Ravalli County scores low for affordable rent
Ravalli County barely received a passing grade in a recent report that linked the cost of rent to what people earn. The 2008 Colorado College State of the Rockies report card gave Ravalli County a C-minus for being a place with affordable rent. The recently released report profiled states and counties throughout the Rocky Mountain region.
The formula the report used to rate affordable rentals took the difference between fair market rent for a two-bedroom unit compared to the rental rate that is affordable for county residents with a median household income.
The data from the study was derived from the Census Bureau and the Department of Housing and Urban Development. From 2000 to 2005, the Rockies region experienced a population growth rate 4.5 times the national average, Wiley Rogers wrote in the study. Although growth and the regional appeal have stimulated the regional economy, they have also taken a toll on housing availability and affordability, creating an affordability crisis in many Rockies communities.All four of Montana’s fastest growing counties, Missoula, Ravalli, Flathead and Gallatin, received low scores. Of those counties, Missoula County received the lowest score, a D.
According to the study, current rental prices in Ravalli County for a two-bedroom unit was $44 more than what is considered affordable for renters who make a median income.
Statistics show 80 percent of renters in Montana paid more than 30 percent of their income on rent - making saving money to buy a home more unattainable. According to 2007 data, the average median income for Montanans is $29,156 annually, while the average median dual income is $48,158 - the 43rd lowest in the nation. The average cost of a home in the four fast-growth counties is more than $200,000.
Communities in the Rockies suffer as policemen, bank clerks, street cleaners, cappuccino makers - members of the working class - are pushed out, unable to afford housing in their own communities, the study says. Protecting the vibrancy and social health of Rockies region communities means providing adequate housing for residents that support these communities.
Montanans working at minimum wage need two jobs to afford median rent, the study says. An influx of people migrating from expensive housing markets, particularly from California, is one reason housing prices are going up, the study says.
“Population growth in the Rockies is making it increasingly difficult to provide affordable housing,” Rogers wrote. “Renting a typical apartment in the Rockies with a minimum wage salary is nearly impossible.” According to figures, 33 to 50 percent of households in Montana spend more than 50 percent of their income on housing, which leaves fewer opportunities for renters to save their money. Without being able to save money, a person’s borrowing power, economic prosperity and the chances of qualifying for a mortgage decline.
Montana is one of six states that does not offer any state funding to provide for affordable housing.
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