Homeowners and renters alike are in for a major disappointment if they expect their annual incomes to keep pace with the skyrocketing cost of housing, a government survey said yesterday.
A joint report from the 1975 housing survey by the Census Bureau and the Department of Housing and Urban Development showed that the proportion of U.S. renters who must devote 25 per cent or more of their income in housing increased to 42.3 per cent, compared to 39.8 per cent in 1974 and 36.5 per cent in 1970.
Among the eight million renter households with income of less than [WORD ILLEGIBLE] in 1975, the median proportion of income devoted to rent was 35 per cent. The proportion was 30 per cent for the 3.2 million rental households with incomes of from $5,000 to $7,000.
For homeowners, the study also showed that the median value of single-family homes jumped nearly 73 per cent between 1970 and late 1975. At the beginning of the decade, the value was $17,000. As of October, 1975. [WORD ILLEGIBLE] up for the home was $29,500. During the same period, the study said median income for homeowners rose only 40 per cent - from $9,700 to $13,600.
Housing costs have continued to climb rapidly since then. Government figures released [WORDS ILLEGIBLE] that the median sales [WORDS ILLEGIBLE] single-family homes was [WORD ILLEGIBLE]
For renters, the situation was much the same, the reports said.
Median monthly rents, including utilities, increased from $108 to $156 during the 1970-75 period, a 44 per cent climb. At the same time, renters' median income increased 25 per cent, [WORDS ILLEGIBLE] to $7,900.
Overall, the median proportion of income devoted to housing costs among renters was 23 per cent. For home buyers with a mortgage the figure was 18 per cent, up from 17 per cent the previous year. Costs in both houses included utilities, insurance, taxes and other incidental costs where applicable.