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2014 Housing Presentation
1. POPULATION, HOUSING,
& OUR ECONOMY:
A CASE FOR TAX ABATEMENT CITYWIDE
PRESENTED BY DAVID TOYER
JUNE 9, 2014
2. Why are we talking
about housing?
Because housing is a key
component of successful
economic development
3. Studies Show:
A diverse, available and affordable
housing stock is a critical component of
strong, growing economies.
4. Looking at Burlington’s housing
inventory and the market
demand for housing. . .
Burlington’s housing inventory is
inadequate to support existing
and future growth, and new
development is not keeping
pace with demand.
5. Housing Inventory vs. Market Demand
Burlington’s Housing Inventory
• 87% of housing units were built before
1980
• 48% of housing units are 2 bedrooms
or less
• 65% of owned units have a value less
than $100,000
• 82% of owned units have a value less
than $150,000
• Burlington has a homeowner vacancy
rate of only 2.1% (ACS, 2011)
NAHB/NAR Buyer Preferences (2013)
• Only 45% of buyers (nationally) want
an existing home
• 79% want a home with 3 or 4
bedrooms
• 51% of Midwest buyers typically buy
homes with 3 bedrooms and 2 full
bathrooms
• Median age of a home bought in the
U.S. was 1996
• Median age of a home bought in the
Midwest was 1985
6. If Burlington were a retail store,
we’d have a lot of products on
the shelves that customers are
neither looking for nor willing to
buy.
In other words, when it comes
to housing. . .
7. What does the consumer think
of Burlington’s housing?
8. Local Housing Surveys
Show Housing Needs Not Met
2012 Housing Survey
• 22% of respondents were currently
looking for housing
• 83% of respondents ranked Burlington’s
housing as “Fair or Poor”
• 28% of respondents did not find a home
that met their expectations
2014 Housing Survey
• 42% of respondents have looked for
housing in past 18 months
• 45% of respondents describe housing
as “available but old and poorly
maintained”
• 52% of respondents did not find a home
that met their needs
• 86% of respondents indicate more
housing options are needed
• 17% of respondents indicate housing
is top reason for difficulty in recruiting
and retaining employees
• 93% of respondents support cities taking
action to encourage new housing
• 45% of respondents would support tax
abatement as a policy to encourage
new housing development
9. The good news is. . .
Housing isn’t just an issue in
Burlington.
11. December 4, 2013
Topeka-Capital Journal: Kansas council explores rural housing
shortage
October 9, 2013
Associated Press: Lawmakers cite housing shortage in rural Oklahoma
June 24, 2013
Norfolk Daily News: Housing shortage impacts local businesses
March 1, 2014
Coloradoan: Housing shortage threatens spirit of Fort Collins
May 13, 2014
Schuyler Sun: Specialist will address housing shortage
April 18, 2014
Alice Echo News Journal: Study confirms housing shortage
February 6, 2014
Gothenburg Times: Housing shortage seen in Dawson County
April 7, 2014
Des Moines Register: Shortage of
Market Rate Homes Plagues Rural
Communities
12. Burlington is competing against
those communities. . .
To attract new workers to fill middle
and high skilled jobs
Which is the workforce existing
businesses need to expand
And the workforce needed to
attract new businesses here
13. Another perspective on population
growth and why it’s important:
“The problem—actually there are four of them—is simple. We Baby
Boomers didn’t have enough kids, our birth rate isn’t high enough, we’re living
longer, and our educational system is dropping half our kids in the academic dirt.
As 78 million of us retire, there won’t be enough qualified workers behind us to fill
the jobs and grow the economy that is necessary to support all us new
dependents.
Communities and companies will fight each other for jobs and qualified
workers. Some communities will win and prosper. Others will fail. Those that fail
will be a mess. There won’t be enough qualified workers to fill demanding jobs.
Businesses will not only not come to those communities, they will leave.”
Excerpt from:
When the Boomers Bail: How Demographics will Sort Communities into Winners and
Losers
—by Mark Lautman
14. Mark Lautman’s theory is
that a shift is taking place where:
• Middle to high skilled workers will locate to
places (quality communities) they want to
live, not to places where there are job
openings
• The result will change the paradigm from
one where workers relocate to companies,
to one that forces companies to relocate to
communities that can attract and retain the
workers
15. Can Burlington compete if we
don’t create more housing
options?
It’s Uncertain.
If Mark Lautman is right. . .
16. “The importance of housing in the economy is well
known. Analysts track building permits nationally
and locally and report housing starts as an
indicator of economic activity. New housing
construction creates jobs and generates income,
and a strong new housing market is seen as
an indicator of public confidence and a robust
economy.”
-Center for Urban Policy & the Environment
18. Why? Because:
1. The local economy is gaining momentum
2. New jobs are being created
AND
3. People are looking to move here for a job
19. April unemployment at 4.9% is the
lowest month on record in Burlington
since 2007
The number of employed (12,220) in
Burlington in 2013 was the highest
annual total since 2002
Burlington’s resident civilian labor force
(13,040) in 2013 was the highest its
been since 2003
22. And, for the first time in 40 years we
have population growth
1970 1980 1990 2000 2010 2013
Population 32366 29529 27208 26839 25663 25725
24000
26000
28000
30000
32000
34000
Population
U.S. Census
Population Trends 1970 – 2013
-20.71%
+0.24%
23. In fact, an ISU population study from May 2014 shows that
Burlington is one of 275 cities in Iowa that have grown since 2010.
The other 681 cities declined or had no change.
24. However, Burlington had
the lowest % of population
growth at 0.24%
The ISU Population Study found
that all cities in Des Moines County
grew.
25. Despite the momentum and new
economic growth. . .
Burlington had fewer total housing
units in 2010 than in 1970
And current stats show fewer
people occupy each unit (locally
and nationally)
Given that, are we adding enough
units to grow?
27. With a 2013 Population of 25,725 and a
Total Population/Total Housing Units
statistic of 2.1 people
Burlington needed to have 12,250 housing
units in 2013 just to stay level with growth.
That would be an increase of 172 units
over the 2012 housing inventory.
28. In contrast Burlington issued only
33 building permits in 2013 for
new residential construction.
Not enough to sustain
momentum.
30. • 42% of respondents have looked for housing in past 18 months
• 45% of respondents describe Burlington’s housing as “available
but old and poorly maintained”
• 52% of respondents did not find a home that met their needs
• 86% of respondents indicate more housing options are needed
• 17% of respondents indicate housing is top reason for difficulty in
recruiting and retaining employees
Because our housing stock isn’t satisfying
buyers and it poses a threat to recruiting and
retaining the employees needed by our
expanding industries.
2014 Housing Survey:
31. We need to have housing that appeals to a broad
range of buyers. Who are these buyers and what
do they want?
The National Association of Realtors in 2013 found
the following buying preferences by type of buyer:
Housing
Type
All
Buyers
First
Time
Buyers
Repeat
Buyers
Married
Couple
Unmarried
Couple
Single
Female
Single
male
Other With Kids
under 18
in home
Without
kids
under 18
at home
Single
Family
Detached
80% 77% 82% 86% 79% 65% 67% 69% 88% 75%
Townhouse/
Rom House
7% 8% 6% 5% 9% 12% 12% 11% 4% 9%
Apartment
or Condo 5+
units
5% 6% 5% 3% 4% 12% 11% 7% 3% 7%
Duplex,
Apartment
or Condo 2
to 4 units
2% 2% 2% 2% 2% 4% 3% 2% 1% 3%
Other 6% 7% 5% 5% 7% 8% 8% 11% 4% 6%
32. What Housing Can You Find in
Burlington/West Burlington?
Home Price 5 or Less Years Old 10 or Less Years Old 20 or Less Years Old
$80,000 and above 8 15 31
Between Burlington & West Burlington there are only 31
housing options with 3 bedrooms and 2 baths for sale
above $80,000 in price that are 20 or fewer years in age.
Search included: Single Family, Condos, Townhomes, Duplexes, Modulars, Manufactured Homes, etc.
Source: Realtor.com/Burlington Multiple Listing Service
Add 2-car garage requirement and the options drop:
Home Price 5 or Less Years Old 10 or Less Years Old 20 or Less Years Old
$80,000 and above 8 14 25
33. The Greater Burlington Partnership Supports:
More aggressive tax abatement for the
development and redevelopment of housing
citywide to encourage more housing options that
will include single family homes, duplexes,
apartments and condominiums throughout the
community.
And Our 2014 Housing Survey Found:
• 93% of respondents support cities taking action to encourage new housing
• 45% of respondents would support tax abatement as a policy to encourage new
housing development
34. The Greater Burlington Partnership
Respectfully Requests:
• Council hold a public hearing to consider a more
aggressive citywide housing tax abatement
We support a citywide tax abatement
that:
• Is at or roughly equal to a 100% abatement for 5 years
• Alternatives that would generate tax revenue for the city
sooner would be 50% abatement for 10 years or 75%
abatement for 7 years
• Expiration of this more aggressive abatement in five
years unless renewed or extended by the Council
36. CONTACT INFORMATION
David Toyer, Director of Economic Development
Greater Burlington Partnership
610 N. 4th Street, Suite 200
Burlington, Iowa 52601
319-752-6365
dtoyer@greaterburlington.com
@GBPartnership
#GBPecondev
www.greaterburlington.com