Cost of Living Index

The Cost of Living Index is the most reliable source of city-to-city comparisons of key consumer costs available anywhere, according to the Council for Community and Economic Research. COLI data is recognized by the U.S. Census Bureau, US Bureau of Labor Statistics, CNN Money, and the President's Council of Economic Advisors. [Their] data and methodology are described in detail and completely transparent to users. Both data and methodology are reviewed by an Advisory Board composed of academic researchers and government officials. The Cost of Living Index is referenced in the US Census Bureau's Statistical Abstract of the US.

Feel better about your decision to move. Negotiate a fair salary with your employer or employee. Be an informed researcher about local pricing. Tap the Cost of Living Index today as the source for comparing prices and the overall cost of living in more than 300 cities. C2ER

Cost of Living Index – Table 728

The U.S. economy: What’s come back, and what hasn’t

Many of the U.S. economy’s vital signs have recovered from the damage done by the Great Recession.

The economy is not back to full health, with unemployment at 7.6 percent and with 3 million fewer jobs than when the recession began. And although the housing market is improving, that engine of economic growth and job creation still has far to go before it can be declared healthy.

After five painful years, it’s nearly back to where it started when the recession began. What’s different now is that the trends are much healthier.

What’s back:

• Household wealth
• Retail sales
• Layoffs
• Foreclosures
• Stock market
• GDP (Gross Domestic Product)

 What’s not back:

• Total jobs
• Unemployment rate
• Housing
• Auto sales
• Industrial output

Get more detail here: Salt Lake Tribune

Out of Reach 2013

The Housing Wage in Out of Reach captures the gap between wages and rents across the country, and is the estimate of the full-time hourly wage that a household must earn to afford a decent apartment at the HUD estimated Fair Market Rent (FMR), while spending no more than 30% of income on housing costs. The 2013 Housing Wage is $18.79, exceeding the $14.32 hourly wage earned by the average renter by almost $4.50 an hour, and greatly exceeding wages earned by low income renter households.

Each year, Out of Reach demonstrates that large numbers of low income renters cannot afford the cost of living in the cities and towns where they work. This edition underscores the challenges facing the lowest income renters: increasing rents, stagnating wages, and a shortage of affordable housing. The urgent solution to these issues is clear: expanding the supply of affordable housing units, dedicated to the lowest income renters.

Housing costs vary across the nation, but the lack of affordable housing affects low-wage workers in all corners of the country. In order to close the gap between the demand for affordable housing and the supply, we would need to add 4.5 million units affordable to ELI households. This is not an unattainable goal. Once funded, the National Housing Trust Fund (NHTF) would provide states with the dollars they need to expand the stock of housing that is affordable to ELI households.

In Utah, the Fair Market Rent (FMR) for a two-bedroom apartment is $777. In order to afford this level of rent and utilities – without paying more than 30% of income on housing – a household must earn $2,590 monthly or $31,079 annually. Assuming a 40-hour work week, 52 weeks per year, and this level of income translates into a Housing Wage of $14.94.

In Utah, a minimum wage worker earns an hourly wage of $7.25. In order to afford the FMR for a two-bedroom apartment, a minimum wage earner must work 82 hours per week, 52 weeks per year. Or a household must include 2.1 minimum wage earners working 40 hours per week year-round in order to make the two-bedroom FMR affordable.

In Utah, the estimated mean (average) wage for a renter is $11.78. In order to afford the FMR for a two-bedroom apartment at this wage, a renter must work 51 hours per week, 52 weeks per year. Or, working 40 hours per week year-round, a household must include 1.3 workers earning the mean renter wage in order to make the two-bedroom FMR affordable. National Low Income Housing Coalition

Volunteers working to count Utah’s homeless

Volunteers across the state are hitting the streets, looking to count the number of homeless in Utah.

In 2012, the Department of Workforce Services estimated 16,522 people experienced homelessness in Utah. Dozens of volunteers throughout the state will try and see if those numbers have decreased.

Weber Housing Authority Director Andi Watkins coordinates the Point-In-Time Count in Weber County. The survey is conducted on the same day, January 30, every year. Watkins says the date is significant because it’s marked as the coldest day of the year.

The majority of homeless individuals are in shelters, but volunteers go anywhere they think homeless individuals may stay. The numbers they collect go to the state and help determine how much state and federal funds communities get for housing programs.

Watkins says most of the homeless individuals are glad to participate, knowing that the agencies are looking for ways to help them get a roof over their heads. Fox13 News

Statewide Homeless Point-in-Time Count to be conducted today

Public, private and non-profit homeless service providers will conduct an annual Point-In-Time Count of the homeless population in Utah today, January, 31. Additional surveys will be conducted February 1-2 in Salt Lake County.

Every year the State of Utah through the State Community Services Office participates in a physical count of all homeless individuals across the state to determine how many people were homeless on a single night, or Point-In-Time. The U.S. Department of Housing and Urban Development (HUD) requires that states complete a physical count of both sheltered and unsheltered homeless persons in 2013. During the three day count, homeless Utahns will be asked where they spent the night of Wednesday, January 30. Department of Workforce Services

Donation to homeless when filing taxes discussed at U. panel

Vaughn Davis is one of many who have found success with the help of a case worker, who directed him to permanent supportive housing (PSH) while he got on his feet.

Davis lives at Kelly Benson Apartments, a complex that provides low cost housing for up to 70 people who are seniors with disabling conditions or are chronically homeless. Through the program, Davis now works at the front desk of the West Valley apartment complex.

"Through my case worker, I now have a part-time job and it’s wonderful," Davis said during a panel discussion on homelessness at the University of Utah’s Hinckley Institute of Politics on Thursday.
Shrinking the homeless population is a goal several advocates who spoke at Thursday’s panel believe can be achieved.

Davis shared his story during the discussion, which also included community advocates, directors of nonprofit organizations and the Department of Workforce Services.

Among the issues addressed was the inaugural campaign of the Pamela Atkinson Trust Fund. When Utahns file their state taxes this year they can donate on line 28 a minimum of $2 to the trust fund to help build more housing for the homeless population.

Director of The Road Home, Matt Minkevitch, said a recent study done at Penn State University showed 90 percent of those entering a homeless shelter stayed for only a short time, and never needed the services again. The remaining 10 percent had a chronically homeless problem.

He said as more housing is created; the facilities around the valley will be able to shrink the shelter populations through offering other housing options.

Anne Burkholder, CEO of the YWCA of Salt Lake City, said many of the people who seek the YWCA’s services have homes, but often have chosen to leave to escape a domestic violence situation. Up to 175 individuals stay at YWCA, with some women and children staying up to 2 1/2 years.

"Our hope is to surround them with love and normality … to help them see that life can be different and support them," Burkholder said. Salt Lake Tribune

U.S. home price acceleration at six-year peak

U.S. home prices were up 7.4% nationally in November compared to the same period of 2011. Here’s a look at how each state has performed, according to CoreLogic.

CoreLogic said home prices grew by 0.3% in November, putting the year-on-year rate at 7.4% —the fastest gain since May 2006, before the onset of the Great Recession.

All but six states saw year-on-year improvements. Excluding distressed sales such as foreclosures and short sales, prices rose by 0.9% on the month and by 6.7% on the year.

CoreLogic’s pending home sales price index forecasts a 7.9% year-on-year price for December.

The recovery in home prices has gathered steam, helped along by low interest rates, a slowly improving jobs picture and an influx of prospective buyers attracted by more modest valuations, with Utah ranking #7 with a gain of 10.1 percent. Market Watch

As "Cliff" Nears, Economy Struggles for Lift

Down-to-the-wire talks in Washington to avoid the "fiscal cliff" take on a special urgency given the tenuous state of the U.S. economy, which firmed up in 2012 but which could slide into reverse if tax hikes and government spending cuts take effect in January. Here are some key barometers to watch early next year:


Economic growth - After a rough first half of the year, when GDP grew at an annual pace of under 2 percent, growth in the third quarter accelerated to 3.1 percent. Economic expansion has downshifted to 1.5 to 2 percent in the final months of the year, bringing total growth for the year to roughly two percent, slightly ahead of 2011's anemic 1.8 percent.

Because of the drag created by the likely pull-back in government spending, 2013 is not likely to see a big improvement. Economists predict growth of 2 to 2.5 percent. That's lower than the long-term, post-World War II rate of growth in the U.S. of 3.3 percent. The early part of the year could be tough, but the economy should gain steam as the year progresses. Research firm Macroeconomic Advisers expects growth of nearly 2 percent over the first half of 2013, with GDP hitting 3 percent over the second half and 3.2 percent in 2014."

Housing - One positive trend for 2013 is likely to be the continued recovery in housing. The problem child of the Great Recession finally bottomed in 2012. Existing home sales this year are on track to finish the year up 15 percent, while the number of properties on the market has plunged nearly 25 percent year-over-year. New home sales are on pace to increase 18 percent, while the closely watched Case-Shiller house price indexes will probably be up around 6 percent for the year. There is a long way to go when it comes to housing -- prices are still down approximately 30 percent from their peak. But after five years of housing acting as a drag on the economy, it has finally started to contribute to overall growth.

Jobs - As housing and the general economy pick up, the hope is that job creation follows. The final jobs report of the year will be released on Friday. Economists forecast that the economy created roughly 150,000 and that the unemployment rate will remain at 7.7 percent. Through November, the economy has added an average of 151,000 jobs per month, compared with 153,000 in 2011. After creating a total of roughly 2 million private-sector jobs in 2011 and 2012, it is amazing to consider that there are still 3.3 million fewer private sector jobs now than when the recession started in 2007 (including the preliminary benchmark revision).

In 2013, average monthly job growth should increase slightly to 165,000, with an annual average unemployment rate of 7.7 percent, according to a survey by the National Association of Business Economics. Wages and benefits also are expected to accelerate slightly next year, which could boost spending. CBS Moneywatch

U.S. Homebuilder Confidence at 6 1/2-year High

Confidence among U.S. homebuilders inched up this month, to the highest level in more than six and a half years, as builders reported the best market for newly built homes since the housing boom.

The National Association of Home Builders/Wells Fargo builder sentiment index released Tuesday increased 2 points to 47 from a revised 45 in November. That’s the highest reading since April 2006, just before the housing bubble burst.

Readings below 50 suggest negative sentiment about the housing market. The last time the index was at or above that level was in April 2006, with a reading of 51. It has been trending higher since October 2011, when it stood at 17.

The latest index, which is based on responses from 441 builders, reflects growing optimism that a turnaround in housing will endure after years of stagnation.

However, the index tracking builders’ outlook for sales over the next six months slipped 1 point to 51, back to where it was two months ago.

More people have started looking to buy homes, encouraged by a gradually improving economy, a steady rise in home values and mortgage rates that have been low all year. At the same time, the inventory of previously occupied homes available for sale has fallen sharply, reducing the competition for newly built homes.

Sales of new homes fell slightly last month, dragged lower by steep declines in the Northeast partly related to Superstorm Sandy. But they were still 17 percent higher in October than the same month a year ago.
Builders are locking up more land and ramping up construction. All told, builders broke ground on new homes and apartments in October at the fastest pace in more than four years. Salt Lake Tribune

More Seniors Carrying Mortgage Debt into Retirement

Paying off the mortgage before retirement has been the goal of generations of homeowners; some even celebrated with a mortgage-burning party. But an increasing number of households carry housing debt into their retirement years, according to the Federal Reserve’s Survey of Consumer Finances. Almost 1 in every 3 — 29 percent — of retired households had housing debt in 2010, up from 16.7 percent in 1989.

The median amount of retirees’ housing debt also tripled in that time, to about $61,000, adjusted for inflation.

Even among the oldest households —headed by people age 75 and up — 1 in every 5 had housing debt, up from 5.8 percent in 1989.

These families were able to trade up to larger homes or borrow against their equity when property values ballooned during the last decade and lenders loosened their credit standards. As a result, many people took on mountains of home debt to pay off credit cards and to finance bigger houses, home improvements or college tuitions.

That means more households now head into retirement with high monthly payments, just at the time their incomes are sliding. AARP, the advocacy group for older Americans, is worried about the trend and recommends that homeowners try to pay off their mortgage before retirement.

"The more they can reduce their expenses when they’re not working, the better off they’ll be," said Jean Setzfand, AARP’s vice president for financial security. "The mortgage payment is one thing that’s predictable, and a goal that people should work for, in terms of removing that expense from their ledger." Salt Lake Tribune

Deals sealed for 1600 Utah home buyers

New down payment assistance mortgages from Utah Housing Corporation are fueling sales of low to moderate priced housing. Some 1,619 Utahns have obtained Utah Housing Corporation mortgages so far this year, at a pace that is almost double the volume at this time a year ago.

With Labor Day just behind us, the increased sales are a great harbinger, not just for home buyers but for Utah workers. Home sales spur economic growth through employment of workers for construction and remodeling, as well as large purchases such as appliances and furniture.

Housing sales and services represent 17 to 18 percent of Gross Domestic Product, according to the National Association of Home Builders.

Utah Housing has a unique niche in the Utah market place, providing down payment assistance mortgages to make housing affordable for low to moderate income buyers. In the past, Utah Housing served only first time buyers. Beginning last April, down payment assistance mortgages are available to buyers who have owned homes before. A credit score of 620 or higher can qualify someone to buy. Main Street Business Journal