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Appendix E: Affordability and Displacement Everett Housing Action Plan E-2 “moderate income” if their income is between 100 and 150% AMI. However, for this assessment the statistics reported will be based on the general standard. Housing Cost Burden. While AMI provides an understanding of the general financial resources that households have available, the actual amount that households pay for housing can be important as well. Generally, it is assumed that households paying 30% of their income or more on housing are “housing cost burdened”, meaning that housing costs are taking up a disproportionate amount of their income, leaving fewer resources for other needs, such as transportation, food, and healthcare. Households paying at least half of their income on housing are considered “severely cost burdened”, where housing costs may be significantly impacting a household’s ability address other needs. Overall Housing Cost and Income Trends Figure 1 provides a summary of the changes in the costs of housing and household incomes since 2010. These values have been normalized as an index for comparison, with 100 equaling the values from 2010. The most notable indicator from this graph is with respect to Everett housing values. This index, based on the Zillow Home Value Index (ZHVI), highlights that since 2010, housing prices have increased by around 81.1%, and by about 118% since the most recent bottom of the market in 2012. When compared to the increases in incomes in both the City and the broader area, housing prices have inflated much more dramatically since 2010 than the median income in Everett (59.5% increase by 2019) and the calculate AMI for the market area (32.3%). This suggests that price increases for the owner-occupied housing market in the city are significantly outpacing increases in median household income. Changes in average rent in the City have been slightly less dramatic than the price of owner-occupied housing on the market, with increases of 59.5% since 2010. There is a notable difference between AMI and rent, suggesting that there may also be the same change in affordability over time. However, the median household income in Everett as measured by the US Census Bureau’s American Community Survey has also changed at a similar rate, with an increase of 51% since 2010. Although this may suggest that rents are keeping up with household income, this situation may be more complex. With housing sale prices increasing, likely in part due to households priced out of the Seattle real estate market, this increase in the median household income may more represent an increase in household incomes for those buying homes in the community.