Median household income in Lake Havasu City increased by nearly 10% from 2018 to 2021, but house prices appear to be rising even faster, and even low- and even moderate-wage homes are becoming more affordable in town. I am running out of money to borrow.
According to the recently completed City of Lake Havasu Housing Needs Assessment, median income for Havasu in 2021 will be $59,817, up 9.2% from 2018. Elliott D. Pollack & Company has completed a study paid for by the Partnership for Economic Development. Havasu’s median income is about $10,000 more than the entire Mojave County, but about $5,000 less than the median income for the state as a whole.
But Rick Merritt, president of Elliott D. Pollack & Company, told the Lake Havasu City Council last month that the median income of households renting accommodations is $39,432, well below the citywide median wage. says.
“That’s where you really run into problems with housing affordability,” Merritt said.
The study defines “affordable housing” as 30% or less of household income. Using this benchmark, this assessment reports that 43.4% of all rental housing households in town pay 30% or more of their income on housing. It was also reported that 19.1% of renters spend more than 50% of their income on their residence.
For people in the lowest income households, it is even more common for housing costs to exceed 30% of income. The study found that 93.3% of households with incomes below $20,000, 85.5% with incomes between $20,000 and $35,000, and 49.7% with incomes between $35,000 and $50,000 spent 30% or more of their income on rent. It turns out that
The Housing Survey also reports fair market value for rental units in Havasu, based on analysis from the Department of Housing and Urban Development. Fair market value represents the cost of renting affordable housing in the local housing market. hud.govAccording to the report, Havasu’s “fair market price” for one-bedroom rentals is $730 to $810, two-bedroom units $1,090 to $1,210, three-bedroom units $1,520 to $1,680, and four-bedroom units. $1,700 to $1,890.
However, according to estimates, many of the workers employed in Havasu will struggle to pay even a fair market price.
Merritt provided information on average wages for 14 different jobs across Mojave County and calculated how much a person could afford to pay rent without exceeding 30% of that income. Four of the 14 jobs she surveyed she couldn’t afford to pay the “fair market price” for a Havasu one-bedroom rental unit without another source of income within the household. These jobs include office clerks, retail salespeople, restaurant cooks, and nursing assistants, with average salaries ranging from $27,980 to $29,780. This equates to affordable monthly rents between $600 and $645.
The median income of the next seven occupations on the list can pay fair market value for a one-bedroom unit without additional household income, but cannot afford a two-bedroom unit. This includes waiters (median income $35,010), pharmacy technicians ($36,590), construction workers ($38,240), firefighters ($40,330), paramedics ($44,780), elementary and middle school teachers ( $46,780) and high school teachers ($47,510). The study calculated that rent should be between $775 and $1,088 per month to keep it below 30% of gross income.
Licensed Practical Nurses ($56,240) and Police Officers ($59,750) can pay $1,306 and $1,394 in monthly rent, respectively. This is more than the fair market value of a 2 bedroom rental, but less than the price of a 3 bedroom unit. A registered nurse, whose median salary is her $74,640, can afford to spend her $1,766 on rent. RNs are the only professions on the valuation list sufficient to cover the fair market value of a 4 bedroom unit.
However, Havasu’s current home rental market appears to be higher than the “fair market value” reported by HUD.
rent.com We have listed 139 Lake Havasu City properties available for rent on Monday. The lowest priced unit was a one-bedroom apartment available for $800 a month, while the rest he was $1,100 and up. Of the 139 rental properties in the city listed on the site, 10 were for $1,250 or less per month, 34 were for $1,400 or less, and 57 were for $1,700 or less.
The website lists 12 one-bedroom units priced between $800 and $1,500 per month, 45 two-bedroom units priced between $1,100 and $3,000, 77 three-bedroom units priced between $1,200 and $4,000, and four-bedroom units and above. Only two are listed ($2,800 and $3,200 per month).
Of the 14 occupations considered in this study, only licensed practicing nurses, police officers, and registered nurses were employed in any of the units, with no separate source of household income, and with the exception of a mere $800 apartment. could afford to buy one.
