Attachment #2

Community Housing
Success Measurement

Subcommittee
• Rebecca Bessey
• Gary Suiter
• Jason Lacy
• Scott L. Ford

City Council Discussion

October 8, 2019
 Housing Values
Support WORKFORCE
• Living Where You Work

Support FAMILIES
• Community Character

Support AFFORDABILITY
• Income Relative to the Cost of Housing
Measuring What We Value
Primary vs. Secondary Data Sources

Characteristics of a Good Secondary Data Source

• Recognized and Trustworthy
• Updated Annually
• Allows for Comparability (Year-over-Year) and to Other Like Communities

The Census Bureau American Community Survey (ACS) Meets All the Criteria of a Good Secondary Source.
Bonus:
• Data available Specific to the City of Steamboat Springs
• No Cost to the User of the Data
 Is the Housing Situation for Those Things We Value
Getting Better or Worse?
If all you want to know is whether it is getting warmer or colder …

What type of tool is needed?

Both tools will tell you the

Cost

Cost
temperature

High Cost / Complex Low Cost / Easy

A comprehensive housing study will The Index as proposed can be updated

help identify needs and the decisions annually in about an hour.
that need to be made. The Index helps inform decisions being made.
 What Measurements
Are Recommended?
WORKFORCE
Workforce Efficiency

We value having those that work in the community also

have the opportunity to live in the community.

In 2017 there are 8,881 Primary Jobs in Steamboat

Springs.

Of those jobs 3,803 43% are being filled by folks

that also live in Steamboat Springs.

Agreement by City Council on this Measurement

 What Measurements
Are Recommended?
FAMILIES
Percentage of Vacant Single Family/Duplex Housing Units.

We value having these type of units occupied vs. vacant.

In 2017, 33% of this type of housing was vacant.

Agreement by City Council on this Measurement

What Measurements
Are Recommended?
AFFORDABILITY
We value a community that is affordable to
live in for working households.
Cost Burden of Housing @ 30%

City Council wanted to explore other measurements.

Looked at a Residual Income Analysis (explored / very

complex).

Proposed Measurement
Median Earnings of FT/YR Household as a Percentage
of Either:
• Ownership Housing Cost
• Effective Gross Rent Cost

In 2017 the Median Earnings of a typical households was

24% below Annual Ownership Cost and 9% below
effective Annual Gross Rent Cost.
 Does this measurement work for affordability?
Steamboat Springs Median Working Households Annual Earnings vs. Annual Housing Cost (Ownership or Rental)
2010 2011 2012 2013 2014 2015 2016 2017
Median value for housing units with a mortgage (ACS Table: B25097) $ 571,900 $ 579,000 $ 530,100 $ 475,700 $ 466,300 $ 472,900 $ 505,500 $ 529,200
Down payment at 10% $ 57,190 $ 57,900 $ 53,010 $ 47,570 $ 46,630 $ 47,290 $ 50,550 $ 52,920
Amount Financed $ 514,710 $ 521,100 $ 477,090 $ 428,130 $ 419,670 $ 425,610 $ 454,950 $ 476,280
Historical 30-Yr. Fixed Mortgage Rate (Source = FreddieMac) 4.69% 4.45% 3.66% 3.98% 4.17% 3.85% 3.65% 3.99%
Private Mortgage Insurance (PMI) 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Effective Mortgage Rate 5.19% 4.95% 4.16% 4.48% 4.67% 4.35% 4.15% 4.49%
Annual Mortgage Payment $ 33,878 $ 33,378 $ 27,863 $ 25,004 $ 26,028 $ 25,425 $ 26,535 $ 28,925
Residential Property Tax Assessment Rate 7.96% 7.96% 7.96% 7.96% 7.96% 7.96% 7.96% 7.96%
Property Tax Mill Levy Applicable in Steamboat Springs 31.616 36.195 42.071 41.627 45.567 46.512 44.484 45.478
Est. Annual Property Taxes $ 1,439 $ 1,668 $ 1,775 $ 1,576 $ 1,691 $ 1,751 $ 1,790 $ 1,916
Est. Annual Homeowner's Insurance (Inflation adjustment @ 2% annually) $ 1,000 $ 1,020 $ 1,040 $ 1,061 $ 1,082 $ 1,104 $ 1,126 $ 1,149
Annual Est. Utilities (Inflation adjustment @ 2% annually) $ 3,000 $ 3,060 $ 3,121 $ 3,184 $ 3,247 $ 3,312 $ 3,378 $ 3,446
Annual Cost of Ownership $ 39,317 $ 39,126 $ 33,800 $ 30,825 $ 32,049 $ 31,592 $ 32,830 $ 35,435

Median Earnings of Full-Time Year-Round Workers (ACS Table: B24022 ) $ 41,606 $ 40,114 $ 39,340 $ 40,900 $ 41,260 $ 39,693 $ 37,259 $ 40,833
Workers Per Household (ACS Table: B08202) 1.74 1.73 1.69 1.64 1.55 1.58 1.59 1.62
Est. Annual Earnings of Working Households $ 72,394 $ 69,397 $ 66,485 $ 66,912 $ 63,903 $ 62,715 $ 59,354 $ 66,149

Ratio of Annual Ownership Cost to Annual Working Household Earnings 54% 56% 51% 46% 50% 50% 55% 54%
Annual Gross Rent (ASC Table: B25063) $ 15,049 $ 15,456 $ 15,983 $ 15,784 $ 15,035 $ 15,196 $ 15,414 $ 15,929

Ratio of Annual Gross Rent to Annual Working Household Earnings 36% 39% 41% 39% 36% 38% 41% 39%
For Indexing Purposes Do These Weightings Work?
Value Measurement Weighting
Workforce Workforce Efficiency 40%
Families % of Vacant Single Family and Duplexes Housing Units 20%
Affordability Ratio of Median Earnings to Cost of Ownership 20%
Affordability Ratio of Median Earnings to Gross Monthly Rents 20%
TOTAL 100%

Steamboat Springs Housing Index Calculation

2010 - Baseline 2011 2012 2013 2014 2015 2016 2017

Data Indicator Indicator Indicator Indicator Baseline Index Weighted Indicator Baseline Index Weighted Indicator Baseline Index Weighted Indicator Baseline Index Weighted Indicator Baseline Index Weighted Indicator Baseline Index Weighted Indicator Baseline Index Weighted
Value Weight Value Change Weight Value Value Change Weight Value Value Change Weight Value Value Change Weight Value Value Change Weight Value Value Change Weight Value Value Change Weight Value
Workforce
1 Efficiency 47.1% 40% 44.4% -2.7% 40% (0.011) 43.0% -4.1% 40% (0.016) 41.0% -6.1% 40% (0.024) 43.0% -4% 40% (0.016) 43.2% -4% 40% (0.016) 43.0% -4% 40% (0.016) 43.1% -4% 40% (0.016)
Ownership Housing
2 Affordability Ratio 54.3% 20% 56.4% -2.1% 20% (0.004) 50.8% -3.5% 20% (0.007) 46.1% 8.2% 20% 0.016 50.2% 4% 20% 0.008 50.4% 4% 20% 0.008 55.3% -1% 20% (0.002) 53.6% -1% 20% (0.001)
Rental Housing
3 Affordability Ratio 36.2% 20% 38.5% -2.4% 20% (0.005) 40.6% -4.5% 20% (0.009) 38.6% -2.4% 20% (0.005) 36.4% 0% 20% (0.001) 38.3% -2% 20% (0.004) 41.4% -5% 20% (0.010) 39.0% -3% 20% (0.006)
Single
Family/Duplex
Dwelling Unit
4 Vacancy Rate 32.7% 20% 32.0% -0.7% 20% (0.001) 34.2% -1.5% 20% (0.003) 36.8% -4.0% 20% (0.008) 36.3% -4% 20% (0.007) 36.9% -4% 20% (0.008) 38.8% -6% 20% (0.012) 38.2% -5% 20% (0.011)
100.0% -2.1% -3.5% -2.1% -1.6% -2.0% -4.1% -3.4%
97.9% 96.5% 97.9% 98.4% 98.0% 95.9% 96.6%
 Steamboat Springs Housing Index
102.0%

100.0%

98.0%

Pulling It All 96.0%

Together
94.0%

92.0%

90.0%
2010 2011 2012 2013 2014 2015 2016 2017
Index Value 100.0% 97.9% 96.5% 97.9% 98.4% 98.0% 95.9% 96.6%
Base Line 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Is the community housing situation for those things we value getting better or worse?