2030 Comprehensive Land Use Plan - Pitt County Government

HousingHome prices in Pitt County suffered from the severe economic downturn that occurredbetween 2007 to 2010. For several years, reduced interest rates, followed by easy creditconditions, sub-prime lending, increased debt burden, incorrect pricing of risk, and a liquidityshortfall in the United States banking system had fueled a housing construction boom andcreated an unsustainable housing “bubble”. Loans of various types (e.g., mortgage, creditcard, and auto) were easy to obtain and consumers assumed an unprecedented debt load.Between 2007-2008, the decline of housing prices and the increasing rate of defaults andforeclosures caused the bubble to burst leading to a worldwide economic crisis.As housing prices declined, major global financial institutions that had borrowed and investedheavily in subprime mortgage backed securities reported significant losses. Falling prices alsoresulted in homes worth less than the mortgage loan, providing a financial incentive to enterforeclosure. The ensuing foreclosure epidemic drained wealth from consumers and eroded thefinancial strength of banking institutions. Defaults and losses on other loan types alsoincreased significantly as the crisis expanded from the housing market to other parts of theeconomy.Pitt County’s housing market has been affected by the economic crisis as well. Housing saleshave slowed considerably since 2007, however average home prices have remained relativelystable with no greater than a 5% change since the peak of the housing bubble. In 2010, theaverage price of a house sold in Pitt County was $152,738, based on the sale of 1,539 singlefamily homes, condos, townhomes, and manufactured homes sold through the real estatemultiple listing service. The average price of a residential lot was approximately $48,000.Foreclosure rates in Pitt County remain well below the national average. In May 2011, one inevery 1,590 homes in Pitt County received a foreclosure filing compared to one in every 605homes in the United States.Affordable HousingAccording to the 2009 American Community Survey (ACS), the median value of owneroccupiedhousing units in Pitt County was $133,700 - 28% lower than the national averageof $185,200. Median gross rental costs in Pitt County were $660 - 6% lower than thenational average of $702. By comparison, median household incomes were also 30% lowerin Pitt County than in the nation - $35,509 versus $50,221. Housing stock is split almostevenly between owner- and renter-occupied units, however housing affordability stillprevents many residents from obtaining safe, affordable housing.The 2009 ACS also found that over 37% of all households in Pitt County with annualincomes below $50,000 paid more than 30 percent of their income for housing. Over 20%of all households in the County pay more than 50 percent of their income on housing,leaving little money for basic necessities such as food, health care, or transportation. Manyof these households will require assistance in order to afford decent housing. Affordablehousing provides stability for families, improves opportunities for education and careeradvancement, and reduces the risk of homelessness for households that are dependent onlow wages or fixed incomes.2030 Comprehensive Land Use Plan Appendix A: Inventory and AnalysisPitt County, North Carolina A-31