State of Affordable Homes in Orange County

Cesar Covarrubias, Executive DirectorThe Kennedy Commission

March 31, 2014

Mission: Working for systemic change resulting in the production of homes affordable to Orange County’s extremely low-income households

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2003 2005 2010 2015 2020 2025 2030 2035

Population Employment Housing

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Population, Employment and Housing Orange County, California

2000- 2035

Source: Center for Demographic Research, California State University Fullerton, Orange County Projections, 2006.

Homes

Wages for Occupations with the Most Job OpeningsOrange County, 2010 - 2020

Sources: 2010-2020 Occupations With the Most Job Openings, Santa Ana-Anaheim-Irvine Metro. Division, Employment Development Dept., Nov. 20, 2012. 2014 Out of Reach, National Low Income Housing Coalition, 2014.

Minimum Wage = $8.00/hr.

Housing Wage = $31.62/hr. for 2-bedroom apt.

Orange County Income Limits for 2014 Affordability Defined

Income Definitions

% of Median Income Limits for One

Person HH

Income Limits for Four

Person HH

Affordable Monthly Rent

for 4 Person HH

Extremely Low

30% $20,250 $28,900 $723

Very Low 50% $33,750 $48,150 $1,204

Low 80% $53,950 $77,050 $1,926

Moderate 100% $61,050 $87,200 $2,180

Above Moderate

120% $73,250 $104,650 $2,616

Source: California Department of Housing and Community Development, 2014.

Orange County Area Median Income: $87,200

2014 Facts for 2-Bedroom FMR in Orange County

Fair Market Rent (FMR) $1,644

Annual income needed $65,760

Housing wage $31.62

Full time jobs needed at minimum wage 4

Work hours per week needed at minimum wage 158

Percent of renters unable to afford FMR 60%

Rent affordable to SSI recipient $263

Orange County is among the top 10 least affordable metropolitan markets in the nation!

Source: 2014 Out of Reach, National Low Income Housing Coalition, 2014.

Availability of Affordable Homes in O.C.

2013: Number of constructed units* 427

2014: Number of units under construction* 537

Shortfall of homes affordable and available to extremely low-income renters**

70,125

Affordable & available homes per 100 extremely low-income renters**

18

2013: Local rent increase for large apartment complexes*** 4.9%

Sources: * New Construction of Affordable Homes, Kennedy Commission, March 2014. ** How California’s Housing Market is Failing to Meet the Needs of Low-Income Families, California Housing Partnership Corporation, February 2014. *** Apartment Rent Up in All O.C. Cities, Orange County Register, Oct. 2013.

Questions?

Cesar Covarrubias, Executive DirectorThe Kennedy Commission

(949) 250-0909cesarc@kennedycommission.org