A shared Vision for East Allegheny July 1, 2007


Planning Area- Housing Market and Affordability



Download 7.5 Mb.
bet11/18
Sana09.09.2017
Hajmi7.5 Mb.
1   ...   7   8   9   10   11   12   13   14   ...   18

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.




Download 7.5 Mb.

Do'stlaringiz bilan baham:
1   ...   7   8   9   10   11   12   13   14   ...   18




Ma'lumotlar bazasi mualliflik huquqi bilan himoyalangan ©hozir.org 2020
ma'muriyatiga murojaat qiling

    Bosh sahifa
davlat universiteti
ta’lim vazirligi
O’zbekiston respublikasi
maxsus ta’lim
zbekiston respublikasi
o’rta maxsus
davlat pedagogika
axborot texnologiyalari
nomidagi toshkent
pedagogika instituti
texnologiyalari universiteti
navoiy nomidagi
samarqand davlat
guruh talabasi
ta’limi vazirligi
nomidagi samarqand
toshkent axborot
toshkent davlat
haqida tushuncha
Darsning maqsadi
xorazmiy nomidagi
Toshkent davlat
vazirligi toshkent
tashkil etish
Alisher navoiy
Ўзбекистон республикаси
rivojlantirish vazirligi
matematika fakulteti
pedagogika universiteti
таълим вазирлиги
sinflar uchun
Nizomiy nomidagi
tibbiyot akademiyasi
maxsus ta'lim
ta'lim vazirligi
махсус таълим
bilan ishlash
o’rta ta’lim
fanlar fakulteti
Referat mavzu
Navoiy davlat
umumiy o’rta
haqida umumiy
Buxoro davlat
fanining predmeti
fizika matematika
universiteti fizika
malakasini oshirish
kommunikatsiyalarini rivojlantirish
davlat sharqshunoslik
jizzax davlat