HOUSING NEEDS ASSESSMENT: TOOELE COUNTY

Transcription

1 2011 HOUSING NEEDS ASSESSMENT: TOOELE COUNTY PREPARED BY JAMES WOOD 3/9/2011

2 PURPOSE OF THE STUDY This study was prepared by James A. Wood for the Tooele County Office of Economic Development. The purpose of the study is to address the affordable housing needs of Tooele County, the Unincorporated County and the county s seven municipalities; Grantsville, Ophir, Rush Valley, Stockton, Tooele City, Vernon and Wendover. This study presents the characteristics of the current housing stock and the housing market in the study area. The State of Utah recognized in House Bill 295 (State Statute , , 62A-9-138, ) that the availability of moderate income housing is a statewide concern that requires municipalities and counties to propose a plan for moderate income housing as part of a general plan. Moderate income housing is defined as housing occupied or reserved for occupancy by households with a gross household income equal to or less than 80 percent of the median gross income of the county. In Tooele County the median income for a household of four was $65,600 in 2010 (Source: U.S. Department of Housing and Urban Development). Moderate income housing is therefore defined as housing that is affordable (housing and utility costs, utility costs apply to renters only, do not exceed 30 percent of household income) for a household with an income of $52,480. The spirit of the statute is to ensure that households who desire to live in Tooele County should not be excluded from living in the county simply because they are moderate or low income households. The statute states municipalities should afford a reasonable opportunity for a variety of housing, including moderate income housing to meet the needs of the people desiring to live there and to fully participate in all aspects of neighborhood and community life. This housing analysis complies with the statute which requires an estimate of the existing supply of moderate income housing and the need for moderate income housing for the next five years. In addition to the requirements of the statute, the study relies on the Utah Housing Manual, published by the Department of Community and Economic Development to identify data needs and provide an analytical framework. Tooele County Housing Needs Assessment Page 2

3 TABLE OF CONTENTS Purpose of the Study... 2 Executive Summary... 4 I. Housing Supply Conditions: Characteristics of Housing Inventory... 8 Summary of Current Housing Conditions II. Housing Demand: Demographic and Economic Conditions Demographic Trends Economic and Employment Trends Summary of Tooele County Economy III. Housing Affordability Affordability Calculations Affordability for Existing Owner Occupied Housing Affordability for Median Income Households Affordability for Moderate Income Households Affordability for Low Income Households Affordability for Extremely Low Income Households Affordability of New Residential Housing Rental Housing Affordability Appendix Statistical Housing Profiles: Cities and Unincorporated Salt Lake County VITA James Wood Tooele County Housing Needs Assessment Page 3

4 EXECUTIVE SUMMARY Utah s affordable housing legislation (HB295) does not mandate that a community s housing market meet the homeownership desires of all moderate, low and extremely low income households. Rather the legislation encourages a community to provide a reasonable opportunity for a variety of affordable housing for moderate income households. The results of this housing needs analysis show that the Tooele County housing market satisfies the language of HB295. The county s housing market has a substantial number of homeownership opportunities for moderate income households while affordable housing opportunities for low and extremely low income households are primarily met by the county s affordable rental housing. Housing Affordability in 2010 Housing affordability in Tooele County is derived from home sales and new construction data (see below). For example, over the past five years 59.6 percent of all existing homes and condominiums sold in the county were affordable to moderate income households. Over the same period 13.6 percent of all existing homes and condominiums sold were affordable to low income households. Percent of Existing Homes and Condominiums Sold That Were to Moderate and Low Income Households Total Existing Units Sold Number To Moderate Income % Number to Low Income % Tooele Co. 4,337 2, % % Tooele City 2,788 1, % % Grantsville % % New homes and condominiums were also affordable to moderate income households. Forty-nine percent of all new homes and condominiums built in Tooele County since 2006 were affordable to moderate income households. In Grantsville City nearly 66 percent of new homes and condominiums were affordable to moderate income households. Percent of New Homes and Condominiums Sold That Were to Moderate Income Households Total New Homes Sold Number To Moderate Income % Tooele Co. 1, % Tooele City % Grantsville % Housing Needs Assessment Compared to most counties, especially urban counties, Tooele has a very affordable housing inventory. The local housing market is performing well in providing affordable housing to those households in Tooele County with incomes above 50 percent AMI. Tooele County Housing Needs Assessment Page 4

5 Only six percent of all homeowners in Tooele County have severe housing cost burdens (paying more than 50 percent of income for housing). Tooele County has the lowest percentage share of severely cost burdened homeowners among seven major counties in Utah; this low percentage of cost burdened owners indicates a relatively affordable housing market. Percent of Home Owners and Renters with Severe Housing Cost Burden Owner Renter Box Elder 6.3% 11.4% Davis 6.3% 14.8% Salt Lake 9.6% 19.5% Tooele 6.0% 20.0% Utah 8.6% 21.1% Washington 10.7% 16.8% Weber 7.0% 17.9% Source: HUD CHAS Moderate Income Households ( =<80% AMI) - In 2010 the number of housing units (owner and rental) affordable to moderate income households totaled 9,600. In the same year there were 7,600 homeowners and renters with incomes at 80% or less AMI. Hence, for moderate income households the supply exceeds the demand by some 2,000 units, indicating a very affordable housing market. For those households with incomes below 50 percent AMI ($32,800 for family of four) there is a deficit of affordable housing. Low Income Households (=< 50% AMI) In 2010 the number of housing units (owner and rental) affordable to low income households totaled 3,550. The number of households with income less than 50 percent AMI in 2010 was 4,750. Consequently the demand for low income housing exceeds supply by 1,200 units, i.e. a deficit of 1,200 units. Extremely Low Income Households (=<30% AMI) In 2010 the number of housing units (owner and rental) affordable to extremely low income households was less than 1,000 units. The number of extremely low income households was 2,850. There is a deficit of at least 1,500 units for extremely low income households. The housing deficit or shortage of affordable housing for those households at 50 percent or less AMI forces these households to take on higher housing costs. These households end-up in higher cost housing which results in higher cost burdens. Nearly two-thirds of all low and extremely low income households are renters. The rental inventory provides most of the affordable housing for those households under 50 percent AMI. Tooele County currently has 16 affordable housing projects with a total of 760 units; these units account for 21.1 percent of the rental inventory. Tooele County Housing Needs Assessment Page 5

6 Low Income Tax Credit Communities in Tooele County Apartment Community Address City Subsidy Units Willow Creek (Senior) 236 West Plum Street Grantsville RD Senior 83 Grantsville Apartment 278 West Main Grantsville RD Orchard Park (Approved Credits) Country Haven Lane Grantsville Tax Credit 63 Clark Street Apartments 334 East Clark Street Grantsville Tax Credit 24 Old Mill Stansbury 160 East Hilary Lane Unincorporated Tax Credit 128 Somerset Gardens (Senior) 143 North 400West Tooele RD Senior 28 Oquirrh View Apartment (Senior) 552 North 270 East Tooele RD Senior 16 Canyon Cove Senior Housing (Senior) 178 East Vine Street Tooele HUD Senior 21 Remington Park Retirement (Senior) 495 Utah Avenue Tooele RD Senior 72 Lake View Apartments 742 North 100 East Tooele Tax Credit 76 Valley Meadows 582 North Shay Land Tooele Tax Credit 40 Tooele CROWN Scattered Sites Tooele Tax Credit 11 Tooele Gateway Apartments 232 W. Fenwick Lane Tooele Tax Credit 130 Westwood Mesa 780 West 770 South Tooele Tax Credit 22 Landmark Apartments 350 West 400 North Tooele HUD 52 Briarwood Apartments 145 Gardenia Way Wendover RD Family 32 Five-Plex Tooele Public Housing 5 Total 760* *Does not include the proposed Orchard Park. Source: Utah Housing Corporation and Tooele County Housing Authority. Forty-three percent of all renters in Tooele County have moderate housing cost burdens and twenty percent have severe housing cost burdens. At least 50 percent of those with severe cost burdens are households at less than 30 percent AMI. A disproportionate share of those with severe housing cost burdens are single-parents with children. The greatest need is for family rental units at less than 50 percent AMI. The number of renters with household income below 50 percent AMI and experiencing a severe housing cost burden is estimated at 700 renters. Tooele County Housing Authority administers 215 Section 8 vouchers. The waiting list is now at 2.5 years and increasing due to the recession. The need for affordable low income rental units is also confirmed by the 100 percent occupancy of the 98 subsidized units owned by the Tooele County Housing Authority. Over the next five years the number of households in Tooele County will increase by at least 2,500. In order to meet the needs of these new households and improve affordability for existing low and extremely low income households an additional affordable (<50% AMI) rental housing units will be needed over the five-year period. The additional rental units will be located, depending on demand and land prices, between Tooele City, unincorporated county and Grantsville City. While Wendover has an ample supply of affordable owner and rental housing the critical housing need for the city is an improvement in the quality of housing. The city s housing inventory is near substandard and has significant levels of overcrowding. A small tax credit apartment project (less than 20 units) and some Crown homes on scattered sites would help improve housing quality and choice. Tooele County Housing Needs Assessment Page 6

7 Special Needs Populations Five of subsidized apartment projects in Tooele County are Senior housing apartments with a total of 220 units. The Senior rental market has sufficient affordable units to meet current demand. Senior projects are not recommended. Low Income Senior Rental Projects in Tooele County Units Type Willow Creek 83 RD Senior Somerset Gardens 28 RD Senior Oquirrh View Apartment 16 RD Senior Canyon Cove 21 HUD 202 Remington Park 72 Tax Credit Total 220 Source: HUD, Tooele County HA and Utah Housing Corporation. There are, at most, 900 households in Tooele County that have a disabled person and have incomes below 80 percent AMI and pay more the 30 percent of their income for housing. Owner households account for 460 of these households with disabled persons and renter households account for 440 households. Thirteen percent of all renters have some type of disability. Therefore, any new apartment projects should provide or set aside 5 percent of project units as accessible units. Housing advocates and policymakers should be sensitive to the need and availability of accessible, affordable rental units. The 2010 point-in-time headcount of homelessness in Tooele County shows that there were four homeless families with children. All of these families were sheltered. There were two families without children and one was unsheltered. The chronically homeless estimate was 8 individuals with 2 sheltered and 6 unsheltered. It is likely the homeless population has increased in 2011 with the severity of the recession. Tooele County s unemployment rate has risen from 3.7 percent in January 2008 to 8.7 percent in January Coordinated efforts between county officials, nonprofits and religious organization are recommended to address the housing needs of the homeless population. Tooele County Housing Needs Assessment Page 7

8 I. HOUSING SUPPLY CONDITIONS: CHARACTERISTICS OF HOUSING INVENTORY Housing Inventory By the end of 2010 Tooele County had nearly 19,000 occupied dwelling units in its housing inventory. Eighty-two percent of these dwelling units were owner occupied and 18 percent were renter occupied Table 1.1. Tooele City accounts for 54 percent of owner occupied units in the county and 56 percent of renter occupied units. Unincorporated Tooele County ranks second in concentration of housing. The unincorporated county has 4,153 owner occupied units and 750 renter occupied units. Unincorporated Tooele County is the location of 27 percent of all owner occupied dwelling units in the county and 22 percent of the rental units. Table 1.1 Housing Inventory: Tooele County and Cities 2010 Total Occupied Units Share of County Inventory Owner Occupied Share of County Inventory Renter Occupied Share of County Inventory Tooele County 18, % 15, % 3, % Grantsville 2, % 2, % % Ophir % % 3 0.1% Rush Valley % % % Stockton % % % Tooele City 10, % 8, % 1, % Vernon % % % Wendover % % % Unincorporated 4, % 4, % % Source: Estimates by James Wood. In Tooele County owner occupied units account for 82 percent of the housing units and rental units account for 18 percent of the inventory Table 1.2. Statewide rental units account for about 25 percent of all housing units, significantly higher than Tooele County. For most cities the number of rental units ranges from percent of the occupied inventory. The one exception is Wendover where rental units outnumber owner occupied units. In 2010, fifty-five percent of all occupied units in Wendover were rental units. Table 1.2 Tenure by City and County Total Occupied Units Owner Occupied Share of City s Inventory Renter Occupied Share of City s Inventory Tooele County 18,975 15, % 3, % Grantsville 2,840 2, % % Ophir % % Rush Valley % % Stockton % % Tooele City 10,230 8, % 1, % Vernon % % Wendover % % Unincorporated 4,903 4, % % Source: James Wood. Tooele County Housing Needs Assessment Page 8

9 Residential Construction During the past decade residential construction in Tooele County has had similar pattern to statewide trends; acceleration in new homebuilding spiking in 2005 Table 1.3. However, in one respect the experience of Tooele County is different. Most cities and counties in and near the urban area hit all-time highs in new residential construction during the housing boom from But in Tooele County the number of building permits issued for new residential units did not reach record levels in the boom. The peak years for Tooele County were established in the late 1990s when the number of permits issued for three consecutive years ( ) ranged between 1,000-1,015 units; 22 percent higher than the 832 permits issued during the recent housing boom. This was a time of very high homebuilding activity in Tooele City and the unincorporated area. Demand was driven primarily by the affordability of single-family housing in Tooele County. Housing prices in Davis and Salt Lake County had increased by over 50 percent in the mid-1990s giving the Tooele County housing market a significant price advantage. Consequently, developers responded to market demand with affordable housing projects in Tooele County resulting in nearly 4,000 housing units added to the inventory in a four-year period ( ). Home building seems to have touched bottom in 2009 when only 186 permits were issued. In 2010 that number moved-up to 260 due in large part to 85 new rental units. Single-family construction was down in 2010 to 173 units from 183 units in Table 1.3 Building Permits Issued for All Types of Residential Units Tooele County Tooele City Grantsville Unincorporated Total 5,979 2, ,236 % Share 100.0% 46.0% 16.6% 37.4% Source: Bureau of Economic and Business Research, University of Utah. New residential construction since 2000 has been heavily concentrated in detached single-family homes. Of the nearly 6,000 new dwelling units built in the past ten years 5,159 have been singlefamily homes, Table 1.4. The unincorporated county has been the location for 40 percent of these new homes. From there were building permits issued for 2,132 single-family homes in the unincorporated county. Tooele City issued permits for 2,101 new single-family homes during the decade. Tooele County Housing Needs Assessment Page 9

10 Table 1.4 Building Permits Issued for New Single Family Homes Tooele County Tooele City Grantville Unincorporated Total 5,159 2, ,132 Source: Bureau of Economic and Business Research, University of Utah. The number of permits issued for multifamily owner occupied units (condominiums, town homes and twin homes) was only 218 for the decade Table 1.5. Ninety percent of these multifamily owner occupied units were in Tooele City. Since 2005 very few condominiums have been built in the county. Table 1.5 Building Permits Issued for New Condominium, Town Home and Twin Home Construction Tooele County Tooele City Grantsville Unincorporated Total Source: Bureau of Economic and Business Research, University of Utah. The number of apartment units receiving building permits has been more than double the number of condominium units Table 1.6. Over the ten-year period 521 apartment units received building permits, a 9 percent share of total permits for new dwelling units. Between 2006 and 2009 no apartments were built countywide. Eighty-five apartment units received building permits in Tooele City is the location of the greatest concentration of new apartment construction with 373 units since 2000; 72 percent of all apartment units. Tooele County Housing Needs Assessment Page 10

11 Table 1.6 Building Permits Issued for Apartment Units Tooele County Tooele City Grantsville Unincorporated Total Source: Bureau of Economic and Business Research, University of Utah. Existing Homes Sales Activity As is typically the case the number of sales of existing homes and condominiums has exceeded new residential construction Figure 1.1. For example, since 2000 existing real estate sales totaled 8,782 units compared to 5,979 new units Table 1.7. Ninety-four percent of all sales of existing homes and condominiums were detached single-family homes. Sales activity peaked in 2006 with 1,308 existing homes sold. The 644 units sold in 2010 was the lowest level of activity since From peak in 2006 to low point in 2010 sales of existing homes and condominiums dropped by 50 percent. In contrast the decline in new residential construction was considerably steeper, falling 78 percent from peak to trough. Figure 1.1 Permits Issued for New Residential Construction and Sales of Existing Homes and Condominiums 1,400 1,200 1, New Home Construction Existing Home Sales Tooele County Housing Needs Assessment Page 11

12 Table 1.7 Sale of Existing Homes and Condominiums Tooele County Single Family Condos Total , , , , , Total 8, ,782 Source: Wasatch Front Regional MLS. Unfortunately the Multiple Listing Service (MLS) data does not provide sales data for unincorporated Tooele County. But subtracting sales data for Tooele City and Grantsville City indicates that the number of homes and condominium sales in the unincorporated county was approximately 1,800 for the ten-year period. Tooele City has had 5,351 single-family homes sales and 449 condominium homes sales while Grantsville City has had 1,165 homes sales and only 15 condominiums sales since 2000 Tables 1.8 and 1.9. Sales activity for both cities and the county show a similar pattern; acceleration of sales from 2000 to 2006 when a peak was established then a four to five year decline pushing activity down to the lowest levels since Table 1.8 Sale of Existing Homes and Condominiums Tooele City Single Family Condos Total Total 5, ,800 Source: Wasatch Front Regional MLS. Tooele County Housing Needs Assessment Page 12

13 Table 1.9 Sale of Existing Homes and Condominiums Grantsville City Single Family Condos Total Total 1, ,180 Source: Wasatch Front Regional MLS. Tooele County Housing Needs Assessment Page 13

14 Summary of Current Housing Market Conditions New residential construction in Tooele County has dropped to a 15-year low. In 2009 building permits for all types of residential construction were issued for 183 units and in 2010 for 260 units. New single-family construction continued to decline into In 2009 permits were issued for 183 single-family units. In 2010 the number of permits fell to 173. In 2010 permits were issued for 85 new apartment units in Tooele City. These are the first apartment units developed in Tooele County in five years. Like new residential construction the level of sales of existing homes and condominiums in Tooele County has also declined dramatically due to the recession. Sales have dropped from 1,300 in 2006 to 644 in 2010, a 50 percent decline. With the recession the median sales price of single-family homes in Tooele County, Tooele City and Grantsville have fallen back to near their 2006 levels. In 2010 the median sales price of a singlefamily home in Tooele County was $168,000, in Tooele City $150,000 and in Grantsville $193,250 Table Table 1.10 Median Sales Price for Existing Single-Family Home Tooele County Tooele City Grantsville 2005 $138,000 $129,000 $157, $163,900 $152,500 $184, $194,000 $180,000 $239, $189,450 $175,000 $204, $175,329 $159,800 $220, $168,000 $150,000 $193,250 Source: Wasatch Front Regional Multiple Listing Service. The median sales price for new single-family homes has remained relatively stable for the county despite the recession. The sales price has fluctuated within a narrow range of $185,000 to $197,800. In Tooele City the median price of a new home has fallen from $199,000 in 2008 to $171,250 in 2010 Table Table 1.11 Median Sales Price for New Single-Family Homes Tooele County Tooele City 2006 $197,791 $186, $189,690 $193, $190,600 $199, $185,000 $175, $188,600 $171,250 Source: New Reach. For the apartment market the estimated vacancy rate is 6.2 percent. The median rent for a one bedroom unit is $485, for a two bedroom unit $650 and a three bedroom unit $685. Housing profiles for each city are provided in the Appendix. Tooele County Housing Needs Assessment Page 14

15 II. HOUSING DEMAND: DEMOGRAPHIC AND ECONOMIC CONDITIONS Demographic Trends Recently released Census data show that Tooele County is one of the fastest growing counties in Utah. Since 2000 the population of the county has increased by nearly 17,500 people, an increase of 42.9 percent Table 2.1. The most rapidly growing area of the county is the unincorporated portion that includes Stansbury Park. In the past ten years the population of Stansbury Park has more than doubled, increasing from 2,385 to 5,145; an increased of percent. Census data show that two cities lost population during the past decade; Wendover with a 8.9 percent decline in population and Rush Valley with a 1.3 percent decline. Tooele County ranks third among Utah s 29 counties in the rate of population increase since Only Wasatch and Washington County grew at a faster pace Table 2.2. Tooele County s population increase is driven by three factors: (1) proximity to Salt Lake County and its employment base of 550,000, (2) affordable housing opportunities and (3) economic and employment growth of Tooele County. Table 2.1 Population Change in Tooele County and Cities % Change Tooele County 40,735 58, % Grantsville 6,015 8, % Ophir town % Rush Valley town % Stansbury Park CDP 2,385 5, % Stockton town % Tooele City 22,502 31, % Vernon town % Wendover 1,537 1, % Balance of Tooele County 7,141 11, % Source: U.S. Census Bureau Table 2.2 Top Five Counties by Population Growth Percent Change Absolute Change Wasatch 54.7% 8,315 Washington 52.9% 47,761 Tooele 42.9% 17,483 Utah 40.2% 148,028 Duchesne 29.5% 4,236 Source: U.S. Census Bureau. Tooele County Housing Needs Assessment Page 15

16 Economic and Employment Trends In addition to demographic growth the demand for housing is closely correlated with local economic conditions. Tooele County again is one the fastest growing counties in the state in terms of job growth Table 2.3. In the past ten years the number of jobs in the county has increased from 11,130 to 15,674; a 40.8 percent increase. As Figure 2.1 shows almost all of this employment growth occurred during the period. About 15 percent of the employment growth in the county, during this period, was due to location of the 1.2 million square foot Wal-Mart Distribution Center in Grantsville in The distribution center employs over 700 workers. Table 2.3 Top Five Ranked Counties by Change in Nonfarm Employment (Counties with over 5,000 Employment) County (July) % Chg. Absolute Change Duchesne 4,764 7, % 2,478 Uintah 9,261 13, % 3,855 Tooele 11,130 15, % 4,544 Washington 33,579 45, % 12,225 Summit 15,228 18, % 3,763 Source: Utah Department of Workforce Services. Figure 2.1 Nonfarm Employment in Tooele County 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2, Source: Utah Department of Workforce Services. Tooele County Housing Needs Assessment Page 16

17 The largest private investment in Tooele County in recent years is Allegheny Technologies $460 million titanium plant in Rowley. The facility opened in late 2009 and employs over a 100 people in Tooele s manufacturing sector. Allegheny Technologies uses magnesium from another large employer in Tooele County US Magnesium to produce titanium Table 2.4. Extractive industries located around the Great Salt Lake provide relatively high paying jobs for the local labor force. In addition to extractive industrial Tooele has two large firms engaged in the treatment and disposal of hazard and low level waste; EG&G Defense Materials and Envirocare of Utah, which is part of Energy Solutions. The largest employer in Tooele County is the Department of Defense. The Tooele Army Depot stores and demilitarizes weapons and provides support for Deseret Chemical Depot which store chemical weapons. Dugway Proving Grounds is the third DOD facility in Tooele County. This facility tests and stores chemical and biological weapons for the U.S. Army. The presence of these DOD facilities increases government employment making government the largest employment sector in Tooele County. Nearly one-third of all jobs in the county are in the government sector Table 2.5. Table 2.4 Major Employers in Tooele County Major Employer Employment Department of Defense 1,000-1,999 Tooele School District 1,000-1,999 Wal-Mart 1,000-1,999 EG&G Defense Materials US Magnesium Tooele County Detroit Diesel Envirocare of Utah Mountain West Medical Source: Department of Workforce Services. Table 2.5 Nonfarm Employment by Sector in Tooele County Total Employment Tooele County % Share Tooele % Share State Mining % 0.9% Construction % 5.9% Manufacturing 1, % 9.5% Trade 1, % 15.6% Transportation/Utilities 1, % 4.0% Information % 2.5% Financial Activities % 6.0% Professional/Business Services 2, % 12.6% Health Care/Private Education 1, % 12.7% Leisure and Hospitality 1, % 9.3% Other Services % 2.9% Government 4, % 18.1% Total 15, % 100.0% Source: Utah Department of Workforce Services. Tooele County Housing Needs Assessment Page 17

18 Tooele City is the location for over half of the employment in the county Table 2.6. The extractive and hazardous waste industries and two of DOD installations are located in the unincorporated county. Table 2.6 Nonfarm Employment by City 2008 Nonfarm Employment Tooele County 15,526 Tooele City 7,870 Grantsville 2,399 Wendover 232 Unincorporated County 5,025 Source: Utah Department of Workforce Services. Summary of Tooele County Economy The Tooele County economy has experienced relatively high rates of employment growth. The county rank third among Utah s 29 counties in rate of employment growth from Tooele County s location and geography play an important role in the economy. Close proximity to Salt Lake County supports residential development. I-80, which runs just north of Tooele City and Grantsville, makes the county attractive to distribution facilities (Wal-Mart). The Great Salt Lake provides jobs in the chemical extraction industry. And finally the undeveloped open space is suitable for hazardous and low level waste treatment and chemical and biological testing. The county s unique qualities, a bedroom community with a heavy presence of DOD, distribution and mining employment provides a solid economic base for the county with prospects of above average economic growth. The expected economic growth will support additional demand for housing and the need for affordable housing in the county and major cities. Tooele County Housing Needs Assessment Page 18

19 III. HOUSING AFFORDABILITY In 2010 Tooele County had an estimated population of 58,200. Housing for this population includes 15,575 owner-occupied units and 3,400 renter-occupied units. Since 2000 the owner- and renteroccupied housing inventory has increased by nearly 6,000 units; a 43 percent increase in occupied dwelling units. Owner-occupied units have increased by 5,400 units and renter-occupied units by 520 units. Affordability Calculations HUD provides median income estimates for counties Table 3.1. Using these estimates the price level of affordable homes was determined for median-, moderate-, low- and very-low-income households in Tooele County Table 3.2. These price estimates were derived based on the following assumptions: 30 percent of gross income devoted to housing, 3 percent down payment, prevailing mortgage rate, and property taxes, homeowner s insurance and mortgage insurance of 12 percent of total mortgage payment Table 3.3. Table 3.1 Household Income by AMI Level for Tooele County Year Median 80% AMI 50% AMI 30% AMI 2006 $56,800 $45,440 $28,400 $18, $56,900 $45,520 $28,450 $17, $59,900 $47,920 $29,950 $17, $64,700 $51,760 $32,350 $19, $65,600 $52,480 $32,800 $19,680 Source: Bureau of Economic and Business Research, University of Utah and HUD income estimate. Table 3.2 Home Prices by Income Category for Tooele County Price Range for Household at: Year Median Income 80% AMI 50% AMI 30% AMI 2006 $209,237 $167,357 $104,619 $68, $211,082 $168,900 $105,541 $63, $242,197 $183,628 $114,725 $68, $265,874 $210,218 $131,386 $78, $288,772 $226,519 $141,574 $84,944 Source: Bureau of Economic and Business Research, University of Utah and HUD income estimate. Tooele County Housing Needs Assessment Page 19

20 Table 3.3 Affordability Calculations for Tooele County 2010 Median 80% AMI 50% AMI Income Available for 30% of Income $65,600 $52,480 $32,800 $19,680 Income Available Monthly $19,680 $15,744 $9,840 $5,904 After Taxes, Home Insurance, Mortgage Insurance $1,640 $1,312 $820 $492 Mortgage Interest Rate $1,460 $1,168 $730 $438 Amount of Loan Financed $280,109 $219,723 $137,327 $82,396 Down Payment $8,663 $6,796 $4,247 $2,548 Maximum Home Price $288,772 $226,519 $141,574 $84, Income Available for 30% of Income $64,700 $51,760 $32,350 $19,410 Income Available Monthly $19,410 $15,528 $9,705 $5,823 After Taxes, Home Insurance, Mortgage Insurance $1,618 $1,294 $809 $485 Mortgage Interest Rate $1,440 $1,152 $720 $432 Amount of Loan Financed $257,898 $203,911 $127,444 $76,466 Down Payment $7,976 $6,307 $3,942 $2,365 Maximum Home Price $265,874 $210,218 $131,386 $78, Income Available for 30% of Income $59,900 $47,920 $29,950 $17,970 Income Available Monthly $17,970 $14,376 $8,985 $5,391 After Taxes, Home Insurance, Mortgage Insurance $1,498 $1,198 $749 $449 Mortgage Interest Rate $1,333 $1,066 $666 $400 Amount of Loan Financed $234,931 $178,119 $111,283 $66,836 Down Payment $7,266 $5,509 $3,442 $2,067 Maximum Home Price $242,197 $183,628 $114,725 $68, Income Available for 30% of Income $56,900 $45,520 $28,450 $17,070 Income Available Monthly $17,070 $13,656 $8,535 $5,121 After Taxes, Home Insurance, Mortgage Insurance $1,423 $1,138 $711 $427 Mortgage Interest Rate $1,266 $1,013 $633 $380 Amount of Loan Financed $204,750 $163,833 $102,375 $61,459 Down Payment $6,332 $5,067 $3,166 $1,901 Maximum Home Price $211,082 $168,900 $105,541 $63, Income Available for 30% of Income $56,800 $45,440 $28,400 $18,450 Income Available Monthly $17,040 $13,632 $8,520 $5,535 After Taxes, Home Insurance, Mortgage Insurance $1,420 $1,136 $710 $461 Mortgage Interest Rate $1,264 $1,011 $632 $411 Amount of Loan Financed $202,960 $162,336 $101,480 $65,994 Down Payment $6,277 $5,021 $3,139 $2,041 Maximum Home Price $209,237 $167,357 $104,619 $68,035 Source: 30% AMI Tooele County Housing Needs Assessment Page 20

21 Affordability of Existing Owner Occupied Housing Housing affordability has improved in recent years in Tooele County as interest and mortgage rates have declined due to the recession. In order to assess the current availability of affordable owneroccupied housing, five years of data from the Wasatch Front Multiple Listing Services were analyzed regarding affordability for median-, moderate- (80% AMI), low-income (50% AMI) and extremely low income (<30% AMI) households. Real estate sales data were used to infer the affordability of owner-occupied housing in Tooele County. Due to insufficient data on several small cities in Tooele County the affordability analysis is limited to Tooele County, Tooele City and Grantsville. Affordability for Median-Income Households The analysis of home sales showed that between 2006 and 2010 there were 4,337 existing singlefamily and condominiums units in Tooele County Table 3.4. Over the five-year period an average of 82.6 percent of all homes sold were affordable to the median income household; a very high level of housing affordability. Surprising, 81 percent of all single-family homes sold were affordable. See Table 3.3 for calculations of prices and affordability. For example, in 2010 a median income household could afford a home priced at $288,772. As mentioned with the drop in mortgage rates affordability has improved. In 2007, 71 percent of all single-family homes sold were affordable to the median income household but by 2010 the share had increased to 94 percent. Housing affordability in Tooele City is very similar to the county. Ninety percent of all existing homes and condominiums sold were affordable to median income households Table 3.5. Of the 248 condominiums sold in the city all were affordable. Grantsville has a lower level of affordability with 68.5 percent of all existing homes and condominiums sold affordable to median income households Table 3.6. Tooele County Housing Needs Assessment Page 21

22 Table 3.4 Number and Share of Housing Units Sold that Were to Median-Income Households in Tooele County Year Single-Family Homes Total Units Sold Units Share , % % % % % Total 4,023 3, % Year Condominiums Total Units Sold Units Share % % % % % Total % Combined Single-Family Homes and Condominiums Year Total Units Sold Units Share ,308 1, % , % % % % Total 4,337 3, % Source: Wasatch Front Regional Multiple Listing Service. Tooele County Housing Needs Assessment Page 22

23 Table 3.5 Number and Share of Housing Units Sold that Were to Median-Income Households in Tooele City Year Single-Family Homes Total Units Sold Units Share % % % % % Total 2,540 2, % Year Condominiums Total Units Sold Units Share % % % % % Total % Combined Single-Family Homes and Condominiums Year Total Units Sold Units Share % % % % % Total 2,788 2, % Source: Wasatch Front Regional Multiple Listing Service. Table 3.6 Number and Share of Housing Units Sold that Were to Median-Income Households in Grantsville City Year Single-Family Homes Total Units Sold Units Share % % % % % Total % Source: Wasatch Front Regional Multiple Listing Service. Tooele County Housing Needs Assessment Page 23

24 Affordability for Moderate-Income Households (80% AMI) Moderate income households also experience a high level of housing affordability in Tooele County. Nearly 60 percent of all homes and condominiums sold in the county between 2006 and 2010 were affordable to moderate income households Table 3.7. In 2010 the price affordability threshold for a moderate income household was $226,519. That is any home price below $226,519 was affordable to a moderate income household. Condominiums, although not a large share of the market, were very affordable. Of the 297 condominiums sold over the five-year period 95 percent were affordable. Sixty-seven percent of all existing housing units sold in Tooele City were affordable to moderate income households but affordability drops in Grantsville Tables Only 43.7 percent of all housing units sold were affordable. Although Grantsville is less affordable than Tooele City when compared to most other cities in Wasatch Front Counties, housing in Grantsville is very affordable. Table 3.7 Number and Share of Housing Units Sold that Were to Moderate-Income Households (80% AMI) in Tooele County Year Single-Family Homes Total Units Sold Units Share , % % % % % Total 4,023 2, % Year Condominiums Total Units Sold Units Share % % % % % Total % Combined Single-Family Homes and Condominiums Year Total Units Sold Units Share , % , % % % % Total 4,337 2, % Source: Wasatch Front Regional Multiple Listing Service. Tooele County Housing Needs Assessment Page 24

25 Table 3.8 Number and Share of Housing Units Sold that Were to Moderate-Income Households (80% AMI) in Tooele City Year Single-Family Homes Total Units Sold Units Share % % % % % Total 2,450 1, % Year Condominiums Total Units Sold Units Share % % % % % Total % Combined Single-Family Homes and Condominiums Year Total Units Sold Units Share % % % % % Total 2,788 1, % Source: Wasatch Front Regional Multiple Listing Service. Table 3.9 Number and Share of Housing Units Sold that Were to Moderate Income Households in Grantsville City Year Single-Family Homes Total Units Sold Units Share % % % % % Total % Source: Wasatch Front Regional Multiple Listing Service. Tooele County Housing Needs Assessment Page 25

26 Affordability for Low-Income Households (50% AMI) Low-income households could afford only 13.6 percent of the combined detached single-family homes and attached condominiums sold in Tooele County since 2006 Table The housing price threshold for affordability in 2010 was $141,574. Affordability was much higher in Thirtyone percent of all homes sold were affordable to a low income household and 86 percent of the 32 condominiums sold were affordable. The decline in housing opportunities is to be expected as income levels drop. Nevertheless Tooele County maintains a relatively high level of affordability even for low income households. For these household there are ownership opportunities. In Tooele City 16.1 percent of all existing housing units sold were affordable to low income households and in Grantsville again a lower level of affordability 8.9 percent of housing units sold were affordable Tables Table 3.10 Number and Share of Housing Units Sold that Were to Low-Income Households (50% AMI) in Tooele County Year Single-Family Homes Total Units Sold Units Share , % % % % % Total 4, % Year Condominiums Total Units Sold Units Share % % % % % Total % Combined Single-Family Homes and Condominiums Year Total Units Sold Units Share , % , % % % % Total 4, % Source: Wasatch Front Regional Multiple Listing Service. Tooele County Housing Needs Assessment Page 26

27 Table 3.11 Number and Share of Housing Units Sold that Were to Low-Income Households (50% AMI) in Tooele City Year Single-Family Homes Total Units Sold Units Share % % % % % Total 2, % Year Condominiums Total Units Sold Units Share % % % % % Total % Combined Single-Family Homes and Condominiums Year Total Units Sold Units Share % % % % % Total 2, % Source: Wasatch Front Regional Multiple Listing Service. Table 3.12 Number and Share of Housing Units Sold that Were to Low Income Households in Grantsville City Year Single-Family Homes Total Units Sold Units Share % % % % % Total % Source: Wasatch Front Regional Multiple Listing Service. Tooele County Housing Needs Assessment Page 27

28 Affordability for Extremely Low-Income Households (=<30% AMI) Housing markets have very few owner occupied units affordable to extremely low income households. In 2010, a four-person households with an extremely low income had an income below $19,860 and the housing price threshold was $84,944. Only 2 percent of all housing units sold in Tooele County were affordable to extremely low income households Table In Tooele City 2.2 percent of homes sold were affordable but in Grantsville only 4 of 639 unit sold were affordable to very low income households Tables Table 3.13 Number and Share of Housing Units Sold that Were to Extremely Low- Income Households (=<30% AMI) in Tooele County Year Single-Family Homes Total Units Sold Units Share , % % % % % Total 4, % Year Condominiums Total Units Sold Units Share % Total % Combined Single-Family Homes and Condominiums Year Total Units Sold Units Share , % , % % % % Total 4, % Source: Wasatch Front Regional Multiple Listing Service. Tooele County Housing Needs Assessment Page 28

29 Table 3.14 Number and Share of Housing Units Sold that Were to Extremely Low- Income Households (=<30% AMI) in Tooele City Year Single-Family Homes Total Units Sold Units Share % % % % % Total 2, % Year Condominiums Total Units Sold Units Share % % % % % Total % Combined Single-Family Homes and Condominiums Year Total Units Sold Units Share % % % % % Total 2, % Source: Wasatch Front Regional Multiple Listing Service. Table 3.15 Number and Share of Housing Units Sold that Were to Extremely Low Income Households in Grantsville City Year Single-Family Homes Total Units Sold Units Share % % % % % Total % Source: Wasatch Front Regional Multiple Listing Service. Tooele County Housing Needs Assessment Page 29

30 Affordability of New Residential Single-family and Condominiums Units According to New Reach, a local real estate consulting firm, 1,342 new single-family homes and condominiums units have been sold in Tooele County since 2006 Table Over this period 74.3 percent of all new homes sold were affordable to median income households and 49.3 percent were affordable to moderate income households. These data indicate a high degree of affordability of new homes. For moderate income households 44.9 percent of all new homes were affordable, a total of 532 homes. Eighty-three percent of all new condominiums units were affordable, a total of 130 units. Unfortunately the data from New Reach are not disaggregated below $150,000 therefore it is not possible to estimate new housing affordability for low and extremely low income households. Table 3.16 Number and Percent of Combined New Homes and Condominiums to Median and Moderate Income Households Tooele County Total New Homes and Condominiums Closed to Median Income Household Number of Homes and Condos Closed Percent of Total Closed to Moderate Income Households Number of Homes and Percent of Condominiums Total Closed Closed % % % % % % % % % % Total 1, % % Source: New Reach. Table 3.17 Number and Percent of New Homes to Median and Moderate Income Households Tooele County Total New Single-Family Homes Closed to Median Income Household Number of Homes Closed Percent of Total Homes Closed to Moderate Income Households Percent of Number of Total Homes Homes Closed Closed % % % % % % % % % % Total 1, % % Source: New Reach. Tooele County Housing Needs Assessment Page 30

31 Table 3.18 Number and Percent of New Condominiums to Median and Moderate Income Households Tooele County Total New Condominiums Closed to Median Income Household Number of Condominiums Closed Percent of Total Condominiums Closed to Moderate Income Households Number of Percent of Total Condominiums Condominiums Closed Closed % % % % % % % % % % Total % % Source: New Reach. New homes and condominiums in Tooele City have a similar degree of affordability. Since (78.9 percent) of the 414 new homes and condominiums built in Tooele City were affordable to median income households and 187 (45.2 percent) were affordable to moderate income households. Table 3.19 Number and Percent of Combined New Homes and Condominiums to Median and Moderate Income Households Tooele City Total New Homes and Condominiums Closed to Median Income Household Number of Homes and Condos Closed Percent of Total Closed to Moderate Income Households Number of Homes and Percent of Condominiums Total Closed Closed % % % % % % % % % % Total % % Source: New Reach. Tooele County Housing Needs Assessment Page 31

32 Table 3.20 Number and Percent of New Homes to Median and Moderate Income Households Tooele City Total New Single-Family Homes Closed to Median Income Household Number of Homes Closed Percent of Total Homes Closed to Moderate Income Households Percent of Number of Total Homes Homes Closed Closed % % % % % % % % % % Total % % Source: New Reach. Table 3.21 Number and Percent of New Condominiums to Median and Moderate Income Households Tooele City Total New Condominiums Closed to Median Income Household Number of Condominiums Closed Percent of Total Condominiums Closed to Moderate Income Households Number of Percent of Total Condominiums Condominiums Closed Closed % 0 0.0% % % % % % % % % Total % % Source: New Reach. No new condominiums have been developed in Grantsville since Nevertheless the data on new detached single-family housing show that 86 percent of new homes were affordable to median income households and 65.8 percent were affordable to moderate income households Table Again a relatively high level of affordability for new homes. Table 3.22 Number and Percent of New Homes to Median and Moderate Income Households Grantsville City Total New Single-Family Homes Closed to Median Income Household Number of Homes Closed Percent of Total Homes Closed to Moderate Income Households Percent of Number of Total Homes Homes Closed Closed % % % % % % % % % % Total % % Source: New Reach. Tooele County Housing Needs Assessment Page 32

33 Rental Housing Affordability in Tooele County Tooele County s rental housing market has a high degree of affordability. There are 16 subsidized projects in the county with a total of 760 units, accounting for 21 percent of all occupied rental units in the county. In terms of subsidized units as a percent of occupied rental units, Tooele County ranks first among Utah s 29 counties. Summit and Washington Counties rank second and third and each have about a 15 percent share of subsidized rental units. Statewide the share is only 7.5 percent. Table 3.23 Low Income Tax Credit and Subsidized Rental Communities in Tooele County Apartment Community Address City Subsidy Units Willow Creek (Senior) 236 West Plum Street Grantsville RD Senior 83 Grantsville Apartment 278 West Main Grantsville RD Orchard Park (Approved Credits) Country Haven Lane Grantsville Tax Credit 63 Clark Street Apartments 334 East Clark Street Grantsville Tax Credit 24 Old Mill Stansbury 160 East Hilary Lane Unincorporated Tax Credit 128 Somerset Gardens (Senior) 143 North 400West Tooele RD Senior 28 Oquirrh View Apartment (Senior) 552 North 270 East Tooele RD Senior 16 Canyon Cove Senior Housing (Senior) 178 East Vine Street Tooele HUD Senior 21 Remington Park Retirement (Senior) 495 Utah Avenue Tooele RD Senior 72 Lake View Apartments 742 North 100 East Tooele Tax Credit 76 Valley Meadows 582 North Shay Land Tooele Tax Credit 40 Tooele CROWN Scattered Sites Tooele Tax Credit 11 Tooele Gateway Apartments 232 W. Fenwick Lane Tooele Tax Credit 130 Westwood Mesa 780 West 770 South Tooele Tax Credit 22 Landmark Apartments 350 West 400 North Tooele HUD 52 Briarwood Apartments 145 Gardenia Way Wendover RD Family 32 Five-Plex Tooele Public Housing 5 Total 760* *Does not include the proposed Orchard Park. Source: Utah Housing Corporation and Tooele County Housing Authority. Five of the subsidized projects are for Seniors. These five projects have a total of 220 units. Table 3.24 Low Income Senior Rental Projects in Tooele County Units Type Willow Creek 83 RD Senior Somerset Gardens 28 RD Senior Oquirrh View Apartment 16 RD Senior Canyon Cove 21 HUD 202 Remington Park 72 Tax Credit Total 220 Source: HUD, Tooele County HA and Utah Housing Corporation. Tooele County Housing Needs Assessment Page 33

34 A recent survey of the classified advertisement in the Tooele Transcript showed the median one bedroom rental rate in Tooele County was $485, the median two bedroom rental rate was $650 and the median three bedroom rate $685. These estimated market rents are all below the 50% AMI target rents of HUD, which are used for tax credit units. The HUD 50% AMI net rents are $565 for a one bedoom unit, $660 for a two bedroom unit and $750 for a three bedroom unit. The fact that market rents are between 40-45% AMI indicates an affordable rental housing market. Tooele County Housing Needs Assessment Page 34

35 Tooele Gateway Apartments 1200 North 300 West Tooele Total Units Tax Credit Units, 30 Market Rate Units Year Built 2002, 2003 Category One Bedroom Two Bedroom One Bath Two Bath Three Bedroom Number of Units Average Rent $675 mkt. $775 mkt. Average Sq. Ft ,150 Rent/Sq.Ft. $0.74 $0.67 A/C Dishwasher W&D Hookups Private Balcony Cable Ready Clubhouse Swimming Pool Covered Parking Yes yes yes yes yes yes Yes yes Tooele County Housing Needs Assessment Page 35

36 Lakeview Apartments Homes 742 North 100 East Tooele, City Total Units 76 All Tax Credit Units Year Built 1999 Category One Bedroom Two Bedroom One Bath Two Bath Three Bedroom Number of Units Average Rent tax credit tax credit tax credit Average Sq. Ft ,080 A/C Dishwasher W&D Hookups Private Balcony Cable Ready Clubhouse Swimming Pool Covered Parking yes yes yes Yes yes no no yes Tooele County Housing Needs Assessment Page 36

37 Landmark Apartments 350 West 400 North Tooele, City Total Units 52 Year Built 1981 Type of Project Section 8 Category One Bedroom Two Bedroom One Bath Two Bath Three Bedroom Number of Units Average Rent 30% of inc. 30 % of inc. 30% of inc. Average Sq. Ft. na 875 na Rent/Sq.Ft. na A/C Dishwasher W&D Hookups Private Balcony Cable Ready Clubhouse Swimming Pool Covered Parking yes no no yes yes no No yes Tooele County Housing Needs Assessment Page 37

38 Valley Meadows 600 West 600 North Tooele, City Total Units 40 Year Built 1999 Type of Project Tax Credit Category One Bedroom Two Bedroom One Bath Two Bath Three Bedroom Number of Units 32 8 Average Rent tax credit tax credit Average Sq. Ft. NA NA Rent/Sq.Ft ,035 A/C Dishwasher W&D Hookups Private Balcony Cable Ready Clubhouse Swimming Pool Covered Parking yes yes yes yes yes no No yes Tooele County Housing Needs Assessment Page 38

39 Westwood Mesa 780 West 770 South Tooele, City Total Units 22 Year Built 1985 Type of Project Tax Credit Category One Bedroom Two Bedroom One Bath Two Bath Three Bedroom Number of Units 2 (for disabled) 14 6 Average Rent tax credit tax credit Average Sq. Ft ,000 Rent/Sq.Ft. A/C Dishwasher W&D Hookups Private Balcony Cable Ready Clubhouse Swimming Pool Covered Parking yes yes yes yes yes no no no Tooele County Housing Needs Assessment Page 39

40 Old Mill 160 East 6700 North Tooele County Total Units - Phase I, 56 units, Phase II 72 units Type of Project - Tax Credit Year Built Category One Bedroom Two Bedroom One Bath Two Bath Three Bedroom Number of Units 128 A/C Dishwasher W&D Hookups Private Balcony Tot Lot Covered Parking yes yes yes yes yes garage Tooele County Housing Needs Assessment Page 40

41 South Willow 211 South Hale Grantsville Total Units - 18 Year Built Type of Project - Family RD 515 Category One Bedroom One Bath Number of Units 18 Average Rents RD Market Rate $550 Two Bedroom Two Bath Three Bedroom A/C Dishwasher W&D Hookups swamp room A/C no no laundry rm Private Balcony Tot Lot Covered Parking no yes yes Tooele County Housing Needs Assessment Page 41

42 Grantsville Family Apartments 284 West Main Grantsville Total Units - 20 Year Built Type of Project RD515 Category One Bedroom Two Bedroom One Bath Two Bath Three Bedroom Number of Units 8 12 Average Rents 30% of income 30% of income Square Footage 850 1,050 A/C Dishwasher W&D Hookups Private Balcony Cable Ready Clubhouse Swimming Pool Covered Parking yes yes yes yes yes no no yes Tooele County Housing Needs Assessment Page 42

43 Briarwood Apartments 145 Gardenia Way Wendover Total Units - 32 Year Built Pre-1980 Type of Project RD Family Project Category One Bedroom Number of Units 32 Average Rents 30% of income Square Footage Unk One Bath Two Bedroom Two Bath Three Bedroom A/C Dishwasher W&D Hookups Private Balcony Cable Ready Clubhouse Swimming Pool Covered Parking yes no no no no no no no Tooele County Housing Needs Assessment Page 43

44 Willow Creek 236 Plum Grantsville Total Units - 83 Year Built Type of Project RD Senior Category One Bedroom Number of Units 83 Average Rents 30% of income Square Footage Unk One Bath Two Bedroom Two Bath Three Bedroom A/C Dishwasher W&D Hookups Private Balcony Cable Ready Clubhouse Swimming Pool Covered Parking yes no no yes no no no no Tooele County Housing Needs Assessment Page 44