THE NEED & THE OPPORTUNITY 2 THE NEED AFFORDABLE MIDDLE- - - PowerPoint PPT Presentation

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Jun 03, 2023 136 likes •307 views

1 AFFORDABLE MIDDLE- INCOME HOUSING ADVISORY COUNCIL THE NEED & THE OPPORTUNITY 2 THE NEED AFFORDABLE MIDDLE- INCOME HOUSING Seattles recent economic growth has brought tremendous ADVISORY COUNCIL opportunity and prosperity to the

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AFFORDABLE MIDDLE- INCOME HOUSING ADVISORY COUNCIL

THE NEED & THE OPPORTUNITY

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AFFORDABLE MIDDLE- INCOME HOUSING ADVISORY COUNCIL

THE NEED

Seattle’s recent economic growth has brought tremendous

pportunity and prosperity to the region—but it has also

created a dire need for more housing choices affordable to low, moderate, and middle-income households. If Seattle is to remain an equitable, welcoming, and just city, we must create more housing options so that people who work in Seattle can live in Seattle and benefit from all

ur city has to offer. We must preserve a strong community open to

working families, including our teachers, firefighters, nurses and thousands that keep our small businesses going.

The Affordable Middle-Income Housing Advisory Council will focus their efforts on creating more rental and ownership housing choices for Seattle’s middle-income earners.

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Seattle is growing fast!

From 2010-2017, employment has grown by 25% (46 new jobs per day), while housing has grown by only 13% (15 new homes per day).

*Sources: PSRC Quarterly Census of Employment and Wages, WS Employment Security Department, 2018; and Washington State Office of Financial Management, 2018

462,985 473,921 483,318 503,089 514,710 535,430 558,023 581,780 308,516 310,824 313,015 317,747 323,445 332,878 340,479 348,117

1 1.1 1.2 1.3 1.4 1.5 1.6 1.7

100,000 200,000 300,000 400,000 500,000 600,000 700,000

2010 2011 2012 2013 2014 2015 2016 2017

Jobs-to-housing ratio

Jobs:Housing Covered Employment Housing Units

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$0 $500 $1,000 $1,500 $2,000 $2,500

2010-11 2011-01 2011-03 2011-05 2011-07 2011-09 2011-11 2012-01 2012-03 2012-05 2012-07 2012-09 2012-11 2013-01 2013-03 2013-05 2013-07 2013-09 2013-11 2014-01 2014-03 2014-05 2014-07 2014-09 2014-11 2015-01 2015-03 2015-05 2015-07 2015-09 2015-11 2016-01 2016-03 2016-05 2016-07 2016-09 2016-11 2017-01 2017-03 2017-05 2017-07 2017-09 2017-11 2018-01 2018-03 2018-05 2018-07 2018-09 2018-11

Seattle Multifamily Median Rents, 2010-2018

$2,156 $1,495

2010 2011 2012 2013 2014 2015 2016 2017 2018

*Source: Based on Zillow Rent Index, 2010-2018, for Seattle City, which estimates typical asking rents for market rate units. Figures seasonally adjusted but not adjusted for inflation.

During that time, we’ve seen rents go up...

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$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000

2010-01 2010-03 2010-05 2010-07 2010-09 2010-11 2011-01 2011-03 2011-05 2011-07 2011-09 2011-11 2012-01 2012-03 2012-05 2012-07 2012-09 2012-11 2013-01 2013-03 2013-05 2013-07 2013-09 2013-11 2014-01 2014-03 2014-05 2014-07 2014-09 2014-11 2015-01 2015-03 2015-05 2015-07 2015-09 2015-11 2016-01 2016-03 2016-05 2016-07 2016-09 2016-11 2017-01 2017-03 2017-05 2017-07 2017-09 2017-11 2018-01 2018-03 2018-05 2018-07 2018-09 2018-11

Seattle Home Values, 2010-2018

…and median home values have nearly doubled.

$381,600 $728,300 2010 2011 2012 2013 2014 2015 2016 2017 2018

*Source: Based on Zillow Home Value Index, 2010-2018, for Seattle City, which estimates median home value for all ownership products (e.g. single-family, condos, townhouses). Figures seasonally adjusted, but not adjusted for inflation.

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What does this mean for Seattle’s moderate and middle-income households?

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What is considered “middle income” in the Seattle area?

2018 area median income (AMI) for one-person household is $72,000 2018 area median income(AMI) for a four- person family is $103,000 $130,000 $120,000 $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 annual income 120% of AMI for a four- person family is $124,000 60% of AMI for a four- person family is $62,000 120% of AMI for a one-person household is $87,000 60% of AMI for a one-person household is $44,000

*Source: HUD adjusted area median income for Seattle-Bellevue HUD Metro Fair Market Rent Area (King and Snohomish Counties), 2018

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Who are middle income earners in Seattle?

$130,000 $120,000 $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 annual income

*Source: Estimated incomes based on QCEW, non-QCEW, 2017

120% of AMI for a one-person household is $87,000 2018 area median income (AMI) for one-person household is $72,000 60% of AMI for a one-person household is $44,000 dental assistant $42,700 high school teacher $64,300 firefighter $78,700 2018 area median income(AMI) for a four- person family is $103,000 120% of AMI for a four- person family is $124,000 60% of AMI for a four- person family is $62,000 police officer + stay-at- home parent $84,700 two social workers $124,800 two minimum wage earners $62,400

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What is affordable rent to middle-income households?

A median one-person household can afford $1,800 per month A median income four- person family can afford $2,500 per month $3,000/mo. $2,750/mo. $2,500/mo. $2,250/mo. $2,000/mo. $1,750/mo. $1,500/mo. $1,250/mo. $1,000/mo. $750/mo. monthly rent 120% of median income can afford $2,800 per month 60% of median income can afford $1,400 per month 120% of median income can afford $2,200 per month 60% of median income can afford $1,100 per month

*Assumptions: 30% of target income toward rent and utilities

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What new rental housing has the market produced 2010-2017?

average studio $1,560* average 1-bed $2,070* average 2-bed $2,440* average 3-bed $3,980*

*Source: Dupre + Scott, 2017, average rents for occupied units built between 2010-2017

*This doesn’t even include utilities!

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The market is producing mostly smaller rental housing choices. Since 2010, less than 20% of new multi- family units have been larger than 800 square feet.

15.40% 64.70% 17.10% 2.70%

Multi-Family Units by Size

0 to 400 400-800 800-1200 >1200

Square footage:

*Source: King County Assessor, 2018, for multifamily units built 2010-2018.

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Many moderate to middle income rental households are experiencing housing cost-burden.

*Source: HUD CHAS, 2010-2014

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What is affordable homeownership to middle-income households?

A median one-person household can afford a $275,200 home A median income four- person family can afford a $393,000 home $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 sale price 120% of median income can afford a $471,7000 home 60% of median income can afford a $235,900 home 120% of median income can afford a $333,100 home 60% of median income can afford a $165,200 home

*Assumptions: PITI set at 35% of income, 10% down, 5% fixed 30-year

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Are homeownership

pportunities

affordable to middle-incomes?

A median one-person household can afford a $275,200 home A median income four- person family can afford a $393,000 home $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 sale price 120% of median income can afford a $471,700 home 60% of median income can afford a $235,900 home 120% of median income can afford a $333,100 home 60% of median income can afford a $165,200 home townhouse $751,800 SF house $934,300 condo $602,200

*Source: King County Assessor, 2018 Seattle home sales

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Many moderate to middle income ownership households are experiencing housing cost-burden.

*Source: HUD CHAS, 2010-2014

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AFFORDABLE MIDDLE- INCOME HOUSING ADVISORY COUNCIL

The Affordable Middle-Income Housing Advisory Council will focus their efforts on creating more rental and ownership housing choices for Seattle’s middle-income earners. The Advisory Council brings expertise in investment and housing development and will make recommendations based on both economic analysis and true and deep engagement with communities and neighborhoods throughout our City. They will elevate investment strategies and innovative construction models to close the growing gap between housing that City subsidy may support and what the private market is producing—including tools to ensure equitable development in newly designated Opportunity Zones.