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102 <br /> <br />How is affordability of housing likely to change considering changes to home <br />values and/or rents? <br />Rental housing costs have increased steadily over the past ten years – creating more <br />pressure on extremely low-income households. Median market rate rents exceed the Fair <br />Market Rents for Orange County and represent a significant burden for low- and moderate- <br />income households struggling to remain housed. Similarly, according to home value data <br />supplied by Zillow, median home sales increased 41 percent from $594,064 in 2020 to <br />$834,377 in 2024. Based on this information and barring significant regional and national <br />changes in economic conditions, the price of housing in Santa Ana is forecast to continue <br />increasing during the period of the 2025-2029 Consolidated Plan. <br />How do HOME rents / Fair Market Rent compare to Area Median Rent? How <br />might this impact your strategy to produce or preserve affordable housing? <br />In 2022 there was significant variation in low HOME, fair market, market rate, and median <br />contract rents. This variance makes it difficult to identify viable affordable housing projects <br />to support and reduces the number of affordable housing units that become available. <br />Figure 11 - Rent Differentials <br /> Data Source: 2022HOME Rates, 2016-2020 5—estimates ACS, 2022Zumper Research <br /> <br />Discussion <br />Economic expansion over the last decade and a lag in production of new housing units in <br />Southern California have created a housing economy that is overburdened. <br />Homeownership is out of reach to many Santa Ana households and a single person earning <br />minimum wage cannot reasonably afford a two-bedroom rental apartment. A household <br />would need to earn about $177,840 annually to reasonably afford a $730,205 home, which <br />was the median home value in Santa Ana reported November 2022 per the Zillow Home <br />EXHIBIT 1