Quality of Life Indicators

individual & family wellbeing data

Cost of Living Index - updated 6/4/08
median family income
percentage of families in poverty
households overpaying for housing
Housing Opportunity Index - updated 3/08

Cost of Living Index - updated 6/4/08

The Cost of Living Index compares living costs (such as housing, transportation, utilities, groceries, and healthcare) for the typical middle-class family. Comparing our costs with cities around the country is often a first step for companies considering relocating to our region.  Every component of the COL Index increased in the first quarter of 2008, except transportation.  After several years with a lower COL composite than Las Vegas, the Reno MSA 110.8 composite grew at a faster rate for the first quarter.  Other composite numbers for some comparable cities across the western US for first quarter include:

Phoenix, AZ 101.6
Albuquerque, NM 95.5
Portland, OR 119.9
Salt Lake City, UT 98.7

median family income

Median family income divides the income distribution into two equal groups: one having incomes above the median; and the other having incomes below the median. The Department of Housing and Urban Development tracks median family income for Nevada to evaluate housing costs and affordability. The change in median family income shows if the typical family can keep up financially.

percentage of families in poverty

Although the American Community Survey census data is lagged, it indicates the percentage of families living in the most desperate situations. Community programs aimed at workforce development and literacy could help reduce the percentage of families in poverty. The US poverty threshold for a family of four, two adults and two children, was $19,803 in 2004, and $20,000 in 2006.

households overpaying for housing

According to the US Department of Housing and Urban Development: “The generally accepted definition of affordability is for a household to pay no more than 30% of its annual income on housing. An estimated 12 million renter and homeowner households now pay more then 50% of their annual incomes for housing, and a family with one full-time worker earning the minimum wage cannot afford the local fair-market rent for a two-bedroom apartment anywhere in the United States.” Overall, housing overpayment, including utility and insurance costs, is a more prevalent problem among renter-households than among owner-households. Community programs can support the creation of more affordable housing opportunities.

Housing Opportunity Index - updated 3/08

A measure that is similar to the Housing Affordability Index is the Housing Opportunity Index. It tells the percentage of homes sold in an area that would have been affordable to a family earning the local median income based on standard mortgage criteria. While the Reno MSA was in a very strong position from the 1990s through 2003, we have dropped significantly in recent years. Employers considering relocation to northern Nevada factor housing costs into their economic decision-making.