The Problem
Overview
Housing affordability in Greenville, SC is quickly becoming a major concern for our community. Increasingly, working families are paying more of their income toward housing expenses and have less income to pay for necessities, such as food, healthcare, childcare, education and transportation.
Financial experts say that families should spend no more than a third of their household income toward housing expenses. However, the Center for Housing Policy reports that more than 13 million families in the U.S. spend more than half of their income on housing expenses. Four million of these families work full-time jobs in various occupations that include teachers, police officers, firefighters and service workers.
The Center for Housing Policy analysis also showed that despite ongoing technological advances, high-tech jobs are not eliminating traditional occupations that pay traditional wages. Retail sales workers, teachers, food preparation workers, cashiers, and janitors are all on the U.S. Department of Labor’s list of 10 occupations with the largest projected job growth for 2002-2012. Although these industries should continue to grow, incomes will not necessarily increase accordingly. This makes affordable housing less obtainable without assistance for many working citizens.
Housing affordability is even more of a concern for extremely low-income families. The homeless, elderly, and the mentally and physically disabled population in Greenville face even greater challenges in obtaining affordable, decent and safe housing.
Greenville Housing Conditions
Unfortunately, studies point to continued struggles in finding safe, affordable housing in Greenville, South Carolina. Below are several studies that demonstrate a need for affordable housing assistance in our area.
In 2005, the United Way of Greenville County released the Affordable Housing Opportunity Assessment, a local study of affordable housing issues and needs. The Opportunity Assessment identified the following as pressing housing issues in Greenville:
- Older deteriorating housing stock – much of the local housing stock, particularly in the city limits is older than 50 years. Much of the housing has suffered from deferred maintenance.
- Large quantity of substandard housing that needs critical repairs or to be torn down to make room for a suitable structure.
- Limited affordable rental space; especially for households earning 50% or more below the Area Median Income.
- Workforce housing is becoming out of reach due to increased housing costs and stagnant wages.
- Limited housing options for persons with special needs such as the elderly, disabled and homeless.
45% of Greenville’s households earn less than $42,500 a year, and the median household income in the area is $41,149. Studies have shown that in order to afford a house in one of Greenville’s average neighborhoods, an income of at least $50,000 is necessary to cover closing costs and a down payment.
It is a case of housing prices out pacing wages, especially in our large workforces like police officers, hospital workers, and teachers, who earn about $38,000 a year.
Without affordable options, many will move away from Greenville causing a deficit in the workforces that help our citizens every day. Our problem has less to do with the national downturn of the economy and the housing market, but more to do with how we as a community address housing.
The Strom Thurman Institute at Clemson University conducted a study that showed:
- The homeownership rate for Greenville County in 2000 was 68.2 percent, which is lower than the state average of 72.2 percent.
- Nearly 1,800 renters in the city of Greenville relocate each year due to either financial distress or to poor property condition.
- 19 of Greenville’s census tracts (geographical areas) fall within the top ten percent of the state’s 867 census with high affordable housing needs.
- Also, a study by the Center for Housing Policy of Greenville, entitled Paycheck to Paycheck, showed:
- The median sales price for a home in Greenville was $149,000 in the 3rd quarter of 2006.
- The annual income needed to afford a median-priced home was $49,000.
- Out of the 63 occupations selected for the study, only 8% of the 63 occupations could afford a median-priced home.
- Some of the occupations included: Civil Engineer, Computer Programmer, Construction Mgr., Registered Nurse, and Physical Therapist.
- 92% of the 63 occupations could not afford a median-priced home.
- 29% of the 63 occupations could not afford a 2-bedroom apartment.
- Visit http://www.nhc.org/chp/p2p/ to view more of this study. You can search for Greenville, SC and/or by specific occupations.
Housing Economic Trends
Between 2002 and 2007, the cost of housing in South Carolina grew by 128%.
This staggering increase has hindered numerous Greenville citizens trying to maintain or purchase their home. Below are some trends related to the need for affordable housing.
Attracting Business to the Area
Companies are increasingly concerned with the availability of workforce and affordable housing when determining where to locate.
The Upstate region must become and remain competitive with other communities that are aggressively addressing affordable and workforce housing issues.
Increasing Fuel Prices Affects Housing Costs
As the price of gasoline has increased by 1/3 in the past year, the annual cost of driving to work has become equivalent to an extra mortgage payment for some. Cross-country commuting is no longer a solution to addressing affordable housing availability. 70% of respondents in a recent survey cite gas prices as a major consideration in determining where to live.
