Title: Workforce Housing Background Briefing
1Workforce HousingBackground Briefing
Governors Workforce Housing Taskforce
March 2, 2005
Maryland Department of Planning
2Workforce Housing Background Briefing
- Maryland Housing Sales
- Housing Affordability Index
- Affordability for Select Occupations
- Issues Possible Affect on Migration
- Maryland and rest of U.S.
3Number of Units Sold in Maryland,1995 - 2005
Source Maryland Association of Realtors from
Metropolitan Regional Information Systems, Inc.
(MRIS)
4Mortgage Interest Rates, 1995 2005
Average annual interest rates from Fannie Maes
monthly interest rate survey- composite rate for
conventional loans. Data is for Maryland through
2004, national for 2005
5Median Home Sales Price in Maryland,1995 - 2005
142 increase 102 since 2000
Source Maryland Association of Realtors from
Metropolitan Regional Information Systems, Inc.
(MRIS)
6Annual Change in Median Sales Price in Maryland,
1995/1996 2004/2005
Source Maryland Association of Realtors from
Metropolitan Regional Information Systems, Inc.
(MRIS)
7Annual Percent Change in Median Sales Price in
Maryland, 1995/1996 2004/2005
Source Maryland Association of Realtors from
Metropolitan Regional Information Systems, Inc.
(MRIS)
8Share of Single-Family Homes by Sales Price in
Maryland, 2002-2005
2005 data through June 2005
Source Maryland Department of Planning, from MD
Property View Sales File
9Residential Single Family Sales Above 300,000
(Median) 2002
By Census Tract
Source Maryland Department of Planning, Planning
Data Services
10Residential Single Family Sales Above 300,000
(Median) 2005
By Census Tract
Source Maryland Department of Planning, Planning
Data Services
11Median Sales Price for Marylands Jurisdictions,
2005
Source Maryland Association of Realtors from
Metropolitan Regional Information Systems, Inc.
(MRIS)
12Change in Median Sales Price for Maryland,
2000-2005
Source Maryland Association of Realtors from
Metropolitan Regional Information Systems, Inc.
(MRIS)
13Change in Median Household Income for Maryland,
2000-2005
2005 is preliminary
Source Maryland Department of Planning, Planning
Data Services
14Ratio of Change in Median Sales Price to Change
in Median Household Income for Maryland, 2000-2005
Source Maryland Department of Planning, Planning
Data Services
15Workforce Housing Background Briefing
- Maryland Housing Sales
- Housing Affordability Index
- Affordability for Select Occupations
- Issues Possible Affect on Migration
- Maryland and rest of U.S.
16Housing Affordability Index
- Ratio of median household income to the
qualifying income necessary to buy a median price
home - Qualifying income is the necessary income to make
monthly payments for a median priced home based
on current mortgage interest rates
17Housing Affordability Index
- Qualifying income is based on Federal National
Mortgage Association qualifying ratio of 25. - This means annual PI cannot exceed 25 percent of
median household income
18Housing Affordability Index
- Average annual mortgage interest rates are from
Fannie Maes monthly interest rate survey using
their composite rate for conventional loans. - Annual data specifically compiled for Maryland is
the effective interest rates (contract rate plus
all fees and points)
19Housing Affordability Index
- HAI for repeat home buyers assumes
- 20 percent down
- HAI for first-time home buyers assumes
- HH income is 57 of median income
- Home price is 85 of median sales price
- 5 percent down therefore mortgage rate increased
.50 for PMI
20Housing Affordability Index
- HAI 100 when the median income household has a
sufficient income to purchase a median price home - HAI 100 more than enough income
- HAI
21Housing Affordability Index - Caveats
- Are using medians to represent the market but
there is much variability - Interest rates can vary depending on credit of
buyer, also ignoring unconventional mortgages and
VA and FHA loans - Some buyers are willing/capable to put down more
than standard down payments or pay a higher
portion of their income - these results are a good gage of what is
happening over time across jurisdictions using
standard and consistent factors
22Housing Affordability Index for Repeat Home
Buyers for Maryland
Source Maryland Department of Planning, Planning
Data Services
23HAI Repeat Buyers - 2000
Source Maryland Department of Planning, Planning
Data Services
24HAI Repeat Buyers - 2005
Source Maryland Department of Planning, Planning
Data Services
25(No Transcript)
26(No Transcript)
27Pct. Change in HAI, Repeat Buyers, 2000-2005
Source Maryland Department of Planning, Planning
Data Services
28(No Transcript)
29HAI for Repeat and First-Time Home Buyers for
Maryland
Repeat
First-Time
Source Maryland Department of Planning, Planning
Data Services
30HAI First-Time Buyers - 2000
Source Maryland Department of Planning, Planning
Data Services
31HAI First-Time Buyers - 2005
Source Maryland Department of Planning, Planning
Data Services
32(No Transcript)
33(No Transcript)
34Pct. Change in HAI, FT Buyers, 2000-2005
Source Maryland Department of Planning, Planning
Data Services
35(No Transcript)
36Workforce Housing Background Briefing
- Maryland Housing Sales
- Housing Affordability Index
- Affordability for Select Occupations
- Issues Possible Affect on Migration
- Maryland and rest of U.S.
37HAI for First-Time Homebuyers bySelected
Occupation- 2005
Registered Nurse (66,800)
Source Maryland Department of Planning, Planning
Data Services
38HAI for First-Time Homebuyers bySelected
Occupation- 2005
Police/Sheriff (45,150)
Source Maryland Department of Planning, Planning
Data Services
39HAI for First-Time Homebuyers bySelected
Occupation- 2005
Middle School Teacher (44,725)
Source Maryland Department of Planning, Planning
Data Services
40HAI for First-Time Homebuyers bySelected
Occupation- 2005
Carpenter (36,075)
Source Maryland Department of Planning, Planning
Data Services
41HAI for First-Time Homebuyers bySelected
Occupation- 2005
Nursing Aid (25,150)
Source Maryland Department of Planning, Planning
Data Services
42Workforce Housing Background Briefing
- Maryland Housing Sales
- Housing Affordability Index
- Affordability for Select Occupations
- Issues Possible Affect on Migration
- Maryland and rest of U.S.
43Net Migration Between Baltimore County and
Pennsylvania, 2000 - 2004
Source Maryland Department of Planning, Planning
Data Services, from IRS County-to-County
Migration data
44Net Migration Between Carroll County and
Pennsylvania, 2000 - 2004
Source Maryland Department of Planning, Planning
Data Services, from IRS County-to-County
Migration data
45Net Migration Between Frederick County and
Pennsylvania, 2000 - 2004
Source Maryland Department of Planning, Planning
Data Services, from IRS County-to-County
Migration data
46Net Migration Between Frederick County and
Washington County, 2000 - 2004
Source Maryland Department of Planning, Planning
Data Services, from IRS County-to-County
Migration data
47Net Migration Between Montgomery County and
Frederick County, 2000 - 2004
Source Maryland Department of Planning, Planning
Data Services, from IRS County-to-County
Migration data
48Workforce Housing Background Briefing
- Maryland Housing Sales
- Housing Affordability Index
- Affordability for Select Occupations
- Issues Possible Affect on Migration
- Maryland and rest of U.S.
49Median Housing Value 2004
Maryland ranked 10th
Source U.S. Census Bureau, American Community
Survey
50Median Housing Value 2004 (cont.)
Source U.S. Census Bureau, American Community
Survey
51Median Household Income - 2004
Maryland ranked 3rd
Source U.S. Census Bureau, American Community
Survey
52Median Household Income 2004 (cont)
Source American Community Survey
53Pct of Owners Paying More Than 30 of Income for
Housing Costs - 2004
Source U.S. Census Bureau, American Community
Survey
54Pct of Owners Paying More Than 30 of Income for
Housing Costs 2004 (cont.)
Maryland ranked 33rd
55Median Price of Single-Family Homes by
State-2004 (thousands of dollars)
Maryland ranked 6th
Source FannieMae
56Median Price of Single-Family Homesby
State-2004, cont. (thousands of dollars)
Source Fannie Mae
57Change in Median Price of Single-Family Homes by
State 2000-2004 (thousands of dollars)
Maryland ranked 12th
Source FannieMae
58Change in Median Price of Single-Family Homes by
State 2000-2004 (thousands of dollars)
Source FannieMae
59Pct Change in Median Price of Single Family Homes
by State 2000-2004
Maryland ranked 17th
Source FannieMae
60Pct Change in Median Price of Single Family Homes
by State 2000-2004 (cont)
Source FannieMae
61Average Square Feet of Floor Area in New
One-Family House, Northeast U.S., 1973-2004
Change 948 sq ft (59.4)
Source U.S. Census Bureau
62Average Household Size in the U.S. 1970-2003
Change 3.11 to 2.59
Source U.S. Census Bureau
63Some Summary Points
- Affordability has declined throughout this decade
in Maryland and does vary significantly by
location within the State - Affordability is much more of an issue for
first-time home buyers - Affordability issues are most likely influencing
migration patterns
64Some Summary Points
- Maryland is a high income and high home-value
state - Its increase in median sales values this decade
is in line with the rest of the Northeast - Indications are that the proportion of income
spent on housing in Maryland is not out of line
with much of the rest of the U.S.