2010-2014 Consolidated Plan - City of Champaign

Table 2-1: Housing Opportunity Index (HOI) and Affordability Ranking Metro Areas in the Midwest: 2009RegionHOI# Median Median National RegionalShare of homes Family Sale Affordability (Midwest)affordable for Income Price Ranking Affordabilitymedian income (000’s) (000’s)RankingIllinois Cities 4 th quarter 2009 2009 4 th quarter 4 th quarter 2009 4 th quarter20092009Quad Cities IA-IL 92.5 61.6 93 17 17Rockford 90.4 63.7 109 30 26Springfield 89.1 66 111 34 28Peoria 88.2 65.8 112 37 29St. Louis MO-IL 84.5 67.9 134 60 34Champaign-83.9 65.2 135 70 35UrbanaChicago-69.6 74.6 210 169 39Naperville-JolietSource: National Association of Homebuilders http://www.nahb.com/fileUpload_details.aspx?contentID=535 Accessed 4/5/10Housing prices, median family incomes and mortgage interest rates are 3 factors that influence housingaffordability. Table 2-2 outlines the median sales price of existing single-family homes and the medianfamily incomes for the Champaign-Urbana MSA, as well as the 30-year fixed mortgage rates for thenation. During this time period, existing single-family home prices increased by 31.3%, median familyincomes have increased by 17.9%, and mortgage interest rates have decreased by 16.1%. The averagesales value per square foot for residential properties in 2002 was $76.69, an increase of 26.3% from the1997 value of $60.71. The values per square foot ranged from a low of $38.42 to a high of $91.44.Table 2-2: Housing Affordability Factors1998 1999 2000 2001 2002 2003Median Sales Price $90,100 $90,600 $98,800 $100,400 $107,100 $118,300Median Family Income $49,800 $52,500 $54,600 $56,300 $59,600 $58,700Mortgage Interest Rates 6.94 7.43 8.06 6.94 6.54 5.82Source: Champaign County Statistical Abstract 2004Turnover RateThe citywide turnover rate increased from 3.8% in 1997, 4.3% in 2002, and 5.1% in 2006. Theincreased turnover rate can most likely be attributed to dropping interest rates and the large amount ofnew housing being developed in the south and southwest portions of the City.Days on MarketThe median number of days on market citywide decreased from the citywide average of 82 days onmarket in 1997 to 16 days on market in 2002, then increased to 63 days in 2006.Rental Market ConditionsThe large student population has an effect on the local housing market due to the presence of multipleincomes within each household. The higher rents afforded by these households presents a burden to thelocal low- to moderate income households seeking affordable rental units. The local rental market hascreated a need for housing assistance for persons at or below 80 percent of the Median Family Income,particularly in the following areas: small and large-related households and elderly households.14 Housing Market Analysis