A demographic study of the City of Newark as well as the Corinthian target area was conducted to identify key individual and household characteristics. We chose demographics which affect housing such as household types, sizes, and income. These are good indicators of the types of housing needed and the housing costs in the community. We also researched housing stock characteristics in the target area to see how Corinthian Homes fits within its neighborhood in terms of housing types and conditions.

The data for this section relies heavily on 1990 Census information retrieved from the Census Bureau’s Internet site. Our survey results indicate most of Corinthian’s target population lives in Newark. For this reason, our demographic study focuses on Newark and the Corinthian neighborhood to determine housing demand.

Corinthian’s West Side Park neighborhood is a 96-block area, mainly in the Central Ward of Newark. Nationally, many urban centers are dealing with issues of poverty and inadequate housing. Corinthian’s target neighborhood however, is an extreme example. Newark has a population of 275,221, which makes up about 35% of Essex County’s total population. Corinthian’s study area has a population of about 36,970. City-wide, African-Americans make-up 58% of the population, in the study area they make-up 90%. Another significant demographic is educational attainment. In Newark and the Corinthian area the rate of non-completion of high school was nearly the same, 48% and 49% respectively.

The low-educational attainment may partly explain low-income levels in the area. Newark’s per capita income is $9,424; the neighborhood’s is $6,777. The median household income for Newark is $21,650, for the study area it is $14,350. A large segment of Newark’s population is dependent on some form of government assistance, 24% is dependent on social security and 22% on public assistance. In the neighborhood 25% of the population depends on social security and 32% relies on public assistance. Newark’s poverty rate is 25.7% while in the Corinthian neighborhood the poverty rate is 44%. These discouraging income and poverty figures translate to discouraging housing figures. Newark’s issues of poverty, low educational attainment, and racial segregation are present in the Central Ward.

The three most common family household types Citywide are: traditional married-couple families with children (17%), married-couple families without children (17%), and female-headed households with children and no husband present (17%). Thirty-percent of households however, are non-family households. Non-family households are nontraditional housing units, usually comprised of individuals not related by blood. In the Corinthian neighborhood 8.5% of households are married-couple families with children and 11% are married-couple families with no children. Twenty-eight percent of households are female headed with children and no husband present. And, 31% of households are non-family households. In the Corinthian neighborhood the average household size is 3.18 persons.

To summarize, the Corinthian study area faces many of the same issues as the City of Newark, except at a magnified level. Corinthian’s target area is isolated educationally, racially, and economically. Median and per-capita income are much lower than the City’s already-low numbers. Furthermore, a large segment of the target area’s population is dependent on public assistance. In addition, a third of the area’s households are nontraditional non-family households which complicate housing demand. Almost a third of all households in the study area are female-headed households with children and no husband. For Corinthian, this means its target area is populated with individuals and families with many barriers to finding affordable and appropriate housing.

Nineteen-ninety Census data also sheds light on the condition of the housing stock in Corinthian’s target area. Newark has a home ownership rate of 23% and a vacancy rate of 11%; in the Corinthian neighborhood the home ownership rate is 15%. The neighborhood’s vacancy rate (20%) is almost double that of Newark. In Newark the median rent is $385 and the median owner-occupied housing value is $110,000. In the study area the median gross rent is $353 and the median owner-occupied housing value is $71,100. Therefore, the housing conditions in the Corinthian target area are worse than Newark’s. For context, however, it is important to note that Newark already lags the country in housing characteristics. The national home-ownership rate in 1990 was 65.4% and the vacancy rate was 7.7% for rental housing (Census, 1990). The City of Newark as a whole, and the Corinthian target area especially, lag substantially behind national figures.

Despite the high vacancy rate in the target area, there is a high housing demand. This is largely due to the bad condition of many properties in the community. Looking around the Corinthian target area, the large number of vacant lots are hard to miss. This is largely explained by the high demolition rate in the City since 1970. According to 1990 Census, Newark’s housing units totaled 102,453, an 18% decrease from the 1970 total of 124,891.

Although Newark has experienced a population decrease it still has a high demand for decent and affordable housing. According to the 1990 Census, almost half (48%) of households in Newark pay over half of their income toward rent. Nationally HUD recommends households pay not more than 30% of their income toward rent. This shows that despite the high vacancy rate there is a serious gap in the provision of housing to low-income individuals and households in Newark. In Newark’s 1995 Consolidated Plan, HUD made a number of recommendations; among them are to increase affordable housing and access to home improvement opportunities. According to the 1995 Consolidated Plan between the years of 1995-1999, Newark will have a total housing demand of 6,000 units. Although the number of affordable units is not explicitly stated it can be assumed that based on Newark’s median income level, most of the 6,000 demanded units will be for affordable housing.

Corinthian’s monthly rent levels range from $437 and $596 for two and three bedroom units, respectively. This translates to a resident’s net yearly income ranging from $17,480 to $23,840 (this is based on rent equaling 30% of income). Residents of Newark and the Corinthian neighborhood meet these income requirements. Fifty-nine percent of Newark households qualify for a two bedroom and 47.9% qualify for a three bedroom. And, 46.9% of residents in the neighborhood qualify for a two bedroom and 34% qualify for a three bedroom.

Much of Newark’s housing stock is old and in need of repair. In Corinthian’s neighborhood the median year structure was built is 1956. However, over half (56%) of all units were built prior to 1950. Almost a third (28%) were built prior to 1939. While this reflects a richness in architectural history it also implies the strong need for rehabilitation in many of the older units. This is particularly noteworthy since the target area has such a high poverty rate and most units (85%) are renter occupied, making rehabilitation more challenging.

Essex County’s 1995 Consolidated Plan further highlights many of the region’s housing needs and demands. The affordable housing market is an under-served niche in the County for two main reasons. First, the ever-increasing property taxes in Essex County add to the cost of housing. And second, many communities do not allow multifamily housing development. A strategy to address the affordable housing needs of Essex County will be difficult to implement because of its unique assortment of urban and suburban communities. However, the demand for affordable housing does exist in Essex County and it is the niche Corinthian serves. Roughly a third of all low-income households in Essex County are renters.