UNLOCKING YOUR WORKFORCE HOUSING POTENTIAL · UNLOCKING YOUR WORKFORCE HOUSING POTENTIAL. KATIE...

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

“... 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.”


“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.”


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.


There is l imited

oppor tunity

for s ignif icant

new housing

construction based

on past trends and

current, tradit ional

demand levels.


The age and qual ity

of housing stock

may present an

oppor tunity for

a “replacement ”

housing strategy

within specif ic

neighborhoods.


The current rental

inventor y is

inadequate in both

qual ity and options

within each of the

communities.


The majority

of housing is

“affordable” to

the workforce,

but l imited in

age, qual ity and

location.


Current commuters

are not l ikely to

dr ive s ignif icant

housing demand;

other factors

are inf luencing

their housing

decision besides

employment.


Exist ing

development

standards, cost of

construction and

avai labi l i ty of land

impede and / or

dis incentivize new

workforce housing

construction.


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?

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