Fort Collins' Housing Opportunity Index (HOI) compared to western states region HOI
Desired Result: Above Target
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 dropped dramatically in Q2 and stayed in Q3 at about half the preceding quarters scores.
- The HOI hovered just above and below the goal of 66% of the western region over the past two quarters but ended at 69% above the City’s target. This is because the rest of the Western states are also struggling with affordability.
- Increased interest rates are the biggest factor coupled with low inventory and sales prices that have continued to rise even with the changes in interest rates.
- Income growth cannot keep up with market appreciation keeping potential buyers renting longer.
Affordable home ownership opportunities are being offered by City partners Habitat for Humanity and Elevation Community Land Trust. Interest rates should stabilize and offer more predictability. Staff continues to monitor as demand outpaces supply of housing inventory at most levels.
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.
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.