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100% 90% cn 80% 70% 'Mn 60% 0 = 50% c 40% v 30% 20% 10% 0% Notes Figure A-44: Cost Burden Severity Pleasanton Alameda County z K Bay Area ■ 0%-30% of Income Used for Housing a30%-50% of Income Used for Housing ■ 50%+ of Income Used for Housing Not Computed Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is "select monthly owner costs", which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. HUD defines cost -burdened households as those whose monthly housing costs exceed 30% of monthly income, while severely cost -burdened households are those whose monthly housing costs exceed 50% of monthly income. Source: ABA 2021 Pre -certified Housing Needs Data (U.S. Census Bureau, American Community Survey 5 -Year Data (2015-2019), Table B25070, B25091) Renters are often more cost -burdened than owners. While the housing market has resulted in home prices increasing dramatically, homeowners often have mortgages with fixed rates, whereas renters are more likely to be impacted by market increases. When looking at the cost burden across tenure in Pleasanton, 22.6 percent of renters spend 30 to 50 percent of their income on housing compared to 13.7 percent of those that own (see Figure A-45). Additionally, 21.0 percent of renters spend 50 percent or more of their income on housing, while 9.9 percent of owners are severely cost burdened. In total, almost 24 percent of homeowners are cost burdened (4,787 households), while almost 44 percent of renters are cost burdened (3,804 households). A-52 I City of Pleasanton Housing Needs Assessment