Quality of Life Indicators

Cost of Living Index - updated 1/26/12

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The Cost of Living Index compares living costs (such as housing, transportation, utilities, groceries, and healthcare) for the typical middle-class family. Comparing our costs with cities around the country is often a first step for companies considering relocating to our region. Every component of the COL Index began decreasing in 2010, after years of increases. For several years, the Reno MSA composite grew at a faster rate than Las Vegas, but dropped below Las Vegas, first quarter 2010.  The drop in housing is driving the lower composite, but increases in food and transportation are expected the next quarter. Other composite numbers for some comparable cities across the western US for Q3-2011 include:

• Reno-Sparks, NV 92.2
• Las Vegas, NV 98.3
• Boise, ID 94.2
• Denver, CA 105.3
• Flagstaff, AZ 112.4
• Portland, OR 117.1
• Salt Lake City, UT 94.8

percentage of families in poverty -- updated 11/12/11

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Although the American Community Survey census data is lagged, it indicates the percentage of families living in the most desperate situations. Community programs aimed at workforce development and literacy could help reduce the percentage of families in poverty. In Washoe County, 13.4% of all people were estimated to be in poverty in 2009. The US poverty threshold for a family of four, two adults and two children, was $19,803 in 2004, and $22,113 in 2010; the poverty threshold for 1-person in 2010 was $11,139; < 65 years $11,344; and ≥ 65 $10,458. [Note that these poverty levels do not include the real dollars needed for families to pay for all basic needs—food, housing, transportation, child care, healthcare and housing.]

median family income -- updated 11/12/11

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Median family income divides the income distribution into two equal groups: one having incomes above the median; and the other having incomes below the median. The Department of Housing and Urban Development tracks median family income for Nevada to evaluate housing costs and affordability. The change in median family income (American Community Survey) shows if the typical family can keep up financially. Washoe County’s estimated median family income fell 12.3% in 2009 and another 1.2% in 2010, compared to a lesser drop of 3.6% and 0.8% respectively for the US.

households overpaying for housing -- updated 11/13/11

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According to the US Department of Housing and Urban Development: “The generally accepted definition of affordability is for a household to pay no more than 30% of its annual income on housing. An estimated 12 million renter and homeowner households now pay more then 50% of their annual incomes for housing, and a family with one full-time worker earning the minimum wage cannot afford the local fair-market rent for a two-bedroom apartment anywhere in the United States.” Overall, housing overpayment, including utility and insurance costs, is a more prevalent problem among renter-households than among owner-households. Community programs can support the creation of more affordable housing opportunities.

The U. S. Department of Housing and Urban Development guidelines establish that homeowners are overpaying if their mortgage is 25% or more of household income. Renters are overpaying when rent and utilities are 30% or more of household income. According to the ACCRA Cost of Living Index, fourth quarter 2007, the average cost for a 2-bedroom, unfurnished 950 sq. ft. apartment rental, excluding all utilities except water in the Reno/Sparks area was $705 per month. The Nevada Housing Division, Second Quarter 2010, Apartment Facts report found the mean rental cost for a 2-bedroom apartment in the greater Reno/Sparks to be $801.44. Rents fell for apartments of all sizes in 2010.

Housing Opportunity Index - updated 2/28/12

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A measure that is similar to the Housing Affordability Index is the Housing Opportunity Index. It tells the percentage of homes sold in an area that would have been affordable to a family earning the local median income (estimates published by HUD) based on standard mortgage criteria. While the Reno MSA was in a very strong position from the 1990s through 2003, we have dropped significantly in recent years. Home prices started dropping in the Reno-Sparks MSA in 2008, coinciding with the the debt-fueled housing and construction downturn. The good news is the increasing share of homes sold in the area considered affordable for median income. This is also good news for employers considering relocation to northern Nevada, since they factor housing costs into their economic decision-making. Unfortunately, several years of declining in property values, in conjunction with property tax caps, will continue to create monthly revenue deficits for local governments supported by property tax revenues. Many Nevadans are also upsidedown in their mortgages as home values continue to slide and Nevada continues to lead the nation in foreclosures.  

Visit TMT's affordable housing indicator data page for more information.

Interesting article on housing’s link to the economy in The Atlantic magazine, September 2010.

Census population data map

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