Summit County Workforce Housing Needs June 2013 Melanie Rees Rees Consulting, Inc. Wendy Sullivan Planning Consultant RRC Associates, Inc.
Purpose & Methodology Purpose Timeframe: Nov. 2012 June 2013 Methodology: 819 Household Surveys 21 Employer interviews 14 additional Key Informant interviews Realtor/title company focus group
Demographic Trends Homeownership increased Housing occupancy increased Moderate growth in families with children significant variation by area Fastest growth in senior population in the State Significant growth in Hispanic/Latino population exceeds number of senior households in some areas
Housing Problems 36% of households lost income an average of $30,000 Tougher lending standards Rents have been on the rise average market rent at about 80% AMI; 1.7% vacancy rate Home prices began rising last year - $513,000 average sale price (162% AMI) Unemployment rose from under 4% to over 8% 4,570 (38%) are cost-burdened
Workforce Housing Inventory Basin # Units % of Total Lower Blue 225 11% Snake River 580 28% Ten Mile 530 26% Upper Blue 726 35% Grand Totals 2,061 100% Dorms 440 21% Year Round Units 1,621 79%
Key Findings Deed restricted performed better than market rate, but prices may not be affordable to intended income groups Ownership market in equilibrium; rental market tight Good mix of housing in county as a whole over 2,000 workforce housing units County operates as an integrated housing market Significant inter-basin commuting Loss of homes to second homeowners and need to fill jobs of retiring employees impact future housing needs as much as new jobs
Needs by Category Low High Existing rental needs 155 390 Existing commuter in-migration 110 210 Replacement units: Retirees staying in County 350 430 Lost to out-of-area owners 430 615 New Employee Households 670 1,330 TOTAL 5-Year Need 1,715 2,975
Housing Needs and Gap Low: Summit County Lower Blue Snake River Ten Mile Upper Blue Total NEED 1,715 300 280 510 625 Total GAP 1,035 185 170 305 375 High: Total NEED 2,975 505 485 895 1,090 Total GAP 1,785 310 290 535 650 Own/Rent mix: 46% for sale; 54% for rent
Allocation of Need by Basin Imbalance in location of workers and jobs Upper Blue Snake River Lower Blue Ten Mile 26% 21% 24% 17% 14% 22% 36% 38% Where Workers Live Other/various 3% Location of Jobs 0% 10% 20% 30% 40%
Allocation of Need by Basin Where employees want to live Upper Blue 35% 36% Snake River 16% 26% Lower Blue Ten Mile 19% 24% 29% 14% Where Want to Live Where Workers Live 0% 10% 20% 30% 40%
Conclusion Operate as integrated housing market Water basin boundaries do not delineate housing market boundaries Coordination/cooperation needed to address imbalances and meet workforce needs New challenges: Retiring households, loss of locally owned homes to out-of-area owners equals or exceeds needs due to new jobs Existing affordable housing stock is aging
Characteristics of Units Needed: County-wide Own/Rent: 46%/54% Pricing (average 2.4-person household): Own: <= 120% AMI (under $400,000) Rent: <= 80% AMI (under $1,380/month) Type of units: Apartments Single family and townhomes/duplexes (ownership)
Characteristics of Units Needed: Lower Blue Basin 5-Yr Gap: 185 to 310 units 60-80% AMI rentals no more tax credit apartments beyond Villa Sierra Madre II 60-120% AMI ownership single family, duplex, few townhomes Phase ownership development of Smith Ranch
Characteristics of Units Needed: Snake River Basin 5-Yr Gap: 170 to 290 units Redevelopment, infill Low-income ownership (Habitat, etc.) - <60% AMI Dillon in most demand
Characteristics of Units Needed: Ten Mile 5-Yr Gap: 305 to 535 units Rentals about 55% of need, 80% AMI and below Ownership 60 to 120% AMI townhomes possible Focus in Frisco over Copper Inventory how much of the need can be addressed
Characteristics of Units Needed: Upper Blue 5-Yr Gap: 375 to 650 units Largest and most diverse inventory of workforce housing most balanced basin Continue to build for new job growth Greatest gap in rentals <= 60% AMI Preservation and rehab/upgrade for existing units
County-Wide Recommendations Countywide strategic housing plan Central deed restricted record keeping system One-stop shop for deed restricted buyers and sellers Rental clearinghouse Affordable price calculation methodology Housing rehabilitation program Retiree/senior housing considerations Housing preservation strategy for local-owned homes Revamp purchase/buy down program
Thank you. Questions?
Appendix
Income Distribution by Basin Income mix of households Summit Lower Snake Ten Mile Upper AMI County Blue River Blue <= 60% 27% 30% 34% 26% 19% 60.1-80% 11% 10% 12% 8% 11% 80.1-120% 36% 32% 34% 39% 40% Over 120% 26% 28% 20% 27% 30% Median $66,700 $65,000 $60,000 $70,000 $70,000
Allocation of Need by Basin Imbalance in location of workers and jobs Workers: Summit County Lower Blue Snake River Ten Mile Upper Blue Where live 17,000 4,100 4,400 2,400 6,100 Where needed 17,000 2,993 3,659 3,807 6,541 (Over)/under supply 0 (1,107) (741) 1,407 441 Housing needed 0-615 -412 781 245
Status Quo vs. Recommendation Low: Summit County Lower Blue Snake River Ten Mile Upper Blue Status quo 1,715 310 375 320 705 Address imbalance 1,715 300 280 510 625 High: Status quo 2,975 585 675 575 1,140 Address imbalance 2,975 505 485 895 1,090
% of Households Housing Problems Cost-burdened and Severely cost-burdened 100% 85% 86% Over 50% of Income Spent on Housing 80% 30.1-50% of Income Spent on Housing 60% 50% 40% 20% 25% 0% 30% or less 30.1% AMI - 60% 60.1% AMI - 80% AMI 80.1% - 120% 120.1% - 150% More than 150% 6% 0%
Commuting Percentage of Basin Jobs Filled by Basin Residents Upper Blue 50% Snake River 34% Lower Blue Ten Mile 25% 28% Summit County: 37% 0% 10% 20% 30% 40% 50% 60%
Commuting % of Employed Households With At Least One Worker Who Lives and Works Within the Basin Upper Blue 82% Snake River 51% Lower Blue 45% Summit County: 64% Ten Mile 64% 0% 20% 40% 60% 80% 100%