Small and Medium Multifamily Properties: An Underappreciated Source of Affordable Homes Enterprise Community Partners Title Date Andrew Jakabovics ajakabovics@enterprisecommunity.org March 219
Current Snapshot of Owners and Renters United States 12 million households 76.8 million owners 43.2 million renters 28.5% Low Income 19% 8-12% AMI 52.5% Over 12% AMI 6% Low Income 18% 8-12% AMI 22% Over 12% AMI 2 Source: Calculation based on 217 American Community Survey 1-Year Sample, as provided by IPUMS-USA, and HUD 217 income limits 2
Current Snapshot of Owners and Renters Connecticut 1.36 million households 9, owners 46, renters 25.9% Low Income 19.5% 8-12% AMI 54.6% Over 12% AMI 66% Low Income 16.7% 8-12% AMI 17.3% Over 12% AMI 3 Source: Calculation based on 217 American Community Survey 1-Year Sample, as provided by IPUMS-USA, and HUD 217 income limits 3
Distribution of 2-4-Unit Buildings 4 Source: ACS 29-213
Distribution of 5-19-Unit Buildings 5 Source: ACS 29-213
Connecticut United States Occupied Housing Units by Building Size Owned 88% 6% Rented 34% 7% 1% 11% 11% 9% 13% 4% Owned 89% 3% Rented 22% 15% 19% 12% 8% 9% 14% % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% Single-family 2-family 3-4 units 5-9 units 1-19 units 2-49 units 5+ units Other Source: 6 US Census, American Community Survey
Occupied Housing Units by Building Size Fairfield 65% Hartford 66% Litchfield 76% Middlesex 75% New Haven 61% New London 7% Tolland 74% Windham 72% 5, 1, 15, 2, 25, 3, 35, Single-family 2-family 3-4 units 5-9 units 1-19 units 2-49 units 5+ units Other Source: 7 US Census, American Community Survey
Rented Housing Units by Building Size Fairfield 17% 18% 9% 7% Hartford 11% 21% 12% 9% Litchfield Middlesex 1% 24% 19% 8% 13% 15% 14% 12% New Haven 16% 21% 13% 7% New London 17% 16% 13% 6% Tolland Windham 24% 7% 11% 17% 21% 4% 18% 2% 2, 4, 6, 8, 1, 12, 14, Single-family 2-family 3-4 units 5-9 units 1-19 units 2-49 units 5+ units Other Source: 8 US Census, American Community Survey
Rental Housing Ownership Patterns % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% 1 Unit 15,53 2,668 2-4 Units 2,15 36 5-24 Units 212 188 25-49 Units 28 62 5-99 Units 5 29 1-149 Units 2 1 15+ Units 2 18 Individual investor, Trustee, or Tenant in Common General Partnership or Real Estate Corporation LLP, LP or LLC REIT Thousands of Properties 9 9 Non-Profit Source: 215 Rental Housing Finance Survey Other or Not Reported
Millions Thousands Age of the Occupied Housing Stock United States Connecticut 2 35 18 3 16 14 25 12 2 1 8 15 6 1 4 2 5 <194 194s 195s 196s 197s 198s 199s 2s 21s <194 194s 195s 196s 197s 198s 199s 2s 21s Owner Occupied Rented Owner Occupied Rented Source: US Census, American Community Survey 1
Thousands Thousands Age of Connecticut s SMMF Housing Stock 2-4 Units 5-19 Units 1 3 9 8 25 7 2 6 5 15 4 3 1 2 5 1 <194 194s 195s 196s 197s 198s 199s 2s 21s <194 194s 195s 196s 197s 198s 199s 2s 21s Owner Occupied Rented Owner Occupied Rented Source: US Census, American Community Survey 11
% Units by Type of Building SMMF Ratios by Decade 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 1919 Pre- 192 193 194 195 196 197 198 199 2 21 192 Decade Unit Built 2 3 4 5-9 1-19 2-29 3-39 4-49 12 Source: AHS 213
Units Rent per Square Foot by Building Size 5+ 4-49 $1.38 $1.47 3-39 2-29 $1.1 $1.17 1-19 5-9 3-4 2 $1. $.88 $.83 $.74 1 $.58 $- $.2 $.4 $.6 $.8 $1. $1.2 $1.4 $1.6 13 Source: AHS 213
Units Median Unit Area in Square Feet 5+ 4-49 3-39 2-29 1-19 5-9 3-4 2 1 787 1,172 796 1,62 779 1,173 855 1,156 856 1,153 913 1,271 938 1,434 1,51 1,368 1,472 2,26-5 1, 1,5 2, 2,5 Rented Owned 14 Source: AHS 213
Units Median Rent per Unit 5+ 4-49 $978 $948 3-39 2-29 $86 $84 1-19 5-9 3-4 2 1 $826 $77 $765 $75 $857 $- $2 $4 $6 $8 $1, $1,2 15 Source: AHS 213
Connecticut Rent Distributions 15 1 1-family detached 5 <$2 2 4 6 8 1 12 14 16 18 2 22 24 26 28 $3+ 2 1 2-family <$2 2 4 6 8 1 12 14 16 18 2 22 24 26 28 $3+ 3 2 1 3-4 family <$2 2 4 6 8 1 12 14 16 18 2 22 24 26 28 $3+ 15 1 5 16 16 5-9 units <$2 2 4 6 8 1 12 14 16 18 2 22 24 26 28 $3+
Connecticut Rent Distributions 1 1-19 units 5 <$2 2 4 6 8 1 12 14 16 18 2 22 24 26 28 $3+ 2-49 units 1 5 <$2 2 4 6 8 1 12 14 16 18 2 22 24 26 28 $3+ 5+ units 1 5 <$2 2 4 6 8 1 12 14 16 18 2 22 24 26 28 $3+ 17 Source: 217 ACS PUMS 17
Income Distributions Median Renter Incomes County Owners Renters 1-family detached 1-family attached 2-family 3-4 family 5-9 units 1-19 units 2-49 units 5+ units Fairfield $115, $45,1 $76,6 $47, $41,6 $43, $4,3 $31, $48, $6, Hartford $92,9 $37, $51, $39, $42, $36, $3,7 $43,3 $3, $35, Litchfield $9, $38, $59,3 $59, $42, $25,9 $3, $5, $22,8 $21,5 Middlesex $1, $4,2 $47,7 $83, $24, $35, $42,4 $33,7 $28, $44,7 New Haven $92,6 $38, $5,5 $38,7 $41,6 $38,5 $36, $38, $33,6 $29,7 New London $85, $41,2 $54, $44,8 $41, $34,68 $31,2 $55, $54, $2,2 Tolland $97, $37,9 $68,5 $23, $78, $3,4 $57,2 $13,4 $44,7 $18,3 Windham $78,3 $35, $6, $15, $43, $35,4 $28, $35, $23,7 $9,8 18 Source: 217 ACS PUMS 18
Thousands Connecticut Renter Cost Burdens by Income 14 12 1 8 6 4 2 ELI (<3% AMI) VLI (3-5% AMI) LI (5-8% AMI) 8-12 AMI >=12 AMI Not cost burdened Moderately cost burdened Severely cost burdened 19 19 Source: Calculation based on 217 American Community Survey 1-Year Sample, as provided by IPUMS-USA, and HUD 217 income limits
Total Rental Units Subsidized Proportion of Total Rental Units Federally Subsidized Rental Housing Units 3,, 32% 31% 35% 2,5, 2,, 25% 3% 25% 1,5, 1,, 5, 11% 1% 9% 6% 9% 15% 12% 14% 11% 13% 16% 18% 2% 15% 1% 5% % Public Housing Voucher LIHTC and other Privately Financed Total Subsidized % 2 2 Source: AHS 213
Rents and Incomes Over Time 2% 15% 1% 5% % 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217-5% -1% -15% -2% Median Renter Income Median Gross Rent 21 21 Incomes and rents adjusted to 217 dollars by CPI-U inflator, then indexed to 21 levels.
Supply-side Challenges to Greater Affordability New Construction: Regulations (zoning process/fees, code changes, additional development requirements) Increasing costs of materials Steel +7.8%, cement +4.6%, lumber/plywood +11.1% in 217 Limited labor supply Still more than 1% below 26 peak Preservation: Hard to rehab while maintaining affordability Acquisitions have gotten more expensive Upgrades to housing quality (adding $15-$25k/unit) New building systems, in-unit improvements Comes at cost of needing to turn over units to do the work and raise rents to pay for it 22 22
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