|Debra Smith, NGX|
Is housing in New Gloucester unaffordable? It depends on your circumstances. According to federal and state data, New Gloucester’s housing costs overall are lower than those of nearby towns, and state-wide.
The U.S. Department of Housing and Urban Development considers housing affordable if the total costs (rent/mortgage, taxes, utilities, homeowners insurance, and heating) are less than 30% of household income. As of 2017, 18.5% of New Gloucester households were paying more than 30% of household income in housing costs. Renters were more likely to be in unaffordable housing with 35% paying over 30% of household income in housing costs compared to 19.8% of owner households. Similarly, lower income households were less likely to have affordable housing with 57.8% of households that earn less than $20,000 per year paying more than 30% of their income in housing costs. The numbers in the chart below show that New Gloucester households (purple band, 18.5%) are far less likely to be cost burdened than those in nearby towns, Cumberland County as a whole, and the state (1).
If you’re trying to buy a home for the first time, New Gloucester is still less expensive than nearby communities. According to Maine Housing’s 2018 Housing Facts and Affordability Index (2), the median home price here was $239,500, the second-lowest in the area. (This figure is based on homes sold, not listing prices.) With household income considered, New Gloucester is more affordable than any nearby towns, with an affordability index of 1.04. But, the purchase of a median price home is still unattainable for a significant number of residents.
The Homeownership Affordability Index is the ratio of home price affordable at median income to median home price. An index of less than 1 means the area is generally unaffordable– i.e., a household earning median area income could not cover the payment on a median priced home (30 year mortgage, taxes and insurance) using no more than 28% of gross income.
Sources:
(1) The New Gloucester Comprehensive Plan is in draft and will be shared with the community soon. For more information, contact Planner Scott Hastings, shastings@newgloucester.com
(2) Maine Housing, Housing Facts and Affordability Index
Cumberland County
https://www.mainehousing.org/docs/default-source/housing-facts/2017/cumberlandcounty2018.pdf?sfvrsn=dd0b
Androscoggin County
https://www.mainehousing.org/docs/default-source/housing-facts/2017/androscoggincounty2018.pdf?sfvrsn=d1d3b615_3&sfvrsn=d1d3b615_3
