Transcript Slide 1

Connecticut’s
Housing Situation
May 2006
Affordable housing has been a problem for
people who are homeless
or very poor.
Affordable housing is now an issue that affect
middle-income residents. It is now an
an economic growth issue, too.
A shortage of affordable housing causes
other problems:
• Classroom failure
• Transportation
congestion
• Public safety risks
• Family pressures
The Blue Ribbon Commission to Study Affordable
Housing reported in 2000 there was a need for
68,000 affordable units.
CHFA has financed slightly fewer than 6,900 rental
units and group home units (the vast majority rental)
between 1999 and 2004 -- about 10% of the
identified need.
A new Partnership-sponsored study now concludes
that 257,000 households in Connecticut are
burdened by their housing situations.
Housing prices have skyrocketed, particularly in
areas that have traditionally been affordable:
•
•
•
•
Southeastern CT
Naugatuck Valley
South Central CT
Central CT
Capitol Region Council of Governments (CRCOG) just reported:
Only 21% of home sales were affordable to moderateincome buyers in 2005, down from 40% in 2001
Between 2000 and 2005,
housing prices have risen 63.6%
while wages have risen 18.5%.
70
Percent Increase
60
50
Wages
Housing
The gap is
widening
40
30
20
10
0
2000
2001
2002
2003
2004
2005
CT Median Sales Price as of
December 2005:
$328,000
(Source: CAR)
Qualifying income:
$74,000 (Source: CAR) $100,000 (Fannie Mae)
The “housing wage” is what a person must earn per
hour to afford a typical 2BR apartment without having
to pay more than 30% of family income on housing.
• In Connecticut the housing wage has gone from
$14.22 to $19.30 in five years.
• About $18.90/hour in the Hartford/New Britain
metropolitan area (up from $15.60 in 2004) and $15.60
in the New London/Norwich metropolitan area
• Housing wage is $28.88/hour in the Stamford/
Norwalk metropolitan area.
The median salaries for 294 of
630 occupations in the state don’t
reach the housing wage…
They include:
Cargo supervisors
School bus drivers
Metal fabricators
Tailors and dressmakers
Timing device assemblers
Welders
Woodworkers
Plant and systems operators
Printers
Machinists
Bakers
Bookbinders
Cabinet makers
Radio mechanics
Telephone linemen
Watch repairers
Auto mechanics
Painters
Carpet layers
Floor sanders
Shipping clerks
Telephone operators
Medical secretaries
Police dispatchers
Tax preparers
Lab technicians
EMTs
Home health aides
Dental assistants
Animal control workers
Chefs
Tree trimmers
Pest control workers
Bookkeepers
Computer operators
Travel agents
Barbers and hairdressers
Fitness trainers
CBIA reported in January
2006 there are labor shortages
in 14 skilled manufacturing
occupations, from tool-anddie makers to plant managers
and R&D staff.
The reasons: applicants lacked skills or
found the cost of living AND HOUSING
COSTS too high.
Connecticut’s population – and workforce – are getting
older. We lost 20-34 year old workers at a rate much greater
than the national average from 1990-2000, and the trend
has continued.
% Change in Age Category, 1990-2000 Census, CT vs. U.S.
55 to 59
45 to 54
35 to 44
25 to 34
20 to 24
-30%
-20%
-10%
0%
10%
Connecticut
20%
United States
30%
40%
50%
The new study concludes that 257,000 households in
Connecticut can’t afford appropriate housing.
The study assumes 10-15% of them – and some
households making the median income or more – will
leave Connecticut to find housing that’s affordable in
other states, resulting in an annual state revenue loss
of well over $100 million.
In addition, workers and businesses won’t come to
Connecticut because housing costs are so high. This
“opportunity cost” will cost the state untold “tens of
millions” of dollars in never-realized state revenues.
It’s a supply problem…
According to Fannie Mae,
Connecticut was 47th in housing
construction per capita in 2004.
Misconceptions:
Affordable housing will lower my property values
A recent MIT study in eight Massachusetts communities
found that multi-family, mixed-income housing
development had no impact on property values. This
replicates other studies.
Misconceptions:
Affordable housing will increase my town’s
education costs
Studies show 4-5-bedroom homes generate more school
costs than mixed-income housing, especially if they
include few 3-bedroom units.
Northeastern Univ. study for Massachusetts legislature
showed additional education cost of affordable housing
is negligible.
Connecticut’s school-age population (5-17) will shrink
from 590,000 in 2000 to 562,000 by 2015.
Misconceptions:
Age restricted housing will avoid school costs
As empty-nesters move into 55+ housing, typically in the
same town, they often move out of a home that’s bought
by a family, resulting in a net increase in students.
States facing the same housing supply
shortage as Connecticut are offering various
incentives to their towns:
• Massachusetts is providing cash grants to cover towns’ additional
service costs if they zone for higher density housing. And its
Commonwealth Capital program provides financing to towns that
make zoning and land use policy less restrictive.
• Illinois allows towns to develop regional affordable housing
solutions – towns can pay other towns in their region to assume
some of the affordable housing burden.
HOMEConnecticut’s Goal: Keep
families together and keep workers and businesses
in Connecticut by increasing the supply of housing
that’s affordable.
• Provide municipalities with professional assistance, infrastructure
needs and help them cover their costs.
• Let public know that “affordable housing” has changed:
beautifully designed, functional, lower density, needed by
hard-working families and individuals.
• Preserve existing affordable housing.
• Develop rehab, rental, mortgage subsidies to make existing
homes affordable.
Old Farms Crossing
Avon, CT
Metro Realty Group
Watch Factory Condominiums
Cheshire, CT
Berardino Realtors
Heritage Glen
Farmington, CT
Metro Realty Group
Southwood Square
(HOPE VI public housing redevelopment)
Stamford, CT
Stamford Housing Authority
before
after
Mortsen – Putnam Heights
Hartford, CT
Broad Park Development & Corporation for Independent Living
before
after
215/225 Sheffield Avenue
New Haven
Neighborhood Housing Services of New Haven
Flagg Road
West Hartford
West Hartford Interfaith
Housing Coalition
Hubbard Woods
Guilford, CT
Mutual Housing Association of South Central Connecticut
at The Lyceum
227 Lawrence Street
Hartford, CT 06106
860/244-0066
[email protected]
David Fink
Policy Director
www.ctpartnershiphousing.com