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housing costs have increased faster than incomes for both owners and renters in the Twin <br />Cities region.6 As a result, rates of housing cost burden have increased across the region,' <br />particularly between 2000and the 2009-2013period: <br />* The number ofhouseholds <br />experiencing severe housing cost <br />burden doubled between 2000and <br />2009-2013. <br />* The number ofhouseholds <br />experiencing any housing cost <br />burden grew by08Y6over the <br />same time period. <br />* Bythe most recent data period, <br />nearly one-third 0fhouseholds in <br />our region were paying at least <br />30Y60ftheir income for housing, and almost one inseven was paying 8t|e8at50Y60f <br />their income for housing. This includes 126,000 metro households earning 50% of Area <br />Median Income orless who are severely cost -burdened.' <br />* Households of color experience severe housing cost burden at twice the rate, and Black <br />households at nearly 2.5 times the rate, of white, non -Latino households? <br />Fii <br />11�1'1 <br />ure 8: Rising Housing Cost Burden <br />(p,qiing mare thoin 50% <br />Moderate cost burden <br />(paying 30% to 49% of <br />income on housing) <br />Source, VS, Census Bureau, Decennial Census and <br />American Community Survey <br />HouB�ingCost Bumden E.,<a0Np�le <br />The3O96ru|ecJthumhthatdeenriheehoueingae^a8onJoWe^vvhenahoueehWdpayanomurethon <br />30% of incorne on housing is pertinent across the full array of households, But it neglects to account <br />for the remaining differences in income available for other life needs, as illustrated below. <br />� HOUSEHOLD UaCOME) <br />�IFamily of four <br />Monthly gross income: $3,500 <br />% of income (housing costs)� ,050 <br />Income for other life expenses (transportation, <br />food, clothing, child care, insurance, etc.) <br />$2,450��'��������������������������� <br />HOUSEHOLD B (HIGH INCOM <br />Family of four <br />' ` <br />Mvm����m�m���m �t��mm <br />` <br />' <br />30% of costm!;4,5m � <br />'Income for other life expenses pramspwrtammm <br />food, clothing, child care, insurance, etc.) <br />$10,500��������������������������� <br />Presuming both households eunneed in locating a unit at or hek,vv the 3096 rule of thumb, we can <br />reasonably say they are both a#oxjoh|y house., Presuming their spending on other life essentials <br />is on par —let's say other life necessities cost both households an average of $1,800 per rnorith—it <br />henomeeclear that not only does Household B enjoy much more discretionary income ($8,250 to <br />Household A'a$bSO), itCould theoretically spend an additiuna|$7,5OO per month on housing alone <br />arid still have the sarne arnount of money left over as Household A for college funds, retirement <br />savings, uranoccasional vacation, <br />HOUSING POLICY PLAN <br />ONE� Hgwsinq for mGrowing, 7hri*nggeqion <br />