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 just about meets the 5% target standing at 4.6% above the national number. This means that 70.1% of all new and existing homes sold in the last quarter were affordable to families earning the area median income. Contrasting this to the first quarter of last year, when 86.1% of sales were affordable locally and 73.7% nationally, a trend against affordability is noted. While true nationally and locally, last year saw the local drop out pace the national drop. (This information is always published for preceding quarter).
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 localÃ¡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 CollinsÃ† HOI to the national HOI allows a separate analysis of internal and external trends, which places the CityÃ†s performance in context.