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HomeMy WebLinkAboutPackets - Planning and Zoning Commission (219)       AGENDA ORO VALLEY PLANNING AND ZONING COMMISSION REGULAR SESSION November 7, 2023 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE For information on public comment procedures, please see the instructions for in person and/or virtual speakers at the end of the agenda.   To watch and/or listen to the public meeting online, please visit https://www.orovalleyaz.gov/town/departments/town-clerk/meetings-and-agendas Executive Sessions – Upon a vote of the majority of the Planning and Zoning Commission, the Commission may enter into Executive Sessions pursuant to Arizona Revised Statutes §38-431.03 (A)(3) to obtain legal advice on matters listed on the Agenda.        REGULAR SESSION AT OR AFTER 6:00 PM   CALL TO ORDER   ROLL CALL   PLEDGE OF ALLEGIANCE   CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any issue not listed on today’s agenda. Pursuant to the Arizona open meeting law, individual Commission members may ask Town staff to review the matter, ask that the matter be placed on a future agenda, or respond to criticism made by speakers. However, the Commission may not discuss or take legal action on matters raised during "Call to Audience." In order to speak during "Call to Audience", please specify what you wish to discuss when completing the blue speaker card.   COUNCIL LIAISON COMMENTS   REGULAR SESSION AGENDA   1.REVIEW AND APPROVAL OF THE OCTOBER 3, 2023 REGULAR SESSION MEETING MINUTES AND OCTOBER 23, 2023 SPECIAL SESSION MEETING MINUTES   2.PRESENTATION ABOUT THE COMMUNITY'S NEXT 10-YEAR ACTION PLAN, KNOWN AS OV'S PATH FORWARD   3.DISCUSSION ONLY REGARDING THE TOWN OF ORO VALLEY HOUSING STUDY, INCLUDING A DATA ASSESSMENT AND SURVEY ANALYSIS   PLANNING UPDATE (INFORMATIONAL ONLY)   ADJOURNMENT     POSTED: 11/1/2023 at 5:00 p.m. by dt POSTED: 11/1/2023 at 5:00 p.m. by dt When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior to the Commission meeting in the Town Clerk's Office between the hours of 8:00 a.m. – 5:00 p.m. The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Commission meeting at 229-4700.     PUBLIC COMMENT ON AGENDA ITEMS   The Town has modified its public comment procedures for its public bodies to allow for limited remote/virtual comment via Zoom. The public may provide comments remotely only  on items posted as required Public Hearings, provided the speaker registers 24 hours prior to the meeting. For all other items, the public may complete a blue speaker card to be recognized in person by the Chair, according to all other rules and procedures. Written comments can also be emailed to Recording Secretary Jeanna Ancona at jancona@orovalleyaz.gov, for distribution to the Planning and Zoning Commission prior to the meeting. Further instructions to speakers are noted below.     INSTRUCTIONS TO IN-PERSON SPEAKERS Members of the public shall be allowed to speak on posted public hearings and during Call to Audience when attending the meeting in person. The public may be allowed to speak on other posted items on the agenda at the discretion of the Chair. If you wish to address the Commission on any item(s) on this agenda, please complete a blue speaker card located on the Agenda table at the back of the room and give it to the Recording Secretary. Please indicate on the blue speaker card which item number and topic you wish to speak on, or, if you wish to speak during Call to Audience, please specify what you wish to discuss. Please step forward to the podium when the Chair calls on you to address the Commission.  For the record, please state your name and whether or not you are a Town resident.1.Speak only on the issue currently being discussed by the Commission. You will only be allowed to address the Commission one time regarding the topic being discussed.2. Please limit your comments to 3 minutes.3.During Call to Audience, you may address the Commission on any matter that is not on the agenda.4.Any member of the public speaking, must speak in a courteous and respectful manner to those present. 5. INSTRUCTIONS TO VIRTUAL SPEAKERS FOR PUBLIC HEARINGS    Members of the public may attend the meeting virtually and request to speak virtually on any agenda item that is listed as a Public Hearing.  If you wish to address the Commission virtually during any listed Public Hearing, please complete the online speaker form by clicking here https://forms.orovalleyaz.gov/forms/bluecard at least 24 hours prior to the start of the meeting. You must provide a valid email address in order to register. Town Staff will email you a link to the Zoom meeting the day of the meeting. After being recognized by the Chair, staff will unmute your microphone access and you will have 3 minutes to address the Commission. Further instructions regarding remote participation will be included in the email.    Thank you for your cooperation.    Planning & Zoning Commission 1. Meeting Date:11/07/2023   Requested by: Bayer Vella, Community and Economic Development  Case Number: N/A SUBJECT: REVIEW AND APPROVAL OF THE OCTOBER 3, 2023 REGULAR SESSION MEETING MINUTES AND OCTOBER 23, 2023 SPECIAL SESSION MEETING MINUTES RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: N/A. BACKGROUND OR DETAILED INFORMATION: N/A. FISCAL IMPACT: N/A. SUGGESTED MOTION: I MOVE to approve (approve with changes), the October 3, 2023 and October 23, 2023 draft meeting minutes. Attachments 10.3.23 Draft Minutes  10.23.23 Draft Minutes  D R A F T MINUTES ORO VALLEY PLANNING AND ZONING COMMISSION REGULAR SESSION October 3, 2023 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE            REGULAR SESSION AT OR AFTER 6:00 PM   CALL TO ORDER Chair Herrington called the meeting to order at 6:00 p.m.   ROLL CALL Present: Anna Clark, Commissioner Joe Nichols, Commissioner Skeet Posey, Commissioner Phil Zielinksi, Commissioner Daniel Sturmon, Vice Chair Jacob Herrington, Chair Absent: Kimberly Outlaw Ryan, Commissioner Staff Present:Bayer Vella, Planning Manager Joe Andrews, Chief Civil Deputy Attorney Attendees: Melanie Barrett, Council Liaison PLEDGE OF ALLEGIANCE Chair Herrington led the Commission and audience in the Pledge of Allegiance.   CALL TO AUDIENCE There were no speaker requests.   COUNCIL LIAISON COMMENTS Council Liaison Melanie Barrett provided updates on past and upcoming Town Council agenda items as related to Planning, and spoke about the upcoming General Plan.   REGULAR SESSION AGENDA   1.REVIEW AND APPROVAL OF THE SEPTEMBER 5, 2023 REGULAR SESSION MEETING MINUTES       Motion by Vice Chair Daniel Sturmon, seconded by Commissioner Phil Zielinksi to approve the September 5, 2023 meeting minutes.  Vote: 6 - 0 Carried   2.STUDY SESSION: DISCUSSION REGARDING A PROPOSED ZONING CODE AMENDMENT TO TABLE 23-1, PERMITTED USES; SECTION 25.1, REQUIREMENTS FOR SPECIFIC USES; SECTION 27.7, OFF-STREET PARKING; AND CHAPTER 31, DEFINITIONS, TO CREATE MOBILE FOOD UNIT COURTS AS A CONDITIONAL USE WITHIN C-N, C-1, AND C-2 COMMERCIAL ZONES       Senior Planner Kyle Packer provided a presentation that included the following: - Purpose - What are Mobile Food Units and Mobile Food Unit Courts? - Existing Code - Research - Proposed Code - Possible Mobile Food Unit Court locations - General Plan compliance - Discussion Discussion ensued among the Commision and staff.   3.STUDY SESSION: PRESENTATION AND DISCUSSION REGARDING A POTENTIAL TOWN CODE AMENDMENT TO ALLOW THE KEEPING OF ANIMALS FOR FOOD PRODUCTION AND ANIMAL HUSBANDRY PURPOSES ON RESIDENTIALLY ZONED PROPERTIES GREATER THAN 20,000 SQUARE FEET       Planner Alexandra Chavez provided a presentation that included the following: - Purpose - Background - Existing zoning code standards - Key topic #1A: proposed small animal types - Key topic #1B: proposed small animal limits - Key topic #2: identifying appropriate property size - Key topic #3: property standards - Key topic #4: additional stipulations for animals types - General Plan conformance - Discussion and feedback Discussion ensued among the Commission and staff.   PLANNING UPDATE (INFORMATIONAL ONLY) Planning Manager Bayer Vella provide updates on the upcoming Community Academy, Commission meetings and neighborhood meetings.   ADJOURNMENT    Motion by Commissioner Anna Clark, seconded by Commissioner Skeet Posey to adjourn the meeting.    Chair Herrington adjourned the meeting at 7:35 p.m.     I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Town of Oro Valley Planning and Zoning Commission of Oro Valley, Arizona held on the 3rd day of October 2023. I further certify that the meeting was duly called and held and that a quorum was present. ___________________________ Jeanna Ancona Senior Office Specialist D R A F T MINUTES ORO VALLEY PLANNING AND ZONING COMMISSION SPECIAL SESSION October 23, 2023 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE            SPECIAL SESSION AT OR AFTER 6:00 PM   CALL TO ORDER Chair Herrington called the meeting to order at 6:00 p.m.   ROLL CALL Present: Anna Clark, Commissioner Joe Nichols, Commissioner Kimberly Outlaw Ryan, Commissioner Skeet Posey, Commissioner Philip Zielinkski, Commissioner Daniel Sturmon, Vice Chair Jacob Herrington, Chair Staff Present:Bayer Vella, Planning Manager Joe Andrews, Chief Civil Deputy Attorney Attendees: Melanie Barrett, Town Council Liaison PLEDGE OF ALLEGIANCE Chair Herrington led the Commission and audience in the Pledge of Allegiance.   CALL TO AUDIENCE There were no speaker requests.   COUNCIL LIAISON COMMENTS Council Liaison Melanie Barrett spoke about the currently open board and commission positions, and the Community Academy.   SPECIAL SESSION AGENDA   1.PUBLIC HEARING: DISCUSSION AND POSSIBLE ACTION REGARDING A REVISED PLANNED    1.PUBLIC HEARING: DISCUSSION AND POSSIBLE ACTION REGARDING A REVISED PLANNED AREA DEVELOPMENT (PAD) AMENDMENT AND MASTER DEVELOPMENT PLAN/CONCEPTUAL SITE PLAN FOR THE ORO VALLEY MARKETPLACE LOCATED AT THE SOUTHWEST CORNER OF TANGERINE AND ORACLE ROAD       Principal Planner Michael Spaeth provided a presentation that included the following: - Purpose - Subject property - Background - Background - approved entertainment district - Proposed phasing - Proposed recreation amenities - Comparison renderings of existing and proposed Entertainment Distict amenities - Summary and recommendation Keri Silyvn with Lazarus and Silyvn, introduced Rob Longaker with the WLB Group, as well as the applicants Jim Horvath and Toby Horvath. Ms. Silvyn then provided a presentation that included the following: - Conditionally approved plan - November 2022 - Central open space constraints - Conceptual open space and recreation plan Phase 1, including the north side, center portion and south side - Conceptual open space and recreation plan Phase 2 - Conceptual open space and recreation plan Phase 3 (original entertainment district) - Pedestrian connectivity, Phases 1, 2 and 3 Throughout the presentation, Ms. Silvyn stressed the status and importance of an Economic Development Agreement. Chair Herrington opened the public hearing. Oro Valley resident and Tuk Tuk Thai restaurant owner Bud Sayso spoke in support of Agenda Item #1. Chair Herrington closed the public hearing. Discussion ensued among the Commission, Ms. Silvyn, Jim Horvath and staff.    Motion by Commissioner Skeet Posey, seconded by Vice Chair Daniel Sturmon to recommend approval of the revised Planned Area Development (PAD) Amendment based on finding the request is in general conformance with the overall design of the previously approved Entertainment District.    Commissioner Joe Nichols asked for a Friendly Amendment to amend the PAD amendment proposal to enable construction of the courtyard relative to the applicant's market-driven timing. Both the Motioner and Seconder accepted. Commissioner Anna Clark also asked for another Friendly Amendment to add the following conditions: addition of shade structure not previously added (over areas such as bocce ball, corn hole and passive play area) and the exploration of public Wi-Fi in the courtyard. Both the Motioner and Seconder accepted.    Vote: 6 - 0 Carried  Other: Commissioner Kimberly Outlaw Ryan (ABSTAINING)    Motion by Vice Chair Daniel Sturmon, seconded by Commissioner Anna Clark to recommend approval of the revised Master Development Plan/Conceptual Site Plan based on finding the request is in general conformance with the overall design of the previously approved Entertainment District, with the conditional items that were made for the Planned Area Development.  Vote: 6 - 0 Carried  Other: Commissioner Kimberly Outlaw Ryan (ABSTAINING)   PLANNING UPDATE (INFORMATIONAL ONLY) Planning Manager Bayer Vella provided updates on the next Commission meeting and upcoming neighborhood meetings.   ADJOURNMENT    Motion by Commissioner Anna Clark, seconded by Commissioner Kimberly Outlaw Ryan to adjourn the meeting.    Chair Herrington adjourned the meeting at 8:07 p.m.     I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the special session of the Town of Oro Valley Planning and Zoning Commission of Oro Valley, Arizona held on the 23rd day of October 2023. I further certify that the meeting was duly called and held and that a quorum was present. ___________________________ Jeanna Ancona Senior Office Specialist    Planning & Zoning Commission 2. Meeting Date:11/07/2023   Requested by: Bayer Vella, Community and Economic Development  Case Number: Not applicable SUBJECT: PRESENTATION ABOUT THE COMMUNITY'S NEXT 10-YEAR ACTION PLAN, KNOWN AS OV'S PATH FORWARD RECOMMENDATION: This item is for informational and discussion purposes only.  EXECUTIVE SUMMARY:   The path to Oro Valley's future begins now! Residents of all ages and experiences are encouraged to come together to discuss, collaborate, share ideas and listen to one another to renew the community's vision, goals and priorities for Oro Valley. This project was kicked-off with the broader community at the State of the Town on October 25.  The plan, also known as a General Plan, is one of the community's most meaningful opportunities to guide town actions and get results and make their vision a reality. Community ownership and participation is critical to creating a plan that is reflective of the community but also stays relevant for a 10-year timeframe. Prioritizing residents' voices through an inclusive and accessible process was emphasized in the resident-driven Community Engagement Plan. The steps below were completed to ensure the guiding principles in the engagement plan are achieved.  Preparations for the launch   January - March 2023 (Community Engagement Plan) - In preparation for launching out to the broader community, a Community Engagement Plan was adopted by the Town Council. This award-winning plan was built by residents through an advisory group and a town-wide survey. It provides the foundation for this effort by identifying guiding principles, such as being accessible and inclusive, and the methods to engage the community online or at businesses, events, etc.   March - September 2023 (Background Reports) - As part of the launch and ongoing outreach, short videos and facts about topics important to the community were created and will be released throughout the next 4 months on OVPathForward.com. The community is invited to read, listen and share their thoughts about topics including housing, public safety, water, environmental conservation, and much more! September - October 2023 (Branding) - The resident advisory group regrouped to help shape the branding for this effort. Key aspects of the project's branding include showcasing Oro Valley's authentic beauty and exemplifying the community. The following tasks are part of the ongoing effort to have an inclusive and accessible process:  Developing surveys  Refining schedules to include a variety of engagement opportunities Assigning staff to specific engagement tools and events  Designing and ordering promotional materials, such as flyers, brochures, stickers and more. Selecting and launching a new specialized and interactive website that features community engagement tools (e.g. discussion boards, polls, etc.).  Recruiting volunteers and ambassadors to help spread the word and gather feedback  Community engagement Over the next year, substantial community engagement will be conducted in-person and online through events, discussion or social media posts, surveys and more. Community participation and ownership is key to this effort to be successful and to producing an actionable plan that remains relevant for a 10 year timeframe. To start the conversation and develop the community's vision and guiding principles, the following three questions will be asked:  What do you like best about Oro Valley? What do you think will be Oro Valley's biggest challenges in the next 10 years? What should Oro Valley be known for? These comments are just the start of many opportunities to learn from the community. Focused conversations about topics important to the community, such as housing, public safety, roadways, parks, the environment and water will occur over the next four months.  Next steps This update is the first of many that will be presented to the Planning and Zoning Commission. Routine updates will be provided throughout the next year to summarize key milestones, such as:  Feedback from the community related to their vision, guiding principles and focused topics.  Findings from a town-wide statistically-valid survey  Reflecting the community's vision and guiding principles  Over the next three years, the community will work on creating the next 10-year action plan. Volunteers and ambassadors are needed to help ensure everyone's voice is heard. Please signup to volunteer and join the conversation by going online or out in the community at restaurants, events, or shops now. Learn more at OVPathForward.com. BACKGROUND OR DETAILED INFORMATION: Please see the executive summary.  FISCAL IMPACT: Not applicable. SUGGESTED MOTION: This item is for discussion and informational purposes only.    Planning & Zoning Commission 3. Meeting Date:11/07/2023   Requested by: Bayer Vella, Community and Economic Development  Case Number: Not Applicable  SUBJECT: DISCUSSION ONLY REGARDING THE TOWN OF ORO VALLEY HOUSING STUDY, INCLUDING A DATA ASSESSMENT AND SURVEY ANALYSIS RECOMMENDATION: This item is for information and discussion purposes only.  EXECUTIVE SUMMARY: The purpose of this item is to provide background information about a housing study and an associated survey commissioned by the Town. The study implements actions from the voter approved, Your Voice, Our Future General Plan and was further prioritized by the Strategic Leadership Plan.  The scope of the study was presented to the Planning and Zoning Commission and Town Council for feedback. It incorporates both data facts and community perceptions about housing to identify the town's current and future housing needs. The purpose of the study is to continue the community discussion about housing to establish their vision, housing goals and priorities in the next 10-year plan (known as OV's Path Forward).  The executive summary and data assessment were completed by an independent consultant, Elliot D. Pollack & Company. The associated survey was conducted and analyzed by WestGroup Research. Elliot D. Pollack provides market feasibility, economic, and real estate consulting services throughout Arizona. They have completed studies in Sedona, Scottsdale, Flagstaff and many more jurisdictions. Their expertise and ability to analyze housing as it relates to retail development met the needs of the Town's scope of work.  The study is divided into three parts:  Executive Summary (Attachment 1) - Combines the data facts and related survey responses into one comprehensive analysis. 1. Housing Assessment (Attachment 2)- Data facts pulled from the Census, Pima County Assessor's Office, etc.  2. Housing Survey Analysis (Attachment 3) - Responses and analysis of three separate surveys. This includes a statistically valid phone survey for residents, a supplemental online survey for residents, and a separate online survey for business owners and non-resident employees.  3. Each part includes a set of key findings and the following sections:  Current housing types and occupancy Housings costs and attainability Housing needs Relationship to retail demand and town revenues (only applicable to the Executive Summary and Assessment) Conclusion and recommendations (only applicable to the Executive Summary and Assessment) More information about each section is included in the discussion and analysis section of this report. The consultants are presenting this information to the Commission for discussion only.    BACKGROUND OR DETAILED INFORMATION: Completing a housing study is an action in the Your Voice, Our Future General Plan that was further prioritized by the Strategic Leadership Plan (SLP).   General Plan, Action 135: Respond to and plan for the present and future housing needs of the community, while considering changes in demographics and overall growth by conducting a housing inventory, developing a housing plan that addresses the needs of a diverse community, developing zoning strategies that implement the housing plan. Strategic Leadership Plan (SLP): Conduct an assessment to determine the types of residential opportunities necessary to successfully promote a thriving and diverse economic base. The housing study not only helps fulfill the goals of these policy documents but provides critical data for the State-required housing element in OV's Path Forward. With the town projected to reach 50,000 people by 2026, the next 10-year plan must include "standards and programs for" the following as quoted from ARS:   "Elimination of substandard dwelling conditions Improvement of housing quality Variety and affordability and for provision of adequate sites for housing. This element shall contain an identification and analysis of existing and forecasted housing needs. This element shall be designed to make equal provision for the housing needs of all segments of the community, regardless of race, color, creed or economic level." The purpose of the study is to provide data and community perceptions to continue conversations about housing with the community. The feedback provided from these conversations will be used to develop the community's vision, goals, and policies in OV's Path Forward, the next 10-year plan that will guide town decisions. DISCUSSION The housing study is divided into three different parts.  The executive summary (Attachment 1) includes and analyzes both the data facts and the survey responses. 1. The housing assessment (Attachment 2) includes data facts from the Census, Pima County Assessor's Office, and other sources. 2. The survey analysis (Attachment 3) includes responses to three separate yet related surveys. A statistically valid survey was conducted via phone to 400 residents. To ensure everyone had an opportunity to participate, the same survey was conducted online (completed by 1,211 residents). The online survey is supplemental to the phone survey because it does not account for people taking it more than once, nor is it a representative sample of the community. A third survey for business owners and non-resident employees was also conducted online (completed by 136 people). 3. All three parts of the study include the following sections:  Current housing type and occupancy - This is an inventory of the number of units in Oro Valley, type of units and specific household characteristics, such as household size, occupancy type, income, and living situations. 1. Housing costs and attainability - This includes data and perceptions about current housing costs or barriers to homeownership.  2. Housing needs - This section analyzes Oro Valley's current housing inventory and future housing needs as it relates to household sizes, preferences, and attainability. 3. Relationship to retail demand and town revenues (only applicable to the Executive Summary and Assessment) - As the town moves forward with a limited land supply, this section compares different housing types to the amount of supportable retail or town revenues they would generate.  4. Conclusion and recommendations (only applicable to the Executive Summary and Assessment) - This section includes recommendations and options the community may want to consider as it develops its housing goals and policies. No action is being taken on these options until further community outreach is completed through the General Plan process.  5. SUMMARY AND CONCLUSION In summary, the housing study fulfills several actions from the Your Voice, Our Future General Plan. It was conducted by independent consultants who are experts in doing market studies throughout the state. It provides foundational information to continue housing discussions with the community for the next 10-year plan, OV's Path foundational information to continue housing discussions with the community for the next 10-year plan, OV's Path Forward.   The consultants are presenting this information to the Commission for discussion only.    FISCAL IMPACT: Not applicable.  SUGGESTED MOTION: This item is for discussion and informational purposes only.  Attachments ATTACHMENT 1 - EXECUTIVE SUMMARY  ATTACHMENT 2 - HOUSING ASSESSMENT  ATTACHMENT 3 - HOUSING SURVEY REPORT  Housing Summary Report Town of Oro Valley, Arizona Prepared for: Town of Oro Valley October 2023 Prepared by: Elliott D. Pollack & Company 5111 North Scottsdale Road, Suite 202 Scottsdale, Arizona 85250 And Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 1 www.arizonaeconomy.com Table of Contents Purpose ..................................................................................................................................................... 2 Methodology ............................................................................................................................................. 2 Key Findings .............................................................................................................................................. 3 Current Housing Types and Occupancy ................................................................................................ 3 Housing Costs and Attainability ............................................................................................................ 3 Housing Needs ...................................................................................................................................... 5 Relatfonship to Retail Demand and Town Revenues ............................................................................. 6 Recommendatfons ........................................................................................................................................ 7 Summary of Data and Survey Responses .................................................................................................... 9 I. Demographics ................................................................................................................................... 9 II. Current Housing Types and Occupancy ............................................................................................ 9 A. Housing Types ............................................................................................................................... 9 B. Occupancy ................................................................................................................................... 10 III. Housing Costs and Attainability ....................................................................................................... 10 IV. Housing Needs ................................................................................................................................ 13 A. Number of Units .......................................................................................................................... 13 B. Type of Housing and Attainability ............................................................................................... 14 V. Relatfonship to Retail Demand and Town Revenues ...................................................................... 18 VI. Conclusion and Recommendatfons ................................................................................................. 21 Glossary ................................................................................................................................................... 23 Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 2 www.arizonaeconomy.com Purpose The Town of Oro Valley requested a comprehensive housing study to determine its current standing with regard to the housing market, and how the Town’s inventory is responding to the needs of current and future residents. The need for a housing study was identffied in their 2016 General Plan, known as Your Voice, Our Future and further prioritfzed through the Town’s Strategic Leadership Plan. The main purpose of this report is to provide important background information to assist the community in developing their vision, goals, and policies in the next General Plan. Specifically, as they relate to having a complete community with opportunities to live, work and play. This summary merges results from surveys conducted within the Town with data and analyses about the following: • Current Housing Types and Occupancy • Housing Costs and Attainability • Housing Needs • Relatfonship to Retail Demand and Town Revenues • Conclusion and Recommendatfons Methodology Independent research was conducted by Elliott D. Pollack & Company and focused on historical and current housing trends, local demographics, and economic factors such as industry employment and commutfng trends. The data was then used to determine if housing gaps exist. The complete data assessment is in Attachment 1. A survey was conducted by WestGroup Research of Phoenix, Arizona to solicit feedback from residents, business owners and non-residents who work in the town regarding their personal situatfons and perceptfon of housing availability and needs in Oro Valley. These perceptfons are paired with the data facts to create the recommended optfons to address future housing needs in Oro Valley. The full survey report is provided in Attachment 2. Three surveys were conducted between May 10 through May 31, 2023: 1. Resident Phone Survey (completed by 400 residents) - A statfstfcally valid phone survey targetfng Oro Valley residents was conducted by WestGroup Research. Partfcipants were screened by zip code, income, age, and gender to get a representatfve sample size. This is the most reliable method of surveying. 2. Resident Online Survey (completed by 1,211 residents) - To ensure everyone has an opportunity to partfcipate, the same survey was offered to residents online. The online survey is supplemental to the phone survey due to the high number of variabilitfes invalidatfng the data (e.g., people taking the online survey more than once). 3. Business and Workforce Survey (completed by 136 people) - A separate survey was administered online to understand business owners and non-resident employees’ perspectfves about housing in Oro Valley. This survey yielded 36 responses and is also not statfstfcally valid, but provides insight to guide discussions. Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 3 www.arizonaeconomy.com Key Findings Current Housing Types and Occupancy Oro Valley ’s housing profile is mostly single-family residential units and has a high ownership rate. Data Findings Survey Responses Oro Valley ’s housing profile has a high percentage (73%) of single-family detached units compared to multffamily units (19%). Homeownership has declined in the past 20 years from 84.2% in 2000, yet remains relatfvely high for the region at 76.5% (2020). The apartment vacancy rate for Oro Valley has been at low levels (at or below stabilized vacancy of 7%), indicatfng significant demand for rental propertfes. In our opinion, the housing mix in Oro Valley may, in effect, restrict renters from living in the community. Most Oro Valley residents reported owning their current residence (87% phone; 96% online) and reported living in a single-family home (87% phone; 88% online). Housing Costs and Attainability The price of housing in Oro Valley, across all types of housing, has increased dramatically over the past five years. Housing costs were a concern for residents and business owners responding to the surveys. When asked, residents with children were more likely to move out of Oro Valley due to the cost of housing compared to those without children. Resident survey respondents agreed there is a lack of financially attainable housing for Oro Valley’s workforce (teachers, police, first responders)1. Data Findings Affordability has become an issue over the past several years due to rents and home prices that have increased well above the rate of inflatfon. At the same tfme, wages have stagnated. Housing cost burden affects low- and moderate-income households the most, including many essentfal occupatfons such as teachers, police officers, firemen, and nurses. The median household income of $92,500 results in the affordable housing value for Oro Valley being $358,850. In all of 2022, out of 1,006 single family home sales, only 66 homes (0.66%) were sold for less than $359,000. In the condo market, 104 out of 181 sales (57%) in 2022 were sold for less than $359,000. Survey Responses Almost half of resident respondents agreed there is a lack of financially attainable housing for teachers, police, first responders, retail/service employees or entry-level workers (47% phone; 38% online). Nearly one-half of business owners (49%) and employees (48%) surveyed feel housing in Oro Valley is unaffordable and that the average mortgage or rent is too high. The most often selected barriers to homeownership were: • Average home price (53% business owners; 56% employees) • Paying too much rent to save (39% business owners; 38% employees) 1 The US Department of Housing and Urban Development defines “affordable housing” as housing for which the occupant is paying no more than 30% of gross income. “Attainable housing” is defined as housing that costs no more than 30% of the gross incomes of households earning 80% to 120% of the area median income. Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 4 www.arizonaeconomy.com Single family home prices are up nearly 57% over the last four years to an average of $616,928. At this price, single family homes are well beyond the reach of many working families. Most new single-family homes ranged between 2,100 and 3,200 square feet with price ranges between $500,000 and $650,000. Household incomes required to afford a new home in Oro Valley at current interest rates start at $136,700 for a $500,000 home and $177,700 for a $650,000 home. Stabilized interest rates (5%) would equate to $104,600 for a $500,000 home and $136,000 for a $650,000 home. Townhome sales prices experienced an increase of over 57% in the last four years. Manufactured home prices have risen most (62% since 2018) to an average of $185,131. However, they are stfll the most affordable optfon in Oro Valley, but limited to one specific area of Town. Average apartment rents peaked in the second quarter of 2022 and have since moderated to the currently reported average of $1,466 per month. Income qualificatfons for average rent in Oro Valley is now approximately $58,000. • Not having enough money for a down- payment (25% business owners; 26% employees) as barriers to homeownership. Many business owners (43%) felt affordable housing optfons, adequately sized housing optfons (41%), or lack of housing stock and/or commute tfme (both 39%) have an impact on employee recruitment and retentfon. Over half (60% phone; 52% online) of resident respondents felt housing costs were “personally concerning.” Phone respondents were more likely than those who took the survey online to indicate housing costs to be “very concerning.” A top reason why some residents currently live with friends or extended family is to make rent more affordable (40% phone; 29% online). Overall, residents are not likely to leave Oro Valley due to housing costs. However, online respondents with kids were three tfmes more likely to move away from Oro Valley due to housing costs (12%). For residents, the perceived or actual barriers to homeownership were related to cost and affordability with average home price ranked highest (54% phone; 36% online). Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 5 www.arizonaeconomy.com Housing Needs Although the projected amount of future units will support current anticipated population growth, the need for attainable housing options is very apparent. Residents, business owners and employees’ respondents identified single-family homes as most needed in Oro Valley along with townhomes and secondary dwelling units. Detached or attached 1- 2 story homes and low-rise (2-3 story) apartments were the most acceptable rental type. Taller apartments (4-5 stories) were ranked lowest with most resident respondents agreeing they detract from the character of Oro Valley. Historical development patterns and preference for single-family homes will not address the affordability or attainability issues. Low-rise, high-density multi-family housing types are an alternative option to provide affordable housing for Oro Valley’s workforce and residents. Data Findings Survey Responses Based on populatfon forecasts produced by the State of Arizona and Pima Associatfon of Governments for the Town of Oro Valley, the local demand for housing through 2040 totals approximately 3,100 units or an average of 171 units per year, excluding seasonal demand. The town projects roughly 3,117 units remain to be built based on the existfng zoning allowances. A household in which more than 30% of their income is spent on housing is considered cost overburdened. Based on U.S. Census results of households paying more than 30% of their income toward housing costs, the housing affordability gap2 for Oro Valley is 4,561 units, or approximately 22% of total households. Owners comprise the highest number of cost- overburdened households, but a higher percentage of renters are cost overburdened. An estfmated 2,563 owner households (16.3% of owner households) and 1,998 renter households (39.8% of renter households) are cost overburdened. For an economy to operate efficiently, it must have employees to provide the daily needs of its residents without forcing long commutes. According to the U.S. Census, 87.3% of the Town’s residents Although residents believe Oro Valley has a balanced housing mix with a wide range of types and prices (60% phone; 37% online), business owners and employees agreed with this perceptfon the least (36% business owners; 17% of employees). Residents were most likely to rank single-family homes (63% phone; 58% online), townhomes (40% phone; 49% online), and secondary dwelling units (39% phone; 37% online) as a high need for Oro Valley. Almost half of the phone respondents and slightly more than half of the online respondents agreed, apartments detract from the character of Oro Valley (41% phone; 58% online). Detached (49% phone; 66% online) and attached (46% phone; 66% online) 1-2 story homes are seen as the most acceptable rental optfons in Oro Valley. Low rise apartments, 2-3 stories (35% phone and online) were also acceptable. In both surveys, 4-5 story apartments were the least acceptable (14% phone; 10% online). 2 “Housing affordability gap” is the difference between the rents or ownership costs (mortgage, insurance, and property taxes) in a community and the ability of households to afford those rents or values based on income. Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 6 www.arizonaeconomy.com (12,831 workers) in the workforce leave the community each day for work. An estfmated 82.5% of the people who work in Oro Valley (8,474 workers) commute into the community each day from other locatfons. A high number of commuters increases traffic on roadways, especially north- south routes in Oro Valley. It also decreases potentfal spending within the Town if local workers would prefer to live within the Town but cannot due to lack of affordable housing supply. Service workers making less than $50,000 are essentfally priced out of Oro Valley’s rental market. Affordable housing for service workers is an economic issue that could affect the future viability of the town. A lack of affordable housing supply acts as a deterrent to potentfal employees. High housing costs and/or long commute tfmes are less preferable, and workers tend to seek alternatfves if better optfons exist. A comparison between median wages of specific occupatfons, such as firefighters, police, nurses and teachers and Oro Valley’s average monthly mortgage rates show that none of the occupatfons would be able to afford the median monthly mortgage payment as a single income household. Additfonally, the average Oro Valley apartment rent of $1,466 is also out of reach for most occupatfons as a single earner household. Residents agreed that high density housing should be in areas with easy access to shops, services, and facilitfes (60% phone; 54% online) and can blend in with the character of the surrounding areas (54% phone; 38% online). Non-resident employees were most likely to specify lack of affordable housing (71%) or lack of available housing stock (55%) as affectfng their decision to not reside in Oro Valley. Business owners were most likely to rank single family homes, condominiums, and apartments as a “high need” for Oro Valley (49%, 45% and 40%, respectfvely). Employees most often rated townhomes/duplexes and single-family homes as highly needed in Oro Valley (38% and 37%, respectfvely). Nearly half of business owners (49%) and employees (48%) strongly agree or agree they or their business would benefit from high- density optfons. Relationship to Retail Demand and Town Revenues Density is the main predictor for retail development success. The Town has an abundance of vacant commercial land and existing commercial buildings that will not be supported by the remaining number of projected new households. Retail development and new Town revenues, overwhelmingly favor multi-family development. Data Findings New retail development will likely require populatfon growth. It does not precede future residentfal growth and typically the number of residentfal units within a 3-mile radius determines the placement of new retail locatfons. With only 1,471 single family lots available left in Oro Valley, future retail growth will largely depend on supportfng infill development, including higher Survey Responses Of five factors ranked, housing density/ populatfon to support business within a 5-mile radius was most often rated as “important” to business owners in their decision to locate their business in Oro Valley (57%). Residents agreed that high density housing should be in areas with easy access to shops, Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 7 www.arizonaeconomy.com density residentfal development. For example, a hypothetfcal new 250-unit apartment community would add $5.1 million of retail spending annually to the area and support an additfonal 11,700 square feet of commercial space. In comparison, a single- family subdivision on the same property (57 homes) would add $1.6 million of new retail spending annually and support just under 3,600 square feet of commercial space. The Town estfmates roughly 265 acres of commercially zoned land remains, which could support 1.7 million sq. ft. of new commercial space. This may not be supportable by the amount of remaining housing units. Further retail gap analysis is warranted. On a per acre basis, the potentfal for new town revenues from residentfal development overwhelmingly favors multf-family development. Density is the key predictor of new tax revenue generatfon. As another example, a three-story apartment (220 units) on 10-acres would provide an estfmated $518,500 in new Town and local school district revenues compared to only $100,000 in tax revenues from a high-end single-family, 10-acre subdivision (3 units per acre). This is a 500% increase. services, and facilitfes (60% phone; 54% online) and can blend in with the character of the surrounding areas (54% phone; 38% online). Recommendations It is recommended that this report and associated optfons be further discussed with the community through the upcoming General Plan process to develop the Town’s goals, policies, and vision for future housing in Oro Valley. The Town of Oro Valley has opportunitfes to provide the types of residentfal development that ensures support of current and future residents specifically necessary first responders, teachers, and trade professionals. The need for affordable housing is very apparent as average home prices and rents are too high for most working families. Optfons to address this gap include: • Allow higher-density rental products, such as single-family rentals, townhomes, duplexes or 2-3 story apartments in strategic areas along major roadways or near service areas to provide a variety of housing types and increase density to support retail. This may include land currently zoned for commercial development. Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 8 www.arizonaeconomy.com • Conduct a retail gap analysis to determine future commercial development potentfal. If warranted from that analysis, consider approving additfonal residentfal development on commercial parcels to create more demand for retail, create a well-balanced community, and maximize both commercial opportunitfes and town revenue. • Allow secondary dwelling units on existfng lots. • Allow manufactured homes or similar affordable housing types in more areas. Although prices increased, manufactured homes are the most affordable ownership optfon in Oro Valley yet limited to one area. • Seek grant funding opportunitfes to support housing and supportfng infrastructure (such as transportatfon) optfons. • Support carefully targeted subsidized housing programs targetfng workforce level wage (40%- 100% AMI) households to support police, fire, teachers, nurses, and other critfcal service providers in Oro Valley that are currently overburdened by housing costs. Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 9 www.arizonaeconomy.com Summary of Data and Survey Responses A summary of the data and survey responses is provided below. The complete data set is in Attachment 1 and the full survey report is provided in Attachment 2. I. Demographics As of July 2022, the Town of Oro Valley’s populatfon is 48,906 residents. This estfmate only includes permanent residents of the community and excludes the seasonal populatfon. According to the U.S. Census, Oro Valley has an estfmated 1,069 seasonal housing units, likely increasing the populatfon of the Town by 2,465 persons for part of the year (51,371 total persons). Oro Valley has a high median age (55.4 years) and a small average household size (2.24 persons per household) compared to the Arizona average (38.9 years and 2.58 persons per household). Although Oro Valley has a high median age and percentage of residents over 65 (34.7%) compared to the county and the state, the largest age cohort (43.2%) in Oro Valley are those between the ages of 25-65 or workforce age. There are also more family households (61%) than non-family households (39%) in Oro Valley. Of those, 21% have children under 18 and 7% are single-parent households. Less than 1% of grandparents live with and are responsible for their own grandchildren in Oro Valley. Household incomes in Oro Valley are high at an average of $120,121, which exceeds the county average of $80,772 and the statewide average income of $89,693. Median household incomes follow a similar pattern. Renter households in Oro Valley have a median income of $60,497, about 40% above the statewide median. The median income of owner households in Oro Valley ($100,700) is 1.3 tfmes higher than renter incomes. II. Current Housing Types and Occupancy A. Housing Types Oro Valley’s housing inventory is comprised of 23,303 units according to the 2020 Decennial Census with 20,791 of those units occupied on a year-round basis by permanent residents. Oro Valley has a high percentage of single-family detached units (72.7%) and a lower percentage of multffamily units (15.4%) which is typical for a non-urban community. Less than 1% of the housing stock is comprised of manufactured homes, compared to 10% across Pima County. Apartment constructfon has been sporadic, with only four apartment developments built (854 units) in the last 17 years. There are 3,210 market rate apartment units in Oro Valley with a stabilized vacancy rate of 6.9%. According to AirDNA.com, Oro Valley may have as many as 759 short-term rentals (STRs) offered on various platiorms such as AirBnB and VRBO. The Town monitors the number of short-term rental listfngs and as of October 2023, there were between 300-400 actfve listfngs. Of the 759 rentals, 254 units (33.5%) are available during the entfre year which likely means they are occupied only by visitors. The remaining units may be available part tfme when the owner or resident is not living in the unit. The 254 STRs that are used solely as full-tfme vacatfon rentals represent 1.1% of the Town’s total housing. While this is not a significant percentage of the housing stock, it stfll represents units that could be made available to people who are looking to permanently move to or work in the town. STRs also provide tax revenue to the Town via bed taxes and visitor spending sales taxes. Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 10 www.arizonaeconomy.com An estfmated 79% of Oro Valley’s housing inventory was built between 1980 and 2010, with less than 10% of the housing stock built since 2010. Newer inventory exceeds Pima County and Arizona averages in terms of percent of housing stock. Nearly 70% of the apartment inventory in Oro Valley was built prior to 2000. B. Occupancy Oro Valley has a high percentage of owner-occupied units and a lower percentage of renter-occupied units (75.8% owner and 24.2% renter) relatfve to the statewide average (65.8% owner and 34.2% renter). This trend is consistent with what is typically found in the non-urban parts of Arizona, partfcularly in communitfes with tourism-oriented economies. Oro Valley reports a modest amount of overcrowding, with 1.9% of housing containing more than one occupant per room. This compares to 6.2% in Pima County and 7.6% across the state. Homes lacking adequate plumbing facilitfes are also extremely low at 0.3% of inventory compared to 1.1% in Pima County and 1.5% throughout the state. III. Housing Costs and Attainability The price of housing in Oro Valley across all types of housing has increased dramatically over the past four years. Most of the steep increase in prices started in 2020 (13.8% increase in single family home prices) and contfnued in 2021 (18.9% increase for single family homes and 21.7% increase for condos), followed by additfonal increases in 2022 (11.9% increase in single family homes, 52.6% increase for manufactured homes, and 16.9% increase for condos). Manufactured housing units have risen the most (62% since 2018) to an average of approximately $185,131. The price of townhomes experienced an increase of 57% in just the last four years. Single family home prices are also up nearly 57% over the last four years to an average of $616,928 requiring a household income of approximately $160,000 (approximately $129,000 at a stabilized 5% mortgage interest rate). At this price and in the current interest rate environment, single family homes are beyond the affordability/attainability levels of many working families. Even condo/townhomes units have reached above the $350,000 level which would require a $91,7000 household income at current rates ($74,000 at a lower 5% mortgage interest rate). Pricing among actfve new home subdivisions ranges from $450,000 up to $771,400 at the high end. In terms of size, the smallest housing unit offered is 1,717 square feet and ranges up to 3,414 square feet. Year Sales Price % Chg Sales Price % Chg Sales Price % Chg 2012 884 $294,087 15 $62,440 113 $177,496 2013 965 $313,141 6.5%11 $67,284 7.8%136 $190,561 7.4% 2014 957 $322,165 2.9%13 $87,204 29.6%116 $179,110 -6.0% 2015 1,034 $335,147 4.0%28 $74,854 -14.2%144 $189,370 5.7% 2016 1,323 $355,139 6.0%20 $73,425 -1.9%199 $182,073 -3.9% 2017 1,364 $365,071 2.8%19 $100,095 36.3%244 $216,326 18.8% 2018 1,302 $393,748 7.9%20 $114,475 14.4%248 $224,946 4.0% 2019 1,295 $407,256 3.4%16 $129,420 13.1%217 $246,492 9.6% 2020 1,538 $463,551 13.8%16 $131,047 1.3%273 $248,596 0.9% 2021 1,576 $551,264 18.9%11 $121,341 -7.4%200 $302,585 21.7% 2022 1,006 $616,928 11.9%15 $185,131 52.6%181 $353,656 16.9% Price Chg 2018 - 2022 56.7%61.7%57.2% Source: Pima County Assessor Single Family Homes Manufactured Homes Condos/Townhomes Oro Valley Sales & Average Sales Price Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 11 www.arizonaeconomy.com Most new homes offered (75% of new homes sold in the previous 12 months) range between 2,100 and 3,200 square feet and range between $500,000 and $650,000 (59% of new home sales in the previous 12 months). An additfonal 30% of sales ranged from $650,000 to $1,000,000. Household incomes required to afford a new home in Oro Valley at current interest rates (7%) start at $123,000 for a $450,000 home and increase to $136,700 for a $500,000 home and $177,700 for a $650,000 home. Stabilized interest rates (5%) would equate to $104,600 for a $500,000 home and $136,000 for a $650,000 home. Rents in Oro Valley jumped substantfally in 2021, increasing from an average of $1,121 at the end of 2020 to $1,453 by the end of 2021, an increase of nearly 30%. There are no rent-restricted or government subsidized apartment communitfes within the Town. Most of the inventory is comprised of two-bedroom units with an average rent of $1,516. This requires a household income of approximately $60,600. At the lower end among studio apartments, rents average $990 per month, equatfng to a required household income of $39,600. Average rents peaked in the second quarter of 2022 and have since moderated to the currently reported average rent of $1,466. Income qualifications for average rent in Oro Valley is now approximately $58,600. Housing affordability is determined by the standard that no more than 30% of a household’s income is devoted to housing costs. Affordable housing refers to a contfnuum of housing demand that affects persons from the lowest income levels to those earning above the area median income. The affordable housing value for Oro Valley is shown in the following table based on the median income of approximately $92,500. With a 10% down payment and a 7% loan, the maximum affordable house value is $357,040. At an assumed stabilized mortgage rate of 5% the affordable house value is approximately $442,500. In all of 2022, out of 1,006 single family home sales, only 65 homes (0.65%) were sold for less than $359,000 and 305 (30.3%) sales were for less than $442,500. In the condo market, 104 out of 181 sales (57%) in 2022 were sold for less than $359,000 (150 or 83% sold for under $442,500). Current Mortgage Rate Stabilized Mortgage Rate Median Income $92,548 $92,548 Monthly payment (28% of Income)$2,159 $2,159 Interest Rate 7.0%5.0% Down Payment 10%10% Loan Principal $324,582 $402,266 House value with 10% down $357,040 $442,493 Source: U.S. Census; Elliott D. Pollack & Company Oro Valley Affordable House Value Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 12 www.arizonaeconomy.com When asked about housing affordability and costs in Oro Valley, over half (60% phone; 52% online) of resident survey respondents found housing costs to be personally concerning. Phone respondents were more likely than those who took the survey online to indicate housing costs to be “very concerning.” Online respondents with kids were three tfmes more likely to move away from Oro Valley due to housing costs (12%). The top barriers to homeownership for residents were related to cost and affordability with average home price ranked highest (54% phone; 36% online). 26% 34% 40% 15% 37% 48% 0%20%40%60% Very concerning Somewhat concerning Not concerning Concerns of Housing Cost Phone Online 54% 29% 14% 10% 9% 5% 5% 4% 3% 2% 2% 13% 5% 36% 33% 20% 12% <1% 15% 11% 5% 1% 1% <1% 24% 0%20%40%60% Average home price High interest rates Not enough for a down payment Lack of housing supply Poor economy Paying too much rent to save Qualifying for a mortgage Lack of housing choice Lack of financial education Poor credit Employment issues Other No barriers experienced or known Barriers to Homeownership Phone Online Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 13 www.arizonaeconomy.com One-half of the business owners and employees who responded to the survey do not feel housing in Oro Valley is affordable and selected the response that stated the average mortgage and rent is too high. IV. Housing Needs A. Number of Units Oro Valley is forecasted to grow by 6,920 persons over the next 18 years to 54,508 residents and reach build out populatfon of 55,850 residents by 2053. Oro Valley is antfcipated to capture 5.4% of Pima County’s populatfon growth through 2040. At an average household size of 2.24 persons per unit, the demand for housing through 2040 totals approximately 3,100 units or an average of 171 units per year, excluding seasonal demand. The Town of Oro Valley has analyzed the remaining residentfal land within Town boundaries and has determined that 3,117 residentfal units can be built based on existfng zoning allowances and specific site factors (e.g., code requirements, topography constraints, etc.). This also matches the build-out populatfon forecast for the Town. Most of the Town’s projected residentfal and populatfon growth is antfcipated to occur in the next 4-6 years. In terms of residentfal type, approximately 1,471 units are single family residentfal on 71 parcels and 1,646 are designated as multf-family units, which includes single-family rentals, apartments, townhomes, or duplexes on 19 parcels. Only 5 of the remaining multf-family parcels are large enough to accommodate a traditfonal, market-rate apartment community. Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 14 www.arizonaeconomy.com B. Type of Housing and Attainability 1. Housing Affordability Gap The housing affordability gap, or the difference between the rents or ownership costs in a community and the ability of households to afford those rents or values for Oro Valley is 4,561 units (approximately 22% of total households). An estfmated 2,563 owner households are overburdened, equatfng to 16.3% of all homeowners. An estfmated 39.8% of renters (1,998 renter households) are also cost overburdened. As expected, the housing burden is born by the poorest households within the community. Nearly half of the housing cost burdened households within Oro Valley earn $35,000 or less. Over 57% of homeowners in that income range are cost overburdened and over 99% of renters making less than $35,000 are rent overburdened. 2. Business and Workforce Considerations Lack of affordable housing can contribute to decreased quality of life, increased employee turnover, and employee recruitfng issues due to long commute tfmes. The labor force partfcipatfon rate for Oro Valley in 2021 is well below the state average, reflectfve of its retfrement populatfon. This creates some uncertainty as to where service sector employment comes from to serve the retfred populatfon. Although the labor force has grown over the past 10 years, it appears that the labor force may not be keeping up with the demand for services created by the population. Also, when accountfng for the seasonal populatfon of some 3,900 additfonal residents, the labor force partfcipatfon rate would be even lower and nearing 40%. For an economy to operate efficiently, it must have employees to provide the daily needs of its residents without forcing those employees to commute long distances to work. The U.S. Census Bureau also produces a model that estfmates commutfng patterns of residents for countfes and citfes. For Oro Valley, an estimated 82.5% of the people who work in Oro Valley commute into the community each day from other locations. Most come from Tucson (2,300), Casas Adobes (1,326), Marana (762), Catalina Foothills (379), and Phoenix (314). A total of 21.4% of workers report Household Income Range Cost Overburdened Households Less than $20,000 576 $20,000 to $34,999 393 $35,000 to $49,999 464 $50,000 to $74,999 428 $75,000 or more 702 Total Paying More Than 30% of Income 2,563 % Paying More Than 30% of Income 16.3% Source: ACS 2021 5-year estimate Household Income Range Cost Overburdened Households Less than $20,000 567 $20,000 to $34,999 637 $35,000 to $49,999 402 $50,000 to $74,999 265 $75,000 or more 127 Total Paying More Than 30% of Income 1,998 % Paying More Than 30% of Income 39.8% Source: ACS 2021 5-year estimate Oro Valley Oro Valley Owner-Occupied Households Paying More Than 30% of Income Towards Housing Renter-Occupied Households Paying More Than 30% of Income Towards Housing Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 15 www.arizonaeconomy.com commutfng 25 miles or more each day to and from work. Over 1,900 employees (18.5%) report commutfng more than 50 miles to and from work. The chart to the right shows the Pima County median wages for a variety of occupatfons, some of which are considered critfcal service jobs such as firefighters, paramedics, and police officers. The monthly affordable mortgage for each occupation shows that none of the occupations would be able to afford to purchase a home among the local housing stock outlined above as a single income household. Additionally, as the Housing Assessment report illustrates, the average Oro Valley apartment rent of $1,466 a month is also out of reach for most occupations as a single earner household. Wage data does not consider that a household may have two wage earners. However, for single person households or families where only one person works, the availability of affordable housing is a critfcal need. Without such housing, persons or households must find roommates or double up in rental units. There are nearly 5,500 one-person households and 9,600 two-person households. There are 954 households in Oro Valley consistfng of single parents with children. Monthly Monthly Pima County Affordable Affordable 2022 Median Housing Cost Rent Occupation Wage (30% of Income)(Less Utilities) Hotel, Motel, and Resort Desk Clerks $28,964 $724 $624 Retail Salespersons $29,677 $742 $642 Cooks, Restaurant $33,977 $849 $749 Nursing Assistants $35,430 $886 $786 Waiters and Waitresses $36,081 $902 $802 Construction Laborers $38,404 $960 $860 Firefighters $40,181 $1,005 $905 Pharmacy Technicians $41,828 $1,046 $946 Elementary School Teachers $45,943 $1,149 $1,049 Secondary School Teachers $48,477 $1,212 $1,112 Paramedics $49,673 $1,242 $1,142 Police and Sheriff's Patrol Officers $60,583 $1,515 $1,415 Licensed Practical Nurses $61,547 $1,539 $1,439 Registered Nurses $82,164 $2,054 $1,954 Source: Arizona Office of Economic Opportunity in cooperation with the Bureau of Labor Statistics, May 2023 Housing Affordability by Occupation Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 16 www.arizonaeconomy.com When asked about housing challenges in Oro Valley, almost half of resident respondents agreed there is a lack of financially attainable housing for teachers, police officers, first responders, retail/service employees or entry-level workers (47% phone; 38% online). Supportfng the data findings, non-resident employees responding to the survey were most likely to indicate a lack of affordable housing (71%) and/or lack of available housing stock (55%) as impactfng their decision to not reside in Oro Valley. Four in ten business owners also felt affordable housing optfons (43%), adequately sized housing optfons (41%), or lack of housing stock and/or commute tfme (both 39%) have a negatfve impact on employee recruitment and retentfon. Historical development patterns for single family homes will not address the affordability issue without substantial public investment to subsidize down payments or provide forgivable loan grants. 47% 42% 35% 34% 25% 38% 34% 33% 31% 21% 0%20%40%60%80% There is a lack of financially attainable housing for teachers, police, first responders, retail or service employees, or entry level professionals. There is a lack of financially attainable housing for seniors, veterans, or persons with disabilities. There is a lack of adequately sized housing options for multi-generational living. Children who grow up here cannot afford to live in Oro Valley as adults. There is a lack of adequately sized housing options for those who are interested in down- sizing Agreement with Housing Challenges Top 2 Summary - "Strongly Agree- 5" + 4 Rating Among Survey Respondents with an Opinion Phone Online Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 17 www.arizonaeconomy.com Although most resident respondents to the statfstfcally valid phone survey ranked single-family homes as a “high need” in Oro Valley, they also identffied townhomes, duplexes, and secondary residentfal units as a need. Residents also identffied detached and attached 1-2 story rental homes or 2-3 story apartments as the most acceptable rental optfons in Oro Valley. 38% 13% 16% 13% 9% 7% 3% 2% 25% 27% 23% 23% 15% 8% 5% 1% 63% 40% 39% 36% 24% 15% 8% 3% 0%20%40%60%80% Single-family homes Townhomes or duplexes Secondary residential units on an existing… Condominiums Apartments Tiny homes Manufactured homes Mobile homes / RV Parks Housing Needs in Oro Valley "4" and "5 - High need" 5 - High Need 4 Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 18 www.arizonaeconomy.com Business owners were most likely to rank single-family homes, condominiums, and apartments as a “high need” for Oro Valley (49%, 45% and 40%, respectfvely). Employees most often rated townhomes/duplexes and single-family homes as highly needed in Oro Valley (38% and 37%, respectfvely). Yet, nearly half of business owners and employees strongly agree or agree they or their business would benefit from high- density optfons. V. Relationship to Retail Demand and Town Revenues Town residents have long desired additfonal retail optfons. This is evidenced by the open-ended responses in the resident phone and online surveys and the Your Voice, Our Future General Plan, which states, “Increase shopping opportunitfes, services and restaurants” as a guiding principle. However, over the past decade, brick and mortar retail development has been substantfally curtailed, in large part due to the contfnued growth in e-commerce and the dominatfon of big box superstores cutting into overall market share. Brick and mortar retail, though substantfally more muted than in decades past, contfnues. There will contfnue to be demand for grocery stores, personal services, restaurants, entertainment, and fitness- related establishments for the foreseeable future. However, retail development requires populatfon growth. Retail development does not precede future residentfal growth. Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 19 www.arizonaeconomy.com When asked, housing density/ populatfon to support business within a 5-mile radius was most often rated as “important” to business owners in their decision to locate their business in Oro Valley (57% rated “very” or “somewhat” important). With only 1,471 single family lots available left in Oro Valley, future retail growth will largely depend on infill development that includes higher density residential to achieve the population growth sufficient to support new retail or expanded retail development. Residents responding to the survey agreed higher-density housing should be in areas with easy access to shops, services, and facilitfes (60% phone; 54% online) and can blend in with the character of the surrounding areas (54% phone, 38% online). As the following table illustrates, a hypothetfcal new 250-unit apartment community (22 units per acre) would add $5.1 million of retail spending annually to the area, which would support an additfonal 11,700 square feet of commercial space. In comparison, on the same parcel size, an estfmated 57 single family detached homes could be developed (five units per acre). This would add $1.6 million in retail spending power annually, or the equivalent of supportfng just under 3,600 square feet of commercial space. 39% 27% 23% 27% 16% 18% 18% 22% 14% 22% 57% 45% 45% 41% 38% 0%20%40%60%80% Housing density/population to support my business within a 5-mile radius Housing density/population to support my business with a 1-mile radius Affordable housing for my employees Rental options for employees (e.g., apartments, townhomes, etc.) Available housing stock for employees Important Factors for Locating Business in OV Top-Two Ranking Among Business Owners Most important Somewhat Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 20 www.arizonaeconomy.com The Town estfmates roughly 265 acres of commercially zoned land remains for development in Oro Valley, which could support 1.7 million sq. ft. of space. This is likely not supportable by the amount of remaining housing units. However, a full retail gap analysis should be conducted to confirm whether the balance of land use is optfmized. On a per acre basis, the potential for new town revenues from residential development overwhelmingly favors multi-family development. In every scenario modeled, density is the key predictor of new tax revenue generatfon. As illustrated on the following table, a traditfonal, three-story garden apartment community on ten acres (220 units), with average household incomes of $74,800 would provide an estfmated $518,500 in new Town and school district revenues compared to only $100,000 in tax revenues from a high-end single- family subdivision (three units per acre) with homes priced at $600,000 and average household incomes of nearly $200,000. The 190 additfonal housing units containing more modest incomes far exceed the spending power of the low-density development. Income & Spending Assumptions Dollars % of Income Dollars % of Income Required Income $74,800 $129,000 Total Retail Spending/HH (Excluding vehicles)$20,317 27.2%$27,297 21.2% Local-Serving Retail Spending $8,915 11.9%$11,324 8.8% Grocery Spending/HH $4,378 5.9%$5,321 4.1% Other Non-Grocery Local-Serving Retail Spending/HH $4,537 6.1%$6,003 4.7% Regional-Serving Retail Spending/HH $8,034 10.7%$11,345 8.8% Restaurant Spending/HH $3,367 4.5%$4,628 3.6% New Households 250 57 Supportable Local-Serving Retail Demand Demand Demand Total Grocery Spending $1,094,510 $303,303 Supportable SF at $500 Per SF in Sales 2,189 607 Other Local-Serving Retail Spending (excluding Groceries)$1,134,231 $342,155 Supportable SF at $300 Per SF in Sales 3,781 1,141 Restaurant Spending $841,780 $263,821 Supportable SF at $500 Per SF in Sales 1,684 528 Regional Serving Retail Spending $2,008,614 $646,667 Supportable SF at $500 Per SF in Sales 4,017 1,293 TOTAL LOCAL-SERVING RETAIL DEMAND 11,671 3,568 Sources: U.S. Consumer Expenditure Survey; AZ DOA; Elliott D. Pollack & Company Apartments Single Family Homes Retail Spending Analysis - New Residential Development Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 21 www.arizonaeconomy.com VI. Conclusion and Recommendations In conclusion, the Town of Oro Valley has opportunitfes to provide the types of residentfal development that ensures support of current and future residents specifically necessary first responders, teachers, and trade professionals. The need for affordable housing is very apparent as average home prices and rents are too high for most working families. It is recommended that this report and associated optfons be further discussed with the community through the upcoming General Plan process to develop the Town’s goals, policies, and vision for future housing in Oro Valley. The Town of Oro Valley has opportunitfes to provide the types of residentfal development that ensures support of current and future residents specifically necessary first responders, teachers, and trade professionals. The need for affordable housing is very apparent as average home prices and rents are too high for most working families. Optfons to address this gap include: • Allow higher-density rental products, such as single-family rentals, townhomes, duplexes or 2-3 story apartments in strategic areas along major roadways or near service areas to provide a variety of housing types and increase density to support retail. This may include land currently zoned for commercial development. • Conduct a retail analysis to determine future commercial development potentfal. • Allow secondary dwelling units on existfng lots. Multi- Family: Four Story Apartment Multi- Family: Garden Apartment Single Family: Build to Rent Single Family: Small Lot Single Family: Move Up Single Family: Luxury Primary Impacts Sales Tax $104,700 $49,300 $30,300 $15,100 $13,700 $8,200 Lease Tax $204,700 $93,800 $59,300 ------ Utility Tax $30,800 $15,000 $8,900 $5,400 $4,300 $2,500 State Shared Revenue $314,700 $153,800 $90,900 $38,300 $25,500 $12,800 Secondary Impacts (employees) Spending Sales Tax $6,900 $3,300 $2,000 $1,600 $1,000 $500 State Shared Revenue $700 $300 $200 $100 $100 $0 Other Districts School District $484,500 $203,000 $120,000 $62,300 $55,400 $34,600 Total Tax Revenues $1,147,000 $518,500 $311,600 $122,800 $100,000 $58,600 Source: Elliott D. Pollack & Co.; IMPLAN; AZ Dept. of Revenue; AZ Tax Research Association Annual Fiscal Impact on Municipalities Land Use Comparisons on a 10-acre Site Town of Oro Valley (2023 Dollars) Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 22 www.arizonaeconomy.com • Allow manufactured homes or similar affordable housing types in more areas. Although prices increased, manufactured homes are the most affordable ownership optfon in Oro Valley yet limited to one area. • Seek grant funding opportunitfes to support housing and supportfng infrastructure (such as transportatfon) optfons. • Support carefully targeted subsidized housing programs targetfng workforce level wage households (40%-100% AMI) to support police officers, fire, teachers, nurses, and other critfcal service providers in Oro Valley that are currently overburdened by housing costs. Town of Oro Valley Housing Assessment & Survey Summary Elliott D. Pollack & Company 23 www.arizonaeconomy.com Glossary Active subdivision – A subdivision that has pulled at least one permit or had at least one closing in the past 12 months. Affordable Housing - Determined by using the standard that no more than 30% of a household’s income is devoted to housing costs. Attainable Housing – Associated with the housing demand from critical service providers or essential personnel such as police, firefighters, nurses, teachers, and others. Cost-burdened - The number of cost-burdened owners and renter households that are paying more than 30% of their income on housing. Housing Affordability Gap - The shortage of units that are needed to provide affordable housing for all segments of the population. Family –A group of two people or more (one of whom is the householder) related by birth, marriage, or adoption and residing together. Multi-family - A building, or portion thereof, designed for occupancy by three (3) or more families. Overcrowding – Defined by HUD as more than one person per room living in a housing unit. Overcrowding is a symptom of the lack of affordable housing when persons are forced to acquire housing that is smaller than their needs or where people must double-up in housing to make ends meet. Attachment 1: Housing Assessment Town of Oro Valley, Arizona Prepared for: Town of Oro Valley October 2023 Prepared by: Elliott D. Pollack & Company 5111 North Scottsdale Road, Suite 202 Scottsdale, Arizona 85250 Town of Oro Valley Housing Assessment Elliott D. Pollack & Company TOC www.arizonaeconomy.com Table of Contents Executive Summary .................................................................................................................................... i Key Findings ............................................................................................................................................... i Current Housing Types and Occupancy ................................................................................................. i Housing Costs and Attainability ............................................................................................................ ii Housing Needs ..................................................................................................................................... iii Relationship to Retail Development and Town Revenues ................................................................... iv Recommendations ................................................................................................................................... iv I. Background and Methodology.......................................................................................................... 1 II. Demographics ................................................................................................................................... 2 A. Population ..................................................................................................................................... 2 B. Household Characteristics ............................................................................................................ 5 III. Current Housing Types and Occupancy ............................................................................................ 7 A. Apartment Inventory .................................................................................................................. 12 B. Short-Term Rentals Inventory ..................................................................................................... 13 IV. Housing Costs and Attainability .................................................................................................. 15 A. Ownership Market ...................................................................................................................... 16 B. Apartment Rental Market ........................................................................................................... 19 V. Housing Needs ................................................................................................................................ 19 A. Number of Units ............................................................................................................................. 19 B. Type of Housing and Attainability ................................................................................................... 20 VI. Relationship to Retail Demand and Town Revenues .................................................................. 26 VII. Conclusions and Recommendations ............................................................................................... 29 Glossary ................................................................................................................................................... 30 Appendix A: Additional Population and Household Data ........................................................................ 31 Appendix B: Additional Economic Statistics ............................................................................................ 37 Town of Oro Valley Housing Assessment Elliott D. Pollack & Company i www.arizonaeconomy.com Executive Summary The Town of Oro Valley commissioned a comprehensive housing study to determine its current standing with regards to the housing market and how the Town’s housing is responding to the needs of current and future residents. The main purpose of this report is to provide important background information to assist the community in developing their vision, goals, and policies in the next General Plan. Specifically, as they relate to having a complete community with opportunities to live, work and play. Several key steps were required to accomplish the goals set out by the Town. Independent research within this report focused on historical and current housing trends, local demographics, and economic factors such as industry employment and commuting trends. Housing gaps were then calculated from the data. The assessment is divided into five main sections: • Current Housing Types and Occupancy • Housing Costs and Attainability • Housing Needs • Relationship to retail demand and Town revenues • Conclusion and Recommendations Key Findings Current Housing Types and Occupancy There is a significant demand for rental properties. However, the housing mix in Oro Valley may, in effect, restrict renters from living in the community. • Oro Valley has a high percentage of single-family detached units (73%) compared to multifamily units (19%). An estimated 13.7% of the housing stock is located within traditional apartment communities. • There are 759 short-term rentals with roughly 264 available year-round. • Homeownership has declined in the past 10 years yet remains high for the region at 76.5%. • Approximately 3,674 single family homes are rented compared to 2,750 apartment-style units (apartments, condos, and time-share units). • The apartment vacancy rate for Oro Valley has been at low levels (at or below stabilized vacancy of 7%), indicating significant demand for rental properties. Town of Oro Valley Housing Assessment Elliott D. Pollack & Company ii www.arizonaeconomy.com Housing Costs and Attainability The price of housing in Oro Valley, across all types of housing, has increased dramatically over the past five years. • Affordability has become an issue over the past few years for many income levels due to rents and values that have increased well above the rate of inflation . Home prices increased 40% from 2018 through 2021 compared to 11% inflation over that period. At the same time, wages have not kept pace, with household income increasing 21% from 2018 through 2021. Housing cost burden affects low- and moderate-income households the most, including many essential occupations such as elementary and high school teachers, police, firemen, and nurses. • With a median income of $92,500 the affordable housing value for Oro Valley is $358,850. In all of 2022, out of 1,006 single family home sales, only 66 homes (0.66%) were sold for less than $359,000. In the condo market, 104 out of 181 sales in 2022 were sold for less than $359,000. • Most new single-family homes (75% of new homes sold in the previous 12 months) offered sizes ranging between 2,100 and 3,200 square feet and prices range between $500,000 and $650,000 (59% of new home sales in the previous 12 months). An additional 30% of sales ranged from $650,000 to $1,000,000. Household incomes required to afford a new home in Oro Valley at current interest rates start at $136,700 for a $500,000 home and $177,700 for a $650,000 home. Stabilized interest rates (5%) would equate to $104,600 for a $500,000 home and $136,000 for a $650,000 home. • Existing single family home prices are up 57% over the last five years to an average of $616,928 (compared to 18% inflation over the same period). At this price, single family homes are likely well beyond the reach of many working families , requiring a household income of approximately $160,000 (approximately $129,000 at a stabilized 5% mortgage interest rate). • Townhomes experienced an increase of 57% in the last four years. Manufactured homes have risen most (62% since 2018) to an average of $185,131. However, they are still the most affordable option in Oro Valley yet limited to a specific area of Town. • Average apartment rents peaked in the second quarter of 2022 and have since moderated to the currently reported average rent of $1,466. Income qualifications for average rent in Oro Valley is now approximately $58,000. Town of Oro Valley Housing Assessment Elliott D. Pollack & Company iii www.arizonaeconomy.com Housing Needs Although the projected amount of future units will support the anticipated population growth, the need for attainable housing options is very apparent when comparing housing cost trends, wages, and households who are cost overburdened. Historical development patterns of single- family homes will not address the affordability issue. Low-rise, high-density multi-family housing types are an alternative option to provide affordable housing. • The demand for housing through 2040 totals approximately 3,100 units or an average of 171 units per year, excluding seasonal demand. The town projects roughly 3,117 units remain to be built based on the existing zoning allowances. • The housing affordability gap, or the difference between the housing available in Oro Valley and the housing needed to ensure that working households can live in the Town for a reasonable cost is 4,561 units, or approximately 22% of total households. • Owners comprise most cost-burdened households (the number of households paying more than 30% of their income on housing ). An estimated 2,563 owner households and 1,998 renter households are cost overburdened. • Oro Valley has a limited resident labor force to support its growing population. Although the labor force grew by 7.1% since 2015, the population grew by 11.3% over the same timeframe. This means the labor force is not keeping up with the demand for services created by the population. • For an economy to operate efficiently, it must have employees to fill service-related, retail, and restaurant jobs without forcing long commutes. For Oro Valley, 87.3% of the Town’s residents (12,831 workers) in the workforce leave the community each day for work. An estimated 82.5% of the people who work in Oro Valley (8,474 workers) commute into the community each day from other locations. A high number of commuters increases traffic on roadways, especially north-south routes in Oro Valley. It also decreases potential spending within the Town if local workers would prefer to live within the Town but cannot due to lack of affordable housing supply. • Service workers making less than $50,000 are essentially priced out of Oro Valley’s rental market as a single income household. Affordable housing for service workers is an economic issue that could affect the future viability of the town. • A comparison between median wages of specific occupations, such as firefighters, police, nurses and teachers and Oro Valley’s average monthly mortgage rates show that none of the occupations would be able to afford a $2,159 monthly mortgage payment as a single income household. Additionally, the average Oro Valley apartment rent of $1,466 is also out of reach for most occupations as a single earner household. • Historical development patterns and preference for single family homes will not address the cost issue without substantial public investment to subsidize down payments or provide forgivable loan grants. Town of Oro Valley Housing Assessment Elliott D. Pollack & Company iv www.arizonaeconomy.com Relationship to Retail Development and Town Revenues Density is the main predictor for retail development. The Town has an abundance of vacant commercial land that will not be supported by the remaining number of projected units. Retail development and new Town revenues, overwhelmingly favor multi -family development. • With 1,471 single family lots available left in Oro Valley, future retail growth will largely depend on supporting infill development, including higher density residential products. • The Town estimates roughly 265 acres of commercially zoned land remains, which could support 1.7 million square feet of new commercial space. This may not be supportable by the amount of remaining housing units. A retail gap analysis should be conducted to determine an optimal land use balance for the remaining vacant land. • On a per acre basis, the potential for new tax revenues from residential development overwhelmingly favors multi-family development. Density is the key predictor of new tax revenue generation. For example, a three-story apartment (220 units) on 10-acres would provide an estimated $510,000 in new local revenues compared to only $100,000 in tax revenues from a high-end single-family, 10-acre subdivision (3 units per acre). Recommendations It is recommended that this report and associated options be further discussed with the community through the upcoming General Plan process to develop the Town’s goals, policies, and vision for future housing in Oro Valley. The Town of Oro Valley has opportunities to provide the types of residential development that ensures support of current and future residents specifically necessary first responders, teachers, and trade professionals. The need for affordable housing is very apparent as average home prices and rents are too high for most working families. Options to address this gap include: • Allow higher-density rental products, such as single-family rentals, townhomes, duplexes or 2-3 story apartments in strategic areas along major roadways or near service areas to provide a variety of housing types and increase density to support retail. This may include land currently zoned for commercial development. • Conduct a retail gap analysis to determine future commercial development potential. If warranted from that analysis, consider approving additional residential development on commercial parcels to create more demand for retail, create a well-balanced community, and maximize both commercial opportunities and town revenue. • Allow secondary dwelling units on existing lots. Town of Oro Valley Housing Assessment Elliott D. Pollack & Company v www.arizonaeconomy.com • Allow manufactured homes or similar affordable housing types in more areas. Although prices increased, manufactured homes are the most affordable ownership option in Oro Valley yet limited to one area. • Seek grant funding opportunities to support housing and supporting infrastructure (such as transportation) options. • Support carefully targeted subsidized housing programs targeting workforce level wage (40%-100% AMI) households to support police, fire, teachers, nurses, and other critical service providers in Oro Valley that are currently overburdened by housing costs. Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 1 www.arizonaeconomy.com I. Background and Methodology The Town of Oro Valley commissioned a comprehensive housing study to determine its current standing with regards to the housing market and how the Town’s housing is responding to the needs of current and future residents. The need for a housing study was identified in their 2016 General Plan, known as Your Voice, Our Future and further prioritized through the Town’s strategic leadership plan. The study also provides important data for their upcoming General Plan effort. • 2016 General Plan: Respond to and plan for the present and future housing needs of the community, while considering changes in demographics and overall growth by conducting a housing inventory, developing a housing plan that addresses the needs of a diverse community, and developing zoning strategies that implement the housing plan. • Legal requirements for Oro Valley’s next General Plan: A housing element consisting of standards and programs for the elimination of substandard dwelling conditions, for the improvement of housing quality, variety, and affordability and for provision of adequate sites for housing. This element shall contain an identification and analysis of existing and forecasted housing needs. This element shall be designed to make equal provision for the housing needs of all segments of the community regardless of race, color, creed, or economic level. Several key steps were required to accomplish the goals set out by the Town. Independent research within this report focused on historical and current housing trends, local demographics, and economic factors such as industry employment and commuting trends. The housing assessment also identifies the affordability gap for the community - the shortage of units that are needed to provide affordable housing for all segments of the population – and provides recommendations and strategies to address the housing gap. Affordability is determined by using the standard that no more than 30% of a household’s income is devoted to housing costs1. The U.S. Census provides an estimate of the number of cost- burdened owner and renter households that are paying more than 30% of their income on housing. This essentially identifies the size of the housing gap. To determine the affordability gap, data from a variety of sources are evaluated including the U.S. Census, the American Community Survey, and the Pima County Assessor. 1 The US Department of Housing and Urban Development defines “affordable housing” as housing for which the occupant is paying no more than 30% of gross income. “Attainable housing” is defined as housing that costs no more than 30% of the gross incomes of households earning 80% to 120% of the area median income. Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 2 www.arizonaeconomy.com Unfortunately, data from the U.S. Census is limited to what the Census calls 5 -Year estimates which are based on 60 months of collected data and 2020 decennial census data readily available at the time of the analysis. The most comprehensive data comes fr om the decennial count with additional data for Oro Valley from the 2021 5-Year estimates which are subject to variability and in some cases a high margin of error. To compensate for this shortcoming, housing data was also received from the Pima County Assessor’s office. II. Demographics A. Population According to the Arizona Office of Economic Opportunity (OEO), Oro Valley had a population of 48,906 persons as of July 2022 or 46,607 in 2020. Estimates for 2023 were not available at the time of this report. The City of Tucson and the Town of Marana experienced the largest increase in population since 2010. Place 2010 2015 2020 2022 2010-2022 Change Marana*35,071 42,144 52,643 56,758 21,687 Oro Valley 41,005 43,956 47,208 48,906 7,901 Sahuarita 25,389 28,602 34,378 36,179 10,790 South Tucson 5,642 5,113 4,615 4,599 -1,043 Tucson 520,678 527,138 543,136 554,021 33,343 Balance of County 353,230 358,966 363,609 371,835 18,605 Pima County 981,015 1,005,920 1,045,589 1,072,298 91,283 Place 2010 2015 2020 2022 CAGR Marana*4.0%4.6%2.9%3.8% Oro Valley 3.8%1.0%1.4%1.4% Sahuarita 1.7%3.0%1.7%2.8% South Tucson -2.3%-1.6%-0.1%-1.6% Tucson 0.5%0.3%1.5%0.5% Balance of County 0.1%0.5%0.9%0.4% Pima County 0.6%0.7%1.3%0.7% CAGR - Compound Annual Rate Source: Arizona Office of Economic Opportunity Pima County Population Change 2010-2022 Percent Change Pima County Jurisdictions Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 3 www.arizonaeconomy.com The above population estimates only include permanent residents of the communities and do not account for the seasonal population. The following table provides an estimate of the seasonal population for 2021. The estimates for seasonal housing in Pima County and the state show a decline in the number of units across all cities and the incorporated area since 2015. The reason for the decline could be a Census survey issue or economic as the recovery from the Great Recession forced some seasonal housing owners to dispose of their homes. No matter the reason for the decline, the seasonal population of Pima County and Oro Valley increase tremendously during the fall, winter, and spring months. Oro Valley has 1,069 seasonal housing units, likely increasing the population of the town by 2,465 persons for six to nine months of the year and pushing the total population to nearly 51,400 persons in 2022 or 49,100 in 2020. As expected, the population of Oro Valley has a high median age above 55.4 years and a smaller average household size compared to the Arizona and county averages. A high median age of a community raises questions about the availability of personnel to provide services for the population. Without a younger population, service workers may need to commute long distances to work in businesses in the town. In addition, it is unusual to find a larger household size in renter-occupied units as is noted in Oro Valley. Typically, younger persons in smaller households occupy rental units as is found across Arizona. Year Oro Valley Pima County Arizona Seasonal Housing Units 2020 1,069 13,285 182,829 Potential Seasonal Population 2020 2,465 25,489 472,183 Seasonal Housing Units & Seasonal Population Pima County Arizona Median Age 55.4 41.2 38.9 Avg Household Size 2.24 2.41 2.58 Source: U.S. Census 2020 Decennial Census Median Age & Average Household Size Oro Valley Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 4 www.arizonaeconomy.com Although Oro Valley has a high median age and percentage of residents over 65 (34.7%) compared to the county and the state, the largest age cohort (43.2%) in Oro Valley are those between the ages of 25- 65 or workforce age. There are also more family (61%) households than non-family households in Oro Valley. Of those, 21% have children under 18 and 7% are single -parent households. Less than 1% of grandparents live with and are responsible for their own grandchildren in Oro Valley. Estimate %Estimate %Estimate % Total:14,309 260,337 1,771,949 Married couple family:12,249 85.6%182,080 69.9%1,257,542 71.0% With own children under 18 years:2,980 24.3%57,676 31.7%445,648 35.4% Under 6 years only 514 17.2%11,902 20.6%86,372 19.4% Under 6 years and 6 to 17 years 534 17.9%12,596 21.8%103,720 23.3% 6 to 17 years only 1,932 64.8%33,178 57.5%255,556 57.3% No own children under 18 years 9,269 75.7%124,404 68.3%811,894 64.6% Other family:2,060 14.4%78,257 30.1%514,407 29.0% Male householder, no spouse present:631 30.6%25,199 32.2%171,254 33.3% With own children under 18 years:302 47.9%11,552 45.8%81,575 47.6% Under 6 years only 33 10.9%2,485 21.5%17,873 21.9% Under 6 years and 6 to 17 years 32 10.6%2,007 17.4%14,790 18.1% 6 to 17 years only 237 78.5%7,060 61.1%48,912 60.0% No own children under 18 years 329 52.1%13,647 54.2%89,679 52.4% Female householder, no spouse present:1,429 69.4%53,058 67.8%343,153 66.7% With own children under 18 years:652 45.6%24,776 46.7%166,088 48.4% Under 6 years only 87 13.3%4,085 16.5%26,988 16.2% Under 6 years and 6 to 17 years 63 9.7%4,531 18.3%32,723 19.7% 6 to 17 years only 502 77.0%16,160 65.2%106,377 64.0% No own children under 18 years 777 54.4%28,282 53.3%177,065 51.6% Source: 2020 Decennial Census Oro Valley Pima County Arizona Families by Type with Children Estimate %Estimate %Estimate % Total 46,607 1,015,933 6,991,233 Under 5 years 1,442 3.1%51,040 5.0%391,939 5.6% 5 to 9 years 2,151 4.6%57,542 5.7%443,369 6.3% 10 to 14 years 2,541 5.5%62,917 6.2%484,427 6.9% 15 to 19 years 2,555 5.5%61,778 6.1%460,653 6.6% 20 to 24 years 1,682 3.6%66,530 6.5%450,896 6.4% 25 to 29 years 1,569 3.4%66,187 6.5%460,184 6.6% 30 to 34 years 1,704 3.7%63,861 6.3%449,330 6.4% 35 to 39 years 2,030 4.4%60,572 6.0%434,070 6.2% 40 to 44 years 2,315 5.0%56,024 5.5%408,137 5.8% 45 to 49 years 2,560 5.5%55,416 5.5%408,798 5.8% 50 to 54 years 2,704 5.8%56,563 5.6%409,237 5.9% 55 to 59 years 3,320 7.1%65,253 6.4%440,031 6.3% 60 to 64 years 3,869 8.3%70,366 6.9%442,351 6.3% 65 to 69 years 4,400 9.4%69,601 6.9%413,723 5.9% 70 to 74 years 4,508 9.7%61,946 6.1%369,127 5.3% 75 to 79 years 3,336 7.2%42,455 4.2%252,900 3.6% 80 to 84 years 2,086 4.5%25,744 2.5%150,859 2.2% 85 years and over 1,835 3.9%22,138 2.2%121,202 1.7% Under 20 Years 8,689 18.6%233,277 23.0%1,780,388 25.5% 65 years+16,165 34.7%221,884 21.8%1,307,811 18.7% Source: 2020 Decennial Census Population by Age Oro Valley Pima County Arizona Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 5 www.arizonaeconomy.com B. Household Characteristics The educational attainment of Oro Valley residents is well above the statewide average for bachelor’s degrees and higher (55.9% versus 31.2%). There is also a much smaller percentage of adults without at least a high school diploma compared to the state (2.9% in versus 11.7%). Estimate %Estimate %Estimate % Total:33,733 628,136 4,295,384 Living with own grandchildren under 18 years:418 1.2%21,900 3.5%168,740 3.9% Grandparent responsible for own grandchildren under 18 years:113 27.0%7,870 35.9%56,087 33.2% Grandparent responsible less than 6 months 14 12.4%816 10.4%4,466 8.0% Grandparent responsible 6 to 11 months 16 14.2%860 10.9%5,778 10.3% Grandparent responsible 1 or 2 years 8 7.1%1,290 16.4%10,976 19.6% Grandparent responsible 3 or 4 years 8 7.1%1,471 18.7%9,613 17.1% Grandparent responsible 5 years or more 67 59.3%3,433 43.6%25,254 45.0% Grandparent not responsible for own grandchildren under 18 years 305 73.0%14,030 64.1%112,653 66.8% Not living with own grandchildren under 18 years 33,315 98.8%606,236 96.5%4,126,644 96.1% Grandparents Raising Children Oro Valley Pima County Arizona Estimate %Estimate %Estimate % Population 25 years and over 35,563 699,288 4,792,007 Less than 9th grade 453 1.3%28,678 4.1%236,487 4.9% 9th to 12th grade, no diploma 575 1.6%45,790 6.5%323,973 6.8% High school graduate (includes equivalency)4,943 13.9%149,641 21.4%1,125,498 23.5% Some college, no degree 6,662 18.7%172,153 24.6%1,177,629 24.6% Associate's degree 3,032 8.5%62,649 9.0%433,004 9.0% Bachelor's degree 10,392 29.2%137,833 19.7%923,339 19.3% Graduate or professional degree 9,506 26.7%102,544 14.7%572,077 11.9% High school graduate or higher 34,535 97.1%624,820 89.4%4,231,547 88.3% Bachelor's degree or higher 19,898 56.0%240,377 34.4%1,495,416 31.2% Source: ACS 2021 5-year estimate Educational Attainment Oro Valley Pima County Arizona Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 6 www.arizonaeconomy.com Household incomes in Oro Valley are high at an average of $120,121, higher than the county average of $80,772 and the statewide average income of $89,693. Median incomes follow a similar pattern. Renter households in Oro Valley have incomes of $60,497, about 40% above the statewide median. The median income of owner households in Oro Valley is 1.3 times higher than renter incomes ($100,700 versus $60,497). Estimate %Estimate %Estimate % Occupied Units 20,754 417,483 2,683,557 Less than $10,000 789 3.8%26,719 6.4%147,596 5.5% $10,000 to $14,999 249 1.2%18,369 4.4%91,241 3.4% $15,000 to $19,999 1,058 5.1%38,408 9.2%206,634 7.7% $20,000 to $24,999 1,100 5.3%40,078 9.6%228,102 8.5% $25,000 to $34,999 2,034 9.8%55,943 13.4%338,128 12.6% $35,000 to $49,999 2,843 13.7%72,225 17.3%488,407 18.2% $50,000 to $74,999 3,279 15.8%54,690 13.1%362,280 13.5% $75,000 to $99,999 4,213 20.3%62,205 14.9%437,420 16.3% $100,000 to $149,999 2,055 9.9%24,214 5.8%187,849 7.0% $150,000 or more 3,155 15.2%24,631 5.9%198,583 7.4% Average Median Homeowner Median Renter Median Source: ACS 2021 5-year estimate $37,718 $46,290 Households By Income Pima County Arizona $80,772 $89,693 $59,215 $65,913 $76,054 $79,873 Oro Valley $120,121 $92,548 $100,700 $60,497 Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 7 www.arizonaeconomy.com As illustrated in the table to the right, household income growth in Oro Valley is outpacing the state. Median household income has increased by 21% from 2018 through 2021 versus 17.3% for the state over the same time period. Average wages have grown 18.1% in Oro Valley from 2018 through 2021 versus 16.2% for the state over the same time period. Also, as noted above, median and average incomes for town households are still above statewide incomes yet like Marana, which has a median household income of $94,983. III. Current Housing Types and Occupancy Oro Valley’s housing inventory is comprised of 23,303 units according to the 2020 Decennial Census with 20,791 of those units occupied on a year-round basis by permanent residents. Oro Valley has a high percentage of single-family detached units and a lower percentage of multifamily units which is typical for a suburban community. Approximately 15.4% of all housing units are considered apartments or multifamily (buildings with five or more units in a building) compared to 17.2% across Pima County. Pima County also has a higher percentage of mobile homes at 10.0% versus just 1% within the Town (manufactured homes are currently restricted to just one area of Town). The housing mix in Oro Valley may, in effect, restrict renters from living in the community. If renters do desire to live in the community, alternatively they must rent single family homes or mobile homes which usually have higher rents. Pima County Arizona Median Income 2018 $76,484 $51,037 $56,213 2019 $83,341 $53,379 $58,945 2020 $86,863 $55,023 $61,529 2021 $92,548 $59,215 $65,913 2018-2021 Change 21.0%16.0%17.3% Average Income 2018 $101,736 $70,610 $77,221 2019 $107,122 $73,554 $80,779 2020 $110,466 $75,662 $84,380 2021 $120,121 $80,772 $89,693 2018-2021 Change 18.1%14.4%16.2% Source: ACS 2021 5-year estimate Household Income Growth 2018 - 2021 Oro Valley Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 8 www.arizonaeconomy.com An estimated 2,512 units are considered vacant or 12.1% of the total inventory, lower than the state but higher than Pima County. Vacant units are classified in several ways including units that are in the process of being sold or rented and those used for seasonal or recreational purposes. Approximately 39.5% of all vacant units in the town are used for seasonal use, a much higher ratio than found in Pima County or the state. Stated another way, seasonal housing equals about 4.6% of the total housing inventory in Oro Valley. As noted earlier in this report, assuming 2.31 person per seasonal unit, this could add another 2,465 persons to the population of the town during the winter months. Some of the vacant seasonal units could be short-term rentals, but the Census does not track this type of rental housing. Estimate %Estimate %Estimate % Total:23,458 467,191 3,056,890 1, detached 17,053 72.7%280,750 60.1%1,959,704 64.1% 1, attached 1,691 7.2%33,610 7.2%152,413 5.0% 2 184 0.8%8,252 1.8%39,593 1.3% 3 or 4 675 2.9%15,839 3.4%103,919 3.4% 5 to 9 964 4.1%16,993 3.6%119,475 3.9% 10 to 19 1,200 5.1%22,619 4.8%123,151 4.0% 20 to 49 514 2.2%16,935 3.6%76,510 2.5% 50 or more 925 3.9%24,065 5.2%167,599 5.5% Mobile home 234 1.0%46,668 10.0%302,822 9.9% Boat, RV, van, etc.18 0.1%1,460 0.3%11,704 0.4% Source: ACS 2021 5-year estimate Units In Structure Oro Valley Pima County Arizona Estimate %Estimate %Estimate % Total:23,303 470,132 3,082,000 Occupied 20,791 89.2%427,021 90.8%2,705,878 87.8% Vacant 2,512 12.1%43,111 10.1%376,122 13.9% Source: 2020 Decennial Census Oro Valley Pima County Arizona Occupancy Status Estimate %Estimate %Estimate % Total:2,512 43,111 376,122 For rent 606 22.4%12,989 26.1%86,906 23.3% Rented, not occupied 122 4.5%1,327 2.7%8,665 2.3% For sale only 296 10.9%4,630 9.3%31,309 8.4% Sold, not occupied 136 5.0%1,838 3.7%13,571 3.6% For seasonal, recreational, or occasional use 1,069 39.5%13,285 26.7%182,829 49.0% For migrant workers 1 0.0%19 0.0%915 0.2% Other vacant 282 10.4%9,023 18.2%51,927 13.9% Source: 2020 Decennial Census Oro Valley Pima County Arizona Vacancy Status Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 9 www.arizonaeconomy.com Of the vacant units in the town, most are single family detached houses. And 9.3% of the single-family inventory is considered vacant. However, all types of housing have high vacancy levels above 11.5% with the highest level occurring in the single family attached home category at 26%. Some of these vacant units could be short-term rentals. Oro Valley has a high percentage of owner-occupied units and a lower percentage of renter- occupied units (includes apartments, townhomes, and single-family homes) relative to the statewide average. This trend is consistent with what is typically found in the non-urban parts of Arizona, particularly in communities with tourism-oriented economies. Homeownership has been relatively robust in the town but has declined since 2000. The decline in homeownership was largely due to the Great Recession which affected homeowners across the country. Homeownership stabilized but decline from 77.4% to 76.5% 2020, well above the Arizona average. Estimate %Estimate %Estimate % Total:20,791 427,021 2,705,878 Owned with a mortgage or a loan 9,892 47.6%179,331 42.0%1,217,609 45.0% Owned free and clear 6,006 28.9%92,439 21.6%549,676 20.3% Renter occupied 4,893 23.5%155,251 36.4%938,593 34.7% Source: 2020 Decennial Census Oro Valley Pima County Arizona Tenure Total Vacant % Units Units Vacant Total:23,458 2,704 11.5% 1, detached 17,053 1,579 9.3% 1, attached 1,691 440 26.0% 2 184 28 15.2% 3 or 4 675 160 23.7% 5 to 9 964 184 19.1% 10 to 19 1,200 134 11.2% 20 to 49 514 48 9.3% 50 or more 925 88 9.5% Mobile home 234 43 18.4% Boat, RV, van, etc.18 0 0.0% Source: ACS 2021 5-year estimate Oro Valley Vacant Units by Type Oro Valley Pima County Arizona 2000 84.2%64.3%68.0% 2010 77.4%64.1%66.0% 2020 76.5%63.6%65.3% Source: Decennial Census Homeownership Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 10 www.arizonaeconomy.com The inventory of occupied single-family housing in the town totals 15,474 units according to the U.S. Census. Approximately 18% of those homes or 3,674 single family homes are rented. There are also 3,149 apartment-style units in the community which is a combination of apartments, condominiums, and time share units (5 to 50 units in a building). Eighty-seven percent (87%) of those units (2,750) are rented. Residential building permit activity was extremely strong prior to the Great Recession, stabilizing at around 500 permits in 2003-2004. However, the rising cost of housing at that time curtailed demand and, after the recession, it was not until 2012 that activity rose above 100 units. Since 2018, permitting has leveled off at an average of 300 units. 2021 was strong because of the COVID pandemic at 340 units with a slowdown to below 200 in 2022. Estimate %Estimate %Estimate % Total:20,754 417,483 2,683,557 Owner-occupied housing units:15,736 75.8%267,835 64.2%1,765,658 65.8% 1, detached 13,981 88.8%212,668 79.4%1,451,827 82.2% 1, attached 1,034 6.6%17,458 6.5%87,460 5.0% 2 122 0.8%700 0.3%3,263 0.2% 3 or 4 40 0.3%1,522 0.6%11,212 0.6% 5 to 9 129 0.8%1,514 0.6%11,355 0.6% 10 to 19 10 0.1%810 0.3%5,862 0.3% 20 to 49 233 1.5%797 0.3%5,074 0.3% 50 or more 27 0.2%616 0.2%10,350 0.6% Mobile home 160 1.0%30,526 11.4%170,606 9.7% Boat, RV, van, etc.0 0.0%1,224 0.5%8,649 0.5% Renter-occupied housing units:5,018 24.2%149,648 35.8%917,899 34.2% 1, detached 1,493 29.8%45,006 30.1%312,804 34.1% 1, attached 217 4.3%11,782 7.9%45,955 5.0% 2 34 0.7%6,534 4.4%30,984 3.4% 3 or 4 475 9.5%11,594 7.7%80,168 8.7% 5 to 9 651 13.0%13,390 8.9%93,092 10.1% 10 to 19 1,056 21.0%18,054 12.1%99,401 10.8% 20 to 49 233 4.6%13,006 8.7%60,308 6.6% 50 or more 810 16.1%21,124 14.1%138,269 15.1% Mobile home 31 0.6%8,922 6.0%53,863 5.9% Boat, RV, van, etc.18 0.4%236 0.2%3,055 0.3% Source: ACS 2021 5-year estimate Oro Valley Pima County Arizona Tenure by Units In Structure Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 11 www.arizonaeconomy.com Since 2018, 98.2% of all residential permits have been for single family detached units. Only 26 multifamily units have been built over the past five years. 0 100 200 300 400 500 600 700 800 900 1,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Oro Valley -Total Residential Permits Source: U.S. Census Bureau Recession Year 1-unit 2-units 3-4 units 5+ units Total 2010 57 0 0 0 57 2011 59 0 0 0 59 2012 167 0 0 0 167 2013 157 0 0 0 157 2014 134 0 0 562 696 2015 159 0 0 0 159 2016 176 0 0 228 404 2017 335 0 0 0 335 2018 311 4 16 0 331 2019 215 6 0 0 221 2020 385 0 0 0 385 2021 340 0 0 0 340 2022 219 0 0 0 219 Source: U.S. Census Bureau; RealData, Inc. Oro Valley Residential Permits Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 12 www.arizonaeconomy.com A. Apartment Inventory An inventory of traditional apartment complexes was conducted for this study. The inventory was prepared from 50 or more units from RealData, Inc. The inventory outlined in the following table may not include all apartment units in smaller apartment communities but is the best information available. The town’s inventory of apartment units is largely comprised of small (less than 100 units) and medium sized (100 to 300 units) complexes, the largest being 424 units in size. The inventory totals 3,210 units. The last major complex to be built is the 64-unit Linda Vista in 2023. Prior to Linda Vista, no apartments had been constructed since 2016. Of the communities identified, none of the complexes have been identified as “affordable” defined as built under the Low-Income Housing Tax Credit (LIHTC) program. The apartment inventory represents 13.7% of the housing stock in the town. The average size of complexes is 214 units with a median age built in 1997. The apartment vacancy rate for Oro Valley has been at low levels (at or below stabilized vacancy of 7%), indicating significant demand for rental properties. According to RealData, the stabilized vacancy rate currently stands at 6.9%. A stabilized vacancy rate for apartments is typically 5% to 7% to account for lease expirations and people moving in and out of complexes. Properties Units Rent Avg. Size Rent/SF Vacancy Year Built Casas Lindas 144 $1,640 1,115 $1.47 9.0%1987 La Reserve Villas 240 $1,556 900 $1.73 7.0%1988 Catalina Crossing 97 $1,110 871 $1.27 3.0%1985 Saddle Ridge 248 $1,292 677 $1.91 8.0%1985 Peak at Oro Valley 330 $1,298 848 $1.53 6.0%1986 Overlook at Pusch Ridge 424 $1,135 815 $1.39 4.0%1986 Rock Ridge 319 $1,473 1,030 $1.43 16.0%1995 Pusch Ridge 144 $1,084 866 $1.25 1.0%1998 Golf Villas at Oro Valley 231 $1,582 1,105 $1.43 4.0%1999 Sunnyslope 41 $995 545 $1.83 7.0%1971 Oro Vista 138 $1,815 1,081 $1.68 6.0%2006 Encantada at Steam Pump 288 $1,640 1,030 $1.59 8.0%2014 Villas at San Dorado 274 $1,695 1,063 $1.59 7.0%2014 Canyons Linda Vista Trail 228 $1,669 1,057 $1.58 6.0%2016 Linda Vista 64 $2,477 1,019 $2.43 100.0%2023 Total/Average 3,210 $1,466 943 $1.55 8.8%1997 Source: RealData Oro Valley Apartments Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 13 www.arizonaeconomy.com Apartment vacancies below 5% indicate a significant shortage of rental units. This could cause rents to rise due to strong demand, further increasing the cost of housing cost for households that cannot afford to purchase a home. The lack of construction of new rental units is apparent from the data. Likewise, the abundance of short-term rentals may also impact the availability of rental housing for permanent residents of the community. B. Short-Term Rentals Inventory Short-term rentals (STRs) of homes and apartment units offered on platforms such as VRBO or Airbnb have impacted the availability of housing for permanent residents. The short-term rental website Airdna was accessed to determine the potential number of rentals that may be available in the Oro Valley area. The data indicates there may have been as many as 759 rentals offered in Oro Valley on various platforms over the past year. The Town monitors the number of short- term rental listings and as of October 2023, there were between 300-400 active listings. Virtually all these units are listed as entire house or unit rentals as opposed to room rentals within a unit. The chart to the right shows the number of days a unit is “available for rent”. Any units listed for rent beyond 180 days are considered full-time rentals. The “booked Days Availble Available Units % of Total Booked Units % of Total 1-90 267 35.2%443 58.5% 91-180 236 31.1%198 26.2% 181-270 156 20.7%96 12.7% 271-365 100 13.3%22 3.0% Total 759 759 Source: Airdna Oro Valley Short Term Rentals Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 14 www.arizonaeconomy.com units” show those that were rented over the past year. Most of the rentals are for less than 90 days. Of the 759 rentals listed on the Airdna website, 254 units are available during the entire year which likely means they are occupied only by visitors. The remaining units may be available part time when the owner or resident is not living in the unit. Airdna indicates there are currently 759 active rentals in the town. Active rentals vary by the season of the year. Using 254 STRs that are used solely as full-time vacation rentals, this represents about 1.1% of the total 23,303 housing units in the town. Although this is not a significant percentage of the housing stock, it still represents units that could have been made available to people who are looking to permanently move to or work in the town. Data listed on the Airdna website has not been verified through any other sources. Hotels and timeshare rentals are known to list units on the main STR platforms which can affect the total available units. However, Airdna.com likely provides an indication of the number of short- term rentals in the area. The following map shows the extent on STRs listed of the Airdna website. Short-term rentals do not pose an issue for Oro Valley. However, the extent of short-term rentals in the town should be monitored periodically to determine if they start raising an issue. Location of Short-Term Rentals Source: Airdna Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 15 www.arizonaeconomy.com IV. Housing Costs and Attainability The price of housing in Oro Valley, across all types of housing, has increased dramatically over the past five years. While still affordable, manufactured housing units have risen the most (62% since 2018) to an average of approximately $185,131. The price of townhomes rose at a slower rate than manufactured homes, but they still experienced an increase of 57% in just the last year. However, manufactured home prices are likely influenced by the small number of units that have been sold, creating significant variation in pricing from year to year. The National Association of Home Builders (NAHB) and Wells Fargo Bank produce a quarterly report known as the Housing Opportunity Index or HOI for metropolitan areas of the country. The HOI is defined as the share of homes sold in an area that would be affordable to a family earning the local median income based on standard mortgage underwriting criteria. NAHB assumes a family can afford to spend 28% of gross income on housing, obtains a 30 -year mortgage with a 10% down payment at a current mortgage rate according to a Freddie Mac survey. The HOI for the Greater Tucson metro area, which is Pima County, has been declining since 2012 when the index was at 87.7%, reaching 35% in the fourth quarter of 2022 before increasing slightly to 46.8% in the first quarter of 2023. While this is a dramatic decrease in affordability in ten years, the national HOI stands at 45.6% in 2022 which is down from 78.8% in 2012. However, the national median income is estimated by NAHB at $96,300 compared to the Pima County median income of $86,000. This means that a home in Pima County must be much lower in price to be affordable for a family earning the median income. The NAHB estimates the median price of a single-family home in Pima County at $325,000 which likely includes manufactured units. Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 16 www.arizonaeconomy.com The affordable housing value for Oro Valley is shown in the following table based on the median income of approximately $92,500. With a 10% down payment and a 6.95% loan, the maximum affordable house value is $358,850. In all of 2022, out of 1,006 single family home sales, only 66 homes (0.66%) were sold for less than $359,000. In the condo market, 104 out of 181 sales in 2022 were sold for less than $359,000. A. Ownership Market Single family home prices are up 57% over the last five years to an average of $616,928. At this price, single family homes are likely well beyond the reach of many working families. Even condo/townhomes units have reached above the $350,000 level. Most of the steep increase in prices started in 2020 and continued in 2021, followed by additional increases in 2022. Median Income $92,548 Monthly payment at 28% of Income $2,159 Interest Rate 6.95% Down Payment 10% Loan Principal $326,227 Monthly Loan Payment $2,159 House value with 10% down $358,850 Affordable House Value Oro Valley Year Sales Price % Chg Year Sales Price % Chg Year Sales Price % Chg 2012 884 $294,087 2012 15 $62,440 2012 113 $177,496 2013 965 $313,141 6.5%2013 11 $67,284 7.8%2013 136 $190,561 7.4% 2014 957 $322,165 2.9%2014 13 $87,204 29.6%2014 116 $179,110 -6.0% 2015 1,034 $335,147 4.0%2015 28 $74,854 -14.2%2015 144 $189,370 5.7% 2016 1,323 $355,139 6.0%2016 20 $73,425 -1.9%2016 199 $182,073 -3.9% 2017 1,364 $365,071 2.8%2017 19 $100,095 36.3%2017 244 $216,326 18.8% 2018 1,302 $393,748 7.9%2018 20 $114,475 14.4%2018 248 $224,946 4.0% 2019 1,295 $407,256 3.4%2019 16 $129,420 13.1%2019 217 $246,492 9.6% 2020 1,538 $463,551 13.8%2020 16 $131,047 1.3%2020 273 $248,596 0.9% 2021 1,576 $551,264 18.9%2021 11 $121,341 -7.4%2021 200 $302,585 21.7% 2022 1,006 $616,928 11.9%2022 15 $185,131 52.6%2022 181 $353,656 16.9% Price Chg 2018 - 2022 57%Price Chg 2018 - 2022 62%Price Chg 2018 - 2022 57% Source: Yavapai County Assessor; Coconino County Assessor Condominiums/Townhomes Sales & Average Sales Price Oro Valley Single Family Homes Mobile/Manufactured Homes Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 17 www.arizonaeconomy.com There are 41 active new home subdivisions (subdivision that has pulled at least one permit or had at least one closing in the past 12 months) within the Town of Oro Valley. Of that total, 25 “subdivisions” are custom home builders, typically consisting of a limited number of lots (1-5 homes). New home builders pulled 150 permits over the last 12 months and reported 164 closings. The most active subdivisions include Saguaros Viejos East (Meritage Homes, 55 permits and 48 closings), Ironwood Estates (Pulte Homes, 25 permits and 1 closing), Capella (Richmond American Homes, 21 permits and 10 closings), and Villages at Silverhawke (Meritage Homes, 33 closings). There are 399 remaining available lots in active subdivisions, representing less than three years until build out at the current velocity of new home construction. Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 18 www.arizonaeconomy.com Pricing among active new home subdivisions ranges from $450,000 up to $771,400 at the high end. In terms of size, the smallest housing unit offered is 1,717 square feet and ranges up to 3,414 square feet. Most new homes offered range between 2,100 and 3,200 square feet and range between $500,000 and $650,000. Household incomes required to afford a new home in Oro Valley at current interest rates start at $123,000 for a $450,000 home and increase to $136,700 for a $500,000 home and $177,700 for a $650,000 home. $400,000 $450,000 $500,000 $550,000 $600,000 $650,000 $700,000 $750,000 $800,000 1,600 1,850 2,100 2,350 2,600 2,850 3,100 3,350 House Sqft. COMPETITION PRODUCT GRAPH -Town of Oro Valley SOURCE: MAGIC PROFESSIONAL HOUSING AND LAND APPLICATION MERITAGE HOMES 80X165 BOULDER VISTA AT STONE CANYON - PERMITS 12 MONTHS / 0 PUSCH RIDGE PROPERTIES 30-50X80+ LA RESERVE VILLAS - PERMITS 12 MONTHS / 4 MATTAMY HOMES 65X120 ALTERRA AT VISTOSO TRAILS - PERMITS 12 MONTHS / 0 MERITAGE HOMES 55X130 SAGUAROS VIEJOS EAST - PHASE I/2 - PERMITS 12 MONTHS / 55 INSIGHT HOMES VAR LA CANADA RIDGE - PERMITS 12 MONTHS / 0 RICHMOND AMERICAN 70X125 VISTOSO HIGHLANDS - PERMITS 12 MONTHS / 0 D R HORTON 87X120 MILLER RANCH - PERMITS 12 MONTHS / 0 FAIRFIELD HOMES VAR STONE CANYON/BOULDER VISTA - PERMITS 12 MONTHS / 7 STONE CANYON CASITAS LLC VAR THE GOLF CASITAS AT STONE CANYON - PERMITS 12 MONTHS / 0 MERITAGE HOMES 60X120 VILLAGES AT SILVERHAWKE - PERMITS 12 MONTHS / 0 PULTE HOMES 50-60X120 RANCHO VISTOSO 5-H/TRANQUILO - PERMITS 12 MONTHS / 5 PULTE HOMES 50-60X120 RANCHO VISTOSO 5-W/5-X/CACTUS & CANYON/VALLEY VISTA - PERMITS 12 MONTHS / 0 PULTE HOMES 70X125 SHANNON 80/IRONWOOD ESTATES - PERMITS 12 MONTHS / 25 Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 19 www.arizonaeconomy.com B. Apartment Rental Market Rents for apartments in Oro Valley jumped substantially in 2021, increasing from an average of $1,121 at the end of 2020 to $1,453 by the end of 2021, an increase of nearly 30%. Average apartment rents peaked in the second quarter of 2022 and have since moderated to the currently reported average rent of $1,466. The following table depicts the inventory of apartments in Oro Valley by floor plan. Two-bedroom units make up most units within the Town (52.7%) followed by one-bedroom units (37.0%). Nearly 10% of the apartment inventory is three-bedroom units. There are very few studios in the market. The average rent and required income for each unit size is shown below: • Studio - $990 with a required income of $39,600 • One-bedroom – $1,259, with a required income of $50,400 • Two-bedroom - $1,516, with a required income of $60,600 • Three-bedroom - $1,834, with a required income of $73,400 V. Housing Needs A. Number of Units The Town of Oro Valley is forecasted to grow by just 6,920 persons over the next 18 years (the forecast was prepared by the Arizona Office of Economic Opportunity in 2018 and will be updated by the end of 2023). If accurate, Oro Valley will only capture 5.4% of Pima County’s population growth through 2040. Most of the population growth in the county will occur in the City of Floor Plan Units % Total Rent Avg. Size Rent/ SF Required Income Studio 24 0.7%$990 400 $2.48 $39,600 One Bedroom 1,187 37.0%$1,259 716 $1.76 $50,400 Two Bedrooms 1,692 52.7%$1,516 1,049 $1.44 $60,600 Three Bedrooms 307 9.6%$1,834 1,283 $1.43 $73,400 TOTAL 3,210 $1,466 943 $1.55 $58,600 Source: RealData Oro Valley Apartments Quarter Properties Units Rent Vacancy Stabilzed 2020 Q4 14 3,146 $1,121 3.9% 2021 Q4 14 3,146 $1,453 3.4% 2022 Q1 14 3,146 $1,488 4.2% 2022 Q2 14 3,146 $1,495 6.3% 2022 Q3 14 3,146 $1,476 6.7% 2022 Q4 14 3,146 $1,483 7.1% 2023 Q1 15 3,210 $1,466 8.8%6.9% Source: RealData Oro Valley Apartments Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 20 www.arizonaeconomy.com Tucson, unincorporated areas of the county and the Town of Marana. No place is expected to experience population loss. At an average household size of 2.24 persons per unit, the demand for housing through 2040 totals approximately 3,100 units or an average of 171 units per year. This demand estimate does not consider seasonal or recreational housing demand that may continue to increase the non - permanent population of the community. Residential building permits have been above 300 units per year since 2016 but are anticipated to slow down in the next 10 years. The Town of Oro Valley has analyzed the remaining residential land within Town boundaries and has determined that 3,117 residential units can be built. This also matches the forecasted build- out population for the Town. Most of the Town’s projected residential and population growth is anticipated to occur in the next 4-6 years. In terms of residential type, approximately 1,471 units are single family residential on 71 parcels and 1,646 are designated as multi-family units, which includes single-family rentals, apartments, townhomes, or duplexes on 19 parcels. Only 5 of the remaining multi-family parcels are large enough to accommodate a traditional, market-rate apartment community. B. Type of Housing and Attainability 1. Housing Affordability Gap The housing affordability gap is the difference between the rents or housing values in a community and the ability of households to afford those rents or values. Affordability has become an issue over the past few years for many income levels due to rents and values that have increased well above the rate of inflation. At the same time, wages have stagnated. Housing affordability affects low- and moderate-income households, including many essential occupations such as teachers, police officers, firemen, and nurses. Places 2022 2025 2030 2035 2040 Marana 56,758 53,217 58,139 66,306 74,563 82,287 29,070 54.6%22.8% Oro Valley 48,906 47,588 49,224 51,758 53,864 54,508 6,920 14.5%5.4% Sahuarita 36,179 34,259 37,168 41,781 45,856 49,148 14,889 43.5%11.7% South Tucson 4,599 5,678 5,679 5,681 5,682 5,684 6 0.1%0.0% Tucson 554,021 556,616 565,169 578,080 590,122 601,587 44,971 8.1%35.2% Balance of County 371,835 370,083 376,231 385,618 394,000 401,928 31,845 8.6%24.9% Pima County Total 1,072,298 1,067,441 1,091,610 1,129,224 1,164,088 1,195,142 127,701 12.0% Source: Arizona Office of Econonomic Opportunity *2022 Population Projections is only available at a County or Higher level. 2018 Popoulation Projections were use for Subcounty places Forecast 2022 - 2040 Population Forecast % of County's Growth 2021- 2040 Change % Change Actual 2022 Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 21 www.arizonaeconomy.com There has been much discussion about the term “affordable housing”. “Affordable” is often associated with housing for the lowest income households. “Workforce” or “attainable” housing is often associated with the demand from critical service providers or essential personnel such as police, firefighters, nurses, schoolteachers, and others. In the context of this study, the term “affordable” will apply to all households that are burdened by housing costs or those that can’t find housing due to its cost relative to household income. Affordable housing refers to a continuum of housing demand that affects persons from the lowest income levels to those earning above the area median income. A healthy economy and housing market should address all these demand sectors. As outlined in this report, households are considered burdened by the cost of housing if rent and other housing costs total more than 30% of total household income. For a homeowner, the cost of housing typically includes a mortgage, property taxes, and insurance. For a renter, the cost of housing is rent and utilities. The U.S. Department of Housing and Urban Development also recognizes households that pay more than 50% of income towards housing known as an “severely cost burdened.” Across the country, approximately one-third of all households are considered cost burdened and about 16% are severely burdened. The following table outlines the number of renter households in Arizona, Pima County, and Oro Valley based on the U.S. Census 5-year American Community Survey. The housing cost burden for renters in Oro Valley is lower than the statewide average, but still totals nearly 2,000 households. For Oro Valley, 39.8% of all renters pay more than 30% of their income toward housing. An estimated 20.3% of renter households pay more than 50% of their incomes on housing, totaling 1,019 households. These households are considered severely rent overburdened. Estimate %Estimate %Estimate % Total:5,018 149,648 917,899 Less than 10.0 percent 415 8.3%5,276 3.5%34,370 3.7% 10.0 to 14.9 percent 635 12.7%12,106 8.1%75,438 8.2% 15.0 to 19.9 percent 588 11.7%17,625 11.8%111,618 12.2% 20.0 to 24.9 percent 547 10.9%17,479 11.7%118,168 12.9% 25.0 to 29.9 percent 522 10.4%15,291 10.2%103,104 11.2% 30.0 to 34.9 percent 346 6.9%13,476 9.0%79,296 8.6% 35.0 to 39.9 percent 194 3.9%9,122 6.1%58,411 6.4% 40.0 to 49.9 percent 439 8.7%13,130 8.8%78,864 8.6% 50.0 percent or more 1,019 20.3%35,478 23.7%196,099 21.4% Not computed 313 6.2%10,665 7.1%62,531 6.8% Total Spending More than 30%1,998 39.8%71,206 47.6%412,670 45.0% Total Spending More than 50%1,019 20.3%35,478 23.7%196,099 21.4% Source: ACS 2021 5-year estimate Gross Rent as % of Household Income Oro Valley Pima County Arizona Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 22 www.arizonaeconomy.com For owner occupants, the housing cost burden for those with a mortgage is higher than the statewide average. Nearly 2,100 households in Oro Valley fall into this category. It should be noted that homeowners typically have more options than renters to address their housing burden. For instance, an owner could sell the home and move to a less costly unit if one is available. Similarly, homeowners could have voluntarily increased their housing costs by taking out a second mortgage or home equity loan on the home. These factors all affect the housing burden of homeowners while renters have limited opportunities to reduce their housing burden beyond seeking a smaller or older unit. The housing affordability gap for Oro Valley is 4,561 units, or approximately 22% of total households. Owners comprise most cost-overburdened households. An estimated 2,563 owner households are overburdened, and an estimated 1,998 renter households are cost overburdened. • One of the largest groups of households affected is earning less than $20,000. There are 567 households earning less than $20,000 that are burdened by rent. These households Estimate %Estimate %Estimate % Housing units with a mortgage 9,330 163,987 1,121,042 Monthly Mortgage Payment Less than $600 50 0.5%4,227 2.6%26,384 2.4% $600 to $999 634 4.0%28,226 10.5%157,650 8.9% $1,000 to $1,499 1,752 11.1%59,131 22.1%347,653 19.7% $1,500 to $1,999 2,238 14.2%37,441 14.0%280,931 15.9% $2,000 to $2,499 2,163 13.7%18,084 6.8%153,284 8.7% $2,500 to $2,999 1,370 8.7%8,792 3.3%74,393 4.2% $3,000 or more 1,123 7.1%8,086 3.0%80,747 4.6% Median (dollars) Monthly Mortgage Payment as a percent of Household Income Housing units with a mortgage 9,297 163,169 1,114,225 Less than 20.0 percent 4,496 48.4%78,295 48.0%534,480 48.0% 20.0 to 29.9 percent 2,709 29.1%41,217 25.3%282,229 25.3% 30.0 percent or more 2,092 22.5%43,657 26.8%297,516 26.7% Not computed 33 818 6,817 Source: ACS 2021 5-year estimate Owner-Occupied Housing Costs with a Mortgage Oro Valley Pima County Arizona $1,998 $1,417 $1,545 Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 23 www.arizonaeconomy.com are most appropriately housed in public housing units, typically owned by a government entity or non-profit, with rents set at 30% of the household’s income. • There are an additional 1,896 households in the Town earning between $20,000 and $50,000 per year that are overburdened by housing costs. This group could be served by Low Income Housing Tax Credit projects or other government subsidized housing programs targeting 40%-60% AMI households. • The third group of households, representing 1,522 households, earn over $50,000 but are overburdened by housing costs. Most of these households would likely qualify for workforce housing units targeting 60%-120% AMI. Additionally, a portion of these households could be candidates for homeownership assistance programs. Pima Units % Total County Arizona Total Occupied Units 15,736 267,835 1,765,658 Less than $20,000 576 93.5%77.8%75.0% $20,000 to $34,999 393 36.3%49.4%48.0% $35,000 to $49,999 464 32.9%35.6%37.3% $50,000 to $74,999 428 22.3%18.0%22.3% $75,000 or more 702 6.6%3.9%4.7% Total Paying More Than 30% of Income 2,563 56,510 369,594 % Paying More Than 30% of Income 16.3%21.1%20.9% Source: ACS 2021 5-year estimate Pima Units % Total County Arizona Total Occupied Units 5,018 149,648 917,899 Less than $20,000 567 100.0%93.9%93.4% $20,000 to $34,999 637 98.9%80.3%85.1% $35,000 to $49,999 402 70.3%44.9%59.3% $50,000 to $74,999 265 30.2%20.1%28.1% $75,000 or more 127 6.2%3.1%4.6% Total Paying More Than 30% of Income 1,998 71,206 412,670 % Paying More Than 30% of Income 39.8%47.6%45.0% Source: ACS 2021 5-year estimate Percent of Owner-Occupied Households Paying More Than 30% of Income Towards Housing Costs by Income Range Percent of Renter-Occupied Households Paying More Than 30% of Income Towards Housing Costs by Income Range Oro Valley Oro Valley Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 24 www.arizonaeconomy.com Overcrowding is another housing problem (defined by HUD as more than one person per room living in a housing unit). Overcrowding is often a symptom of the lack of affordable housing when persons are forced to acquire housing that is smaller than their needs or where people must double-up in housing to afford the monthly housing cost. Rental units typically have a higher rate of overcrowding than owner-occupied units. In Oro Valley, an estimated 0.7% of all housing units are considered overcrowded (more than one person per room). As illustrated below, the Town has far fewer overcrowded units compared to the statewide average. Overall, overcrowding does not appear to be a significant housing issue. However, the 146 overcrowded units is another indicator of the need for additional affordable housing supply. 2. Business and Workforce Considerations Oro Valley has higher concentrations of employment in its local economy compared to the state that benefits the community including: • Consumer Services (restaurants, dry cleaners, etc.) • Health Care • Hospitality, Tourism, Recreation • High Tech Manufacturing • Retail Units %Units %Units % Total:20,754 417,483 2,683,557 Owner occupied:15,736 75.8%267,835 64.2%1,765,658 65.8% 0.50 or less occupants per room 13,781 87.6%204,018 76.2%1,310,976 74.2% 0.51 to 1.00 occupants per room 1,906 12.1%58,267 21.8%405,655 23.0% 1.01 to 1.50 occupants per room 44 0.3%4,176 1.6%35,713 2.0% 1.51 to 2.00 occupants per room 5 0.0%928 0.3%9,532 0.5% 2.01 or more occupants per room 0 0.0%446 0.2%3,782 0.2% Renter occupied:5,018 24.2%149,648 35.8%917,899 34.2% 0.50 or less occupants per room 3,278 65.3%88,696 59.3%512,698 55.9% 0.51 to 1.00 occupants per room 1,643 32.7%51,708 34.6%335,107 36.5% 1.01 to 1.50 occupants per room 67 1.3%5,378 3.6%44,102 4.8% 1.51 to 2.00 occupants per room 12 0.2%2,940 2.0%19,574 2.1% 2.01 or more occupants per room 18 0.4%926 0.6%6,418 0.7% Source: ACS 2021 5-year estimate Tenure by Occupants in Room Pima County ArizonaOro Valley Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 25 www.arizonaeconomy.com Major employers in the town show that the local economy is heavily weighted toward health care, retail, and tourism/hospitality with some manufacturing employment. Roche Tissue Diagnostics and Oro Valley Hospital are the town’s largest employers. The lack of affordable housing primarily falls upon those in service jobs that have moderate wages. The chart to the right shows Pima County median wages for a variety of occupations, some of which are considered critical service jobs such as firefighters, paramedics, and police officers. The monthly affordable housing cost for each occupation shows that none of the occupations would be able to afford to purchase a home among the local housing stock outlined above as a single income household. Additionally, the average Oro Valley apartment rent of $1,466 is also out of reach for most occupations as a single earner household. The wage data displayed below does not consider that a household may have two wage earners. However, for single person households or families where only one person works, the availability of affordable housing is a critical need. Without such housing, persons or households must find roommates or double up in rental units. There are nearly 5,500 one-person households and 9,600 two-person households. There are 954 households in Oro Valley consisting of single parents with children. The labor force participation rate for Oro Valley in 2021 is well below the state average (48.5% versus 60.6%), reflective of its retirement population. This creates some uncertainty as to where service sector employment comes from to serve the retired population. Although the labor force participation rate is low, it has grown over the past 10 years. The labor force is now 7.1% higher than it was in 2015. However, the population of Oro Valley grew by 11.3% over that same timeframe. Also, when accounting for the seasonal population of some 3,900 additional residents, the labor force participation rate would be even lower and nearing 40%. Monthly Monthly Pima County Affordable Affordable 2022 Median Housing Cost Rent Occupation Wage (30% of Income)(Less Utilities) Hotel, Motel, and Resort Desk Clerks $28,964 $724 $624 Retail Salespersons $29,677 $742 $642 Cooks, Restaurant $33,977 $849 $749 Nursing Assistants $35,430 $886 $786 Waiters and Waitresses $36,081 $902 $802 Construction Laborers $38,404 $960 $860 Firefighters $40,181 $1,005 $905 Pharmacy Technicians $41,828 $1,046 $946 Elementary School Teachers $45,943 $1,149 $1,049 Secondary School Teachers $48,477 $1,212 $1,112 Paramedics $49,673 $1,242 $1,142 Police and Sheriff's Patrol Officers $60,583 $1,515 $1,415 Licensed Practical Nurses $61,547 $1,539 $1,439 Registered Nurses $82,164 $2,054 $1,954 Source: Arizona Office of Economic Opportunity in cooperation with the Bureau of Labor Statistics, May 2023 Housing Affordability by Occupation Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 26 www.arizonaeconomy.com For an economy to operate efficiently, it must have employees to fill service-oriented, retail, and restaurant jobs without forcing those employees to commute long distances to work. The availability of affordable housing for those workers is essential and an important economic development issue. The U.S. Census Bureau produces a model that estimates commuting patterns of residents for counties and cities. The data is somewhat dated from 2020 but provides some indication of where residents live and work. The following table shows the inflow and outflow of all jobs for Oro Valley. For Oro Valley, 87.3% of the Town’s residents in the workforce leave the community each day for work. The Census model shows that many residents work in Tucson, Phoenix, Casas Adobes, Marana, Catalina Foothills, and Tempe. An estimated 82.5% of the people who work in Oro Valley commute into the community each day from other locations. Most come from Tucson, Casas Adobes, Marana, Catalina Foothills, and Phoenix. VI. Relationship to Retail Demand and Town Revenues Town residents have long desired additional retail options. However, over the past decade, brick and mortar retail development has been substantially curtailed, in large part due to the continued growth in e-commerce and the domination of big box superstores cutting into overall market share. Place Count Share Place Count Share All Places (Cities, CDPs, etc.)10,275 100.0%All Places (Cities, CDPs, etc.)14,632 100.0% Tucson city, AZ 2,300 22.4%Tucson city, AZ 5,631 38.5% Oro Valley town, AZ 1,801 17.5%Oro Valley town, AZ 1,801 12.3% Casas Adobes CDP, AZ 1,326 12.9%Phoenix city, AZ 1,242 8.5% Marana town, AZ 762 7.4%Casas Adobes CDP, AZ 949 6.5% Catalina Foothills CDP, AZ 379 3.7%Marana town, AZ 616 4.2% Phoenix city, AZ 314 3.1%Catalina Foothills CDP, AZ 506 3.5% Catalina CDP, AZ 256 2.5%Tempe city, AZ 265 1.8% Flowing Wells CDP, AZ 147 1.4%Flowing Wells CDP, AZ 207 1.4% Mesa city, AZ 145 1.4%Scottsdale city, AZ 195 1.3% Saddlebrooke CDP, AZ 144 1.4%Mesa city, AZ 172 1.2% All Other Locations 2,701 26.3%All Other Locations 3,048 20.8% Source: U.S. Census Bureau’s OnTheMap All Jobs Inflow/Outflow Job Counts 2020 Place of Residence for Oro Valley Workers Place of Employment for Oro Valley Residents Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 27 www.arizonaeconomy.com Brick and mortar retail, though substantially more muted than in decades past, continues. There will continue to be demand for grocery stores, personal services, restaurants, entertainment, and fitness-related establishments for the foreseeable future. However, retail development requires population growth. Additionally, retail development does not precede future residential growth. With only 1,471 single family lots available left in Oro Valley, future retail growth will largely depend on supporting infill development, including higher density residential products. As the following table illustrates, a hypothetical new 250-unit apartment community (22 units per acre) would add $5.1 million of retail spending annually to the area, which would support an additional 11,700 square feet of commercial space. In comparison, on the same parcel size, an estimated 57 single family detached homes could be developed (five units per acre). This would add $1.6 million in retail spending power annually, or the equivalent of supporting just under 3,600 square feet of commercial space. Income & Spending Assumptions Dollars % of Income Dollars % of Income Required Income $74,800 $129,000 Total Retail Spending/HH (Excluding vehicles)$20,317 27.2%$27,297 21.2% Local-Serving Retail Spending $8,915 11.9%$11,324 8.8% Grocery Spending/HH $4,378 5.9%$5,321 4.1% Other Non-Grocery Local-Serving Retail Spending/HH $4,537 6.1%$6,003 4.7% Regional-Serving Retail Spending/HH $8,034 10.7%$11,345 8.8% Restaurant Spending/HH $3,367 4.5%$4,628 3.6% New Households 250 57 Supportable Local-Serving Retail Demand Demand Demand Total Grocery Spending $1,094,510 $303,303 Supportable SF at $500 Per SF in Sales 2,189 607 Other Local-Serving Retail Spending (excluding Groceries)$1,134,231 $342,155 Supportable SF at $300 Per SF in Sales 3,781 1,141 Restaurant Spending $841,780 $263,821 Supportable SF at $500 Per SF in Sales 1,684 528 Regional Serving Retail Spending $2,008,614 $646,667 Supportable SF at $500 Per SF in Sales 4,017 1,293 TOTAL LOCAL-SERVING RETAIL DEMAND 11,671 3,568 Sources: U.S. Consumer Expenditure Survey; AZ DOA; Elliott D. Pollack & Company Apartments Single Family Homes Retail Spending Analysis - New Residential Development Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 28 www.arizonaeconomy.com The Town estimates roughly 265 acres of commercially zoned land remains, which could support 1.7 million square feet of space. This may not be supportable compared to the amount of remaining housing units. A retail gap analysis should be conducted to determine an optimal land use balance for the remaining vacant land. On a per acre basis, the potential for new town revenues from residential development overwhelmingly favors multi-family development. In every scenario modeled, density is the key predictor of new tax revenue generation. As illustrated on the following table, a traditional, three-story garden apartment community on ten acres (220 units), with average household incomes of $74,800 would provide an estimated $518,500 in new Town and school district revenues compared to only $100,000 in tax revenues from a high-end single-family subdivision (three units per acre) with homes priced at $600,000 and average household incomes of nearly $200,000. The 190 additional housing units containing more modest incomes far exceed the spending power of the low-density development. Multi- Family: Four Story Apartment Multi- Family: Garden Apartment Single Family: Build to Rent Single Family: Small Lot Single Family: Move Up Single Family: Luxury Primary Impacts Sales Tax $104,700 $49,300 $30,300 $15,100 $13,700 $8,200 Lease Tax $204,700 $93,800 $59,300 ------ Utility Tax $30,800 $15,000 $8,900 $5,400 $4,300 $2,500 State Shared Revenue $314,700 $153,800 $90,900 $38,300 $25,500 $12,800 Secondary Impacts (employees) Spending Sales Tax $6,900 $3,300 $2,000 $1,600 $1,000 $500 State Shared Revenue $700 $300 $200 $100 $100 $0 Other Districts School District $484,500 $203,000 $120,000 $62,300 $55,400 $34,600 Total Tax Revenues $1,147,000 $518,500 $311,600 $122,800 $100,000 $58,600 Source: Elliott D. Pollack & Co.; IMPLAN; AZ Dept. of Revenue; AZ Tax Research Association Annual Fiscal Impact on Municipalities Land Use Comparisons on a 10-acre Site Town of Oro Valley (2023 Dollars) Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 29 www.arizonaeconomy.com VII. Conclusions and Recommendations In conclusion, the Town of Oro Valley has opportunities to provide the types of residential development that ensures support of current and future residents specifically necessary first responders, teachers, and trade professionals. The need for affordable housing is very apparent as average home prices and rents are too high for most working families. It is recommended that this report and associated options be further discussed with the community through the upcoming General Plan process to develop the Town’s goals, policies, and vision for future housing in Oro Valley. The Town of Oro Valley has opportunities to provide the types of residential development that ensures support of current and future residents specifically necessary first responders, teachers, and trade professionals. The need for affordable housing is very apparent as average home prices and rents are too high for most working families. Options to address this gap include: • Allow higher-density rental products, such as single-family rentals, townhomes, duplexes or 2-3 story apartments in strategic areas along major roadways or near service areas to provide a variety of housing types and increase density to support retail. This may include land currently zoned for commercial development. • Conduct a retail gap analysis to determine future commercial development potential. If warranted from that analysis, consider approving additional residential development on commercial parcels to create more demand for retail, create a well-balanced community, and maximize both commercial opportunities and town revenue. • Allow secondary dwelling units on existing lots. • Allow manufactured homes or similar affordable housing types in more areas. Although prices increased, manufactured homes are the most affordable ownership option in Oro Valley yet limited to one area. • Seek grant funding opportunities to support housing and supporting infrastructure (such as transportation) options. • Support carefully targeted subsidized housing programs targeting workforce level wage households (40%-100% AMI) for multi-family housing to support police, fire, teachers, nurses, and other critical service providers in Oro Valley that are currently overburdened by housing costs. Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 30 www.arizonaeconomy.com Glossary Active subdivision – A subdivision that has pulled at least one permit or had at least one closing in the past 12 months. Affordable Housing - Determined by using the standard that no more than 30% of a household’s income is devoted to housing costs. Attainable Housing – Associated with the housing demand from critical service providers or essential personnel such as police, firefighters, nurses, teachers, and others. Cost-burdened - The number of cost-burdened owners and renter households that are paying more than 30% of their income on housing. Housing Affordability Gap - The shortage of units that are needed to provide affordable housing for all segments of the population. Family –A group of two people or more (one of whom is the householder) related by birth, marriage, or adoption and residing together. Multi-family - A building, or portion thereof, designed for occupancy by three (3) or more families. Overcrowding – Defined by HUD as more than one person per room living in a housing unit. Overcrowding is a symptom of the lack of affordable housing when persons are forced to acquire housing that is smaller than their needs or where people must double-up in housing to make ends meet. Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 31 www.arizonaeconomy.com Appendix A: Additional Population and Household Data Oro Valley Pima County Arizona 2000 84.2%64.3%68.0% 2010 77.4%64.1%66.0% 2020 76.5%63.6%65.3% Source: Decennial Census Homeownership Estimate %Estimate %Estimate % Total:20,791 427,021 2,705,878 Owner occupied:15,898 76.5%271,770 63.6%1,767,285 65.3% 1-person household 3,434 21.6%68,199 25.1%395,639 22.4% 2-person household 7,993 50.3%109,334 40.2%685,501 38.8% 3-person household 1,788 11.2%37,265 13.7%249,834 14.1% 4-person household 1,653 10.4%31,052 11.4%220,156 12.5% 5-person household 637 4.0%15,183 5.6%117,036 6.6% 6-person household 267 1.7%6,661 2.5%57,332 3.2% 7-or-more-person household 126 0.8%4,076 1.5%41,787 2.4% Renter occupied:4,893 23.5%155,251 36.4%938,593 34.7% 1-person household 2,060 42.1%64,821 41.8%323,916 34.5% 2-person household 1,591 32.5%42,620 27.5%260,801 27.8% 3-person household 520 10.6%20,245 13.0%136,105 14.5% 4-person household 413 8.4%14,601 9.4%105,343 11.2% 5-person household 180 3.7%7,490 4.8%59,786 6.4% 6-person household 78 1.6%3,269 2.1%29,891 3.2% 7-or-more-person household 51 1.0%2,205 1.4%22,751 2.4% Source: 2020 Decennial Census Oro Valley Pima County Arizona Tenure by Household Size Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 32 www.arizonaeconomy.com Estimate %Estimate %Estimate % Total:20,791 427,021 2,705,878 Owner occupied:15,898 76.5%271,770 63.6%1,767,285 65.3% Householder 15 to 24 years 72 0.5%2,801 1.0%19,432 1.1% Householder 25 to 34 years 600 3.8%22,151 8.3%155,893 8.8% Householder 35 to 44 years 1,494 9.5%35,447 13.2%254,111 14.4% Householder 45 to 54 years 2,072 13.2%40,675 15.2%299,631 17.0% Householder 55 to 59 years 1,448 9.2%26,821 10.0%182,250 10.3% Householder 60 to 64 years 1,847 11.7%31,625 11.8%197,088 11.2% Householder 65 to 74 years 4,621 29.4%65,320 24.4%386,166 21.9% Householder 75 to 84 years 2,858 18.2%36,013 13.4%212,948 12.1% Householder 85 years and over 886 5.6%10,917 4.1%59,766 3.4% Renter occupied:4,893 23.5%155,251 36.4%938,593 34.7% Householder 15 to 24 years 291 5.8%17,472 11.7%94,245 10.3% Householder 25 to 34 years 907 18.1%37,048 24.8%232,988 25.4% Householder 35 to 44 years 733 14.6%26,485 17.7%180,566 19.7% Householder 45 to 54 years 732 14.6%21,831 14.6%147,423 16.1% Householder 55 to 59 years 386 7.7%11,408 7.6%68,466 7.5% Householder 60 to 64 years 346 6.9%11,044 7.4%61,251 6.7% Householder 65 to 74 years 641 12.8%17,379 11.6%88,882 9.7% Householder 75 to 84 years 478 9.5%8,312 5.6%43,477 4.7% Householder 85 years and over 379 7.6%4,272 2.9%21,295 2.3% Source: 2020 Decennial Census Oro Valley Pima County Arizona Tenure by Age of Householder Estimate %Estimate %Estimate % Total:20,791 427,021 2,705,878 Owner occupied:15,898 76.5%271,770 63.6%1,767,285 65.3% With children under 18 years 3,184 20.0%67,707 24.9%499,186 28.2% No children under 18 years 12,714 80.0%204,063 75.1%1,268,099 71.8% Renter occupied:4,893 23.5%155,251 36.4%938,593 34.7% With children under 18 years 1,209 24.7%40,989 26.4%301,861 32.2% No children under 18 years 3,684 75.3%114,262 73.6%636,732 67.8% Source: 2020 Decennial Census Tenure by Presence of People Under 18 Years Oro Valley Pima County Arizona Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 33 www.arizonaeconomy.com Estimate %Estimate %Estimate % Total:47,070 1,043,433 7,151,502 White alone 37,448 79.6%633,382 60.7%4,322,337 60.4% Black or African American alone 776 1.6%39,954 3.8%339,150 4.7% American Indian and Alaska Native alone 228 0.5%34,593 3.3%319,512 4.5% Asian alone 2,043 4.3%31,367 3.0%257,430 3.6% Native Hawaiian and Other Pacific Islander alone 57 0.1%2,229 0.2%16,397 0.2% Some other race alone 1,456 3.1%127,663 12.2%899,870 12.6% Two or more races:5,062 10.8%174,245 16.7%996,806 13.9% Source: 2020 Decennial Census Oro Valley Pima County Arizona Population by Race Estimate %Estimate %Estimate % Total:14,309 260,337 1,771,949 Married couple family:12,249 85.6%182,080 69.9%1,257,542 71.0% With own children under 18 years:2,980 24.3%57,676 31.7%445,648 35.4% Under 6 years only 514 17.2%11,902 20.6%86,372 19.4% Under 6 years and 6 to 17 years 534 17.9%12,596 21.8%103,720 23.3% 6 to 17 years only 1,932 64.8%33,178 57.5%255,556 57.3% No own children under 18 years 9,269 75.7%124,404 68.3%811,894 64.6% Other family:2,060 14.4%78,257 30.1%514,407 29.0% Male householder, no spouse present:631 30.6%25,199 32.2%171,254 33.3% With own children under 18 years:302 47.9%11,552 45.8%81,575 47.6% Under 6 years only 33 10.9%2,485 21.5%17,873 21.9% Under 6 years and 6 to 17 years 32 10.6%2,007 17.4%14,790 18.1% 6 to 17 years only 237 78.5%7,060 61.1%48,912 60.0% No own children under 18 years 329 52.1%13,647 54.2%89,679 52.4% Female householder, no spouse present:1,429 69.4%53,058 67.8%343,153 66.7% With own children under 18 years:652 45.6%24,776 46.7%166,088 48.4% Under 6 years only 87 13.3%4,085 16.5%26,988 16.2% Under 6 years and 6 to 17 years 63 9.7%4,531 18.3%32,723 19.7% 6 to 17 years only 502 77.0%16,160 65.2%106,377 64.0% No own children under 18 years 777 54.4%28,282 53.3%177,065 51.6% Source: 2020 Decennial Census Oro Valley Pima County Arizona Families by Type with Children Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 34 www.arizonaeconomy.com Estimate %Estimate %Estimate % Total:20,791 427,021 2,705,878 Renter occupied:4,893 23.5%155,251 36.4%938,593 34.7% Family households:2,418 49.4%71,459 46.0%496,754 52.9% Married couple:1,540 63.7%34,736 48.6%252,425 50.8% Householder 15 to 34 years 329 21.4%10,723 30.9%76,378 30.3% Householder 35 to 64 years 774 50.3%18,314 52.7%142,120 56.3% Householder 65 years and over 437 28.4%5,699 16.4%33,927 13.4% Other family:878 36.3%36,723 51.4%244,329 49.2% Male householder, no spouse present:249 28.4%11,118 30.3%76,603 31.4% Householder 15 to 34 years 66 26.5%4,113 37.0%28,811 37.6% Householder 35 to 64 years 158 63.5%5,913 53.2%41,764 54.5% Householder 65 years and over 25 10.0%1,092 9.8%6,028 7.9% Female householder, no spouse present:629 71.6%25,605 69.7%167,726 68.6% Householder 15 to 34 years 145 23.1%8,151 31.8%54,496 32.5% Householder 35 to 64 years 412 65.5%14,831 57.9%98,465 58.7% Householder 65 years and over 72 11.4%2,623 10.2%14,765 8.8% Nonfamily households:2,475 50.6%83,792 54.0%441,839 47.1% Male householder:1,089 44.0%44,105 52.6%231,330 52.4% Living alone:873 80.2%33,959 77.0%166,605 72.0% Householder 15 to 34 years 226 25.9%11,093 32.7%52,317 31.4% Householder 35 to 64 years 371 42.5%15,047 44.3%79,262 47.6% Householder 65 years and over 276 31.6%7,819 23.0%35,026 21.0% Not living alone:216 19.8%10,146 23.0%64,725 28.0% Householder 15 to 34 years 116 53.7%6,392 63.0%40,370 62.4% Householder 35 to 64 years 67 31.0%2,990 29.5%19,981 30.9% Householder 65 years and over 33 15.3%764 7.5%4,374 6.8% Female householder:1,386 56.0%39,687 47.4%210,509 47.6% Living alone:1,187 85.6%30,862 77.8%157,311 74.7% Householder 15 to 34 years 202 17.0%8,118 26.3%39,614 25.2% Householder 35 to 64 years 353 29.7%11,370 36.8%61,621 39.2% Householder 65 years and over 632 53.2%11,374 36.9%56,076 35.6% Not living alone:199 14.4%8,825 22.2%53,198 25.3% Householder 15 to 34 years 114 57.3%5,930 67.2%35,247 66.3% Householder 35 to 64 years 62 31.2%2,303 26.1%14,493 27.2% Householder 65 years and over 23 11.6%592 6.7%3,458 6.5% Source: 2020 Decennial Census Oro Valley Pima County Arizona Tenure by Household Type Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 35 www.arizonaeconomy.com Estimate %Estimate %Estimate % Total:6,482 166,684 933,929 Male householder:2,486 38.4%80,875 48.5%455,952 48.8% Living alone:2,002 80.5%62,868 77.7%338,098 74.2% Householder 15 to 64 years 1,035 51.7%41,333 65.7%225,643 66.7% Householder 65 years and over 967 48.3%21,535 34.3%112,455 33.3% Not living alone:484 19.5%18,007 22.3%117,854 25.8% Householder 15 to 64 years 318 65.7%14,830 82.4%98,694 83.7% Householder 65 years and over 166 34.3%3,177 17.6%19,160 16.3% Female householder:3,996 61.6%85,809 51.5%477,977 51.2% Living alone:3,492 87.4%70,152 81.8%381,457 79.8% Householder 15 to 64 years 1,119 32.0%33,291 47.5%185,717 48.7% Householder 65 years and over 2,373 68.0%36,861 52.5%195,740 51.3% Not living alone:504 12.6%15,657 18.2%96,520 20.2% Householder 15 to 64 years 337 66.9%12,556 80.2%78,596 81.4% Householder 65 years and over 167 33.1%3,101 19.8%17,924 18.6% Source: 2020 Decennial Census Non-Family Household by Sex & Age Oro Valley Pima County Arizona Estimate %Estimate %Estimate % Total:16,593 228,063 1,339,172 In households:16,165 97.4%221,884 97.3%1,307,811 97.7% Householder:9,894 61.2%142,290 64.1%812,845 62.2% Living alone:3,368 34.0%58,473 41.1%308,249 37.9% Male 987 29.3%21,595 36.9%112,518 36.5% Female 2,381 70.7%36,878 63.1%195,731 63.5% Not living alone:6,526 66.0%83,817 58.9%504,596 62.1% Male 4,412 67.6%52,927 63.1%321,261 63.7% Female 2,114 32.4%30,890 36.9%183,335 36.3% Spouse or partner 5,646 34.9%62,313 28.1%376,084 28.8% Parent or parent-in-law 401 2.5%10,359 4.7%73,942 5.7% Other relatives 57 0.4%1,496 0.7%10,568 0.8% Other nonrelatives 79 0.5%3,166 1.4%20,362 1.6% In group quarters:428 2.6%6,179 2.7%31,361 2.3% Institutionalized population 425 99.3%4,599 74.4%20,204 64.4% Noninstitutionalized population 3 0.7%1,580 25.6%11,157 35.6% Household Type by Relationship (Over 65 Years) Oro Valley Pima County Arizona Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 36 www.arizonaeconomy.com Estimate %Estimate %Estimate % Total:463 27,500 160,269 Institutionalized population:453 97.8%14,257 51.8%89,904 56.1% Correctional facilities for adults 0 0.0%8,945 62.7%64,154 71.4% Juvenile facilities 17 3.8%274 1.9%2,331 2.6% Nursing facilities/Skilled-nursing facilities 407 89.8%4,890 34.3%21,938 24.4% Other institutional facilities 29 6.4%148 1.0%1,481 1.6% Noninstitutionalized population:10 2.2%13,243 48.2%70,365 43.9% College/University student housing 0 0.0%9,062 68.4%38,945 55.3% Military quarters 0 0.0%716 5.4%4,284 6.1% Other noninstitutional facilities 10 100.0%3,465 26.2%27,136 38.6% Source: 2020 Decennial Census Group Quarters Population Oro Valley Pima County Arizona Estimate %Estimate %Estimate % Total:20,791 427,021 2,705,878 Family households:14,309 68.8%260,337 61.0%1,771,949 65.5% Married couple family 12,249 85.6%182,080 69.9%1,257,542 71.0% Other family:2,060 14.4%78,257 30.1%514,407 29.0% Male householder, no spouse present 631 30.6%25,199 32.2%171,254 33.3% Female householder, no spouse present 1,429 69.4%53,058 67.8%343,153 66.7% Nonfamily households:6,482 31.2%166,684 39.0%933,929 34.5% Householder living alone 5,494 84.8%133,020 79.8%719,555 77.0% Householder not living alone 988 15.2%33,664 20.2%214,374 23.0% Source: 2020 Decennial Census Household Type Oro Valley Pima County Arizona Estimate %Estimate %Estimate % Total:20,791 427,021 2,705,878 Household has three or more generations 419 2.0%18,789 4.4%140,127 5.2% Household does not have three or more generations 20,372 98.0%408,232 95.6%2,565,751 94.8% Source: 2020 Decennial Census Multigenerations Households Oro Valley Pima County Arizona Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 37 www.arizonaeconomy.com Appendix B: Additional Economic Statistics Given its size and location, Oro Valley has a relatively robust economy that is built on health care, consumer services, retail, and high-tech manufacturing. The strengths and weaknesses of a local economy can be illustrated by a very simple metric known as the “Location Quotient ” or LQ. LQ compares the percentage of jobs in each industry in a community to a larger economy, such as the state. An LQ over 1.0 indicates that a particular industry has a greater presence in the local economy compared to the state – hence a strength of the local area. An LQ less than 1.0 shows the potential weaknesses of an economy. ] Industry Cluster Employees % Total Employees % Total Employees % Total Oro Valley Pima County Business Services 620 5.0%31,040 8.8%294,830 11.1%0.45 0.79 Construction 240 1.9%19,920 5.6%178,360 6.7%0.29 0.84 Consumer Goods Manufacturing 0 0.0%2,220 0.6%32,900 1.2%- 0.51 Consumer Services 1,680 13.5%34,840 9.8%291,190 10.9%1.23 0.90 Education 890 7.1%39,960 11.3%223,110 8.4%0.85 1.35 Finance, Insurance, & Real Estate (FIRE)810 6.5%15,450 4.4%193,960 7.3%0.89 0.60 Govt, Social, & Advocacy Services 900 7.2%48,720 13.7%272,120 10.2%0.71 1.34 Health Care 2,190 17.6%52,380 14.8%326,370 12.3%1.43 1.21 High Tech Manufacturing 1,950 15.7%22,140 6.2%107,010 4.0%3.90 1.55 Hospitality, Tourism & Recreation 590 4.7%12,780 3.6%112,300 4.2%1.12 0.85 Media, Publishing & Entertainment 100 0.8%2,950 0.8%22,090 0.8%0.97 1.00 Metal Inputs/Transportation-Related Mfg 0 0.0%2,830 0.8%28,590 1.1%- 0.74 Non-Metallic Manufacturing 20 0.2%2,170 0.6%27,990 1.1%0.15 0.58 Resource-Dependent Activities 30 0.2%4,950 1.4%45,430 1.7%0.14 0.82 Retail 2,330 18.7%41,410 11.7%313,450 11.8%1.59 0.99 Telecommunications 20 0.2%1,930 0.5%27,260 1.0%0.16 0.53 Transportation & Distribution 80 0.6%18,680 5.3%164,350 6.2%0.10 0.85 Note: Included businesses with 5 or more employees Source: MAG Location Quotient Oro Valley Pima County Arizona Location Quotient Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 38 www.arizonaeconomy.com Employer Employees Industry Cluster Ventana Medical Systems 1,840 High Tech Manufacturing & Development Oro Valley Hospital LLC 660 Health Care Walmart 450 Retail Amphitheater Unified School District 390 Education Town of Oro Valley 250 Government, Social, & Advocacy Services Frys Food Stores 240 Retail Home Depot 180 Retail Securaplane Technologies Inc 180 Business Services Target 180 Retail Casa De La Luz Foundation 170 Health Care El Conquistador Golf and Tennis Resort 130 Hospitality, Tourism, & Recreation Kohls Department Stores 110 Retail Best Buy 100 Retail Source: MAG, 2017 - 2021 Arizona COG/MPO Employer Database, employers with 5 or more employees. Oro Valley - Major Employers Estimate %Estimate %Estimate % Population 16 years and over 39,259 843,701 5,650,624 In labor force 19,024 48.5%495,538 58.7%3,424,193 60.6% Employed 18,263 96.0%457,733 92.4%3,210,791 93.8% Unemployed 677 3.6%30,620 6.2%191,115 5.6% Armed Forces 84 0.2%7,185 0.9%22,287 0.4% Not in labor force 20,235 51.5%348,163 41.3%2,226,431 39.4% Labor Force Participation 48.5%58.7%60.6% Source: ACS 2021 5-year estimate Labor Force Participation Oro Valley Pima County Arizona Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 39 www.arizonaeconomy.com Town of Oro Valley Housing Assessment Elliott D. Pollack & Company 40 www.arizonaeconomy.com www.westgroupresearch.com Attachment 2: Town of Oro Valley Housing Survey Report May/June 2023 Prepared by: 2023 Town of Oro Valley Housing Survey Report Page 2 Table of Contents Executive Summary ............................................................................................................................4 Key Findings ............................................................................................................................................... 4 Current Housing Types and Occupancy ................................................................................................ 4 Housing Costs and Attainability ............................................................................................................ 5 Housing Needs ...................................................................................................................................... 6 Background and Methodology ...........................................................................................................7 Resident Phone Survey.......................................................................................................................9 I. Explanation of Margin of Error and Significance Testing .................................................................... 9 II. Respondent Demographics and Characteristics ............................................................................... 10 III. Current Housing Types and Occupancy ............................................................................................. 12 A. Housing Type ............................................................................................................................... 12 B. Occupancy ................................................................................................................................... 15 IV. Housing Costs and Attainability ........................................................................................................ 16 A. Housing Costs .............................................................................................................................. 16 B. Barriers to Home Ownership ...................................................................................................... 18 V. Housing Needs .................................................................................................................................... 20 A. Perceptions of Housing in Oro Valley ......................................................................................... 20 B. Perceived Housing Challenges in Oro Valley ............................................................................... 22 C. Types of Housing Needed in Oro Valley ...................................................................................... 24 VI. Other Opinions Regarding Housing in Oro Valley ............................................................................. 28 Resident Online Survey .................................................................................................................... 29 I. Explanation of Margin of Error .......................................................................................................... 29 II. Respondent Demographics and Characteristics ................................................................................ 30 III. Current Housing Type and Occupancy ............................................................................................... 32 A. Housing Type ............................................................................................................................... 32 B. Occupancy ................................................................................................................................... 35 IV. Housing Costs and Attainability ........................................................................................................ 36 A. Housing Costs .............................................................................................................................. 36 B. Barriers to Homeownership ........................................................................................................ 39 VII. Housing Needs .................................................................................................................................. 40 A. Perceptions of Housing in Oro Valley ......................................................................................... 40 B. Perceived Housing Challenges in Oro Valley ............................................................................... 42 C. Types of Housing Needed in Oro Valley ...................................................................................... 44 VI. Other Opinions Regarding Housing in Oro Valley.............................................................................. 48 2023 Town of Oro Valley Housing Survey Report Page 3 Business Owners and Non-resident Workforce Survey ...................................................................... 49 I. Explanation of Margin of Error .......................................................................................................... 49 II. Respondent Demographics and Characteristics ............................................................................... 50 III. Current Housing Types and Occupancy ............................................................................................. 52 A. Housing Types ............................................................................................................................. 52 B. Occupancy ................................................................................................................................... 53 IV. Housing Costs and Attainability ........................................................................................................ 56 A. Housing Costs .............................................................................................................................. 56 B. Barriers to Homeownership ........................................................................................................ 57 V. Housing Needs .................................................................................................................................... 58 A. Perceptions of Housing in Oro Valley ............................................................................................ 58 B. Perceived Housing Challenges in Oro Valley ............................................................................... 60 C. Types of Housing Needed in Oro Valley ...................................................................................... 65 VI. Other Housing Opinions Regarding Housing in Oro Valley ............................................................... 70 Appendix A: Open-ended Responses ................................................................................................ 71 Table A1: Resident Open-ended responses ........................................................................................ 71 Table A2: Business Owner and Workforce Open-ended responses .................................................. 72 Appendix B: Questionnaires ............................................................................................................. 73 Oro Valley Housing Survey for Residents (Phone and Online) ........................................................... 73 Oro Valley Housing Online Survey for Business Owners and Workforce ........................................... 80 2023 Town of Oro Valley Housing Survey Report Page 4 Executive Summary The Town of Oro Valley commissioned WestGroup Research of Phoenix, Arizona to conduct its 2023 Housing Survey to collect feedback from residents, business owners and non -residents who work in the town regarding their personal housing situations and percept ions of housing availability and needs in Oro Valley. These perceptions are paired with the facts from the housing assessment to create recommendations about future housing in Oro Valley. Three surveys were conducted between May 10 through May 31, 2023: 1. Resident Phone Survey - A statistically valid phone survey targeting Oro Vally residents was conducted by WestGroup Research. The phone survey yielded 401 results. Participants were screened by zip code, income, age, and gender to get a representative sample size. This is the most reliable method of surveying. 2. Resident Online Survey - To ensure everyone has an opportunity to participate, the same survey was offered to residents online. The online survey yielded 1211 responses and is supplemental to the phone survey due to the high number of variabilities invalidating the data (e.g., people taking the online survey more than once). 3. Business and Workforce Survey - A separate survey was administered online to business owners and non-resident employees to understand their perspective about housing in Oro Valley. This survey yielded 136 responses and is also not statistically valid. but provides insight to guide discussions. Key Findings Current Housing Types and Occupancy Respondents from all three surveys were most likely to live in single-family homes. Resident Surveys Business Owner and Workforce Survey Most Oro Valley residents reported to own their current residence (87% phone and 96% online) and reported living in a single-family home in Oro Valley (87% phone and 88% online). Whereas one-half of business owners who responded to the survey believed most of their employees own their homes (49%), two-thirds of employees surveyed said they currently own their home (67%). Three-quarters of employees (74%) reported living in a single-family home and similarly 69% of business owners responded that most of their employees live in a single-family home in or outside of Oro Valley. 2023 Town of Oro Valley Housing Survey Report Page 5 Housing Costs and Attainability Housing costs are a concern for residents and business owners trying to recruit/retain employees. Resident Surveys Over half (60% phone; 52% online) of respondents found housing costs to be personally concerning. Phone respondents were more likely than those who took the survey online to indicate housing costs to be “very concerning.” One of the top reasons why some residents currently live with friends or extended family is to make rent more affordable (40% phone; 29% online). Overall, residents are not likely to leave Oro Valley due to housing costs (88% phone and 89% online). Yet, online respondents with kids were three times more likely to move away from Oro Valley due to housing costs (12%) than those without kids. The top barriers to homeownership were related to cost and affordability with average home price ranked highest (54% phone; 36% online). Business Owner and Workforce Survey One-half of the business owners (49%) and employees (48%) who responded to the survey do not feel housing in Oro Valley is affordable and selected the response that stated the average mortgage and rent is too high. Four in ten business owners felt affordable housing options (43%), adequately sized housing options (41%), or lack of housing stock and/or commute time (both 39%) have an impact on employee recruitment and retention. When asked to select the barriers to homeownership for employees, business owners and employees most often selected average home price (53% business owners; 56% employees), paying too much rent to save (39% business owners; 38% employees), and not having enough money for a down- payment (25% business owners; 26% employees). 2023 Town of Oro Valley Housing Survey Report Page 6 Housing Needs A noticeable difference between all three surveys is agreement to the statement, “Oro Valley has a balanced housing mix that includes a wide range of types and prices.” The percent in agreement from each group was: • 60% of residents who took the survey online; 37% of phone respondents • 36% of business owners and 17% of employees Residents, business owners and employees believed single-family homes were most needed in Oro Valley along with townhomes and secondary dwelling units . Detached or attached 1-2 story homes and low-rise (2-3 story) apartments were the most acceptable rental type. Taller apartments (4-5 stories) were ranked lowest. Resident Surveys Business Owner and Workforce Survey Almost half of resident respondents agreed there is a lack of financially attainable housing for teachers, police, first responders, retail/service employees or entry-level workers (47% phone; 38% online). Residents were most likely to rank single-family homes (63% phone; 58% online), townhomes (40% phone; 49% online), and secondary dwelling units (39% phone; 37% online) as a high need for Oro Valley. Almost half of the phone respondents and slightly more than half of the online respondents agreed, apartments detract from the character of Oro Valley (41% phone; 58% online). Detached (49% phone; 66% online) and attached (46% phone; 66% online) 1-2 story rental homes are seen as the most acceptable rental options in Oro Valley. Low rise apartments, 2-3 stories (35% phone and online) were also acceptable. In both surveys, 4-5 story apartments were the least acceptable (14% phone; 10% online). Residents agreed that high density housing should be in areas with easy access to shops, services, and facilities (60% phone; 54% online) and can blend in with the character of the surrounding areas (54% phone; 38% online). Non-resident employees were most likely to indicate a lack of affordable housing (71%) and/or lack of available housing stock (55%) as impacting their decision to not reside in Oro Valley. Business owners were most likely to rank single-family homes, condominiums, and apartments as a “high need” for Oro Valley (49%, 45% and 40%, respectively). Employees most often rated townhomes/duplexes and single-family homes as highly needed in Oro Valley (38% and 37%, respectively). Nearly half of business owners (49%) and employees (48%) strongly agree or agree they or their business would benefit from high-density options. Of five factors ranked, housing density/ population to support business within a 5-mile radius was most often rated as “important” to business owners in their decision to locate their business in Oro Valley (57% rated “very” or “somewhat” important). 2023 Town of Oro Valley Housing Survey Report Page 7 Background and Methodology Three different surveys were conducted between May 10 and May 31, 2023, to achieve a statistically valid response and provide ample opportunities for anyone interested to participate. A telephone and two online surveys were promoted through the following avenues: • Ad and article in the NW Explorer • Press release • Social media posts • Vista Newsletter • Rancho Vistoso Newsletter • OV Edge Newsletter • Play OV Newsletter • OV Chamber of Commerce Newsletter • Direct emails • Promotion at Town Council • Flyers in Town lobbies and businesses in the area Statistically valid resident phone survey A phone survey targeting residents was conducted via outbound telephone interviews completed by the WestGroup interviewing team. WGR interviewers made outbound telephone contact with sampled households using listed landlines and cell phone samples purchased from a national sampling company. It is important to note data from the phone survey was collected from residents in selected households via a sample of listed cellphone or landline phone numbers within the Oro Valley zip code areas. While all data collection methods are “opt in” (meaning the respondent can choose whether to answer the phone or participate online), using an outbound telephone approach to reach randomly selected household provides the best opportunity for a broader range of opinions to be included in the survey responses vs. relying on the resident to see advertisements and go online. The demographic distribution of telephone respondents was carefully monitored to make sure the profile of respondents completing the survey reflected the overall demographic profile of Oro Valley residents (gender, age, and ethnicity). Post-survey weighting for age and ethnicity was applied to the final telephone data set to finalize the representative profile of respondents. Ultimately, 401 surveys were completed in total. The average interview length was 15.5 minutes. The data were weighted to accurately represent the general population. The total weighted sample size of n=401 has a margin of error of ±4.9% at the 95% confidence level. 2023 Town of Oro Valley Housing Survey Report Page 8 All residents were screened to ensure they resided in one of the five Oro Valley zip codes (85737, 85755, 85704, 85742, or 85739). Resident online survey (1,211 completed surveys) Web data should be considered supplemental in nature to the phone survey results. Although participants must opt-in to both surveys, self-selection bias is higher with the web survey. This means we can assume that individuals that took time to respond to the web survey are more likely to be highly engaged community members. The web survey does not account for respondents who took it multiple times and skewed the results. Like the phone survey, all participants were screened to ensure they resided in one of the five Oro Valley zip codes. Business and workforce online survey (136 completed surveys) All respondents were screened to ensure they were a business owner or employee of a company in Oro Valley. Again, noted above, only non -resident employees were invited to complete this survey; employed residents of Oro Valley were encouraged to take the corresponding Oro Valley resident survey. Ultimately, 136 surveys were completed in total, 51 business owners and 85 non -resident employees. These results should be seen as supplemental to the resident survey conducted via phone. While insightful, this data may not be representative of the population of Oro Valley business owners or non-residents who work in Oro Valley as no methods were used to monitor responses to ensure accurate representation across non -resident employees or business owners in Oro Valley. 2023 Town of Oro Valley Housing Survey Report Page 9 Resident Phone Survey I. Explanation of Margin of Error and Significance Testing There is a certain amount of sampling "error" that occurs with survey research because of the variability that is present whenever a portion of a population is examined to provide insight into the attitudes, opinions, and behaviors of the total population. This "error" does not imply a mistake has been made but reflects the likelihood that the estimates derived from interviewing a sample of the population differ from the numbers that would be obtained if the entire population was interviewed using identical questions. Based on a sample size of 400, the sampling error (at the conventional 95% confidence level) is ±5.0%. This means that in 19 out of 20 cases, the "actual" percentage will fall within ±5.0% if every qualified member of the population was interviewed. This year the Citizen Survey has a Total sample size of 401, and the margin of error (or sampling error) is ±4.9%. If results of a particular sub-group differ from results of another sub-group by more than this percentage, the difference is said to be "statistically significant." Throughout this report, each sub-group in a table or chart may be identified with a superscript letter (ABC). A letter after a number indicates that the number is statistically higher than the number in the column with that letter. For example, in the table below, the 55% and 44% in the fourth and fifth rows of column A is significantly higher than the figures in column B, C, and D at the 95% confidence level. Housing Challenges in Oro Valley Top-Two Ratings (Strongly agree/Agree) Housing Challenges Total n=401 <$60K n=61 (A) $60K- $100K n=88 (B) $100K- $150K n=64 (C) $150K+ n=121 (D) There is a lack of financially attainable housing for teachers, police, first responders, retail or service employees, or entry level professionals. 45% 50% 47% 50% 46% There is a lack of financially attainable housing for seniors, veterans, or persons with disabilities. 40% 51% 37% 40% 43% There is a lack of adequately sized housing options for multi-generational living. 33% 44%B 24% 34% 39%B Children who grow up here cannot afford to live in Oro Valley as adults. 32% 55%BCD 30% 32% 27% There is a lack of adequately sized housing options for those who are interested in down- sizing 25% 44%BCD 22% 20% 19% 2023 Town of Oro Valley Housing Survey Report Page 10 II. Respondent Demographics and Characteristics The Oro Valley study sample was fairly evenly split between males and females. More than half of the residents reported to be over 50 years of age and half have an annual household income higher than $80,000. One in three have a child under the age of 18 in their household. Four in ten reported to be full-time employed while the same number were retired. Eight in ten reported their race as Caucasian or White and 18% reported to have a Latino/Hispanic origin. Table 1a: Demographics Characteristic Total n=401* Characteristic Total n=401* Gender Type of Income Male 47% Fixed income household 17% Female 52% Single income household 37% Prefer not to answer 1% Dual income household 42% Age Employment Status 18 to 34 years 15% Full-time employed 40% 35 to 49 years 19% Retired 38% 50 to 64 years 25% Business owner/self-employed 8% 65+ years 41% Part-time employed 5% Prefer not to answer 1% Student 2% Not employed at this time 4% Annual household income Race Less than $20,000 2% Caucasian/White 79% $20,000 to $39,999 5% Latino/Hispanic 4% $40,000 to $59,999 9% African American/Black 2% $60,000 to $79,999 9% Asian 2% $80,000 to $99,999 13% Native Hawaiian/Pacific Islander 1% $100,000 to $149,999 16% American Indian/Alaska Native <1% $150,000 or more 30% Two or more races 6% Prefer not to answer 17% Prefer not to answer 6% Have children under 18 in HH 31% Hispanic/Latino 18% *Weighted data 2023 Town of Oro Valley Housing Survey Report Page 11 As expected, the vast majority of residents surveyed live in Oro Valley full-time (96%). Nearly one-half of residents have lived in Oro Valley for more than 10 years and the largest proportion reported they only had two people in their household. The zip code most represented was 85737 (40%). Lastly, two-thirds of the sample had achieved a bachelor’s degree or higher. Table 1b: Demographics Characteristic Total n=401* Characteristic Total n=401* Education Level # People in Household 9th to 12th grade, no diploma <1% 1 19% High school diploma or GED 6% 2 43% Associate degree 8% 3 18% Some college/Tech training 16% 4-5 17% Bachelor’s degree 37% 6+ 1% Master’s degree or higher 31% Prefer not to answer 3% Length of Time in Oro Valley Zip Code (See map below) Less than 1 year 3% 85737 40% 1-2 years 13% 85755 24% 3-5 years 24% 85704 18% 6-10 years 16% 85742 15% More than 10 years 44% 85739 3% Full or Part Time Resident Live in Oro Valley Full Time 96% Live in Oro Valley Part Time 4% *Weighted data 2023 Town of Oro Valley Housing Survey Report Page 12 III. Current Housing Types and Occupancy A. Housing Type Survey Question Responses Q13. Which best describes your current housing type in Oro Valley? 401 Nearly nine in ten residents (87%) reported living in a single-family home in Oro Valley. One- tenth reported living in either an apartment or townhome (each 5%). • Residents living in 85704 were more likely to report living in an apartment or townhome than residents of the other Oro Valley zip codes (26% vs. 0%-10%). • Those who have lived in Oro Valley for three to five years were most likely to report living in an apartment (10% vs. 3% living there for more or less time). 87% 5% 5% 1% 1% 1% 0%50%100% Single-family home Apartment Townhome or duplex Condominium Manufactured home Other Current Housing Type 2023 Town of Oro Valley Housing Survey Report Page 13 Housing Modifications Survey Question Responses Q15. If a member of your household has a disability, does the place where you live meet their needs? 401 One-third of Oro Valley residents reported a member of their household has a disability (35%). A majority of those residents feel the place they live in currently meets their needs while 7% of all residents reported their needs are not being met and modifications are needed. 64% 20% 8% 7% 1% 0%20%40%60%80% Not applicable, no one in household with a disability Yes, modifications are not needed Yes, we made modifications to fit their needs No, modifications are needed Prefer not to answer Disability Needs Being Met 2023 Town of Oro Valley Housing Survey Report Page 14 Neighborhood Satisfaction Survey Question Responses Q14. How would you rate your satisfaction with the physical condition of the properties in your neighborhood or housing development using a 1 to 5 scale where 1 means not at all satisfied and 5 means very satisfied? 401 A strong majority of Oro Valley residents were satisfied (5 - very satisfied/4) with the physical condition of the properties in their neighborhood or housing development (93%). Six percent (6%) were neither satisfied nor dissatisfied (“3” rating) while less than 2% provided a “2” rating or said they were not at all satisfied. Residents living in 85755 were most likely to report being satisfied with their neighborhood (99% 5 - very satisfied/4 vs. 83%-94% living elsewhere in Oro Valley). Residents who moved to Oro Valley three to five years ago were also most likely to be satisfied compared to those who have lived in Oro Valley for less than two years or longer than 5 years (97% 3-5 years vs. 87%-94% other years). 68%25%6%1% <1% 0%20%40%60%80%100% Satisfaction Satisfaction with Physical Condition of Properties in Neighborhood Among those with an Opinion 5 - Very satisfied 4 3 2 1 - Not at all satisfied 2023 Town of Oro Valley Housing Survey Report Page 15 B. Occupancy Most Oro Valley residents reported owning their residence (87%) while one in ten currently rent (11%). • Residents in zip code 85704 were least likely to report owning their home (81% vs. 85%-100% other zips). Unsurprisingly, as age and income increase, so does the likelihood of home ownership. • Those who have lived in Oro Valley longer were more likely than those newer to the area to report owning their home (92% 6+ years vs. 79% <6 years). • Only 62% of residents ages under 35 own their home vs. 91% of those ages 35+ • Three fourths or73% of residents with incomes over $60K own their homes compared to 85% of those with incomes $60K-$99.9K, and 91% of those with household incomes $100K+. 87% 11% 1% <1% 0%20%40%60%80%100% Own Rent Do not own or pay rent Do not have a permanent home Own or Rent Survey Question Responses Q10. Do you currently? 401 2023 Town of Oro Valley Housing Survey Report Page 16 IV. Housing Costs and Attainability A. Housing Costs Six in ten Oro Valley residents reported finding housing costs to be personally concerning (60%, 26% “very” + 34% “somewhat”). Housing costs were of highest personal concern for residents living in 85742 (35% very concerning vs. 17%-27% in other zip codes). Not surprisingly, younger residents and those with lower incomes were more likely to be personally concerned with housing costs than older residents and those with higher incomes. • 47% ages <35 vs. 22% ages 35+ • 48% <$60K vs. 22% $60K+ 40% 34% 26% 0%20%40%60% Not concerning Somewhat concerning Very concerning Concerns of Housing Cost Survey Question Responses Q16. Please indicate how much of a concern housing cost is for you personally? 401 2023 Town of Oro Valley Housing Survey Report Page 17 Likelihood to Leave Oro Valley Survey Question Responses Q18. How likely are you to leave Oro Valley due to housing cost? 401 When asked how likely they are to leave Oro Valley due to housing costs, nine in ten residents reported they were “not likely” to move or “not planning to move” (88%). One- tenth of residents (10%) reported being “very likely” or “nearly certain” to move due to housing costs. • Residents living in 85704 were most likely to move due to housing costs with 10% being “very likely” or “nearly certain” (compared to 0%-5% in other zip codes). • Those who moved to Oro Valley in 2018-2020 had notably different responses compared to those living in Oro Valley for 1-2 years or 6+ years with 9% reporting being very likely/nearly certain to move vs. 2%-6% of all other residents. • Females were significantly more likely than males to be likely to leave Oro Valley (6% vs. 2%). 52%36%7%3%1% 0%20%40%60%80%100% Likelihood to move Likelihood to Leave Oro Valley Due to Cost Among those with an Opinion Not planning to move Not likely Somewhat likely Very likely Nearly certain 2023 Town of Oro Valley Housing Survey Report Page 18 B. Barriers to Home Ownership Survey Question Responses Q17. What did you experience, or do you think are barriers to homeownership? 401 The top three barriers to home ownership were related to cost and affordability, with 54% mentioning the average home price, 29% mentioning high interest rates, and 14% mentioning not being able to afford a down payment. One in ten brought up the lack of housing supply or the economy (9%) and 5% experienced no barriers to owning a home. • Residents in 85742 were more likely to mention high interest rates as a barrier than were residents of the other four zip codes (43% vs. 20%-32%, respectively). • Renters are significantly more likely than homeowners to list home price/affordability as a barrier to ownership (82% vs. 50%). • Those who have lived in Oro Valley for 3-5 years were significantly more likely than those who have lived there longer to mention a lack of housing supply as a barrier to ownership (18% vs. 6%). 54% 29% 14% 10% 9% 5% 5% 5% 4% 3% 2% 2% 13% 0%10%20%30%40%50%60% Average home price High interest rates Not enough for a down payment Lack of housing supply Poor economy Paying too much rent to save Qualifying for a mortgage No barriers experienced or known Lack of housing choice Lack of financial education Poor credit Employment issues Other Barriers to Homeownership 2023 Town of Oro Valley Housing Survey Report Page 19 Living with Friends or Family Just over one in ten residents reported currently living with friends or extended family (13%). The top reasons residents live with others is to make rent more affordable (40%) and for personal family reasons (34%). Another one in ten live with their dependents (13%) and/or extended family members they need to take care of (11%). • As expected, younger residents (i.e., under age 35) were most likely to report currently living with others (26% vs. 11% of residents ages 35+). • As those living in Oro Valley for 3-5 years were most likely to report living in an apartment or townhome, they were also least likely to report living with others outside of their immediate family compared to those who have lived in Oro Valley for just 1 -2 years or for longer than 5 years (7% 3-5 years vs. 13%-20% other length of residency). 13% 40% 34% 13% 11% 6% 5% 5% 5% 4% 3% 7% 0%10%20%30%40%50% Yes, live with friends or extended family (n=52) Affordability of rent or a security deposit Personal family reasons Kids/dependents live with me Taking care of family members Living here temporarily (e.g., on school… Saving to purchase a home Cannot find a place that meets their needs Married House is too big for me alone Health reasons Other Reasons for Living with Friends or Family Survey Question Responses Q11. Do you currently live with friends or extended family? 401 12. IF LIVE WITH FRIENDS OR FAMILY: What is the primary reason you live with friends or extended family, or they live with you? Allow multiple responses. 52 2023 Town of Oro Valley Housing Survey Report Page 20 V. Housing Needs A. Perceptions of Housing in Oro Valley Residents were asked to rate their agreement with nine housing statements. “Owning my own home is important to me” garnered the highest level of agreement by far (90%; i ncluding 87% who “strongly agreed”. Three-quarters agreed it’s important for housing to be financially attainable (73%) while six in ten agreed high-density housing should be in areas with easy access to shops, services, and facilities (60%). Residents were least likely to agree that more apartments and townhomes are needed in Oro Valley (20%). 87% 54% 35% 30% 19% 29% 16% 22% 19% 12% 3% 19% 25% 24% 27% 12% 21% 14% 15% 8% 90% 73% 60% 54% 46% 41% 37% 36% 34% 20% 0%20%40%60%80%100% Owning my own home is important to me Housing that is financially attainable is important. High-density housing should be in areas with easy access to shops, services, and facilities. High-density housing can blend in with the character of surrounding areas. High-density housing should be located along arterials or major roadways. Apartments detract from the character of Oro Valley Oro Valley has a balanced housing mix that includes a wide range of types and prices. Neighborhoods or housing developments need clean-up programs in Oro Valley. Oro Valley should provide more housing options (single-family homes, apartments, etc.) More high-density housing, such as apartments or townhomes is needed in Oro Valley. Agreement with Housing Statements Strongly Agree or Agree Among Those with an Opinion Strongly Agree Agree Survey Question Responses Q6. Please provide your level of agreement with the following statements by using a scale from 1 to 5 where 1 means you strongly disagree and 5 means you strongly agree with each statement. 401 2023 Town of Oro Valley Housing Survey Report Page 21 • Agreement about the importance of owning their own home was even higher among those who have lived in Oro Valley for 3 years or longer (92% vs. 76% <3 years) and residents 65 or older (94% vs. 86% under 65). • Residents living in 85742 were most likely to agree that financially attainable housing is important (83% vs. 64%-80% in other zip codes). Table 2: Housing in Oro Valley Detailed Ratings (excludes don’t know) Housing Attributes Strongly Agree Agree Neutral Disagree Strongly Disagree Owning my own home is important to me 87% 3% 4% 3% 3% Housing that is financially attainable is important. 54% 19% 16% 3% 8% High-density housing should be in areas with easy access to shops, services, and facilities. 35% 25% 23% 7% 10% High-density housing can blend in with the character of surrounding areas. 30% 24% 16% 10% 19% Apartments detract from the character of Oro Valley 29% 12% 24% 15% 20% High-density housing should be located along arterials or major roadways. 19% 27% 30% 11% 13% Oro Valley has a balanced housing mix that includes a wide range of types and prices. 16% 21% 32% 21% 10% Neighborhoods or housing developments need clean-up programs in Oro Valley. 22% 14% 31% 19% 14% Oro Valley should provide more housing options (single-family homes, apartments, etc.) 18% 15% 27% 18% 21% More high-density housing, such as apartments or townhomes is needed in Oro Valley. 12% 8% 24% 18% 38% 2023 Town of Oro Valley Housing Survey Report Page 22 B. Perceived Housing Challenges in Oro Valley Survey Question Responses Q18. How likely are you to leave Oro Valley due to housing cost? 401 When asked to provide their level of agreement with five statements regarding housing challenges, nearly half of Oro Valley residents agreed there is a lack of financially attainable housing for teachers, police, first responders, retail/service employees or entry-level workers (47% agree/strongly agree). Another four in ten agreed there is a lack of financially attainable housing for seniors, veterans, or those with disabilities in Oro Valley (42%). • Residents with lower incomes were more likely to agree with all five statements compared to those with higher annual incomes (46%-61% <$60K vs. 21%-48% $60K+). • Those who have lived in Oro Valley for 2 years or less were significantly more likely than longer term-residents to agree there is a lack of financially attainable housing for seniors, veterans, or persons with disabilities (58% vs. 37% 3+ years). • Additionally, those under the age of 35 were much more likely than older residents to agree with the lack of housing for police, first responders, etc. (62% vs. 43%). 25% 18% 17% 16% 11% 22% 24% 18% 18% 14% 47% 42% 35% 34% 25% 0%20%40%60%80% There is a lack of financially attainable housing for teachers, police, first responders, retail or service employees, or entry level professionals. There is a lack of financially attainable housing for seniors, veterans, or persons with disabilities. There is a lack of adequately sized housing options for multi-generational living. Children who grow up here cannot afford to live in Oro Valley as adults. There is a lack of adequately sized housing options for those who are interested in down-sizing Agreement with Housing Challenges Strongly Agree or Agree Among Those with an Opinion Strongly Agree Agree 2023 Town of Oro Valley Housing Survey Report Page 23 Table 3a: Housing Challenges in Oro Valley Detailed Ratings (excludes don’t know) Housing Challenges Strongly Agree Agree Neutral Disagree Strongly Disagree There is a lack of financially attainable housing for teachers, police, first responders, retail or service employees, or entry level professionals. 25% 22% 25% 15% 13% There is a lack of financially attainable housing for seniors, veterans, or persons with disabilities. 18% 24% 28% 17% 13% There is a lack of adequately sized housing options for multi-generational living. 17% 18% 32% 19% 14% Children who grow up here cannot afford to live in Oro Valley as adults. 16% 18% 30% 18% 18% There is a lack of adequately sized housing options for those who are interested in down-sizing 11% 14% 34% 20% 21% Table 3b: Housing Challenges in Oro Valley Top-Two Ratings (Strongly agree/Agree) Housing Challenges Total n=401 <$60K n=61 (A) $60K- $100K n=88 (B) $100K- $150K n=64 (C) $150K+ n=121 (D) There is a lack of financially attainable housing for teachers, police, first responders, retail or service employees, or entry level professionals. 47% 55% 48% 50% 48% There is a lack of financially attainable housing for seniors, veterans, or persons with disabilities. 42% 56% 40% 41% 46% There is a lack of adequately sized housing options for multi-generational living. 35% 46%B 27% 34% 41% Children who grow up here cannot afford to live in Oro Valley as adults. 34% 61%BCD 33% 32% 28% There is a lack of adequately sized housing options for those who are interested in down- sizing 25% 46%BCD 23% 20% 19% 2023 Town of Oro Valley Housing Survey Report Page 24 C. Types of Housing Needed in Oro Valley Survey Question Responses Q9. What types of housing does Oro Valley need? For each type, please provide a rating using a 1 to 5 scale where 1 means this type of housing is a low need in Oro Valley and 5 means you believe this type of housing is a high need in Oro Valley. 401 Oro Valley residents rated the housing type most needed in the area was for single-family homes with 63% providing a “5 - high need” or a “4” rating. Another four in ten reported the area needs more townhomes/ duplexes (40%), secondary residential units (38%), or condominiums (39%). Fewer than 10% feel there is a need for manufactured homes (8%) or mobile homes/RV parks (3%). • Residents living in 85704 were most likely to report a need for single-family homes (74% vs. 57%-68% other zips) while those in 85742 were most likely to say they need nearly all other types of dwellings such as townhomes/duplexes, secondary residential units, and apartments (Table 6b). • Those newer to Oro Valley and those under the age of 35 were significantly more likely than their comparative groups to rate townhomes or duplexes as needed in Oro Valley: - 53% less than 6 years in OV vs. 32% more than 6 years in OV - 66% ages under 35 vs. 36% ages 35+ 38% 13% 16% 13% 9% 7% 3% 2% 25% 27% 23% 23% 15% 8% 5% 1% 63% 40% 39% 36% 24% 15% 8% 3% 0%20%40%60%80% Single-family homes Townhomes or duplexes Secondary residential units on an existing lot… Condominiums Apartments Tiny homes Manufactured homes Mobile homes / RV Parks Housing Needs in Oro Valley "4" and "5 - High need" Among Those with an Opinion 5 - High Need 4 2023 Town of Oro Valley Housing Survey Report Page 25 Table 5a: Housing Needs in Oro Valley Detailed Ratings (excludes don’t know) Housing Needs 5 – High Need 4 3 2 1 – Low Need Single-family homes 38% 24% 23% 7% 7% Townhomes or duplexes 13% 28% 29% 16% 14% Secondary residential units on an existing lot (e.g., living quarters for friends or extended family) 16% 23% 27% 17% 17% Condominiums 13% 23% 35% 15% 14% Apartments 9% 15% 29% 20% 27% Tiny homes 7% 8% 18% 22% 44% Manufactured homes 3% 5% 13% 20% 59% Mobile homes / RV Parks 2% 1% 8% 14% 75% Table 5b: Housing Needs in Oro Valley Top-Two Ratings (5 – High Need/4) Housing Needs Total n=401 85755 n=97 (A) 85739 n=14 (B) 85737 n=158 (C) 85742 n=60 (D) 85704 n=71 (E) Single-family homes 63% 57% 68% 62% 58% 74%A Townhomes or duplexes 40% 34% 27% 41% 49% 43% Secondary residential units on an existing lot (e.g., living quarters for friends or extended family) 39% 33% 26% 36% 56%ABC 44% Condominiums 36% 31% 54% 36% 45% 33% Apartments 24% 26% 21% 18% 34%C 28% Tiny homes 15% 14% 13% 14% 19% 18% Manufactured homes 8% 6% - 7% 12% 10% Mobile homes / RV Parks 3% 1% - 3% 6% 4% 2023 Town of Oro Valley Housing Survey Report Page 26 Acceptable Rental Options Survey Question Responses Q8. Understanding all communities need rental options, please rate each housing type using a 1 to 5 scale where 1 means “not at all acceptable in OV” and 5 means” the option would be “very acceptable in OV”. 401 Detached and attached 1-2 story rental homes were most likely to be seen as acceptable rental options in Oro Valley (49% and 46% acceptable/very acceptable, respectively). Residents were least likely to find 4-5 story rental apartments to be acceptable with only 14% providing a “very acceptable” or “acceptable” rating. As length of residency increases, the acceptance of each rental option decreases for Oro Valley residents (Table 6b on page 27). Table 6a: Rental Options in Oro Valley Detailed Ratings (excludes don’t know) Rental Options Very Acceptable Acceptable Neither Not Acceptable Not At All Acceptable Detached 1-2 story rental homes 25% 24% 28% 13% 10% Attached 1-2 story rental homes (e.g., duplexes, townhome) 23% 23% 28% 17% 10% 2-3 story rental apartments 17% 18% 26% 17% 22% 4-5 story rental apartments 7% 7% 16% 16% 54% 25% 23% 17% 7% 24% 23% 18% 7% 49% 46% 35% 14% 0%20%40%60%80% Detached 1-2 story rental homes Attached 1-2 story rental homes (e.g., duplexes, townhome) 2-3 story rental apartments 4-5 story rental apartments Rental Options in Oro Valley Very Acceptable and Acceptable Among Those with an Opinion Very Acceptable Acceptable 2023 Town of Oro Valley Housing Survey Report Page 27 Table 6b: Rental Options in Oro Valley by Length of Residence Top-Two Ratings (Very acceptable/Acceptable) Rental Options Total n=401 <3 years in OV n=65 (A) 3-5 years in OV n=95 (B) 6-10 years in OV n=64 (C) 10+ years in OV n=176 (D) Detached 1-2 story rental homes 49% 53% 60%D 47% 42% Attached 1-2 story rental homes (e.g., duplexes, townhome) 46% 56%D 53% 42% 40% 2-3 story rental apartments 35% 45%D 43%D 34% 27% 4-5 story rental apartments 14% 28%CD 16% 10% 8% 2023 Town of Oro Valley Housing Survey Report Page 28 VI. Other Opinions Regarding Housing in Oro Valley Survey Question Responses Q19. Is there any other information you would like to share about housing? 401 When given the opportunity to offer any other information regarding housing in Oro Valley, residents more frequently mentioned concerns over overcrowding/growth/infrastructure issues (21%), affordable housing/rent (10%), and other general negatives about the community (10%). A breakdown of the individual responses in each category is provided in Appendix A. Table 6: Other Information Regarding Housing in Oro Valley Other Information about Housing Total n=401 Overcrowding/Growth/Infrastructure 21% Affordable Housing/Rent 10% Community Negatives 10% Community Positives 8% Diversity/Low-income Housing 3% Government Involvement/Taxes/Politics 3% Low Availability 1% HOA's 1% Restriction on Construction 1% Other 2% No Answer 53% • Residents living in 85737 were most likely to offer comments regarding affordable housing/rent (13% vs. 4%- 12% for other zip codes). 2023 Town of Oro Valley Housing Survey Report Page 29 Resident Online Survey I. Explanation of Margin of Error There is a certain amount of sampling "error" that occurs with survey research because of the variability that is present whenever a portion of a population is examined to provide insight into the attitudes, opinions, and behaviors of the total population. This "error" does not imply a mistake has been made but reflects the likelihood that the estimates derived from interviewing a sample of the population differ from the numbers that would be obtained if the entire population was interviewed using identical questions. Based on a sample size of 400, the sampling error (at the conventional 95% confidence level) is ±5.0%. This means that in 19 out of 20 cases, the "actual" percentage will fall within ±5.0% if every qualified member of the population was interviewed. This year the Citizen Survey has a Total sample size of 1,211, and the margin of error (or sampling error) is ±2.8%. If results of a particular sub-group differ from results of another sub-group by more than this percentage, the difference is said to be "statistically significant." Throughout this report, each sub-group in a table or chart may be identified with bolded or underlined font. A bolded number indicates that the number is statistically higher than the underlined number(s) in the same row. For example, in the table below, the bolded 45% in the top row is significantly higher than the underlined 35% in the same row at the 95% confidence level. Housing Challenges in Oro Valley by Income Online Survey Top-Two Summary by Income (Strongly agree + Agree) Housing Challenges Total n=1,034 <$60K n=136 $60K- $100K n=248 $100K- $150K n=270 $150K+ n=380 There is a lack of financially attainable housing for teachers, police, first responders, retail or service employees, or entry level professionals. 38% 35% 45% 42% 35% There is a lack of financially attainable housing for seniors, veterans, or persons with disabilities. 34% 34% 40% 34% 32% There is a lack of adequately sized housing options for multi-generational living. 33% 26% 42% 31% 34% Children who grow up here cannot afford to live in Oro Valley as adults. 31% 34% 37% 32% 28% There is a lack of adequately sized housing options for those who are interested in down-sizing 21% 22% 29% 18% 22% 2023 Town of Oro Valley Housing Survey Report Page 30 II. Respondent Demographics and Characteristics There were some notable differences in the demographic profile of web and phone respondents. Web survey respondents were more likely to be retired, live on a fixed income and the largest proportion report they only had two people in their household. Also, in contrast to the phone survey respondents, web respondents who were residents of the 85755-zip code made up more than one-half of web survey respondents. Web respondents were less likely to be Hispanic. Like phone respondents, most web survey respondents live in Oro Valley full-time and nearly one-half of residents have lived in Oro Valley for more than 10 years. Table 2a: Demographics Characteristic Phone n=401* Online n=1211 Characteristic Phone n=401* Online n=1211 Gender Type of Income Male 47% 41% Fixed income household 17% 43% Female 52% 54% Single income household 37% 22% Prefer not to answer 1% 5% Dual income household 42% 33% Age Employment Status 18 to 34 years 15% 3% Full-time employed 40% 28% 35 to 49 years 19% 15% Retired 38% 54% 50 to 64 years 25% 44% Business owner/self-employed 8% 6% 65+ years 41% 33% Part-time employed 5% 6% Prefer not to answer 1% 4% Student 2% <1% Not employed at this time 4% 4% Annual household income Race Less than $20,000 2% 1% Caucasian/White 79% 83% $20,000 to $39,999 5% 3% Latino/Hispanic 4% -- $40,000 to $59,999 9% 7% African American/Black 2% 1% $60,000 to $79,999 9% 9% Asian 2% 1% $80,000 to $99,999 13% 12% Native Hawaiian/Pacific Islander 1% <1% $100,000 to $149,999 16% 22% American Indian/Alaska Native <1% <1% $150,000 or more 30% 31% Two or more races 6% 4% Prefer not to answer 17% 15% Prefer not to answer 6% 5% Have children under 18 in HH 31% 19% Hispanic/Latino 18% 7% *Weighted data 2023 Town of Oro Valley Housing Survey Report Page 31 Table 2b: Demographics Characteristic Phone n=401* Online n=1211 Characteristic Phone n=401* Online n=1211 Education Level # People in Household 9th to 12th grade, no diploma <1% <1% 1 19% 14% High school diploma or GED 6% 8% 2 43% 58% Associate degree 8% 11% 3 18% 11% Some college/Tech training 16% 2% 4-5 17% 14% Bachelor’s degree 37% 40% 6+ 1% -- Master’s degree or higher 31% 39% Prefer not to answer 3% 2% Length of Time in Oro Valley Zip Code (see map below) Less than 1 year 3% 3% 85737 40% 35% 1-2 years 13% 11% 85755 24% 56% 3-5 years 24% 20% 85704 18% 6% 6-10 years 16% 20% 85742 15% 3% More than 10 years 44% 46% 85739 3% 1% Full or Part Time Resident Live in Oro Valley Full Time 96% 90% Live in Oro Valley Part Time 4% 10% *Weighted data 2023 Town of Oro Valley Housing Survey Report Page 32 III. Current Housing Type and Occupancy A. Housing Type Survey Question Phone Online Q13. Which best describes your current housing type in Oro Valley? 401 1,211 Nearly nine in ten web respondents reported living in a single -family home in Oro Valley. One-tenth reported living in either an apartment or townhome. • Those living in 85704 were most likely to report living in an apartment or townhome compared to the other Oro Valley zip codes. • Those newer to Oro Valley were also more likely than long-time residents to live in an apartment, townhouse, or condominium. 87% 5% 5% 1% 1% 1% 88% 2% 7% 3% <1% 0%50%100% Single-family home Apartment Townhome or duplex Condominium Manufactured home Other Current Housing Type Phone Online 2023 Town of Oro Valley Housing Survey Report Page 33 Housing Modifications Four in ten Oro Valley residents who completed the web survey reported a member of their household has a disability (40%). The majority of those respondents feel the place they live in currently meets their disability needs; however, one in eight (12% of all respondents) reported their needs are not being met and modifications are still needed. 64% 20% 8% 7% 1% 58% 22% 6% 12% 3% 0%20%40%60%80% Not applicable, no one in household with a disability Yes, modifications are not needed Yes, we made modifications to fit their needs No, modifications are needed Prefer not to answer Disability Needs Being Met Phone Online Survey Question Phone Online Q15. If a member of your household has a disability, does the place where you live meet their needs? 401 1,211 2023 Town of Oro Valley Housing Survey Report Page 34 Neighborhood Satisfaction A strong majority of web respondents were satisfied (very satisfied/satisfied) with the physical condition of the properties in their neighborhood or housing development (93%). • Web respondents living in 85739 were most likely to report being satisfied (very satisfied/satisfied) compared to those living in all other Oro Valley zip codes (100% vs. 89%-94%). • Those who have lived in Oro Valley for 3 to 10 years were more likely to be satisfied compared to those who have lived in Oro Valley for longer (95% vs. 91%). 68% 55% 25% 38% 6% 4% <2% 3% 0%20%40%60%80%100% Phone Online Satisfaction with Physical Condition of Properties in Neighborhood Among those with an Opinion Very satisfied Satisfied Neither Dissatisfied Survey Question Phone Online Q14. How would you rate your satisfaction with the physical condition of the properties in your neighborhood or housing development using a 1 to 5 scale where 1 means not at all satisfied and 5 means very satisfied? 401 1,211 2023 Town of Oro Valley Housing Survey Report Page 35 B. Occupancy Survey Question Phone Online Q13. Do you currently? 401 1,211 Nearly all web survey respondents reported owning their current residence (96%), with just 3% saying they rent. • Web respondents in zip code 85704 were least likely to report owning their home (88% vs. 95%-100% other zips). • Unsurprisingly, those under 35 and those with incomes less than $100,000 are significantly less likely than their counterparts to own their home: - 66% of those under 35 vs. 97% of those over 35 - 92% for those with incomes less than $100K vs. 98% for those with incomes over $100K+ 87% 11% 1% <1% 96% 3% 1% 0%20%40%60%80%100% Own Rent Do not own or pay rent Do not have a permanent home Own or Rent Phone Online 2023 Town of Oro Valley Housing Survey Report Page 36 IV. Housing Costs and Attainability A. Housing Costs Over half (52%) of respondents who completed the web-based survey found housing costs for them personally to be “very” (15%) or “somewhat” (37%) concerning. Phone respondents were more likely than those who took the survey online to indicate finding housing costs to be personally “very concerning”. • Housing costs were most concerning for respondents living in 85704 and 85742. • Not surprisingly, younger respondents and those with incomes under $100K were more concerned with housing costs compared to those 35+ and those with incomes$100K or more. - 51% ages under 35 vs. 14% ages 35+ (very concerning) - 21% under $100K vs. 13% $100K+ 26% 34% 40% 15% 37% 48% 0%20%40%60% Very concerning Somewhat concerning Not concerning Concerns of Housing Cost Phone Online Survey Question Phone Online Q16. Please indicate how much of a concern housing cost is for you personally? 401 1,211 2023 Town of Oro Valley Housing Survey Report Page 37 Likelihood to Leave Oro Valley When asked how likely they are to leave Oro Valley due to housing costs, nine in ten web respondents reported they were “not likely” to move or “not planning to move” (89%). One- tenth of respondents (10%) reported to be “very likely” or “nearly certain” to move due to housing costs. • One in four (27%) of web respondents under 35 maintain they are “very likely” or “nearly certain” to leave Oro Valley due to housing costs compared to just 3% of those 35+. • Interestingly, those with kids under 18 in the household are three times more likely to say they are “very likely” or “nearly certain” to leave Oro Valley due to housing costs (9% and 3%, respectively). 52% 23% 36% 66% 7% 7% 3% 3% 1% 1% 0%20%40%60%80%100% Phone Online Only Likelihood to Leave Oro Valley Due to Cost Among those with an Opinion Not planning to move Not likely Somewhat likely Very likely Nearly certain Survey Question Phone Online Q18. How likely are you to leave Oro Valley due to housing cost? 401 1,211 2023 Town of Oro Valley Housing Survey Report Page 38 Living with Friends or Family Just 4% of residents who completed the web-based survey reported currently living with friends or extended family. The top reasons for doing so were personal family reasons (50%) and to make rent affordable (29%). • As to be expected, younger respondents were most likely to report currently living with others (web only: 17% <35 vs. 4% 35+). • Those living in Oro Valley for 3 to 5 years were least likely to report living with others outside of their immediate family compared to those who have lived in Oro Valley for just 1-2 years or for longer than 5 years (1% 3-5 years vs. 4%-6% other length of residency). 13% 40% 34% 13% 11% 6% 5% 5% 5% 4% 3% 7% 4% 29% 50% 2% 2% 12% 12% 14% 2% 0%20%40%60% Yes, live with friends or extended family (Phone and Online n=52) Affordability of rent or a security deposit Personal family reasons Kids/dependents live with me Taking care of family members Living here temporarily (e.g., on school breaks,… Saving to purchase a home Cannot find a place that meets their needs Married House is too big for me alone Health reasons Other Reasons for Living with Friends or Family Phone Online Survey Question Phone Online Q11. Do you currently live with friends or extended family? 401 1,211 12. IF LIVE WITH FRIENDS OR FAMILY: What is the primary reason you live with friends or extended family, or they live with you? Allow multiple responses. 52 48 2023 Town of Oro Valley Housing Survey Report Page 39 C. Barriers to Homeownership Survey Question Phone Online Q17. What did you experience, or do you think are barriers to homeownership? 401 1,211 The top barriers to home ownership mentioned by the web respondents were related to cost and affordability with 36% mentioning the average home price, 33% mentioning high interest rates, and 20% mentioning not being able to afford a down payment. These were also the top three barriers mentioned in the phone survey. Interestingly, nearly one-quarter of those responding to the web survey said they did not experience barriers compared to only 5% of phone survey participants. As might be expected, respondents under 35 years were significantly more likely than those 35+ to mention average home price / affordability (54% and 36% respectively) and paying too much rent to save (29% vs. 14%) as barriers to home ownership. 54% 29% 14% 10% 9% 5% 5% 4% 3% 2% 2% 13% 5% 36% 33% 20% 12% <1% 15% 11% 5% 1% 1% <1% 24% 0%20%40%60% Average home price High interest rates Not enough for a down payment Lack of housing supply Poor economy Paying too much rent to save Qualifying for a mortgage Lack of housing choice Lack of financial education Poor credit Employment issues Other No barriers experienced or known Barriers to Homeownership Phone Online 2023 Town of Oro Valley Housing Survey Report Page 40 VII. Housing Needs A. Perceptions of Housing in Oro Valley Survey Question Phone Online Q6. Please provide your level of agreement with the following statements by using a scale from 1 to 5 where 1 means you strongly disagree and 5 means you strongly agree with each statement. 401 1,180 Web respondents were asked to provide their level of agreement for nine housing statements. These respondents most strongly agreed that owning their own home is important to them (91% agree/strongly agree). Another two-thirds agreed that it’s important for housing to be financially attainable (64%) while six in ten agreed Oro Valley has a balanced housing mix (60%). Web respondents were least likely to agree that more apartments and townhomes are needed in Oro Valley (20%). The most notable difference between online and phone survey respondents was the level of agreement with the statement Oro Valley has a balanced housing mix (60% for web compared to 37% for phone). The top two and bottom two statements were the same among web and phone respondents. 90% 73% 37% 41% 60% 46% 36% 54% 34% 20% 91% 64% 60% 58% 54% 45% 44% 38% 28% 20% 0%20%40%60%80%100% Owning my own home is important to me Housing that is financially attainable is important. Oro Valley has a balanced housing mix that includes a wide range of types and prices. Apartments detract from the character of Oro Valley High-density housing should be in areas with easy access to shops, services, and facilities. High-density housing should be located along arterials or major roadways. Neighborhoods or housing developments need clean-up programs in Oro Valley. High-density housing can blend in with the character of surrounding areas. Oro Valley should provide more housing options (single-family homes, apartments, etc.) More high-density housing, such as apartments or townhomes is needed in Oro Valley. Agreement with Housing Statements Top 2 Summary - Strongly Agree + Agree Phone vs. Online (Respondents with an Opinion) Phone Online 2023 Town of Oro Valley Housing Survey Report Page 41 Table 3: Housing in Oro Valley Detailed Online Survey Ratings (excludes don’t know) Housing Attributes Strongly Agree Agree Neutral Disagree Strongly Disagree Owning my own home is important to me 63% 28% 5% 1% 3% Housing that is financially attainable is important. 22% 42% 20% 10% 6% High-density housing should be in areas with easy access to shops, services, and facilities. 14% 40% 25% 9% 12% High-density housing can blend in with the character of surrounding areas. 13% 25% 11% 17% 34% Apartments detract from the character of Oro Valley 37% 21% 15% 16% 11% High-density housing should be located along arterials or major roadways. 12% 33% 25% 14% 16% Oro Valley has a balanced housing mix that includes a wide range of types and prices. 17% 43% 15% 19% 6% Neighborhoods or housing developments need clean-up programs in Oro Valley. 13% 31% 28% 21% 7% Oro Valley should provide more housing options (single-family homes, apartments, etc.) 11% 16% 16% 27% 29% More high-density housing, such as apartments or townhomes is needed in Oro Valley. 9% 11% 10% 22% 48% 2023 Town of Oro Valley Housing Survey Report Page 42 B. Perceived Housing Challenges in Oro Valley Survey Question Phone Online Q7. Many communities face the following housing challenges. Again, please provide your level of agreement with the following challenges as it applies to Oro Valley by using a scale from 1 to 5 where 1 means you strongly disagree and 5 means you strongly agree with each statement 401 1,180 Next, respondents were asked to provide their level of agreement with five statements regarding housing challenges. Web respondents most often agreed there is a lack of financially attainable housing for teachers, police, first responders, retail/service employees or entry-level workers (38% agree/strongly agree). Another one-third agreed there is a lack of financially attainable housing for seniors, veterans, or those with disabilities in Oro Valley, and that there is a lack of adequately sized housing options for multi-generational living. Younger respondents were much more likely to agree with the lack of housing for police, first responders, etc. compared to those over the age of 35 (71% <35 vs. 37% 35+). The rank order of agreement levels with housing challenges was the same for web and phone and survey respondents. 47% 42% 35% 34% 25% 38% 34% 33% 31% 21% 0%20%40%60%80% There is a lack of financially attainable housing for teachers, police, first responders, retail or service employees, or entry level professionals. There is a lack of financially attainable housing for seniors, veterans, or persons with disabilities. There is a lack of adequately sized housing options for multi-generational living. Children who grow up here cannot afford to live in Oro Valley as adults. There is a lack of adequately sized housing options for those who are interested in down-sizing Agreement with Housing Challenges Top 2 Summary - "Strongly Agree- 5" + 4 Rating Among Survey Respondents with an Opinion Phone Online 2023 Town of Oro Valley Housing Survey Report Page 43 Table 4a: Housing Challenges in Oro Valley Detailed Online Survey Ratings (excludes don’t know) Housing Challenges 5- Strongly Agree 4 3 2 1- Strongly Disagree There is a lack of financially attainable housing for teachers, police, first responders, retail or service employees, or entry level professionals. 15% 23% 15% 32% 15% There is a lack of financially attainable housing for seniors, veterans, or persons with disabilities. 12% 22% 17% 34% 15% There is a lack of adequately sized housing options for multi-generational living. 11% 21% 20% 31% 16% Children who grow up here cannot afford to live in Oro Valley as adults. 11% 20% 23% 34% 12% There is a lack of adequately sized housing options for those who are interested in down-sizing 6% 15% 15% 41% 23% Table 4b: Housing Challenges in Oro Valley by Income Online Survey Top-Two Summary by Income (Strongly agree + Agree) Housing Challenges Total n=1,034 <$60K n=136 $60K- $100K n=248 $100K- $150K n=270 $150K+ n=380 There is a lack of financially attainable housing for teachers, police, first responders, retail or service employees, or entry level professionals. 38% 35% 45% 42% 35% There is a lack of financially attainable housing for seniors, veterans, or persons with disabilities. 34% 34% 40% 34% 32% There is a lack of adequately sized housing options for multi-generational living. 33% 26% 42% 31% 34% Children who grow up here cannot afford to live in Oro Valley as adults. 31% 34% 37% 32% 28% There is a lack of adequately sized housing options for those who are interested in down-sizing 21% 22% 29% 18% 22% Bold indicates a significantly higher percentage than the underlined comparative figure. 2023 Town of Oro Valley Housing Survey Report Page 44 C. Types of Housing Needed in Oro Valley Survey Question Online Online Q9. What types of housing does Oro Valley need? Please rate each type below. Scale: Low need in OV, Neutral, Medium Need in OV, High Need in OV. 1,211 Web respondents believe the housing type most needed in the area is single-family homes with 58% saying there is a “high” or “medium” need. One half (49%) reported the area needs more townhomes/ duplexes, with four in ten (41%) saying the area could use more condominiums. Fewer than one in ten feel there is a need for manufactured homes or mobile homes/RV parks (each at 6%). Note: The scale used for the online survey was different than for the phone survey, therefore the results are not comparable and thus not shown below. Those newer to Oro Valley and those under the age of 35 were significantly more likely to say they need townhomes or duplexes compared to their comparable sub-groups: - 56% living less than 2 years in OV vs. 46% living in more than 3 years in OV - 66% ages under 35 vs. 47% over 35+ 24% 16% 12% 13% 8% 4% 2% 2% 34% 33% 29% 24% 17% 9% 4% 4% 58% 49% 41% 37% 25% 13% 6% 6% 0%20%40%60%80% Single-family homes Townhomes or duplexes Condominiums Secondary residential units on an existing lot (e.g., living quarters for friends or… Apartments Tiny homes Manufactured homes Mobile homes / RV Parks Housing Needs in Oro Valley "High or Medium need" Among Online Respondents with an Opinion High Need Medium Need 2023 Town of Oro Valley Housing Survey Report Page 45 Table 6a: Housing Needs in Oro Valley Detailed Online Survey Ratings (excludes don’t know) Housing Needs (4-point scale) High Need Medium Need Neutral Low Need Single-family homes 24% 34% 16% 26% Townhomes or duplexes 16% 33% 16% 35% Secondary residential units on an existing lot (e.g., living quarters for friends or extended family) 13% 24% 23% 40% Condominiums 12% 29% 21% 38% Apartments 8% 17% 16% 59% Tiny homes 4% 9% 13% 74% Manufactured homes 2% 4% 8% 86% Mobile homes / RV Parks 2% 4% 4% 90% As shown in Table 6b, web respondents living in 85739 and 85704 were most likely to report a need for single-family homes (88% and 71% vs. 55%-62% other zips). Secondary residential units were more likely to be perceived as needed by those residing in 85737, 85742, and 85704. Table 6b: Housing Needs in Oro Valley by Zip code Top-Two Ratings (High or Medium Need) Housing Needs Total n=1,211 85755 n=674 85739 n=8* 85737 n=420 85742 n=37 85704 n=72 Single-family homes 58% 55% 88% 62% 56% 71% Townhomes or duplexes 49% 46% 57% 51% 50% 59% Condominiums 41% 39% 63% 44% 47% 40% Secondary residential units on an existing lot (e.g., living quarters for friends or extended family) 37% 31% 13% 42% 49% 59% Apartments 25% 22% 50% 27% 30% 26% Tiny homes 13% 11% - 15% 26% 18% Manufactured homes 6% 5% - 6% 18% 9% Mobile homes / RV Parks 6% 5% - 6% 9% 10% Bold indicates a significantly higher percentage than underlined comparative figures. *Small sample size 2023 Town of Oro Valley Housing Survey Report Page 46 Acceptable Rental Options Survey Question Online Q8 Online: Understanding all communities need rental options, please rate each housing type using the scale below. Scale: Not at all acceptable in OV, Neutral, Acceptable in OV, very acceptable in OV. 1,183 Detached and attached 1-2 story rental homes are seen as the most acceptable rental options among web respondents (66% and 61% acceptable/very acceptable, respectively). Note: The scale used for the online survey was different than for the phone survey, therefore the results are not comparable and thus not shown below. Table 5a: Rental Options in Oro Valley Detailed Online Survey Ratings (excludes don’t know) Rental Options (4-point scale) Very Acceptable Acceptable Neutral Not At All Acceptable Detached 1-2 story rental homes 20% 46% 16% 18% Attached 1-2 story rental homes (e.g., duplexes, townhome) 16% 45% 19% 20% 2-3 story rental apartments 8% 27% 21% 44% 4-5 story rental apartments 3% 7% 10% 81% 66% 61% 35% 10% 0%20%40%60%80% Detached 1-2 story rental homes Attached 1-2 story rental homes (e.g., duplexes, townhome) 2-3 story rental apartments 4-5 story rental apartments Rental Options in Oro Valley Summary of Very Acceptable + Acceptable Among Online Survey Respondents with an Opinion Online 2023 Town of Oro Valley Housing Survey Report Page 47 As shown below, newer residents are more accepting of all rental options than are those who have lived in Oro Valley for longer than three years. Table 5b: Rental Options in Oro Valley by Length of Residency Top-Two Ratings (Very acceptable/Acceptable) Rental Options (4-point scale) Total n=1,183 <3 years in OV n=172 3-5 years in OV n=240 6-10 years in OV n=237 10+ years in OV n=562 Detached 1-2 story rental homes 66% 79% 66% 64% 64% Attached 1-2 story rental homes (e.g., duplexes, townhome) 61% 72% 58% 61% 60% 2-3 story rental apartments 35% 43% 33% 31% 35% 4-5 story rental apartments 10% 16% 8% 7% 10% Bold indicates a significantly higher percentage than the underlined comparative figure. 2023 Town of Oro Valley Housing Survey Report Page 48 VI. Other Opinions Regarding Housing in Oro Valley Survey Question Online Q19. Is there any other information you would like to share about housing? 1,211 When given the opportunity to offer any other information regarding housing in Oro Valley, web respondents were likely to make comments about overcrowding/growth/infrastructure issues (27%), affordable housing/rent (6%), and other general negatives about the community (11%). More than one-half of web survey respondents did not share any comments. A breakdown of the individual responses in each category is provided in Appendix A. Table 7: Other Information Regarding Housing in Oro Valley Other Information about Housing Online Total n=1,211 Overcrowding/Growth/Infrastructure 27% Community Perceptions 14% Affordable Housing/Rent 6% Government Involvement/Taxes/Politics 4% Diversity/Low-income Housing 3% Low Availability <1% HOA's 2% Restriction on Construction - Other 1% No Answer 53% 2023 Town of Oro Valley Housing Survey Report Page 49 Business Owners and Non-resident Workforce Survey I. Explanation of Margin of Error There is a certain amount of sampling "error" that occurs with survey research because of the variability that is present whenever a portion of a population is examined to provide insight into the attitudes, opinions, and behaviors of the total population. This "error" does not imply a mistake has been made but reflects the likelihood that the estimates derived from interviewing a sample of the population differ from the numbers that would be obtained if the entire population was interviewed using identical questions. Based on a sample size of 136, the sampling error (at the conventional 95% confidence level) is ±5.0%. This means that in 19 out of 20 cases, the "actual" percentage will fall within ±8.4% if every qualified member of the population was interviewed. 2023 Town of Oro Valley Housing Survey Report Page 50 II. Respondent Demographics and Characteristics Approximately six in ten (62%) respondents reported working for an organization located in Oro Valley and 38% reported owning an Oro Valley based business. Numerous industries of diverse sizes were represented by employees and business owners who participated in the survey . Whereas one in four have worked at or operated a business in Oro Valley for two years or less, 31% have done so for over ten years. Approximately three in five (62%) of employees surveyed hold at least a bachelor’s degree, 43% of business owners think most of their employees have a 4-year college degree or more education. Four in five (80%) reported most of the workforce to be 35 to 64 years old. Table 8a: Business Owners/Workforce Related Characteristics Characteristic Total n=136 Characteristic Total n=136 Own Business or Work in OV Industry Only work in OV 62% Professional, scientific, technical or services 14% Own business 38% Public administration 14% Own business and work in OV - Real estate 13% Years worked in OV Retail, food, or personal services 12% Less than 1 year 10% Construction or manufacturing 11% 1-2 years 15% Health care or first responders 11% 3-5 years 29% Education 7% 6-10 years 16% Finance or insurance 6% More than 10 years 31% Arts or entertainment 3% Employee Education Level (n=85) Transportation or warehousing 1% High school diploma or GED 15% Other 8% Associate degree 22% Bachelor’s degree 42% Master’s degree or higher 20% Owner Reported Employee Education (n=51) # People Employed at Business High school diploma or GED 31% Fewer than 5 27% Associate degree 16% 5-9 9% Bachelor’s degree 25% 10-19 1% Master’s degree or higher 18% 20-49 11% Don’t know 10% 50-99 9% Age of Most Employees/Co-workers 100-249 26% Youth (15-19) 1% 250-499 10% Young Professionals (20-34) 14% 500+ 4% Professionals (35-64) 80% No answer 2% Older Adults (65+ 5% 2023 Town of Oro Valley Housing Survey Report Page 51 Table 8b: Business Owner/Employee Demographics Characteristic Owner n=51 Employee n=85 Gender Female 57% 62% Male 41% 35% Prefer not to answer 2% 2% Age 18 to 34 years 10% 20% 35 to 49 years 47% 32% 50 to 69 years 35% 43% 70+ years 8% 5% Annual HH income Less than $20,000 - 2% $20,000 to $39,999 4% 8% $40,000 to $59,999 8% 12% $60,000 to $79,999 6% 13% $80,000 to $99,999 14% 20% $100,000 to $149,999 18% 21% $150,000 or more 49% 24% Prefer not to answer 2% - Race Caucasian/White 82% 88% African American/Black 2% 1% Asian 2% 1% Two or more races 10% 4% Other 4% 6% Hispanic/Latino 2% 13% Type of Income Fixed income household 10% 7% Single income household 33% 51% Dual income household 57% 42% 2023 Town of Oro Valley Housing Survey Report Page 52 III. Current Housing Types and Occupancy A. Housing Types Survey Question Responses Q8. IF A BUSINESS OWNER: Based on your knowledge, what type of housing do most of the employees live in? 51 Q8. IF AN EMPLOYEE: What type of housing do you live in? 85 Three-quarters of employees (74%) reported living in a single-family home and similarly 69% of business owners responded that most of their employees live in a single -family home in or outside of Oro Valley. 69% 21% 10% 74% 10% 6% 8% 2% 0%20%40%60%80% Single-family home Apartment Townhome or duplex Condominium Manufactured home Other Employees' Housing Type Business Owners Employees 2023 Town of Oro Valley Housing Survey Report Page 53 B. Occupancy Survey Question Responses Q7. IF A BUSINESS OWNER: Based on your knowledge, do most of the employees rent or own (within or outside of Oro Valley)? 51 Q7. IF AN EMPLOYEE: Do you currently rent or own your home? 85 Whereas one-half of business owners who responded to the survey believed most of their employees own their homes (49%), two-thirds of employees surveyed said they currently own their home (67%). NOTE: employees who completed the survey may or may not work for the business owners who completed the survey. 49% 37% 2% <2% 10% 67% 28% 3% 1% 1% 0%20%40%60%80% Own Rent Do not own or pay rent Do not have a permanent home Don't know/Refused Employees' Home Ownership/Rental Status Business Owners Employees 2023 Town of Oro Valley Housing Survey Report Page 54 Living in Oro Valley Survey Question Business Owners Employees Q9. What percentage of your employees or coworkers do you estimate live in Oro Valley? 47 74 On average, business owners estimated that 44% of their employees live in Oro Valley and employees reported an average of 30% of their co-workers live in Oro Valley. Notably, 27% of business owners estimated that none of their employees live in Oro Valley and 30% estimated that all of them do. Employees were most likely to think that 1% to 40% live in Oro Valley (69%). Commute Time 27% 19% 6% 9% 9% 30% 7% 39% 30% 11% 11% 2% 0%10%20%30%40%50% 0% 1%-20% 21%-40% 41%-60% 61%-80% 81%-100% Estimated Percentage of Employees Living in Oro Valley Excludes Don't Know Business Owners (Avg. 44%) Employees (Avg. 31%) 2023 Town of Oro Valley Housing Survey Report Page 55 Survey Question Business Owners Employees Q10. What do you estimate is the average commute time for your employees or coworkers? 85 51 A slight majority of business owners (61%) and employees (65%) estimated the average commute time to be 30 minutes or less for employees and co -workers. Very few estimated a commute time of more than 45 minutes. 26% 35% 33% 6% 0% 20% 45% 22% 11% 2% 0%10%20%30%40%50% 0-10 minutes 11-30 minutes 30-45 minutes 46 minutes - 1 hour Over 1 hour Estimated Average Commute Time of Employees Business Owners Employees 2023 Town of Oro Valley Housing Survey Report Page 56 IV. Housing Costs and Attainability A. Housing Costs Survey Question Business Owners Employees Q15. According to the U.S. Census, an average mortgage in Oro Valley is $1,998/month and average rent is $1,352/ month. Based on this information and what employees earn, is housing in Oro Valley affordable? 85 51 One-half of the business owners and employees who responded to the survey do not feel housing in Oro Valley is affordable and selected the response that stated the average mortgage and rent is too high. While 27% of business owners gave a rating of “somewhat affordable” because employees could rent in OV but not afford to purchase a home, 20% of employees selected this response. In total, 24% of business owners and 32% of employees indicated they believe Oro Valley housing is affordable. 49% 27% 16% 8% 48% 20% 28% 4% 0%20%40%60% No - the average mortgage and rent is too high in OV Somewhat - many employees could rent in OV but could not afford a home Yes - many employees could or already own a home in OV Yes - many employees could or already rent in OV Housing Affordability in Oro Valley Business Owners Employees 2023 Town of Oro Valley Housing Survey Report Page 57 B. Barriers to Homeownership Survey Question Business Owners Employees Q16. What do you think are barriers to homeownership for employees? Multi-select from list. 85 51 When asked to select the barriers to homeownership for employees, business own ers and employees most often selected average home price, paying too much rent to save, and not having enough money for a down-payment. 53% 39% 25% 24% 22% 12% 6% 2% 2% 56% 38% 26% 15% 21% 7% 14% 7% 2% 0%20%40%60% Average home price Paying too much rent to save Not enough for a down payment Lack of housing supply High interest rates Qualifying for a mortgage Lack of housing choice No barriers experienced or known Other Barriers to Homeownership for Employees Business Owners Employees 2023 Town of Oro Valley Housing Survey Report Page 58 V. Housing Needs A. Perceptions of Housing in Oro Valley Survey Question Business Owners Employees Q11. Please provide your opinion on the following statements…. 51 79 A strong majority of both business owners (76%) and employees (89%) agreed affordable housing in Oro Valley is important. • High-density housing should be in areas with easy access to shops, services, and facilities and Oro Valley should provide more housing options for workers also garnered majority agreement (67% and 61% of owners agreed, and 65% and 67% of employees agreed). • The statement that received the lowest level of agreement was Oro Valley has a balanced housing mix that includes a wide range of types and prices (36% owners and 17% employees strongly agreed or agreed). 76% 67% 61% 53% 45% 36% 89% 65% 67% 43% 34% 17% 0%20%40%60%80%100% Affordable housing in Oro Valley is important. High-density housing should be in areas with easy access to shops, services, and facilities. Oro Valley should provide more housing options for workers (single-family homes, apartments, etc.) High-density housing should be located along arterials or major roadways. High-density housing is needed in Oro Valley. Oro Valley has a balanced housing mix that includes a wide range of types and prices. Agreement with Housing Statements Strongly Agree or Agree Among Those with an Opinion Business owners Employees 2023 Town of Oro Valley Housing Survey Report Page 59 Table 9a: Housing in Oro Valley Business Employer Detailed Ratings (excludes don’t know) Housing Attributes Strongly Agree Agree Neutral Disagree Strongly Disagree Affordable housing in Oro Valley is important. 44% 32% 18% 2% 4% High-density housing should be in areas with easy access to shops, services, and facilities. 26% 41% 21% 6% 6% Oro Valley should provide more housing options for workers (single-family homes, apartments, etc.) 35% 25% 22% 10% 8% High-density housing should be located along arterials or major roadways. 16% 37% 27% 10% 10% High-density housing is needed in Oro Valley. 25% 20% 18% 16% 22% Oro Valley has a balanced housing mix that includes a wide range of types and prices. 4% 32% 20% 22% 22% Table 9b: Housing in Oro Valley Employee Detailed Ratings (excludes don’t know) Housing Attributes Strongly Agree Agree Neutral Disagree Strongly Disagree Affordable housing in Oro Valley is important. 70% 19% 4% 1% 6% High-density housing should be in areas with easy access to shops, services, and facilities. 24% 41% 18% 7% 10% Oro Valley should provide more housing options for workers (single-family homes, apartments, etc.) 35% 32% 14% 6% 13% High-density housing should be located along arterials or major roadways. 9% 34% 31% 12% 14% High-density housing is needed in Oro Valley. 15% 19% 18% 21% 27% Oro Valley has a balanced housing mix that includes a wide range of types and prices. 6% 11% 21% 40% 22% 2023 Town of Oro Valley Housing Survey Report Page 60 B. Perceived Housing Challenges in Oro Valley Survey Question Business Owners Employees Q12a. Nationally, many businesses have been challenged with recruiting and retaining employees. Please rate how the common challenges listed below impacted your ability to recruit/retain employees. 51 NA When asked to rate how common challenges impact their ability to recruit and retain employees, Oro Valley business owners surveyed were most likely to feel the proximity to amenities and services impacts their ability to attract and keep employees (49% gave a rating of 4 or “5- very impactful”). Four in ten felt affordable housing options, adequately sized housing options, housing stock and/or commuting time have an impact on employee recruitment and retention (43%-39%). Very few rated a lack of bus stops/public transportation (18%) or lack of housing diversity (12%) as having an impact on recruiting and retaining staff. 16% 14% 8% 18% 18% 6% 12% 33% 29% 33% 21% 21% 12% 49% 43% 41% 39% 39% 18% 12% 0%20%40%60%80% Proximity of amenities and services (e.g., entertainment, stores, etc.) Lack of affordable housing options Lack of adequately sized housing options Lack of available housing stock Commuting time The lack of bus stops or public transportation Lack of diverse housing types (e.g., single-family homes, apartments, etc.) Impact of Housing Challenges on Recruiting/Retaining Employees Summary of 4/5 Ratings - 5 = Very Impactful Among Business Owners 5 - Very impactful 4 2023 Town of Oro Valley Housing Survey Report Page 61 Table 11: Housing Challenges Impacting Recruiting/Retaining Employees Business Owner Detailed Ratings (excludes don’t know) Housing Challenges 5 - Very impactful 4 3 2 1 – Not at all impactful Proximity of amenities and services (e.g., entertainment, stores, restaurants, etc.) 16% 33% 27% 10% 14% Lack of affordable housing options 14% 29% 23% 14% 20% Lack of adequately sized housing options 8% 33% 25% 10% 24% Lack of available housing stock 18% 21% 29% 8% 24% Commuting time 18% 21% 29% 18% 14% The lack of bus stops or public transportation 6% 12% 35% 6% 41% Lack of diverse housing types (e.g., single- family homes, apartments, condos, etc.) 12% - 55% 6% 27% 2023 Town of Oro Valley Housing Survey Report Page 62 Barriers to Living in Oro Valley Survey Question Business Owners Employees Q12b. Many cities face housing challenges that impact their workforce. Please rate how the common challenges listed below impact your decision to not live in OV. NA 85 When asked to rate how the following challenges impact their decision to not live in Oro Valley, non-resident employees were most likely to indicate a lack of affordable housing and/or lack of available housing stock as impacting their decision to not reside in Oro Valley (71% and 55%, respectively, gave a rating of 4 or “5- very impactful”). Respondents were least likely to rate a lack of bus stops/public transportation (25%) or lack of adequately sized housing options (20%) as having an impact on their decision not to live in Oro Valley. Table 12: Housing Challenges Impacting Choice to NOT live in Oro Valley Detailed Ratings (excludes don’t know) Housing Challenges 5 - Very impactful 4 3 2 1 Not at all impactful Lack of affordable housing options 39% 32% 12% 4% 13% Lack of available housing stock 25% 30% 24% 5% 16% Lack of diverse housing types (e.g., single- family homes, apartments, condos, etc.) 18% 23% 28% 8% 23% Proximity of amenities and services (e.g., entertainment, stores, restaurants, etc.) 16% 22% 26% 8% 28% The lack of bus stops or public transportation 8% 17% 25% 6% 44% Lack of adequately sized housing options 13% 7% 29% 31% 20% 39% 25% 18% 16% 8% 13% 32% 30% 23% 22% 17% 7% 71% 55% 41% 38% 25% 20% 0%20%40%60%80% Lack of affordable housing options Lack of available housing stock Lack of diverse housing types (e.g., single-family homes, apartments, etc.). Proximity to amenities and services (e.g., entertainment, stores, etc.) The lack of bus stops or public transportation Lack of adequately sized housing options Impact of Housing Challenges on Deciding NOT to Live in OV Summary of 4/5 Ratings - 5 = Very Impactful Among Non-resident Employees 5 - Very impactful 4 2023 Town of Oro Valley Housing Survey Report Page 63 Factors for Locating a Business in OV Survey Question Business Owners Employees Q13. FOR BUSINESS OWNERS ONLY: If applicable, please rank the following from least important to most important in your decision to locate your business in Oro Valley. 51 NA Of the five factors ranked, housing density/ population to support business within a 5-mile radius was most often rated as “important” to business owners in their decision to locate their business in Oro Valley (57% rated “very” or “somewhat” important). Just under half rated density/population to support business with a 1-mile radius and affordable housing for employees as important (both at 45% somewhat/very important). Rental options and available housing stock ranked the lowest in terms of importance (41% and 38%, respectively). 39% 27% 23% 27% 16% 18% 18% 22% 14% 22% 57% 45% 45% 41% 38% 0%20%40%60%80% Housing density/population to support my business within a 5-mile radius Housing density/population to support my business with a 1-mile radius Affordable housing for my employees Rental options for employees (e.g., apartments, townhomes, etc.) Available housing stock for employees Important Factors for Locating Business in OV Top-Two Ranking Among Business Owners Most important Somewhat 2023 Town of Oro Valley Housing Survey Report Page 64 Table 13: Important Factors for Locating Business in Oro Valley Detailed Rankings Housing Challenges Most important Somewhat Neutral Least important Housing density/population to support my business within a 5-mile radius 39% 18% 27% 16% Housing density/population to support my business with a 1-mile radius 27% 18% 33% 22% Affordable housing for my employees 23% 22% 33% 22% Rental options for employees (e.g., apartments, townhomes, etc.) 27% 14% 39% 20% Available housing stock for employees 16% 22% 43% 19% 2023 Town of Oro Valley Housing Survey Report Page 65 C. Types of Housing Needed in Oro Valley Survey Question Business Owners Employees Q18. What types of housing does Oro Valley need? (Rank each from not needed to most needed) 47 79 Business owners were most likely to rank single-family homes, condominiums, and apartments as a “high need” for Oro Valley (49%, 45% and 40%, respectively). Employees most often rated townhomes/duplexes and single-family homes as highly needed in Oro Valley (38% and 37% rated “high need”). As shown on the next page, mobile homes, manufactured homes, and tiny homes are most frequently rated as being a “low need” for Oro Valley by both business owners and employees, however employees see a greater need for these options than the business owners. 49% 45% 40% 35% 13% 11% 10% 6% 37% 29% 25% 38% 13% 28% 15% 12% 0%20%40%60%80% Single-family homes Condominiums Apartments Townhomes or duplexes Mobile homes / RV Parks Secondary residential units on an existing lot (e.g., living quarters for friends or extended… Tiny homes Manufactured homes Housing Needs in Oro Valley "High Need" Summary Among Business Owners/Employees with an Opinion Business owners Employees 2023 Town of Oro Valley Housing Survey Report Page 66 Table 14a: What Type of Housing Does OV Need Business Owner Detailed Ratings Housing Challenges High need Medium need Neutral Low need Single-family homes 49% 21% 13% 17% Condominiums 45% 21% 15% 19% Apartments 40% 19% 11% 30% Townhomes or duplexes 35% 35% 14% 16% Mobile homes / RV Parks 13% 11% 8% 68% Secondary residential units on an existing lot (e.g., living quarters for friends or extended family) 11% 41% 30% 18% Tiny homes 10% 10% 17% 63% Manufactured homes 6% 12% 15% 67% Table 14b: What Type of Housing Does OV Need Employee Detailed Ratings Housing Challenges High need Medium need Neutral Low need Townhomes or duplexes 38% 28% 15% 19% Single-family homes 37% 29% 20% 14% Condominiums 29% 20% 20% 31% Secondary residential units on an existing lot (e.g., living quarters for friends or extended family) 28% 19% 25% 28% Apartments 25% 19% 23% 33% Tiny homes 15% 17% 22% 46% Mobile homes / RV Parks 13% 13% 15% 59% Manufactured homes 12% 20% 19% 49% 2023 Town of Oro Valley Housing Survey Report Page 67 Role of Apartments Survey Question Business Owners Employees Q17. Focusing on apartments, (Strongly Disagree – Strongly Agree, no opinion), please rate the following statements: 51 85 Two-thirds to three-quarters of business owners and employees agreed with the statements: apartments provide amenities and services that appeal to employees and apartments provide transitional housing for employees. Business owners and employees were least likely to agree that apartments provided a housing size that appeals to employees (43% and 36%, respectively). 73% 67% 59% 53% 43% 67% 66% 48% 51% 36% 0%20%40%60%80%100% Apartments provide amenities and services that appeal to employees. Apartments provide transitional housing for employees. Apartments provide an affordable option for employees. Apartments provide a needed housing option for seasonal or short-term employees. Apartments provide a housing size that appeals to employees. Agreement with Apartment Statements Strongly Agree or Agree Among Those with an Opinion Business owners Employees 2023 Town of Oro Valley Housing Survey Report Page 68 Table 10a: Agreement with Apartment Statements Business Owner Detailed Ratings (excludes don’t know) Apartment Statements Strongly Agree Agree Neutral Disagree Strongly Disagree Apartments provide amenities and services that appeal to employees. 26% 47% 21% - 6% Apartments provide transitional housing for employees. 16% 51% 17% 6% 10% Apartments provide an affordable option for employees. 20% 39% 23% 8% 10% Apartments provide a needed housing option for seasonal or short-term employees. 24% 29% 29% 10% 8% Apartments provide a housing size that appeals to employees. 18% 25% 31% 20% 6% Table 10b: Agreement with Apartment Statements Employee Detailed Ratings (excludes don’t know) Apartment Statements Strongly Agree Agree Neutral Disagree Strongly Disagree Apartments provide amenities and services that appeal to employees. 13% 54% 20% 7% 6% Apartments provide transitional housing for employees. 17% 49% 18% 8% 8% Apartments provide an affordable option for employees. 13% 35% 18% 22% 12% Apartments provide a needed housing option for seasonal or short-term employees. 13% 38% 29% 8% 12% Apartments provide a housing size that appeals to employees. 7% 29% 34% 19% 11% 2023 Town of Oro Valley Housing Survey Report Page 69 High Density Residential Survey Question Business Owners Employees Q14. Would you or your business benefit from more high-density housing options in the area? (Strongly Disagree to Strongly Agree) 51 85 Nearly half of business owners (49%) and employees (48%) strongly agree or agree they or their business would benefit from high-density options. Business owners were more likely to strongly agree (24%) than were employees (11%). 24% 11% 25% 37% 20% 25% 8% 14% 23% 13% 0%20%40%60%80%100% Business owners Employees Personal or Business Benefits from High-Density Housing Options Strongly agree Agree Neither Disagree Strongly disagree 2023 Town of Oro Valley Housing Survey Report Page 70 VI. Other Housing Opinions Regarding Housing in Oro Valley Survey Question Business Owners Employees Q19. Is there any other information you would like to share about housing? 51 85 When asked if they had any additional comments about housing, most business owners (78%) and employees (65%) did not have anything to share. Concerns over affordable housing/rent and overcrowding/growth/infrastructure were the topics most frequently mentioned by both owners and employees. A breakdown of the individual responses in each category is provided in Appendix A. Table 15: Other Information Regarding Housing in Oro Valley Other Information about Housing Total n=136 Business owners n=51 Employees n=85 Affordable Housing/Rent 16% 10% 20% Overcrowding/Growth/Infrastructure 10% 10% 11% Community Negatives 4% 2% 6% Diversity/Low-income Housing 4% 2% 6% Community Positives 3% 2% 4% Government Involvement/Taxes/Politics 2% - 4% HOA's 1% - 1% Other 5% 2% 7% No Answer 70% 78% 65% 2023 Town of Oro Valley Housing Survey Report Page 71 Appendix A: Open-ended Responses Table A1: Resident Open-ended responses Other Information about Housing Phone n=401 Online N=1,211 Overcrowding/Growth/Infrastructure 21% 27% Against taller, high-density developments 8% 13% It’s getting overcrowded/too densely populated 8% 8% Don’t put low end housing into the community 2% 4% Water shortage 2% 4% Infrastructure can’t handle the amount of housing 1% 2% Affordable Housing/Rent 10% 6% Not affordable/too expensive 7% 3% Need better prices on apartments 1% <1% Middle class can’t afford housing 1% -- Down payments are too expensive 1% <1% Community Negatives 10% 11% Want more desert between subdivisions 4% 5% Too much traffic 3% 3% Need more recreation for families 1% 3% Need programs for working professionals 1% 1% Need to transition from retirement to younger community 1% 1% Community Positives 8% -- I love this area/satisfied 7% -- I like the marketplace development <1% Diversity/Low-income Housing 3% 3% Need more houses for young families 2% 1% Need more low-income housing <1% <1% Government Involvement/Taxes/Politics 3% 4% Need to address homelessness 1% <1% Don’t like how Oro Valley is following Tucson agenda 1% 1% Property taxes are too high 1% 1% Low Availability 1% <1% HOA's 1% 2% Restriction on Construction 1% -- Other 2% -- No Answer 53% 53% 2023 Town of Oro Valley Housing Survey Report Page 72 Table A2: Business Owner and Workforce Open-ended responses Other Information about Housing Total n=136 Business owners n=51 Employees n=85 Affordable Housing/Rent 16% 10% 20% Not affordable/too expensive 10% 6% 12% Rent is getting too high 3% 2% 4% Need better prices on apartments 2% - 4% More business accessible 1% 2% 1% Overcrowding/Growth/Infrastructure 10% 10% 11% Against taller, high-density developments 4% 4% 5% It’s getting overcrowded/too densely populated 3% 2% 4% Don’t put low end housing into the community 2% 4% 1% Water shortage 2% 2% 2% Community Negatives 4% 2% 6% Need more recreation for families 2% 2% 1% Decline in safety 1% 2% 1% No more storage facilities 1% - 2% Diversity/Low-income Housing 4% 2% 6% Need more variety of homes 3% - 5% Need more houses for young families 1% - 1% Need more low-income housing 1% 2% - Community Positives 3% 2% 4% I love this area/satisfied 3% 2% 4% Government Involvement/Taxes/Politics 2% - 4% Property taxes are too high 1% - 2% Need to address homelessness 1% - 1% HOA's 1% - 1% Other 5% 2% 7% No Answer 70% 78% 65% 2023 Town of Oro Valley Housing Survey Report Page 73 Appendix B: Questionnaires Oro Valley Housing Survey for Residents (Phone and Online) 1. Do you live in the Town of Oro Valley? • I live in Oro Valley full time • I live Oro Valley part time • I only work in Oro Valley – GUIDED TO ONLINE SURVEY AT WWW.OROVALLEYAZ.GOV AT THE BOTTOM OF THE HOMEPAGE UNDER FEATURED CONTENT. • I do not live or work in Oro Valley – THANK AND TERMINATE 2. What zip code do you live in? • 85755 • 85739 • 85737 • 85742 • 85704 • Other: THANK AND TERMINATE 3. How many years have you lived in Oro Valley? • Less than 1 year • 1-2 years • 3-5 years • 6-10 years • More than 10 years 4. What is your age? • Under 18 • 18 to 34 years old • 35 to 49 years old • 50 to 69 years old • 70 + years old • Prefer not to answer 5. What is your gender identity? • Female • Male • Non-binary • Prefer not to answer 2023 Town of Oro Valley Housing Survey Report Page 74 6. Please provide your level of agreement with the following statements by using a scale from 1 to 5 where 1 means you strongly disagree and 5 means you strongly agree with each statement (6: don’t know/no opinion:). INTERVIEWERS READ AND ROTATED LIST. THEY DID NOT READ: 6 for don’t know/no opinion. • Oro Valley should provide more housing options for residents, including single - family homes, apartments, condominiums, and townhomes. • Oro Valley has a balanced housing mix that includes a wide range of types and prices. • Housing that is financially attainable is important. • Owning my own home is important to me • Neighborhoods or housing developments need clean -up programs in Oro Valley. • More high-density housing, such as apartments or townhomes is needed in Oro Valley. • High-density housing, such as apartments or townhomes, can blend in with the character of surrounding areas through architecture design, landscaping, and appropriate building heights. • High-density housing, such as apartments or townhomes, should be located along arterials or major roadways. • High-density housing, such as apartments or townhomes, should be in areas with easy access to shops, services, and community facilities. • Apartments detract from the character of Oro Valley. 7. Many communities face the following housing challenges. Again, please provide your level of agreement with the following challenges as it applies to Oro Valley by using a scale from 1 to 5 where 1 means you strongly disagree and 5 means you strongly agree with each statement (DO NOT READ: 6 for don’t know/no opinion). INTERVIEWERS READ AND ROTATED LIST. THEY DID NOT READ: 6 for don’t know/no opinion. • Children who grow up here cannot afford to live in Oro Valley as adults. • There is a lack of financially attainable housing in Oro Valley for seniors, veterans, or persons with disabilities. • There is a lack of financially attainable housing in Oro Valley for teachers, police, first responders, retail or service employees, or entry level professionals. • There is a lack of adequately sized housing options for multi-generational living, such as living quarters for close relatives or extended family in Oro Valley • There is a lack of adequately sized housing options for those who are interested in down-sizing 8. Understanding all communities need rental options, please rate each housing type using the scale below. 2023 Town of Oro Valley Housing Survey Report Page 75 Online Survey: 4-point Scale: Not at all acceptable in OV, Neutral, Acceptable, Very acceptable in OV Phone Survey Wording: Please rate each housing type using a 1 to 5 scale where 1 means “not at all acceptable in OV” and 5 means” the option would be “very acceptable in OV”. (DO NOT READ: 6 for DK/No opinion) READ AND ROTATE LIST • Detached 1-2 story rental homes • Attached, 1-2 story rental homes (e.g., duplexes, townhomes) • 2-3 story rental apartments • 4-5 story rental apartments 9. What types of housing does Oro Valley need? For each type, please provide a rating . Online survey: 4-point Scale: Low Need in OV, Neutral, Medium Need in OV, High Need in OV. Phone Survey: For each type, please provide a rating using a 1 to 5 scale where 1 means this type of housing is a low need in Oro Valley and 5 means you believe this type of housing is a high need in Oro Valley. READ AND ROTATE LIST • Single-family homes • Townhomes or duplexes • Manufactured homes • Tiny homes • Secondary residential units on an existing lot (e.g., living quarters for friends or extended family) • Mobile homes / RV Parks • Apartments • Condominiums • None 10. Do you currently: • Own • Rent • Do not own or pay rent • Do not have a permanent home 11. Do you currently live with friends or extended family? • Yes 2023 Town of Oro Valley Housing Survey Report Page 76 • No 12. IF LIVE WITH FRIENDS OR FAMILY: What is the primary reason you live with friends or extended family, or they live with you? • Affordability of rent or a security deposit • Personal family reasons • Living here temporarily (e.g., on school breaks, transition) • Saving to purchase a home • Cannot find a place that meets their needs • Other: 13. Which best describes your current housing type in Oro Valley? • Single-family home • Apartment • Condominium • Townhome or duplex • Manufactured home • Other: 14. How would you rate your satisfaction with the physical condition of the properties in your neighborhood or housing development using a 1 to 5 scale where 1 means not at all satisfied and 5 means very satisfied? (6=DK) 15. If a member of your household has a disability, does the place where you live meet their needs? • Yes, modifications are not needed • Yes, we made modifications to fit their needs • No, modifications are needed • Not applicable, no one in household with a disability • Prefer not to answer 16. Please indicate how much of a concern housing cost is for you personally? INTERVIEWERS READ LIST. • Not concerning • Somewhat concerning • Very concerning 17. What did you experience, or do you think are barriers to homeownership? INTERVVIEWERS DID NOT DO NOT READ LIST • Paying too much rent to save 2023 Town of Oro Valley Housing Survey Report Page 77 • Not enough for a down payment • Average home price • Qualifying for a mortgage • High interest rates • Lack of housing supply • Lack of housing choice • No barriers experienced or known • Other: 18. How likely are you to leave Oro Valley due to housing cost? • Not likely • Somewhat likely • Very likely • Nearly certain • Not planning to move 19. Is there any other information you would like to share about housing? Demographics The following questions were optional for both phone and online survey participants. 20. Including yourself, how many people live in your household? • 1 • 2 • 3 • 4 • 5 • 6+ 21. IF 2+ in HH: Do you have any school-age children under the age of 18 in your home? • Yes • No 22. What neighborhood or development do you live in? 23. How long have you lived at your current residence? • Less than 6 months • 6-12 months • 1-2 years • 3-5 years • 6-10 years • More than 10 years 2023 Town of Oro Valley Housing Survey Report Page 78 24. Which option below describes your employment status? • full-time • part-time • retired • student • Business owner/self-employed • Not employed at this time 25. What is your highest level of education? • Less than 9th grade • 9th to 12th grade, no diploma • Highschool diploma or GED • Associate degree • Bachelor’s degree • Master’s degree or higher 26. Which of the following best describes your household? READ LIST AND ROTATE • Fixed income household • Single-income household • Dual income household 27. HISPANIC: Do you identify as being Hispanic, Latino, or of Spanish Origin? • Yes • No • Prefer not to answer 28. RACE: How would you best describe your race? • White • Black or African American • Asian • American Indian or Alaska Native • Native Hawaiian or other Pacific Islander • Prefer not to answer • Two or more races • Other 29. Was your annual household income before taxes last year: • Less than $20,000 • $20,000 to $39,999 • $40,000 to $59,999 • $60,000 to $79,999 2023 Town of Oro Valley Housing Survey Report Page 79 • $80,000 to $99,999 • $100,000 to $149,999 • More than $150,000 2023 Town of Oro Valley Housing Survey Report Page 80 Oro Valley Housing Online Survey for Business Owners and Workforce 1. Do you own a business in Oro Valley? • Yes, I own a business in Oro Valley • Yes, I own and work at a business in Oro Valley • No, but I work at a business in Oro Valley • If you also live in OV, please fill out the residential survey here: 2. How many years have you worked or operated a business in Oro Valley? • Less than 1 year • 1-2 years • 3-5 years • 6-10 years • More than 10 years 3. What is your highest level of education? • Highschool diploma or GED • Associate degree • Bachelor’s degree • Master’s degree or higher 4. What type of industry do you work or own a business in? • Construction or manufacturing • Retail, food, or personal services • Transportation or warehousing • Finance or insurance • Real estate • Professional, scientific, or technical services • Education • Health care or first responders • Arts or entertainment • Public administration • Military • Other: 5. How many people are employed where you work or at the business you own? • Fewer than 5 • 5-9 • 10-19 • 20-49 2023 Town of Oro Valley Housing Survey Report Page 81 • 50-99 • 100-249 • 250 -499 • 500+ 6. What age group describes most of the employees? • Youth (16-19) • Young Professionals (20-34) • Professionals (35-64) • Older Adults (65+) 7. A. IF A BUSINESS OWNER: Based on your knowledge, do most of the employees rent or own (within or outside of Oro Valley)? a. Rent b. Own c. I do not know B. IF AN EMPLOYEE: Do you currently rent or own your home? a. Rent b. Own 8. A. IF A BUSINESS OWNER: Based on your knowledge, what type of housing do most of the employees live in? a. Single-family home b. Apartment c. Condominium d. Townhome or duplex e. Manufactured home f. I do not know. B. IF AN EMPLOYEE: What type of housing do you live in? a. Single-family home b. Apartment c. Condominium d. Townhome or duplex e. Manufactured home f. Other: 9. What percentage of your employees or coworkers do you estimate live in Oro Valley? 2023 Town of Oro Valley Housing Survey Report Page 82 10. What do you estimate is the average commute time for your employees or coworkers? • 0-10 min • 11- 20 min • 30-45 min • 46-1 hour • Over an hour 11. Please provide your opinion on the following statements (Strongly disagree, disagree, neither disagree nor agree, agree, strongly agree, no opinion). • Oro Valley should provide more housing options for workers, including single -family homes, apartments, condominiums, and townhomes. • Oro Valley has a balanced housing mix that includes a wide range of types and prices. • Affordable housing in Oro Valley is important • High-density housing is needed in Oro Valley. • Higher-density housing should be located along arterials or major roadways. • Higher-density housing should be in areas with easy access to support shops, services, and community facilities. 12. A. FOR BUSINESS OWNERS: Nationally, many businesses have been challenged with recruiting and retaining employees. Please rate how the common challenges listed below impacted your ability to recruit/retain employees. (Not impactful, Somewhat Impactful, Very Impactful, No opinion) • Commuting time • The lack of bus stops or public transportation • Lack of affordable housing options • Lack of adequately sized housing options • Lack of diverse housing types (e.g., single-family homes, apartments, condominiums, townhomes). • Lack of available housing stock • Lack of amenities and services (e.g., entertainment, stores, restaurants, etc.) B. FOR EMPLOYEES: Many cities face housing challenges that impact their workforce. Please rate how the common challenges listed below impact your decision to not live in OV. (Not impactful, Somewhat Impactful, Very Impactful, No opinion) • The lack of bus stops or public transportation • Lack of affordable housing options • Lack of adequately sized housing options 2023 Town of Oro Valley Housing Survey Report Page 83 • Lack of diverse housing types (e.g., single-family homes, apartments, condominiums, townhomes). • Lack of available housing stock • Lack of amenities and services (e.g., entertainment, stores, restaurants, etc.) 13. FOR BUSINESS OWNERS ONLY: If applicable, please rank the following from least important to most important in your decision to locate your business in Oro Valley. • Housing density/population to support my business with a 1 -mile radius • Housing density/population to support my business within a 5-mile radius • Available housing stock for employees • Affordable housing for my employees • Rental options (e.g., apartments, townhomes, single-family rental homes) for employees 14. Would you or your business benefit from more high-density housing options in the area? (Strongly Disagree to Strongly Agree) 15. According to the U.S. Census, an average mortgage in Oro Valley is $1,998/month and average rent is $1,352/ month. Based on this information and what employees earn, is housing in Oro Valley affordable? a. Yes – many employees could or already own a home in Oro Valley b. Yes – many employees could or already rent in Oro Valley c. Somewhat – many employees could rent in Oro Valley but could not afford a home d. No- the average mortgage and rent is too high in Oro Valley 16. What do you think are barriers to homeownership for employees? • Paying too much rent to save • Not enough for a down payment, • Average home price, • Qualifying for a mortgage, • High interest rates • No barriers experienced or known • Other: 17. Focusing on apartments, (Strongly Disagree – Strongly Agree, no opinion), please rate the following statements: • Apartments provide an affordable option for employees. • Apartments provide transitional housing for employees. • Apartments provide amenities and services that appeal to employees. 2023 Town of Oro Valley Housing Survey Report Page 84 • Apartments provide a housing size that appeals to employees. • Apartments provide a needed housing option for seasonal or short-term employees. 18. What types of housing does Oro Valley need? (Rank each from not needed to most needed) • Single-family homes • Townhomes or duplexes • Manufactured homes • Tiny homes • Secondary residential units on an existing lot (e.g., granny flats, mother in-law suites) • RV Parks • Apartments • Condominiums 19. Is there any other information you would like to share about housing?