A DECADE OF FLAT WAGES: The Key Barrier to Shared Prosperity and a Rising Middle Class 2013 Briefing Paper by Economic Policy Institute (EPI)

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2 A DECADE OF FLAT WAGES: The Key Barrier to Shared Prosperity and a Rising Middle Class 2013 Briefing Paper by Economic Policy Institute (EPI) According to every major data source, the vast majority of U.S. workers, including white-collar and blue-collar workers and those with and without a college degree, have endured more than a decade of wage stagnation. During the Great Recession and its aftermath (i.e., between 2007 and 2012), wages fell for the entire bottom 70 percent of the wage distribution. For virtually the entire period since 1979, wage growth for most workers has been weak. The median worker saw an increase of just 5.0 percent between 1979 and 2012, despite productivity growth of 74.5 percent. 2

3 A DECADE OF FLAT WAGES: The Key Barrier to Shared Prosperity and a Rising Middle Class 2013 Briefing Paper by Economic Policy Institute (EPI) 3

4 Key Findings: The $268,500 median sale price is affordable to households earning 208 percent and above the County s median household income (20 percent of Broward County s households) The average monthly rent for a two-bedroom apartment in Broward County is $1,369 According to Year ACS estimates, 49.7 percent of all households in Broward County (330,624 households) are cost-burdened (pay in excess of 30 percent of their incomes on housing costs) Substantial affordability gaps exist for Broward County renter households earning 80% or less than the median household income. 4

5 Key Findings: The study found growing affordability gaps based on the median sale prices of existing and new single-family homes in Broward County The study found growing and substantial affordability gaps for Very Low and Low income renter households and Moderate income renter households earning less than 100 of the median household income Based on current and projected population and employment estimates, Broward County s existing and future housing demand will continue to be substantially weighted towards renter households in the Very Low to Moderate household income categories. 5

6 BROWARD COUNTY AFFORDABILITY GAPS Single -Family Homes in Largest Municipalities,

7 BROWARD COUNTY AFFORDABILITY GAPS 2011 vs. August 2013 Single-Family Home Sales City 2011 Gap August 2013 Gap August 2013 Sales Price Coral Springs $4,000 $129,000 $325,000 Davie $15,000 $174,000 $359,000 Deerfield Beach $80,000 $144,000 $245,000 Fort Lauderdale $49,000 $155,000 $285,000 Hollywood $91,000 $68,000 $192,000 Lauderhill $53,000 $48,000 $145,000 Miramar $27,000 $81,000 $265,000 Pembroke Pines $2,000 $122,000 $305,000 Pompano Beach $55,000 $51,000 $159,000 Plantation $54,000 $154,000 $315,000 Sunrise $3,000 $32,000 $183,000 Weston $25,000 $249,000 $480,000 Source: Greater Fort Lauderdale Realtors 7

8 SHARE OF WORKING HOUSEHOLDS WITH SEVERE HOUSING COST BURDEN BY STATE less Than 15% 15% to less Than 20% 20% to Less Than 25% "Shadrng is based on numbers rounded to one decimal place. See Appendlll A for more defajis. TABLE 2. Metro Areas in California, Florida, and New York Have the Greatest Affordability Challenges Metro Areas with the Highest and l owest Percentages of Worl<ing Households with a Severe Housing Cost Burden, ~ New York 35% Oklahoma City 16% Los Angeles 38% Minneapolis San Diego 32% Kansas Crty 16% Orlando 32% Buffalo 16% Source: Housing Landscape 2014: Center for Housing Policy 8

9 2012 COST BURDENS Moderate-Income Households by Metro Area 9 Source: Losing Ground, The Struggle of Moderate-Income Households to Afford the Rising Costs of Housing and Transportation. Center for Housing Policy

10 2011/2013 FLORIDA AFFORDABLE HOUSING DEMOGRAPHIC Analysis by County Affordable Rental Unit Demand Broward County: 60% of Area Median Income Income Qualified Renter Households 55,388 units 57,108 units Supply 9,680 units 12,102 units Remaining Potential Demand 45,708 units 45,006 units 1 60% Area Median Income is the maximum income limit for Florida Housing Finance Corporation 9% Tax Credit projects. Source: Meridian Appraisal Group 10

11 TOTAL ACTIVE RENTAL UNITS FINANCED BY FLORIDA HOUSING SINCE 1982 Orange 24,481 Hillsborough 16,705 This map is shaded to display a by-county count of all the currently active rental units that have received an allocation of resources through Florida Housing s rental programs since These 175,125 units currently provide affordable housing or are in the construction pipeline. A majority of these units serve households earning 60% of area median income (AMI) or less. Miami -Dade 29, Broward 12,267 Source: Florida Housing Finance Company, 2012 Annual Report

12 FEDERAL/STATE AFFORDABLE HOUSING GRANTS Countywide Includes the 13 Entitlement Cities Plus Broward County CDBG Grant Countywide County s share 2006 $14.4M $4.4M 2013 $10.3M $2.4M DECREASE (-30%) HOME Grant Countywide County s share 2006 $6.1M $4.4M 2013 $3.3M $2.5M DECREASE (-46%) SHIP Grants Countywide County s share 2006 $14.5M $4M 2013 $685K $146K DECREASE (-95%) Total Countywide County s share Entitlement Cities 2006 $35M $13.2M $21.8M 2013 $14.3M $5M $9.3M DECREASE (-60%) 12

13 SUMMARY Flat Wages Increasing Home and Rental Prices Decreasing Funding Resources 13