Seniors, young pinched by Naperville housing costs

Naperville may need more lower-cost housing options if it wants to accommodate people who work within its borders and retain people already living there, according to a new study.

Having the most difficulty affording a home in Naperville are senior citizens and people under 26.

The data comes from two surveys, one of Naperville residents and another of people who work in Naperville. The surveys were conducted in the spring and summer of 2008 and were recently presented to the city's Fair Housing Advisory Commission.

"The whole purpose of this analysis is to identify ... housing and income gaps, so looking at gaps between buying power and the housing stock that is presently available," said Greg Jones, project manager for the city.

The issue has been on the city council's priority list since 2007.

At the advisory commission meeting, Councilman Robert Fieseler compared the issue to the weather.

"Everybody complains about it, but nobody does anything about it," he said.

But he and others say they hope the study will be a starting point for addressing the gap.

According to national standards, a household shouldn't spend more than 30 percent of its income on annual housing costs.

This standard was used throughout the survey in analyzing affordability, though insurance and utility costs weren't factored into the estimates.

Based on that figure, roughly 85 percent of Naperville residents can afford the home they own or rent.

But what types of homes they could afford today paints a somewhat different picture. The median cost of a single-family home in Naperville is $450,000, according to the study. That means homeowners would need an annual household income of at least $150,000 to afford a home at that price. But the median household income in Naperville is $112,500.

Roughly 64 percent of residents and 82 percent of people who work in Naperville couldn't afford a single-family home in the city at today's prices.

A median-priced condo or townhouse also is out of reach for 30 percent of residents and 36 percent of employees.

In addition, the study found a shortage of at least 1,200 rental units for residents with annual incomes of less than $25,000.

The largest groups spending more on their housing than recommended are residents under age 26 and over 64.

One in five residents under age 26 spends 36 to 40 percent of his or her income on housing. Roughly 25 percent of the city's senior citizens spend more than 36 percent of their income on housing.

Nearly 10 percent of seniors actually spend 50 percent or more of their income on housing.

For seniors looking to move within the city, only about 12 percent have the income to purchase a median-priced single-family home in Naperville and 28 percent could afford a median-priced condo or townhouse.

But those figures don't take into account the equity seniors may have in their home that could be used toward their next purchase.

The cost of housing also is a deterrent to people who work in Naperville and would be interested in living in the city, according to the study. Roughly 61 percent of these employees don't live in Naperville. Most in the survey say they would like to but housing costs are too high.

Since the survey was conducted, the economy has continued to decline. But researchers say they don't expect the additional downturn to have a significant effect on the findings.

Buyers may be finding lower home prices, but they'll also be making less when they sell their current home.

Naperville's Fair Housing Advisory Commission will continue to discuss the study when it meets in March and formulates recommendations for the city council. The study could reach the council's agenda in April.