State of the State: Housing Perspectives from the field State of - PowerPoint PPT Presentation

State of the State: Housing Perspectives from the field

State of the State: Housing Perspectives from the field This report is prepared by Sagamore Institute For additional information, please contact Dr. JoAnna M. Brown, Senior Research Fellow, Super Cities - Sagamore Institute at joannab@sagamoreinstitute.org. 2902 N. Meridian Street The Levey Mansion Indianapolis, IN 46206 Report available at www.sagamoreinstitute.org/supercities In partnership with

What is the state of Indiana post- Great Recession?

DEMOGRAPHIC DRIVERS – HOMEOWNERSHIP SOCIO ECONOMIC Research Methodology RENTAL HOUSING HOUSING STABILITY AND SUPPORTS

Study Participants 0.4% Accounting 2.2% Advocacy 4.0% Building/Construction 0.7% Civic Organization 14.5% Community Action/Community Development 2.5% Consulting 3.3% Development: Private Research 6.2% Development: Non-profit 2.9% Faith-based Methodology 5.1% Financial Institution/Investment 1.4% Housing Counseling Journalist 0.4% Landbanking 0.0% Legal/Attorney 2.5% Local Government/Public Policy 18.8% 0.4% Market Analysis 28.6% Non-profit 6.2% Property Management 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Source: Sagamore Institute, Housing Perspectives Survey Outcomes Statewide (N=274)

Study Participants 27.6% Central 10.9% East Indiana NE Indiana 12.9% 9.7% NW Indiana Research 8.2% SE Indiana Methodology 7.9% SW Indiana 2.6% West Indiana All of Indiana 15.8% 4.4% Outside of Indiana 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Percent Source: Sagamore Institute, Housing Perspectives Survey Outcomes Statewide (N=274)

Homebuyers and renters face a lack of affordable CURRENT PERSPECTIVES inventory and an extremely competitive market. • High price of construction =lack of affordability/availability • Shortage of low-rent stock • Mismatch between affordable housing and desirable housing Views from housing professionals and advocates working in the field.

Housing Perspectives: Housing Stability and Support-Survey Outcomes - Statewide Top key issues identified as critical/important by housing professionals and advocates: 1. Addressing the gap between how much affordable housing units are needed vs. existing housing units. (89.4%) 2. Aligning supportive services with housing. (79.9%) 3. Increasing housing options for the lowest income households. (79.9%) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1. Addressing the gap between how much affordable housing units… 32.8% 56.6% 2. Aligning supportive services with housing. 36.5% 43.4% 3. Increasing housing options for the lowest income households. 42.7% 37.2% 4. Ensuring a baseline of quality in every housing unit. 34.7% 42.3% Housing Stability and Support 5. Improving access to jobs, good schools, transit, and other… 37.6% 39.4% 6. Imbalance between strong demand and lowered levels of housing… 38.7% 36.1% 7. Helping older adults age in place. 29.9% 43.8% 8. Addressing homelessness. 35.4% 37.6% 9. Preserve/maintain existing housing stock to reduce displacement. 28.1% 43.8% 10. Expanding housing options for people facing barriers (criminal… 28.8% 38.0% 11. Addressing foreclosures/vacancies/blight. 40.1% 21.9% 12. Improving access to rental assistance/support. 23.0% 37.6% 13. Addressing racial segregation and concentrations of poverty or… 22.3% 36.5% 14. Increasing landlord acceptance of housing vouchers. 21.5% 31.0% 15. Transitioning renters into homeowners. 17.9% 32.5% 16. Examining eviction reform. 16.8% 28.5% Critical Important Somewhat important Least important Not an Issue/NA Current Perspectives: Homeownership Survey Outcomes (N=274)

New Construction of Single-Family Homes (Year Built = Year Closed): Statewide Trends 6,000 5,177 Number of New Homes Constructed 5,000 4,000 3,112 3,000 1,745 2,000 1,000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 New Construction Source: Indiana Business Research Center - Indiana University Purdue University- Indianapolis, StatsIndiana, 2019.

Housing Perspectives: Rental Housing - Survey Outcomes Statewide Top key issues identified as critical/important by housing professionals and advocates: 1. Addressing the physical condition of distressed rental properties. (81.3%) 2. Addressing shortfall in housing affordable to extremely low-income renter households. (77.0%) 3. Addressing the decline in low-rent housing units. (71.9%) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1. Addressing the physical condition of distressed rental properties. 40.1% 41.2% 2. Addressing shortfall in housing affordable to extremely low-… 43.1% 33.9% 3. Addressing the decline in low-rent housing units. 38.3% 33.6% 4. Preserving naturally occurring affordable housing. 25.2% 44.5% 5. Access to service providers to support permanent supportive… 27.0% 42.3% Rental Housing 6. Diversifying the rental housing stock by size and type. 26.6% 42.3% 7. Preserving public and other government-assisted housing. 22.6% 41.2% 8. Building more rental housing. 27.4% 35.4% 9. Increase funding for rental assistance/supports. 23.7% 38.7% 10. Access to additional gap financing. 22.3% 39.8% 11. Addressing government regulations that increase development… 27.7% 33.2% 12. Helping small landlords maintain quality rental housing. 24.5% 35.0% 13. Addressing government regulations that increase development… 25.5% 30.7% 14. Examine/reduce screening criteria and barriers. 15.7% 32.8% 15. Engaging employers in developing rental housing. 9.5% 31.4% Critical Important Somewhat important Least important Not an Issue/NA Source: Sagamore Institute, Housing Perspectives Survey Outcomes Statewide (N=274)

Cost-burdened Renter Households by Incomes Work Hours/Week at Minimum Wage 100% 88% Percent of Renter Households 90% 73% 73% 80% 70% 60% 50% 40% 29% 30% 19% 20% 4% 3% 10% 1% 0% AT EXTREMELY LOW EXTREMELY LOW INCOME 51% TO 80% AMI 81 TO 100% AMI INCOME TO 50% AMI % of Renter Households with Cost Burden % of Renter Households with Severe Cost Burden Source: National Low-Income Housing Coalition, 2019. Source: National Low-Income Housing Coalition, 2019.

Affordable and Available Rental Units per 100 Households at or below Threshold 120 108 107 Percent of Affordable and Available Rental Units 100 (per 100 Households or below Threshold) 77 80 60 37 40 20 0 AT EXTREMELY LOW INCOME EXTREMELY LOW INCOME TO 50% AMI 51% TO 80% AMI 81 TO 100% AMI Affordable and Available Rental Units per 100 Households at or below Threshold Source: National Low-Income Housing Coalition, 2019.

Housing Perspectives: Rental Housing - Survey Outcomes Statewide Top key issues identified as critical/important by housing professionals and advocates: 1. Addressing the physical condition of distressed rental properties. (81.3%) 2. Addressing shortfall in housing affordable to extremely low-income renter households. (77.0%) 3. Addressing the decline in low-rent housing units. (71.9%) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1. Addressing the physical condition of distressed rental properties. 40.1% 41.2% 2. Addressing shortfall in housing affordable to extremely low-… 43.1% 33.9% 3. Addressing the decline in low-rent housing units. 38.3% 33.6% 4. Preserving naturally occurring affordable housing. 25.2% 44.5% 5. Access to service providers to support permanent supportive… 27.0% 42.3% Rental Housing 6. Diversifying the rental housing stock by size and type. 26.6% 42.3% 7. Preserving public and other government-assisted housing. 22.6% 41.2% 8. Building more rental housing. 27.4% 35.4% 9. Increase funding for rental assistance/supports. 23.7% 38.7% 10. Access to additional gap financing. 22.3% 39.8% 11. Addressing government regulations that increase development… 27.7% 33.2% 12. Helping small landlords maintain quality rental housing. 24.5% 35.0% 13. Addressing government regulations that increase development… 25.5% 30.7% 14. Examine/reduce screening criteria and barriers. 15.7% 32.8% 15. Engaging employers in developing rental housing. 9.5% 31.4% Critical Important Somewhat important Least important Not an Issue/NA Source: Sagamore Institute, Housing Perspectives Survey Outcomes Statewide (N=274)

Number and Share of Renter Households 800 31.5% 789.6 780 31.0% 754.1 760 30.5% Number of Households Percent of Households 740 (in thousands) 30.0% 720 29.5% 700 29.0% 680 28.5% 660 28.0% 640 27.5% 620 600 27.0% 2000 2009 2010 2011 2012 2013 2014 2015 2016 2017 Renter Households Share of Renter Households Source: U.S. Census Bureau of ACS 3-year estimates and Indiana Business Research Center - Indiana University Purdue University- Indianapolis, StatsIndiana, 2019.

Low-Rent Housing Stock – Statewide Trends, 2005 to 2017 Great Recession 500 80% 458.1 438.3 436.4 450 419.3 416 70% 412.2 394.8 391.2 381.5 400 373.9 352.5 60% Percent of Units 350 323.3 Number of Units (in thousands) 50% 300 227.8 250 40% 200 30% 150 20% 100 10% 50 0 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Number of Units Renting for Less than $600 Share of Units Renting for Less than $600 Source: U.S. Census ACS, 2005 to 2017.