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Accessory dwelling units in Portland, Oregon

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Jordan Palmeri, Oregon Department of Environmental Quality Green Building Program

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Accessory dwelling units in Portland, Oregon

  1. 1. Accessory Dwelling Unit (ADU) Development Trends More details: http://www.deq.state.or.us/lq/sw/wasteprevention/greenbuilding.htm PSU Transportation Seminar November 14th, 2014 Jordan Palmeri Oregon Dept of Environmental Quality palmeri.jordan@deq.state.or.us
  2. 2. Overview 1. What’s an accessory dwelling unit (ADU)? 2. Why does Oregon DEQ like them? 3. Development trends 4. Occupancy stats 5. ADU potential
  3. 3. What’s an Accessory Dwelling Unit (ADU)? An accessory dwelling unit (ADU) is a second dwelling unit on a single family residential lot. They’re also called granny flats, mother-in-law suites, in-law suites, etc. Photo: City of Santa Cruz
  4. 4. Why does Oregon DEQ like them?
  5. 5. Building Small isa green building strategy
  6. 6. House size has increased Source: City of Milwaukie and URBSWORKS
  7. 7. Oregon Department of Environmental Quality 1 person16% 2 persons31% 3+ persons53% Share of Households by Size, 1960State of Oregon1 person19% 2 persons33% 3+ persons48% 1970State person23% 2 persons35% 3+ persons42% 1980State person25% 2 persons36% 3+ persons39% 1990State person26% 2 persons36% 3+ persons38% 2000State person27% 2 persons36% 3+ persons37% 2010State Oregon
  8. 8. Why focus on ADUs? • Mismatch between household size and house size (consumption patterns) • Single family construction has largest sqft/person ratios – 64% of Oregon population in single family detached – Good way to introducing smaller SF housing to market • Multifamily already small • Most ADUs are urban infill that utilize existing infrastructure • Nice package that had potential environmental, social, and economic benefits • Wanted to leverage other momentum in ADU industry
  9. 9. ADU permits in Portland, OR
  10. 10. Where are ADUs being built?
  11. 11. Where are ADUs being built?
  12. 12. Where are ADUs being built?
  13. 13. Where are ADUs being built?
  14. 14. Where are ADUs being built?
  15. 15. Where are ADUs being built?
  16. 16. Survey Research of ADU owners Table2:FinalResponseRates Target Completes Total Completes Valid Sample Response Rate Portland 248 290 673 43.2% Eugene 82 49 91 53.8% Ashland 57 30 66 45.5% Total 369 830 44.6%
  17. 17. Are ADUs providing housing?
  18. 18. Household Size Average ADU household size = 1.45 people
  19. 19. ADU owner status?
  20. 20. Who lives in ADUs?
  21. 21. Who lives in ADUs?
  22. 22. Who lives in ADUs? Tenant age class55+35-5425-34<25Percent of tenants (householders) 50403020100ADU tenantsAll Portland tenants
  23. 23. Who owns Portland ADUs? Owner age class 75+ 65-7455-6445-5435-4425-34<25 Percent of owners 3020100ADU ownersAll homeowners
  24. 24. How are ADUs financed?
  25. 25. Do ADUs have low environmental impact?
  26. 26. Do ADUs cause parking problems? Each ADU contributes 0.46 street parked cars
  27. 27. Do ADUs support the community economically? Average property tax increase of $1134 per property Estimated yearly property tax contribution ($) 2800260024002200200018001600140012001000800600400200 Number of ADUs 20100median
  28. 28. Cost of ADU construction Cost of ADU construction ($) 300,000280,000260,000240,000220,000200,000180,000160,000140,000120,000100,00080,00060,00040,00020,0000 Detached Number of ADUs 2520151050medianmeanCost of ADU construction ($) 300,000280,000260,000240,000220,000200,000180,000160,000140,000120,000100,00080,00060,00040,00020,0000 Attached Number of ADUs 2520151050medianmean Detached ADU -Average cost $100,000 Attached ADU -Average cost $50,000
  29. 29. ADU rent ($) 1,8001,7001,6001,5001,4001,3001,2001,1001,0009008007006005004003002001000 Number of ADUs 35302520151050abc • ADU avg$756/month (with $0 rents) • Comparable multi-family rent avg778sqft/month • ADU avg$872/month (w/o $0 rents) Rental rates
  30. 30. Do ADUs provide affordable housing? 1. 13% of ADU occupants are charged $0 in rent 2. 5% of ADU occupants are charged<$500/month 3. 48% of ADU owners are between 55 and 74 years old. TheADU will make their housing more affordable into retirement. 18% of ADUs provideaffordable housing 85% of thesetenants are family or friends of the ADU owner Occupant Owner Developer 4. Average cost of new ADU is $78,000. How does this compare to the cost of a new affordable housing unit?
  31. 31. Future ADU trend? Separating ownership to create affordable starter homes? Sabin Green Woodstock Gardens
  32. 32. Accessorydwellings.org Accessorydwellings.org Includes: • Case studies • Videos • Tour info • Zoning code • Appraisal guide • Financing guide • Research
  33. 33. ADU finance guide
  34. 34. 4 steps 1) Ensure ADU is legal and main house can be rented 2) Conduct HBU 3) Decide which approach to value will be used 4) Report the findings ADU financing guide (handout provided)
  35. 35. Accessory Dwelling Unit (ADU) Potential 35
  36. 36. Thank You! Jordan Palmeri – Oregon DEQ – 503-229-6766 –palmeri.jordan@deq.state.or.us –http://www.deq.state.or.us/lq/sw/wasteprevention/ greenbuilding.htm 36

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