1. Capitalizing on Market Opportunities in Prince George’s County
Key findings from Phase 1 of the Comprehensive Housing Strategy
Presentation to the Ad Hoc Subcommittee
Prince George’s County, MD

2. Presentation overview
2/23/2019
Present market findings from Phase 1
Relate those findings to key goals that have been articulated by County leadership and stakeholders
Demonstrate how proposed high-level strategies address these findings to achieve key goals

3. Comprehensive Housing Strategy Ongoing public & stakeholder engagement
Phase 1 tasks
2/23/2019
Comprehensive Housing Strategy
Phase 1
Existing & future conditions analysis
June 2017 – March 2018
Phase 2
Development of principles, goals, & targets
March 2018 – May 2018
Phase 3
Strategy development & delivery
May 2018 – September 2018
Ongoing public & stakeholder engagement
Ongoing
Task 2: Housing Needs Survey
Task 3: Focus Groups and Interviews
Task 4: Programs and Policies Assessment
Task 5: Housing Needs & Market Analysis
Task 6: Communications

4. Market opportunities Growing market strength & potential
2/23/2019
Growing market strength & potential
Growth relative to strategic investments
Perspectives on market demand
Developers
Current residents
In-commuters

5. Key goals
2/23/2019
Throughout our conversations with stakeholders, staff, and County leadership, we’ve consistently heard that the County is looking to capitalize on market opportunities to achieve the following goals:
Attract new residents (including millennials, employers, developers)
Support existing residents (including long-time residents, seniors, and residents at-risk of displacement)
Build on strategic investments & sub-market conditions (including TOD areas like the Purple Line Corridor, “high-value” parcels, and TNI areas)

6. Key findings related to attracting new residents
2/23/2019
Key findings related to attracting new residents

7. PROGRAMMATIC IMPLICATIONS
Demand for more housing options in neighborhoods with amenities and resources
2/23/2019
As income increases, for-sale housing options in the county become more limited, especially for households earning more than the area median income. The county has a limited supply of rental units for households earning above 80% AMI and below 30% AMI.
Current residents
Non-resident in-commuters
Millennials
Regional housing consumers (according to developers)
Public meeting participants
DEMAND FROM…
PROGRAMMATIC IMPLICATIONS
Prioritize more diverse housing products.
Align priorities with desired projects and established geographic targets.
Cultivate additional resources to support preservation and mixed-income & mixed-use development.

8. Barriers to new development
2/23/2019
Developers believe that more growth will occur in the Developed Tier (but still less than projected goals in Plan 2035). While the County has created policy tools to direct more growth to its Developed Tier, most growth continues to occur in the Developing Tier.
High taxes
Lengthy development review and approval process
Parking and retail requirements
Lack of financing
DEVELOPERS’ CHALENGES
PROGRAMMATIC IMPLICATIONS
Expand resources and explore more tailored financing products
Improve transparency and consistency
Update existing policies to account for market-based perspective

9. Perception issues
2/23/2019
There was a commonly-held belief across focus groups that Prince George’s County continues to have a perception problem, even as underlying conditions improve. Developers noted this as a challenge to new development.
School quality
Government accountability
Limited amenities
Public safety
KEY DRIVERS OF NEGATIVE PERCEPTIONS
COMMUNICATIONS STRATEGY
Promoting a positive image of the County
Branding
Communications Toolkit focused on assets and action

10. Regional affordability as an asset
2/23/2019
Compared to adjacent counties in Maryland and D.C., Prince George’s County has the lowest median home value ($254,700) and lowest median gross rent ($1,294). Home values and rents are most competitive with some neighboring jurisdictions in the county’s suburban and rural tiers.
Affordability
Proximity to D.C.
Diversity
Overall community
TOP REASONS RESIDENTS SAID THEY WOULD PURCHASE HOUSING IN THE COUNTY IN THE FUTURE
PROGRAMMATIC & COMMUNICATIONS IMPLICATIONS
Preserve existing affordability
Update current toolbox to expand and maintain this asset moving forward
Asset-based marketing to attract new residents and businesses

11. Key findings related to supporting existing residents
2/23/2019
Key findings related to supporting existing residents

12. Lack of diverse housing options
2/23/2019
Limited housing options—in terms of price point, type, and location—may affect residents ability to stay in the county. Construction trends are driven by single-family construction, which developers anticipate will continue (especially for attached single-family products, like townhomes).
Current residents
Seniors
Market-rate housing residents
Persons with disabilities
Persons experiencing or at-risk of homelessness
DEMAND FROM…
PROGRAMMATIC IMPLICATIONS
Prioritize more diverse housing products.
Align priorities with desired projects and established geographic targets.
Cultivate additional resources to support preservation and mixed-income & mixed-use development.

13. Growing market strength
2/23/2019
Median rent rose by nearly one-third between 2000 and 2015, on par with nearby Maryland counties. Median home values also increased countywide by one-third between 2000 and 2015.
People moving out of D.C. into Prince George’s County
Neighborhoods gentrifying within the county
Some populations are particularly vulnerable to displacement (e.g., Hispanic households, seniors)
GENTRIFICATION CONCERNS
PROGRAMMATIC IMPLICATIONS
Pursue policies to support vulnerable populations and long-time residents (e.g., tenant protections, foreclosure assistance, etc.)
Ensure broad community benefits as part of new large- scale projects

14. Challenges with housing costs
2/23/2019
While the County’s median rent and home value rose by about one-third from 2000 to 2015, median household income fell slightly. As a result, many housing consumers cannot find housing that aligns with their earnings, resulting in cost-burdens (41 percent).
Price
Size of housing
Aging housing
Taxes
CAUSES OF DISSATISFACTION WITH HOUSING
PROGRAMMATIC IMPLICATIONS
More specific targeting of programs
Updating policies to reinforce programmatic goals & strengthen impact
Leveraging new and existing partners

15. Housing quality concerns
2/23/2019
43 percent of households live in inadequate housing, defined by one or more housing unit problems. Forty-four percent of residents reported living in housing built before 1980, and aging housing was a key reason associated with housing dissatisfaction.
Renters
Hispanic households
Large families
Seniors
Low-income households
GROUPS MOST AFFECTED BY QUALITY CONCERNS
PROGRAMMATIC IMPLICATIONS
Additional focus on preservation (both of affordability and quality) of the existing rental housing stock.
Expand tools that can capitalize efforts to improve quality (e.g. PACE, Clean Energy Programs, Section 108).

16. Key findings related to building on strategic investments
2/23/2019
Key findings related to building on strategic investments

17. Significant submarket variation
2/23/2019
Home values and rents are highest in the suburban and rural tiers, but are generally lower in the urban tier. A supply gap is widespread across income levels in the suburban tier, but more concentrated on the lowest and higher ends of the income spectrum in the urban and rural tiers.
Stronger access to jobs, goods, and services as you get closer to the District
Environmental quality is strongest in rural areas.
Social capital and quality of community institutions is strongest in the suburban tier, followed by the rural and urban tiers.
PATHWAYS TO OPPORTUNITY
PROGRAMMATIC IMPLICATIONS
Target new and existing programs to specific submarket conditions.
Continue aligning programs, policies, and financing to leverage existing strategic investments.
Cultivate stronger partnerships with community institutions.

18. Varied market conditions & amenities in areas around strategic investments
2/23/2019
Areas around Konterra and Regional Medical Center have larger supply of homeownership options for households earning above the area median income, coupled with growing populations. Areas around Naylor Road and Suitland have housing options with lower rents and home values.
Proximity to amenities (shopping, grocery stores, parks, etc.)
School quality
Proximity to job opportunities
Health care availability
Transit access
RESIDENT PRIORITIES IN CHOOSING WHERE TO LIVE (SETTING COST ASIDE)
PROGRAMMATIC IMPLICATIONS
Expand on existing efforts to target tools to TOD areas.
Improve consistency and transparency of processes (e.g. funding term sheets and application timelines) to support more varied development in priority areas.
Increase efforts to create more mixed-income communities.

19. Additional strategic housing investments may be needed to capitalize on TOD areas
2/23/2019
Developers see more potential for growth in attached single-family development and in the Urban/Developed Tier. They see potential for this growth in Established Communities, with less potential for development in Regional Transit Districts.
Public transportation was the second most common commute mode reported (10%)
Many focus group participants (particularly Hispanic immigrants, seniors, and developers) value housing in close proximity to transit
Transit was regularly cited as a key asset during public meetings
DEMAND FOR TRANSIT ACCESS
PROGRAMMATIC IMPLICATIONS
Create stronger connections between existing housing programs and other available tools that influence development patterns (like TOD).
Cultivate additional resources to support preservation and mixed-income & mixed-use development.

20. Proposed strategies & how they accomplish these goals
2/23/2019
Proposed strategies & how they accomplish these goals

21. Summary of proposed strategies
2/23/2019
Strategy 1.
Support diverse housing options to strengthen neighborhoods and improve quality-of-life.
Strategy 2.
Increase production of affordable housing.
Strategy 3.
Pursue preservation activities to extend quality and affordability of existing properties.
Strategy 4.
Increase targeted investments in neighborhoods to improve quality-of-life and long-term stability.
Strategy 5.
Preserve long-term affordability and stabilize vulnerable residents in areas experiencing market pressure.

22. How proposed strategies help attract new residents
2/23/2019
Creating more housing options – including more density, mixed-use, and different types besides single-family (Strategy 1)
Creating a more supportive environment for development based on developer and other stakeholder feedback (Strategies 1 and 2)
Building off the County’s existing affordability to attract new residents and businesses (Strategies 2 and 3)
Supporting more amenity-rich neighborhoods (Strategy 4)
Strategy 1.
Diverse housing options.
Strategy 2.
Production of affordable housing.
Strategy 3.
Preservation activities.
Strategy 4.
Targeted investments.
Strategy 5.
Stabilize vulnerable residents.

23. How proposed strategies help support existing residents
2/23/2019
Right-sizing housing options to current residents’ needs—in terms of cost, stage of life, housing type, etc.—through new housing production (Strategies 1 and 2)
Improving quality of existing housing options (Strategies 3 and 4)
Ensuring residents can stay in their existing neighborhoods as they age and markets change (Strategies 3, 4, and 5)
Strategy 1.
Diverse housing options.
Strategy 2.
Production of affordable housing.
Strategy 3.
Preservation activities.
Strategy 4.
Targeted investments.
Strategy 5.
Stabilize vulnerable residents.

24. How proposed strategies help build on strategic investments
2/23/2019
Increasing housing options near amenities in strategic investment areas (Strategies 1 and 2)
Investing in long-term neighborhood stabilization and quality-of-life improvements (Strategies 3 and 4)
Targeting of all strategies, prioritizing existing assets like transit stations (Strategies 1-5)
Strategy 1.
Diverse housing options.
Strategy 2.
Production of affordable housing.
Strategy 3.
Preservation activities.
Strategy 4.
Targeted investments.
Strategy 5.
Stabilize vulnerable residents.

25. Upcoming project milestones
2/23/2019
MAR
Finalize interim task reports
APR
Hold third public meeting
Develop full strategy roadmap
MAY
Hold fourth (and final) public meeting
Identify goals & targets
JUN
Present principles, goals, and targets report
JUL
Begin drafting full Comprehensive Housing Strategy

26. Comprehensive Housing Strategy webpage mypgc.us/housingstrategy
2/23/2019
Q&A
Comprehensive Housing Strategy webpage mypgc.us/housingstrategy

27. Sources
2/23/2019
2000 U.S. Census
American Community Survey Five-Year Estimates
Comprehensive Housing Affordability Strategy
Results of phone survey (November-December 2017)
Results of focus groups (October 2017-February 2018)
Results of questionnaires completed by developers (December 2017-January 2018)
Results of programs and policy analysis (March 2018)
Market-based projections prepared by University of Maryland (February 2018)