Defining ‘Affordable’
The term ‘affordable housing’ gets thrown around a lot these days. There is a specific definition, but ask the average citizen what ‘affordable’ means, and you will get answers all over the economic scale. Basically, affordability is defined by housing that costs no more than 30% of a household’s income. Above this level, a household is considered ‘housing cost burdened’.
So, affordability will be different for each household. In North Fulton, the average household income is $100,482 per year. That means that the average household should be able to pay $2512 a month for rent or a mortgage payment. Of course, ‘average’ doesn’t tell the whole story.
Of course, averages are just that - not indicative of each family situation.
Consider a registered nurse. According to Indeed.com, the average registered nurse in North Fulton could expect to make approximately $81k with overtime, in a year. In theory, they can spend up to $2033 a month for housing. At 4% interest, with a 10% down payment and good credit, a $300,000 mortgage is possible. Assuming, that is, they can find a house priced below $334,000.
A search of FMLS in October shows 27 active North Fulton listings in this price range. Five are houses, all built before 1998. The rest townhomes. None built after 2006. All but two are under 2000 square feet. Many are at this price because they require significant repair, further raising the costs.
Now consider a family of 4, with a parent working as a police officer. In North Fulton, an experienced officer might earn in the $56k range. To be considered affordable, they should be spending no more than $1400 a month for housing. If the second parent enters the workforce, as most have to do, child care costs come into the equation. Either way, house purchase is virtually impossible in North Fulton. And, rentals with 2 bedrooms are more expensive and in short supply.
A recent housing study commissioned by the City of Alpharetta shows almost 2 in 5 renters (38%) are cost-burdened, as are almost 1 in 5 (18%) of homeowners. As home prices have risen dramatically in recent years, many of us live in a home we could no longer afford to buy.
What about other essential workers? Much has been made about raising the minimum wage, which now sits at $7.25/hr. Often discussed is a $15/hr rate, and some local businesses have already made this move. Since North Fulton’s foodie culture has done so much to draw economic activity and enhance our lifestyle, let’s consider the food service workers we depend on. At $15 an hour, a full time worker could afford to spend up to $750 a month on housing. At this time, 2 apartment complexes exist with any units at this price in North Fulton, both built before 1973. However, according to Apartments.com none are available. In fact, listing searches start at $900.
What happens when our workers can’t live here? High costs in our area make it hard for the schools to recruit teachers and staff, or cities to hire first responders. In the fall, Fulton County Schools reported 90 job openings, 70 of which are in North Fulton. Medical and skilled nursing facilities are struggling to hire and retain caregivers and service staff. Restaurants are reducing open hours, raising prices, or closing altogether.
Is this a new problem? Not for North Fulton. For years, we have depended on our neighbors a bit farther out to provide affordable housing. Woodstock, Cumming, Norcross, etc. were options for proximity to our jobs. But over time, housing costs have risen much faster than wages and new residents have moved into the metro area in large numbers. These and several other factors have driven housing costs up throughout our region. Now we are expecting workers to make their way to us from much farther away, without transit. Often, they will pass numerous other job options between us and where they can afford to live.
Some are addressing the problem by packing more people into single unit homes, in an attempt to reduce their housing burden. Others are paying much more than 30% of their income to housing, making heartbreaking tradeoffs between rent, food, medical care and other critical needs.
Each North Fulton city develops a Comprehensive Plan every 5 years. Most include data that demonstrates a need for more housing options, to attract and keep a workforce and to mitigate traffic congestion. For more information, each plan is publicly available online, and includes a Housing Work Program section with action steps the city plans to address the challenges.
Alpharetta (pgs 34, 40, 69)
John’s Creek (pg 40,
Milton (pgs 55, 212)
Roswell (pgs 36, 185)
Sandy Springs (pg 220)