2014-006 - Santa Ana General Plan Housing Element and Public Safety Element Updates

Home Browse Search

Apartment Project in Santa Ana Residential Care Facility 72% 68% 54% 60% 56% 52% 48% 44% 40% HOUSING NEEDS HOUSING TENURE The American dream is often represented by homeownership, as this can provide financial independence, economic stability, and personal safety. Home investment, pride in homeownership, and the physical presence of homeowners are perceived to contribute to neighborhood quality and stability. The 2010 Census reported 73,174 occupied housing units, of which 47 percent (34,756) were owner occupied. This is a lower homeownership rate than for the county at large (59 percent). Homeownership is a long -term financial and personal investment. Historically, homeownership was reserved for those who accrued sufficient wealth to meet large down payment requirements and obtain long -term mortgage loans. Federal housing and banking policies in the 1950s expanded homeownership opportunities to a much larger portion of society particularly the working and middle class. The national homeownership rate surpassed 60 percent by 1960 and has remained between 64 and 68 percent since (see Chart A -14). 2013 In the 1990s, a deregulated lending environment improved access to home- ownership by allowing less qualification and down payment requirements. Creative loans, such as short -term adjustable rate mortgages (ARMs), became the norm and allowed previously unqualified buyers to buy a home. However, the economy receded in 2008 and housing prices fell dramatically. As ARMs readjusted, many homeowners found themselves unable to afford their higher payments and could only sell their home at a significantly lower price. As a result, many homeowners face the possibility of foreclosure. 1930 '50 '70 '90 2010 Chart A -14: Homeownership Trend Homeownership rates boomed after the end of WW1, passing 60 percent by 1960. While the rate peaked at 69 percent in 2004, the recent subprime lending crisis has decrease national homeownership rates to a historical average of 65 percent. Source: U.S. Census Bureau, 2013 A recovering economy and stringent mortgage lending standards from 2007 to 2010 have led to an increased preference for renting. The 2010 Census reported that 53 percent of occupied housing units (38,418 households) were rented in Santa Ana. Growth in renter households in 2010 outpaced both the construction of rental units and the conversion of single - family homes to rental units. The City recognizes the importance of a range of rental opportunities to meet the varied lifestyles of individuals and families in the community and propose policies to support increasing the supply of quality rental housing opportunities in the City. CITY OF SANTA ANA GENERAL PLAN HOUSING ELEMENT