Residential carbon emissions and energy use

RESIDENTIAL CARBON EMISSIONS AND ENERGY USE With the signing of the Paris Climate Agreement in December 2015, President Obama committed to reducing US greenhouse gas emissions to 2005 levels by 2025. To meet this goal, policy- makers must prioritize large cutbacks in the residential sector, which accounts for over a fifth of national carbon emissions.

The largest reductions in energy use can be achieved by retrofit- ting the existing stock. While the upfront investment required may be an obstacle for some property owners, tax credit and rebate programs can promote upgrades. Indeed, 63 percent of respondents to the 2015 Demand Institute Consumer Housing Survey stated that incentives were important to their likelihood of making energy-efficient improvements.

To encourage rental property owners to retrofit their units, FHA recently reduced its insurance rates on mortgages for multi- family properties meeting federal green building and energy performance standards. In addition, a number of state housing finance agencies currently provide loans for efficiency upgrades to both single-family and multifamily housing.

These efficiency improvements can yield important savings for low-income households, who pay much larger portions of their incomes for utilities than high-income households. For example, renter households earning under $15,000 a year in 2014 devoted 17 percent of their incomes to utility payments, and owner households with similar incomes paid 22 percent. By comparison, utility costs for both owners and renters earning at least $75,000 a year amounted to just 2 percent of income.

Meanwhile, development patterns play a large role in transporta- tion emissions, which are responsible for 34 percent of total emis- sions. According to a 2014 University of California Berkeley study, suburban households have a larger carbon footprint than urban or rural households not only because of their larger homes but also because of their higher rates of vehicle ownership. Similarly, a 2015 Boston University analysis found that lower-density met- ros like Denver and Salt Lake City have higher carbon emissions per capita than older, higher-density cities.

State and local efforts may be instructive to federal policymak- ers. Changes in the International Energy Conservation Code have already led to tighter state and local standards for new construction and remodeling. For its part, California has taken a leading role in reducing greenhouse gases by adopting the Clean Energy and Pollution Reduction Act of 2015, requiring a 50 percent increase in the energy efficiency of existing buildings by 2030.

THE OUTLOOK In 2016, after an eight-year delay, HUD allocated nearly $174 million to states through the National Housing Trust Fund—the first new program to expand the supply of affordable hous- ing for extremely low-income renters in a generation. While these funds will give a much-needed boost to state and local programs, the growing gap between the rents for new units and the amounts lowest-income households can afford to pay for housing underscores the difficulty of increasing the afford- able supply through new construction alone. Current proposals to expand the LIHTC program, as well as to reform the public housing and other rental assistance programs, may help broad- en access to affordable housing for the nation’s most vulnerable households. But preserving and maintaining the private supply of low-cost housing—where the majority of low-income renters live—is also crucial.

Reducing residential segregation by income will involve a con- certed effort by federal, state, and local governments to foster more equitable access to opportunity for people of all races and incomes. While reducing the growing isolation of the poor is key, addressing the self-segregation of the wealthy is also essential. At the same time, however, new investments in low- income communities—including job training, school quality, and healthcare facilities and other services—are no less critical to the well-being of millions of families.

Notes: Tribal census tracts are as defined by the US Census Bureau for 2010. Rural census tracts are in non-metro areas. Source: JCHS tabulations of US Census Bureau, 2010–2014 American Community Survey 5-Year Estimates.

Population in Poverty Units Lacking Complete Plumbing

Units Lacking Complete Kitchens

30

25

20

15

10

5

0

Census Tract Type ● Tribal ● Rural ● All

Residents of Rural Areas and Tribal Lands Are Especially Likely to Live in Poverty and Have Substandard Housing Share of Population and Housing Units (Percent)

FIGURE 37

 

 

APPENDIX TABLES

37JOINT CENTER FOR HOUSING STUDIES OF HARVARD UNIVERSITY

Table A-1 ……….. Housing Market Indicators: 1980–2015

Table A-2 ……….. Housing Cost-Burdened Households by Tenure and Income: 2001, 2013, and 2014

Additional tables can be downloaded in Microsoft Excel format at www.jchs.harvard.edu, including:

Table W-1 ………. Homeownership Rates by Age, Race/Ethnicity, and Region: 1994–2015

Table W-2 ………. Housing Cost-Burdened Households by Demographic Characteristics: 2014

Table W-3 ………. Monthly Housing and Non-Housing Expenditures by Households: 2014

Table W-4 ………. Metro Area Monthly Mortgage Payment on the Median Priced Home: 1990–2015

Table W-5 ………. Metro Area Cost Burden Rates by Household Income: 2014

 

 

THE STATE OF THE NATION’S HOUSING 201638

Housing Market Indicators: 1980–2015

TABLE A-1

Notes: All value series are adjusted to 2015 dollars by the CPI-U for All Items. All links are as of May 2016. n/a indicates data not available. Sources: 1. US Census Bureau, New Privately Owned Housing Units Authorized by Building Permits in Permit-Issuing Places, http://www.census.gov/construction/nrc/xls/permits_cust.xls. 2. US Census Bureau, New Privately Owned Housing Units Started, https://www.census.gov/construction/nrc/xls/starts_cust.xls. 3. US Census Bureau, Shipments of New Manufactured Homes, http://www.census.gov/construction/mhs/pdf/shiphist.pdf & http://www.census.gov/construction/mhs/xls/shipmentstostate11-15.xls. Data from 1980-2010 retrieved from JCHS historical tables.

Manufactured housing starts are defined as shipments of new manufactured homes. 4. US Census Bureau, New Privately Owned Housing Units Completed in the United States by Purpose and Design, http://www.census.gov/construction/nrc/xls/quarterly_starts_completions_cust.xls and JCHS historical tables. 5. New home price is the median price from US Census Bureau, Median and Average Sales Price of New One-Family Houses Sold, http://www.census.gov/construction/nrs/xls/usprice_cust.xls.

Year

Permits 1 (Thousands)

Starts (Thousands)

Size 4 (Median sq. ft.)

Median Sales Price of Single-Family Homes

(2015 dollars)

Single-Family Multifamily Single-Family 2 Multifamily 2 Manufactured 3 Single-Family Multifamily New 5 Existing 6

1980 710 480 852 440 222 1,595 915 185,817 178,482 1981 564 421 705 379 241 1,550 930 179,653 172,417 1982 546 454 663 400 240 1,520 925 170,210 166,280 1983 901 704 1,068 636 296 1,565 893 179,191 166,162 1984 922 759 1,084 665 295 1,605 871 182,268 164,931 1985 957 777 1,072 670 284 1,605 882 185,693 165,996 1986 1,078 692 1,179 626 244 1,660 876 198,956 173,564 1987 1,024 510 1,146 474 233 1,755 920 218,031 178,545 1988 994 462 1,081 407 218 1,810 940 225,397 178,714 1989 932 407 1,003 373 198 1,850 940 229,371 180,264 1990 794 317 895 298 188 1,905 955 222,872 175,602 1991 754 195 840 174 171 1,890 980 208,826 177,545 1992 911 184 1,030 170 211 1,920 985 205,257 177,467 1993 987 213 1,126 162 254 1,945 1,005 207,492 177,558 1994 1,068 303 1,198 259 304 1,940 1,015 207,910 180,282 1995 997 335 1,076 278 340 1,920 1,040 208,245 180,147 1996 1,069 356 1,161 316 363 1,950 1,030 211,487 184,120 1997 1,062 379 1,134 340 354 1,975 1,050 215,604 189,084 1998 1,188 425 1,271 346 373 2,000 1,020 221,749 196,254 1999 1,247 417 1,302 339 348 2,028 1,041 229,050 199,530 2000 1,198 394 1,231 338 250 2,057 1,039 232,613 200,967 2001 1,236 401 1,273 329 193 2,103 1,104 234,474 206,782 2002 1,333 415 1,359 346 169 2,114 1,070 247,162 218,956 2003 1,461 428 1,499 349 131 2,137 1,092 251,186 229,696 2004 1,613 457 1,611 345 131 2,140 1,105 277,294 241,921 2005 1,682 473 1,716 353 147 2,227 1,143 292,357 263,949 2006 1,378 461 1,465 336 117 2,248 1,172 289,805 260,864 2007 980 419 1,046 309 96 2,277 1,197 283,380 246,362 2008 576 330 622 284 82 2,215 1,122 255,508 215,520 2009 441 142 445 109 50 2,135 1,113 239,407 190,566 2010 447 157 471 116 50 2,169 1,110 241,087 187,762 2011 418 206 431 178 52 2,233 1,124 239,399 173,789 2012 519 311 535 245 55 2,306 1,098 253,128 181,467 2013 621 370 618 307 60 2,384 1,059 273,586 200,840 2014 640 412 648 355 64 2,453 1,073 283,136 209,148 2015 696 487 715 397 71 2,467 1,074 296,400 223,900

 

 

39JOINT CENTER FOR HOUSING STUDIES OF HARVARD UNIVERSITY

6. Existing home price is the median sales price of existing single-family homes determined by the National Association of Realtors® (NAR), obtained from NAR and Moody’s Economy.com. 7. US Census Bureau, Housing Vacancy Survey, http://www.census.gov/housing/hvs/data/ann15ind.html. 8. US Census Bureau, Annual Value of Private Construction Put in Place, http://www.census.gov/construction/c30/historical_data.html; data 1980-1993 retrieved from past JCHS reports. Single-family and multifamily are new

construction. Owner improvements do not include expenditures on rental, seasonal, and vacant properties. 9. US Census Bureau, Houses Sold by Region, http://www.census.gov/construction/nrs/xls/sold_cust.xls. 10. National Association of Realtors®, Existing Single-Family Home Sales obtained from and annualized by Moody’s Economy.com, and JCHS historical tables.

Vacancy Rates 7

(Percent) Value Put in Place 8

(Millions of 2015 dollars) Home Sales (Thousands)

For Sale For Rent Single-Family Multifamily Owner Improvements New 9 Existing 10

1.4 5.4 152,223 48,059 n/a 545 2,973 1.4 5.0 135,496 45,526 n/a 436 2,419 1.5 5.3 101,836 38,163 n/a 412 1,990 1.5 5.7 172,561 53,417 n/a 623 2,697 1.7 5.9 197,085 64,378 n/a 639 2,829 1.7 6.5 192,411 62,865 n/a 688 3,134 1.6 7.3 225,190 67,122 n/a 750 3,474 1.7 7.7 244,561 53,103 n/a 671 3,436 1.6 7.7 240,609 44,675 n/a 676 3,513 1.8 7.4 231,147 42,632 n/a 650 3,010 1.7 7.2 204,712 34,909 n/a 534 2,917 1.7 7.4 173,024 26,361 n/a 509 2,886 1.5 7.4 206,061 22,120 n/a 610 3,155 1.4 7.3 229,838 17,695 93,936 666 3,429 1.5 7.4 259,582 22,520 103,384 670 3,542 1.5 7.6 238,751 27,822 88,208 667 3,523 1.6 7.8 258,000 30,702 100,277 757 3,795 1.6 7.7 258,694 33,792 98,401 804 3,963 1.7 7.9 289,959 35,733 105,218 886 4,496 1.7 8.1 318,446 39,030 106,744 880 4,650 1.6 8.0 325,916 38,896 111,614 877 4,602 1.8 8.4 333,358 40,558 113,788 908 4,732 1.7 8.9 350,307 43,414 128,923 973 4,974 1.8 9.8 400,063 45,234 129,257 1,086 5,444 1.7 10.2 473,729 50,119 144,794 1,203 5,958 1.9 9.8 526,110 57,400 174,476 1,283 6,180 2.4 9.7 489,079 62,079 163,409 1,051 5,677 2.7 9.7 348,862 55,966 153,982 776 4,398 2.8 10.0 204,512 48,810 142,074 485 3,665 2.6 10.6 116,374 31,528 125,561 375 3,870 2.6 10.2 122,357 15,963 124,761 323 3,708 2.5 9.5 113,987 15,844 127,399 306 3,786 2.0 8.7 136,283 23,238 118,986 368 4,128 2.0 8.3 173,744 32,049 123,224 429 4,484 1.9 7.6 193,830 41,856 134,799 437 4,344 1.8 7.1 218,523 51,899 147,838 501 4,646

 

 

THE STATE OF THE NATION’S HOUSING 201640

Housing Cost-Burdened Households by Tenure and Income: 2001, 2013, and 2014 Thousands

TABLE A-2

Tenure and Income

2001 2013 2014

Not Burdened

Moderately Burdened

Severely Burdened Total

Not Burdened

Moderately Burdened

Severely Burdened Total

Not Burdened

Moderately Burdened

Severely Burdened Total

Owners

Under $15,000 1,008 855 2,683 4,547 921 882 3,438 5,240 871 873 3,395 5,140

$15,000–29,999 4,314 1,803 1,816 7,933 4,325 2,220 2,320 8,865 4,160 2,227 2,296 8,683

$30,000–44,999 5,711 2,037 991 8,739 6,019 2,392 1,198 9,609 5,957 2,369 1,151 9,477

$45,000–74,999 13,100 3,293 723 17,116 13,179 3,084 816 17,079 13,216 3,015 764 16,996

$75,000 and Over 29,098 2,282 272 31,651 30,612 2,219 310 33,141 31,398 2,109 281 33,787

Total 53,231 10,270 6,485 69,986 55,055 10,797 8,082 73,933 55,602 10,593 7,888 74,083

Renters

Under $15,000 1,460 933 4,921 7,314 1,613 1,096 6,973 9,682 1,577 1,109 6,943 9,629

$15,000–29,999 2,369 3,218 2,101 7,688 2,283 3,921 3,352 9,555 2,189 3,851 3,517 9,557

$30,000–44,999 4,134 2,098 321 6,553 3,958 2,680 683 7,321 3,821 2,859 732 7,412

$45,000–74,999 7,390 900 102 8,392 6,754 1,504 197 8,455 6,880 1,652 211 8,743

$75,000 and Over 6,304 186 12 6,502 6,986 349 10 7,345 7,437 383 16 7,835

Total 21,658 7,335 7,457 36,450 21,593 9,549 11,216 42,358 21,905 9,854 11,418 43,176

All Households

Under $15,000 2,469 1,788 7,604 11,861 2,533 1,977 10,411 14,921 2,448 1,982 10,339 14,769

$15,000–29,999 6,683 5,021 3,918 15,622 6,608 6,141 5,672 18,421 6,350 6,078 5,812 18,241

$30,000–44,999 9,846 4,135 1,311 15,292 9,977 5,072 1,881 16,930 9,778 5,227 1,883 16,889

$45,000–74,999 20,490 4,193 825 25,508 19,933 4,587 1,013 25,534 20,096 4,668 975 25,739

$75,000 and Over 35,402 2,468 284 38,153 37,597 2,568 320 40,485 38,834 2,491 297 41,622

Total 74,889 17,605 13,942 106,436 76,648 20,345 19,297 116,291 77,507 20,447 19,306 117,259

Notes: Moderate (severe) burdens are defined as housing costs of more than 30% and up to 50% (more than 50%) of household income. Households with zero or negative income are assumed to be severely burdened, while renters paying no cash rent are assumed to be unburdened. Income cutoffs are adjusted to 2014 dollars by the CPI-U for All Items. Source: JCHS tabulations of US Census Bureau, American Community Surveys.

 

 

For additional copies, please contact

Joint Center for Housing Studies of Harvard University

One Bow Street, Suite 400

Cambridge, MA 02138

www.jchs.harvard.edu

twitter: @Harvard_JCHS

The Joint Center for Housing Studies of Harvard University advances understanding of housing issues and informs policy. Through its research, education, and public outreach programs, the center helps leaders in government, business, and the civic sectors make decisions that effectively address the needs of cities and communities. Through graduate and executive courses, as well as fellowships and internship opportunities, the Joint Center also trains and inspires the next generation of housing leaders.

STAFF

Kermit Baker

Pamela Baldwin

Heidi Carrell

James Chaknis

Matthew Curtin

Angela Flynn

Christopher Herbert

Jessica Jean-Francois

Elizabeth La Jeunesse

Mary Lancaster

Irene Lew

Ellen Marya

Sonali Mathur

Daniel McCue

Jennifer Molinsky

Shannon Rieger

Jonathan Spader

Alexander von Hoffman

Abbe Will

Georgia Williams

FELLOWS

Barbara Alexander

William Apgar

Michael Berman

Rachel Bratt

Michael Carliner

Kent Colton

Daniel Fulton

Aaron Gornstein

George Masnick

Shekar Narasimhan

Nicolas Retsinas

Mark Richardson

EDITOR

Marcia Fernald

DESIGNER

John Skurchak

 

 

Joint Center for Housing Studies of Harvard University

FIVE DECADES OF HOUSING RESEARCH SINCE 1959

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