Will the housing crisis ever get better? If so, when?

Event Details

The housing industry is currently facing a myriad of challenges in meeting the demand for housing, particularly affordable new homes. Factors such as mortgage rates, limited buildable land, high permitting fees, labor costs, increased material prices, and new regulations for green energy products have significantly increased the cost of buying a home. Despite the complexity of these issues, there is no single solution that can address them all.

We are excited to invite you to a presentation featuring a distinguished panel of speakers who will shed light on the initiatives being taken at the local, county, and statewide levels to boost the production of new housing units. Governor Tina Kotek has prioritized this issue within her administration and has established an Advisory Group to provide recommendations on streamlining processes and potentially reducing costs for homebuyers. This event will offer valuable insights into the efforts being made to tackle the current housing challenges and create a more sustainable housing market. Join us and be part of the conversation for a brighter future in the housing industry.

Presenters:

Christine Lewis, Metro Council, District 2
Justin Wood, Owner of Fish Construction NW, Inc.
Preston Korst, Directory of Policy & Government Affairs at Home Builders Association of Metro Portland

Presentation Summary

The event “Will the Housing Crisis Ever Get Better? If So, When?” hosted by the Oregon City Business Alliance, addressed the multifaceted challenges faced by the housing industry. The panel included Christine Lewis from Metro Council, Justin Wood from Fish Construction NW, Inc., and Preston Korst from Home Builders Association of Metro Portland. They discussed the impacts of high mortgage rates, limited buildable land, high permitting fees, labor costs, increased material prices, and new green energy regulations on housing affordability and availability.

Christine Lewis highlighted Metro’s achievements in affordable housing through the 2018 bond, which exceeded its goal by promising 4671 homes. She also discussed the supportive housing services initiative and the need for continuous investment in homeless services. She stressed the importance of supportive housing and the potential of new funding measures to expand affordable housing.

Justin Wood focused on the challenges of building homes for first-time buyers and the middle-income segment. He elaborated on the recommendations from the Governor’s Housing Task Force, which include utilizing state-controlled lands for housing, providing infrastructure resources to cities, expediting urban growth boundary expansions, and addressing wetlands and brownfields for housing production.

Preston Korst provided an overview of the housing crisis, emphasizing the disparity between income and housing prices. He presented data showing the median listing price and the ratio of household income to housing costs. Korst discussed policy priorities like middle housing, permitting improvements, workforce housing, and land availability, along with the challenges builders face, such as regulatory hurdles and infrastructure costs.

Q&A Highlights

Q1: How can cities better manage the costs associated with infrastructure for new housing developments?

• Christine Lewis: Highlighted the need for collaborative funding strategies and potential state-level support to alleviate the burden on cities.
• Justin Wood: Emphasized the importance of state assistance in providing alternative funding sources for infrastructure to reduce reliance on high impact fees.

Q2: What are the primary barriers to increasing the supply of middle-income housing?

• Justin Wood: Pointed out the high cost of land, permitting fees, and the lack of subsidies for middle-income housing compared to low-income housing.
• Preston Korst: Discussed the regulatory complexities and the need for streamlined processes to encourage the development of middle-income housing.

Q3: How can the state address workforce shortages in the construction industry?

• Justin Wood: Suggested enhancing training programs and creating incentives for younger workers to enter the construction trades.
• Preston Korst: Mentioned partnerships with community colleges and unions to bolster workforce training and attract underrepresented groups into the construction industry.

Q4: What measures are being taken to improve the efficiency of the permitting process?

• Christine Lewis: Highlighted ongoing efforts to streamline permitting at the local level and the importance of clear and objective standards.
• Justin Wood: Advocated for state-level guidelines to assist cities in adopting more efficient permitting processes and reducing delays.

Q5: How can the community support the development of affordable housing in their areas?

• Christine Lewis: Encouraged community engagement and support for local housing projects, emphasizing the benefits of diverse housing options.
• Preston Korst: Stressed the need for public awareness and advocacy for policies that facilitate affordable housing development.

Key Takeaways

• Affordable Housing Bond Success: Christine Lewis reported that the 2018 affordable housing bond exceeded its goal, with 4671 homes expected to be built, surpassing the initial promise of 3900 homes.
• Supportive Housing Services: Lewis emphasized the importance of supportive housing services, which combine housing with wraparound services to help individuals move from homelessness to stability.
• Need for Continuous Investment: Both Lewis and Wood stressed the need for continuous investment in affordable housing and homeless services to maintain progress and address the growing demand.
• Challenges for Middle-Income Housing: Justin Wood highlighted the lack of subsidies and high costs as significant barriers to developing housing for middle-income families, who often fall through the cracks of housing assistance programs.
• Infrastructure Costs: High infrastructure costs, funded by impact fees and system development charges, were identified as major hurdles for housing development, requiring alternative funding solutions.
• Regulatory Hurdles: Complex and inconsistent permitting processes slow down housing projects and increase costs. Streamlined and clear regulations are needed to expedite development.
• Urban Growth Boundary (UGB) Expansions: The importance of UGB expansions to provide more land for housing was discussed, with Sherwood being the only city to propose an expansion this cycle.
• State-Controlled Lands for Housing: Utilizing underperforming state-controlled lands for housing production was recommended to increase the availability of buildable land.
• Workforce Shortages: The construction industry faces significant workforce shortages, with an aging workforce and insufficient new entrants. Enhanced training programs and incentives are necessary to attract younger workers.
• Middle Housing: Policies promoting middle housing (duplexes, triplexes, quadplexes, and cottage clusters) are gaining traction, especially in cities like Portland and Gresham, to increase housing density and affordability.
• Wetlands and Brownfields: Addressing regulatory challenges related to wetlands and brownfields is crucial for unlocking more land for housing development.
• Funding for Infrastructure: The state’s creation of an infrastructure fund aims to support cities in financing the necessary infrastructure for new housing developments.
• Housing Production Goals: Governor Kotek’s ambitious goal of 36,000 new housing units per year highlights the scale of the housing crisis and the need for drastic measures to increase production.
• Community Engagement: Public support and engagement are essential for the success of affordable housing projects, with community advocacy influencing policy decisions.
• Economic Impact of Housing: The housing crisis affects not only individuals but also the broader economy, as high housing costs and limited availability hinder economic growth and stability.