Housing is generally the greatest, single expense for California families. Current standards measure housing cost in relation to gross household income: households spending more than 30 percent of their income, including utilities, are generally considered to be overpaying or “cost burdened.” Severe overpaying occurs when households pay 50 percent or more of their gross income for housing.
The impact of high housing costs falls disproportionately on extremely low-, very low-, and low-income households, especially renters. While some higher-income households may choose to spend greater portions of their income for housing, the cost burden for lower-income households reflects choices limited by a lack of a sufficient supply of housing affordable to these households. In 2010, according to the American Housing Survey, 41 percent of California's 3.2 million low-income renter households paid more than half of their income on rent. According to data from the U.S. Department of Housing and Community Development collected between 2006 and 2010, of the state's 2.2 million very low-income renters, 55.9 percent paid more than half of their income for rent. Low-income households that overpay for housing frequently have insufficient money left for other critical essentials, including food and medicine. This is a significant hardship for too many families and seniors; but it also impacts local economies, because money that might otherwise be spent in local stores (generating sales-tax revenues for the community) are being spent on housing.
An adequate analysis should:
- Describe total households and identify and analyze the number of lower-income households, by tenure (rental or ownership) that are paying more than 30 percent of their income toward housing. It should also include the number of households that pay 50 percent or more of their gross income toward housing.
- Where possible, identify households most significantly impacted by cost burdens (large families, seniors, etc.).
- Identify potential resources and programs to address the housing need.
Data Sources
- U.S. Census 2000 Summary File 3 (SF 3):
- Renters - H73: Household income in 1999 by gross rent as a percentage of household income in 1999.
- Owners - H97: Household income in 1999 by selected monthly owner costs as a percentage of household income in 1999.
- HUD’s Consolidated Housing Affordability Strategy
- U.S. Census American Community Survey: B25106 Tenure by Housing Costs as a Percentage of Household Income in the Past 12 Months
Pre-approved data packages are now available from HCD or your regional council of government.
Sample Tables
Housing Cost as a Percentage of Household Income Tables
| Housing Cost as a Percentage of Household Income | |||||
|---|---|---|---|---|---|
| Owner-Occupied Units | |||||
| Income Range | Total Households | % of Total Households | 0-20% of Household Income | 20-29% of Household Income | 30-34+% of Household Income |
| Income Range | Total Households | % of Total Households | 0-20% of Household Income | 20-29% of Household Income | 30-34+% of Household Income |
| $0-19,999 | |||||
| $20,000-34,999 | |||||
| $35,000-49,999 | |||||
| $50,000 + | |||||
| Subtotal | |||||
| Renter-Occupied Units | |||||
| $0-19,999 | |||||
| $20,000-34,999 | |||||
| $35,000-49,999 | |||||
| $50,000 + | |||||
| Subtotal | |||||
| Total | |||||
| Source: U.S. Census American Community Survey B25106. Note: Some households are not accounted for; therefore, figures may differ slightly for other U.S. Census estimates for total households. | |||||
Percent Table
| Percent | ||
|---|---|---|
| Percentage of Low-Income Households Overpaying for Housing | ||
| Owner-Occupied Units | ||
| Households with incomes less than 80% area median income | Paying 30% or more of household income | Percent |
| Households with incomes less than 80% area median income | Paying 30% or more of household income | |
| Renter-Occupied Units | ||
Housing Problems for All Households Table
| Housing Problems for All Households | |||
|---|---|---|---|
| Total Renters | Total Owners | Total Households | |
| Household income <= 30% median family income | |||
| % With any housing problems | |||
| % Cost burden > 30% | |||
| % Cost burden > 50% | |||
| Household income > 30% to <= 50% median family income | |||
| % With any housing problems | |||
| % Cost burden > 30% | |||
| Household income > 50% to <= 80% median family income | |||
| % With any housing problems | |||
| % Cost burden > 30% | |||
Source: HUD Comprehensive Housing Affordability Strategy (CHAS) Data - Data Query Tool