Home Construction Heads Dramatically Different Ways
By Anne Scheck
The recent departure of Ken Day from the Independence City Council looks nothing short of ironic. Upon his exit, Mr. Day lamented the lack of city housing stock, noting that, these days, multi-family housing seems to be springing up faster than traditional single-family homes. As if on cue, a man appeared on Mr. Day’s doorstep a few weeks ago. He was seeking a new home. The curb appeal of Mr. Day’s house drew him to the front porch."He was looking for a place like ours," explained Mr. Day. After a quick tour, the potential buyer asked if he could return with his wife. "She came in, looked it over – and now we’re in escrow," Mr. Day said. Next stop is the sunny Southwest. "We’re off to Arizona,” he said.
Strong economic recovery has pushed western Oregon into one of the fastest-growing places in the nation – but, in terms of construction, it’s a house divided. Many areas are experiencing a building boom. However, it’s split between construction of multiple-unit housing, like apartments, and houses for higher-end buyers, including vacation homes, according to a recent statewide economic analysis. Across the state, housing shortages are of such “critical importance for cities” that a survey on it is underway by the League of Oregon Cities. Nearly 30 towns – from Salem to Siletz – have responded.
One reason for concern: rents are creeping up for those who cannot clinch financing for a new home, which is proving more costly than ever to build for several reasons.
“I was told (multi-units) are preferred because they are easier and less expensive to service," Mr. Day said in a recent interview. Multiple-family housing requires less infrastructure: sewage-and-water hook-ups, for example, take less of a network for connecting pipes. But “we are a bedroom community here – and a nice one,” Mr. Day stressed. “Why not embrace that?"
City Manager David Clyne countered that “diversity of housing choices is very important to the City of Independence. ”The issue is “much more complicated than the number of pipelines needed to serve customers,” he added.
In fact, housing subdivisions in Independence are planned for the southwest area of the city. The “Liberty Subdivision” is scheduled for nearly 100 lots with 33 in the first phase and “Brandy Meadows” is slated for 40. But most new building will have more “embellishments” mandated by city code, compared with a decade ago. For example, the "snout house" – as it has been nicknamed by local developers – now is prohibited in the city code.
About a dozen years ago, a new coding provision to prevent garages from “sticking out in front of houses” went down to eventual defeat, after developers fought it and convinced the city council it was a bad idea. Several years later, the city council reversed itself again – and approved the change. It requires a home's facade to extend four feet beyond the garage. However, garages are still allowed in the front of the dwelling if they are "side oriented," explained Zach Pelz, the city's contracted certified planner.
The code also now requires window trim around panes and it bans siding that's plastic or vinyl. This is standard in many cities, Mr. Pelz said.
Such design elements do "have an impact on the price of homes," he acknowledged. But the code is not "super-prescriptive," he pointed out. The development codes reflect changing times, not necessarily
community "gentrification,"
Mr. Pelz said, noting that these code requirements may necessitate more elaborate plans but "it's the market that is best at deciding the housing types that are provided."
Part of this is due to expectations by many first-time home buyers, who have a list of desired characteristics that don't necessarily include fixer-upper features. "It can depend on where they're coming from," observed Rep. Paul Evans, when asked about what some have described as a housing crisis hitting even small towns. There still is a sizable migration from the golden state, he pointed out.
"If it's California, maybe they want a 'McMansion' for their move," he suggested. Small homes often aren't seen as a viable option in many places because either there isn't high-enough demand or the return-on-investment doesn't entice development, he added.
Through years of business-as-usual, policymakers at all levels of government in Oregon have “put themselves into a corner on this issue,” he said.
"I think it is clear that policy matters,” agreed Joshua Lehner, senior economist with the State of Oregon and co-author of a recent economic and revenue report. The state’s unique land use system does impact the housing market and affordability, he said. “By restricting the amount of developable land, it does raise prices in the long-run,” he stated. On the other hand, “it alsoprovides benefits like preserving farmland, reducing sprawl and other items that are harder to measure.”
But simply pointing to an “Oregon-specific issue, like our urban growth boundary, as a reason for a nationwide problem doesn’t get you very far,” he said. “So our office threw a lot of things at the wall to try and figure out why we aren’t seeing the supply response, or increase in building activity in recent years.”
The findings show numerous factors are impacting the market, such as more limited lending by banks – which is understandable. “It takes a long time to take a piece of raw dirt and turn it into a buildable lot,” Mr. Lehner said. “You have to grade it, put in utilities, roads, and the like,” he said.
In fact, the "process is horrendous" when it comes to bureaucratic barriers in land-use development, said Kurt Bolser, owner-operator of Pickett Mountain Construction in Grants Pass, and an active member of the Oregon Homebuilders Association. It is "upper-end home sales” that arestrong – Californians are a large partof that customer base, he said.
In 2016, Oregon was ranked 6th in terms of population growth, and it’s probably ratcheted even higher now, according to state estimates. In fact, it’s predicted to steadily tick up, at 1.2 percent annually, for the next two decades, according to Oregon’s recent economic and revenue forecast. Most newcomers are young adults in the 20- and 30-something age group.
But what accounts for a big chunk of population growth? Surprisingly, it’s largely baby-boomers from the “young elderly” cohort of 65-74 years of age. Conversely, the growth of youth, ages 5-17 years, is likely to remain low for years to come, just as it has been in recent history, according to predictions by the Oregon Office of Economic Analysis.
Construction since 2000 in rural Oregon is about 30% less on a population-adjusted basis, according to the state’s first-quarter housing-affordability report. Oregon’s housing costs are significantly above U.S. housing costs, confirmed Mr. Lehner. “This goes for our fast-growing metropolitan areas, but also for our rural communities, as well,” he said.
Oregon’s median household income is on par with the U.S., based on the most recent data. Yet, housing affordability is a statewide problem, and the construction of “workforce housing” – often characterized by typical “starter” homes bought with a 30-year mortgage – has been declining for the past several years.
The only neighborhoods where many young families have the best chance to qualify for home ownership are in aging parts of cities and older areas of small towns.
Legislators are looking at ways to offer some relief to potential buyers who have little choice of where to live, due to jobs or life circumstances. Through money collected by the state – fees required for document registration, for example – funds are being put aside for possible help in home purchasing, said Rep. Evans.
The recent departure of Ken Day from the Independence City Council looks nothing short of ironic. Upon his exit, Mr. Day lamented the lack of city housing stock, noting that, these days, multi-family housing seems to be springing up faster than traditional single-family homes. As if on cue, a man appeared on Mr. Day’s doorstep a few weeks ago. He was seeking a new home. The curb appeal of Mr. Day’s house drew him to the front porch."He was looking for a place like ours," explained Mr. Day. After a quick tour, the potential buyer asked if he could return with his wife. "She came in, looked it over – and now we’re in escrow," Mr. Day said. Next stop is the sunny Southwest. "We’re off to Arizona,” he said.
Strong economic recovery has pushed western Oregon into one of the fastest-growing places in the nation – but, in terms of construction, it’s a house divided. Many areas are experiencing a building boom. However, it’s split between construction of multiple-unit housing, like apartments, and houses for higher-end buyers, including vacation homes, according to a recent statewide economic analysis. Across the state, housing shortages are of such “critical importance for cities” that a survey on it is underway by the League of Oregon Cities. Nearly 30 towns – from Salem to Siletz – have responded.
One reason for concern: rents are creeping up for those who cannot clinch financing for a new home, which is proving more costly than ever to build for several reasons.
“I was told (multi-units) are preferred because they are easier and less expensive to service," Mr. Day said in a recent interview. Multiple-family housing requires less infrastructure: sewage-and-water hook-ups, for example, take less of a network for connecting pipes. But “we are a bedroom community here – and a nice one,” Mr. Day stressed. “Why not embrace that?"
City Manager David Clyne countered that “diversity of housing choices is very important to the City of Independence. ”The issue is “much more complicated than the number of pipelines needed to serve customers,” he added.
In fact, housing subdivisions in Independence are planned for the southwest area of the city. The “Liberty Subdivision” is scheduled for nearly 100 lots with 33 in the first phase and “Brandy Meadows” is slated for 40. But most new building will have more “embellishments” mandated by city code, compared with a decade ago. For example, the "snout house" – as it has been nicknamed by local developers – now is prohibited in the city code.
About a dozen years ago, a new coding provision to prevent garages from “sticking out in front of houses” went down to eventual defeat, after developers fought it and convinced the city council it was a bad idea. Several years later, the city council reversed itself again – and approved the change. It requires a home's facade to extend four feet beyond the garage. However, garages are still allowed in the front of the dwelling if they are "side oriented," explained Zach Pelz, the city's contracted certified planner.
The code also now requires window trim around panes and it bans siding that's plastic or vinyl. This is standard in many cities, Mr. Pelz said.
Such design elements do "have an impact on the price of homes," he acknowledged. But the code is not "super-prescriptive," he pointed out. The development codes reflect changing times, not necessarily
community "gentrification,"
Mr. Pelz said, noting that these code requirements may necessitate more elaborate plans but "it's the market that is best at deciding the housing types that are provided."
Part of this is due to expectations by many first-time home buyers, who have a list of desired characteristics that don't necessarily include fixer-upper features. "It can depend on where they're coming from," observed Rep. Paul Evans, when asked about what some have described as a housing crisis hitting even small towns. There still is a sizable migration from the golden state, he pointed out.
"If it's California, maybe they want a 'McMansion' for their move," he suggested. Small homes often aren't seen as a viable option in many places because either there isn't high-enough demand or the return-on-investment doesn't entice development, he added.
Through years of business-as-usual, policymakers at all levels of government in Oregon have “put themselves into a corner on this issue,” he said.
"I think it is clear that policy matters,” agreed Joshua Lehner, senior economist with the State of Oregon and co-author of a recent economic and revenue report. The state’s unique land use system does impact the housing market and affordability, he said. “By restricting the amount of developable land, it does raise prices in the long-run,” he stated. On the other hand, “it alsoprovides benefits like preserving farmland, reducing sprawl and other items that are harder to measure.”
But simply pointing to an “Oregon-specific issue, like our urban growth boundary, as a reason for a nationwide problem doesn’t get you very far,” he said. “So our office threw a lot of things at the wall to try and figure out why we aren’t seeing the supply response, or increase in building activity in recent years.”
The findings show numerous factors are impacting the market, such as more limited lending by banks – which is understandable. “It takes a long time to take a piece of raw dirt and turn it into a buildable lot,” Mr. Lehner said. “You have to grade it, put in utilities, roads, and the like,” he said.
In fact, the "process is horrendous" when it comes to bureaucratic barriers in land-use development, said Kurt Bolser, owner-operator of Pickett Mountain Construction in Grants Pass, and an active member of the Oregon Homebuilders Association. It is "upper-end home sales” that arestrong – Californians are a large partof that customer base, he said.
In 2016, Oregon was ranked 6th in terms of population growth, and it’s probably ratcheted even higher now, according to state estimates. In fact, it’s predicted to steadily tick up, at 1.2 percent annually, for the next two decades, according to Oregon’s recent economic and revenue forecast. Most newcomers are young adults in the 20- and 30-something age group.
But what accounts for a big chunk of population growth? Surprisingly, it’s largely baby-boomers from the “young elderly” cohort of 65-74 years of age. Conversely, the growth of youth, ages 5-17 years, is likely to remain low for years to come, just as it has been in recent history, according to predictions by the Oregon Office of Economic Analysis.
Construction since 2000 in rural Oregon is about 30% less on a population-adjusted basis, according to the state’s first-quarter housing-affordability report. Oregon’s housing costs are significantly above U.S. housing costs, confirmed Mr. Lehner. “This goes for our fast-growing metropolitan areas, but also for our rural communities, as well,” he said.
Oregon’s median household income is on par with the U.S., based on the most recent data. Yet, housing affordability is a statewide problem, and the construction of “workforce housing” – often characterized by typical “starter” homes bought with a 30-year mortgage – has been declining for the past several years.
The only neighborhoods where many young families have the best chance to qualify for home ownership are in aging parts of cities and older areas of small towns.
Legislators are looking at ways to offer some relief to potential buyers who have little choice of where to live, due to jobs or life circumstances. Through money collected by the state – fees required for document registration, for example – funds are being put aside for possible help in home purchasing, said Rep. Evans.
The CIVICS LESSON: May Ballot Levy Literally Is On Fire
Along with the onset of daylight-saving time and the eruption of daffodils, another rite of spring will soon be on its way – the levy-deciding May ballot. Officially known as a local-option tax, Independence voters will decide on a proposed new levy for the amount of $.19 cents per $1,000 of assessed property value for Polk County Fire District No. 1. A yes vote “would not increase taxes from the current rate,” but rather, simply renew the current levy, according to an informational letter from the Fire District. If the levy doesn’t pass, the Fire District’s revenue would decrease from the current level by approximately eight percent. That would likely mean a “reduction in staffing during certain hours when personnel are sick” and that the district would probably be unable to fund its projected “Equipment Replacement Plan.” By mid-month, it’s a sure bet that signs about the pending election on this and other topical issues will be popping up in yards, right along with those prolific dandelions.
The INDY HOP: What’s IN a Name? Those Two Letters + D-I-E
In Oregon, you have your “Portlanders.” You have your “Salemites.” You have your “Eugenians.” So isn’t it time you gave some thought to a catchy name for residents of Independence? That question was put to local merchants recently – and two proposals got a lot of traction. “Hopper” or “Hopster” was favored by some who felt that the crop that helped build the city should be part of any town moniker. The other front-runner was “Indy.” However, no one who was queried really liked using the nickname of the city itself to describe its citizenry, too. This idea prompted ponder. “Well, you could combine them and say ‘I’m an Indy-Hopper,’” suggested Susan Guthrie, owner of Elite Cleaners. In the end, the polling concluded with most merchants expressing as their favorite “Indy,” but with a twist – differentiating it by placing an “ie” rather than a “y” at the end. “It should be Indie with an i and e,” stressed Katie Schaub, owner of the Ovenbird Bakery, who confessed she has a bias because that’s the way her first name is spelled. Jaime Petersen, owner of the Naughty Noodle, agreed. “It should be Indie, with an i and e, because that really means we’re independent,” she said, noting that films designated this way often break the mold. “We are our own little thing here,” she said. “Yes, ‘Indie.’ Definitely, that’s it,” concurred Brian Pendleton, owner of The Time Wizard. Even Nancy Lodge, a former city councilor and downtown building owner, agreed. “I like Indie,” she said. “But really, I’d just rather say ‘I am from Independence.”
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