Housing Opportunity Index (HOI)
- Analysis of Performance
- Metric Definition
- Why Is This Important?
- City Organization Impact on Performance
- Benchmark Information
Analysis of Performance
Rising home prices, based in part on increased construction costs, combined with increasing mortgage interest rates has caused nationwide affordability to continue to slip. Fort Collins' HOI responded similarly to the overall market but remains almost 10 percent better than the national HOI. This means that 74 percent of all new and existing homes sold in the second quarter were affordable to families earning the area median income. Since 2014 area median income recently published by HUD shows a decrease from 2013, this contributes to the decrease in affordability. This is the 3rd consecutive year of a decreasing area median income. (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 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.