01/10/2023 - Regular - Additional Docs-HAP Presentation
Port Orchard Housing Action Plan
Existing Conditions and Community Engagement Update
January 10, 2023
City Council
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Updated Schedule
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Existing Conditions & Housing Needs Analysis Report
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Housing Action Plan Priorities
Address limited housing diversity, even amid historic levels of construction
Document the recent increases in housing prices and who it is affecting most
Verify housing data by talking to stakeholders and community members
Identify actions to promote additional “missing middle” housing such as accessory dwelling units, townhomes, and cottages
Identify actions to promote additional affordable/subsidized housing
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Image: Opticos Design
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Population
Population growing much faster than Kitsap County and Washington State
2020 population: 15,587
2022 population: 16,400
2044 target: 26,087
10,500 new residents by 2044
Recent growth rate close to 3% annually
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Data Sources: 2020 American Community Survey 5-Year Estimates, Washington Office of Financial Management (OFM), Kitsap County Regional Planning Policies
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Demographics
More diverse than Kitsap County, particularly share of Hispanic residents.
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Younger population than regional and statewide averages
Data Source: 2020 American Community Survey 5-Year Estimates
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Households
69% of households are families
11% are one-person households over 65
40% of households are renters, higher than county and statewide averages
Potential for greater housing instability
Mismatch between household size and housing unit size shows demand for smaller units
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Data Source: 2020 American Community Survey 5-Year Estimates
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Income
Median Household Income is $71,719
Higher for ownership households
Lower than state and county averages but has increased 21% since 2010, adjusted for inflation
46% of residents earn less than 80% of the HUD Median Family Income
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Data Source: 2020 American Community Survey 5-Year Estimates
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Housing Type & Age
63% of housing units are single-family detached
Housing stock is relatively recently constructed, with 57% of housing built since 1990, compared with 40% countywide.
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Data Source: 2019 U.S. Census Bureau Longitudinal Employer Household Dynamics (LEHD), via Census OnTheMap Tool
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Housing Production
Housing permit data shows significant increase in housing production over the past decade
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Data Source: HUD State of the Cities Data Systems, City of Port Orchard
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Housing Production
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Data Source: HUD State of the Cities Data Systems, City of Port Orchard
5,198 units expected to be completed in the coming years, doubling the city’s housing inventory
Diversity of housing products remains low, with the majority being either single-family or large apartment projects
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Project Spotlights: Middle Housing
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Valley Quadplex
Recently completed off Mitchell Avenue
Construction cost of $200 per square foot
Good example of infill
McCormick Village ADU’s
Conceptual mixed-use project
23 acre site with up to 153 lots
Single-family homes all with ADU’s above alley garages
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Project Spotlights: Mixed-Use Projects
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Bay Street Apartments
Recently permitted in Downtown
39 units and 500 sq. ft. commercial space
One level of structured parking
The Ramsey
Corner of Sedgwick Road and Ramsey Road
3-story buildings with 99 apartments
Structured parking on a compact site
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Vacancy
Multifamily vacancy rates are falling overall, currently around 3.5%
Overall vacancy rates in the city have been falling over the past decade, showing high demand for housing.
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Data Source: Costar
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Housing Costs
Average home values are $511,600 and average rents are $1,638 in mid-2022.
5% increase for ownership units and 9% increase for rent over the past decade
Rents and home values have been rising faster than incomes since 2017
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Data Sources: 2020 American Community Survey 5-Year Estimates, Zillow
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Housing Affordability
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Data Sources: 2020 American Community Survey 5-Year Estimates, Zillow, Freddie Mac, Leland Consulting Group
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Housing Cost Burden
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Data Source: 2015-2019 HUD Comprehensive Housing Affordability Strategy (CHAS)
70% of the lowest-income households earning 30% of the median income or lower are spending more than half their income on housing costs
More than half of households earning under 80% of the median income are cost-burdened
Households are considered “cost-burdened” if they pay more than 30% of their income in housing costs, and “severely cost-burdened” if they pay more than 50% of their income in housing
costs
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Housing Needs by Income, 2044
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Data Source: 2015-2019 HUD Comprehensive Housing Affordability Strategy (CHAS)
5,291 new housing units will be needed in Port Orchard by 2044, according to Washington Department of Commerce targets.
About 1,300 of these will be for higher-income earners based on current income distribution
1,100 units will be needed for households earning 30% AMI or lower
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Key Code Observations
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The City has a good foundation of supportive zoning standards to support a variety of housing
Recent ADU ordinance removes barriers
The City does not have minimum density standards in any zone
Residential development allowances are regulated in multiple chapters, which creates some opportunity for confusion
Complicated lot dimension standards
The minimum “site size” provided only for cottages and townhouses discourages those types
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Draft Community Engagement Report
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Stakeholder Interviews
14 stakeholder interviews with elected officials, builders and developers, affordable housing agencies, and general residents
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Port Orchard Mayor
Port Orchard City Council
Kitsap Housing Authority
Disney & Associates
Port Orchard Chamber of Commerce
Tarragon
Contour Construction
McCormick Communities
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Stakeholder Interviews
Stability of military presence and increased telecommuting is driving more people to live in Port Orchard
Diversity of housing options are a challenge; middle housing is hard to build and hard to find, but could be popular
Middle housing could be built more with some code simplification, regulatory updates, and updated permitting processes
Strong link between housing growth and infrastructure needs
Frequent interest in seeing more housing in downtown
While homeless service capacity is limited, there is interest in more supportive housing like shelters, SROs, and group living
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Housing Survey Key Themes (To Date)
About one-third of survey takers are cost burdened
Renters are strongly interested in moving to single-family homes, and homeowners are somewhat interested in a variety of ownership housing types (townhouses, cottages, etc.)
Renters are generally more open to zoning updates to provide a variety of housing
The most important locational feature of housing is being in a neighborhood safe for walking and bicycling
Lack of day care and some types of medical services were identified as related cost and quality of life issues
Based on preliminary survey results from 98 respondents; survey closes January 20
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Housing Survey Closes January 20
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Link: www.surveymonkey.com/r/8DV5FQ9
Survey participants can enter a raffle to win one of three $50 Visa gift cards
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We now have 107 survey responses. It’d be great if we can get to 150 by the time the survey closes on January 20, so anything you do to help get the word out would help.
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Housing Survey – Stories
Renter: “Due to rent and other cost increases and poor well-paying job opportunities we’ve been essentially trapped here for 5 years, and the situation is leading me to look elsewhere
for our future.”
Homeowner: “Even with our two middle class jobs, we find it exceptionally expensive to afford our modest home. If something were to happen…we'd be struggling a lot to pay the mortgage.”
Homeowner: “I would like to see renting as a valid option for folks who have found themselves downsizing or are approaching retirement age who might not have access or time to pay a
home loan, but can still live independently and with dignity.”
Business owner: "Kids can't afford housing and live with us. All our employees live outside the city because it's cheaper.”
Renter: “We wanted to buy a home as first time buyers but find the process a bit difficult. Renting a home is getting to be expensive with rent being $2100 for two bedroom duplexes.”
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Next Steps
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