Systems Vary, Affordability Should Not: Trends of Water Sector Affordability Based on City Attributes: Fid-Bau Portal

Systems Vary, Affordability Should Not: Trends of Water Sector Affordability Based on City Attributes

Spearing, Lauryn / Osman, Khalid K. / Faust, Kasey M. / Armanios, Daniel Erian

Population dynamics can impact water and wastewater infrastructure and lead to changes in residential water pricing. For instance, cities experiencing urban decline must fund the costs of water systems despite fewer customers. This study seeks to assess the association between water and wastewater affordability and city attributes. Statistical modeling is used to examine the link between different classifications of cities (shrinking, stabilizing, and growing) and the median affordability index (service charge as a percentage of median household income). Data for this study is from the 2016 American Water Works Association’s Water and Wastewater Rate Survey, spanning utilities in 272 North American cities. Additional data comes from publicly available sources, such as the U.S. Census Bureau. Results show that there is an association between median household affordability and city attributes, specifically, population dynamics, population density, and regional location. Both decision-makers at utilities and government organizations can use these results to inform investment decisions. For instance, utilities in growing cities may devote fewer resources to affordability programs compared to shrinking or stabilizing cities.