HomeMy WebLinkAboutQuarterly Report on Housing Affordability_12
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Wendy Thomas, Director of Community Development
SUBJECT: Quarterly Report on Housing Affordability
MEETING DATE: November 3, 2014
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Accept this report providing an update on housing affordability for the
quarter ending September 30, 2014.
HOUSING AFFORDABILITY:
Consistent with the last several quarters, condominiums and townhomes in Bozeman remain affordable only for households of four earning 100% or more of Area Median Income (AMI). Median single household residence prices in Bozeman continue to increase as they have over the
last four quarters. Quarterly data on median sales of single family residences indicate this type
of housing is no longer affordable to those making 100% of AMI as the median sale price for
single household homes is now $345,000 up from $329,000 at the end of the last quarter.
The impact of the Federal Reserve winding down its bond buying program continues to have little impact on mortgage interest rates which were at their lowest rates since 2013, as low as
4.03 percent. Similar to the national housing sales data, sales in Bozeman are strong. Data
provided by the Gallatin Association of Realtors (GAR) on single family sales indicate the
number of sales increased 40% over the third quarter of last year. Sales of townhomes and condominiums slowed from the prior three quarters, but are comparable to third quarter sales in 2013. Median prices for these units declined but only marginally. The market here continues to
move homes.
The median sale price of land of less than an acre remained relatively close to what was reported
in the last quarterly report, with a median sale price of $90,000. Upward pressure on land costs will result in a continuing increase in the cost of housing in Bozeman.
Based on Commission direction, Staff released a Request for Proposals for professionals to
analyze the codified affordable housing regulations for Bozeman and offer suggestions to
incentivize the provision of affordable housing. A selection committee ranked the seven
proposals that were submitted and conducted interviews with the top three firms. Staff has begun to negotiate a contract with the top ranked firm. The contract for services will be brought to the Commission for approval in November.
Report prepared October 26, 2014
75
Housing Affordability for Households earning 80% of Area Median Income
$-
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
$300,000.00
$350,000.00
$400,000.00
3rd
Quarter 13
4th
Quarter 13
1st Quarter
14
2nd
Quarter 14
3rd
Quarter 14
SF median sale price
Condo/TH Median Sale Price
80 % AMI Max Sales Price
76
Housing Affordability for Households earning 100% of Area Median Income
$-
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
$300,000.00
$350,000.00
$400,000.00
3rd
Quarter 13
4th
Quarter 13
1st Quarter
14
2nd
Quarter 14
3rd
Quarter 14
SF median sale price
Condo/TH Median Sale Price
100 % AMI Max Sales Price
77