Item A: Envision Eugene - Housing Mix and Industrial Lands

Home Browse Search

ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Envision Eugene - Housing Mix and Industrial Lands Meeting Date: September 28, 2011 Agenda Item Number: A Department: Planning and Development Staff Contact: Lisa Gardner www.eugene-or.gov Contact Telephone Number: 541-682-5208 ISSUE STATEMENT This work session provides an opportunity to discuss Eugene’s future mix of single-family and multi- family homes to be planned for over the next 20 years. Information on potential expansion areas for industrial land will also be discussed. BACKGROUND Housing Mix Eugene’s total projected housing demand of 15,000 new homes is based on the population forecast of 34,000 additional residents over the next 20 years. The housing demand must be further refined to estimate how many of those 15,000 homes should be planned as single-family housing and how many should be planned as multi-family housing. This is what is referred to as the future housing mix. It should be noted that for the purposes of this discussion, the multi-family category includes attached housing types such as duplexes and row houses, as well as apartments and condominiums. Staff has received input from several groups regarding housing mix and considered reports, studies and research. While there are arguments to be made for each end of the housing mix spectrum, the following are notable points regarding housing affordability, trends and community values that will be presented for discussion. Housing Affordability- A housing affordability analysis conducted by ECONorthwest has shown that Eugene has a deficit of housing for low and some moderate income levels. This analysis uses a base assumption that households should pay no more than the U.S. Department of Housing and Urban Development recommended 30 percent of income on mortgage costs or rent plus utility costs. The analysis specifically shows that in 2008, Eugene had a need for an additional 9,000 units that would be affordable to households with an annual income of $25,000 or less. Analysis also shows that households with lower incomes are more likely to live in multi-family housing than those households with higher incomes. To that point, in 2000, 60 percent of households earning less than $17,500 lived in multi-family housing types compared to 80 percent of households earning more than $45,000 that lived in single-family housing. However, there is also information that points to the fact that, due to high construction costs, it may not be feasible to build new, unsubsidized multi-family housing that is affordable to the lower income levels. S:\CMO\2011 Council Agendas\M110928\S110928A.doc