Item B: Opportunity Siting Update

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Market Demand Task Team Research In winter of 2008, the Task Team studied several factors relevant to market demand including: ? Demographic data on local housing demand. ? Characteristics of the local multiple family market ? Housing affordability trends and levels of unmet housing needs in the Eugene-Springfield area. A key finding the task team learned was that 15-37% of owners (varies by whether mortgage held) and 58% of renters spend more than 30% of their income on housing, indicating a proportionally high housing cost burden (2006 American Community Survey). Team members also developed and conducted informal surveys among local property managers and real estate professionals to get some sense of what types of dwellings were in demand and at what price ranges. Although the number of respondents was limited, the results were revealing. Realtors reported a growing interest in a broader range of housing types from townhouses to condominiums and mixed-use buildings, with a high interest in condominiums in price ranges below $250,000. Property managers and realtors reported a pent-up demand for multiple-family housing in the downtown, southeast and university areas. Consultant Report and Findings This preliminary research was supplemented by a professional analysis in October 2008 of Eugene housing market demand by Johnson-Gardner consultants (See Supplemental Attachment 3). The findings conclude that multiple family rental housing is in great demand in Eugene at all price points. Eugene- Springfield has historically low vacancy rates, and those rates in spring of 2008 were lower than 4% with many unit types at much lower rates. Given the difficulty of financing single family home loans in the current market, the demand for rental apartments is expected to climb. Because Johnson-Gardner was also asked to produce a market analysis for hypothetical development on the Naval Reserve site, the study outlined the demographic characteristics of the market in the target area of west and southwest parts of Eugene. The types of households seeking rental housing include all age groups, income groups, and household composition. The study targeted the portion of the market earning over $15,000 per year. The expected demographics of the market demand during the next five years in the west and southwest parts of Eugene, as concluded in the report are: “The primary target market for the project is likely to be a mixture of both local and newly in-migrating young graduate student and professional singles and couples as well as pre retirees and retirees desiring a quality apartment unity, located close to employment, the University and services. Proximity to the elementary school will also attract families.” “Middle-income households of working age are the likely primary rental profile at the subject site. Based on the total demand profile, there will be roughly 2785 households earning between $25,000 and $150,000 seeking rental housing per year.” (Includes new and turnover renters.)