Housing For All Strong Neighborhoods, Strong City 2016 Grand Rapids - - PowerPoint PPT Presentation

2016 Grand Rapids Neighborhood Summit

Housing For All

Friday, March 11 2016 • GRPS University • Grand Rapids, Michigan Presented by

Strong Neighborhoods, Strong City

Agenda

4 2 5 1

Introductions Income Impressions

3

Q&A Housing + Affordability

― Jane Jacobs, The Death and Life of Great American Cities

“Cities have the capability of providing something for everybody, only because, and only when, they are created by everybody.”

[Income]

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

$47,269 $50,203 $45,713 $45,239 $42,565 $43,905 $46,702 $44,171 $40,188 $45,897

Median Family Income: 2005—2014

Grand Rapids (MI)

Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

a) White Families b) Blacks/African Americans Families c) Hispanics Families

Hispanics Families

(are making 26.7% less money in 2014 than in 2005)

Between 2005 & 2014, what family group had the largest lost in real median family income?

Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates) Income-adjusted values to 2014 US dollars by Metrica

All Families White Families Black Families Hispanic Families

U.S. Dollars

• 10,000

10,000

• $9,838
• $9,320
• $3,352
• $8,366
• 1,768

U.S

Net Gained

Median “Real” Family Income: 2005 and 2014

Grand Rapids (MI) and the U.S - Adjusted to 2014 dollars

Net Lost

Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates) Income-adjusted values to 2014 US dollars by Metrica

Hispanics

65,000

$36,862 $27,024

Blacks

$38,144 $28,824

All Families

$55,635 $47,269

Whites

$63,470 $60,118

2014 2005

• 15.0%
• 5.3%
• 24.4%
• 26.7%
• 2.6%

Change (in %)

$ -8,366 $ -3,352 $ -9,320 $ -9,838 $ -1,768

Change (in $) U.S

Median Real Family Income by Race: 2005 and 2014

Grand Rapids (MI) and the U.S - Adjusted to 2014 dollars

twitter.com/mrpatulski

Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates) Income-adjusted values to 2014 US dollars by Metrica

Detroit

65,000

$38,583 $17,340

Wyoming

$55,246 $27,313

Grand Rapids

$56,694 $25,740

Renter Owner

Median Household Income by Type: 2014

Grand Rapids (MI), selected cities (MI) and Michigan,

Michigan

$61,155 $27,978

Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

Detroit U.S Wyoming Michigan Grand Rapids

21.1 22.1 23.0 24.8 30.4

Owner-Occupied Housing Costs Burden: 2014

Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

Grand Rapids (MI), selected cities (MI) , Michigan and U.S: Percent of owner-occupied householders spending 30% or more in income towards housing costs

Less than $20,000: $20,000 to $34,999: $35,000 to $49,999: $50,000 to $74,999: $75,000 or more:

1.1 3.9 21.9 49.9 82.1

Owner-Occupied Housing Costs Burden: 2014

Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

Grand Rapids (MI), selected cities (MI) , Michigan and U.S: Percent of owner-occupied householders spending 30% or more in income towards housing costs

Housing Terminology

What are the descriptions you have heard to describe types of housing or development?

Low Income Housing: Home ownership or rental housing that is developed using one of several local, State or Federally grant programs. Typically for families making 50% of the AMI or less

A case for common language

Housing Terminology

Uptown Village Apartments, LIHTC Rental:

Housing Terminology

2 Bed: $645 - $662 3 Bed: $746 - $921 3 Bed Town-home: $864

26 Cherry, LIHTC Apartments:

1 Bed: $354 - $714 2 Bed: $411 - $843

Low Income Housing:

Source: Compiled by the Kent County Land Bank Authority, 2016

Affordable Housing: Home ownership or rental housing that is priced so that a person making 60% to 125% of the AMI will not have to pay more than 30% of their monthly income for their housing cost

A case for common language

Housing Terminology

546 Griggs SE:

Housing Terminology

Purchased: $19,000 in 2014 (tax foreclosed) Sold: $80,000 in 2015

Affordable Housing

649 Griggs SE:

Purchased: data not available Sold: $85,000 in 2015

Source: Kent County Land Bank Authority, 2016

850 Elliott SE:

Housing Terminology

Purchased: $46,000 in 2013 (foreclosed) Sold: $115,000 in 2015

Affordable Housing

137 Graceland NE:

Purchased: $8,000 in 2014 (tax foreclosed) Sold: $135,000 in 2015

Source: Kent County Land Bank Authority, 2016

Market Rate Housing: Homeownership or rental housing that is priced at whatever the market will bear

A case for common language

Housing Terminology

616 Lofts on Michigan

Housing Terminology

Belknap Lookout Neighborhood Selling for between $250K and $350K

Market Rate Housing

Belknap Brownstones:

1 Bed: $1,250-$1,350 2 Bed: $1,650 - $1,900

Source: Compiled by the Kent County Land Bank Authority, 2016

Arena Place, Downtown

Housing Terminology

Studio: $800 1 Bed: $1,000 2 Bed: $1,425-$1,575

Market Rate Housing

Eastown Flats:

1 Bed: $1,275-$1,855 2 Bed: $1725-$2,200

Source: Compiled by the Kent County Land Bank Authority, 2016

[Income + Housing Mobility + Sales]

1969 or earlier 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 2010 or later

50.7 23.6 12.1 6.6 3.6 3.5

Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

Percent of Householders by Year Moved Into Unit

Grand Rapids (MI)

1969 or earlier 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 2010 or later

38.3 9.0 2.0 0.4 0.1 0.0 12.4 14.6 10.1 6.2 3.5 3.5

Owner Occupied Householders Renter Occupied Householders

Percent of Householders by Year Moved Into Unit

Grand Rapids (MI)

Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

How many of you moved into your current house (own or rent) in 2010 or later?

Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

a) Grand Rapids b) Wyoming c) Detroit

Grand Rapids

(with 50.7% of householders moved into their house in 2010 or later)

What city experienced the highest mobility (owners/renters) since 2010 or later?

Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

Grand Rapids Detroit Wyoming Michigan

14.4 12.0 9.4 12.4 21.9 27.6 36.4 38.3 Renters Owners = 50.7% = 45.8% = 39.6% = 36.2% Mobility Rate 2010 or later

Percent of Householders Moving Into Unit in 2010 or Later

Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

Grand Rapids (MI), selected cities (MI) and Michigan,

3 5 8 10 13 15 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

[Left Scale] Avg. Sold Price

• Avg. Monthly Inventory [Right Scale]

Source: Greater Grand Rapids Realtor Association, 2016

• Avg. Sold Price & Avg. Monthly Inventory: 2002—2015

Kent, Allegan, Barry, Ottawa and Ionia counties

Great Recession

$146,280 $175,562 $107,546 5.5 Months 2.5 Months 13.3 Months

3 5 8 10 13 15 1,500 3,000 4,500 6,000 7,500 9,000 10,500 12,000 13,500 15,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

[Left Scale] Homes Sold

• Avg. Monthly Inventory [Right Scale]

Source: Greater Grand Rapids Realtor Association, 2016

Homes Sold & Avg. Monthly Inventory: 2002—2015

Kent, Allegan, Barry, Ottawa and Ionia counties

5.5 Months 2.5 Months 13.3 Months

Great Recession

11,871 13,114 9,066

a) 25% b) 52% c) 74% d) 85%

74%

while the region increased by + 40%

Between 2011 and 2015, the percent increase in sales value in Grand Rapids increased by:

Source: Greater Grand Rapids Realtor Association, 2016

1 4 6 8 10 13 15 26,000 52,000 78,000 104,000 130,000 2011 2012 2013 2014 2015

[Left Scale] Avg. Sold Price

• Avg. Monthly Inventory [Right Scale]

Source: Greater Grand Rapids Realtor Association, 2016

• Avg. Sold Price & Avg. Monthly Inventory: 2002—2015

Grand Rapids (MI)

3.6 Months 1.5 Months $70,670 $122,658

1 4 6 8 10 13 15 700 1,400 2,100 2,800 3,500 2011 2012 2013 2014 2015

[Left Scale] Avg. Sold Price

• Avg. Monthly Inventory [Right Scale]

Source: Greater Grand Rapids Realtor Association, 2016

Homes Sold & Avg. Monthly Inventory: 2002—2015

Grand Rapids Region

3.6 Months 1.5 Months 2,241 3,099

0% 100% 2011 2012 2013 2014 2015

98% 96% 97% 97% 95%

• Avg. Listing vs. Sold Price: 2011—2015

Grand Rapids (MI)

$74,856 $70,670 $87,251 $83,886 $99,959 $96,636 $110,283 $107,036 $124,686 $122,658

Source: Greater Grand Rapids Realtor Association, 2016

Less than 10k 10k-20k 20k-30k 30k-40k 40k-50k 50k-60k 60k-70k 70k-80k 170 144 129 113 106 83 32 5 80k-90k 90k-100k 100k-110k 110k-120k 120k-130k 130k-140k 140k-150k 190 228 253 228 179 172 161 150k-160k 160k-170k 170k-180k 180k-190k 190k-200k 200k-210k 210k-220k 220k-230k 230k-240k 240k-250k 250k-260k 260k-270k 270k-280k 280k-290k 290k-300k 300k-350k 350k-400k 400k-450k 450k-500k 500k + 9 5 2 21 38 16 8 17 21 15 17 28 32 29 25 48 62 65 117 144

Source: Greater Grand Rapids Realtor Association, 2016

Home Sales Price Point: 2015

At Risk Less than 80k Affordable Target 80k - 150k Higher End Over 150k

Grand Rapids (MI)

782 homes 27% 1,411 homes 48% 719 homes 25%

1044 3rd NW:

Housing Terminology

Purchased from HUD in 2008 for $20,000 Nothing done from 2008-2012 Mechanical Permit and SFH Rental Cert in 2012 Nothing done since 2012 Currently Rented 2016 on the Market for $89,900

Affordable Housing

111 Andre SW:

Has always been homeowner Foreclosed in 2001 Sold to existing homeowner for $36,000 2016 on market for $70,000

Source: Kent County Land Bank Authority, 2016

1264 Griggs SE:

Housing Terminology

Investor owned since 2004 Rental from 04-2012 Foreclosed by Mercantile Bank in 2012 Sold to investor in 2012 for $28,000 No permits pulled Sold to homeowner in 2013 for $60,000 2016 Homeowner has it on market for $80,000

Affordable Housing

1222 Mason NE:

Homeowner until 2004 Country Wide/FHA Foreclosure in 2006 Purchased by investor for $55,000 in 2006 No record of any permits pulled No SFH Rental Certification Currently rented 2016 on Market for $89,900

Source: Kent County Land Bank Authority, 2016

a) ~500 b) ~1,500 c) ~800 d) ~1,250

~500 housing units

The number of new low-income housing units to be built between 2016-2017 is estimated to be:

Source: Compiled by the Kent County Land Bank Authority, 2016

2012-2015 Units

622 426

Source: Compiled by the Kent County Land Bank Authority, 2016

2016-2017 Units

511 2,663

Market Rate vs. Affordable Housing Units: 2002—2017

Market Market Low-Income Low-Income

Grand Rapids (MI) : Only a partial list of units*

Source: Compiled by the Kent County Land Bank Authority, 2016. *Partial reporting of units by number of bedrooms

Market Rate vs. Affordable Housing Units: 2002—2017

Studio 1-Bedroom 2-Bedrooms 3-Bedrooms 4-Bedrooms

2012 - 2015*

20 40 60 80

7.0 17.1 8.0 49.3 18.5 2.5 33.7 53.2 9.9 0.7

Studio 1-Bedroom 2-Bedrooms 3-Bedrooms 4-Bedrooms

2016 - 2017*

16 32 48 64 80

29.6 53.7 16.7 0.0 0.0 1.4 0.0 42.4 41.2 14.6

Market Rate Housing Units Affordable Housing Units Grand Rapids (MI) : Only a partial list of units by number of bedrooms*

[Income + Rental Housing]

Kent

70,000

$67,172 $29,974

Grand Rapids

$56,694 $25,740

Renter Owner

Median Household Income by Type: 2014

Grand Rapids (MI) and Kent County (MI)

Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

Detroit Grand Rapids Wyoming Michigan U.S 47.9 48.0 53.1 53.3 57.5 24.8 22.1 23.0 21.1 30.4

Renter Housing Costs Burden: 2014

Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

Grand Rapids (MI), selected cities (MI) , Michigan and U.S: Percent of householders spending 30% or more in income towards housing costs

Less than $20,000: $20,000 to $34,999: $35,000 to $49,999: $50,000 to $74,999: $75,000 or more:

0.0 6.4 27.1 64.9 91.4 1.1 3.9 21.9 49.9 82.1 Owners Spending 30% or more Renters Spending 30% or more

Renter Housing Costs Burden: 2014

Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

Grand Rapids (MI): 30% or More in Income Towards Housing Costs

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Grand Rapids city, MI Detroit, MI

$798 $788 $727 $733 $736 $716 $703 $659 $644 $639

Median Gross Rent: 2005—2014

Grand Rapids (MI) vs. Detroit (MI)

Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

$675 $737

2014 2005

Grand Rapids

1,000

$639

728 U.S

Wyoming

1,000

$623

Detroit

1,000

$675

Michigan

1,000

$655

Gross Rent Estimates: 2005 and 2014

1,000

$798

934 U.S

1,000

$744

1,000

$737

1,000

$788

+ $159 + $121 + $ 62 + $133 + $206

Change (in $)

+ 24.9% + 19.4% + 9.2% + 20.3% + 28.3%

Change (in %) U.S

Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

Grand Rapids (MI), selected cities (MI) and Michigan,

Affordable Rent

500 1,000

$737

Minimum Wage (Kent Co.)

• Avg. Renter Wage (Kent Co.)

Housing Wage (Kent Co.)

Source: National Low-Income Housing Coalition, 2015 Out of Reach report

Hourly Rate

10 20

$14.17

Monthly Income 1,250 2,500

$2,457

Annual Income 17,500 35,000

$29,480

10 20

$11.85

10 20

$8.15

1 wage earner 40/hrs - 52 weeks

500 1,000

$616

1,250 2,500

$2,054

17,500 35,000

$24,648

1.2 wage earner 40/hrs - 52 weeks

500 1,000

$424

1,250 2,500

$1,413

17,500 35,000

$16,952

1.7 wage earner 40/hrs - 52 weeks

Affordable Rent: 2015

TWO-BEDROOMS UNIT

[Affordability By Race]

― Jane Jacobs, The Death and Life of Great American Cities

“Cities have the capability of providing something for everybody, only because, and only when, they are created by everybody.”

Affordability Range By Race

*2014 Median Family Income(1) **Affordable Payments(2) Home Price Range(2) 2014 Gross Median Rent(1) Renter Housing Wage(3) Median Renter Wage(3) Minimum Wage(3) All Families $47,269 $1,182 $125,000 $798 $737 $616 424 White $60,118 $1,503 $175,000 $798 $737 $616 424 Blacks/AA $28,824 $721 $80,000 $798 $737 $616 424 Hispanics $27,024 $676 <$80,000 $798 $737 $616 424

* 2014 Median Family Income for Grand Rapids, MI **Monthly mortgage payments based on a 30-year fixed rate mortgage at 4% annual interest. **Based on 30% of income towards housing costs (rent/own)

Sources: (1) U.S. Census Bureau, 2014 American Community Survey (1-year Estimates) (2) Kent County Land Bank Authority, 2016 and Metrica, LLC (3) National Low-Income Housing Coalition, 2015 Out of Reach report

[First Impressions]

[Take Away Points]

Increase housing inventory Catalog vacant property Vacant build able land Middle missing housing Imbalance housing market - oversupply of high end market Neighborhoods to start embracing density

[Questions + Answers]

Gustavo Rotondaro

Principal gustavo@simplymetrica.com linkedin.com/in/grotondaro/ @grotondaro

David C. Allen

Executive Director davida@kclba.org facebook.com/kclba/