What Is the Average Cost of Housing in Pennsylvania?

Half of homeowners paid more than $1,384 monthly; half paid less.

According to data from the U.S. Census Bureau's 2009 American Community Survey, Pennsylvania's median home value in that year was $155,000. Among homeowners with a housing payment, the median monthly cost was $1,384, which included utilities. Renters paid a median rent of $685 per month.

Proportions

Housing shouldn't break the bank.

Experts measure housing affordability by the proportion a person pays for housing, as compared to his income. When families have a difficult time finding housing that doesn't eat up more than 30 percent of their income, policymakers say housing isn't affordable. But according to the 2009 census, 43 percent of renters and 33 percent of Pennsylvania homeowners spend more than 30 percent of their income on housing.

Geography

Housing in rural areas may be more affordable, but travel costs may be higher.

Pennsylvania is home to both rural and urban areas, and housing costs vary in these regions. In 2008 in Philadelphia, the state's largest urban center, the median home value was $130,000. Among homeowners, the median monthly cost for people with a mortgage was $1,165, a figure that includes utilities in the census data. The median cost for homeowners without a mortgage was $415. The median rent was $796. In rural Tioga County the median value of an owner occupied home was $98,000. Average monthly costs for people with a mortgage in Tioga were $1,091, and $400 for those without; the median rent was $544. When compared to monthly income, housing in rural Pennsylvania is less expensive than housing in urban areas, according to the Center for Rural Pennsylvania.

History

A dollar bought a lot more in the 1940s.

Wouldn't it be better if we could all pay 1940s-era prices---pie for a dime, coffee for a nickel? Median rent in Pennsylvania in the 1940s was about $285 per month; it dropped to $250 in the 1950s. Rent exceeded $400 per month in the 1970s and hit $516 in 1990. Homes were less expensive, too. In the 1940s, the median price for a house in Pennsylvania was about $33,000. By 2000, that number hit $95,000.

Resources

Families in search of affordable housing can use the Internet to find resources.

Pennsylvania has plenty of resources for people in search of affordable housing. The Pennsylvania Association of Realtors has a handy map of agencies that help people find affordable housing (see Resources). Once on the site, click "Consumer Resources," then "Affordable Housing." The Pennsylvania Housing Finance Agency has also developed the Pennsylvania Affordable Housing locator at pal.phfa.org.

A Note About Math

There are many ways to calculate average. The median is most appropriate when discussing incomes and housing data.

There are several ways to indicate an "average." Most people, when they think of calculating an average, add all of the numbers in a set and then divide by the number of items. The result is called the "mean." Another average is the "median," and the census uses this figure in many of its statistics. The median means that half the numbers in the set were higher and half were lower. When the census says the median rent was $685, for example, it means that half of Pennsylvanians paid more and half paid less than the median figure. The census uses the median because using the mean can skew the average higher.

Here's an example: Imagine three houses, which cost $2, $5 and $44. To find the mean, we add those numbers, getting 51, then divide by 3 to get $17. Since there's no home worth $17 in the set, some would say that it doesn't represent reality --- the $44 house skews the numbers upward. This happens quite a bit in census figures. For every $10 million mansion, there are dozens of homes worth $75,000. But the existence of the $10 million home makes the average seem much higher. Picking the number in the middle more accurately reflects the experience of more people. In our example, the median would be $5. The median price of new homes in the U.S. in September 2010 was $223,000; the average was $257,000.

References

• U.S. Census: Median and Average Sales Prices of New Homes Sold in United States
• U.S. Census: Construction & Housing: Homeownership and Housing Costs
• Project America: Housing: Ownership: Percentage of Income
• U.S. Census: Historical Census of Housing Tables Gross Rents

Resources

• Pennsylvania Assoc. of Realtors: Affordable Housing
• Pennsylvania Housing Finance Agency: Pennsylvania Affordable Housing Locator