Indicator: 45 - Family Housing Costs
Why This Is Important
Housing is a major expense for most families; however, spending
more than 30% of income on housing may compromise the budget for
other essential goods and services. Nationally the share of all
households (containing children) spending at least 30% of their
incomes on housing increased from 15% in 1978 to 28% in 1995, while
the share spending at least half their income on housing doubled
from 6% in 1978 to 12% in 1995. For renter households with children
and very low income the trend was similar, but housing expenses were
a much higher share of income.
Where We Stand
This Maine data seems to reflect national trends in that renters
pay a much higher share of income for housing expenses. Renters
spend approximately 42% of their income on housing compared to
approximately 15% for those who own their home.
Data Sources and Context
he data source for this indicator is the Maine Development
Foundation’s Annual Survey of Maine Citizens (1998). Respondents to
a statewide telephone interview were asked the following questions:
(1) What is your current mortgage payment each month for your
home, not including taxes or insurance? and
(2) How much is your monthly rent, not including heat and
electricity?
The methodology used to get the data presented above was the
following: First, MDF broke income into 5 categories. The amount per
month is based on the lower end of the bracket:
- Under $15K - $375/month
- $15-24K - $600/month
- $25-34K - $625/month
- $35 - 49K - $ 875/month
- $50K plus - $1250/month
Second, from these numbers, the total number of people within each
income bracket paying above that were then added. This total was
divided by the total number of respondents in each income group,
giving a percentage of people in Maine in 1998 paying more than 30%
of their income in rent (or in mortgage). The final data presented
are not absolute, due to the range of income within given brackets.
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