Location, location, location is a familiar phrase when thinking of real estate, but it is also an important factor in determining the affordability of housing. The Center for Neighborhood Technology (CNT) has added the cost of transportation to the cost of housing to find what they consider the “true” cost of housing. In their Housing and Transportation Affordability Index, CNT has combined the average cost of housing in an area with the average cost of transportation in that same area to provide a more complete look at affordability. Below are two maps that show how the cost of transportation affects affordability in Tulsa County. Keep in mind that affordable housing is generally considered housing that costs no more than 30% of household income. When CNT added transportation to the equation, they calculated that affordable transportation should be no more than 15% of household income. So, housing and transportation costs should be no more than 45% of household income.
Figure One: Housing Cost as a Percentage of Household Income in the Tulsa Area
In Figure One, the blue color represents 30% or more of household income and yellow represents less than 30% of household income.
Figure Two: Housing and Transportation Costs as a Percentage of Household Income in the Tulsa Area
In Figure Two, the blue color represents 45% or more of household income and the yellow represents less than 45% of household income.
In another attempt to increase comments, what do you think the implications of this type of data might be? Will it affect how you think of affordable housing?
For more information on the Center for Neighborhood Technology, click here.
For more information on CNT’s Housing and Transportation Affordability Index, click here.
To look at the images above in more detail, click here.