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

Housing For All Strong Neighborhoods, Strong City 2016 Grand Rapids Neighborhood Summit Presented by Friday, March 11 2016 • GRPS University • Grand Rapids, Michigan

Agenda Housing + Affordability Q&A Introductions 1 2 3 4 5 Impressions Income

“Cities have the capability of providing something for everybody, only because, and only when, they are created by everybody.” ― Jane Jacobs, The Death and Life of Great American Cities

[Income]

Median Family Income: 2005—2014 Grand Rapids (MI) $50,203 $47,269 $46,702 $45,897 $45,713 $45,239 $44,171 $43,905 $42,565 $40,188 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

Between 2005 & 2014, what family group had the largest lost in real median family income? a) White Families b) Blacks/African Americans Families c) Hispanics Families Hispanics Families (are making 26.7% less money in 2014 than in 2005) Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates) Income-adjusted values to 2014 US dollars by Metrica

Median “Real” Family Income: 2005 and 2014 Grand Rapids (MI) and the U.S - Adjusted to 2014 dollars U.S Net Lost Net Gained -1,768 All Families -$8,366 White Families -$3,352 Black Families -$9,320 Hispanic Families -$9,838 -10,000 0 10,000 U.S. Dollars Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates) Income-adjusted values to 2014 US dollars by Metrica

Median Real Family Income by Race: 2005 and 2014 Grand Rapids (MI) and the U.S - Adjusted to 2014 dollars 2014 2005 Change (in $) Change (in %) All Families $ -8,366 - 15.0% $47,269 $55,635 Whites $ -3,352 -5.3% $60,118 $63,470 twitter.com/mrpatulski Blacks $ -9,320 -24.4% $28,824 $38,144 Hispanics $27,024 $36,862 $ -9,838 -26.7% 0 65,000 $ -1,768 -2.6% U.S Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates) Income-adjusted values to 2014 US dollars by Metrica

Median Household Income by Type: 2014 Grand Rapids (MI), selected cities (MI) and Michigan, Renter Owner Michigan $27,978 $61,155 Grand Rapids $25,740 $56,694 Wyoming $27,313 $55,246 Detroit $17,340 $38,583 0 65,000 Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

Owner-Occupied Housing Costs Burden: 2014 Grand Rapids (MI), selected cities (MI) , Michigan and U.S: Percent of owner-occupied householders spending 30% or more in income towards housing costs 30.4 24.8 23.0 22.1 21.1 Detroit U.S Wyoming Michigan Grand Rapids Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

Owner-Occupied Housing Costs Burden: 2014 Grand Rapids (MI), selected cities (MI) , Michigan and U.S: Percent of owner-occupied householders spending 30% or more in income towards housing costs 82.1 49.9 21.9 3.9 1.1 Less than $20,000: $20,000 to $34,999: $35,000 to $49,999: $50,000 to $74,999: $75,000 or more: Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

Housing Terminology

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

Housing Terminology A case for common language 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

Housing Terminology Low Income Housing: Uptown Village Apartments, LIHTC Rental: 26 Cherry, LIHTC Apartments: 2 Bed: $645 - $662 1 Bed: $354 - $714 3 Bed: $746 - $921 2 Bed: $411 - $843 3 Bed Town-home: $864 Source: Compiled by the Kent County Land Bank Authority, 2016

Housing Terminology A case for common language 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

Housing Terminology Affordable Housing 546 Griggs SE: 649 Griggs SE: Purchased: $19,000 in 2014 Purchased: data not available (tax foreclosed) Sold: $80,000 in 2015 Sold: $85,000 in 2015 Source: Kent County Land Bank Authority, 2016

Housing Terminology Affordable Housing 850 Elliott SE: 137 Graceland NE: Purchased: $46,000 in 2013 Purchased: $8,000 in 2014 (foreclosed) (tax foreclosed) Sold: $115,000 in 2015 Sold: $135,000 in 2015 Source: Kent County Land Bank Authority, 2016

Housing Terminology A case for common language Market Rate Housing: Homeownership or rental housing that is priced at whatever the market will bear

Housing Terminology Market Rate Housing 616 Lofts on Michigan Belknap Brownstones: 1 Bed: $1,250-$1,350 Belknap Lookout Neighborhood 2 Bed: $1,650 - $1,900 Selling for between $250K and $350K Source: Compiled by the Kent County Land Bank Authority, 2016

Housing Terminology Market Rate Housing Arena Place, Downtown Eastown Flats: 1 Bed: $1,275-$1,855 Studio: $800 2 Bed: $1725-$2,200 1 Bed: $1,000 2 Bed: $1,425-$1,575 Source: Compiled by the Kent County Land Bank Authority, 2016

[Income + Housing Mobility + Sales]

Percent of Householders by Year Moved Into Unit Grand Rapids (MI) 50.7 23.6 12.1 6.6 3.6 3.5 1969 or earlier 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 2010 or later Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

Percent of Householders by Year Moved Into Unit Grand Rapids (MI) Owner Occupied Householders Renter Occupied Householders 38.3 14.6 12.4 10.1 9.0 6.2 3.5 3.5 2.0 0.4 0.1 0.0 1969 or earlier 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 2010 or later 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)

What city experienced the highest mobility (owners/renters) since 2010 or later? a) Grand Rapids b) Wyoming c) Detroit Grand Rapids (with 50.7% of householders moved into their house in 2010 or later) Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

Percent of Householders Moving Into Unit in 2010 or Later Grand Rapids (MI), selected cities (MI) and Michigan, Mobility Rate 2010 or later 38.3 12.4 Grand Rapids = 50.7% 36.4 9.4 = 45.8% Detroit 27.6 12.0 Wyoming = 39.6% 21.9 14.4 Michigan = 36.2% Renters Owners Source: U.S. Census Bureau, 2014 American Community Survey (1-year Estimates)

Avg. Sold Price & Avg. Monthly Inventory: 2002—2015 Kent, Allegan, Barry, Ottawa and Ionia counties 200,000 15 13.3 Months $175,562 180,000 13 160,000 $146,280 140,000 10 120,000 $107,546 100,000 8 80,000 5.5 Months 5 60,000 40,000 3 2.5 Months 20,000 Great Recession 0 0 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

Homes Sold & Avg. Monthly Inventory: 2002—2015 Kent, Allegan, Barry, Ottawa and Ionia counties 15,000 15 13.3 Months 13,114 13,500 13 12,000 11,871 10,500 10 9,000 9,066 7,500 8 6,000 5.5 Months 5 4,500 3,000 3 2.5 Months 1,500 Great Recession 0 0 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

Between 2011 and 2015, the percent increase in sales value in Grand Rapids increased by: a) 25% b) 52% c) 74% d) 85% 74% while the region increased by + 40% Source: Greater Grand Rapids Realtor Association, 2016

Avg. Sold Price & Avg. Monthly Inventory: 2002—2015 Grand Rapids (MI) 130,000 15 $122,658 13 104,000 10 78,000 $70,670 8 52,000 6 3.6 Months 26,000 4 1.5 Months 0 1 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 3,500 15 3,099 13 2,800 10 2,241 2,100 8 1,400 6 3.6 Months 700 4 1.5 Months 0 1 2011 2012 2013 2014 2015 [Left Scale] Avg. Sold Price Avg. Monthly Inventory [Right Scale] Source: Greater Grand Rapids Realtor Association, 2016

Avg. Listing vs. Sold Price: 2011—2015 Grand Rapids (MI) 100% $74,856 $87,251 $99,959 $110,283 $124,686 98% 97% 97% 96% 95% $70,670 $83,886 $96,636 $107,036 $122,658 0% 2011 2012 2013 2014 2015 Source: Greater Grand Rapids Realtor Association, 2016