DOWNTOWN SPECIFIC PLAN

Transcription

1 DOWNTOWN SPECIFIC PLAN

2 AGENDA OVERVIEW Goals & Objectives Opportunity Sites Market Analysis Next Steps

3 GOALS & OBJECTIVES Create a Specific Plan that paves the way for at least 10,000 places to live in the next 10 years Develop a varied housing stock that reflects the diversity of Sacramento Incentivize Transit-Oriented Development throughout downtown Sacramento including along the streetcar corridor Remove barriers to housing development by streamlining the development and environmental review process Maintain the quality of life central city residents experience and further neighborhood livability by including supporting amenities along with housing

4 OPPORTUNITY OPPORTUNITY SITES SITES MAP MAP

5 OPPORTUNITY SITE CRITERIA Vacant and under utilized sites Location in established corridors and CBD as identified in the 2035 GP for growth ¼ acre in size Considered community context Considered State ownership of land

6 MARKET ANALYSIS REVIEW

7 DEMOGRAPHIC TRENDS Very little growth since 2000 Different household characteristics Mostly smaller (1.6 persons avg.) Non-family and single person and age groups Lower income, with less equity Younger than average More single-earner households

8 DEMOGRAPHIC TRENDS Positioned for Long-term income growth High educational attainment Inflation adjusted income growth Age driven household formation Difficult to gauge depth of demand Low historic population growth Lack of new housing supply

9 DEMOGRAPHIC TRENDS Demand for low-cost rentals Smaller household sizes Lower incomes with less equity Up-market and for-sale units Demand from age group Move-ups for age group Household formation and relocation?

10 ECONOMIC TRENDS Region s most important job center 2 out of 3 jobs in Government Employment starting to diversify Business Management; Education and Healthcare; Entertainment & Recreation Mostly white collar occupations Management, Financial, Education, Legal, Community Service, Arts, and Media

11 ECONOMIC TRENDS Imbalanced commute shed 94% of workers commute in 64% of residents commute out 93.6% 100.0% 64.1% 80.0% 60.0% 40.0% 20.0% 89.2% 56.8% 0.0% In-Commuting (Workers) Out-Commuting (Residents) Source: Sacramento Area Council of Governments, 2016, BAE, 2016.

12 HOUSING SUPPLY AND AFFORDABILITY Mostly older multifamily buildings Duplex, triplex, and small apartments Shift to higher densities since 2010 Less than 10% built since 2000 Highest prices in the city/region Rapid appreciation since 2008 Good design commands a premium Rents up to 2x market average

13 HOUSING MARKET TRENDS/CHALLENGES $600,000 Median Sale Price by Neighborhood, February 2016 to July 2016 $500,000 $499K $490K $485K $476K $400,000 $360K $351K $332K $325K $314K $296K $290K $290K $300,000 $200,000 $100,000 $0 Source: Sacramento Association of Realtors, 2016, BAE, 2016.

14 HOUSING MARKET TRENDS/CHALLENGES Historic Rent and Vacancy Rate, DSP area, 2008 to 2016 YTD $2,000 $1,900 $1,800 $1,700 $1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1, % $1,311 $1, % 8.1% 6.8% 6.1% 7.5% 8.0% $1,407 $1,414 $1,430 $1,454 $1,517 $1, % $1, , YTD Average Rent Average Vacancy Rate Source: RealAnswers, 2016, BAE, % 8.0% 7.0% 6.0% 5.0% 4.0% 3.2% 3.0% 2.0% 1.0% 0.0%

15 HOUSING SUPPLY AND AFFORDABILITY Market rates affordable only at the higher income levels Market is targeting young professionals and empty nesters Urban experience Lock and leave convenience Absence of families with children

16 HOUSING SUPPLY AND AFFORDABILITY High risk of displacement 53% low income Excessive cost burdens Need to provide a variety of housing options/types Affordable at all income levels Construction cost constraints

17 FUTURE DEVELOPMENT Pipeline exceeds 2026 projections Almost 13,500 new units Mostly market rate/mixed-use Units in adjacent neighborhoods Offering greater affordability Limits to market rate affordability Mixed-income strategies for Township 9 and the Railyards

18 CHALLENGES TO INFILL DEVELOPMENT More complex, time consuming, and expensive than greenfield Higher prices needed to offset costs Prices dictated by local market; costs have regional influences Competition with Bay Area for labor Infrastructure can be a constraint Home prices don t justify for-sale

19 PEER CITY RESEARCH Denver; Long Beach; Minneapolis; Nashville; and Portland Demand driven by job growth Small studios and one-bedrooms High-end rentals with amenities Gentrification and displacement Loss of market rate affordable High transportation costs

20 PEER CITY RESEARCH Coordinate with regional planning Focus demand with growth controls Innovative regulatory frameworks Height and density bonuses Design oriented regulations Inclusionary housing requirements Amenities and cultural assets Invest in local and regional transit

21 STRATEGIC NEEDS Diverse housing types affordable to all incomes Draw demand from a broad base Develop amenities, including recreation and cultural venues Add value for residents and businesses Mitigate infrastructure constraints Ensure permitting capacity Provide certainty and efficiency

22 NEXT STEPS Technical Analysis Second Stakeholder Meetings/Online Engagement Spring 2017 Commission/Council Workshops Plan Adoption (early 2018)

23 For more information