Percentage of Income Spent on Housing and Transportation by Moderate- and Low-Income Residents
This measure estimates the share of household income spent on housing and transportation (H+T) costs for moderate- and low-income households. For analysis purposes, any households with incomes below 80 percent of the regional family income are defined as low- and moderate-income. Data are from the Consumer Expenditure Survey (CES), which the U.S. Bureau of Labor Statistics (BLS) conducts annually. The survey collects information on household income and expenditures, including those for housing and transportation. Data are reported for the Chicago Metropolitan Statistical Area (MSA).
Staff reviewed regional affordability trends using this methodology since 2009, along with trends in overall housing affordability since 2000. The number of cost-burdened households (i.e., households paying more than 30 percent of their income on housing costs) has increased by more than 10 percentage points for both owners and renters. Since 2009, the combined H+T metric proposed here ranges from 60 to 67 percent, driven heavily by low- and moderate-income households spending a greater share of income on transportation costs. The 2025 target represents a near-term return to the recent low of 60 percent (from 2013). The 2050 target represents a continued decrease from the 2025 target, taking into account the range in which this metric has historically fluctuated, the policies of ON TO 2050, and the share of households expected to live outside of highly infill supportive areas.
2025: 60 percent or less of income spent on housing and transportation by moderate- and low-income residents.
2050: 55 percent or less of income spent on housing and transportation by moderate- and low-income residents.