SECTION 3: REGIONAL ASSESSMENT OF FAIR HOUSING
While housing costs have increased rapidly, wages have not kept pace. The average median household income in Fresno County has increased an average of 3.1 percent annually from $45,741 in 2012 to $57,109 in 2020 according to 2016-2020 ACS data. Until 2020, the annual rate of increase in income was keeping a fairly steady pace with rising housing prices. However, between 2020 and 2022, based on a 2022 HCD estimate of Fresno County median income at $80,300, the annual rate of increase in household income was 6.8 percent, as compared to the rate of increase in housing prices discussed previously. The difference in these trends indicates growing unaffordability of housing in Fresno County.
In general, the Fresno County region has relatively low housing values and lower housing costs compared to many areas of the state; however, homeowners and renters experience housing cost burdens on par with state levels due to the region’s comparatively lower incomes. According to the San Joaquin Valley REAP 2022, estimated home values are at their highest point in decades. The impact of demographic shifts since the start of the COVID-19 pandemic are noticeable in home values in the Fresno County region, with values in several counties having risen nearly $100,000 since early 2020. As shown in Table 2-24, Fresno County Ability to Pay, in the Needs Assessment, the median home price in Fresno County is only affordable to moderate- and above moderate-income households, based on a family of four. Rent prices in Fresno County have also increased significantly and present a barrier to lower-income households at a comparable rate with home values, at 7.6 percent annually. Between 2014 and 2021, the average rent for a two-bedroom unit, for example, increased from $1,200 to $1,835 according to a Zillow 2021 survey, and was affordable only to moderate-income households and above.
Data from Rentcafe.com (2022) indicates that 7.0 percent of units in the City of Fresno rent for less than $1,000 monthly, 54.0 percent rent for $1,001 to $1,500 monthly,30.0 percent rent for $1,501 to $2,000 monthly, and 10.0 percent are above $2,000 monthly. However, these rent ranges do not differentiate between studio units and three- to four-bedroom units, and therefore the median rent estimate of $1,480 may not represent the overpayment and overcrowding challenges faced by special needs and larger households. Rentcafe.com also provides average rents for other jurisdictions in Fresno County and adjacent counties, with Clovis at $1,588, Coalinga at $1,114, Kerman at $1,167, Hanford at $1,581, Sanger at $1,093, Tulare at $1,787, Visalia at $1,691, and Merced at $1,262. The countywide rate of lower-income renter overpayment is 75.4 percent, with rates exceeding those in the cities of Fresno, Fowler, Reedley, Sanger, and Selma. As renter households within most of the Fresno County jurisdictions comprise between 40.0 and 60.0 percent of the total households, and lower-income renters tend to have higher rates of overpayment than moderate- and above moderate-income renter households, this constitutes a significant proportion of renter households. As discussed in the analysis of Patterns of Integration and Segregation, the highest rates of poverty along the SR 99 corridor are in the City of Fresno, Sanger, Selma, Parlier, and Reedley, corresponding to the highest rates of cost-burdened, low-income renter households. In comparison, the lower-income renter overpayment rate in the unincorporated county is 13.5 percent.
In Fresno County, overpayment is pervasive and is not necessarily linked to areas with a lower median income, although within the county, 60.2 percent of lower-income homeowner households overpay as compared to 25.0 percent of total homeowners; and 75.4 percent of lower-income renters overpay compared to 52.2 percent of total renter households. The highest rates of lower-income homeowner overpayment above the countywide rate are present in Fresno, Kerman, Kingsburg, Mendota, Parlier, Reedley, Sanger, San Joaquin, and Sanger, while the lowest rates are found in the unincorporated county, Coalinga, Fowler, Firebaugh, and Huron.