At the very core of the "American Dream" is the concept of homeownership. But for many citizens this dream seems all but impossible because they don't earn enough income to afford safe, quality housing close to where they work.
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Counseling Provides Long Term Benefits |
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While the Home Affordable Modification Program may have been deemed largely ineffective, seeking the help of housing counselors has shown positive long-term effects.
One study examined a sample of 180,000 borrowers who received counseling in 2008 and 2009 and found that 36 percent of those homeowners fell back into foreclosure or serious delinquency after eight months, compared to 49 percent who did not seek counseling. |
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Homeownership is Key Driver of Economy |
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Housing is a key driver of our economy, accounting for 15% of our Gross Domestic Product in general. Research shows that for every home purchased, $60,000 is pumped into the economy for furniture, home improvements and related items. Plus, homeowners pay 80-90% of individual federal income taxes, contributing to federal programs that benefit all Americans. |
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How critical is the need for affordable housing? |
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According to "The State of Housing in North Carolina," the shortage of affordable housing affects 20.7 percent of homeowners and 33.4 percent of renters who spend more than 30 percent of their income on housing payments.
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How does homeownership benefit a community? |
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Homeowners have a much greater stake in their community. Owners tend to remain in their homes longer, adding a degree of stability to their neighborhood. And, they take more pride in maintaining and improving their property which enhances the neighborhood even more. Studies show that homeownership leads to lower crime rates and increased educational achievement. |
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Key Housing Facts |
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According to the National Low Income Housing Coalition’s 2011 “Out of Reach” study, N.C. ranks 22nd in two-bedroom housing wage, meaning, a family in N.C. must make an hourly wage of $13.81 to afford a two-bedroom apartment . That’s up 30 percent since 2000. The average home in N.C. cost $197,019 in 2011, up 16 percent from 2000. According to the 2011 U.S. Census, the median income in N.C. is $45,570. In N.C., 17.4 percent of residents live in poverty – that’s two percentage points higher than the national rate and 14.3 percent higher than the poverty rate in N.C. in 2007, according to the new Small Area Income and Poverty Estimates.
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Less Being Spent on Mortgage Payment |
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For the past three decades, buyers could expect to spend approximately 25 percent of their monthly gross income on a mortgage. Today, the number has declined to 17 percent. |
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NC homes getting more affordable |
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The average sales price of an existing home in North Carolina in 2011was $197,019. This is a 3 percent decrease from 2010’s average price and a 12 percent decline from the peak in 2007. |
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Net Worth Much Higher for Homeowners than Renters |
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Owning a home is one of the best ways to build long-term wealth. In the past 12 years, a typical homeowner's net worth has been 31 to 46 times that of a renter. Additionally, homeownership leads to higher education achievement, civic participation and overall quality of life. |
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One-fifth cannot afford housing in NC |
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It’s estimated that 2 million North Carolinians either pay more than 30 percent of their income for housing or live in substandard conditions. |
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Wage growth looking dismal for semi-skilled workers |
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Wages in North Carolina are expected to decrease for semi-skilled workers as lower-paying service jobs replace manufacturing jobs lost in disappearing industries. According to the NC Commission on Workforce Development, about half of the state’s new jobs will be considered low-skill jobs, which will pay only about 60 percent of the state’s current average earnings. |
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Why is affordable housing important to you? |
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Affordable housing leads to a strong, growing community. It attracts new business, which increases jobs and expands the tax base. |
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