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

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PLANNING CONTEXT HOUSING SUPPLY Housing Vacancy An adequate supply of housing is essential to maintaining adequate choices for residents, moderating housing prices, and encouraging the normal maintenance of properties. This is a delicate balance that must be maintained. Low vacancy rates result in price and rent escalation, while excess vacancy rates result in price depreciation, rent declines, and deferred maintenance. Although market forces are beyond the control of any one city, maintaining an optimal balance of housing supply and demand is a desirable goal. Although different measures exist for defining the optimal balance of housing supply and demand, the building industry assumes that vacancy rates of 1.5 to 2.0 percent for ownership units and 5 to 6 percent for rental housing are optimal and offer a variety of choices for residents. Based on the 2010 Census data, the Citywide housing vacancy rate is 4.8 percent. The significant increase in foreclosures and the uncertain credit market have resulted in an increase in vacancy rates that have dampened the market. Housing Size Chart 9 compares the percentage of renter and owner households with the percentage of appropriately sized units for renters and owners by family size. The size of units available for homeowners matches the size of households. The same is general true for renter households, with the exception of large - family households. For example, there is an abundance of studio and one - bedroom rental units, but only 30 percent of the renter households have one or two members. Moreover, 38 percent of all families who rent have five or more members, but only 22 percent of rented apartments and single- family homes available have three or more bedrooms. This translates into a shortage of 5,940 large family rental units. Owned Units Rented Units 60% 60% 40% 40% 20% 20% 0% —M _ 0% Person Person Person Person Person Person Percentage of homeowners Percentage of renter households Percentage of owned housing Percentage of rented housing CITY OF SANTA ANA GENERAL PLAN HOUSING ELEMENT 17 Chart 9: Access to Housing Stock by Tenure Although there is a balance of ownership units, the city has an excess supply of smaller rental units and a shortage of large rental units with three or more bedrooms. Source: U.S. Census Bureau, 2007 -2011 American Community Survey.