INCOME

Housing Alliance

Statement of Need

For years, housing costs in Morris County have risen more than household annual income and many households are struggling to make ends meet. Very low-income households and families and individuals of the ALICE (an acronym for Asset Limited, Income Constrained, Employed individuals) population are finding it increasingly difficult to find and maintain affordable housing. Housing costs are so high, even households earning more than the median annual income of $99,706¹ have trouble finding an affordable home in Morris County.

Members of every age group are affected by high housing costs, from seniors who are being forced to move away to young adults who are unable to move in – people we know, people we care about, people we need. Many men and women who perform essential services, like county and municipal workers, hospital staff, teachers' aides, and retail clerks cannot afford to live here.

What is "Affordable" Housing?

Affordable housing is defined as housing expenses – rent or mortgage, insurance, taxes, and utilities – that cost no more than 30 percent of a household's annual income. Truly affordable housing means that families and individuals are not forced to choose between housing and other basic needs, like food, clothing, and health care. In Morris County, one out of three homeowners spends more than 30 percent of their income on housing.²

Morris County Housing Reality

For Renters

• New Jersey is the fifth most expensive state in the U.S. for renters.³
• The fair market rent for a two-bedroom apartment in Morris County is $1,279⁴. In order to afford this apartment, a household would need to earn at least $51,160 per year – that's 135 hours per week at minimum wage.
• Families with children experience even higher expenses. In a household with two adults and two preschool-age children, child care expenses can total nearly $2,000 per month². In order for a family of this size to rent a home and be financially self-sufficient, the parents must make a combined $76,016 annually².

For Homeowners

• It takes an annual income of over $120,000⁵ to support the $416,700 median home price⁶ in Morris County – this is 20 percent higher than the area’s median household income.
• Foreclosure rates in Morris County have risen 75 percent in the last four years.⁷ Because homeowners are taking on large mortgages to pay for homes in our communities, nearly 200 homes every month are in pre-foreclosure in Morris County.⁷

¹Morris County Data Book, Morris County Department of Planning and Development, January 2010.
²Introducing ALICE, United Way of Morris County, 2008
³Out of Reach, National Low Income Housing Coalition, 2010
⁴Morris County Fiscal Year 2010 Fair Market Rents, HUD
⁵Paycheck to Paycheck Analysis, New Jersey Association of Realtors, 2008
⁶New Jersey Home Sales Report - First Quarter 2010, New Jersey Association of Realtors
⁷Foreclosure Trends, Morris County, NJ Real Estate Trends, RealtyTrac, 2010