CITY OF CHELSEA Housing Needs Analysis & Strategic Plan

CITY OF CHELSEAHousing Needs Analysis & Strategic Plan

March 21, 2017

• Project Overview• Status Report• Housing Needs Assessment• Goals & Priorities

Housing study for Chelsea: why?

Chelsea Housing Needs Analysis & Strategic Plan

• Chelsea is growing!• About 1,000 new housing units since 2010• By 2015, City had already absorbed 72% of

MAPC projected demand for 2010-2020• Skyrocketing housing sale prices & rents• Impact of regional housing pressures on

Chelsea• Competing needs• Competing priorities

3/21/2017

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Chelsea is not alone

Chelsea Housing Needs Analysis & Strategic Plan3/21/2017

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Chelsea

Lynn

Winthrop

East Boston

Boston

Revere

Everett

Saugus

Melrose

Malden

Medford

Somerville

Cambridge

“Home shoppers in Boston-area communities especially should prepare for yet another year of slim pickings, overcrowded open houses, and bidding wars, real estate brokers say.”Boston GlobeJanuary 24, 2017

Housing plan components• Needs assessment• Affordability analysis• Supply/demand analysis• Vision & goals

• Housing types• Range of affordability• Fair housing

• Strategies for reaching goals & achieving vision

• Roles/responsibilities of Housing Trust


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What kind of goals?• Goals should be …

• Specific• Measurable• Achievable• Relevant• Time-based


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Strategic plan (end product)

Situation/

ProblemResources Activities

Outputs Outcomes IMPACT

3/21/2017 Chelsea Housing Needs Analysis & Strategic Plan

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Chelsea by the Numbers


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Rents by the numbers


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$1,619 $1,520$1,704

$1,943$2,183 $2,153 $2,223

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2010-12 2011-12 2012-12 2013-12 2014-12 2015-12 2016-12

Market Rents in Chelsea and Cities Nearby2010-2016

(Source: Zillow, 2017)

CHELSEA Boston Somerville Cambridge Everett Revere

Sale prices by the numbers


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$188,000 $180,800 $177,400 $205,000 $224,800 $244,600 $272,600

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2010 2011 2012 2013 2014 2015 2016

Condo Sale Prices in Chelsea & Cities Nearby2010-2016

(Zillow, 2016)

CHELSEA Boston Somerville Cambridge Everett Revere

Chelsea Condo Sale Prices


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$136,800

$254,300

$177,400

$272,600

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

A longer-term look

Population by the numbers

Total population (Est.) 37,581 100%

Children under 18 9,768 26%

Seniors 65 and over 3,388 9%

Racial minorities 18,194 48%

Latino population 24,130 64%

Born abroad 16,550 44%

Residents with jobs* 18,212

Residents with Local Jobs 4,370 24%*Residents 16 years and over.Source: Census Bureau, ACS Five-Year Estimates 2011-2015.


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Households by the numbers

Total households: 12,290 100.0%

Renters 8,856 72.1%

Homeowners 3,434 27.9%

Families 7,838 63.8%

Families with children under 18 4,944 40.2%

Senior households 2,035 16.6%

Newcomers (recent move-ins) 2,186 5.9%Source: Census Bureau, ACS Five-Year Estimates 2011-2015.


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Housing by the numbers

Total housing units 12,940 100%

Median year built, all units Pre-1939

Multifamily units 11,825 91%

Single-family homes 1,092 8%

Median value, owner-occupied unit $274,100What households typically spend each month to own or rent their home or apartment $1,269Source: Census Bureau, ACS Five-Year Estimates 2011-2015.


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Who can afford to live in Chelsea?


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Defining terms


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Number of People in the Household

1 2 3 4 5 6

Extremely Low Income $20,650 $23,600 $26,550 $29,450 $31,850 $34,200

Low Income $34,350 $39,250 $44,150 $49,050 $53,000 $56,900

Moderate Income $51,150 $58,450 $65,750 $73,050 $78,900 $84,750

What do “extremely low income,” “low income” and “moderate income” mean? The legal definition from HUD is based on households incomes throughout a region. In the Boston area today, here are the maximum eligible incomes for federal and state housing assistance.

Boston Metro Area Income Limits (2016)

But, Chelsea is different


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0%10%20%30%40%50%60%70%80%90%

100%

Chelsea Boston Metro

Household Incomes:Chelsea and Boston Metro Area

(Source: ACS 2011-2015)

Less than $15K $15K-$34.9K $35K-$49K $50-$74.9K$75K-$99K $100K-$124.9K $125K-$199.9K $200K+

Affordability by the numbers


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29%

17%17%

37%

Chelsea Households by Income Range(Source: HUD, 2015)

Extremely low income

Low income

Moderate income

All others



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85.2%

80.4%71.1%

62.0%

20.2%

Chelsea HomeownersHousehold Income by Housing Cost Burden


Low income

Moderate income

Middle income

All others



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74.8%

66.5%

47.1%

11.8%

2.8%

Chelsea RentersHousehold Income by Housing Cost Burden


Low income

Moderate income

Middle income

All others

Documents

CITY OF CHELSEA Housing Needs Analysis & Strategic Plan