Why Homeownership Matters
The Housing Need in the Athens Area
The median home value in Athens-Clarke County is $111,300. Using the 30 percent rule, annual income of $33,390 is required to afford a home of this value, which equates to an hourly wage of about $16.05/hour working 40 hours/week. Consequently, approximately 21,000 households in Athens-Clarke County do not have incomes that would support monthly homeowner costs for a home of this value. Even for an $80,000 home in Athens-Clarke County, where an individual would have to make an annual income of $24,000 to afford a monthly homeowner costs without paying more than 30 percent, approximately 17,250 households could not afford to own this home. Athens Area Habitat for Humanity builds 3 bedroom, 1 bathroom homes for just $67,000 using a zero-interest mortgage, which includes the cost of land. This makes homeowner payments just $223 per month plus taxes and insurance. Partner families also provide a down payment of $500 as well as 500 “sweat equity” hours. Habitat helps families build homes of their own through sweat equity and a manageable payment plan, giving families in need a “hand up” not a hand out.
Homeownership benefits the community:
- Homeowners have higher rates of civic participation, represented by 25% greater participation in elections, 6% greater likelihood of working to solve local problems, membership in .25 more non-professional organizations.
- Homeowners are almost three times as likely to own a business as renters.
- Neighborhoods with a 80% homeownership rate creates a $5,000 premium, a measurement of the social benefits of high neighborhood homeownership rate.
Homeownership benefits children:
- On achievement tests, homeowners’ children score 9% higher in math and 7% higher in reading than renters’ children.
- Homeowners’ children have a 25% higher high school graduation rate, are twice as likely to acquire some post-secondary education, and are 116% more likely to graduate from college.
- Children living in owned homes experience fewer behavioral problems and enjoy a better social environment than children in rented homes.
- Homeowners’ children earn on average a dollar more per hour than renters’ children.
- At age 20, homeowners children were half as likely to be idle and to rely on welfare as an adult.