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Traditionally the discussion about affordability has focused on housing, but HUD’s Location Affordability Index (LAI), released in 2012, helped to elevate the conversation by expanding the focus to include households’ transportation costs. In the first part of this webinar, Dr. Ganning will provide an overview of the LAI, discuss its technical limitations, and provide recommendations for future research. The second portion of the webinar will present the results of a household survey of housing and transportation costs, conducted in Cleveland, Ohio. The household survey supports and extends the conclusions of the first part of the webinar, adding information regarding transportation cost estimates, and a perspective on the burden placed on households by unaffordable costs.
The LAI appears to overestimate housing cost and cost burden by 10-20%, depending on tenure and urban/rural location. The transportation costs estimated by the LAI cannot be reproduced, and partially depend on data that is either not publicly available or has...Read more