Ordinance No. 20585 - Laserfiche WebLink

Home Browse Search

3.4.4 Housing Cost Summary The analysis of housing value, sales prices, and rents presented in this section leads us to the conclusion: Housing sales prices increased faster than rental rates. Over the ten-year period between 2001 and 2011 average sales price increased by 35%, compared to a 23% change in average rental costs. Actual changes in sales price varied substantially, with large increases in housing price between 2001 and 2007 and nearly as large decreases in sales price between 2007 and 2011 The housing sales market has cooled from its peak. Eugene's single- family housing starts have declined since 2006. The overall number of permits for new single-family residences issued region -wide remained remarkably stable until 2007, when they declined dramatically. • Rental costs increased. Rental costs increased in Eugene by one- quarter to one-third over the 2000 to 2012 period. Rental costs increased for all types of units. • Rental costs in Eugene are higher than in nearby cities. Rents were between 10% and 25% higher than smaller cities near Eugene (e.g., Springfield, Veneta, or Cottage Grove). The implications of the data shown in the prior sections is that ownership costs increased much faster than rents and incomes. Table 23 underscores this trend for Eugene. • Between 1989 and 1999, incomes increased about 41 % while median owner value increased 109%. Rents increased 46% --nearly the same as incomes. • Since 1999, the data show housing costs have increased faster than incomes, with a 4% increase in median household income, compared to a 33% increase in median rents and 56% increase in median owner value. Finally, the results show that the median owner value was 2.9 times median household income in 1989 — a figure that increased to 6.3 by 2010. Page 90 ECONorthwest Part 11 — Eugene Housing Needs Analysis