Orange County NC Website
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Market and Inventory Conditions. While some families are experiencing <br />the cost burden associated with homeownership, most very low- and low - <br />income families have not been able to become homeowners in Orange <br />County. A family of four with income of 60% of the area median, or <br />approximately $26,000, can afford a mortgage payment of approximately <br />$505, which can support a mortgage of $61,500.2 Very few <br />homeownership opportunities exist for such families in Orange County. <br />Data on the actual number of very low- and low- income homeowners are <br />unavailable. <br />2. Five -year Projections. No formal projections have been made by local <br />governments in Orange County, but over the next five years, rising <br />housing costs will continue to outpace income growth, creating a growing <br />cost burden on low- income families. Nearby rural counties are now <br />absorbing the families that cannot afford to live in Orange County, and <br />as the housing markets in those counties "catches up" with Orange <br />County over the next five years, fewer and fewer opportunities will be <br />available for low- income families. <br />While the Triangle area has experienced very low unemployment and a <br />very stable economy throughout the 1980's, the majority of Orange <br />County employment opportunities are in the service sector, usually lower <br />wage and low skill employment. Recent budget cuts by the State <br />threaten the main employer in the county, the University of North <br />Carolina. At the least, income growth in the service and government <br />sector will not increase and may slow down, as annual cost of living <br />increases are reduced or eliminated. No proportional slowing of real <br />estate appreciation has been experienced in the southern part of Orange <br />County, indicating that the affordability gap will continue to grow, and the <br />number of families paying disproportionate amounts of income for <br />housing will continue to increase. <br />3. Sul2portive Housing Needs of Homeless Persons. Data on homeless <br />persons in Orange County come directly from the homeless shelter. A <br />recent report from the Inter -Faith Council Homeless Shelter indicates <br />2Mortgage amounts are calculated using the following methodology: Monthly Income <br />X.40 (Total Debt Ratio) = Total Monthly Debt. Total Monthly Debt - Estimated Taxes and <br />Insurance ($125) and Estimated Other Debt ($250 to $350) = Total Available for <br />Mortgage.- Assumed Mortgage Term of 30 years and Assumed Interest Rate of 9.25%. <br />While this methodology is more subject to variation based on Estimated Other Debt, it <br />presents a more realistic view of mortgage qualification. <br />4 <br />