Palm Beach County

1

• Palm Beach County
• Workforce Housing Needs Assessment
• Prepared by
• Florida International University
• The Metropolitan Center

2
Introduction

• Overview and Methodology
• Tasks
• Labor Market and Economic Base
• Housing Affordability
• Key Findings

3
PURPOSE OF THE STUDY

• Provide a quantitative study that will serve as a
  baseline for understanding and measuring Palm
  Beach Countys housing supply and demand
  relationship.

4
APPROACH AND METHODOLOGY

• Prepare a comprehensive housing database and
  analysis designed to assist Palm Beach County in
  determining future housing policies and
  strategies
• Combine economic and housing market analyses
  utilizing the most current and reliable primary
  and secondary data sources
• Provide a clear and workable database that can be
  updated regularly

5
TASKS

• Task 1 Housing Demand Analysis
• Task 2 Housing Supply Analysis
• Task 3 Housing Supply and Demand Assessment
• Task 4 Employer Survey

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Labor Market and Economic Base
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Palm Beach County Top Five Occupations by
Employment and Wages, 2005
2006 State of Florida Minimum Wage 6.40
8
Palm Beach County Occupations Gaining the Most
New Jobs 2004-12
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Palm Beach County Target Workforce
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Employer Survey Results

• 70.6 of large employers (100 or more employees)
  indicated the cost of housing in Palm Beach
  County has impacted their business/institution's
  ability to recruit new employees
• 72.6 of large employers indicated that the cost
  of housing in Palm Beach County has impacted
  their ability to retain existing employees
• The cost of housing has affected recruitment and
  retention of all levels of employees
• 67.8 of employers have had to expand or modify
  their recruitment methods to attract prospective
  employees

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Housing Affordability
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Housing Market in South Florida Compared to State
Source Florida Association of Realtors
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Median Single Family Sale Prices 2003-2006
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Number of Single Family Sales 2003-2006
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CONDO CONVERSION
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HOUSEHOLD INCOME AS OF AMI
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AFFORDABILITY GAP FOR SINGLE FAMILY
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AFFORDABILITY GAP FOR CONDOS
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INCOME BY OCCUPATIONS
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Key Findings
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Findings

• Rapid appreciation coupled with the substantial
  loss of rental inventory has created a local
  housing supply that is financially unattainable
  for most Palm Beach County households
• Lack of affordable housing widespread within Palm
  Beach Countys municipalities
• Affordability gaps are particularly acute in many
  of the larger municipalities that house the
  Countys workforce
• Housing affordability gap levels in the rental
  market are also extreme. The average rent in
  Palm Beach County has increased by 52 percent in
  the past five years

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Findings

• Based on employment and occupations projections,
  Palm Beach Countys future workforce housing
  demand (50-120 of AMI) will total approximately
  98,000 units between 2005-2025
• Future housing demand will consist of 28,906
  units for households earning between 80-120 of
  AMI and 69,060 units for household earning less
  than 80 of AMI
• Future housing demand will be greatest in
  municipalities with currently high concentrations
  of the resident workforce

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Findings

• Affordable housing demand intensified by 3
  interrelated factors

• growing affordable housing supply shortage
• unwavering home value to income ratio
• incessant development pattern producing a
  housing supply mismatch with the housing
  demands of Palm Beach Countys existing and
  future resident workforce.

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Thank You!!!
FIU Metropolitan Center 150 Se 2nd Avenue,
Suite 500 Miami, FL 33131 Office (305)
349-1251 Fax [phone]