Supporting Documents (Data and Analysis) - Satellite Beach
Supporting Documents (Data and Analysis) - Satellite Beach
Supporting Documents (Data and Analysis) - Satellite Beach
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The figures in Table 3-8 have been derived by dividing the population for each period by the<br />
average household size in 2007 to arrive at the number of dwelling units needed. The mix of<br />
dwelling units needed is assumed to be the same as the relationship between single family <strong>and</strong><br />
multi-family building permits issued during the period 2003 – 2008 in the City.<br />
Tables 3-9 through 3-16 are additional housing characteristics in the City of <strong>Satellite</strong> <strong>Beach</strong>, such<br />
as Gross Rent, Value of Units, Cost Burden, <strong>and</strong> Monthly Owner Costs. Table 3-11 shows that<br />
35.4% of renter occupied households spend 35% or more of their income on rent <strong>and</strong> Table 3-13<br />
shows that 13.2% of owner occupied households spend 35% or more of their income on housing.<br />
Table 3-14 below shows that out of 4,459 households, 969 (22%) spend 30% or more of their<br />
income for housing <strong>and</strong> 425 (10%) pay 50% or more of their income for housing. These figures<br />
indicate a need for affordable housing in <strong>Satellite</strong> <strong>Beach</strong>.<br />
Affordable Housing Summary<br />
In the five year period from 2000 to 2005, median household income within <strong>Satellite</strong> <strong>Beach</strong><br />
increased 7.4% from $55,571 to $60,0001. However, in the same five year period, the median<br />
housing costs increased 71.3% from $116,650 to $407,000 for condos, <strong>and</strong> 60.5% from $122,400<br />
to $310,000 for single family residences. This increase in housing cost is due to a number of<br />
factors including: the nearness to build out within the City, continuing development pressures,<br />
along with the scarcity of undeveloped l<strong>and</strong> within the City, <strong>and</strong> the higher l<strong>and</strong> values<br />
commonly associated with an oceanfront community; all of which has contributed to higher l<strong>and</strong><br />
values which are reflected in the cost of residential units within the City. Table 3-18 indicates the<br />
increasing median housing cost in <strong>Satellite</strong> <strong>Beach</strong> from 1997 to 2007.<br />
The dramatic increase of median housing costs has had a significant impact on moderate-income<br />
families trying to find affordable new or used homes in <strong>Satellite</strong> <strong>Beach</strong> by reducing the supply of<br />
affordable workforce housing within the City. To reasonably afford a single family house at the<br />
median cost of $310,000 would require an annual household salary of approximately $93,000.<br />
Federal housing program guidelines typically require that housing costs should not exceed 30%<br />
of a households’ income to be considered affordable.<br />
However, from 2004 to 2005 Florida saw record housing price increases in excess of 25% per<br />
year. This trend is certainly evidenced by the 26% <strong>and</strong> 21% increases in <strong>Satellite</strong> <strong>Beach</strong> single<br />
family housing from ’03 to ’04 <strong>and</strong> ’04 to ’05 respectively. This trend reached its peak in 2005,<br />
<strong>and</strong> then started deflating in 2006, <strong>and</strong> accelerating ever since. By the 4 th quarter of 2007, the<br />
median housing price in the City went from $310,000 to $262,000, a 15.5% decrease. This 15%<br />
reduction in median house values could then make it affordable for an annual household income<br />
of $78,600 to purchase the same house that only 18 months prior was out of range in terms of<br />
affordability. This is still out of the affordability range for most “work force” salaries; however, it<br />
is considerably closer than it was prior to the housing price decline.<br />
Affordability of housing also extends to monthly rents paid. The median rent paid by <strong>Satellite</strong><br />
<strong>Beach</strong> households in 2000 was $791 per month, compared to a statewide median rent of $641.<br />
1 www.dataplace.org & www.city-data.com<br />
Housing Element<br />
<strong>Data</strong> <strong>and</strong> <strong>Analysis</strong> 3-4