Item A: Envision Eugene - Housing Mix and Industrial Lands

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While the state requires that the City plan housing for all income levels, and adjust the housing mix accordingly, planning for a different housing mix will not address the housing affordability problem altogether and a comprehensive action plan is needed to make gains in this area. The City currently has programs that support subsidized housing for lower incomes, but there is more that can be done to remove barriers to lower income subsidized and unsubsidized housing. Another important component of housing affordability is raising income levels and creating more jobs through economic development efforts. Demographics and Housing Trends- The demographic trends that have the most significant effect on housing choice include household size, age and income. Regarding household size, Eugene has a relatively low household size compared to the nation and other parts of the state. The average household size in Eugene is 2.25 people per dwelling unit (2007) and in part, reflects a declining number of households with children, an increasing number of single-person households, and an increasing number of households with older residents (household size decreases around age 55). When looking at the age make-up of those in the community, baby boomers, those 46-65 years old in 2010, and 66-85 years old by 2031, are the fastest growing population segment in Lane County. Eugene also has a larger share of college-aged people than surrounding areas, no doubt due to the presence of the University of Oregon. While it is impossible to forecast what housing choices various population groups will make and whether those choices will be different than past choices, there is a relevant correlation between age and income level that has an effect on housing choice. Younger individuals with lower incomes tend to be renters (approximately 71 percent of people age 25-34 years were renters). While 75 percent of individuals in their higher income years, between 45 and 74 years of age, are homeowners, particularly of single-family homes. Then, at age 75, homeownership rates begin to decrease. The majority of single-family detached homes are owner-occupied while the majority of multi-family homes are rented. An additional demographic trend that was considered for its impact on housing mix is the Hispanic/Latino population. While this is the fastest growing ethnic group in Eugene (259 percent increase since 1990), it represents just seven percent of the overall population, an amount that while important, is not significant enough to have an impact on housing mix. Additional Factors- Additional factors that influence the housing mix decision include community values, such as those inherent in the seven pillars that make up the Envision Eugene proposal and the resulting effect on the triple bottom line of social equity, economic prosperity, and environmental stewardship. There are also statewide trends that can be seen by looking at other Oregon jurisdictions, as well as direction that is given from state regulators. Adjusting the housing mix creates more opportunities for the housing types which the city has become deficient in, however it is important to acknowledge that the City has limited control to influence the market and future development trends. Over the past 20 years, the share of single-family housing types has held relatively steady at 59-61 percent. Flexible Implementation- S:\CMO\2011 Council Agendas\M110928\S110928A.doc