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HomeMy WebLinkAboutHousing Presentation FINAL (2)Workforce Housing Envision Madison Findings “The present economic research finds that business wants talent, but talent wants place— so more businesses are relocating to places. When drilled further the research finds Missing Middle Housing is the fastest growing preference because it has the ‘place’ quality talent seeks. Hence development of Missing Middle is now recognized as a housing AND economic development strategy.” —James Tischler, Michigan State Housing Development Authority Based on income levels, Idaho ties with Montana and Hawaii for the lowest affordability in the nation [for housing], according to the National Association of Realtors. 64% of a single earner’s wages go toward a median home’s mortgage in Madison County Same Affordability As… •San Diego County, California (68%) •Los Angeles County, California (66%) Median Home Price in Madison County $408,000 Median Home Price in Madison County $408,000 Income needed $100K+ Salary at $60,000 = $200,000 home $205,000 –815 sqft $205,000 –856 sqft $406,900 –1649 sqft $499,000 –2899 sqft My Experience 7.74% •If home prices are stable, rates need to fall to 3.55% in order to be back to historical average. •If prices grow 5%, rates need to fall to 3.16%. •If prices stay the same but incomes increase 5%, rates need to fall to 3.95% •A mortgage rate that stays around 8% means median home prices need to fall by 35%, to $265,000. •If rates stay at 8% and prices at current levels, income needs to increase by 63%. •If home prices are stable, rates need to fall to 3.55% in order to be back to historical average. •If prices grow 5%, rates need to fall to 3.16%. •If prices stay the same but incomes increase 5%, rates need to fall to 3.95% •A mortgage rate that stays around 8% means median home prices need to fall by 35%, to $265,000. •If rates stay at 8% and prices at current levels, income needs to increase by 63%. •If home prices are stable, rates need to fall to 3.55% in order to be back to historical average. •If prices grow 5%, rates need to fall to 3.16%. •If prices stay the same but incomes increase 5%, rates need to fall to 3.95% •A mortgage rate that stays around 8% means median home prices need to fall by 35%, to $265,000. •If rates stay at 8% and prices at current levels, income needs to increase by 63%. •If home prices are stable, rates need to fall to 3.55% in order to be back to historical average. •If prices grow 5%, rates need to fall to 3.16%. •If prices stay the same but incomes increase 5%, rates need to fall to 3.95% •A mortgage rate that stays around 8% means median home prices need to fall by 35%, to $265,000. •If rates stay at 8% and prices at current levels, income needs to increase by 63%. •If home prices are stable, rates need to fall to 3.55% in order to be back to historical average. •If prices grow 5%, rates need to fall to 3.16%. •If prices stay the same but incomes increase 5%, rates need to fall to 3.95% •A mortgage rate that stays around 8% means median home prices need to fall by 35%, to $265,000. •If rates stay at 8% and prices at current levels, income needs to increase by 63%. “Nationwide, the small detached house has all but vanished from new construction. Only about 8 percent of new single-family homes today are 1,400 square feet or less. In the 1940s, according to CoreLogic, nearly 70 percent of new houses were that small.” Building Home-value Equity "Middle-income buyers face the largest shortage of homes among all income groups, making it even harder for them to build wealth through homeownership," said Nadia Evangelou, NAR senior economist and director of real estate research. "A two-fold approach is needed to help with both low affordability and limited housing supply. It's not just about increasing supply. We must boost the number of homes at the price range that most people can afford to buy." “The present economic research finds that business wants talent, but talent wants place— so more businesses are relocating to places. When drilled further the research finds Missing Middle Housing is the fastest growing preference because it has the ‘place’ quality talent seeks. Hence development of Missing Middle is now recognized as a housing AND economic development strategy.” —James Tischler, Michigan State Housing Development Authority Only about 2,000 duplexes were constructed in 2022 in the U.S. What are the characteristics of Missing Middle Housing? Marketable Density vs Scale House-Scale Buildings Lower Perceived Density Lower Perceived Density Twin home Twin Home Duplex: Stacked Fourplex: Stacked Courtyard Building Cottage Courts Mansion Apartment Townhouses Triplex Stacked What’s the next step? Phase 1 -Education and Analysis Phase 1 -Education and Analysis Phase 2 -Integration Phase 2 -Integration Phase 2 -Integration Utilize Form-Based Code Phase 2 -Integration Phase 2 -Integration Phase 3 -Establishing Formal Housing Entities Phase 3 -Establishing Formal Housing Entities Community Land Trust model Phase 3 -Establishing Formal Housing Entities Hailey, Idaho Model Phase 3 -Establishing Formal Housing Entities Utah’s “First-time Homebuyers Assistance Program” (New Construction) Phase 3 -Establishing Formal Housing Entities •“Rocky Mountain Housing Fund” Model “The present economic research finds that business wants talent, but talent wants place— so more businesses are relocating to places. When drilled further the research finds Missing Middle Housing is the fastest growing preference because it has the ‘place’ quality talent seeks. Hence development of Missing Middle is now recognized as a housing AND economic development strategy.” —James Tischler, Michigan State Housing Development Authority Thank you