The FWD #B18 • 689 Words
Where we work can matter just as much as where we live.
The jobs-housing balance is like the Goldilocks of urban planning— we’re all searching for that “just right” mix. But what exactly are we measuring, and how do we know when we’ve found it? And perhaps most importantly, why are we doing this in the first place?
Measures and methods
1. Simple ratio – Jobs divided by housing units
Easy to calculate and understand, this basic metric is a common choice for quick assessments and high-level planning discussions. Data is readily available from various Census and BLS products, but can be further refined with accurate figures from state and local sources. However, this ratio doesn’t account for housing types or job characteristics, which can lead to oversimplified findings.
Suggested target: Between 1.3 and 1.7 jobs per housing unit (Ewing, 1996)
2. Employed residents ratio – Jobs divided by working population
This method refines the simple ratio by dividing the number of jobs by the number of employed residents. It accounts for unemployment and multi-worker households, providing a more nuanced view of the local employment landscape. However, it still doesn’t consider commute patterns or potential mismatches between job skills and available positions.
Suggested target: Between 0.8 and 1.25 jobs per employed resident (Cervero, 1996)
3. Commute flow balance – Inbound minus outbound commuters
This approach directly measures commuting imbalances by subtracting outbound commuters from inbound commuters. It provides a clear picture of whether an area is a net importer or exporter of workers, but doesn’t account for telecommuting or non-work trips. The Census Bureau’s Longitudinal Employer–Household Dynamics Origin–Destination Employment Statistics (LODES) dataset is the most comprehensive source for this information. You can use their OnTheMap tool to visualize commute flows for your community.
Suggested target: Within ±10% of zero (Cervero, 1996)
4. Jobs-housing fit – Wages of local jobs compared to housing costs
This more sophisticated method compares the wages of local jobs to housing costs, addressing both affordability and job-skill alignment. While it provides valuable insights into whether local workers can afford to live near their jobs, it requires detailed wage and housing data that may not always align for a given geography or time period. Nevertheless, this analysis has great utility for policymakers and advocates alike— making it a staple component of most housing studies conducted across Virginia.
Suggested target: Median wage earner can afford median rent or sales price without cost burden
Finding the right scale
The choice of geographic scale for jobs-housing balance analysis can significantly impact the results and their relevance to policy decisions. Here’s how different levels compare:
Neighborhood level: Useful for fine-grained analysis, such as assessing the impact of a new housing development or employment center. However, it may overemphasize small imbalances that are easily resolved at a slightly larger scale.
City or county level: Helps inform municipal policies on zoning, housing development, and economic incentives. It’s particularly useful for localities looking to reduce cross-border commuting and increase their tax base.
Regional level: Best for understanding broader economic patterns and commute sheds. This scale is crucial for coordinating transportation investments and regional economic development strategies.
Balancing act
Of course, no single measure can tell the whole story. And while more ample job and housing opportunities have a host of benefits, they aren’t a surefire guarantee that traffic and commuting times fall overnight.
The real value of these metrics isn’t in hitting a perfect number, but in tracking trends over time and comparing across areas to inform policy decisions. As we look to create more sustainable, equitable communities, keeping an eye on the jobs-housing balance — in all its forms — can help guide the way.
In the end, the jobs-housing balance isn’t just about numbers. It’s about creating communities where people can live, work, and thrive without spending half their waking hours stuck in traffic. Now that’s a balance worth striving for.
Learn more
Understanding the Jobs-Affordable Housing Balance in the Richmond Region
VCU Center for Urban and Regional Analysis (2017)
Jobs-Housing Ratios: National Perspectives and Regional and Local Benchmarks
Fairfax County Department of Planning and Zoning (2012)
Jobs-Housing Balance
American Planning Association (2003)