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	Dec. 18, 2002 2002 Housing Affordability Bulletin looks at impact of low interest rates and high rental vacancy King County Executive Ron Sims today released the 2002 Housing Affordability Bulletin that cites the lower interest rates of the past year as the main reason that sales of homes have remained accessible to median income families. With a six percent interest rate, a household making the median income could afford a home costing about $239,000. Last year those making the median income could afford a home costing $202,000. Average rents for King County differ dramatically from one region to the next, ranging from $514 for a studio in Auburn to nearly $2,800 for a typical three bedroom apartment in downtown Seattle. The report is produced by King County's Office of Management and Budget. "In a time of economic downturn, maintaining a stock of housing that is affordable to our workforce is a greater challenge now more than ever," said Executive Sims. "While many indicators point to the continuing health of the housing market, buying a home is still out of reach for nearly 40 percent of households here in King County. "Among the working poor, those making $25,000 or less, even the average rent for a one-bedroom or studio apartment is more than they can afford," Sims added. "In light of this need, we applaud the creative efforts many cities are employing to encourage and support the building of affordable housing." Highlights of this year's bulletin are as follows: Buying a Home The median price of a single family home in the first half of 2002 was $280,000, up six percent from last year, while the median price of a condominium was $180,000, about three percent higher than last year. The median income for King County rose about 6.5 percent during the same period. With interest rates lower than they have been since the 1960s, more people may be able to enter the housing market than during the last several years. In 2002, a household earning 80 percent of median income could afford a home priced at $167,000, compared to $155,000 in 2001. Last year only 6.5 percent of single family homes, and 41 percent of condos were affordable at that income level, while this year around eight percent of single family homes, and 45 percent of condos, were affordable to those households. The purchase of a home is extremely difficult for any household earning under 80 percent of median income, which was around $45,700 in 2002. The size of a down payment is an obstacle for many working households. Insecurity in employment for one or more household members may also contribute to difficulty in purchasing a home. According to the 2000 census, well over half of all low and moderate income homeowners were paying more than they could afford for housing costs. In the previous census, the proportion of those households overpaying for housing was closer to 40 percent. The Rental Market Average rent for all types of apartment rentals, at $866, was lower than the 2001 average of $880. Vacancy rates climbed dramatically from about 4.9 percent in 2001 to 7.4 percent in 2002. As supply begins to exceed demand, rents are likely to continue to decline, or at least stabilize. For those who remain fully employed, this means greater affordability. However, renters under 40 - 50 percent of median income still find it very difficult to find affordable places to live. About 40,000 of the poorest households cannot find market rate housing they can afford. The 2000 census indicated that about two-thirds of all low and moderate income renter households were paying more than they could afford for housing costs, leaving them without funds for other essential needs. 2002 Housing Survey and Countywide Action The 2002 Housing Survey, conducted by the King County Housing and Community Development Program, asked the 40 jurisdictions of King County to report on actions they are taking to improve housing affordability in their area. The survey was a follow-up to a similar survey last year. About $32 million in local, state, and federal funds have been allocated to housing needs by Seattle, the suburban cites, and King County. The cities and King County are implementing a number of programs and policies that make it easier and more attractive for developers to build affordable housing. The new approaches being implemented are: allowing five-story buildings to be built as wood-frame construction, instead of steel construction; encouraging the development of accessory dwelling units (ADUs); reducing or waiving parking requirements and/or impact and processing fees for projects with affordable housing; allowing density bonuses, or clustering of units; working to create cottage housing and transit-oriented developments as affordable housing choices; expediting permit and design review processes; and rehabilitating and preserving existing affordable housing. Geographic Distribution of Affordable Housing Just 14 out of the 40 jurisdictions in King County have sufficient affordable housing stock for those earning from 50 - 80 percent of median income. Only 10 of King County's cities have enough affordable housing for those below 50 percent of median income. With the exception of Seattle and Skykomish all the cities with sufficient affordable housing are in South King County. An equitable distribution of affordable housing in King County is a countywide goal that is still far from being realized. The lack of affordable housing in certain regions of King County limits the vicinity and school district choices of families, and contributes to clogged roads and long travel times for many workers. This year's housing bulletin also features articles on Katherine's House, a new transitional facility for women leaving the Regional Justice Center in Kent, housing affordability in relationship to school districts, the 2002 annual street count of the homeless, as well as maps illustrating the geographic distribution of affordable housing. See the 2002 Affordable Housing Bulletin on-line. To request a hard copy of the bulletin, please contact Rose Curran, at 206-205-0715, or by e-mail, at rose.curran@metrokc.gov. 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