Stats show high cost of city housing

Nearly half of Charlottesville renters are spending at least 35 percent of their household income on housing, according to new U.S. Census Bureau figures likely to trouble the city’s affordable housing backers.
“That’s a worrisome number,” Mayor Dave Norris said.

The information released today comes from American Community Survey estimates compiled from 2005 to 2007 to gauge trends on economic and social topics, including demographics, housing, race and educational attainment. The survey gives the first detailed update about the city since the 2000 Census.
The data show that of those living in the 9,008 renter-occupied units in the city, 4,252 devoted at least 35 percent of their household income toward rent.
The next largest group — 12 percent of those renting, or 1,092 households — spent less than 15 percent of their income on rent.
The affordable-living rule of thumb is that rent should not exceed 30 percent of income.
During the survey’s three-year period, roughly 58 percent of Charlottesville’s rental units cost $500 to $999 per month. About 19 percent had rents of between $1,000 and $1,499.
The median household income rose from $31,007 in 1999 to $36,013 in 2007. In 2007, 17.5 percent of the city’s 16,694 households, or 2,926, were earning between $15,000 and $24,999. The next largest group was households with incomes from $50,000 to $74,999, the bracket in which 2,715 households fell.

‘The new Census’

The annual survey will replace the long form distributed during the decennial Census in 2010, though the shorter form that includes questions about age, gender and race will still be sent to U.S. households.
“It is basically the new Census,” said Qian Cai, director for the demographics and workforce section at the University of Virginia’s Weldon Cooper Center for Public Service.
Cai said a perk of the new estimates is that instead of waiting 10 years for new information, Charlottesville will receive updated estimates annually. She cautioned, though, that many categories in the new survey, which were compiled over three years, cannot be directly compared with the 2000 Census figures gathered about a specific point in time.
As with any small city with a large university presence, Cai said, students are bound to somewhat taint income estimates.
“As students move off campus into rental properties, that could contribute to that high percentage” of renters paying 35 percent or more of their income, Cai said.
City spokesman Ric Barrick concurred, saying the university’s presence poses a challenge for city officials seeking to assess just how much students contribute to Census data and estimates.
“Over the years, UVa has gotten larger and we’re housing more UVa students than before,” he said.

Owners fare better than renters

Compared with renters, significantly fewer homeowners with mortgages were defying the affordable-living rule of thumb. A total of 1,697 households, or roughly 22 percent of Charlottesville’s 7,686 owner-occupied units, were devoting 35 percent or more of their income to housing costs.
The next largest group, or 1,264 households, spent less than 20 percent of their household income on their mortgages.
Norris said that any segment of the population, be they homeowners or renters, who pay more than 35 percent of their income toward housing often must make difficult living choices as a result of Charlottesville’s high cost of living.
“That number has real-life consequences,” he said. “People who are experiencing that know it.”
Barrick added that because of formerly skyrocketing property assessments and increasing land and housing values, the city has seen a popularity increase for its rent- and tax-relief programs.
“I would expect that to certainly continue,” he said.