A new report is shining a light on the Houston region’s affordability crisis, which may worsen with growing climate threats.
HOUSTON — Houston, we have a problem.
A new report by the Kinder Institute of Urban Research at Rice University says the fourth-largest city in the country, widely known for its affordability, is in the middle of an affordability crisis.
Growing climate threats to the region could compound the problem and make it worse.
The data is alarming. The median home price in Harris County has climbed to $325,000, but the median income only supports a house costing $195,000. That’s a $130,000 gap that is only expected to grow.
“It does affect every single member of our community,” said Caroline Cheong, Associate Director at the Center for Housing and Neighborhoods with the Kinder Institute.
For years now, Houston’s been the big city that families could afford. That’s in danger of changing.
“Yes, it is,” Cheong warned. “If households can’t afford to live here, that means we’re in danger of losing that reputation.”
The numbers aren’t good. Home prices continue to rise. Homeowners’ insurance alone spiked by 18% in the last year, in part because of natural disasters.
“That means buying a home is increasingly out of reach for a lot of households, and that’s problematic,” Cheong said.
Financial pressure is also weighing down families who rent. 15,000 renter households became cost-burdened last year, according to the study. That means they’re spending more than 30% of their monthly income on housing.
“Vulnerable people are living in vulnerable places,” Cheong said.
Adding to the housing challenge is Houston’s often extreme climate. From dangerous heat in an area where Kinder found about 25% of homes in some neighborhoods don’t have working AC, to more frequent destructive storms and hurricanes.
“For many families, it’s one storm away from really irrevocably changing their lives, we saw that with the derecho,” Cheong said.
In other words, for many families, Houston is not only becoming less affordable, but less livable.
“If these challenges aren’t addressed, we are in danger of losing population,” Cheong explained.
Something similar is happening in Los Angeles this year after their deadly wildfires.
“We need to push for changes or pay increased attention, really,” Cheong suggested. “And on the climate side, we need to encourage policymakers to get ready and to prepare.”
The Kinder Institute has released a new interactive dashboard for the public. You can look up your neighborhood and find all sorts of data on how it ranks in terms of affordability, climate, and poverty.