Housing Affordability Metric
The housing crisis in San Luis Obispo County is more specifically a housing affordability crisis for current and future residents, as San Luis Obispo County continues to be one of the least affordable housing markets in the United States, where only 5.4 percent of households in the region can afford to purchase a median priced home (National Association of Home Builders, 2023). The housing affordability crisis is further evident by the current Regional Housing Needs Allocation (RHNA) indicating that 3,256 dwelling units need to be built in the unincorporated county by December 2028 to meet housing demand. Of the 3,256 dwelling units needed, 1,891 dwelling units (58%) need to be affordable to households of moderate income or lower in order to appropriately address the housing affordability crisis. To plan for this housing need, the County adopted the 2020-2028 Housing Element, which serves as the unincorporated county’s overarching housing plan.
Affordable housing cost is generally defined as 30% of gross income or less. Figure 1 shows housing cost affordability for San Luis Obispo County households by income category and across 5-year averages (2011-2015 and 2017-2021). Between the two time periods, when above moderate-income housing production has generally kept up with RHNA objectives but lower income housing has not, the percentage of households countywide with unaffordable housing costs (greater than 30% of household gross income) improved by 4% for moderate-income or above moderate-income households and improved by 2% for very low-income households but worsened by 14% for low-income households. Housing affordability for low-income households significantly declined compared to other income categories in the same timeframe. And in both time periods, housing costs were affordable to less than 50% of very low-income and low-income households.
Figure 2 shows the percentage of households by income category in San Luis Obispo County. 31% of households countywide are in the very low- or low-income categories. Of these households, only 25% of very low-income households and 29% of low-income households have affordable housing costs. Contrastingly, 83% of moderate- and above moderate-income households have affordable housing costs. The region’s affordable housing crisis is disproportionately impacting very low- and low-income households, despite representing nearly a third of the region’s households.
Source: 2017-2021 5-Year Average ACS Estimates for San Luis Obispo County (including cities). Note: The available data is for 80% area median income (AMI) and greater, which aggregates moderate income (81-120% AMI) and above moderate income (121% AMI and greater).
Affordable housing cost is generally defined as 30% of gross income or less. Figure 1 shows housing cost affordability for San Luis Obispo County households by income category and across 5-year averages (2011-2015 and 2017-2021). Between the two time periods, when above moderate-income housing production has generally kept up with RHNA objectives but lower income housing has not, the percentage of households countywide with unaffordable housing costs (greater than 30% of household gross income) improved by 4% for moderate-income or above moderate-income households and improved by 2% for very low-income households but worsened by 14% for low-income households. Housing affordability for low-income households significantly declined compared to other income categories in the same timeframe. And in both time periods, housing costs were affordable to less than 50% of very low-income and low-income households.
Figure 2 shows the percentage of households by income category in San Luis Obispo County. 31% of households countywide are in the very low- or low-income categories. Of these households, only 25% of very low-income households and 29% of low-income households have affordable housing costs. Contrastingly, 83% of moderate- and above moderate-income households have affordable housing costs. The region’s affordable housing crisis is disproportionately impacting very low- and low-income households, despite representing nearly a third of the region’s households.
Source: 2017-2021 5-Year Average ACS Estimates for San Luis Obispo County (including cities). Note: The available data is for 80% area median income (AMI) and greater, which aggregates moderate income (81-120% AMI) and above moderate income (121% AMI and greater).