07/26/2022 - Regular - Additional Docs-HAP
Port Orchard Housing Action Plan
July 26, 2022
City Council
SCOTT
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Agenda
Introductions
Project context, goals, and scope
Community engagement strategy
Key research questions
Next steps
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SCOTT
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Bob Bengford
Scott Bonjukian
Markus Johnson
Consultant Team
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Chris Zahas
Andrew Oliver
Staff
Roles
Public engagement, code analysis, land use and urban design expertise
Real estate economics, market analysis, development incentives expertise
BOB?
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Project Background
Port Orchard has set the stage with:
Housing goals and policies in the 2016 Comprehensive Plan
Adopting subarea plans for centers (Downtown, Ruby Creek)
Multifamily tax exemption program
Several major zoning code updates to help make housing easier to develop
To address the additional work that needs to be done, Port Orchard was awarded a grant from the Washington State Department of Commerce to create a Housing Action Plan (HAP).
A HAP is a policy document that has more specific data, goals, and strategies to promote safe and affordable housing options for all
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SCOTT
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Project Background
Challenges in housing diversity:
2,300 new apartments in the pipeline – mostly garden-style
Struggling to see desired urban infill and midrise development
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Image: Opticos Design
Port Orchard is not seeing much in the way of “missing middle” housing types (duplexes, townhouses, cottages, etc.)
SCOTT
Staff provided these quick stats.
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Missing Middle Housing Examples
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SCOTT
These housing types give people more homeownership options, a greater range of price options, and more options to accommodate changes in lifestyle or family situation.
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Comprehensive Plan – Key Housing Goals
Housing Goal 1. Ensure that the City’s housing stock responds to changes in desired housing types based on demographic trends and
population growth.
Housing Goal 2. Ensure that housing is affordable and available to all socioeconomic levels of Port Orchard residents.
Housing Goal 5. Promote the efficient use of residential land in order to maximize development potential.
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Housing Stock
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Source: City of Port Orchard
Two-thirds of Port Orchard’s housing stock is comprised of single-unit residences. The remainder is evenly split between multi-unit buildings of varying sizes.
Port Orchard has a higher share of multi-unit buildings than Kitsap County overall.
The number of housing units has increased by about 26% since 2010, an increase of 1,188 units.
ANDREW
Two-thirds of Port Orchard’s housing stock is comprised of single-unit residences. The remainder is evenly split between multi-unit buildings of varying sizes.
Port Orchard has a higher share of multi-unit buildings than Kitsap County overall.
The number of housing units has increased by about 26% since 2010, an increase of 1,188 units.
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Housing Stock
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Port Orchard’s housing stock is considerably newer than Kitsap County and Washington, with over half the housing units built since 1990, compared with only 35% statewide.
Source: 2020 ACS 5-Year Estimates, Table DP04
ANDREW
Port Orchard’s housing stock is considerably newer than Kitsap County and Washington, with over half the housing units built since 1990, compared with only 35% statewide.
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Affordability
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Since 2015, incomes have stagnated while housing prices have increased.
Inflation-adjusted rents increased 42% from 2010-2020, an annual increase of 5%
The inflation-adjusted average value of a home in Port Orchard increased 33% between 2010 and 2020, an annual increase of 5%.
Source: 2020 ACS 5-Year Estimates, Tables S2503, DP04, Zillow
ANDREW
From 2010 to 2015, incomes were keeping pace with rent and housing prices in Port Orchard. Since then, incomes have stagnated while housing prices have increased.
Inflation-adjusted census-reported rents increased 42% from 2010-2020, an annual increase of 5%, outpacing rent increases in Kitsap County and Washington.
The inflation-adjusted average value of a home reported by Zillow in Port Orchard has increased 33% between 2010 and 2020, an annual increase of 5%.
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Affordability
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Source: 2020 ACS 5-Year Estimates, Tables S2503, DP04, Zillow, Freddie Mac, Leland Consulting Group
There is a large gap in what local households earn compared to Port Orchard’s current state of housing prices.
ANDREW
30% is a rule of thumb that is often used. If you pay more than 30%, that’s consisted cost-burdened, and we’ll want to determine how many people that affects. It matters because housing
is not the only thing we need to pay for in life. Food, transportation, healthcare, transportation, etc. are all competing.
The average Port Orchard household earns enough to purchase a home worth about $303,000. However, the median sales price in 2021 in the City was $468,702 – a gap of $165,690. Or, to
put it another way, the median household would need to earn $39,217 more to be able to afford the median home.
The median household in Port Orchard earns slightly more than needed to pay the median rent as reported on the Census. However, Census rents are often an underestimation. Furthermore,
the median renter household would be about $190 per month short of the amount needed to afford the median rental unit in Port Orchard.
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Rental Market Vacancy Rate
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Source: 2020 ACS 5-Year Estimates, Table DP04
Port Orchard’s vacancy rates have dropped in recent years, currently 2% for rental housing
A healthy rental market has vacancy rates of 5%
When vacancy goes down, prices tend to go up, and vice versa
ANDREW
Port Orchard’s vacancy rates have dropped in recent years, currently at 2.5% for ownership and 2.0% for rental
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Project Scope and Schedule
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SCOTT
Indicate grant end date is flexible, but we think we can do the project faster than needed. We have some flex time, ultimately
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Discussion
What are your top 1-2 goals or priorities for this project and housing in Port Orchard in general?
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SCOTT
As part of the introduction, we want to hear from each of the council members
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Community Engagement
Stakeholder interviews to gather input from public officials, housing advocates, housing providers, and others
Community survey to identify demand for housing types among current population, with a focus on the needs of cost-burdened residents
Check-in meeting with Planning Commission and City Council to present the Existing Conditions and Housing Needs Analysis Report (could be formatted as a public workshop)
Other?
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MARKUS
Community survey – could be two surveys potentially, one about housing needs, and the other a visual preference survey on housing types that is targeted and strategic later in the process
once we have more info and after talking to stakeholders.
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Key Research Questions
What are the most pressing housing needs in Port Orchard for each segment of the population?
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MARKUS
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Key Research Questions
What are the most pressing housing needs in Port Orchard for each segment of the population?
What are we most concerned about and most hopeful about for residential development in Port Orchard over the next 10 years?
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MARKUS
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Key Research Questions
What are the most pressing housing needs in Port Orchard for each segment of the population?
What are we most concerned about and most hopeful about for residential development in Port Orchard over the next 10 years?
What code updates can be made to meet the needs of all economic segments of the Port Orchard community?
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MARKUS
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Key Research Questions
What are the most pressing housing needs in Port Orchard for each segment of the population?
What are we most concerned about and most hopeful about for residential development in Port Orchard over the next 10 years?
What code updates can be made to meet the needs of all economic segments of the Port Orchard community?
What are the biggest longstanding or new barriers to affordable and diverse residential development in Port Orchard?
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MARKUS
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Key Research Questions
What are the most pressing housing needs in Port Orchard for each segment of the population?
What are we most concerned about and most hopeful about for residential development in Port Orchard over the next 10 years?
What code updates can be made to meet the needs of all economic segments of the Port Orchard community?
What are the biggest longstanding or new barriers to affordable and diverse residential development in Port Orchard?
What new or updated tools, policies, staff capacity, and funding are most likely to meet Port Orchard’s housing goals?
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MARKUS
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Next Steps
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SCOTT
From here, we’ll be doing the existing conditions review, planning the stakeholder interviews, etc. We want open dialogue throughout the whole project.
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