Quality of Life Indicators
individual & family wellbeing data
Cost of Living Index - updated 8/29/10
percentage of families in poverty -- updated 7/2/10
median family income -- updated 7/23/10
households overpaying for housing -- updated 7/23/10
Housing Opportunity Index - updated 6/21/10
Cost of Living Index - updated 8/29/10
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 has increased, except transportation. After several years with a lower COL composite than Las Vegas, the Reno MSA 101.4 composite grew at a faster rate, but dropped below Las Vegas, first quarter 2010. Other composite numbers for some comparable cities across the western US for first quarter 2008 include:
Phoenix, AZ 101.6
Albuquerque, NM 95.5
Portland, OR 119.9
Salt Lake City, UT 98.7
percentage of families in poverty -- updated 7/2/10
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. In Washoe County, 13% of people were estimated to be in poverty in 2008. The US poverty threshold for a family of four, two adults and two children, was $19,803 in 2004, and $21,834 in 2008; the poverty threshold for 1-person in 2008 was $10,991; < 65 years $11,201; and ≥ 65 $10,326.
median family income -- updated 7/23/10
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. Washoe County’s median family income in 2008 was $70,532, compared to $63,366 for the US.
households overpaying for housing -- updated 7/23/10
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.
The U. S. Department of Housing and Urban Development guidelines establish that homeowners are overpaying if their mortgage is 25% or more of household income. Renters are overpaying when rent and utilities are 30% or more of household income. According to the ACCRA Cost of Living Index, fourth quarter 2007, the average cost for a 2-bedroom, unfurnished 950 sq. ft. apartment rental, excluding all utilities except water in the Reno/Sparks area was $705 per month.
According to the US Census Bureau, American Community Survey (Washoe County Population and Housing Narrative profile), the median monthly housing costs for mortgaged owners was $1,837 in 2007 and $1,964 in 2008, non-mortgaged owners $489 in 2007 and $488 in 2008, and renters $873 in 2007 and $920 in 2008. In 2008, 49% of owners with mortgages, 17% of owners without mortgages, and 38% of renters in Washoe County spend 30% or more of household income on housing.
Housing Opportunity Index - updated 6/21/10
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 (estimates published by HUD) 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. Home prices started dropping in the Reno-Sparks MSA in 2008, coinciding with the the debt-fueled housing and construction downturn. The good news is the increasing share of homes sold in the area considered affordable for median income. This is also good news for employers considering relocation to northern Nevada, since they factor housing costs into their economic decision-making.
