Fort Collins' Cost of Housing Index (CHI) compared to Western Metropolitan Areas
Desired Result: Below Target
Analysis of Performance
Note: This metric is reported one quarter in arrears since the data takes time to be reported by a third party agency; current performance is based on the prior quarter's results. This metric was previously reported as the Housing Opportunity Index (HOI), which has been discontinued and replaced by the CHI.
The data for this measure are lagged by one quarter. The value for Fort Collins is unchanged from the previous quarter (43). The value for comparable jurisdictions increased slightly to 46.1, meaning that the average housing price in Fort Collins is marginally more affordable at the median income in Fort Collins than comparable jurisdictions.
Metric Definition
The NAHB/Wells Fargo Cost of Housing Index (CHI) is a quarterly analysis of housing costs in the United States and in specific metropolitan areas. The CHI represents the portion of a typical family’s income needed to make a mortgage payment on a median-priced home. For example, a CHI reading of 38% means a typical family in the U.S. would need to allocate 38% of its pre-tax income to cover the mortgage payment for a median-priced home.
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 incomes, 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 often incentivizes a limited number of new housing units for lower-income residents, which would be included in the number of housing units reported through the CHI data. This metric reports market activity more than City activity.
Benchmark Information
This metric contains regional benchmark data because there are not enough reporting areas in Colorado. The CHI only tracks certain metropolitan areas, and data are not available for every location in the country. Comparing Fort Collins' CHI to the CHI of other regional metropolitan areas allows a separate analysis of internal and external trends, which places the City's performance in context. This data is published quarterly, although published for the preceding quarter.