Differences in Housing Expenditure/Income and Utility Expenditure/Income Ratios by Selected Characteristics of Rural Home Owners

Abstract

Differences in housing expenditure-to-income and utility expenditure-to-income ratios are compared among groups of rural home owners by selected socioeconomic, household, and housing characteristics. Personal interviews were conducted with 506 rural households in communities of less than 20,000 in six midwestern states. Of the 506 households interviewed, 399 were home owners. The responses of the 399 rural home owners were examined using analysis of variance with the least significant difference test. The authors found that young home owners and low-income home owners pay a higher proportion of their income for housing than other groups. Lower-income households also pay a higher percentage of income for utility costs as do one-person households. This is true for those with less than a high-school degree and those living in older, less expensive housing. The findings suggest that housing and utility expenditure, in relation to income, should be analyzed separately since different segments of the population are impacted differently. The findings also provide important information for decision-makers in the design of government and educational programs and for the lending policies of financial institutions.