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The Role of Housing in Local Economic Development Ef for ts
UNLOCKING YOUR WORKFORCE HOUSING
POTENTIAL
KATIE WERTZ, AICPS enior Projec t ManagerDevelopment Concepts, I nc.
PRESENTER
MARKET TOOLBOX
understanding & documenting the
market
ident i fy ing the players & tools
LOCAL
snapshot of local housing impl icat ions
ISSUES
key chal lenges fac ing I ndiana communit ies
ROLE
role of workforce housing in I ndiana
EVOLVING ROLEof workforce housing
PROXIMITY
QUALITY
COSTS
“... SUPPLY OF LABOR IS DETERMINED BY
HOSUSEHOLDS...
s o u r ce : M i c h a e l H i c k s, C e n t e r f o r B u s i n e s s a n d E c o n o m i c R e s e a r c h a t B a l l S t a t e U n i v e r s i t y
... who are influenced by great schools, good transportation
infrastructure, arts and cultural activities, recreational opportunities and natural and endogenous amenities such as
retail, restaurants and amusements.”
s o u r ce : M i c h a e l H i c k s, C e n t e r f o r B u s i n e s s a n d E c o n o m i c R e s e a r c h a t B a l l S t a t e U n i v e r s i t y
“Few places in Indiana can boast a full list of these...
THAT IS WHY ONLY [A] HANDFUL OF HOOSIER
COUNTIES HAVE GROWN IN THE PAST TWO DECADES.”
s o u r ce : M i c h a e l H i c k s, C e n t e r f o r B u s i n e s s a n d E c o n o m i c R e s e a r c h a t B a l l S t a t e U n i v e r s i t y
QUALITY OF LIFE
LOCAL ISSUES small + rural communities
HOUSING AFFORDABILITY ISN’T THE ONLY ISSUE
HOUSING ALONE14% of I ndiana communit ies considered “cost burdened”
HOUSING + TRANSPORTATION89% of I ndiana communit ies are considered “cost burdened”
s o u r ce : H + T A f f o r d a b i l i t y I n d e x , d a t a r e f l e c t s a “ t y p i ca l ” h o u s e h o l d
QUALITY, AGE & CONDITION PLAY A MAJOR ROLE
The major i t y of housing in I ndiana was bui l t pr ior to 1980
s o u r ce : A m e r i ca n C o m m u n i t y S u r v e y 2 0 1 4
HOUSING PREFERENCES HAVE CHANGED
M il lennia lsBaby Boomers Urban M igrat ion
s o u r ce : A m e r i ca n C o m m u n i t y S u r v e y 2 0 1 4
QUALITY OF LIFE TOPS THE LIST
Walk-abi l i t y / Mult i -modalDiverse People & OptionsR ange of Housing TypesS chools & Educat ionPubl ic Safet y Access to Amenit ies
DISTRESSED, SLUGGISH & CHALLENGED MARKETS
How do we become relevant?
LOCAL MARKETSchallenges + opportunities
SUPPLY DEMANDVS.
WHAT IS THE BROADER MARKET CONTEXT?
Populat ion TrendsHousing GrowthChange in EmploymentCommuting Patterns
D U B O I S CO.
DAV I E S S CO.
P E R RYCO.
P I K ECO.
WA R R I C K CO.
c h a n g e * c h a n g e c h a n g e c h a n g e c h a n g e
Po p u l a t i o n G r o w t hA n n u a l G r o w t h R a t e 0 . 4 3 % 0 . 9 1 % 0 . 4 3 % - 0 . 2 1 % 0 . 5 7 %
N e t G a i n + 7 2 8 + 1 , 1 5 0 + 3 3 4 - 1 0 7 + 1 , 3 5 7
C o m m u t i n g G r o w t hA n n u a l G r o w t h R a t e 2 . 8 0 % 1 2 . 7 % 6 . 4 0 % 8 . 3 0 % 0 . 6 0 %
N e t G a i n + 3 0 2 + 5 3 8 + 1 5 1 + 1 3 0 + 4 4
H o u s i n g G r o w t hA n n u a l G r o w t h R a t e 0 . 6 6 % 0 . 7 9 % 0 . 3 6 % - 0 . 0 7 % 0 . 7 9 %
N e t G a i n + 4 3 8 + 3 7 5 + 1 4 4 - 2 0 + 6 4 0
E m p l o y m e n t G r o w t hA n n u a l G r o w t h R a t e 0 1 . 3 1 % 1 . 7 8 % 3 . 2 0 % 3 . 0 5 % 1 . 6 8 %
N e t G a i n + 9 4 9 + 4 6 0 + 4 1 6 + 2 1 4 + 6 2 5
* i n d i c a t e s g r o w t h / l o s s b e t w e e n 2 0 1 0 - 2 0 1 3 , e xc e p t c o m m u t i n g d a t a 2 0 1 0 - 2 0 1 1i n d i c a t e s c h a n g e b e t w e e n “p r e - r e c e s s i o n” a n d “p o s t - r e c e s s i o n” c h a n g e
WHAT ARE YOU WORKING WITH?
Construc t ion TrendsUnit / Produc t TypeOccupanc y - rent v. ownYear Bui lt*Vacanc y R atesHome ValuesLocat ion / Geography
* a v e ra g e a g e o f h o u s i n g u n i t s
DEMAND FACTOR #1HOW IS YOUR MARKET CHANGING?Sales TrendsConstruc t ion Trends*Populat ion Projec t ionsEmployment Projec t ionsAffordabi l i t y Analys isPopulat ion Subsets
* a v e ra g e co n s t r u c t i o n co s t o f n e w u n i t s i n D u b o i s C o u n t y
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
$ 2 0 0 , 0 0 0
$ 2 5 0 , 0 0 0
R E C E S S I O N Y E A R S A V E R A G E C O N S T R U C T I O N C O S T
DEMAND FACTOR #2WHO IS YOUR WORKFORCE? HOW IS THAT CHANGING?I ndustr y TypeSalar y or PayAverage AgeEducat ional Atta inment
* e m p l o y m e n t p r o j e c t i o n s p r o v i d e d b y m a j o r D u b o i s C o u n t y e m p l o y e r s
A V E R A G E H O U R L Y R A T E
E n t r y L e v e l P r o d u c t i o n
E n t r y L e v e l P r o f e s s i o n a l
S e n i o r L e v e l P r o d u c t i o n
$ 1 4 . 0 0
$ 1 8 . 0 0
A L L R E S P O N D E N TS
P R O D U C T I O N R E S P O N D E N TS
ave ra g e * ave ra g e
D e m o g r a p h i c P r o f i l e% M a l e / Fe m a l e 5 0 % / 5 0 % 5 3 % / 4 7 %
Av e r a g e A g e ( i n y e a r s ) 3 5 - 4 4 4 5 - 5 4
% H i g h S c h o o l O n l y / C o l l e g e D e g r e e 3 0 % / 4 6 % 6 0 % / 1 3 %
% M g m t . / Pr o f e s s i o n a l / Pr o d u c t i o n 2 2 % / 3 6 % / 3 1 % n / a
T i m e i n C u r r e n t J o b ( i n y e a r s ) 5 - 1 0 1 - 2
H o u s e h o l d ( H H ) I n c o m e $ 4 5 , 0 0 0 - $ 6 5 , 0 0 0 $ 2 5 , 0 0 0 - $ 4 5 , 0 0 0
O n e - Wa y C o m m u t e ( i n m i n u t e s ) 1 0 - 2 0 1 0 - 2 0
* i n f o r m a t i o n d e r i v e d f r o m D C I s u r v e y o f t o p D u b o i s C o u n t y e m p l o y e r s ( Fe b r u a r y 2 3 - M a r c h 3 , 2 0 1 5 )
i n d i c a t e s c o m p a r i s o n t o “A l l R e s p o n d e n t s”
DEMAND FACTOR #3 WHAT DO THEY WANT? WHAT DO THEY NEED? AND WHAT CAN THEY AFFORD?
Sub -market Analys isCommunit y Sur veys*
* e m p l o y e e h o u s i n g p r e f e r e n ce s u r v e y
HOW YOU RESPOND DEPENDS ON YOUR LOCAL MARKET?
Supply? Affordabi l i t y? Age / Condit ion? Features or Housing Type? Communit y Amenit ies?
* e m p l o y e e h o u s i n g p r e f e r e n ce s u r v e y< 2 5 % 2 5 - 3 4 % 4 5 - 5 0 % > 5 0 %3 5 - 4 4 %
% o f “ A f f o r d a b l e ” U n i t s ( < $ 1 5 0 , 0 0 0 )
C O N C L U S I O N 1 .
Tradit ional market
indicators for
Dubois County
do not ref lect a
s ignif icant increase
in housing demand.
C O N C L U S I O N 2 .
There is l imited
oppor tunity
for s ignif icant
new housing
construction based
on past trends and
current, tradit ional
demand levels.
C O N C L U S I O N 3 .
The age and qual ity
of housing stock
may present an
oppor tunity for
a “replacement ”
housing strategy
within specif ic
neighborhoods.
C O N C L U S I O N 4 .
The current rental
inventor y is
inadequate in both
qual ity and options
within each of the
communities.
C O N C L U S I O N 5 .
The majority
of housing is
“affordable” to
the workforce,
but l imited in
age, qual ity and
location.
C O N C L U S I O N 6 .
Current commuters
are not l ikely to
dr ive s ignif icant
housing demand;
other factors
are inf luencing
their housing
decision besides
employment.
C O N C L U S I O N 7 .
Exist ing
development
standards, cost of
construction and
avai labi l i ty of land
impede and / or
dis incentivize new
workforce housing
construction.
C O N C L U S I O N 8 .
Employer job
growth projections
for the next 5 years
are an impor tant
component that wil l
impact the level of
housing demand in
the near future.
LOCAL MARKET FINDINGS SHOULD INFORM WORKFORCE HOUSING STRATEGY
YOUR TOOLBOXlocal capacity + resources
WHAT DO YOU DO ONCE YOU HAVE A STRATEGY?
Ident i fy ing your team, tools and resources
E M P L O Y E R S . P U B L I C S E C T O R .
H O U S I N G PA R T N E R .
H O M E - B U Y E R S . D E V E L O P E R / B U I L D E R . O T H E R F U N D E R S .
The employers are a cr it ical component of identifying and attracting qual i f ied home -
buyers and wil l benefit from improved employee attraction and retention which wil l
faci l i tate their projected expansion plans.
The public sector wil l be pr imari ly responsible for infrastructure improvements, expedited
entit lement processes and pre - development activit ies. They wil l benefit from an improved
and expanded tax base as well as a greater abi l i ty to attract new residents and businesses.
The housing par tner may be an exist ing or newly created nonprofit or for profit entity that par tners with the employers and public sector to lead housing effor ts within Dubois
County. This organization or individual wil l be responsible for organizing and leading the housing init iat ives which may include activit ies such as col laborating with the par tners to meet broader community/ economic development goals, pre - development, marketing and
sales, construction management and transactions with potential home -buyers.
Home -buyers wil l benefit from an improved process
as well as a menu of f inancial resources that make Dubois County a
more desirable location.
Benefits to the builders wil l be both f inancial in
the form of incentives and ease of entit lement as well as identif ication of qual i f ied customers.
Federal, State and private funders wil l br ing resources
that meet their goals of affordabil ity, homeownership
and community/economic development.
D U B O I S CO U N T Y H O U S I N G P R O G R A M O R G A N I Z AT I O N F R A M E W O R K
HAVE THE RIGHT PEOPLE AT THE TABLE
Dif ferent par tners br ing di f ferent sk i l l s , exper t ise and capacit y to the team
MAKE A PLAN, IDENTIFY ROLES & HOLD EACH OTHER ACCOUNTABLE
P R O J E C T R O L E S .
Pa r t n e r s.
K e y Ta s kD e f i n e G o a l s / O b j e c t i v e s o f D u b o i s C o u n t y H o u s i n g Pr o g r a m
O r g a n i z e Pa r t n e r s & B e g i n O u t r e a c h t o O t h e r Fu n d e r s
I d e n t i f y H o u s i n g Pa r t n e r & D e f i n e R o l e / E x p e c t a t i o n s
E s t a b l i s h H o u s i n g Pr o g r a m Fr a m e w o r k
D e f i n e & I d e n t i f y D e m o n s t r a t i o n / P i l o t Pr o j e c t
Ta r g e t S i t e s f o r A c q u i s i t i o n / L a n d C o n t r o l
Wo r k w i t h Lo c a l B a n k s t o D e v e l o p Fa v o r a b l e Fi n a n c i n g
B e g i n D i s c u s s i o n s w i t h D e v e l o p e r / B u i l d e r
B u i l d M o d e l U n i t s f o r b o t h R e h a b a n d N e w H o u s i n g Pr o d u c t
M a r k e t i n g & O u t r e a c h t o H o m e - B u y e r s
Pr e - S e l l U n i t s t o Q u a l i f i e d H o m e - B u y e r s
O n - g o i n g C o n s t r u c t i o n o f N e w a n d R e n o v a t e d U n i t s
E v a l u a t e O u t c o m e s a n d A d j u s t / E x p a n d t o M e e t D e m a n d
Pr o j e c t e d C o m p l e t i o n o f 5 0 u n i t D e m o n s t r a t i o n Pr o j e c t
D E V E L O P E R / B U I L D E R ( D )
P U B L I C S E C T O R ( P )
H O U S I N G P A R T N E R ( H )
O T H E R F U N D E R S ( F )
E M P L O Y E R S ( E )
(E) (P) (H) (F) (D)
DIFFERENT TOOLS FOR DIFFERENT USESTools should enhance both supply and demand aspec ts of the housing market
Us e r. Pr ov i d e r.
To o l s a n d R e s o u r c e s *C o n s t r u c t i o n Fi n a n c i n g
D o w n Pa y m e n t A s s i s t a n c e ( D PA )H o u s i n g C o u n s e l i n g
H o m e - B u y e r I d e n t i f i c a t i o nH o m e O w n e r Ta x C r e d i t s
I n d i v i d u a l D e v e l o p m e n t A c c o u n t ( I D A )I n t e r e s t R a t e B u y - D o w n
L a n d A s s e m b l yL a n d Wr i t e - D o w n
Lo a n G u a r a n t e eS e c o n d M o r t g a g e
Ta x A b a t e m e n tWe a l t h B u i l d i n g
* a d d i t i o n a l i n f o r m a t i o n o n e a c h t o o l p r o v i d e d o n t h e f o l l o w i n g p a g e s
(H) (F) (P) (E)(D) (B)
D E V E L O P E R / B U I L D E R ( D )
H O U S I N G P A R T N E R ( H )
O T H E R F U N D E R S ( F )E M P L O Y E R S ( E )
H O M E - B U Y E R S ( B ) P U B L I C S E C T O R ( P )
LOCAL CONTEXTthings to consider
LOCATIONAL VARIATIONShousing cost var y f rom communit y to communit y
5 0 %
6 0 %
A r c a d i a
A t l a n t a
C a r me l
C i c e r o
F i s h e r s
Ha m
i l t o n Co
No b l e s v i l l e
S h e r i d a n
We s t f i e l d
% O F I N C O M E S P E N T O N H O U S I N G *
s o u r ce : H o u s i n g + Tra n s p o r t a t i o n A f f o r d a b i l i t y I n d e x
* d a t a r e f l e c t r e g i o n a l m o d e r a t e h o u s e h o l d s w / h o u s e h o l d i n c o m e s o f $ 4 1 , 7 1 8
AVAILABLE HOUSING PRODUCTQual i t y, age, condit ion, t ype and avai labl i t y impac t workforce
2 0 0 0
A r c a d i a
A t l a n t a
C a r me l
C i c e r o
F i s h e r s
Ha m
i l t o n Co
No b l e s v i l l e
S h e r i d a n
We s t f i e l d
M E D I A N Y E A R S T R U C T U R E S B U I L T
1 9 8 0
1 9 6 0
1 9 4 0
1 9 2 0
m a j o r i t y o f I N h o m e s b u i l t p r e 1 9 8 0
s o u r ce : A m e r i ca n C o m m u n i t y S u r v e y
LOCATION IS JUST AS IMPORTANTwhere are job c lusters? are they access ible to your workforce? is there “af fordable” qual i t y housing nearby?
J O B A C C E S S S C O R EH + T C O S T
s o u r ce : H o u s i n g + Tra n s p o r t a t i o n A f f o r d a b i l i t y I n d e x
* d a t a r e f l e c t r e g i o n a l m o d e r a t e h o u s e h o l d s w / h o u s e h o l d i n c o m e s o f $ 4 1 , 7 1 8
RESPONSE MUST REACT TO LOCAL CHALLENGES & OPPORTUNITIES
Supply? Affordabi l i t y?
Age / Condit ion? Features or Housing Type?
Communit y Amenit ies?
KATIE WERTZ, AICP(317) 713-9268 k wer tz@development- concepts.com
QUESTIONS?