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Last revised July 24, 2014 <br />Rising housing cost burden <br />Housing cost burden is an indicator of housing costs as a percentage of household income. <br />Households that spend 30% or more of their household income on housing costs are considered <br />"housing cost -burdened." Households paying more than 50% of their household income on housing are <br />considered to be facing "severe housing cost burden." Since 1980, housing costs have increased faster <br />than incomes for both owners and renters in the Twin Cities region. As a result, rates of housing cost <br />burden have increased across the region, particularly between 2000 and the 2008-2012 period: <br />• The number of households experiencing severe housing cost burden doubled between 2000 <br />and 2008-2012. <br />• The number of households experiencing any housing cost burden grew by 75% over the same <br />time period. <br />• By the most recent data period, over one-third of households in our region were paying at least <br />30% of their income for housing, and one in seven were paying at least 50% of their income for <br />housing. <br />This includes 119,000 metro households earning 50% of area median income or less who are <br />paying more than 50% of their income on housing.4 <br />• Households of color experience severe housing cost burden at nearly twice the rate of white, <br />non -Latino households.5 <br />Rising housing cost burden <br />1P <br />141,521 <br />2000 <br />155,357 <br />226,548 <br />2008-12 <br />Severe cost burden <br />(paying more than 50% <br />of income on housing) <br />■ Moderate cost burden <br />(paying 30 to 49% of <br />income on housing) <br />4 U.S. Department of Housing and Urban Development, Comprehensive Housing Affordability Strategy data <br />(2007-2011). <br />2008-2012 American Community Survey Public Use Microdata Sample data. <br />2040 HOUSING POLICY PLAN I METROPOLITAN COUNCIL <br />DRAFT RELEASED FOR PUBLIC COMMENT Part I: Introduction I Page 6 <br />