Indicator: Family Housing Costs

Outcome (s): Families having opportunities to work and play

Why This is Important

Housing is a major expense for most families. Spending more than 30% of income on housing, depicted in the first chart, may compromise the budget for other essential goods and services. In the second graph presented, based on the Maine Housing Authority home ownership and rental affordability index, it is evident that housing in Maine has become less affordable in each successive year. The index charted here is the weighted average of the homeownership affordability index and the rental affordability index. The index value of “1” indicates affordability. Any value less than “1”, implies less affordable housing.

Where We Stand

According to the Maine State Housing Authority, the median home price in the state has risen 68% in the past 6 years (2000-2006).  For Maine renters,  the median rent cost has increased 30% during the same period, while median income has risen only 17%, lagging sharply behind increases in housing costs.

Data Source and Context

Data on this indicator comes from the American Community Survey, http://www.census.gov/acs/www , and the Maine State Housing Authority, and Maine Economic Growth Council’s Measures of Growth 2007.