Cost of Housing

Affordable housing is defined as housing that costs no more than 30% of gross income. According to Census 2000, 24% of owners with mortgages, 7% of owners without mortgages, and 45% of renters in Stark County spent 30% or more of household income on housing.¹

The period from 1995 to 1999 saw an enormous increase in home refinancing. One key factor attributing to home refinancing was the lower interest rates during that period. Statewide, the number of refinanced loans increased 229%.² Lending for home purchases saw a much slower growth rate during the same period, 22.5%. The rate for minorities was even lower with a 5.3% growth in home purchase lending during that time.³

A disturbing recent trend in community development has been the decline in home improvement lending. From 1995 to 1999, there was a 9.1% decline in loans for home improvement lending.⁴

There are a number of costs associated with home ownership that can lead to financial difficulty. Monthly costs for homeowners include property taxes, special assessments, home/hazard insurance, utilities and maintenance.⁵ The median monthly housing cost for mortgage holders was $864 and for renters was $485.⁶ These costs are often ignored when considering whether or not being a homeowner is a financially feasible option.

Efforts should be made to extend home-buying opportunities to underserved segments of the population. It is, however, important that these efforts are based in equitable and just financial practices.