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ANALYSIS : AFRAMEWORK FORDOWNTOWNBLACKSBURG

CHAPTER 2

COST OF HOUSING

What is Affordability? As alluded to in the previous section, housing affordability is, in the simplest terms, the amount that a household can afford to pay for its housing. That amount is, of course, determined by a household’s income and by its other expenses. The general rule of thumb is that no more than thirty percent of a household’s income should be spent towards housing. More than that, and the housing is considered “unaffordable” for that household. In reality, many households throughout the country are living in housing that is unaffordable to them. In communities where demand is high and housing prices have risen to match, low- and middle-income households can often not find housing that meets the thirty percent threshold. In some cases, these households may be able to find affordable housing through government programs, either in properties that are rent- restricted or through the use of rent vouchers. However, these programs are limited to households making below certain income levels, and even then, these programs are not large enough to serve everyone who is eligible. For households who cannot find housing in their community that is affordable to them, one option is to pay the market rent and forego other expenses in order to pay for housing costs. These “cost burdens” from housing reduce the resources available for families to invest in opportunities for their children, in education, or in other priorities. Other families may instead be forced to move to other communities where prices are more affordable to them.

KEY METRICS

The median home value in Blacksburg; 66% higher than the Blacksburg-Christianburg- Radford area average of $165K $270k

Household income needed to afford a median-priced home in Blacksburg $73k Median income of households headed by people aged 25-44 $49k Median income of households headed by people aged 45-54 $82k Median income of households headed by people aged 55-64 $79k

AFFORDABLE HOUSING

PRICE DICTATED BY Government Programs

PRIMARY GOAL

Equity

TARGET MARKET

Low/Mid Income Households

39 Downtown Blacksburg Strategic Plan

WORKFORCE HOUSING

PRICE DICTATED BY Market Forces

PRIMARY GOAL

Livability

TARGET MARKET

Middle Income Households