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one method of determining how well a city is meeting its community need to provide housing <br />that is affordable to all households in a community. <br />Housing cost burden can put low-income households in vulnerable situations and force them to <br />make trade-offs between housing costs and other essentials like food, medicine, or <br />transportation. This unstable condition can also lead to rental evictions, job instability, school <br />instability for children, and homelessness. Cost burdening for owner -occupied households is <br />less common because mortgage lenders typically ensure that a household can pay its debt <br />obligations before signing off on a loan. <br />Exhibit 55 shows rates of cost <br />burden by tenure for <br />Louisville. In Louisville, 25% <br />of households are cost <br />burdened, with 14% of <br />households spending greater <br />than 30% of gross income on <br />rent and 9% spending greater <br />than 50%. Renters are much <br />more likely to be cost <br />burdened, with 41% of renter <br />households experiencing cost <br />burden, versus 16% of <br />homeowners. <br />Exhibit 56 shows rates of cost <br />burden for both Louisville <br />and Boulder County. <br />Louisville has slightly lower <br />rates of cost burden <br />compared to the County <br />overall; in Boulder County, <br />57% of renters are cost <br />burdened (versus 41% in <br />Louisville), and 22% of <br />homeowners are cost <br />burdened (versus 16% of <br />homeowners in Louisville). <br />Exhibit 55: Cost Burden, Louisville, 2021 <br />Source: ACS 5-Year Data Tables, 2017-2021 <br />50% <br />40% <br />30% <br />28% <br />20% <br />14% <br />10% 8% <br />8% 13% 9% <br />0% <br />Owners Renters Total <br />Cost burdened Severely cost burdened <br />Exhibit 56: Cost Burden Rates, Louisville and Boulder County, <br />2021 <br />Source: ACS 5-Year Data Tables, 2017-2021 <br />60°% <br />50% <br />40% afflillillillill <br />30% go <br />20% <br />� 1o°i° <br />10% 8% 25% <br />8% 13% 12% <br />0% <br />Owners Renters Owners Renters <br />Louisville Boulder County <br />Cost burdened Severely cost burdened <br />Exhibit 57 shows the change in cost burden rates in Louisville from 2011 to 2021. Rates of severe <br />cost burden decreased significantly over the time period, with a 25% decrease for renters and a <br />10% decrease for homeowners. Rates of cost burden (spending greater than 30% but less than <br />50% of household income on rent) increased slightly, with a 5% increase for renters and a 2% <br />ECONorthwest <br />45 <br />52 <br />