BLACKSBURG, June 4, 1999 -- The constant stream of economic good news the past few years may not be as bright as it seems, according to a new study by the Center for Housing Research at Virginia Tech. The findings indicate that low-income families face extremely high housing rental costs--in most Virginia jurisdictions exceeding 30 percent of their income. On average, low-income families would have to spend about half of their income to rent a decent, modest apartment in Virginia. Some--especially low-income residents in the Eastern Shore/Great Neck area and in south central Virginia--would pay in excess of 70 percent of their income for a standard quality unit, forcing many to live in crowded or sub-standard housing.
"The findings are surprising because it has been a strong economy for the middle and upper classes, and it might appear that everyone is doing well," says C. Theodore Koebel, director of the Virginia Center for Housing Research at Virginia Tech. "This is the forgotten portion of our society." Similar data from the Department of Housing and Urban Development indicate this is a nationwide trend, and that fewer affordable housing units are available in all states.
The findings of the Virginia Tech Center for Housing Research are based on its Virginia Rent Burden Index, which was developed to understand relative housing needs in localities across the state. It is a unique study in that, by converting rental costs to percentage of income for low-income families, it enables researchers to develop comparisons over time and between localities.
Among the study's findings:
- Even though 70 percent of Virginians now own their own homes, affordable
housing has not increased across the income range. While the rent burden index
for median-income families decreased slightly from 15.6 percent in 1989 to 15.2
percent in 1996, the rent burden index for low-income families increased from
42.0 percent to 51.2 percent.
- Seventeen Virginia localities saw their rent burden indexes more than double
from 1989 to 1996.
- More than 30 localities have rent burdens for a standard quality unit that
exceed 70 percent of income.
- Rental costs for a standard quality unit exceed 30 percent of income for
low-income families in 131 of 135 jurisdictions in Virginia.
- On average, low-income families pay about half of their income to rent a
decent but modest apartment in Virginia.
- Virginia localities with the highest rent burdens include Petersburg, Accomack, Norfolk, and Portsmouth. Virginia localities with the lowest rent burdens include Manassas, Fairfax, Chesterfield, and Loudon.
Koebel says the alarming implication of the study is that the distance between the "haves" and the "have nots" is widening--dangerously. "Housing is so fundamental to everyone. There is no single symbol of American success as globally recognized as the quality of housing we occupy. The low-income families in this study [the bottom 30 percent in each jurisdiction] are primarily working poor with earned income. We are kidding ourselves if we think this disparity won't cause additional societal problems."
The full study, Losing Ground in Virginia: The Inaffordability of Rental Housing for Low-Income Families in the 1990s, can be accessed through the Internet at www.arch.vt.edu/vchr/vchr.html and includes maps, graphs, tables, and references. For more information about the study or to obtain a copy of the research, contact the Center for Housing Research at Virginia Tech at 540-231-3993. Lydeana H. Martin, a graduate student in the department of Urban Affairs and Planning in the College of Architecture and Urban Studies at Virginia Tech, was co-author of the study.
Koebel will be publicly presenting the results of the study October 13, 1999 at the Rural Housing Coalition Conference sponsored by the Federal Reserve Bank of Richmond (Va.).
The Center for Housing Research at Virginia Tech is a university-wide center established by the Virginia General Assembly in 1989. Dr. Koebel is a professor of housing and urban planning in the College of Architecture and Urban Studies.