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Home My WebLink About06 12 2017 FSS Life Cycle Housing Presentation6/6/2017 1 Life-Cycle Housing Making sure all our residents can find a place to call home… City of Prior Lake June 12, 2017 Your Presenters … Julie Siegert – Housing Director Scott County CDA Stacy Crakes – Business Development Director Scott County CDA – First Stop Shop Jo Foust – Business Development Specialist Scott County CDA – First Stop Shop Economic Development – First Stop Shop Housing Julie Stacy Jo 6/6/2017 2 Purpose of this Presentation To provide you with information to assist with the update of your Comprehensive Plan Housing & Economic Competitiveness Chapters Introduce information from the Scott County Housing Study Analyze resident employment and jobs in our communities Look at current and projected housing needs and how you are planning for these ** This information is not designed to provide you with all the answers, rather it is intended to set the stage for further discussion as you update your comprehensive plan. Life-Cycle Housing AGENDA LIFE-CYCLE HOUSING – HOUSING STUDY WHAT DOES “AFFORDABLE” LOOK LIKE? DEMOGRAPHICS, LABOR FORCE & LOCAL JOBS YOUR LOCAL HOUSING STATISTICS: TEST YOUR KNOWLEDGE YOUR EXISTING AND FUTURE LIFE-CYCLE HOUSING 6/6/2017 3 Maxfield Research & Consulting Overview 32 Years Experience Diverse Client Base Multi-Sector Capable Residential Commercial Public + Private Entities Market Driven Strategies Recommending Highest & best uses Provide Actionable Plans Maxfield Research & Consulting, LLC is a full-service real estate advisory company providing strategic value to our private and public sector clients’ real estate activities Scott County CDA: Comprehensive Housing Studies ~ 2006, 2011, 2016 Mary Bujold, Maxfield HOUSING TYPES AND LIFE-CYCLE HOUSING 6/6/2017 4 Please place a circle sticker next to each type of housing you have lived in: Single family home Apartment Dorm Duplex Townhouse Active Senior Living Manufactured Home Note: the same unit may fall under two categories. Please mark both (i.e. active senior living and apartment). Types of Housing – Exercise Types of Housing Single Family Home Apartment/Condo Duplex Townhome Dormitory Manufactured Home Active Senior Living 6/6/2017 5 What is Life-Cycle Housing?? What is Life-Cycle Housing?? 1 - Entry-level householders Often prefer to rent basic, inexpensive apartments May need low or moderate income rental housing if incomes are low Usually singles or couples without children in their early 20’s Will often “double-up” with roommates in apartment setting 3 - Move-up Homebuyers Typically prefer to purchase newer, larger, and therefore more expensive single-family homes Typically families with children where householders are in their late 30’s to late 40’s or early 50’s 2 - First-time Homebuyer & Move-up Renters May purchase modestly-priced single- family and townhomes or rent more upscale apartments Usually married or cohabiting couples, some with children, in their mid-20’s to mid-30’s, growing group that prefers to rent 4 - Empty-Nesters & Never-Nesters Prefer owning, but an increasing proportion seek lower maintenance housing products, ownership and rental Generally couples in their late 50’s to late 60’s Maxfield – 2016 Scott County Housing Study pg. 134 6/6/2017 6 What is Life-Cycle Housing?? 5 - Younger Independent Seniors Had preferred owning, but growing group that wants to rent Increasing proportion moving to lower- maintenance housing Will often move (at least part of the year) to retirement havens in the Sunbelt and desire to reduce their responsibilities for upkeep and maintenance Generally in their early 70’s to early 80’s 6 - Older Seniors May need to move out of their single- family home due to physical and/or health constraints or a desire to reduce their responsibilities for upkeep and maintenance Generally single females (widows) in their early 80’s or older Maxfield – 2016 Scott County Housing Study pg. 134 LOCAL HOUSING DEMAND (MAXFIELD) 6/6/2017 7 Maxfield Study - Housing Demand Maxfield Study – Rental Terms Market Rate All rental projects that do not have income restrictions, regardless of housing affordability. Renters pay flat rent amount. Shallow Subsidy Units targeted to moderate income households, typically restricted to 60% of the Area Median Income (AMI) or below. Renters pay flat rent amount. Deep Subsidy Units targeted to extremely low income households (30% of AMI). The renter pays 30% of their income towards rent and the housing provider receives a Federal subsidy 6/6/2017 8 General Occupancy & Senior Housing Definition: All ages rental housing Includes: Market Rate Shallow Subsidy (incomes primarily at 30%-60% AMI) Deep Subsidy (incomes at or below 30% AMI) General Occupancy: Rental Housing General Occupancy: For-Sale Housing Senior Housing Definition: Any housing that is for- sale. Includes: Single Family Townhomes / Condominiums Maxfield – 2016 Scott County Housing Study pg. 62, 93, 110 AMI = Area Median Income Definition: Any housing development that is restricted to people age 55 or older. Includes: Active Adult Congregate Assisted Living Memory Care Skilled Nursing Care WHAT DOES “AFFORDABLE” LOOK LIKE? 6/6/2017 9 What is “Affordable” Housing? Levels of Affordability Twin Cities Region, 2016, HUD In 2016, HUD’s AMI for a household (HH) of four (4) in the Minneapolis-St. Paul-Bloomington Metropolitan Statistical Area is $85,800 As a “rule of thumb”, housing is affordable if a household is spending no more than 30% of their income on housing expenses (mortgage, taxes & insurance). % of Area Median Income (AMI)Income limit Family of 4 30% Housing per month Est. home to purchase w/ 5% down 30% $25,750 ($12.38 per hour) $644 $83,189 60% $51,480 ($24.75 per hour) $1,287 $166,314 80% $65,700 ($31.58 per hour) $1,643 $212,254 120% $102,950 ($49.50 per hour) $2,574 $332,595 data source https://www.huduser.gov/portal/datasets/il.html https://www.huduser.gov/portal/datasets/mtsp.html What is “Affordable” Housing? Levels of Affordability Twin Cities Region, 2016, HUD In 2016, HUD’s AMI for a household (HH) of four (4) in the Minneapolis-St. Paul-Bloomington Metropolitan Statistical Area is $85,800 As a “rule of thumb”, housing is affordable if a household is spending no more than 30% of their income on housing expenses (mortgage, taxes & insurance). % of Area Median Income (AMI)Income limit Single Person HH 30% Housing per month Est. home to purchase w/ 5% down 30% $18,050 ($8.68 per hour) $451 $ 65,000 60% $36,060 ($17.34 per hour) $902 $ 150,000 80% $46,000 ($22.12 per hour) $1,150 $ 175,000 120% $72,050 ($34.64 per hour) $1801 $ 290,000 data source https://www.huduser.gov/portal/datasets/il.html https://www.huduser.gov/portal/datasets/mtsp.html 6/6/2017 10 What is “Affordable” Housing? As a “rule of thumb”, housing is affordable if a household is spending no more than 30% of their income on housing expenses (mortgage, taxes & insurance). Source: 2040 Thrive MSP Housing Policy Plan DEMOGRAPHICS, LABOR FORCE & LOCAL JOBS 6/6/2017 11 Housing and Economic Development? Why is First Stop Shop involved in a presentation about housing? Changing Demographics – Age Trends State of Minnesota Scott County 1 in 5 Minnesotans will be 65+ by 2030 19.1%26.8% 6/6/2017 12 Changing Demographics – Labor Force Scott County’s Projected Labor Force to 2025 Source: Tabulated from the Integrated Public Use Microdata Series Growth in Minnesota’s Labor Force Source: DEED, Calculated from Minnesota State Demographic Center population projections and 2011-2015 American Community Survey 5-Year Estimates Labor Force – People Living in Prior Lake Source: DEED – Compiled from American Community Survey (ACS) Total Resident Workers 2015 5-Year ACS = 12,720 Median Household Income in 2015 = $96,405 6/6/2017 13 Source: https://onthemap.ces.census.gov/ 2014 – All Jobs Data Count Share Total Employed (Jobs) in Prior Lake 7,874 100.0% Employed in Prior Lake but Living Outside 6,332 80.4% Employed and Living in Prior Lake 1,542 19.6% Workers Living in Prior Lake 12,683 100.0% Living in Prior Lake but Employed Outside 11,141 87.8% Living and Employed in Prior Lake 1,542 12.2% Jobs in Prior Lake Prior Lake Resident Workers Labor Force – People Living in Prior Lake Source: https://onthemap.ces.census.gov/ Labor Force Jobs Located In Prior Lake Where Are The Workers Coming From? People Who Live in Prior Lake Where Do They Work? 6/6/2017 14 Jobs in Prior Lake (2016) Source: DEED, Quarterly Census of Employmentand Wages (QCEW),2016 – Q2 Total Jobs Q2, 2016 = 7,925 Jobs in Scott County (2016) Source: DEED, Quarterly Census of Employmentand Wages (QCEW),2016 – Q2 Total Jobs Q2, 2016 = 47,985 6/6/2017 15 Top 3 Industries by Age Group Jobs in Scott County Retail Trade (14.3%) Arts, Entertainment, & Recreation (18.1%) Accommodation & Food Service (24.3%) Age 14 – 24 (8,476) Age 25 – 34 (9,427) Age 35 – 44 (9,408) Construction (14.0%) Manufacturing (12.1%) Accommodation & Food Service (12.9%) Construction (14.3%) Health Care & Social Assistance (10.2%) Accommodation & Food Service (15.3%) Age 45 – 54 (9,814) Age 55 – 64 (6,923) Age 65+ (2,160) Construction (11.1%) Manufacturing (15.4%) Accommodation & Food Service (11.4%) Manufacturing (8.2%) Retail Trade (16.4%) Accommodation & Food Service (15.9%) Construction (8.8%) Manufacturing (16.9%) Accommodation & Food Service (12.4%) Source: U.S. Census Bureau, Quarterly Workforce Indicators (QWI) – Ages in Career Life Accommodation and Food Services Top Employing Occupations in Minnesota Occupation Median Wage (Stateof MN) 1 Maids and Housekeeping Cleaners $10.64 2 Hotel, Motel, and Resort Desk Clerks $10.25 3 Waiters and Waitresses $9.04 4 Cooks, Restaurant $11.71 5 Maintenance and Repair Workers, General $20.07 6 Lodging Managers $19.47 7 Dining Room and Cafeteria Attendants and Bartender Helpers $9.19 8 Bartenders $9.19 9 Landscaping and Grounds-keeping Workers $12.53 10 Janitors and Cleaners $12.50 11 Supervisors of Housekeeping and Janitorial Workers $19.13 12 Dishwashers $9.28 13 Recreation Workers $11.73 14 Hosts and Hostesses, Restaurant, Lounge, and Coffee Shop $9.19 15 Food Servers, Non-restaurant $11.18 Source: DEED – Compiled from American Community Survey (ACS) 6/6/2017 16 Jobs in Scott County - Wages Industry Average Wages Arts, Entertainment, and Recreation $21,320 Other Services (except Public Administration) $27,612 Accommodation and Food Services $27,716 Retail Trade $28,496 Agriculture, Forestry, Fishing and Hunting $33,176 Admin, Support, Waste Mgmt, and Remediation Svcs $36,348 Real Estate and Rental and Leasing $38,844 Transportation and Warehousing $38,896 Health Care and Social Assistance $43,732 Public Administration $50,180 Information $50,804 Educational Services $53,248 Finance and Insurance $54,132 Professional, Scientific, and Technical Services $56,940 Wholesale Trade $61,724 Construction $66,092 Management of Companies and Enterprises $73,788 Mining $74,516 Manufacturing $77,688 Utilities $88,920 Source: DEED, Quarterly Census of Employmentand Wages (QCEW),2016 – Q2 Prior Lake Jobs - Top 7 Jobs in Scott County - Wages Industry Average Wages Arts, Entertainment, and Recreation $21,320 Other Services (except Public Administration) $27,612 Accommodation and Food Services $27,716 Retail Trade $28,496 Agriculture, Forestry, Fishing and Hunting $33,176 Admin, Support, Waste Mgmt, and Remediation Svcs $36,348 Real Estate and Rental and Leasing $38,844 Transportation and Warehousing $38,896 Health Care and Social Assistance $43,732 Public Administration $50,180 Information $50,804 Educational Services $53,248 Finance and Insurance $54,132 Professional, Scientific, and Technical Services $56,940 Wholesale Trade $61,724 Construction $66,092 Management of Companies and Enterprises $73,788 Mining $74,516 Manufacturing $77,688 Utilities $88,920 Source: DEED, Quarterly Census of Employmentand Wages (QCEW),2016 – Q2 % of Area Median Income (AMI) Income limit Family of 4 30% Housing per month Income limit Single Person HH 30% Housing per month 30% $25,750 ($12.38 per hour) $644 $18,050 ($8.68 per hour) $451 60% $51,480 ($24.75 per hour) $1,287 $36,060 ($17.34 per hour) $902 80% $65,700 ($31.58 per hour) $1,643 $46,000 ($22.12 per hour) $1,150 120% $102,950 ($49.50 per hour) $2,574 $72,050 ($34.64 per hour) $1801 As a “rule of thumb”, housing is affordable if a household is spending no more than 30% of their income on housing expenses (mortgage, taxes & insurance).Prior Lake Jobs - Top 7 6/6/2017 17 YOUR LOCAL HOUSING STATISTICS: TEST YOUR KNOWLEDGE Do you know? What percentage of your renter occupied units were occupied by those 65+ years? How many of your households are paying over 30% of their income on housing (not affordable)? What is your allocation, as noted by the Met Council, for affordable units by 2030? Kahoot! Exercise Participant Exercise 6/6/2017 18 Kahoot! Exercise Instructions On your phone or tablet, open your browser and go to: Kahoot.it Enter the Game Pin shown on the board Enter a name – feel free to use an anonymous name if you’d like! When questions are shown you will have 20 seconds to select an answer on your device READY?!? Link Participant Exercise A Summary Will Be Provided at the End! Kahoot Summary – Prior Lake 6/6/2017 19 YOUR EXISTING AND FUTURE LIFE-CYCLE HOUSING Prior Lake’s Existing Housing Prior Lake Scott County Housing Category Number Percentage Number Percentage 1-unit attached and detached 8,281 89% 43,389 89% 2 to 9 unit (medium density) 332 3.6% 1,532 3% 10+ units (high density) 690 7.4% 3,217 7% Manufactured Homes, etc. 2 0% 622 1% Total 9,305 100% 48,760 100% 6/6/2017 20 Recent Housing Construction Recent Housing Construction 6/6/2017 21 Housing Cost Comparison Housing Cost Comparison - Scott County 6/6/2017 22 Housing Cost Comparison +$248 (+28%) +$133 +$89 Affordability of Your Housing 6/6/2017 23 ANALYZING YOUR COMPREHENSIVE PLAN Meeting Met Council Allocations At or below 30% AMI = 411 31 to 50% AMI = 212 Subtotal (Deep Subsidy) = 623 Deep Subsidy Shallow Subsidy 51 to 80% AMI = 131 Subtotal (Shallow Subsidy) = 131 Number of affordable units allocated for Prior Lake per Met Council 2017 Community Page March 28, 2017(2021 to 2030) Total Affordable Units Allocated = 754 6/6/2017 24 Making sure all our residents can find a place to call home… Does your plan address the changing demographics? Does your plan address the correlation between employment and wages and the housing you are planning for? Is sufficient land planned for each stage of life-cycle housing? Do zoning regulations include options for each stage of life-cycle housing (size of lot, zoning classification, etc.)? As you develop your plan… Mapping out your future housing Comprehensive Plan – Future Land Use Map 6/6/2017 25 Questions? Comments? Thank you! Julie Siegert – Housing Director jsiegert@scottcda.org –or- 952.402.9022 Stacy Crakes – Business Development Director scrakes@scottfss.org –or- 952.496.8613 Jo Foust – Business Development Specialist jfoust@scottfss.org –or- 952.496.8830