Work Force Housing 1

Virginia’s Work Force is Changing Exit of Baby Boomers is accelerating Growing need for communities to retain and attract footloose Millennials Affordable and attractive housing options are a key part of local economic competitiveness 2

Shifting Housing Need/Demand During the housing boom, middle-aged households in their peak earning years drove housing demand Local communities and the housing industry mainly accommodated that demand The needs of young households were largely met by the older, existing housing inventory 3

Challenges Facing Millennials Outnumber and are different from their counterparts of recent decades Greater financial struggles in establishing independent households 4

Challenges Facing Millennials Economic conditions are now improving and postponed choices will start to be exercised As household formation starts to increase, there is insufficient housing inventory to meet growing and shifting needs 5

Rental Housing Needs Production of new units has ramped up, but affordability remains a major challenge Existing subsidy resources are strained in assisting the lowest income populations while supporting broader work force needs 6

Homeownership Needs Marriage and family formation generate need and demand for expanded housing options Low mortgage rates are keeping affordability at an historic high Steep rents, student debt, and less access to family support make down payment a key barrier 7

Local/Regional Policy Issues Adjusting local regulations/incentives to promote affordability and accommodate a wider set of housing choices Enhancing housing/transit linkages to improve access to jobs Building consensus on acceptable means to increase densities and address rising land costs 8

State Level Issues Expanding the affordable rental inventory to meet growing work force needs Assisting first-time and minority buyers in accessing homeownership 9

Rental Work Force Strategies Use of Low-Income Housing Tax Credits to expand the affordable rental inventory Enhancement of mixed use/mixed-income rental financing options 10

Homeownership Strategies Development of new program tools to assist first-time and minority buyers and help stimulate market recovery – Down payment assistance – Mortgage Credit Certificates (MCCs) 11