Housing Opportunity Index (HOI)
- Analysis of Performance
- Metric Definition
- Why Is This Important?
- City Organization Impact on Performance
- Benchmark Information
Analysis of Performance
According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), Fort Collins once more is over the target of 5% over the national housing index number. This means that 69.5% of all new and existing homes sold in the last quarter were affordable to families earning the area median income. While housing affordability slipped slightly in Fort Collins, the drop at the national level was more pronounced allowing a bigger spread between the two. While this quarter experienced a slight decrease in affordability locally and nationally, both of these markets are still reasonably affordable by historic standards. With interest rates remaining near historic lows and job growth looking promising, real estate activity should remain high.
The Housing Opportunity Index (HOI) is defined as the share of homes sold in an area that would have been affordable to a family earning the local median income. The target is to be 5% better than the national HOI.
Why Is This Important?
This metric measures how the community's housing affordability changes over time based on income and housing cost. Data draws from the private housing market and interest rates, and is an indication of how well the market is responding to families earning the area median income.
City Organization Impact on Performance
Low - The City does not directly affect the private housing market or residents' income levels. Through grants provided by the Competitive Process, the City provides a limited number of new housing units for lower-income residents, which would be included in the number of housing units reported through the HOI data.
This metric contains national benchmark data because the target for this metric is defined as being 5% better than this benchmark. Comparing Fort Collins' HOI to the national HOI allows a separate analysis of internal and external trends, which places the City's performance in context.