By Andy Sevilla.
Half of Texas households are one crisis away from slipping into poverty, that’s according to a report by the Washington D.C. –based Corporation for Enterprise Development (CFED). But a closer look at Census figures for Hays County cities show a slightly different story.
While 17.4 percent of Texas residents are below poverty level, only 8.1 percent fit that category in Kyle, and 7.5 percent in Buda. San Marcos, on the other hand, is well behind the state with 37.4 percent of its residents below poverty level, according to the U.S. Census Bureau’s latest figures. Almost in line with the state’s poverty line, Hays County, as a whole, has 16.8 percent of its residents below the poverty level.
“Despite steady job growth and low unemployment rates, many Texas residents are still struggling with persistent financial insecurity and have difficulty moving up the economic ladder,” said Tim Morstad of AARP Texas and RAISE Texas Board Chair in a statement.
Morstad said CFED’s report, 2014 Assets & Opportunity Scorecard, should call state and local policymakers to action and build on an emerging consensus to improve household financial security.
According to the report, affordable housing can be key to helping working families gain and keep financial stability. High housing costs leave little room for savings.
CFED Senior Research Manager Kasey Wiedrich said the report found that nearly half of Texas renters are what’s called “housing-cost burdened.”
“Forty-eight percent of renters are spending more than 30 percent of their income on housing costs,” Wiedrich said in a statement. “So, almost half don’t have an affordable place to live, by housing standards.”
A look at some apartments in Kyle and Buda showed that renters are paying about 30 percent or more of their income for housing.
According to the latest Census figures, Kyle’s per capita income, in 2012, is $24,608. The Settlement Apartments in Kyle offer a one-bedroom apartment for $774, according to their website, that’s just under 38 percent of the per capita income.
In Buda, per capita income was $28,834, in 2012, the Census reported. The least expensive one-bedroom apartment available in Buda cost $710 per month at Tuscany Park at Buda, renters could also choose between $810 and $825 for apartments at The Trails at Buda Ranch and Silverado Crossing, respectively, according to apartmentfinders.com.
With Buda’s numbers, a renter can expect 30-35 percent of their income expended for rent.
Wiedrich said the high cost of housing doesn’t allow for families on the edge to save for emergencies – a major contributor to Texas’ “liquid-asset poverty rate,” which is at 50 percent. Under liquid-asset poverty, households don’t have enough cash in the bank or a retirement to tap into to make it for three months at the poverty level .
San Marcos Housing Authority Director Albert Sierra said a lot families that apply for housing at his office were dedicating two weeks pay for rent in the private sector. And though public housing only charges 30 percent of a family’s income, he said some low income tax programs are still too costly for some working class families.
“When you pay two weeks of work of your salary for housing, other important things tend to fall by the wayside,” Sierra said. “You can’t afford other things like a car. Some of these folks won’t even qualify for food stamps.”
Sierra said the San Marcos Housing Authority is at about 99 percent capacity and families are continuously seeking help. “There’s just not enough affordable housing stock.”
“The long-term solution is economic development,” and workforce preparedness, he said. Individuals need education and job skills to achieve high-wage jobs.
“I know that in Kyle they brought in ACC, which is a good thing, because ultimately those individuals that go there can graduate and have the possibility of a good paying job.”
