Cohousing-L Mailing List: Median Income & Affordable Housing

[Sharon Villines (sharon]

In the various discussions we have had on affordable housing and "average"
income, the question is "What is it?" And "What is 'poor'?"

On CNN a few weeks ago the "median" income was reported as $42,000 for a
"family" of four. On the theory that one can afford a house that is
two-three times one's income, this would make an $80,000-120,000 house
theoretically within reach of those with a median income.

"Median" means the income that is most common, rather than the "average"
which can be skewed by a cluster of very high or very low incomes. The
median on a bell curve would be the peak of the curve.

"Affordable" housing is a legislative definition that varies from place to
place and is usually stated in terms of a percentage based on the average
price of homes in an area -- 80% of the average home price in a county for
example. Thus "affordable" in a high residential real estate cost area could
be a much higher number than in a low cost area.

If we assume that a "family" of four needs at least two bedrooms and would
be most comfortable with three, cohousing as it is being built would not be
within reach of probably two-thirds of the American population.

Sharon
-- 
Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org

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