ARYNE + DULCINEA WITH LIVING ROOM REALTY EARTH ADVANTAGE BROKERS + ADU CERTIFIED SPECIALISTS

Transcription

1 The Market for ADUs

2 ARYNE + DULCINEA WITH LIVING ROOM REALTY EARTH ADVANTAGE BROKERS + ADU CERTIFIED SPECIALISTS

3 Northwest Economic Research Center College of Urban and Public Affairs What Role do ADUs play in the Real Estate Market?

4 Portland s Affordability Crisis Fast growth -> Affordability Issues Portland City Council declared a housing emergency October 2015 Many policies adopted/discussed Inclusionary Zoning Landlord Restrictions and Moving Fees Rent Control? So can ADUs do anything to help? 12/6/2017 4

5 Fundamental House Price Index, Portland MSA Index, Monthly, January 1990 June Fundamental HPI Real Case-Shiller HPI Overvalued Undervalued 40 12/6/2017 5

6 Causes of the Affordability Crisis Remember, affordability accounts for housing prices and incomes Distribution of incomes Rising house prices Population growth Rising incomes Low inventories

7 Causes of the Affordability Crisis Remember, affordability accounts for housing prices and incomes Distribution of incomes Rising house prices Population growth Rising incomes Low inventories

8 Determining ADUs affordability affect Using survey data: Compare the $/sf for ADUs and small single family homes by neighborhood Test to see if incomes are higher/lower for ADU occupants 12/6/2017 8

9 Questions: Short-term Rentals How prevalent is this usage? DEQ survey found 5%, back in 2013 Airbnb chimes in (incomes!) Good investments or affordable? 12/6/2017 9

10 Questions: Neighborhood Effects? Source Greater Portland Pulse (GPP) Housing Data Hub 12/6/

11 Portland MSA Total Residential Inventory January 2003 September 2017, SA 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 Pre-crisis Low 2, Source: RMLS Market Action Report 12/6/

12 Thank you!

13 ADU Survey Build Small Live Large Conference 2017

14 Goals of the survey Learning about uses of ADUs in Portland Learning about financing and building of ADUs in Portland. Learning about use of shared spaces and amenities between owners and tenants. Identifying barriers to building ADUs Identifying success in planning, financing and managing ADUs Build Small Live Large Conference 2017

15 Sample size (as of 10/31/17) Status % Count Owner of an ADU 58% 244 Live in an ADU 33% 140 Owner who lives in an ADU 9% 39 Total 100% 423

16 60% 50% 50% of residents are Age 40% 30% 56% of owners are % of owner/ residents are % % 0% Owner of an ADU Live in an ADU Owner who lives in an ADU

17 30% 25% 49% of owners earn $100, % of residents earn <$59,000 Household Income 20% 15% 10% $0-$39,999 $40,000-$59,999 $60,000-$79,999 $80,000-$99,999 $100,000-$149,999 Over $150,000 5% 0% Owner of an ADU Live in an ADU Owner who lives in an ADU

18 ADU Type Attached new construction Detached new structure Detached rennovation Basement renovation Garage renovation

19 Current Use of ADU Short-term rental (29%) Primary residence owner (14%) Extra room or workspace (6%) Primary residence not owner (51%)

20 Owner-Tenant Relationship Friend (10%) Acquaintance (8%) Family member (43%) Didn t know each other (41%)

21 Prior Use of ADU Short-term rental (20%) Extra room or workspace (23%) Primary residence family/friend (23%) Primary residence owner (11%) Primary residence rental (23%)

22 Short-term rental (23%) Planned Use of ADU Extra room or workspace (10%) Primary residence owner (11%) Primary residence family/friend (25%) Primary residence rental (31%)

23 Number of Days/Year as Short-Term Rental 0-7 days 8-29 days days More than 90 days I prefer no to answer 0% 10% 20% 30% 40% 50% 60% 70%

24 Residence if not in ADU Owner who lives in an ADU 10% 5% Live in an ADU 14% 3% 56% 28% 82% 3%

25 Reasons for Choosing to Live in an ADU Owner who lives in an ADU Live in an ADU 24% 12% 1% 1% 8% 10% 21% 10% 1% 1% 7% 9% 13% 1% 32% 9% 25%

26 80% 70% Cars 70% 60% 56% 54% 50% 40% 42% 38% No car 1 car 30% 2+ cars 20% 15% 15% 10% 0% 2% Owner of an ADU Live in an ADU Owner who lives in an ADU 8%

27 80% Parking 70% 67% 60% 59% 50% 46% 46% 40% 30% 34% 27% On the street Garage or driveway Both 20% 10% 7% 6% 8% 0% Owner of an ADU Live in an ADU Owner who lives in an ADU

28 60% Neighborhood Tenure 50% 40% 30% 20% Under 1 year 1-3 years 3-5 years 6-10 years Over 10 years 10% 0% Owner of an ADU Live in an ADU Owner who lives in an ADU