-income ratio was 1.86. In 2008, even with mortgage interest rates close to those in 1960, it was 3.34.
- In combination with slow income growth and rising land and development costs, these improvements in quality have also added to the affordability challenges of low-income households.
Source: The State of the Nation's Housing 2010 Joint Housing Center of Harvard University
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