White and Asian families can afford significantly more housing than other demographic
classes in the County, with the median income for Whites nearly double that of Black or
African-American or Hispanic households. Asian households are the highest-earning
households in Lake County. This data, used when analyzing the rental and sales
(ownership) costs that follow, is indicative of the ownership and rental trends presented
earlier in this document: a larger majority of White and Asian households can afford
homeownership, as compared to Black or African-Americans or Hispanic households.
Rental Housing
The following analysis of 2012 contract rent was calculated using American Community
Survey data. Although the American Community Survey is the most readily available
source for rental data in all communities, the data do not fully reflect current housing
market realities. This is in part because the American Community Survey rent figures do
not account for the difference in “new” rents, meaning rents that were established for a
household residing in a unit one year or less, versus those with lease renewals that are
usually renewed at below market increases. Some Lake County communities,
especially those with a higher percentage of minority populations and rental housing
stock, have a correlating lower rate of occupancy beyond one year. The following table
denotes the one-year occupancy totals for Consortium municipalities that also carry a
majority of minority households.
Exhibit III-42.
Length of Time in Housing Unit
Municipality
North Chicago
Waukegan
Lake County Average
Percentage living in same
housing unit one year or more
56.9%
84.1%
87.9%
Source: American Community Survey, 5-Year Estimates.
Currently, market rents in Lake County and the surrounding region are lower than other
major metropolitan markets and even the minimum rent for some federal programs. The
table on the next page identifies the Lake County average monthly rents and the
correlating percentage of rent basis.
At incomes at or above their 2012 median incomes, White and Asian households can
afford nearly 100 percent of the rental units in Lake County. At incomes at or above
their 2012 median incomes, Black or African-American households and Hispanic
57
APPLIED REAL ESTATE ANALYSIS, INC.
LAKE COUNTY, ILLINOIS