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Fort Collins' Housing Opportunity Index (HOI) compared to western states region HOI

Desired Result:  Above Target

 
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Analysis of Performance
Note: This metric is reported one quarter in arrears since the data takes 8 weeks to be reported by a third party agency; current performance is based on the prior quarter's results.

This information is always published for the preceding quarter. The HOI is down for Fort Collins and for the nation – with less than 18% of Fort Collins sales and only 37.4% of national sales affordable to households making their respective median income. Housing inventory remains low, and prices continue to go up even with interest rates higher than previous years. Even though building permit issuance continues to lag, new homes sales are trending up as resale inventory continues to be scarce.



Housing type diversity continues to be a challenge. The City has not successfully amended the Land Use Code to allow for more housing options. Permanently affordable for-sale homes are currently available to serve the lower income levels. Town homes and condos are slowly being added to the market. Costs to construct continue to be high.

Metric Definition
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 in the top third (66% or better) for the Western region of the United States.
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 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 HOI data. This metric reports market activity more than City activity.
Benchmark Information
This metric contains regional benchmark data because the target for this metric is defined as being in the top 66% regionally for HOI. Comparing Fort Collins' HOI to the regional HOI allows a separate analysis of internal and external trends, which places the City's performance in context. There are only 6 reporting areas in Colorado, which is not enough for a good comparison. This data is published quarterly, although published for the preceding quarter.