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assumptions about the dynamics of markets and policies than from the <br />specific estimates of future demand and need. Thus, we start our housing <br />analysis with a framework for thinking about housing and residential <br />markets, and how public policy affects those markets. <br />1.1.1 Housing demand versus need <br />The language of Goal 10 and ORS 197.296 refers to housing need: it <br />requires communities to provide needed housing types for households at <br />all income levels. Goal 10's broad definition of need covers all <br />households—from those with no home to those with second homes. <br />State policy does not make a clear distinction between need and demand. <br />Following is our definition, which we believe to be consistent with <br />definitions in state policy: <br />Housing need can be defined broadly or narrowly. The broad <br />definition is based on the mandate of Goal 10 that requires <br />communities to plan for housing that meets the needs of <br />households at all income levels. Goal 10, though it addresses <br />housing, emphasizes the impacts on the households that need that <br />housing. Since everyone needs shelter, Goal 10 requires that a <br />jurisdiction address, at some level, how every household will be <br />affected by the housing market over a 20 -year period. Public <br />agencies that provide housing assistance (primarily the Department <br />of Housing and Urban Development - HUD, and the Oregon <br />Housing and Community Services Department - HCS) define <br />housing need more narrowly. For them, households in need do not <br />include most of the households that can purchase or rent housing <br />at an "affordable" price, consistent with the requirements of their <br />household characteristics. Households that cannot find and afford <br />such housing have need: they are either unhoused, in housing of <br />substandard condition, overcrowded, or paying more than their <br />income and federal standards say they can afford. <br />• Housing market demand is what households demonstrate they are <br />willing to purchase in the market place. Growth in population <br />means growth in the number of households and implies an increase <br />in demand for housing units. That demand is met, to the extent it <br />is, primarily by the construction of new housing units by the <br />private sector based on its judgments about the types of housing <br />that will be absorbed by the market. ORS 197.296 includes a market <br />demand component: buildable land needs analyses must consider <br />the density and mix of housing developed over the previous five <br />years or since their most recent periodic review, whichever is <br />greater. In concept, what got built in that five-year period was the <br />Part 11 — Eugene Housing Needs Analysis ECONorthwest Page 9 <br />