HomeMy WebLinkAbout01 Executive SummaryLEVERAGING HOUSING
FOR ECONOMIC WELL-BEING
Housing for All:
EXECUTIVE SUMMARY
JANUARY 2022
image source: National Archives
Greenstreet, Ltd. was commissioned to conduct a Housing Study for
Hamilton County by the Noblesville Housing Authority, HAND, Inc.,
and Westfield Washington Township. Research began in 2021 and
was completed in January 2022.
Greenstreet, Ltd. 2022
Greenstreet, Ltd. 2022
The facts presented here summarize key points of the study.
To better understand the issues, please refer to the full study available at www.handincorporated.org.
LEVERAGING
HOUSING FOR
ECONOMIC
WELL-BEING
HAMILTON COUNTY IS BECOMING LESS AFFORDABLE TO MORE PEOPLE. STAGNANT INCOMES AND GROWING HOME VALUES
CREATE AFFORDABILITY PROBLEMS FOR MOST INCOME GROUPS, BUT ESPECIALLY FOR THOSE HOUSEHOLDS EARNING LESS
THAN $98,000 (120% Area Median Income, AMI.)
Housing values are growing nearly 5x faster than incomes across the US.
New home prices in Hamilton County have grown by 63% between 2010 and 2019.
Closing price of existing resale homes in Hamilton County have increased by 88% between 2010 and 2021.
A Hamilton County family earning $97,920 annually could afford only 28% of new construction, just 12% of current listings, and
100% of multi-family rental units. For families earning $65,280, homeownership is relatively out of reach. Only 2% of current
listings and 0% of new construction are considered attainable.
HAMILTON COUNTY’S HOUSING INVENTORY LACKS DIVERSITY. HOMOGENEOUS NEW CONSTRUCTION IS UNLIKELY TO SUPPORT
THE CURRENT HOUSING NEEDS OF THE WORKFORCE.
In 2019, 20% of jobs in Hamilton County had annual salaries below $15,000 and another 32% of jobs with salaries below
$40,000. Employment will continue to be a driving factor for housing demand and the lack of housing attainable to low- and
moderate-wage workers will continue to hamper business retention, expansion, and attraction.
The top five occupations with the most employees in Hamilton County in 2019 were fast food/counter workers, retail sales, customer
service representatives, office clerks, and laborers/stocking/freight. All of these occupations paid under $20 an hour, with an average
of $16.60 an hour for an estimated gross annual income of $34,528 for an individual.
GIVEN CURRENT FUNDING AND CONSTRUCTION TRENDS, IT WILL TAKE APPROXIMATELY 286 YEARS TO MEET CURRENT
DEMAND FOR INCOME-BASED HOUSING.
There are 18,735 low- and moderate-income households (household income under 100% AMI) spending too much on housing each
year (cost burdened.)
Between 2010 and 2020 only 468 units of subsidized housing units were built in Hamilton County, compared to an increase of
2,528 households in need of subsidized housing (households earning below 80% AMI and cost burdened.) Each year, an average of
33 subsidized units reach their affordability compliance period, putting them at risk of increased rents and displacement of low- and
moderate-income people.
Housing Choice Vouchers (HCVs) are a federal program to help low- and moderate-income households live in qualifying market-rate
units. 100% of Noblesville Housing Authority’s 194 HCV are in use. The last time the wait list was opened, 900+ applications were
received for the available 200 vouchers before the wait list was closed.
LAND COSTS AND DEVELOPMENT REGULATIONS HAMPER THE ABILITY TO QUICKLY INCREASE HOUSING INVENTORY IN
HAMILTON COUNTY AT ALL PRICE POINTS, BUT ESPECIALLY AT ATTAINABLE PRICES.
Nationally land accounts for 20 to 50 percent of a traditional home’s sales price. Land costs were identified by stakeholders as a
barrier to attainable housing production in Hamilton County.
Nationally, development regulations (at all levels of government) account for 24 percent of the final sales price of new housing. This
was identified by stakeholders as a barrier to increasing the inventory of attainably-priced homes.
Hamilton County regulations favor larger lots. Average development costs are roughly $1,000 per lineal foot. Increasing minimum lot
widths from 60 to 80 feet may add an additional $20,000 to the cost of development (2019.)
To address the issue of decreasing attainability,
Hamilton County stakeholders must work together to
reduce the cost of development, remove the cultural
stigma attached to attainable housing, stabilize and
support individuals and families most at-risk, and
increase funding for attainable housing.
Housing for All: Leveraging Housing for Economic Well-Being
$321,500
$79,900
US MEDIAN NEW HOMES
SALES PRICE, 1984
$69,560
US MEDIAN HOUSEHOLD
INCOME, 2019
$22,415
US MEDIAN HOUSEHOLD
INCOME, 1984
US MEDIAN NEW HOMES
SALES PRICE, 2019
$22,415
1984 U.S. MEDIAN
HOUSEHOLD INCOME
$79,900
1984 U.S. MEDIAN SALES
PRICE OF NEW HOME
$69,560
2019 U.S. MEDIAN
HOUSEHOLD INCOME
$321,500
2019 U.S. MEDIAN SALES
PRICE OF NEW HOME
4.6X
3.5X INCOME:HOUSING VALUE
INCOME:HOUSING VALUE
If we apply the rule of 3x (as an attainable home value), homes today
should be valued closer to $208,680, or $112,820 less.
HAMILTON COUNTY IS
BECOMING LESS AFFORDABLE
TO MORE PEOPLE.
Hamilton County’s rapid growth has created tremendous demand for housing. Housing
production has failed to keep pace, creating an imbalance between supply and demand.
The results are rapidly rising home values, lack of supply, and unaffordable conditions for
employees to maintain the economic well-being of Hamilton County.
In 1984 the median household income in the US was just
over $22,415, and the median sales price of a new home
that same year was just shy of $80,000. The average
American was spending just over three times their income
to buy a home. As of 2019 that number is 4.6 times the
median income and growing. The cost of a new home in
the US has skyrocketed by 322 percent; incomes have
grown by around 200 percent, creating significant gaps in
what people can afford today.
Homes in Hamilton County consistently sell for more than
homes in neighboring counties and communities. The
average Central Indiana homeowner would need to earn an
additional $43,000 a year to afford the higher cost of an
average home in Hamilton County compared to elsewhere
in the metro. Over the last nine years, sales prices of new
construction single-family homes in Hamilton County
have increased by almost $150,000, and sales prices on
existing resale homes are growing at similar rates. Low
inventory and supply constraints creates a competitive
environment that benefits cash buyers and higher net
worth homeowners.
STAGNANT INCOMES AND GROWING HOME VALUES CREATE ATTAINABILITY PROBLEMS FOR MANY.
Source(s): U.S. Census Bureau via Federal Reserve Economic Research (FRED); Greenstreet Ltd.
data reflects the median sales price of new homes and incomes in unadjusted U.S. dollars
Greenstreet, Ltd. 2022
Over half of Hamilton County families earning below the area median income ($81,600) are spending more than 30 percent of their
income on housing each year – referred to as being housing cost burdened. This directly impacts their ability to pay for critical services
like education, childcare, transportation, food, healthcare, and savings. A childcare worker earning a household income of $33,228, after
spending the recommended 30 and 15 percent on housing and transportation respectively, would have just $18,275 left over for the
entire year to pay for all other remaining expenses. While this essential worker lives “affordably,” they will still struggle to make ends meet.
LIVING UNAFFORDABLY HAS A BIGGER IMPACT ON SMALLER BUDGETS.
The Area Median Income in the Indy-Carmel MSA is $81,600.
Living affordably in Hamilton County is
difficult for many households earning below
the Area Median Income. In Hamilton County,
36,915 households earn below the AMI. Of
those households, 18,735 spend too much on
housing. That equates to 1 out of every 2 low-
and moderate families.
This is in stark contrast to the
1 out of every 25 families who
earn above the Area Median
Income who are spending more
than 30 percent of their income
on households.
EXISTING INVENTORY DOES NOT REFLECT THE HOUSING NEEDS OF THE WORKFORCE.
30% AMI
$24,480
50% AMI
$40,800
80% AMI
$65,280
100% AMI
$81,600
120% AMI
$97,920
150% AMI
$122,400
200% AMI
$163,200
MULTI-FAMILY RENTALS
22,587 units (total)
occupancy: 97.6%
ACTIVE LISTINGS
287 listings (total)
NEW CONSTRUCTION STARTS
3,434 units (total)
A family earning 120% of
the area median income
has an annual household
income of $97,920. This
is comparable to the
median household income.
An attainable home
value for this family is
$293,760.
A family at this income
level could afford 28%
of new construction, just
12% of current listings,
and 100% multi-family
rentals.
For families earning below
80% AMI, homeownership
options are relatively out
of reach. Only 2% of
current listings and 0%
of new construction are
considered attainable.
The opportunity for essential workers to find
housing at attainable prices is disappearing
and in some parts of Hamilton County, those
opportunities are already gone. An essential
worker earning a $33,228 annual household
income would find the task of acquiring attainable
housing impossible. Of the 3,000-plus units built
in the county over the previous 12-month period,
100 percent of the units are unaffordable to this
population, and they could afford just one of the
278 active listings at the time of this report. This
does not account for the competition that exists for
homes at the lower end of the price spectrum.
Additionally, the example essential worker-led
household would find rental housing options
limited. Of the 22,000 plus multi-family rental
units in Hamilton County, just 24 are assumed to
be affordable based on average posted monthly
rents – this includes subsidized affordable. Given
high demand and limited supply, occupancy
rates in the county are approaching 98 percent,
meaning at any given time there are around 1,000
unoccupied units. Of those units, only 12 offer
average monthly rents that would make them
attainable to an average essential worker-led
household.
Even higher earning households may struggle
to find attainably priced housing. Families
earning professional wages (like accountant-
led households) above the area median income
($107,302) can afford to buy 71 percent of newly
constructed units and just 20 percent of the active
listings. For these households, multi-family rental
options are all attainable, but finding appropriately
sized and located units may present a challenge
regardless of income.
To further emphasize how far reaching and
persistent this problem is in Hamilton County, a
household earning 200 percent of the area median
income ($163,200) still does not earn enough
to ensure all housing is attainably priced. A
household at this income could afford 86 percent
of new construction and 59 percent of the active
listings.
Source(s): MIBOR REALTOR® Association, BLC® Listing Service; Zonda 2021; JLL 2021; Greenstreet Ltd.
current listings reflect MLS active listings on November 5, 2021
Housing for All: Leveraging Housing for Economic Well-Being
DIVERSE
HOUSING IS
A RESILIENT
ECONOMIC
DEVELOPMENT
STRATEGY FOR
HAMILTON
COUNTY.
Without appropriate housing for the
entire workforce, economic growth and
sustainability of the high quality of
life that is so important to Hamilton
County residents may be in jeopardy.
Underproduction or unattainable housing
values will create circumstances where
the labor force is unable to live in
Hamilton County. As more workers select
to live and work in more affordable
communities, jobs may go unfilled, tax
revenue may decrease, and ultimately
economic growth will be stalled. In
the end, Hamilton County, as a whole,
becomes less competitive against regional
and national peers, making it harder to
attract people, jobs, and investments.
Much of Hamilton County’s economic
development strategies center on highly
skilled, high paying job sectors. Under
the surface, this strategy creates a ripple
effect across all sectors and is highly
dependent on attracting and retaining
workers of all skill levels and pay grades.
For every one high-wage, high-tech
job created in the economy, five other
supportive jobs are created. Many of
those jobs are low-skill and low-wage,
more akin to a commodity. A barista in
Hamilton County can expect the same working conditions and pay at a coffee shop in
Shelby County as they can in Hamilton County. The key difference is cost of living.
This speaks to the importance of housing on Hamilton County’s economic well-being.
Diverse housing is a resilient economic development strategy. Hamilton County’s great
schools, low crime rates, and well-maintained infrastructure require a dedicated workforce
of teachers, police, fire fighters, public works employee, and many more individuals who
may not earn enough to live affordably in Hamilton County today.
Additionally, housing and place are increasingly important to the workforce and
employees. Without appropriate housing, workers are faced with longer commutes, which
studies indicate can lead to costly turnover and absenteeism. Additional studies have
shown that replacing an employee can cost a business as much as 1.5 times their annual
salary in lost revenue and reduced productivity. Both of these findings underscore the
importance of co-locating housing and jobs. In 2019, 1,009 childcare workers were hired
in Hamilton County. That same year, 1,224 childcare workers separated from the jobs.
This type of turnover creates instability for business owners, employees, clients, and the
economy.
Diverse, attainable housing can boost municipalities’ bottom line by retaining and
increasing tax revenues. Supporting local business growth and attraction not only creates
new jobs, but also contributes to the local municipal and county tax bases, allowing these
entities to continue to invest in infrastructure, schools, public safety, and community
amenities that make Hamilton County competitive with national peers. More efficient
development – which can also be more attainable – costs up to one-third less and offers
10 percent savings on ongoing delivery of many city services. Additionally, compact,
walkable places that can be affordable by design, generate 10 times more tax revenue
per acre than traditional, large-lot subdivisions that are unattainable to much of the
workforce.
$85,240
Research and Development
in Nanotechnoogy
$125,650
Lawyer
$60,870
HR Specialist
$31,330
Security Guard
$23,320
Childcare Worker
$26,110
Waiter/Waitress
source: Noblesville Economic Development Strategic Plan supporting data, 2021; Bureau of Labor Statistics, Employment and Wage Estimates for
Indianapolis MSA, May 2020 (reflects annual mean wage not household income)
For each high-paying, high-tech job, five
other jobs are created in various sectors
of the economy.
An economic development strategy
focused on high-paying jobs still requires
a diverse housing strategy to support its
workforce.
EMERGENCY HOUSING ATTAINABLE HOUSING MARKET-RATE HOUSING
Emergency
Shelters
Transitional
Housing Income-Based
Housing
Attainable Rental Housing
AttainableHome Ownership
Attainable
by Design
Market-Rate
Housing
CONTINUUM OF HOUSING NEEDS
Greenstreet, Ltd. 2022
We believe that housing should be attainable for those who desire to call
Hamilton County home – during every stage of their lives. We will prioritize
diversity in product types and housing prices to uphold the economic well-
being of Hamilton County.
To ensure housing for all, we will...
• work collaboratively with leadership to prioritize diversity in housing
product types and prices (prioritizing households earning up to 120%
AMI);
• encourage and regulate for lower cost housing options near jobs and
services;
• explore public-private-philanthropic partnerships to expand resources
and dollars aimed at removing barriers to attainable housing; and
• communicate the importance of attainable housing the County’s
economy today and in the future.
#HOUSING4ALL
VISION:
The Hamilton County Housing Collaborative is a group of individuals and organizations committed to improving the
inventory of housing in every category along the continuum of housing options. This collective impact initiative is
staffed by HAND, Inc. Aspire, Family Promise of Hamilton County, Noblesville Housing Authority, and Westfield
Washington Township are the other founding organizations.
CREATE STRONG COMMUNITIES WITH #HOUSING4ALL.
• Visit www.handincorporated.org to learn more and get digital copies of the 2022 Hamilton County Housing
Report.
• Be a knowledgeable YIMBY – “Yes in My Backyard” by advocating with your elected officials and following
local zoning meetings. Support good projects that provide more workforce housing.
Learn more at https://yimbyaction.org/2021/
• Volunteer with a nonprofit working in housing. Contact Kelley Romweber (kelley@handincorporated.org) to
explore which nonprofit in Hamilton County would be a good fit for you.
• Use your social media presence to advocate for #Housing4All.
• Donate funds, land, or expertise for housing initiatives focused on low-income households. Kelley Romweber
(kelley@handincorporated.org) can give you the latest information.
TAKE ONE ACTION TODAY:
Housing for All: Leveraging Housing for Economic Well-Being
DEFINING THE NEXT STEPS FOR COLLABORATION ACROSS HAMILTON COUNTY.
The Hamilton County Housing Collaborative came together to think holistically about the housing needs of all Hamilton County residents.
The 2022 Housing Study and subsequent initiatives attempt to not only identify and define the issues but also to create consensus around
next steps. There is no single initiative, project, program, or source of funding that will solve these issues. Housing and housing attainability
is complex and will take collaboration from various partners — public sector, philanthropy, development and builder communities, Realtors,
and nonprofits — to begin to address the varying and deep rooted challenges Hamilton County faces today.
The Collaborative agreed that housing in Hamilton County is becoming less attainable for much of the workforce. To address this issue,
groups across Hamilton County and beyond must work together to:
The Collaborative worked together to populate a list of potential projects, programs, and policies that met a set of parameters around
housing and implementation – short-term implementation (18 months) ability, existing momentum, engagement of high-capacity partners,
alignment with the Hamilton County vision for housing, and the existence of, or ability to fund, the proposed initiative. Of the nearly 50
identified initiatives, four were selected (see next page) for their ability to generate new or expand existing funding sources critical to long-
term implementation and sustainability of attainable housing across the county. Additionally, the group felt it was important to also identify
projects that could have immediate or short-term impacts. These projects or programs are identified below.
REDUCE THE COST OF DEVELOPMENT,
REMOVE THE CULTURAL STIGMA ATTACHED TO INCOME-BASED HOUSING,
STABILIZE AND SUPPORT INDIVIDUALS AND FAMILIES MOST AT-RISK, AND
INCREASE FUNDING FOR ATTAINABLE HOUSING.
IMMEDIATE & SHORT-TERM ACTIONS
EMERGENCY SHELTERS
To address immediate needs
of households experiencing
homelessness, Hamilton
County should expand
options for sheltering. Efforts
to begin with sheltering for
victims of violence should be
accelerated to show the value
of crisis housing.
HOUSING CHOICE VOUCHERS
Hamilton County’s access to
HUD-funded Housing Choice
Vouchers (HCV) does not
meet the needs of current
residents. Considerations
to locally fund HCV-
like subsidies should be
considered to expand options
for families to live in market-
rate communities.
REPRIORITIZE CDBG
Stakeholder interviews
revealed concerns about
how the County’s CDBG
dollars were expended.
Suggestions to reprioritize
dollars for attainable
housing development and/
or preservation were made
by many. Others suggested
consolidation of the
municipal allocations to
create larger awards and
act as greater incentive for
attainable housing creation.
DEMONSTRATION PROJECT
A demonstration project that
showcases innovative, well-
designed affordable housing
would provide a local example
of how attainable housing
can fit in and reflect the
values of Hamilton County
communities. This would
likely require funding from
public and/or philanthropic
partners; variation from local
development standards; and
a strong partnership with a
trusted developer.
ACTIONS SPEAK
LOUDER THAN
WORDS.
The annual CDBG planning process begins Spring 2022
to award funds for Program Year 2022, creating an
opportunity to advance these two short-term actions.
Exploration of potential
ARPA funds announced as
of March 2022.
$5 million in ARPA
funding earmarked as of
March 2022.
Greenstreet, Ltd. 2022
PUBLIC-PRIVATE-PHILANTHROPIC PARTNERSHIPS:
In general, partnerships are a collaboration between
various groups to achieve a common goal or objective.
Traditionally, in affordable housing development,
these partnerships have included two primary groups
– the public- and private-sectors. In today’s funding
environment, the addition of philanthropic partners
brings new, flexible capital to projects that can
enhance financing, expand services, and create more
holistic projects that better meet the needs of the
residents and communities in which they are located.
These partnerships already occur in Hamilton County,
but as funding decreases and need increases,
these partnerships are more critical and a strategic
approach to engaging in these activities will ensure
better outcomes for all involved parties. By working in
partnership, these organizations can begin to repair
the systematic and structural issues at the root of the
problem, potentially reducing the need for similar
interventions in the future.
COMMUNITY LAND TRUST : A Community Land Trust
(CLT) is a long-term mechanism to acquire property
and maintain the attainability of homes and properties
owned the community land trust organization. A
Community Land Trust is typically controlled by a
community-based nonprofit that includes community
developers, nonprofits, or government entities.
By separating the value of the land and the
improvements (for example a house), Community
Land Trusts create opportunities at lower cost to
potential home buyers. This can provide ownership
opportunities to populations that traditionally have
been excluded due to lower incomes or lack of
wealth, allowing them to build equity and transition
to traditional, market-rate ownership in the future.
Community Land Trusts also support the long-term
affordability of multi-family and single-family rental
options in two ways – reducing overall development
cost that allow for lower rents, and ensuring long-term
affordability.
HOUSING TRUST FUND : A Housing Trust Fund is
a distinct fund established by a city, county, or state
government that receives ongoing, dedicated funding
streams to support the preservation, production, and
access to attainable housing. The creation of an HTF shifts
funding for attainable housing from a one-time or per basis
allocation to annual budgets that ensure funding is available
year after year. Nationally, studies have indicated Housing
Trust Funds leverage $6 for every dollar invested in the
fund.
A Housing Trust Fund provides a new, flexible source of
funding that can be used to in a variety of ways including
development costs (i.e. land acquisition, construction
loans, etc.) as well as programmatic costs (i.e. down-
payment assistance, home repair, emergency mortgage
assistance, etc.) This allows for users to think ahead and
plan for future projects, knowing they will have access
(even if competitively) to an additional source of funding
for attainable housing production and preservation —
something that ad hoc public-sector investments in
attainable housing do not provide.
LAND USE & DEVELOPMENT STRATEGIES : In Hamilton
County there are numerous documents, processes, and
bodies that regulate how and where development occurs.
The objective of these regulations and regulatory bodies is
to ensure development reflects the character and desires of
the community. Past conversations with local developers,
home builders, and planning staff revealed that increasing
diversity in housing is difficult given the current political
and regulatory environment that dictates what can be built
and where.
In the U.S. nearly 75 percent of all land is zoned
exclusively for single-family housing – arguably the most
expensive form of housing. There are several ways to
create win-wins for municipalities, builders, and home
buyers by bringing together all the parties involved to make
modest adjustments to local regulations that would ease
development of diverse housing.
LONG-TERM INITIATIVES
MUST START NOW.
Additional information on each initiative can be found in the corresponding information packets.
Housing for All: Leveraging Housing for Economic Well-Being
Adrienne Keeling, Carmel Community Services
Aimee Jacobsen, Noblesville Housing Authority
Alexia Lopez, Carmel Community Services
Andrea Davis, HAND
Brad Coffing, MIBOR
Chris Pryor, MIBOR
Cindy Benedict, Stones3 Resources
Corrie Meyer, Innovative Planning LLC
Courtney Zaugg, Plaka Associates
Danielle Carey Tolan, Westfield Washington Township Trustee
Denise Aschleman, Noblesville Planning
Jen Higginbotham, Indianapolis MPO
Justin Moffett, Old Town Companies
Kate Collins, BAGI
Megan Vukusich, Fishers Planning and Development
Mike Thibideau, Hamilton County Economic Development Corporation
Nancy Ramsey, Family Promise of Hamilton County
Patricia Gamble-Moore, PNC Bank
Traci Kapsalis, JLL Indianapolis
Special Thanks to
Aspire, Inc
BAGI
City of Carmel
City of Fishers
City of Noblesville
City of Westfield
Delaware Township Trustee
Family Promise of Hamilton County
Fishers Residents (2)
Good Samaritan Network
Greater Indy Habitat for Humanity
Hamilton County Commissioners
Hamilton County Community Foundation
Hamilton County Council
Hamilton County Economic Development Corp.
Hamilton County Jail - COPE/TOWER pgrms
Hamilton County Youth Assistance
HAND, Inc
IHCDA
Inclusivity Institute
Indianapolis MPO
Merciful HELP Center
MIBOR REALTOR Association
Noblesville Chamber of Commerce
Noblesville Housing Authority
Noblesville Township Trustee
Old National Bank
Old Town Companies
OneZone
Pedcor & United Fidelity Bank
PNC Bank
Prevail, Inc.
Prosperity Indiana
Pulte Home Builders
Radiant CDC
Salvation Army
Shepherd’s Center of Hamilton County
Stones3 Resources
United Way of Central Indiana
Westfield Chamber of Commerce
Westfield Washington Township Trustee
Woda Cooper Companies Inc.
Hamilton County Housing Collaborative Membership
Acknowledgments
Supporting Organizations
Noblesville Housing Authority
HAND Inc.
Hamilton County Housing Collaborative
Builders Association of Greater Indianapolis (BAGI)
MIBOR REALTOR Association
Hamilton County Economic Development Corporation
Westfield Washington Township