Aven, Heather M. Council Members,

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1 Aven, Heather M. From: CC - Shared Department Sent: Monday, June 20, :02 AM To: Aven, Heather M. Subject: FW: Comprehensive Plan Attachments: HousingPreferencesAcrossGenerationsSpecialStudy_ pdf From: Bill Henshaw [mailto:bhenshaw@windermere.com] Sent: Friday, June 17, :37 AM To: CC Shared Department <cc@cob.org> Cc: Linda T <lindat@biawc.com>; Perry Eskeridge <perrye@wcar.net>; MaryKay Robinson <mkrobinson@windermere.com> Subject: Comprehensive Plan Council Members, It is time for you to do your job, for too long, you have listened to the staff say that we don t need more land we have more than sufficient land within the City limits and besides we want growth in our Urban Villages. People would rather live close in to the City etc etc. Nothing could be farther from the truth, see article attached from the National Association of Home Builders who point out that a full 65% of each generation wants a single family home. Bellingham is in the midst of a crisis caused by the Cities refusal to date to address a housing shortage that is causing a severe shortage of median and lower priced rental units. Planning Professor Zaferatos says that Urban Villages are good for Bellingham s future. More than half of the Cities affordable housing rental inventory are projects being developed utilizing the low income tax program administered through the Washington State Housing Finance Commission and developed by non profit agencies in Bellingham including the Bellingham Housing Authority and Catholic Housing Services. He points to the fact that by his count over 1000 dwelling units have been located in our urban villages since 2006 (45%) of all housing units. Most of those units developed are subsidized housing. He speaks of how successful they have been. The success is in areas attributable to the fact that they were already being developed and the City is now them calling Urban Villages, Barkley Village, Downtown and Fairhaven. If we look at the other two Urban Villages Old Town and Samish Way, we have an entirely different perspective. In 8 years or more we have a Walgren s, a small retail shop for Cannabis, and an announced project of 154 subsidized units where the Aloha Motel used to be. That development is insufficient to support the needs of housing over the next 20 years. It is not realistic to think the we can fill our urban villages with multifamily projects. First there is insufficient tax credit money. Secondly rental rates are increasing and new non subsidized multifamily housing rental rates are averaging $1.74 per square foot. Families that cannot afford to rent, or want single family housing are forced to drive to where housing is more affordable. Transportation costs impact low income families and is the second highest expenditure after housing.. In addition, this places more of a burden on our roads and arterials and the lost time commuting. We talk about condominiums in our Urban villages however there is currently no speculative financing for condominiums aside from Washington Federal who will finance condominiums so long as they are not stacked. No other lender in Bellingham will consider a speculative condominium project above on 1

2 story. Historically, it is a well known fact that home ownership fosters people to take care of what they own. This as opposed to renters who figure the landlord will take care of the property. We just passed a rental registration bill requiring inspections on all rental units over time so we know that this is in fact true, some landlords will not take care of their properties. According to a recent study completed by the NAHB, government rules and regulations account for 24% of the cost of a new home. That coupled with the lack of available land makes it clear why the new construction activity for new affordable housing is not happening in Bellingham. This lack of concern for single family housing in Bellingham, will only become more acute. I testified on June 6th that according to your own housing study 66% of both renters and homeowners cannot afford to live in either a rental or a single family home in Bellingham as the cost of housing is from 50 to 100% of adjusted median income. We are rapidly creating a society of haves and have nots. Of course the have nots can live in all of the parks that we think we need above adequate housing. I encourage the City Council to do a complete analysis of the reasons for the lack of affordable housing. I think that after a complete review of the facts in the interests of maintaining Bellingham as a community we all can be proud of is very important. The alternative is the creation urban ghetto only available to the upper income people and all of the workers, teachers and others who provide the services are bussed in daily as is the case in Carmel CA and Key West Fla. Respectfully submitted, Bill Henshaw 2653 North Park Drive Bellingham, WA

3 Housing Preferences across Generations Special Study for HousingEconomics.com Rose Quint March 1, 2016 NAHB recently released its latest study tracking the evolution of home buyer preferences, titled Housing Preferences of the Boomer Generation: How They Compare to Other Home Buyers. The study answers key questions on how various designs influence the home purchase decision as well as the location, features and size of the home consumers want. Findings are based on a nationwide survey undertaken by NAHB s Economics and Housing Policy Group in The survey was conducted online in two phases, using a consumer research panel maintained by the Home Innovation Research Labs. The first phase used screening questions to identify recent home buyers (who purchased a home in the last three years) and prospective home buyers (those expecting to buy a home in the next three years). In the second phase, a detailed questionnaire was sent to buyers identified in phase one. The sample was carefully selected and weighted to be representative of the entire universe of home owners in the US, in terms of age, income, age, and racial/ethnic distribution. The results published in the study and presented here are based on 4,326 responses. The data were analyzed for all home buyers in general and also across generations: Millennials (born 1980 or later), Gen X ers (born ), Baby Boomers (born ), and Seniors (born 1945 or earlier). Key findings: The majority of buyers (65%) would like to buy a single-family detached home. A majority of buyers in all generations have the same preference: Millennials (68%), Gen X (72%), Boomers (63%), and Seniors (55%). Buyers expect to pay about $220,000 for their next home. Of the four generations, Gen X ers expect to pay the most: $231,600. A traditional forward mortgage is how most buyers across generations (67%) would choose to pay for a home. Buyers want a home with a median 2,020 square feet of finished area, about 9 percent larger than they have now. Millennials and Gen X ers want over 2,300 square feet; Boomers and Seniors less than 1,900 square feet.

4 Most home buyers (64%) would like a single-story home, but preference rises with age: Millennials (35%), Gen X ers (49%), Boomers (75%), and Seniors (88%). A majority of all buyers (68%) want the washer and dryer on the first floor of the home. 58% of home buyers want a full or partial basement, but the preference declines with age: from 77% of Millennials to 43% of Seniors. About half of all buyers want a home with three bedrooms, but 30% want at least four. Over 40% of Millennials and Gen X ers want the latter, compared to only 20% of Boomers and Seniors.

5 Of more than 150 home and community features rated as essential/must have, desirable, indifferent, or do not want, 13 are wanted (i.e. rated essential or desirable) by 80 percent or more of home buyers. This Most Wanted list shows buyers remain focused on features that will help them save energy and keep the home organized. ENERGY STAR appliances and windows, insulation higher than required by code, a laundry room, garage storage, and a walk-in pantry are features the vast majority of buyers want. Also very influential in most buyers purchase decision are exterior lighting, a patio, a full bath on the main level, and hardwood on the main level of the home.

6 In the kitchen, about 80 percent of buyers consider a double sink, table space for eating, and a walk-in pantry essential or desirable. Two bathroom features are wanted by at least three-quarters of all buyers: having both a shower and a tub as well as a linen closet in the master bath. The top three most wanted types of windows are ENERGY STAR, triple-pane, and low-e. The two most popular exterior material for the front side of the home are brick and stone, as roughly 70% of buyers rated them essential/desirable. There are some similarities and some differences in the Most Wanted List across generations. For example, the laundry room is key to all home buyers, ranking as the first most wanted feature among Millennials, Gen X ers, and Seniors, and third among Boomers. Exterior lighting and ceiling fans are also important to all buyers, appearing on the top list of all generations. Interestingly, Energy Star rated appliances are popular among all groups, but Millennials rank it as 10 th most wanted, whereas Gen X ers, Boomers, and Seniors rank it first or second. Millennials are the only generation to have three outdoor spaces in their most wanted list : a deck, a patio, and a front porch. The deck does not appear in the top list for the other three generations, while the front porch falls out of the top 10 for Boomers and Seniors.

7 Unlike Millennials, Gen X ers, Boomers, and Seniors also place an Energy Star rating for the whole home and for the windows on their most wanted lists. Features Most Wanted by Generation Millennials Gen X Baby Boomers Seniors Laundry room Laundry room ENERGY STAR rated Laundry room appliances Exterior lighting ENERGY STAR rated appliances ENERGY STAR rating for whole home ENERGY STAR rated appliances Living room Exterior lighting Laundry room Exterior lighting Patio Front porch ENERGY STAR rating for whole home ENERGY STAR rated Windows ENERGY STAR rated Windows Exterior lighting ENERGY STAR rating for whole home A full bath on the main level Both shower stall & Ceiling fan A full bath on the Table space for eating tub in master bath main level in kitchen Ceiling fan Front porch Ceiling fan Ceiling fan Hardwood on main floor Hardwood on main floor Insulation higher than required by code Double kitchen sink (side-by-side) Deck Patio Patio ENERGY STAR rated Windows ENERGY STAR rated appliances/dining room Living room Hardwood on main floor Insulation higher than required by code Understanding what features are best not to include in a typical home is also critical. In all, 12 of the 150+ features were rated as do not want (i.e. not likely to buy a home if feature is included) by more than 40% of all buyers, led by an elevator, a pet washing station, and a wine cellar.

8 The elevator is unpopular with all generations. In fact all, except Seniors, rate it as the most unwanted of all home features. For the oldest cohort, it is third on that list, after a daycare center and a pet washing station. Other features rejected by a significant share of buyers in all age groups include a golf course community, cork flooring on the main level, a wine cellar, and the pet washing station. A high density community (smaller lots and/or multifamily/attached buildings) also appears in the top 10 most unwanted lists for Millennials, Gen X ers, and Baby Boomers. Seniors are more likely to reject baseball or soccer fields instead. Interestingly, two story foyers and family rooms are more likely to be rejected by older buyers than younger ones: both of these features appear on the most unwanted lists for Boomers and Seniors, but not for Millennials or Gen X ers.

9 Features Most Unwanted by Generation Millennials Gen X Baby Boomers Seniors Elevator Elevator Elevator Daycare center Golf course Golf course Daycare center Pet washing station High density Pet washing station Pet washing station Elevator community Pet washing station Wine cellar Wine cellar Wine cellar Cork flooring on main level Only a shower stall in master bath High density community Cork flooring on main level Golf course Two story family room Wine cellar Daycare center Dual toilets in master bath Laminate countertops Laminate High density community in kitchen countertop in kitchen Dual toilets in master Dual toilets in Wet bar bath His & Her baths master bath Only a shower stall in master bath Cork flooring on main level/two story entry foyer Golf course Two story family room Cork flooring on main level Baseball or soccer fields Two story entry foyer Game room Except for programmable thermostats, few buyers currently have the home technology features many of them desire. A wireless home security system, for example, is something more than 50 percent of buyers would like to have, but fewer than 20 percent currently do. There are similar gaps between desire and reality for security cameras and energy management systems, among other features. 37% of home buyers say they would be willing to buy a home without a living room, but the share declines with age, from 43% of Millennials to 26% of Seniors. Only 14% of buyers are willing to pay more for a home out of pure concern for the environment. However, home buyers will pay more for a home if they can get lower utility costs in return. On average, they will pay an additional $10,732 up front to save $1,000 a year in utilities.

10 Of 19 community features home buyers were asked about, a typical suburban neighborhood with only single-family detached homes was the most wanted, rated essential/desirable by 72%. Over 50% would be positively influenced by the presence of a park area, being near retail space, walking/jogging trials, and a lake. The buyer s spouse/partner is the most influential person on the selection of a specific home, as well as on the location, timing and method of financing. Additional Information about the Study The complete study discusses the results in more detail, including many more features and designs not addressed in this paper. An extensive section of tables shows how home buyers answered every question, along with a detailed breakdown for Millennials, Gen X ers, Baby Boomers, and Seniors.