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September 24, 2013
More Houstonians are spending a higher percentage of their incomes on housing, a new study from Rice University's Shell Center for Sustainability shows.
The report's key finding revealed that half of Houston's City Council districts do not meet the conventional definition of affordable, which stipulates that the average household not spend more than 30 percent of its income to cover rent or mortgage expenses.
"It may involve looking at the mix of jobs being available in the city," he added. "It may involve increases in income relative to increases in the cost of living over time. It may involve also the change in demographics."
Adding transportation costs makes Houston seem less affordable to even more people.
The average Houstonian spends 30 percent on housing costs and 16 percent on transportation costs, the report shows. The combination of housing and transportation costs, 46 percent, puts Houston at No. 26 in the nation for affordability among the 50 largest cities, King said.
"That's something to watch," King said.
Philadelphia was the most affordable city based on those criteria, with 33 percent of household incomes going to housing and transit. New York ranked 4th with 37 percent and Chicago was 14th with 42 percent.
Since housing prices in Houston are already relatively low, King said policies aimed at reducing transportation costs would help make it a truly affordable city.
Only about 5 percent of Houstonians use public transit.
Aside from major efforts to improve connectivity in the road network, King cited programs like jitney systems and other shuttle programs that may "help increase transit usage and make living close to your job more attractive."
District F lagging
The study released Monday addressed other social, economic and environmental indicators of sustainable development, which King said is defined as "meeting the needs of the present generation without compromising the ability for future generations to meet their own needs."
In addition to housing affordability, the study examined flooding, unemployment and disparity in graduation rates.
The information was based on the 2010 Census, other national and state data and input from city government officials, academic institutions and nonprofits.
The report found that the percentage of housing units in Houston where residents spent more than 30 percent of their incomes on housing increased almost 50 percent in 2010 from 1990 and 2000 levels.
It found that residents of District F, which includes the Alief, Eldridge/West Oaks and Westchase neighborhoods, spent an average of 33.6 percent of their income on housing. That was the highest of the city's 11 council districts.
Other districts with higher levels of people putting more of their income toward housing were on the northeast side of town, as well as parts of south and southwest Houston.
The report notes a significant income disparity between District F and District E, which overall spent less than 30 percent of income on housing.
District F's median income of $39,766 was less than 60 percent of the median income in District E, which includes Clear Lake and the Edgebrook communities.
"This difference may explain why a higher percentage of households in District F are finding housing costs more unaffordable," the report states.
In addition to calling for further discussion by citizens and policymakers of the issues raised by the report, King also noted that Houston is wealthy enough to meet its challenges.
"This is good news, since a wealthy city has the necessary resources to become more sustainable," King said in an accompanying news release. "The problem in Houston is not one of scarce funds; it is a problem of making the right choices among competing interests."
