Every Family Deserves A Safe, Clean, Stable Place To Live
The stress that parents experience due to living in poor conditions can translate into emotional and behavioral problems in their children.
Did You Know That …
Poor housing is associated with depression, anxiety and aggression from elementary school through young adulthood.
Rentals are more likely to have asthma triggers and children in rentals are more likely to develop asthma.
Living in poor quality housing and disadvantaged neighborhoods is associated with lower kindergarten readiness.
Children living in crowded households are less likely to graduate from high school.
Children’s housing stability can shape their future economic well-being.
What makes housing “affordable”?
Housing is considered “affordable” if a household spends no more than 30% of their income to live there.
According to the federal government, housing is affordable when rent or mortgage payments (principal, interest, taxes, and insurance) plus utilities are no more than 30% of the occupant’s monthly income.
A Closer Look at Affordability
To better explain how home prices relate to household income and savings, here are some examples of funding required to purchase a home.
Note: these estimates will change with changes in the interest rate.
Home Prices vs Household Income
Median Household Incomes
What is affordable for households in Underhill may be out of the price range for other Vermonters based on median household income data. For example, on average an Underhill resident could afford a home that is $140,000 more than most people in Vermont could afford.
Homeownership Costs
Even for families who live in Underhill and surrounding towns, homeownership can be a strain to maintain. Some families are spending more than 50% of their income on housing expenses, termed “severely cost-burdened”. Historically, these households are at high risk for losing their homes.
Homeowners Spending More Than 50% of Income on Housing
Housing shortage
There have been several decades with a low rate of home production. That combined with slow wage growth is likely to keep supply low and prices elevated beyond what the average Vermont household can afford. Fewer homes available increases competition among buyers, driving up prices.
Vermont’s seasonal homes account for about 17% of the state’s total housing stock. Furthermore, the majority of housing vacant and available (75%) are seasonal homes (Census Bureau data). So, while it may seem like there is housing available for sale or rent, it isn’t full time, permanent housing.
Seasonal Homes Contribute To Shortage
Current Home Prices
Vermont’s high housing prices are driven in large part by a shortage of homes available to buyers. During the summer of 2021, the for-sale home inventory was roughly 47% lower than during the same period in 2019.
Home prices had been increasing before the pandemic, and the trend has continued. Prices rose approximately 9% from 2019-2020 and another 10.2% from 2020 to 2021.
Comparison Of Home Prices
A Pathway to Affordable Homeownership
Partnership with Green Mountain Habitat for Humanity will keep costs to Harvest Crossing homeowners within the 30% threshold of affordability. Habitat has a solid history of creating well built, energy efficient, perpetually affordable homes in communities across Vermont, the nation and internationally.
Habitat Home dedication in Chittenden County, July 2021