Supporting Documents (Data and Analysis) - Satellite Beach

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