For immediate release

Press Contact:  Tom Garritano (312-386-8609)

Percent of income spent on housing by residents of
metropolitan Chicago continues to rise

According to new 2005 data, the region's renters tend to spend a higher
percentage of income on housing than homeowners do

CHICAGO, October 3, 2006 -- Today the U.S. Census Bureau issued new data that confirm housing costs continue to increase as a percentage of income for most residents of the metropolitan Chicago region.   Renters in the region's six counties spend a higher percentage of their income on housing than homeowners do, according to analysis by the Chicago Metropolitan Agency for Planning (CMAP), but the rate for homeowners is increasing faster than it is for renters.

In 2005, an average of 42.5 percent of DuPage County renters spent more than 30 percent of their income on housing -- the region's lowest renters' total -- compared to a high of 49.4 percent of renters in Cook County.  By comparison, an average of 34 percent of DuPage homeowners and 37.9 percent of Cook homeowners spent more than 30 percent of their income on housing in 2005.  

A similar pattern exists in other counties, where a consistently higher percentage of renters versus homeowners pay more than 30 percent of income for housing in Kane (46.6 percent for renters vs. 36.3 percent for homeowners), Lake (45.9 percent vs. 37.2 percent), McHenry (44.9 percent vs. 32.8 percent), and Will (48.8 percent vs. 34.8 percent). 

 

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The data are from the U.S. Census Bureau's American Community Survey (ACS), which annually surveys three million households from every county in the nation.   The ACS collects and produces population and housing information every year instead of every ten years.

"We see a continued upward trend for housing costs as a percentage of income," said CMAP executive director Randy Blankenhorn.  "While renters consistently pay a higher percentage than homeowners, the percentage paid by homeowners has increased dramatically in recent years.   Increased housing costs mean residents in general have less to spend on discretionary items and, in some cases, even on necessities.  This has widespread implications for the region's economy and quality of life."

Since 2003, the percentage of homeowners spending more than 30 percent of income on housing has increased in Cook (up 5.8 percent), DuPage (up 9.4 percent), Kane (up 5.5 percent), Lake (up 7.8 percent), McHenry (up 6.6 percent), and Will (up 5.1 percent).   In comparison, the percentage of renters spending more than 30 percent of income on housing increased from 2003 to 2005 by 3.2 percent or less in DuPage, Kane, Lake, and McHenry, while Cook increased 6.1 percent and Will increased 7.7 percent.   

"The data suggest that families are likely making regular trade-offs in their household budgets between housing, transportation, health care and other regular expenses," said Kermit Wies, CMAP deputy executive director for research and analysis.   "This conclusion is consistent with similar research conducted by our community planning partners, who advocate for balanced regional solutions to the growth and development pressures that face individual communities.  When residents are unable to live near where they work, it puts stress on infrastructure, communities and businesses."

Balanced housing for a diverse workforce is among the issues being addressed by CMAP, a new agency created by merging the Chicago Area Transportation Study (CATS) and the Northeastern Illinois Planning Commission (NIPC).  In September, the CMAP Board issued a strategic report to Governor Blagojevich and the General Assembly.  Available at http://www.chicagoareaplanning.org/docs/, the report describes the agency's vision, mission, and governance structure. 

CMAP is part of the Illinois State Data Center Cooperative, a partnership between the State of Illinois and the U.S. Census Bureau to make census information and data available to the public through a network of organizations. 

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Web Resources
U.S. Census American Community Survey:  http://www.census.gov/acs/
CMAP summary of ACS data:   http://www.chicagoareaplanning.org/data/acs/2005/