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Centre County Affordable Housing Needs Assessment: A Blueprint for Action -30- The County’s Housing Stock Houses on the market in Centre County are sold very quickly, which tends to escalate prices. Median housing values have been consistently higher in Centre County than in In Centre County, single family housing prices increased from a median value of $74,900 in 1990 to $114,900 in 2000 (U.S. Bureau of the Census) to about $156,000 today S. Housing and Urban Development). The current home value in as a whole was $116,520 in 2004. Housing prices in Centre County are expected to rise faster than wages because of both strong demand and low interest rates. Chart 3: Median Housing Values 1990 to 2004 Centre County & Source: Centre County, Data Center Rents have increased as well. In 1990 gross median rent was $448 in Centre County. By 2000, gross median rent was $602. Median gross rent was lower in $404 in 1990 and $531 in 2000. HUD Fair Market Rents also reflect increased rents for smaller rental units from 2000 through 2005, but larger units had reductions in Fair Market Rents in 2005. These reductions in rents for larger units were not market driven, rather they reflect a political change following the revision of Section 8 funding in 2004. 0 20000 40000 60000 80000 100000 120000 140000 160000 [PHONE REDACTED] 1995 2000 2004 Centre County ---PAGE BREAK--- Centre County Affordable Housing Needs Assessment: A Blueprint for Action -31- Table 9: HUD Fair Market Rents by Bedroom Size from 2000 to 2005 Centre County, PA FMR Year Efficiency One- Bedroom Two- Bedroom Three- Bedroom Four- Bedroom FY 2000 $415 $508 $629 $824 $882 FY 2001 $419 $513 $635 $832 $890 FY 2002 $433 $530 $656 $859 $919 FY 2003 $443 $543 $672 $880 $941 FY 2004 $446 $547 $677 $886 $947 FY 2005 $516 $575 $677 $809 $834 Source: HUD Cost burden for housing varies by tenure and income. Of all tenant households, 26.7% have cost burdens greater than 50% of their income. Only 6.7% of homeowner households have cost burdens greater than 50% of their income. However, more than one in every three homeowner households with incomes at or below 50% of the median area income have cost burdens greater than 50% of their income. The county has a 60% owner-occupancy rate, a significantly lower rate than the rate for as a whole, which is 71.3%. As discussed elsewhere, this is due to the large, transient student population which results in very low rates of homeownership in State College and Bellefonte Boroughs. Indeed homeownership rates in other parts of the County exceed those of the State as a whole. The owner-occupancy rate did not change significantly from 1990 to 2000 in Centre County or in The majority of renters moved into their unit the year the Census was taken. Homeowners were in their homes longer, with only 8% having just moved in and the median length of time in their home 10 years. Table 10: Year Household Moved by Owner or Tenant: 2000 Number Percent Owner-occupied housing units 29,673 100 Moved in 1999 to March 2000 2,428 8.2 Moved in 1995 to 1998 6,718 22.6 Moved in 1990 to 1994 5,271 17.8 Moved in 1980 to 1989 6,118 20.6 Moved in 1970 to 1979 3,915 13.2 Moved in 1969 or earlier 5,223 17.6 Median Year 1989 Source: U. S. Bureau of the Census, 2000 ---PAGE BREAK--- Centre County Affordable Housing Needs Assessment: A Blueprint for Action -32- Table 10: Year Household Moved by Owner or Tenant: 2000 (con’t) Number Percent Renter-occupied housing units 19,650 100 Moved in 1999 to March 2000 10,653 54.2 Moved in 1995 to 1998 6,233 31.7 Moved in 1990 to 1994 1,425 7.3 Moved in 1980 to 1989 842 4.3 Moved in 1970 to 1979 236 1.2 Moved in 1969 or earlier 261 1.3 Median Year 1999 Source: U. S. Bureau of the Census, 2000 The median age of housing is very similar, whether a household rents or owns its home. A large number of rental units were built between 1960 and 1979, comprising almost half of all units built during these years. More than 1 in every six owner-occupied unit was built before 1940 and one in seven rental units was built before 1940. Table 11: Tenure by the Year the Housing Unit was Built TENURE BY YEAR STRUCTURE BUILT Owner-occupied units Tenant Occupied units Number Percent Number Percent Total units 29,673 100 19,650 100 Built 1999 to March 2000 656 2.2 201 1 Built 1995 to 1998 2,111 7.1 1,464 7.5 Built 1990 to 1994 2,754 9.3 1,309 6.7 Built 1980 to 1989 5,127 17.3 2,606 13.3 Built 1970 to 1979 5,051 17 4,705 23.9 Built 1960 to 1969 3,532 11.9 3,517 17.9 Built 1950 to 1959 3,561 12 1,790 9.1 Built 1940 to 1949 1,361 4.6 1,157 5.9 Built 1939 or earlier 5,520 18.6 2,901 14.8 Median Year 1972 1971 Source: U.S. bureau of the Census, 2000 There were 3,838 vacant housing units out of 53,161 total housing units in Centre County at the time of the 2000 Census. Forty percent of these (1,536) are seasonal homes, which means that there was a vacancy rate of less than 2% for year-round owner-occupied units and about a 4% vacancy rate for all rental units. Of the year-round housing units that were found vacant and not yet rented or sold, 68% of these were rental units. These are extremely low vacancy rates, which also contributes to the rising cost of housing. ---PAGE BREAK--- Centre County Affordable Housing Needs Assessment: A Blueprint for Action -33- The vast majority of homeowners, 83%, own single family detached homes in Centre County and only an additional 2.5% own houses attached to the neighboring house. Nearly 12% of homeowners own a mobile home, which is a significant source of affordable housing. Tenants are spread across many different types of housing, from single family homes to large buildings with more than 50 apartments and 4% renting mobile homes. Table 12: Type of Housing by Owner-occupied or Renter-occupied Type of housing Owner occupied: Renter occupied: 1, detached 21213 83.1% 2288 13.3% 1, attached 629 2.5% 1295 7.5% 2 221 0.9% 1544 9.0% 3 or 4 54 0.2% 1428 8.3% 5 to 9 56 0.2% 2062 12.0% 10 to 19 80 0.3% 2373 13.8% 20 to 49 64 0.3% 2507 14.6% 50 or more 21 0.1% 2699 15.7% Mobile home or trailer 3038 11.9% 686 4.0% Other 153 0.6% 272 1.6% Total owner-occupied 25529 100.0% 17154 100.0% Source: U.S. Bureau of the Census, 2000 Centre County had few units without full plumbing facilities. 139 owner-occupied units and 109 rental units lacked full plumbing facilities in 2000, about the same as in the overall state. A number of these units may be those occupied by Amish households. Despite this, sewage disposal remains a concern for Centre County, both because of the limitations of existing public systems and the geographic composition of the county. In 1990, 67.7% of housing units in Centre County had access to public sewer systems compared to 74% for the state. The 2000 Census did not release rates of access to public sewer systems for the continental United States. Summary of Centre County Housing Stock Home values in Centre County are rising at a faster rate than those in the State as a whole, especially in recent years. Rents also increased faster than in the State from 1990 to 2000. Centre County has a lower owner-occupancy rate than in the state as a whole, largely because of the large student population in State College. The overall vacancy rate appears high because of the number of vacant seasonal homes, however, an adjusted vacancy rate excluding seasonal homes shows a tight housing market with less than 2% of year-round units for owner occupants vacant and about 4% of all rental units vacant in 2000. The majority of owner-occupied units are single family detached homes, with very few row homes or multi-family configurations, as would be found in townhouse developments or condominiums.