Majority Leaders Roundtable on Jobs

1
Majority Leaders Roundtable on Jobs

• Housing the Workforce
• December 7, 2009
• Partnership for Strong Communities
• Diane Randall, Executive Director

2
Troubling Trends

• Alarming Exodus
• Since 1990, Connecticut has lost more
  25-34-year-old workforce than any state in the
  nation.

WORKERS(aka consumers, taxpayers, innovators)
EMPLOYERS
ECONOMIC ACTIVITY
CONSUMER SPENDING
TAX REVENUES
3
Troubling Trends

• Pratt Whitney moves 1,000 jobs from Cheshire,
  CT to Columbus, Georgia.

Pfizer looked to consolidate RD operations in
Southeastern Connecticut by moving 1,000 workers
here from Michigan. It was unable to convince
more than 600 to move because of higher housing
costs.
4
Troubling Trends
Demographic Danger
The retired population will boom, while young
working population will remain flat.
Projected Population Changes in Connecticut, by
Age(based on current trends)
Data CT Office of Policy Management. Report
to Appropriations and Finance Committees. An Act
Concerning Fiscal Accountability of State
Government. November 15, 2008.
5
Troubling Trends
Demographic Danger
Ratio of Workers to Retirees(based on current
trends)
Data CT Office of Policy Management. Report
to Appropriations and Finance Committees. An Act
Concerning Fiscal Accountability of State
Government. November 15, 2008.
6
Housing Big Part of A Workers Budget

• Burdened 26 of Connecticut households earn
  less than 80 of median income and spend more
  than 30 of their pay on housing.

Severely Burdened 24 of renters earn less
than 50 of median income and spend more than
half of their pay on housing.
Out of Reach The average pay earned by329 of
695 CT occupations is less than the states
21.60/hour housing wage - the pay needed to
afford a 2BR apartment.
7
Housing Supply Problems Abound
2000 - 65.2 of CT homes valued under 200K 2008
- 19.8 of CT homes valued under 200K (U.S.
Census)
Since 2006-07 price peak, median sales price
decline 30 National 19 Connecticut
Only 31 of 169 of CT municipalities have more
than 10 affordable housing stock under DECD
standards.

• CT is 47th among the states in housing units
  built per capita, since 2000. Most new housing
• 55 retirement homes
• 4- and 5-bedroom single-family homes
• fewer affordable rentals or modest starter homes

4,500 existing affordable rental units will have
their affordability expire unless preserved in
the next 6 years.
8
Housing Supply Problems Abound
2000 - 65.2 of CT homes valued under 200K 2008
- 19.8 of CT homes valued under 200K (U.S.
Census)
Since 2006-07 price peak, median sales price
decline 30 National 19 Connecticut
Only 31 of 169 of CT municipalities have more
than 10 affordable housing stock under DECD
standards.

• CT is 47th among the states in housing units
  built per capita, since 2000. Most new housing
• 55 retirement homes
• 4- and 5-bedroom single-family homes
• fewer affordable rentals or modest starter homes

4,500 existing affordable rental units will have
their affordability expire unless preserved in
the next 6 years.
9
Housing Supply Problems Abound
2000 - 65.2 of CT homes valued under 200K 2008
- 19.8 of CT homes valued under 200K (U.S.
Census)
Since 2006-07 price peak, median sales price
decline 30 National 19 Connecticut
Only 31 of 169 of CT municipalities have more
than 10 affordable housing stock under DECD
standards.

• CT is 47th among the states in housing units
  built per capita, since 2000. Most new housing
• 55 retirement homes
• 4- and 5-bedroom single-family homes
• fewer affordable rentals or modest starter homes

4,500 existing affordable rental units will have
their affordability expire unless preserved in
the next 6 years.
10
Housing Supply Problems Abound
2000 - 65.2 of CT homes valued under 200K 2008
- 19.8 of CT homes valued under 200K (U.S.
Census)
Since 2006-07 price peak, median sales price
decline 30 National 19 Connecticut
Only 31 of 169 of CT municipalities have more
than 10 affordable housing stock under DECD
standards.

• CT is 47th among the states in housing units
  built per capita, since 2000. Most new housing
• 55 retirement homes
• 4- and 5-bedroom single-family homes
• fewer affordable rentals or modest starter homes

4,500 existing affordable rental units will have
their affordability expire unless preserved in
the next 6 years.
11
Housing Supply Problems Abound
2000 - 65.2 of CT homes valued under 200K 2008
- 19.8 of CT homes valued under 200K (U.S.
Census)
Since 2006-07 price peak, median sales price
decline 30 National 19 Connecticut
Only 31 of 169 of CT municipalities have more
than 10 affordable housing stock under DECD
standards.

• CT is 47th among the states in housing units
  built per capita, since 2000. Most new housing
• 55 retirement homes
• 4- and 5-bedroom single-family homes
• fewer affordable rentals or modest starter homes

4,500 existing affordable rental units will have
their affordability expire unless preserved in
the next 6 years.
12
Labor Supply Challenge for Towns

• More than 100 municipalities rely on volunteer
  firefighters. Without affordable housing, town
  will need career departments.

Municipalities must recruit police, teachers,
town hall staff and other workers from distant
towns.
43 of our public school teachers are age50 or
over. In the next decade, most will be replaced
by younger teachers with lower salaries to afford
housing in the district.
13
What Can We Do?
14
What Can We Do?
Start with housing

• AFFORDABLE
• attractive, well built
• compact
• mixed-income
• mixed-use

15
What Can We Do?

• When housing is affordable, workers are able to
  live here

WORKERS(aka consumers, taxpayers, innovators)
16
What Can We Do?

• Employers locate where they find talented workers
  they can afford to hire (i.e. who are not
  strapped by high housing costs)

WORKERS(aka consumers, taxpayers, innovators)
EMPLOYERS
17
What Can We Do?

• New workers (who otherwise would live
  elsewhere)spend their earnings, which circulate
  the economy. Businesses capture this spending
  best within walking distance of housing.

WORKERS(aka consumers, taxpayers, innovators)
EMPLOYERS
CONSUMER SPENDING
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What Can We Do?

• Working, producing, selling, buying
• More fluidity to the economy.

WORKERS(aka consumers, taxpayers, innovators)
EMPLOYERS
CONSUMER SPENDING
ECONOMIC ACTIVITY
19
What Can We Do?

• More population (e.g. workers) and stronger
  economy result in greater tax revenue at state
  and local levels.

WORKERS(aka consumers, taxpayers, innovators)
EMPLOYERS
CONSUMER SPENDING
ECONOMIC ACTIVITY
TAX REVENUES
20
What Can We Do?

• Promote housing affordability as quality of life
  that attracts and retains workforce.

• Nurture compact, mixed-use places where
  households of all incomes and sizes can live.
  Walkable. Transit. Stores. Restaurants.
  Jobs.

• In nationwide marketing effort to attract younger
  workers, feature availability of affordable
  housing in interesting, vibrant neighborhoods.

21
What Can We Do?

• Advance green housing development and
  preservation practices that reduce energy demand
  and create sustainable homes.

• Lower-income residents most benefit from utility
  savings.
• Poorly-maintained substandard housing is the most
  energy-wasteful, but can most benefit from unit
  improvements.
• Combine with job training efforts in this growing
  field.
• Multifamily housing naturally increases energy
  efficiency. Compact, walkable, mixed-use,
  transit-served housing reduces energy on
  traveling.

22
What Can We Do?
Housing, transportation and energy are three of
the largest items in most household budgets.
Create more affordable, energy efficient housing
accessible to transit.
Make all three more affordable,
simultaneously.More money in family pocketbooks.
More money can be spend on other needs, and
circulate the economy.
23
What Can We Do?
Streamline land use regulations and permitting
processes at state and local levels.
Quicker, more predictable land use decisions
allow developers to make better decisions and
finish developments quicker. This can help
relieve our undersupply of housing.
24
What Can We Do?
Coordinate existing state spending on
infrastructure, transportation, economic
development and grant programs to towns, to
maximize success of mixed-use development and
neighborhood revitalization.
25
HOMEConnecticut

• Innovative approach to gain municipal support for
  affordable and modest cost housing. Voluntary.
• Promotes housing density near transit and
  existing infrastructure.
• Allows town to determine location and design
  parameters.

26
HOMEConnecticut

• 35 towns assessing opportunities for development
  through planning grants.
• 2 towns have submitted applications for Incentive
  Housing Zones.
• 15 towns scheduled to receive planning grants.

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Housing Solutions, Strong Communities Ending
Homelessness. Promoting Affordable Housing.
Fostering Vibrant Communities.
www.ctpartnershiphousing.com
www.HOMEConnecticut.org
www.LyceumCenter.org
www.CTReachingHome.org
Diane Randall, DirectorPartnership for Strong
Communitiesdiane_at_ctpartnershiphousing.com860/244
-0066