115
of occupancy, 70 (19%) are considered owneroccupied units and 292 (81%) rental units.
Data for the value ratio index was obtained
from the St. Cloud City Assessor’s Office. The
database contains all the necessary property
information for the creation of the index. An
external variable for this index was the average
price per square foot for new construction. In this
case, the number used was that provided by the
US Census report: Highlights of Annual 2017
Characteristics of New Housing (2017).
9.3.1 Composite Indicators
Value Ratio Index
Following Smith’s (2003) proposal, the value
ratio index can be summarized as:
Value ratio index = Current unit value/unit
value new
where:
Current unit value = Assessed value of the
building
Unit value new = Construction cost (per sq.
ft.) × building area of unit (sq. ft.)
Housing Quality Index
The housing quality composite indicator was created by using eight out of the ten physical exterior dimensions assessed with the survey. The
other two dimensions were not present in most of
the assessed housing units (chimneys and
detached garages). Considering these dimensions
would mean that the index would be calculated
for only half of the housing units in the area, limiting the analysis.
7
Figure 9.2 shows a summary
of the dimensions and the proportion of housing
units considered adequate and inadequate.
8
The
7 Imputation is an alternative in the absence of missing
indicators. This methodological procedure was not considered due to the aim of creating an index that could be
easily replicated by the organization.
8 The survey contained a Likert scale for the ten dimensions. The values were 1, deteriorated; 2, poor; 3, average;
4, good; and 5, excellent conditions. For the purposes of
creating a simple index, these categories were transformed
into only two: inadequate and adequate. 1 and 2
scores inadequate and 3, 4, and 5 adequate.
index was created using a simple linear aggregation approach. For each adequate dimension,
every dwelling unit is scored with 1 and the
dimensions with inadequate a 0:
Housing quality index = D1 + D2 + D3 + D4
+ D5 + D6 + D7 + D8
Table 9.1 summarizes the proportion of units
according to the index scores. The interpretation
is straightforward, 0 meaning the unit does not
have any dimensions that have an adequate score
(passing rate) and 8 meaning that the unit has an
adequate score in all eight dimensions.
A fundamental assumption in the creation of
the housing quality index was the specification of
when a unit starts to be considered overall inadequate. For this purpose, the number of housing
units obtained by the value ratio index was considered as a threshold. According to Smith
(2003), units in need of rehabilitation started to
appear when the index fall below 0.45. Following
this assumption, different scenarios were run
together with the value ratio indicator to see at
what specific point units for the housing quality
index could be considered inadequate. The
threshold in this case was all units with an index
score of 6 and lower (this means 6 or less dimensions with an adequate score). This threshold
happens to be in line with what the neighborhood
considered a reasonable limit to define adequate
and inadequate housing.
9.4
Results and Analysis
Because of the interest in knowing not only the
number of housing units in need of rehabilitation
but also how these are distributed according to
type and occupancy, the results presented considered this disaggregation in its analysis. For the
housing quality index, only 345 out of 364 dwellings units had a score in all eight dimensions;
therefore, an index score was calculated for all of
them. In terms of occupancy, 225 (76%) are
rental properties and only 70 (24%) owneroccupied.
9
Regarding the type of housing units,
9 An assumption to classify owner-occupied units was to
define in this way those cases claiming homestead tax
9 Helping the Neighborhood: Creating a Sustainability Indicator of Substandard Housing
of occupancy, 70 (19%) are considered owneroccupied units and 292 (81%) rental units.
Data for the value ratio index was obtained
from the St. Cloud City Assessor’s Office. The
database contains all the necessary property
information for the creation of the index. An
external variable for this index was the average
price per square foot for new construction. In this
case, the number used was that provided by the
US Census report: Highlights of Annual 2017
Characteristics of New Housing (2017).
9.3.1 Composite Indicators
Value Ratio Index
Following Smith’s (2003) proposal, the value
ratio index can be summarized as:
Value ratio index = Current unit value/unit
value new
where:
Current unit value = Assessed value of the
building
Unit value new = Construction cost (per sq.
ft.) × building area of unit (sq. ft.)
Housing Quality Index
The housing quality composite indicator was created by using eight out of the ten physical exterior dimensions assessed with the survey. The
other two dimensions were not present in most of
the assessed housing units (chimneys and
detached garages). Considering these dimensions
would mean that the index would be calculated
for only half of the housing units in the area, limiting the analysis.
7
Figure 9.2 shows a summary
of the dimensions and the proportion of housing
units considered adequate and inadequate.
8
The
7 Imputation is an alternative in the absence of missing
indicators. This methodological procedure was not considered due to the aim of creating an index that could be
easily replicated by the organization.
8 The survey contained a Likert scale for the ten dimensions. The values were 1, deteriorated; 2, poor; 3, average;
4, good; and 5, excellent conditions. For the purposes of
creating a simple index, these categories were transformed
into only two: inadequate and adequate. 1 and 2
scores inadequate and 3, 4, and 5 adequate.
index was created using a simple linear aggregation approach. For each adequate dimension,
every dwelling unit is scored with 1 and the
dimensions with inadequate a 0:
Housing quality index = D1 + D2 + D3 + D4
+ D5 + D6 + D7 + D8
Table 9.1 summarizes the proportion of units
according to the index scores. The interpretation
is straightforward, 0 meaning the unit does not
have any dimensions that have an adequate score
(passing rate) and 8 meaning that the unit has an
adequate score in all eight dimensions.
A fundamental assumption in the creation of
the housing quality index was the specification of
when a unit starts to be considered overall inadequate. For this purpose, the number of housing
units obtained by the value ratio index was considered as a threshold. According to Smith
(2003), units in need of rehabilitation started to
appear when the index fall below 0.45. Following
this assumption, different scenarios were run
together with the value ratio indicator to see at
what specific point units for the housing quality
index could be considered inadequate. The
threshold in this case was all units with an index
score of 6 and lower (this means 6 or less dimensions with an adequate score). This threshold
happens to be in line with what the neighborhood
considered a reasonable limit to define adequate
and inadequate housing.
9.4
Results and Analysis
Because of the interest in knowing not only the
number of housing units in need of rehabilitation
but also how these are distributed according to
type and occupancy, the results presented considered this disaggregation in its analysis. For the
housing quality index, only 345 out of 364 dwellings units had a score in all eight dimensions;
therefore, an index score was calculated for all of
them. In terms of occupancy, 225 (76%) are
rental properties and only 70 (24%) owneroccupied.
9
Regarding the type of housing units,
9 An assumption to classify owner-occupied units was to
define in this way those cases claiming homestead tax
9 Helping the Neighborhood: Creating a Sustainability Indicator of Substandard Housing