Enterprise Balanced Scorecard KPI Executive Team Summary
Name of Key Performance Indicator (KPI):
Workforce Housing Affordability Index
Mary Beth Humphreys; 915-8780
This index compares the mean wage for 18 selected industries to the income needed to afford mortgage costs
for a median-priced single family home. The house is considered affordable if total housing costs are no more
than 33% of income. The index is a ratio: the buying power of an industry's annual wage divided by the median
sales price of single family homes in Sarasota County.
The index = Buying Power of an industry's annual wage / Median sales price of single family homes
The higher the index value, the higher the income for that industry relative to the housing cost and the more
affordable the housing:
An index value of 1 means that someone with that wage would pay exactly 33% of income for mortgage
costs on a median-priced single family home.
An index value greater than 1 means that someone with that wage would pay less than 33% of income
for mortgage costs; i.e., the house would be more affordable.
An index value below 1 means that someone with that wage would pay more than 33% of income for
mortgage costs. A median-priced single-family home would not be considered affordable for someone
with this wage.
The annual wage is determined by multiplying the hourly wage by 2000 hours.
For example, suppose Industry A has an index of .88, Industry B has an index of 1.00, and Industry C has an
index of 2.00. A median-priced single family home would be affordable for Industry B and highly affordable
for Industry C, but someone earning Industry A's wage would pay too much for the house.
Balanced Scorecard Perspective: Community
Board of County Commissioner Goal: Promote Economic Development
Objective: Increase Supply of Affordable Housing
Does the KPI contain multiple measures? Yes
1. Buying Power of Mean Income in 18 industries
Why this measure? This measure translates an individual’s wage into a figure that represents that
individual’s buying power as it relates to housing. It answers the question, “How much house can a
person buy if he earns X?”
What decisions can be made off the data collected? Are the industries with a significant presence in
Sarasota County paying a wage that adequately covers the cost of living in this community? Are we
focusing our economic development energy and dollars in the right areas?
2. Median Price of for-sale housing within Sarasota County
Why this measure? Track housing cost to determine impact on local economy, tax revenue, economic
development and affordable housing programs.
What decisions can be made off the data collected? Affordable housing program modification regarding
property value. Are all affordable housing programs making a difference in the effort to increase the