Agenda - 04-01-1992 - Laserfiche WebLink

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B. MARKET AND INVENTORY CONDITIONS. 1. Housing 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 f=orce, and the 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. 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 low- and moderate- income families for the lowest cost housing. Because students can live in groups and combine resources, they are able and willing to pay more for rental units than low- and moderate - income families can. Rental units represented 44% of the countywide housing market in 1987, and the 1980 Census estimated that 37% of those rental households paid more than 35% of their incomes for rent. While the number of multifamily rental units have increased since 1980, they are generally not -affordable to or appropriate for families. In the Town of Chapel Hill, rental units were 60% of the total housing stock in 1980, and between 1980 and 1986, 75% of all building permits issued were for multifamily developments. In the late 1980's, many new multifamily projects were offering premiums of up to 9 months free rent to fill the oversupply of new units, but these premiums are no longer available. In order to afford Chapel Hill's average 3- bedroom rent in 1988 of $529, a family of four would have to earn at least $25,000, or about 63% of the area median family income.3 Very low income families (below 50% of the area median) cannot afford even the 1988 average 2- bedroom rent of $442. In 1988, 53.2% of Carrboro's total housing stock was multifamily rental units, concentrated in 14 major apartment complexes. Average 2- bedroom rent was $455, comparable to Chapel Hill, and affordable to a family with $22,200 annual income. Very few 3- bedroom rental units are available in Carrboro. 3Affordable 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. 10