Agenda - 10-14-1993 - C 1 - Laserfiche WebLink

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` J LJ t� J J L 2. Market and Inventory Conditions 0 0 7 i. General Market and Inventory Housinq_ Conditions Although data are not readily available for current estimates of housing assistance needs of low- and moderate-income households, recent reports from the Town of Chapel Hill Comprehensive Plan, the Orange County Low and Moderate Income Housing Task Force, and the Hillsborough and Carrboro Planning Department summarize the market conditions in Orange County clearly. Generally, the cost of obtaining housing in the County has risen significantly faster than incomes of families seeking housing in the market. Rental Housing According to the 1990 Census, rental units represent 42% of the county-wide housing market. In the southern part of the County, the rental market has been inflated by the large number of University of North Carolina students who compete with very low- and low-income families for the lowest cost housing. Because students can live in groups and combine their resources, they are willing and able to pay more for rental units than very low- and low-income families. The Census also reports that approximately 57% of those rental households spent more than 35% of their income on rent. In the 1980 ' s, Orange County experienced a surge in the construction of multi-family units. Between 1980 and 1986 in Chapel Hill, 75% of all building permits issued were for multi- family developments, and by 1990, multi-family units were 79% of Chapel Hill ' s total housing stock. In order to afford Chapel Hill' s average 3-bedroom rent in 1993 of $550, a family of four would have to earn at least $25, 000, or about 63% of the area median family income.' Very low-income families (below 50% of the area median) cannot even afford the 1993 average 2-bedroom rent of $475. In 1990, 70% of Carrboro' s total housing stock was multi- family rental units, concentrated in 14 major apartment complexes. The average 2-bedroom rent was $455, and only affordable to a family with an annual income of $22 ,200. As in Chapel Hill, the neighboring Town of Carrboro has very few 3-bedroom or larger rental units. In addition to high market rents, very few apartment complexes 1 Affordable Rent calculated using the following methodology: Monthly Rent + Estimated Utilities ($100) = Total Housing Payment. Total Housing Payment/30% (Housing Ratio) = Monthly Income Required. Monthly Income Required X 12 = Annual Income Required. 4