WFHB Bloomington Community Radio
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Bloomington’s high poverty rate and low housing affordability are closely linked, according to a new report. As of the most recent US Census data, the city of Bloomington holds a poverty rate of 38.3% and Monroe County stands at 23.5% – which is the highest rate for an Indiana county. A report by South Central Indiana Housing Opportunities details that the county’s housing costs are also the highest in the state. Deborah Myerson, the author of the report, said that high housing costs have increased over the years and create an affordability issue when coupled with low wages.
Says Myerson, “It’s something that has clearly had an impact over the years. Certainly post recession, there’s been an increase in growth in new construction in the community. We can see a pattern of increasing housing costs with relatively stagnant wages. There’s two ways that people can reduce the cost of housing-either by increasing their incomes or lowering their housing costs. When housing costs are going up, but wages are not, that increases the problem with housing affordability.”
According to the report, an average Bloomington renter earns on average $8.25 per hour, but would require $17.77 per hour to afford a two-bedroom apartment. Along with low average wages, Myerson said that the large and growing student population affects housing costs for the rest of the community.
“Their housing expenses are often paid for by their families, and so even though technically their income may not appear to be high, they have an outside source of income. This can create a higher ceiling for what housing costs will be. That then increases the market for housing rates, and that means that others in the community may not be able to afford the same housing costs. If there’s an increase in the student population, it creates more competition for housing.”
The report states that Bloomington will need an estimated 13,551 additional housing units between 2010 and 2030. It lists suggestions for lowering the construction costs, such as seeking land donations or discounted real estate.
