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.
- Housing affordability continues to be a challenge nation wide – holding at only 37.4% of national sales affordable to households making their respective median income.
- The local number rose slightly to 1 in 5 sales being affordable to households making the median income.
- Shortage of inventory keeping prices high in part because people are not moving because they do not want to give up favorable mortgage rates.
- The City uses its limited influence to promote partner's programs such as down payment assistance and restricted homeownership.
- The City's recent land use code work will allow more diversity of housing types and price points.
- New State legislation will also remove barriers to Accessory Dwelling Units which had not been widely available.
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.