Even with falling Gulf Shores housing costs, a study from the Center for Housing Policy found that affordability is still becoming increasingly out of reach for many would-be Gulf Shores homeowners and renters. According to the 2012 Housing Landscape report released by the Center, the share of working households paying more than half their income for housing between 2008 and 2010 went up from 21.8 percent to 23.6 percent.
Gulf Shores Housing Costs Drop as Well As Income
As Gulf Shores housing costs dropped between 2008 and 2010, working homeowners also dealt with shrinking paychecks. For working homeowners over the two-year period, incomes dropped twice as much as housing costs, according to the study.
The data released shows that Gulf Shores homeowners have been hit hard by the housing crisis in ways other than just lost equity. Many working homeowners have been laid off or had their hours cut.
According to the study, the monthly median income for working homeowners’ fell from $43,570 in 2008 to $41,413 in 2010, which is about a 5 percent decrease. The median number of hours worked per week dropped from 50 to 48 between the two years, which partly explains the decrease in income.
Renters Feeling the Pinch Too
For renters, the monthly median income fell 4 percent from $31,570 to $30,229 between the two years. Housing costs for renters also increased, up by 4 percent over the same period.
More and more people appear interested in renting. Some prefer it because it allows them to be more mobile in a tough job market. Others are postponing purchasing a Gulf Shores home or facing difficulties obtaining a mortgage. Given the long lead times involved in responding to increased demand with increased supply, the rental market has tightened somewhat and rents increased.
Laura Williams, author of the report, said rent rose because of increased demand for rental housing, which was partly encouraged by the housing market crisis.