Agenda - Council Work Session - 11/24/2009

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DEMOGRAPHIC ANALYSIS tional equity or savings to contribute toward a home purchase in the form of a down pay- ment. . As previously stated, the target market for workforce housing is largely comprised of young- er households, older households, singles and large families. These segments of the popula- tion are the most likely to meet the income-qualifications for affordable housing products. Homeownership Rate Trends Table D-6 shows the number of owner and renter households in the PMA and SMA from 1990 to 2000 based on information from the U.S. Census Bureau. Key points derived from the table are the following: . In 1990, 84% of all households in the Market Area owned their housing. By 2000, that per- centage increased to 85%, as roughly 90% of the newhouseholds added during the 1990s were homeowners. Contributing to the increase in the homeownership rate during the 1990s were the aging of the baby boomers into peak homeownership years, increased development of single- family homes and for-sale townhomes in the Market Area, low mortgage interest rates and easier financing qualifications that made homeownership more obtainable for younger households. . In 2000, the homeownership rate peaked in the 55 to 64 age cohort (92%) and then declined gradually with household age. While a similar proportion of householders age 75+ and 25 to 34 rented their housing in 2000, the number of young adult renters (2,931) outnumbered the older adult renters (1,141). · As the chart below shows, the proportion of renter households is highest in the younger and older age cohorts. With growth forecast in cohorts on both ends of the spectrum over the next five years (Table D-2), it is likely that demand for rental housing products will increase. A portion ofthese young renters will need affordable housing since households in this age group have substantially lower incomes than middle aged households. · Despite having moderate incomes, most seniors often are not candidates for affordable rental housing since they are already homeowners and will exceed the income-qualifications for rental housing once they access the equity in their homes. For older seniors who choose to rent, some will choose active adult (i.e. no services) senior housing while others will need housing that offers additional services, such as assisted living or memory care. MAXFIELD RESEARCH INC.