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Homeownership Affordability

  • Tracks the cost of entry-level homeownership in relation to local wages. Higher values on the chart represent higher wages relative to for-sale housing costs and indicate greater affordability.

About

Homeownership Affordability

The Homeownership Affordability Index tracks Kent County’s housing affordability by calculating whether a single average-wage job is enough to purchase an entry-level home. The index value represents the percent difference between the average wage and the income needed to afford entry-level housing, showing how accessible entry-level homeownership is for a typical worker and whether the local housing market is moving toward or away from affordability. Higher values on the chart indicate greater affordability.

Why We Track It

This key performance indicator tracks progress on our first shared goal: to increase housing affordability in Kent County. Homeownership is one of the most reliable pathways to long-term stability and wealth-building. But when the cost of buying a modest home rises faster than what local jobs pay, that pathway narrows—especially for first-time buyers and working families.

The Homeownership Affordability Index reveals whether wages in our community are keeping pace with the cost of homeownership. Tracking this trend over time helps us see whether collective efforts—like increasing housing supply, preserving affordability, and raising wages—are making a difference. When the index moves closer to the target zone, it means our housing system is doing what it should: keeping the dream of homeownership within reach for people who live and work here.

How to Use It

  • The target zone for this indicator is placed a zero, the point when the average job pays just enough to afford an entry-level home. Over time, collective action in our housing system should decrease housing costs relative to wages, directing the trend upward into the target zone.
  • We observe a downward trend starting in 2012, at the peak of the Great Recession. Since then, housing affordability in Kent County has never been worse.
  • Hover or tap the chart for more details housing costs and wages.

Get the Data

What’s included:

  • Typical entry-level home: The value of a typical home in the bottom third of the market.
  • Monthly housing costs: The monthly housing costs associated with purchasing a typical entry-level home; assumes a 10% down payment and an average market interest rate from the given year; includes utility costs, insurance, private mortgage insurance, and taxes.
  • Income needed to afford: The minimum income needed to afford the monthly housing costs and NOT be housing cost-burdened (that is, not paying more than 30% of income toward housing).
  • Average annual wage: The average annual full-time wage or salary paid to workers in the region.
  • Annual surplus (shortfall): Indicates how much average annual wage exceeds or falls short of the income needed to afford an entry-level home, expressed in dollars.
  • Index value: Indicates how much the average annual wage exceeds or falls short of the income needed to afford an entry-level home, expressed as a percentage.
  • Index interpretation: Narrative explanation of the index value for the given year.

Get the data

Frequently Asked Questions

Methodology

The calculation for the index value is as follows:

$$ index\>value = \frac{[monthly\>housing\>budget]}{[monthly\>housing\>costs]} – 1 $$

where,

  • Monthly housing budget equals 30% of the average annual wage[1], divided by 12. This follows the so-called “30% affordability standard,” which suggest housing costs should not exceed 30% of gross income.
  • Monthly housing costs equals the sum of the following components:
    • Mortgage payment – calculated using a standard loan term of 30 years with a 10% down payment. The Zillow Home Value Index – Bottom Tier[2] is used as the home price, simulating the typical cost of an entry-level home. The interest rate used to calculate the mortgage payment is the annual average of market rates[3] from the relevant year.
    • Property taxes – calculated by multiplying the median effective property tax rate by the home value, then dividing by 12. Median effective property tax rates are calculated using American Community Survey Public Use Microdata via University of Minnesota IPUMS USA (IPUMS)[4].
    • Property insurance – median monthly property insurance costs are calculated by Housing Kent using IPUMS[4].
    • Utilities – Median monthly utility costs are calculated by Housing Kent using IPUMS[4].
    • Private mortgage insurance (PMI) – Calculated by applying a rate of 0.63375% to the loan value, then dividing by 12. This rate was calculated by averaging typical PMI rates across a range of credit score ranges calculated by the Urban Institute for mortgages with 90% loan-to-value ratios.

Sources

  1. Bureau of Labor Statistics, Occupational Employment and Wage Statistics and Consumer Price Index (CPI-U)
  2. Zillow Group Inc., Zillow Home Value Index – Bottom Tier
  3. Freddie Mac, Private Mortgage Market Survey
  4. US Census Bureau, American Community Survey Public Use Microdata Set, via University of Minnesota IPUMS USANote: since data derived from IPUMS lags behind other data release by approximately one year, the most recent year’s values are calculated by inflation-adjusting the previous year’s values using the appropriate Census region’s Consumer Price Index (CPI-U).

Driving Directions

Fulton Lot Driving Directions: MapQuest/Google Maps Address 312 W. Fulton, Grand Rapids, MI 49504

From Chicago: I–94 East to I–196/US–31 (Exit 34) at Benton Harbor. Take I–196 toward Grand Rapids to US–131 South. Take US–131 South to Pearl Street exit (keep to the right of the on–ramp to US–131 as this becomes the off–ramp for Pearl Street). You will then merge onto Mt. Vernon Ave. Continue on Mt. Vernon until you come to a light at Fulton St, turn left here. Under the US–131 Overpass, the Fulton Lot will be on your right. Approximately 200 miles from Chicago. PLEASE NOTE: Michigan is one hour ahead of Illinois (EST).

From Detroit/Lansing: I–96 West to I–196 West (Gerald R. Ford Freeway) to US–131 South. Take US–131 South to the Market Street exit (keep to the right of the on–ramp to US–131). Turn left onto Market from the exit. Turn left on Fulton. Under the US–131 Overpass, the Fulton Lot will be on your left. Approximately 2 hours from Detroit, and 60 minutes from Lansing.

From Holland: I–196 East to US–131 South. Take US–131 South to the Pearl Street exit (keep to the right of the on–ramp to US–131 as this becomes the off–ramp for Pearl Street). You will then merge onto Mt. Vernon Ave. Continue on Mt. Vernon until you come to a light at Fulton St, turn left here. Under the US– 131 Overpass, the Fulton Lot will be on your right. Approximately 30 miles from Holland.

From Kalamazoo: US–131 North to the Pearl Street Exit, #85B. Turn left onto Pearl Street and proceed one block beyond the US–131 overpass to Mt Vernon Ave and turn left, in two blocks turn left on Fulton St. The Fulton Lot will be on your right. Approximately 50 miles from Kalamazoo.

From Muskegon: I–96 East to US–131 South. US–131 South to the Market Ave Exit. Turn Left on to Market, and then Left on Fulton St. The Fulton Lot will be on your left. Approximately 45 miles from Muskegon.

From Northern Michigan: US–131 South to the Market Ave Exit. Turn Left on to Market, and then Left on Fulton St. The Fulton Lot will be on your left. Approximately 150 miles from Traverse City.

KPI 3 — Homelessness

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Dora Ferrier Headshot

Dora Ferrier

Executive Assistant

Dora Ferrier proudly serves as the Executive Assistant to Eureka People. Her career has been characterized by substantial contributions in positions focused on enhancing organizational efficiency, relationship development, and community outreach. Dora excels in introducing change management initiatives, ensuring flawless project execution, and boasts certifications in both Microsoft Office and ChatGPT. She also holds a Teaching English as a Foreign Language (TEFL) certificate, leveraging her expertise to support refugees and non-native English speakers in their community integration efforts. Dora is a skilled public speaker, providing invaluable insight and assistance to child protective workers and law enforcement personnel in identifying signs of child abuse. Dora’s heartfelt mission centers around elevating the quality of life for underprivileged Kent County residents and promoting community empowerment as a catalyst for positive change.

KPI 2 — Rental Housing Affordability

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KPI 3 — Homelessness

Cumulative Homeless Count

Source: Continuum of Care System Performance Measures (US Department of Housing and Urban Development)

About Rental Housing Affordability

An estimate of how much annual household income is needed to rent an apartment at a particular price.

Source: Housing Kent

Our Methods
We define housing costs as affordable if they consume 30% or less of gross household income.

About Typical Rent Costs

A measure of typical monthly rent for an apartment in the middle cost tier, defined as the 40th to 60th percentile.

Source: Zillow Observed Rent Index (ZORI)

Our Methods
The ZORI is published on a monthly basis. To calculate an annual figure, we take an average of the monthly figures.

About Homeownership Affordability

An estimate of how much annual household income is needed to purchase a home at a particular price.

Source: Housing Kent

Our Methods
We assume current interest rates, a 3% downpayment, and $500 in outside household debt.
Alex

Meet Alex Kontras, M.P.A.

Senior Director of Data and Policy

Alex Kontras is the Senior Director of Data and Policy at Housing Kent. Alex’s passion for housing justice, combined with his experience in public policy, housing crisis response, and data-informed decision-making adds immeasurable value to our team. Previously Alex worked with Public Sector Consultants, translating federal special education policy into data-driven collaboration tools for the Michigan Department of Education. Prior to that, at the Massachusetts Housing and Shelter Alliance, Alex managed programs in supportive housing, rapid-rehousing, and homelessness prevention. He holds a Master’s in Public Administration from Grand Valley State University and a Bachelor’s in Sociology from Calvin University.
Adisa

Meet Adisa Chaney, M.S.W.

Senior Director of Community Engagement and Equity

Adisa Chaney is the Senior Director of Community Engagement and Equity for Housing Kent. An experienced community organizer, facilitator, and thought partner, Adisa has worked extensively with politically and economically marginalized communities to build capacity and support residents’ efforts to effect change in their communities. He currently teaches at the University of Michigan and Eastern Michigan University Schools of Social Work, principally focusing on courses involving community engagement, grant-writing, and social work in and with communities of color. His work in recent years has included development and administration of several community projects in the metro Detroit area, as well as being responsible for the training and evaluation of community facilitators for foundation initiative. The initiative is a collaborative partnership with an area school district, focused on improving educational outcomes of K-12 youth in economically disadvantaged communities in and around Grand Rapids, Michigan. 

TIana

Meet Tiana Hawver, M.S.

Communications Manager

Tiana Hawver is the Communications Manager for Housing Kent. Tiana has over 15 years in marketing, public relations, and communications, including 10 in marketing and media. Prior to joining Housing Kent, she served as the Office Coordinator for the Dorothy A. Johnson Center for Philanthropy at Grand Valley State University for five years. Tiana is a gifted speaker and writer, and produced a documentary, “Reconnecting the Dots,” sharing her journey as an adult adoptee reconnecting with her birth family. Tiana has a Master of Science in Communication from Grand Valley State University.

Housing Kent Headshots Eureka 32

Meet Eureka People, M.A.

President

Eureka People has answered the call to lead as President of Housing Kent’s efforts to dissolve homelessness, increase affordable housing, and eliminate the shocking racial disparities in the housing system in Kent County. Prior to accepting this position, Eureka spent 10 years as Principal Consultant of her own strategy and facilitation consultancy specializing in systems change for nonprofits, foundations, and government. In this capacity, she developed strategies for a foundation initiative, facilitated the design of a school district’s nationally recognized attendance campaign and strategic plan, facilitated a nonprofit’s community development project, and facilitated another nonprofit’s board of trustees leadership experience program, among other projects.  She then guided the Housing Stability Alliance network to the building of a roadmap to address housing inequities and racial disparities. It was this that led to her being asked to apply to lead further housing efforts here in Kent County.

Eureka’s career before extensive consulting in Kent County included several years as VP of Finance and Operations for the National Community Development Institute in Oakland, California. She also served three years as Associate Pastor of Assimilation and Discipleship at Eastern Star Church in Indianapolis, Indiana. Before being drawn to humanitarian and nonprofit work, with a Bachelor of Science in Electrical Engineering, Eureka worked as a Project Engineer for Eli Lilly & Company in Indiana.

Eureka has recently moved to Grand Rapids and looks forward to getting to know her new home and to leading our community to greater awareness of and motivation to addressing and healing one of our most pervasive and limiting societal problems.

Eureka holds a B.S. in Electrical Engineering, M.A. in Theology.

Operationalizing the Common Agenda and Roadmap

With the release of the community plan in August 2020, KConnect completed the work that it had committed to accomplishing when agreeing to take on the project in 2018. The four co-chairs of the Housing Stability Alliance – Mayor Rosalynn Bliss, Chair Mandy Bolter, Lynne Ferrell, and Christina Keller – committed to moving the Alliance forward. However, without a backbone organization focused solely on advancing the movement, it lost momentum. It was apparent that it was necessary to quickly get a backbone in place in order to keep the work moving forward. After a series of discussions, KConnect agreed to partner with the Alliance co-chairs to temporarily take the lead to create a nonprofit organization that served as a backbone for the Alliance’s work.

The role of KConnect was NOT to serve as the Alliance backbone. However, we served as temporary support to launch the permanent backbone that became Housing Kent. Launched in February 2022, the new organization is its own 501c3 with its own bank account, bylaws, and five-year budget.

The Second Phase

We delivered a common agenda and roadmap that has created and sustained a movement to build systems between sectors and empowers lived experience to dissolve housing instability and homelessness for children and families from the landscape of Kent County.

The scope and agreed-upon purpose of the last six months of work is presented to the side. Creating an equitable housing system will not happen overnight. It will decades of hard work and dedication from the entire community. However, if 2019 was any indication that the Kent County communities share a passion for this issue, we are well poised to create change.

Scope

Recognizing the disparate overrepresentation of families of color among homeless populations, our work through June 2020 will be focused on creating a community framework that will reduce the disparity in our housing efforts over the next five years.

Purpose Statement

Increase access to quality affordable housing and dissolve homelessness in Kent County with an intentional focus on eliminating racial disparities among families, children, and youth and other data-driven priorities.

Getting Started: The First Twelve Months

In May 2018 concerned community stakeholders asked KConnect to bring people together to examine how the housing system is working, establish shared goals, and develop collaborative strategies to reach those goals with a focus on children, families, youth, and people of color. KConnect initiated its work in Fall 2018, KConnect began a yearlong process to convene organizations, funders, and other stakeholders within the housing and homeless system. Together we will develop a comprehensive community plan specifically calling for equitable outcomes for children and families.

This work was originally anticipated to be completed in December 2019. However, in October 2019, after careful consideration and reflection, the Board of Trustees approved a request from the Design Team for a six-month extension in order to create a more comprehensive community plan. During the final months, the teams will move into a collaborative designing phase.

Purpose Statement

The purpose of our work is to align and connect system-level interventions that address homelessness and increase access to housing. Strategies must be intentionally designed with the end user in mind and targeted to people of color.

Mission Statement

The mission is to increase access to affordable housing and decrease homelessness for families, children, and youth, with an intentional focus on eliminating racial disparities in Kent County.