A shared Vision for East Allegheny July 1, 2007

Planning Area- Housing Market and Affordability

This section will examine housing supply and its ability to meet the present and projected demands of residents.

The following tables illustrate data from the West-Penn Multi-List. The Multi-List service provides historical and current sales data for southwestern Pennsylvania and is utilized for the majority of residential sales listed with real estate brokers and offices.
The following table details average days each single family home spent on the market before the listed property was sold. 90 days or three months is usually assumed to be a respectable and expected amount of time for a single-family home. The average days on market for each of the three communities are therefore within a reasonable range of the expected 90 days and indicate a healthy demand for housing within the planning area.

Table 20: Single Family Sales, Days on Market

Municipality	Single Family Properties Sold 1999-2003	Average Days on Market
East McKeesport	145	98.71
North Versailles	423	87.73
Wall	13	80.15

The following table lists the number of sales over the past five years along with average sales price of the properties sold. Trends and the market within Wall Borough are more difficult to analyze considering the small number of sales occurring there. East McKeesport’s sales prices have remained relatively stable, while those in North Versailles have steadily increased over the past five years.

Table 21: Average Sales Price- Single Family Housing

Municipality	Average Sales Price	Year	Single Family Homes Sold
East McKeesport	$55,533.33	1999	24
East McKeesport	$57,763.17	2000	30
East McKeesport	$56,560.08	2001	37
East McKeesport	$50,843.13	2002	32
East McKeesport	$54,787.73	2003	22
North Versailles	$57,824.48	1999	73
North Versailles	$63,254.53	2000	87
North Versailles	$62,956.21	2001	66
North Versailles	$67,081.00	2002	89
North Versailles	$70,729.60	2003	108
Wall	$34,900.00	1999	1
Wall	$10,533.33	2000	3
Wall	$27,833.33	2001	6
Wall	$6,000.00	2002	1
Wall	$48,500.00	2003	2

Source: West Penn Multi-List
The following table examines the change in value of owner-occupied housing units from 1990 and 2000, overall. After adjusting for inflation, the value of housing in both East McKeesport and North Versailles appears to have increased to exceed the rate of expected inflation. The value of owner-occupied housing in Wall Borough, however, has decreased.

Table 22: Housing Demand

Median Value of Owner Occupied Housing Units
	2000	1990	1990 Adjusted for Inflation
East McKeesport	$53,500	$ 38,000	$ 50,920
North Versailles	$62,400	$ 43,400	$ 58,156
Wall	$35,300	$ 26,700	$ 35,778
			*using percent increase in consumer price index between 1989 and 1999.

Generally, the values and sales level of single family detached housing and housing overall within the planning area has increased since 1990. The following table specifically examines condominium and townhouse units. Existing townhouses within North Versailles appear to sell in the $60,000 to $70,000 range. Sales of new or relatively new construction within the area of Clavale Drive, however, are typically in the range of $80,000 to $90,000.

Table 23: Townhouse or Condominium Units

Name	Average Sales Price	Year	Townhouse Units Sold
East McKeesport	$92,500.00	2001	2
North Versailles	$60,133.33	1999	3
North Versailles	$63,342.86	2000	7
North Versailles	$64,650.00	2001	6
North Versailles	$61,904.55	2002	11
North Versailles	$64,349.30	2003	10

Source: West-Penn Multi-List

Table 24: Percent of Gross Income Required for Rent

Median Household Income	2000	1990	1990 Adjusted for Inflation	Percent Change
Allegheny County	$38,329	$ 28,136	$ 37,702.24	2%
East McKeesport	$28,431	$ 20,861	$ 27,953.74	2%
North Versailles	$30,617	$ 25,130	$ 33,674.20	-9%
Wall	$26,595	$ 17,857	$ 23,928.38	11%

Source: 2000 Census
Trends in household income are important in evaluating the affordability of the current housing stock and in projecting the future housing market. After adjusting the 1990 median household income to 2000 figures (used percent increase in consumer price index between 1989 and 1999), Wall Borough experiences the greatest percent increase in median household income. This increase may be attributable to younger families renting or purchasing home formerly occupied by elderly residents. East McKeesport’s median family income rose at the same rate as Allegheny County while North Versailles’ median family income fell by 9%. This drop is in contrast to the increase in housing values experienced by the Township.

Chart 1: Median Family Income by Age of Householder

Table 25: Median Family Income by Age of Householder

Municipality	under 25 years	25 to 34 years	35 to 44 years	45 to 54 years	55 to 64 years	65 to 74 years	75 years and over
E McKeesport	$ 20,625	$ 39,792	$ 32,438	$ 41,397	$27,788	$ 27,625	$ 14,792
N Versailles	$ 14,821	$ 31,968	$ 36,662	$ 47,500	$34,600	$ 24,594	$ 20,863
Wall	$ 26,667	$ 23,750	$ 30,000	$ 31,719	$38,333	$ 26,667	$ 16,000

The preceding chart and table illustrate the median family income by the age of the householder. In the Boroughs, elderly residents over the age of 75 have considerably lower median household incomes than those in the Township. Conversely, the youngest householders within the Township experience a considerably lower median household income when compared to the boroughs and the township as a whole.

Table 26: Median Gross Rent

Median Gross Rent
	2000	1990	1990 Adjusted for Inflation
East McKeesport	$ 419	$ 353	$ 473
North Versailles	$ 463	$ 362	$ 485
Wall	$ 471	$ 348	$ 466
			*using percent increase in consumer price index between 1989 and 1999.

Table 27: Percent of Gross Income Required for Mortgage

Municipality	2000 Average Housing Value*	Local Mills	Total Mills**	Annual Taxes	Average Household Income***	Monthly Mortgage****	Monthly Gross Income	Percent of Gross Income Required for Mortgage Payment
East McKeesport	$53,500	6.1	30.09	$ 1,609.82	$20,625	505	$1,718.75	29%
North Versailles	$62,400	4	27.99	$ 1,746.58	$14,821	575	$1,235.08	47%
Wall	$35,300	6	29.99	$ 1,058.65	$26,667	335	$2,222.25	15%
* Owner Occupied Units
** 2004 Values
*** Householder under 25 years
**** Including insurance, private mortgage insurance, and taxes

Consideration of certain income demographics, as cited, is key to proper planning for current and future residents. The preceding table outlines housing affordability for younger householders and families, those 25 years or younger. The analysis conducted assumes a standard that gross mortgage payment, including taxes, private mortgage insurance, and property insurance should not exceed 28% of gross monthly income. The preceding monthly payments assume 5% down on the 2000 median housing value. Therefore, affordability in Wall and East McKeesport appears readily attainable, given the value of current housing stock. Housing in North Versailles is comparatively unaffordable for younger families when both owner and renter household incomes are evaluated. It is notable that owner and renter incomes demonstrate a disparity in North Versailles as illustrated in the table below.

Table 28: 2000 Median Household Income

2000 Median Household Income
Municipality	Owner	Renter	Renter- Percent of Owner Median Income
East McKeesport	$35,785	$22,173	62%
North Versailles	$35,370	$22,004	62%
Wall	$28,523	$25,139	88%

While the same disparity exists in East McKeesport, lower housing values provide greater opportunities for home ownership. Also, as discussed, median household incomes where North Versailles’ householders are 25 years and younger are comparatively low. Of all three municipalities, Wall Borough offers the greatest affordability for homeownership to younger families.

Existing single family housing stock of an affordable nature combined with an aging population helps to provide home ownership opportunities to younger families. These opportunities translate as opportunities for the planning area as well by encouraging stability in the community and lessening the risk of blight and absentee landlords.

Table 29: Percent of Gross Income Required for Rent

Municipality	Monthly Rent 2000)	Rental Households (2000 Median Income)	Gross Monthly Income	Percent of Monthly for Rent
East McKeesport	$419	22,173	$ 1,847.75	23%
North Versailles	$463	22,004	$ 1,833.67	25%
Wall	$471	25,139	$ 2,094.92	22%

Lastly, the above table demonstrates affordability for renters. However, the percent of gross income spent on rent approaches 28% of monthly income, which the householder could otherwise contribute to a mortgage. The preceding analysis of younger families demonstrates that homeownership, at least in terms of monthly payment, is realistic for many current renters.