FOX CITIES PROJECT PROMISE POVERTY COALITION

Fox Cities Housing and Wages Facts

Click here for background on poverty in the Fox Cities

Housing Affordability

The lack of affordable housing is a crucial problem facing the Fox Cities Area. Though the federal government defines affordable housing as costing no more than 30% of a family's income, many working families are forced to pay far more, resulting in unstable housing situations and in a pending financial crisis.[1]

Families with annual incomes at 30% or lower of the median income cannot afford the monthly rent of apartments in this area. Some fall as much as $11, 070 short of the yearly income needed.

According to the Census Bureau's 2000 Supplementary Survey, 23.9% of renter households (more than 4,466 households) in the Appleton-Neenah-Oshkosh MSA were paying more than 30% of their income for rent. Most of these households' incomes were below $25,000.[2]

Assuming a family spends no more than 30% of their income on rent, the family needs to earn at least $10.23 per hour (or $21, 278 annually) to afford a two bedroom apartment.[3] This hourly rate is nearly twice that of minimum wage ($5.65 per hour).

Ownership housing with a purchase price of about $64,226 or less is considered affordable for a household at 30% of the MSA median income. Only about 4% of home sales from June 2000 through May 2001 were at or below the $60,000 price range. The median home sales price increased by 27% from 1996 to 2001.

The shortage of affordable housing threatens about 24% of renters in the Appleton-Neenah-Oshkosh area. In 2006, there are 19,609 renter households in the Fox Cities.

Housing Need

In recent years, the Fox Cities Area has experienced both increased population growth and a potential shortage in affordable housing and rental units.

The 2000 Census update in 2005 reported a population of 381,512 for the Appleton-Neenah-Oshkosh Metropolitan Statistical Area, and increase of 6.5% from 2000 to 2005. The area is expected to grow to a population of 434,000 by 2020. Of this population, an estimated 19,000 persons live in poverty (i.e. an income level of less than $14,348 for a family of three).

Of the 136,597 households in the MSA in 2000, 28.7% were renter-occupied units. The following chart displays the construction of rental housing units in Appleton from 1990 through 2001.

The Blueprint to Affordable Housing estimates that 375 new rental units are needed per year in the Appleton-Neenah-Oshkosh MSA to match anticipated demand. Assuming that renters paying more than 30% are in need of subsidized housing, 100 subsidized rental units per year for the next 5 years will need to be built in the MSA. Of these, an estimated 45 will need to serve family households, and 55 will be needed for nonfamily households.

A four-person family at 30% of the median income for the Appleton-Neenah-Oshkosh MSA earns $18,550 yearly. Paying no more than 30% of their income on rent, this family can afford to pay at most $464 per month for rent. The family would fall short of fair market rents, at $536 for a two-bedroom apartment and $674 for a three-bedroom apartment.

Because of the large gap between low-income wages and market rents, more housing will need to be heavily subsidized in the coming years to serve low-income families. New subsidized units can be developed with (1) new construction of heavily subsidized affordable housing units or (2) expansion of programs like the Section 8 program which provide subsidies for market rate apartments in our community.

Wages and Housing - Economic Development

From both the individual and the community perspectives, the link between working wages and housing costs is critical. In order for an individual or family to afford adequate housing, their income must be sufficient and steady. And in order for a community to have a ready and available work force, it must offer affordable housing to its workforce.

Even full-time professional workers who are vital to their local community earn less than the income required for affordable housing. In the Appleton-Neenah-Oshkosh Metropolitan Statistical Area (MSA), many workers cannot afford fair market rent.

60.7% of service occupations (over 23,700 people) in the Appleton-Neenah-Oshkosh MSA are paid less than $21,400, the income needed to afford a two-bedroom apartment. According to a report from the University of Wisconsin, the service sector is the fastest growing segment of the local economy. As workforce demands in service areas increase, employers will face a labor shortage if workers seek affordable housing elsewhere.[4]

Alternately, many workers are forced to live in unstable housing near available employment. This results in unstable employment and high turnover, which is costly for employers and difficult for the working families and their children. Studies show that workers in unstable housing have difficulty holding jobs, and their children often show poor academic performance.[5]

To achieve job stability, workers must find affordable housing near employment. In turn, employers will benefit from a more stable, productive workforce.

Poverty in Wisconsin:

• 170,000 people each month seek emergency food from a food pantry in Wisconsin
  Source: 2002 Pantry Survey, Hunger Task Force of Milwaukee, 2002
• 558,540 residents (approx. 10.5%) live below the poverty level (5,340,347 WI population)Ranked the 40th poorest state in the country (a rank of 1 indicates poorest).

• 177,672 children (approx. 14%) live below the poverty level (1,273,317 children in Wisconsin) Ranked 38th in the country for childhood poverty.
  Source: U.S. Census Bureau, American Community Survey, averaged total for 2004 and 2005
• The poverty rate in Wisconsin has increased every year since 2001 after a six year decline. Poverty has increased faster in Wisconsin during this period than in any other state.
• In Wisconsin, 25% of workers today make less than they did in 2000 adjusted for inflation. Working people are the new poor.
• The poorest 60% of the country collectively possess less than 5% of all of the country's privately held assets.
• Median wages in Wisconsin are up only 5% (68 cents) over wages of a quarter century ago, even though worker productivity increased 70% during that period. Source: COWS
• Contrary to popular belief, most people in poverty are employed. Nationwide, over half of the children in low-income families have one or both parents employed full time, year around and another 30% have at least one parent employed part time. Source: National Center for Children in Poverty

What are the causes of poverty:

Low - wage jobs

Wage stagnation or decline

Loss of manufacturing jobs

Recession

Spiraling cost of living, especially health care, housing and energy.

Low level of education or job skills

Fox Cities impact

LEAVEN provided assistance to over 6000 households (Cost to the community: $60,000 per year)

St. Joes provides assistance to 20,000 households each year.

Over 800 unique individuals spent at least one night in the Emergency Shelter of the Fox Valley in 2007 because they were homeless. Nearly 200 of these were children. (Cost to the community: $1,050,000 per year)

Harbor House sheltered and served over 350 women and children (95% of whom were low income) who were victims of violence. (Cost to the community: $350,000 per year) This does not include all their community outreach and programming.

The Fox Cities Community Health Center provided medical services to over 6000 un- and underinsured people who would otherwise have not been able to access healthcare.(Cost to the community: $1,200,000 per year)

The Tri-County Dental Clinic provided over 3000 dental patients with emergency dental care services last year. (Cost to the community: $1,000,000 per year)

Vision 2020 End Child Poverty

__________________________________________________

Calumet County WisKids Count Data Snapshot