Loading...
HomeMy WebLinkAboutLoudon County VA Housing Needs AssessmentLOUDOUN COUNTY HOUSING NEEDS ASSESSMENT 2015 - 2040 George Mason University Center for Regional Analysis Lisa Sturtevant & Associates, LLC February 2017 Photo credits: Loudoun County, Virginia; iStock i Loudoun County Housing Needs Assessment Table of Contents Report Summary ................................................................................................................................1 Section I: Current Demographic, Economic and Housing Market Conditions ....................................... 13 Population and Demographics .................................................................................................................. 13 Key Demographic Trends ...................................................................................................................... 13 Population............................................................................................................................................. 14 Employment and the Economy ................................................................................................................. 25 Loudoun County Jobs and Economy ..................................................................................................... 25 Housing Market ........................................................................................................................................ 36 Ownership Market ................................................................................................................................ 36 Rental Market ....................................................................................................................................... 42 Housing Affordability ................................................................................................................................ 45 Current Housing Gaps ............................................................................................................................... 54 Section II: Forecasts of Housing Demand........................................................................................... 61 Summary of the Forecast Process ............................................................................................................. 61 Economic Drivers of Housing Demand in Loudoun County ....................................................................... 65 Household Forecasts ................................................................................................................................. 68 Household Income Forecasts .................................................................................................................... 74 Housing Unit Forecasts ............................................................................................................................. 77 Housing Affordability Forecasts ................................................................................................................ 82 Forecasts of Potential Future Housing Gaps ............................................................................................. 86 Scenarios ................................................................................................................................................... 92 Appendix ................................................................................................................................................... 95 ii Loudoun County Housing Needs Assessment SECTION I FIGURES Figure 1. Population, 1990-2016 ............................................................................................................... 14 Figure 2. Population and Housing Units, 1990-2016 ................................................................................. 15 Figure 3. Age Distribution, 2014 ............................................................................................................... 16 Figure 4. Age Distribution, 2000 and 2014 ................................................................................................ 17 Figure 5. Age Distribution of Recent Movers and Non-Movers, 2012-2014 ............................................. 17 Figure 6. Race/Ethnicity, 2000 and 2014 .................................................................................................. 18 Figure 7. Household Type, 2014................................................................................................................ 19 Figure 8. Household Size by Race/Ethnicity, 2012-2014 ........................................................................... 19 Figure 9. Household Income (2014 $s), 2014 ............................................................................................ 20 Figure 10. Household Income by Race/Ethnicity (2015 $s), 2012-2014 .................................................... 20 Figure 11. Housing Tenure, 2006 and 2014 .............................................................................................. 21 Figure 12. Year Moved into Current Home, 2012-2014 ............................................................................ 22 Figure 13. Housing Units by Building Type, 2006 and 2014 ...................................................................... 22 Figure 14. Change in Gross County Product and Gross Regional Product, 2000-2014 .............................. 25 Figure 15. Payroll Jobs by Sector, 20014 ................................................................................................... 26 Figure 16. Average Wage by Sector, 2014 (thousands of 2014$s) ............................................................ 27 Figure 17. Jobs by Select Sector, Largest Job Gains, 2000-2014 ............................................................... 27 Figure 18. Most Common Occupations by Sector, 2014 ........................................................................... 28 Figure 19. Job Gains, 2000-2014, and Average Wages, 2014 (2014 $s) .................................................... 29 Figure 20. Average Wage, 2000-2014 (thousands of 2014 $s) .................................................................. 29 Figure 21. Share of Jobs Held by Residents, 2009-2013 ............................................................................ 31 Figure 22. Share of Jobs Held by Residents by Sector, 2012-2014 ............................................................ 31 Figure 23. Share of Private Sector Workers by Age Group, 2000, 2006 and 2014 .................................... 33 Figure 24. Unemployment Rate, 2000-2015 ............................................................................................. 32 Figure 25. Employed Resident Growth (2000=100), 2000-2015 ............................................................... 34 Figure 26. Employment Rate by Age Group, 2012-2014 .......................................................................... 34 Figure 27. Median Home Sales Price, 2015 .............................................................................................. 37 Figure 28. Median Home Sales Price by Type, Existing Home (2000-2015) ............................................. 38 Figure 29. Share of Sales by Price Range, 2000, 2006 and 2014 ............................................................... 38 Figure 30. Average Sale Price by Housing Type, 2015 ............................................................................... 39 Figure 31. Sales Comparison (100 = 2000-level of closed sales) ............................................................... 40 Figure 32. Existing Home Sales, 2000-2015 .............................................................................................. 40 iii Loudoun County Housing Needs Assessment Figure 33. New Residential Permits, 1991-2015 ....................................................................................... 41 Figure 34. Housing Vacancy Rate, 2014 .................................................................................................... 42 Figure 35. Occupied Rental Units by Type, 2000, 2006 and 2014 ............................................................. 42 Figure 36. Median Gross Rent, 2000, 2006 and 2014 ............................................................................... 43 Figure 37. Gross Rent, 2014 ...................................................................................................................... 43 Figure 38. Cost Burdened Households by Tenure, 2014 ........................................................................... 45 Figure 39. Cost Burdened Households by Tenure, 2006-2014 .................................................................. 46 Figure 40. Cost Burdened Households by Tenure, Selected Jurisdictions, 2014 ....................................... 46 Figure 41. Cost Burdened Households by Household Income, 2012-2014 ............................................... 47 Figure 42. Cost Burdened and Severely Cost Burdened Households by Household Income, 2012-2014 . 47 Figure 43. Cost Burdened Households by Age of Household Head, 2012-2014 ........................................ 48 Figure 44. Cost Burdened Households by Race, 2012-2014 ...................................................................... 50 Figure 45. Cost Burdened Households by Household Type, 2012-2014.................................................... 50 Figure 46. Cost Burdened Households by Disability Status, 2012-2014 .................................................... 51 Figure 47. Housing + Transportation Costs, 2008-2012 ............................................................................ 51 Figure 48. H + T Costs, Moderate Income Families, 2008-2012 ............................................................... 52 Figure 49. Cost Burdened Renter Households by Household Income and Household Size, 2012-2014 .... 56 Figure 50. Estimates of Current Rental Housing Gap by Household Income and Bedrooms .................... 57 Figure 51. Home Ownership Rates by Household Income, mid-1990s (est.) and 2014............................. 59 Figure 52. Estimates of Current Home Ownership Gap by Household Income ......................................... 59 SECTION II FIGURES Figure 1. Schematic of Employment-Driven Portion of Housing Demand Forecasts................................. 62 Figure 2. Schematic of Demographic-Driven Portion of Housing Demand Forecasts ............................... 62 Figure 3. Forecasted Household Growth based on GMU Unconstrained Housing Demand Forecasts ..... 65 Figure 4. Jobs in Loudoun County by Sector, 2015 and 2040 .................................................................... 66 Figure 5. Jobs in the Washington DC Region by Sector, 2015 and 2040 ................................................... 67 Figure 6. Number of Households and Future Growth, Loudoun County, 2000-2040 ................................ 68 Figure 7. Household Growth by Age of Householder, 2015 and 2040 ...................................................... 69 Figure 8. Household Growth by Age of Householder, 2015-2040 ............................................................. 69 Figure 9. Share of Growth from Households without a Payroll Job, Loudoun County and the Washington DC Region ................................................................................................................................................. 71 Figure 10. Growth in Households with at least One Disabled Person, 2015-2040 .................................... 72 iv Loudoun County Housing Needs Assessment Figure 11. Households By Household Size, 2015 and 2040 ....................................................................... 73 Figure 12. Household Growth by Household Income, 2015 and 2040 ...................................................... 75 Figure 13. Household Growth by Tenure, 2015-2040 ............................................................................... 78 Figure 14. Household Growth by Housing Type, 2015-2040 ..................................................................... 79 Figure 15. Precent Increase in Occupied Units by Unit Type, 2015 to 2040.............................................. 80 Figure 16. Overall Increase in Occupied Units by Unit Type, 2015 and 2040 ............................................ 80 Figure 17. Percent of Housing Cost Burdened Households by Tenure, 2015-2040 ................................... 83 Figure 18. Percent of Housing Cost Burdened Households by Area Median Income, 2015 and 2040 ...... 83 Figure 19. Rents and Home Prices Affordable to Households by Area Median Income, 2015 Dollars ...... 85 Figure 20. GMU Employment-Driven Household Forecasts and County/MWCOG Land Use-Based Household Forecasts, 2020 - 2040 ............................................................................................................ 86 Figure 21. GMU Employment-Driven Housing Unit Forecasts, 2015-2040 ............................................... 88 Figure 22. Comparison of GMU Employment-Driven Forecasts and Loudoun County/MWCOG Land Use Plan-Based Forecasts ............................................................................................................................... 89 v Loudoun County Housing Needs Assessment Appendix Tables CURRENT CONDITIONS APPENDIX TABLES P. Population Characteristics in Loudoun County, VA Over Time P.I. Age Group (2000, 2006-2014) P.I.a. Population by Age Groups, Select Jurisdictions (2014) P.II. Race and Ethnicity (2000, 2006-2014) P.II.a. Population by Race and Ethnicity (2014) P.III. Place of Birth (2000, 2006-2014) P.IV. Educational Attainment for Population over 25 Years Old (2000, 2006-2014) P.V. Disability Status for Civilian, Noninstitutionalized Population (2000, 2006-2014) H. Household Characteristics in Loudoun County, VA H.I. Households by Age of Household Head (2000, 2006-2014) H.II. Households by Household Income (2014) H.II.a. Household Income over Time, Select Jurisdictions H.I.a (1) Household Income, Select Jurisdictions (2014) H.I.a (2) Household Income, Select Jurisdictions (2010) H.I.a (3) Household Income, Select Jurisdictions (2006) H.I.a (4) Household Income, Select Jurisdictions (2000) H.III. Household by Percent of Area Median Income (2014) H.IV. Households by Household Type (2000, 2006-2014) H.IV.a. Household Type over Time by Select Jurisdictions H.IV.a (1) Household Type, Select Jurisdictions (2014) H.IV.a (2) Household Type, Select Jurisdictions (2010) H.IV.a (3) Household Type, Select Jurisdictions (2006) H.IV.a (4) Household Type, Select Jurisdictions (2000) H.V. Households by Length of Residence in Current Home (2014) H.VI. Place of Residence Year Ago for Households that Moved into the County (2012-2014) U. Housing Characteristics in Loudoun County, VA U.I. Occupied Housing by Tenure (2000, 2006-2014) U.I.a. Occupied Housing by Tenure over Time in Select Jurisdictions U.I.a (1) Occupied Housing by Tenure, Select Jurisdictions (2014) U.I.a (2) Occupied Housing by Tenure, Select Jurisdictions (2010) U.I.a (3) Occupied Housing by Tenure, Select Jurisdictions (2006) U.I.a (4) Occupied Housing by Tenure, Select Jurisdictions (2000) U.II. Occupied Housing by Type of Building (2000, 2006-2014) U.II.a. Occupied Housing by Type of Building by Select Jurisdictions U.II.a (1) Occupied Housing by Type of Building, Select Jurisdictions (2014) U.II.a (2) Occupied Housing by Type of Building, Select Jurisdictions (2010) U.II.a (3) Occupied Housing by Type of Building, Select Jurisdictions (2006) U.II.a (4) Occupied Housing by Type of Building, Select Jurisdictions (2000) U.III. Occupied Housing by Year Building Built (2000 and 2014) vi Loudoun County Housing Needs Assessment U.IV. Occupied Housing by Number of Bedrooms (2000, 2006-2014) U.V. Occupied Housing by Number of Occupants Per Room (2000, 2006-2014) U.VI. Occupied Housing by Monthly Gross Rent Level (2014) U.VII. Occupied Housing by Home Value (2014) E. Employment and Economic Characteristics E.I. Gross regional product (2000-2014) E.II. Trend Characteristics of At-Place Employment E.II.a. Jobs by Sector (2000-2014) E.II.b. Average Wage by Sector (2000-2014) E.II.c. Summary of Employment and Wages (2000 and 2014) E.II.d. Most Common Occupation by Sector (2012-2014 average) E.II.e. Workers by Age Group (2000-2014) E.II.f. Workers by Age Group Comparison (2006 and 2014) E.II.g. Place of Residence of Workers, Select Jurisdictions (2019-2013 average) E.II.h Percent of At-Place Employment Held by Residents by Industry, Select Jurisdictions (2012- 2014 average) E.II.i. Percent of At-Place Employment Held by Non-Residents by Industry, Select Jurisdictions (2012-2014 average) E.II.j. Mode of Commute to Work, Select Jurisdictions (2014) E.III. Characteristics of Resident Workers E.III.a. Resident Workers by Sector (2012-2014 average) E.III.b. Median Wage by Sector for Resident Workers (2012-2014 average) E.III.c. Resident Workers by Age Group (2012-2014 average) E.III.d. Place of Work of Residents (2019-2013 average) E.III.e. Mode of Commute to Work for Resident Workers, Select Jurisdictions (2014) E.III.f. Employment Rate by Age Group, Select Jurisdictions (2012-2014 average) HM. Housing Market Characteristics HM.I. For-Sale Market HM.I.a. Number of Sales of Existing and New Homes (2000-2015) HM.I.b.i. Median Sales Price of Existing and New Homes (2000-2015) HM.I.b.ii. Existing and New Homes Sales by Price Group (2000-2015) H.M.I.c. Active Listings by Price (April 2015) H.M.I.d. Active Listings by Unit Type, Bedroom Size and Unit Size (April 2016) HM.II. Summary of 2015 Rental Market HM.III. Residential Building Permits by Type of Structure (1991-2015) A. Affordability Characteristics A.I. Housing Costs as a Percent of Household Income in Owner Households, Loudoun County (2000, 2006-2014) A.II. Housing Costs as a Percent of Household Income in Renter Households, Loudoun County (2000, 2006-2014) A.I.a. Housing Costs as a Percent of Household Income, Select Jurisdictions vii Loudoun County Housing Needs Assessment A.I.a. (1) Housing Costs as a Percent of Household Income, Select Jurisdictions, 2014 A.I.a. (2) Housing Costs as a Percent of Household Income, Select Jurisdictions, 2010 A.I.a. (3) Housing Costs as a Percent of Household Income, Select Jurisdictions, 2006 A.I.a. (4) Housing Costs as a Percent of Household Income, Select Jurisdictions, 2000 A.III. Detailed Analysis of Cost Burdened Households (Defined as Those Spending 30% of More of Income on Housing) A.III.a. Housing Costs as a Percent of Household Income By Household Income, Loudoun County (2012-2014) A.III.b. Housing Costs as a Percent of Household Income By Percent of Area Median Income, Loudoun County (2012-2014) A.III.c. Housing Costs as a Percent of Household Income By Percent of Select Area Median Income, Loudoun County (2012-2014) A.III.d. Housing Costs as a Percent of Household Income By Household Type, Loudoun County (2012-2014) A.III.e. Housing Costs as a Percent of Household Income By Household Size, Loudoun County (2012-2014) A.II.f. Housing Costs as a Percent of Household Income By Race and Ethnicity, Loudoun County (2012-2014) A.III.g. Housing Costs as a Percent of Household Income By Age of Household Head, Loudoun County (2012-2014) A.III.g(Alt). Housing Costs as a Percent of Household Income By Age of Household Head, Loudoun County (2012-2014) A.III.h. Housing Costs Costs as a Percent of Household Income By Disability Status of Household Members, Loudoun County (2012-2014) FORECAST APPENDIX TABLES I. Jobs by Sector, 2015-2040 II. Jobs by Occupation, 2015-2040 III. Households by Age of Householder, 2015-2040 IV. Households by Labor Force Participation Status, 2015-2040 V. Households by Disability Status, 2015-2040 VI. Households by Household Size, 2015-2040 VII. Households by Unit Type, 2015-2040 VIII. Households by Area Median Income (AMI), 2015-2040 a. Households by AMI and Age of Householder, 2015-2040 b. Households by AMI and Labor Force Participation Status, 2015-2040 c. Households by AMI and Disability Status, 2015-2040 d. Households by AMI and Household Size, 2015-2040 e. Households by AMI and Unit Type, 2015-2040 IX. Households by Share of Household Income Spent on Housing and Tenure, 2015-2040 a. Housing Cost Burden by AMI, 2015-2040 b. Housing Cost Burden by Age of Householder, 2015-2040 c. Housing Cost Burden by Labor Force Participation Status, 2015-2040 d. Housing Cost Burden by Disability Status, 2015-2040 viii Loudoun County Housing Needs Assessment e. Housing Cost Burden by Household Size, 2015-2040 X. Housing Gap by Unit Type, 2030-2040 a. Housing Gap by AMI, 2030-2040 b. Housing Gap by Age of Householder, 2030-2040 FORECAST METHODOLOGY A. Population and Cohort Change Ratios, Loudoun County B. Ratio of Females Aged 20-44 to Children <10 years old, i.e. Child Generation Rates, Loudoun County C. Distribution by Age and Sex in Loudoun County and the Nation, 1990-2015 and Forecasted D. Headship Rate, Loudoun County E. Percent of Households without a Payroll Job, Loudoun County F. Households Without a Payroll Job Headed by a Female Aged 75-79 Years Old by Unit Type and AMI Group, Loudoun County G. Total Jobs, Loudoun County H. Net New Jobs and Retirement Positions, Loudoun County, 2015-2040 I. Workers by Age and Movers, Loudoun County J. Current and Future Age Distribution of Workers, Loudoun County K. Household Types L. Distribution of Workers by Household Type and Age Group, Professional & Business Service Jobs, Loudoun County M. Distribution of Workers by Household Type and AMI Group, Professional & Business Service Jobs, Loudoun County N. Average Workers per Household by AMI Group, Loudoun County O. Unit Type by Select Household Type, 200%+ of AMI, Loudoun County P. Share of Households with a Main Worker in Fairfax County, Fairfax City or Falls Church City living in Loudoun, earning 200%+ of AMI, by Housing Unit Type Q. FY 2015 AMI Limits, Washington DC Metro Area R. Washington DC Metropolitan Statistical Area S. Greater Washington DC Region 1 Loudoun County Housing Needs Assessment Loudoun County Housing Needs Assessment Report Summary Loudoun County is a fast-growing and diversifying regional employment center with neighborhoods that attract residents from around the region, across the country, and from all over the world. In less than three decades, the County has evolved from a community with fewer than 100,000 residents and 40,000 jobs to a major component of the Washington DC metropolitan area’s economic engine, with nearly 400,000 residents and about 150,000 jobs. The ability for Loudoun County to meet its full economic development potential and to remain a vibrant and growing community is not assured. Loudoun County, as well as the greater Washington DC metropolitan area, face unprecedented challenges to its economic competitiveness, as the role of the Federal government in the region diminishes, the regional employment base diversifies, and incomes grow more slowly. In order to continue to attract and retain a talented workforce and to sustain and strengthen existing communities, it is important to have a sufficient supply of housing that is affordable to individuals and families across the income spectrum. Loudoun County contracted with the George Mason University Center for Regional Analysis and Lisa Sturtevant & Associates LLC (GMU consulting team) to assess the County’s current and future housing needs. Section I of this report includes an analysis of current demographic, economic and housing market conditions and patterns of housing affordability in the County, and describes the current gaps between housing demand and supply. Section II includes an assessment of the economic and demographic forces that will drive future housing demand in Loudoun County, presents detailed forecasts of household growth and housing demand to 2040, and analyzes the potential implications of a gap between projected demand and anticipated supply in the County. KEY FINDINGS FROM THE HOUSING NEEDS ASSESSMENT SECTION I. CURRENT DEMOGRAPHIC, ECONOMIC AND HOUSING MARKET CONDITIONS AND TRENDS DEMOGRAPHICS Loudoun County is one of the fastest growing counties in the region, and along with rapid population growth has come significant changes to the socioeconomic characteristics of the population. Since 2000, the County has added more than 200,000 residents and the characteristics of County residents have changed. Some of the demographic trends in Loudoun County reflect broader, national demographic trends but other changes are indicative of the County’s unique history and place within the Washington DC metropolitan area. These changes have important implications for housing needs among Loudoun County residents. Young workers and families have been a big part of the County’s recent growth. Millennial households face greater economic challenges than did previous generations, and as a response to weaker economic prospects, many young adults have delayed marriage and childbearing, and therefore have also delayed home ownership or even moving out on their own. Loudoun County’s older adult (age 65+) population comprises a smaller share of the population than it does in some other jurisdictions in the Washington DC region. In recent years, however, the number of 2 Loudoun County Housing Needs Assessment seniors living in the County has increased significantly. This population growth is a result primarily of the aging in place of the existing population in their 50s and early 60s, but seniors have also moved into the County. Many seniors are living on their own and many live on fixed incomes. The County’s population has become increasingly racially and ethnically diverse. The Hispanic and Asian populations have been a major driver of population growth in the County over the past two decades. While there is significant diversity within the non-white population, Hispanic and Asian1 households are more likely than the white population to live in larger families, and Hispanic households tend to have lower incomes and are more likely to be renters compared to the white population. Figure A-1. Select Demographic Changes in Loudoun County, 2000-2014 Demographic Characteristic Population (2014) Percent Change (2000-2014) Total Population 351,753 107% Age Group Under 18 103,214 105% 18-24 24,394 154% 25-34 45,565 52% 35-44 62,257 72% 45-54 55,538 146% 55-64 32,793 183% 65+ 27,813 198% Race/Ethnicity White, non-Hispanic 205,198 52% Black, non-Hispanic 24,278 111% Asian, non-Hispanic 58,586 543% Other, non-Hispanic 16,230 316% Hispanic 47,280 369% Source: U.S. Census Bureau, 2000 decennial Census (SF1) and 2014 American Community Survey Note: Numbers may not sum to population total due to rounding. 1 In this report, “Asian” refers to a person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent, including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam. 3 Loudoun County Housing Needs Assessment ECONOMY Loudoun County’s economy has shifted from one with a relatively limited employment base to one that is driven more by population growth and looks more like the overall regional economy. Over the past 15 years, Loudoun County has accounted for a growing share of the Washington DC metropolitan area’s economic activity, with significant growth in the number of jobs in the relatively high-wage Professional & Business Services sector, as well as in the lower-wage Leisure & Hospitality and Education & Health Services sectors. More than half of all the nearly 150,000 jobs located in the County are held by people who live in the County. About 61,000 workers currently commute from other jurisdictions to jobs in the County. In- commuting rates vary across sectors, with greater shares of workers in the Construction and Transportation & Utilities sectors living outside of Loudoun County. More than half of the jobs in the Professional & Business Services sector are held by residents of the County. Nearly 70 percent of State & Local government jobs located in the County, including Loudoun County Public School employees, are held by County residents. Figure A-2. Largest Employment Sectors in Loudoun County and Share of Jobs Held by Residents Industry Sector Loudoun County Jobs (2014) Share of Jobs held by County Residents (2012-2014 average) Professional & Business Services 30,204 56% State & Local Government 18,565 69% Retail Trade 16,495 70% Leisure & Hospitality 16,005 73% Education & Health Services 13,530 64% Construction 13,424 30% Transportation & Utilities 9,645 33% Other 31,784 49% Total 149,650 56% Source: Quarterly Workforce Indicators and Quarterly Census of Employment and Wages; 2012, 2013 and 2014 American Community Survey microdata (average) 4 Loudoun County Housing Needs Assessment HOUSING MARKET Following the economic recession that began in late 2007 and officially ended in mid-2009, the housing market in Loudoun County stabilized relatively quickly and housing demand has been strong in recent years. Prices of single-family attached homes/townhomes and condominiums are lower in Loudoun County than they are in some other parts of the region, while the County’s single-family detached homes command a price premium. The biggest risk to the County’s for-sale market is the potential obstacles to home ownership among young, working households. There has been a significant increase in the number of renters in Loudoun County since the recession. Overall rents in the County are higher than the regional average, primarily because the rental stock in Loudoun County includes a significant share of larger units and single-family homes. The characteristics of renters have evolved in recent years. More families and older adults are renters than they were than in the past. Figure A-3. Existing Home Sale Prices and Rents, 2000 and 2014 2000 2014 Change (2000-2014) Median Existing Home Sales Price Condominiums $104,000 $249,900 140% Single-Family Attached $167,900 $375,000 123% Single-Family Detached $295,000 $550,000 86% All Home Types $192,500 $419,900 118% Median Gross Rent $954 $1,674 75% Source: Metropolitan Regional Information Systems (MRIS); U.S. Census Bureau, 2000 decennial Census (SF3), 2014 American Community Survey 5 Loudoun County Housing Needs Assessment HOUSING AFFORDABILITY Housing affordability is often measured in terms of cost burden. Cost burdened households are those that spend 30 percent or more of their income on housing, a threshold that has been used nationally to determine reasonable housing costs that leave sufficient resources for other household expenditures. Some segments of Loudoun County’s population are more likely to be housing cost burdened than others. Renters, in particular, are more likely than home owners to be cost burdened, and because Loudoun County has added thousands of renter households since the housing market downturn, the number of renters who are cost burdened has grown significantly in the County. Figure A-4. Cost Burdened Households by Selected Characteristics, 2012-2014 Percent Cost Burdened All Households 29.6% Household income <60% AMI 78.4% Under age 25 64.1% Living alone (age 65+) 51.9% Single-parent families 50.5% Renters 49.7% Hispanic households 49.7% Persons with disabilities 39.3% Source: U.S. Census Bureau, 2012, 2013 and 2014 American Community Survey microdata (average) Young adults, seniors living alone, Hispanic households, and people with disabilities are more likely to face housing affordability challenges compared to the overall population. Renters are also more likely than home owners to be cost burdened. Households with low incomes—below 60 percent of AMI—are most likely to face housing affordability challenges, with nearly 80 percent of these households paying 30 percent or more of their income on housing. The extent to which home owners are cost burdened depends not only on when they purchased their home—that is, at what price and interest rate—but also on their income trajectories. Home owners with declining, very low, or fixed incomes are most at risk of being cost burdened, with seniors and people with disabilities most vulnerable. The share of cost burdened home owners has declined in the County since the housing market downturn. Many would-be home owners have been excluded from the market as a result of rising home prices, flat incomes, and more restrictive lending. 6 Loudoun County Housing Needs Assessment CURRENT HOUSING GAPS Estimates of the current housing gaps in Loudoun County suggest the greatest needs among low- and moderate-income renters, though there are also unmet needs among potential home owners. Based on an analysis of renter cost burden in Loudoun County, there is currently a potential unmet need of about 11,200 rental units. Over 90 percent of the estimated unmet rental housing needs are among households with incomes below 80 percent of AMI ($87,350 for a family of four). Three quarters (75 percent) of the estimated unmet rental demand is among households with incomes below 60 percent of AMI ($65,520 for a family of four). Renters are significantly more likely than current home owners to be cost burdened. However, a gap also potentially exists when it comes to home ownership. Indeed, some of the County’s current renter households might have become home owners if there were sufficient home ownership opportunities. Home ownership rates in Loudoun County remain below long-term, historic levels. If the County were at a more typical, long-term home ownership rate, it would need an additional 3,400 home ownership units, including 1,400 home ownership units affordable to households with incomes below the area median income ($109,200 for a family of four). SECTION II. FORECASTS OF HOUSING DEMAND This housing needs assessment for Loudoun County includes forecasts of housing demand over the 2015 through 2040 period. As part of these forecasts, there is an analysis of the future economic and demographic forces that likely will drive future demand for housing within the County, as well as an assessment of the household characteristics, household incomes and preferred housing types of future households suggested by the forecasting model. The GMU consulting team’s employment-driven approach to forecasting housing demand is different from the methodology used to generate forecasts prepared by Loudoun County for the Metropolitan Washington Council of Governments (MWCOG) cooperative forecasting process because the two forecasting processes serve different purposes. The GMU methodology is a regional forecasting model based on local and regional employment growth and demographic trends. There are two components of housing demand estimated as part of this model: 1) employment-driven housing demand resulting from growth in the labor force and 2) demographic-driven housing demand resulting from anticipated growth in the non-working population. Employment growth is the primary driver of the GMU forecasts of housing demand. The GMU employment-driven forecasts are intended to reflect an assessment of future housing demand associated with employment growth which is not limited by the amount or type of housing supply suggested by current County land use plans. Instead, the GMU forecasts examine projected future employment growth, analyze expected socioeconomic characteristics of future households, and assess the amount and types of housing that would be needed in Loudoun County to accommodate future workers and the population over the forecast period. 7 Loudoun County Housing Needs Assessment The GMU forecasts are based on analysis of U.S. Census Bureau American Community Survey data, as well as data from IHS Economics and MWCOG. In addition, several key assumptions drive these employment- driven housing demand forecasts. 1. First, these forecasts assume that local and regional employment growth will drive the majority of housing demand in Loudoun County in the future. 2. Second, these forecasts assume that commuting patterns into and out of Loudoun County will not change over the forecast period. 3. Third, these forecasts assume that households with particular characteristics will not have different housing preferences than what are observed currently. Changes to any of the assumptions would result in different results than what are presented from this forecasting model. If, for example, there is a sustained, long-term shift in preferences for more multi- family and/or rental housing, then the GMU forecasts will have underestimated the future demand for this type of housing in the County. While these are the three primary assumptions driving the housing demand forecasts, the forecasting model includes other assumptions about the age and household composition of future workers, and retirement and migration rates. Details about the forecasting methodology are included in the Appendix. The GMU employment-driven forecasts of housing demand were compared to forecasts prepared for the MWCOG Round 9.0 Cooperative forecasting process. The Round 9.0 forecasts are Loudoun County's most recently released forecasts; the County submitted these forecasts to MWCOG on March 21, 2016. The County/MWCOG forecasts are land use plan-based forecasts. The land use plan-based forecasts reflect recent development activity, market conditions, rezonings, comprehensive plan amendments, and Metrorail, estimated to arrive in Loudoun County in 2020. The County/MWCOG forecasts also reflect approved projects remaining to be built, the County's planned land use, the County's long-range supply of land, and land use/development constraints. Results from Forecasts of Household Growth and Housing Demand The housing demand forecasts includes estimates of future households and housing units. Given the GMU forecasting approach, and given the assumptions about employment growth, in-commuting rates, housing preferences, and other factors, these employment-driven housing demand forecasts suggest there will be a demand for 66,604 net new housing units in Loudoun County between 2015 and 2040 to accommodate 64,355 new households. Approximately 2,250 new housing units are expected to be vacant units based on typical vacancy rates. The GMU employment-driven housing demand forecasts suggest faster household growth and stronger demand for single-family housing than what is suggested by the County’s land use plan-based forecasts. Households. The GMU employment-driven forecasts suggest a total of 185,460 households in Loudoun County in 2040, while the County/MWCOG forecasts estimate a total of 167,590 households in 2040, a difference of 17,870 households. The GMU employment-driven forecasts suggest an average annual household growth rate of 2.1 percent over the 2015 through 2040 period, while the County’s land use 8 Loudoun County Housing Needs Assessment plan-based household forecasts suggest an annual household growth rate of 1.5 percent over the 2015 through 2040 period. Between 2010 and 2015, the number of households in the County increased by 3.0 percent. Housing Units. The GMU employment-driven forecasts suggest a total of 193,680 housing units in 2040 (including occupied and vacant housing units), while the County/MWCOG forecasts suggest a total of 175,380 housing units in 2040, a difference of 18,300 housing units. There are differences in the GMU employment-driven housing demand forecasts and the land use plan- based forecasts in terms of unit types. The GMU employment-driven housing demand forecasts include demand for 101,120 single-family detached units, 61,450 single-family attached units/townhomes and 31,110 multi-family units by 2040. These employment-driven housing demand forecasts suggest more demand for single-family housing and less demand for multi-family housing compared with what is forecasted in the County/MWCOG land use plan-based forecasts. Specifically, these employment-driven housing demand forecasts suggest that housing that can be accommodated under current County land use will result in a gap of 19,090 single-family detached units, a gap of 11,380 single-family attached units/townhomes, and a surplus of 12,170 multi-family units by 2040. The GMU employment-driven housing demand forecasts indicate substantial growth in higher-income households and family households, which are two key factors in the relatively strong demand for single- family housing over the 2015 through 2040 period. Year GMU Employment- Driven Household Forecasts Loudoun County / MWCOG Land Use Plan-Based Household Forecasts Difference 2020 136,270 137,910 1,640 2025 150,610 150,760 150 2030 164,640 158,570 (6,070) 2035 175,860 164,330 (11,530) 2040 185,460 167,590 (17,870) Figure A-5. GMU Employment-Driven Household Forecasts and County/MWCOG Land Use- Based Household Forecasts, 2020 - 2040 9 Loudoun County Housing Needs Assessment Figure A-6. Comparison of GMU Employment-Driven Housing Unit Forecasts and Loudoun County/MWCOG Land Use Plan-Based Housing Unit Forecasts Year GMU Employment-Driven Housing Unit Forecasts Single-Family Detached Single-Family Attached Multi-Family Total 2020 75,900 44,350 22,520 142,770 2025 83,650 49,070 24,890 157,610 2030 90,700 53,990 27,250 171,940 2035 96,600 58,050 29,190 183,840 2040 101,120 61,450 31,110 193,680 Loudoun County / MWCOG 9.0 Land Use Plan-Based Housing Unit Forecastsa Single-Family Detached Single-Family Attached Multi-Family Total 2020 71,990 46,850 25,140 143,980 2025 76,940 49,540 31,000 157,480 2030 79,410 49,840 36,520 165,770 2035 80,860 50,070 40,980 171,900 2040 82,030 50,070 43,280 175,380 Difference Single-Family Detached Single-Family Attached Multi- Family Total 2020 (3,910) 2,490 2,620 1,210 2025 (6,700) 470 6,110 (130) 2030 (11,290) (4,150) 9,270 (6,170) 2035 (15,740) (7,980) 11,780 (11,940) 2040 (19,090) (11,380) 12,170 (18,300) Source: Metropolitan Washington Council of Governments Cooperative Forecasts Round 9.0; Loudoun County Department of Planning and Zoning; GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC aThe single-family attached and multi-family MWCOG forecasts each include half of the forecasted multi-family stacked housing units, which includes stacked townhomes, one-over-twos, and two-over-twos. The Census permitting data generally includes these units as multi-family units, but respondents in the American Community Survey, which forms the basis for the assumptions in this model, will likely split their responses between single-family attached (including buildings with 2-4 units) and multi-family buildings (5+ units). 10 Loudoun County Housing Needs Assessment Forecasts of Characteristics of Future Households and Housing Units These housing demand forecasts, based on local and regional employment growth and assumptions about in-commuting, housing preferences and other economic and demographic trends, suggest that there will be significant demand for housing from young adults over the next 10 years, though housing demand will come from older households later in the forecast period. The demand for housing in Loudoun County from individuals under 35 years old is projected to increase over the next decade, with an estimated 15,000 new young adult households coming to the County between 2015 and 2025. By 2025, most Millennials will be over 35 years old, and as a result, there is expected to be strong demand for housing from people between the ages of 35 and 50 over the 2025 to 2040 period. The generation that follows is expected to be somewhat smaller, and the key driver of housing demand in Loudoun County after 2025 will be from aging Millennials. Generation Z, those born in the first two decades of the 21st Century (age 16 and younger now), will start forming households around 2025. This population in the Washington DC metropolitan area will be somewhat smaller than the Millennial population as a result of lower birth rates as well as changes in the types of jobs in the region that will be less likely to attract younger workers. The demand for housing in Loudoun County from people under 35 years old is projected to decline modestly between 2025 and 2040 because of these two factors. Based on an assessment of population trends and assumptions about migration rates into and out of the County, the aging of Loudoun County’s current population will drive housing demand for older adults. Over the forecast period, the demand for housing in Loudoun County from households headed by someone age 65 years or older is projected to increase substantially. The forecasts suggest there could be 11,900 more 65+ households in 2040 than in 2015. The growth of the older adult population in Loudoun County is driven primarily by the aging of the County’s current Baby Boomer population. Even with the fast growth, demand for housing from the senior population will be relatively lower in Loudoun County than in many other parts of the Washington DC region. These housing demand forecasts suggest there will be increasing demand for housing in Loudoun County from single-person households, but larger households will remain the main source of demand throughout the forecast period. Housing demand in Loudoun County will include growth in the number of households of all sizes. The fastest rate of growth is expected among single-person households. Based on these forecasts, it is expected that the County will have 13,290 more single-person households in 2040 than it does in 2015. Demand from households with four or more people—primarily family households— will account for more than a third of future housing demand in the County, or nearly 23,000 new households between 2015 and 2040. This housing demand forecasts model, which includes assumptions that in-commuting rates and housing preferences will not change over the forecast period, suggests that home ownership rates in Loudoun County will rise slightly over the next 25 years. Despite recent declines in home ownership rates nationally, regionally and locally, the demand for home ownership in Loudoun County is expected to be strong over the forecast period. Based on these forecasts, demand for home ownership in Loudoun County is strongly correlated with the expected number of high-income, working households that are projected to want to live in the County. These forecasts suggest a demand for housing in Loudoun County from about 50,650 new home owners and from about 13,706 new renter households over the 2015 to 2040 period. 11 Loudoun County Housing Needs Assessment These employment-driven housing demand forecasts assume that housing preferences for households will not change over the forecast period, given a household’s particular household characteristics and income. Given this assumption, these housing demand forecasts suggest strong demand for single-family housing in Loudoun County over the next 25 years. Similar to preferences for home ownership, preferences for different types of homes is strongly correlated with age, household composition and size, and household income. Based on the characteristics of future households forecasted by this model, there will be strong demand in Loudoun County for single-family detached homes, with demand from 32,784 households for single-family detached homes over the 2015 to 2040 period. The forecasts suggest a demand from 21,395 households for new single-family attached homes (townhomes) in Loudoun County between 2015 and 2040. The demand for multi-family homes (i.e. residences in buildings with 5+ units) will grow at about the same rate as the demand for townhomes, with demand from 10,178 households for new multi-family units. In addition to the housing units needed for future households, there will be a need for additional units to account for typical housing vacancy rates in the County. Given assumptions about employment growth, in-commuting patterns, retirement patterns, and migration rates, these housing demand forecasts suggest there will be a need for housing in Loudoun County for households all along the income spectrum, including workers in low-wage jobs and non- workers (i.e. seniors and persons with disabilities) living on fixed-incomes. Between 2015 and 2040, there will be demand for housing in Loudoun County from 3,200 new households with incomes below 30 percent of area median income (AMI), 3,470 new households with incomes between 30 and 49 percent of AMI, 3,120 new households with incomes between 50 and 59 percent of AMI, and 2,200 new households with incomes between 60 and 69 percent of AMI. These lower-income households include workers in the retail, hospitality and other lower-wage sectors, as well as seniors and persons with disabilities who have limited resources. Current lower-income households in Loudoun County are significantly more likely to be cost burdened than higher-income households, and the County currently has a deficit of housing affordable to this population. The largest and fastest growing source of demand for housing in Loudoun County is projected to come from higher-income households, including many workers in the Professional & Business Services sector. These forecasts suggest demand for housing in Loudoun County from nearly 30,000 households earning 150 percent or more of AMI. In these forecasts, housing affordability remains a significant challenge for low- and moderate-income households in Loudoun County. The GMU employment-driven housing demand forecasts suggest that in 2040, 70 percent of households with incomes below 60 percent of AMI will be cost burdened, paying 30 percent or more of their income on housing in the County. This projected rate of cost burden in 2040 is virtually unchanged from the 2015 cost burden rate. 12 Loudoun County Housing Needs Assessment Figure A-7. Summary of GMU Employment-Driven Housing Demand Forecasts, 2015 to 2040 Household Characteristics 2015 to 2040 Increase in Households in Loudoun County Age of Household Head <35 +11,010 35-44 +19,610 45-54 +15,250 55-64 +6,590 65+ +11,900 Work Status Worker with a payroll job +55,440 No workers with a payroll job +8,910 Disability Status 1+ members of the household w/ a disability +8,210 Household Size 1 Person +13,290 2 People +16,610 3 People +11,780 4+ People +22,680 Tenure Owners +50,650 Renters +13,700 Unit Type Single-Family Detached +32,780 Single-Family Attached/Townhome +21,400 Multi-Family (5+ unit building) +10,180 Household Income <30% AMI +3,200 30-49% AMI +3,470 50-59% AMI +3,120 60-69% AMI +2,220 70-79% AMI +2,510 80-99% AMI +5,690 100-119% AMI +6,450 120-149% AMI +7,890 150%+ AMI +29,810 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC 13 Loudoun County Housing Needs Assessment Section I: Current Demographic, Economic and Housing Market Conditions Loudoun County has evolved from a small, suburban bedroom community to a major center for economic growth that attracts a diverse population and workforce which has translated into growing and transforming housing needs. The County has tremendous economic development capacity and can continue to be a thriving, vibrant community; however, there are challenges to the County’s prospects for meeting its full economic potential and for supporting robust growth in the years to come. Like so many other jurisdictions in the Washington DC metropolitan area2, Loudoun County faces the challenge of ensuring that there is a sufficient supply of housing to meet the needs of the growing population and workforce. With the adoption of an amendment to its comprehensive plan in 2007, elected officials and local leaders formally recognized the challenges associated with ensuring that there are housing options for all people who live and/or work in Loudoun County. This section of this report provides context for the demographic, economic and housing market conditions—both local and regional—that will shape future housing demand and supply in the County. Furthermore, this section includes a detailed analysis of current housing affordability in Loudoun County and the unmet housing needs that currently exist. Population and Demographics In the 1990s and 2000s, Loudoun County’s population grew at a remarkable average rate of seven percent annually. The rate of population growth has slowed somewhat since 2007, but Loudoun County continues to add thousands of new residents each year. Just as important as the dramatic increase in the size of the population is the rapidly changing demographic characteristics of the County’s residents. Many of these changes reflect broader national demographic trends, but these shifts can seem accelerated because Loudoun County has grown so quickly. Key Demographic Trends Young adult households. In the years ahead, more young adults will be forming their own households and will want to move into home ownership.3 But nationally Millennial households have entered a labor market with fewer job opportunities and slower-growing wages than did past generations. As a response to weaker economic prospects, many young adults have delayed marriage and childbearing. These trends suggest that a growing number of young adult households in the Washington DC metropolitan area and in Loudoun County will have lower incomes than past generations, which will mean growing demands for smaller, more modestly-priced housing. Older adults. Another important national demographic trend that has implications for housing demand is the aging of the population. The leading edge of the Baby Boom population has reached its mid-60s and over the coming decades the senior population will grow much faster than the population under age 65. While Loudoun County’s senior population comprises a somewhat smaller share than it does in other 2 The Washington DC metropolitan area is comprised of the following jurisdictions: District of Columbia; City of Alexandria, Arlington County, Clarke County, Culpeper County, Fairfax County, City of Fairfax, City of Falls Church, Fauquier County, Loudoun County, City of Manassas, City of Manassas Park, Prince William County, Rappahannock County, Spotsylvania County, Stafford County, City of Fredericksburg, and Warren County in Virginia; Calvert County, Charles County, Frederick County, Montgomery County, and Prince George's County in Maryland; and Jefferson County in West Virginia. In this report, Washington DC metropolitan area and Washington DC region are used interchangeably. 3 Several national surveys of Millennials have confirmed a strong desire for home ownership among this population. See, for example, Fannie Mae’s National Housing Survey available online at http://www.fanniemae.com/portal/research-and- analysis/housing-survey.html 14 Loudoun County Housing Needs Assessment jurisdictions in the Washington DC region, the number of older adults living in the County will increase substantially in the coming decades. This population growth is a result primarily of the aging in place of the existing population in their 50s and early 60s, but seniors have also moved into the County. As seniors comprise a larger share of the County’s population there will be more demand for a variety of housing types that can facilitate aging within the community. Racial/ethnic minorities. Loudoun County’s population is growing more racially and ethnically diverse, like much of the rest of the country. The well-documented trend toward greater racial diversity is largely a result of a greater share of childbearing-age women and higher fertility rates among the non-white population, specifically the Hispanic and Asian populations, which is observed both nationally and locally. While there is significant diversity within the non-white population, Hispanic households tend to have lower incomes and are more likely to be renters compared to the white population. Asian households are more likely than Hispanic households to have higher incomes and be home owners, though there is a fair amount of variation among the Asian population. As Loudoun County’s population has become more racially and ethnically diverse, housing needs in the County have also evolved. Population Loudoun County’s population has grown dramatically since the middle of the last century. In 1950, the County’s population was just over 20,000. In 2016 the Loudoun County Department of Planning and Zoning estimates that Loudoun County has a population of 373,694, reflecting a nearly 18-fold increase. The County’s fastest population growth occurred during the late 1990s and the early 2000s when annual population growth rates averaged seven percent (Figure 1).4 In recent years, the pace of annual growth has slowed slightly, but Loudoun County’s population continues to increase at a faster rate than other jurisdictions in the Washington DC metropolitan area. Over the past 15 years, the pace of new housing construction has been brisk, but in some important ways it has failed to keep up with the changing population’s needs. Since 2000, the County added 204,100 people and 67,600 housing units. Over that time, Loudoun County’s population grew at an average of 5.1 percent annually while the number of housing units grew by 4.7 percent annually (Figure 2). The number of housing units would grow more slowly than the population if vacancy rates were declining and/or household sizes were increasing. Vacancy rates fluctuated only slightly over this time period. In 2000, the housing vacancy rate in Loudoun County was 4 Additional detailed data on all topics covered in this report are included in the Appendix. Figure 1. Population, 1990-2016 15 Loudoun County Housing Needs Assessment 3.6 percent. Since 2006, vacancy rates have been between 4.3 and 4.4 percent. Therefore, differences in population and housing unit growth rates can more likely be attributed to increases in average household sizes in the County. In 2000, the average household size for owner-occupied housing was 2.92. For renter-occupied housing, the average household size was 2.42. By 2014, the average household sizes in Loudoun County had increased to 3.05 among owners and 2.70 among renters. Increases in the number of family households, growth in the foreign- and native-born minority populations, more households doubling up (i.e. two or more families or sets of unrelated individuals sharing one home), and an expansion of the types of households that rent all contribute to the increases in household sizes within the County. About American Community Survey Data Data from the U.S. Census Bureau’s American Community Survey (ACS) are used in this report to describe many of the characteristics of Loudoun County’s residents and workers. The ACS is the best source of demographic data for local jurisdictions, and the most recent ACS data is for 2014. In this report, 2014 data are used to describe broad characteristics, such as age, race and home ownership rate. Because of the relatively small sample size, the 2014 one-year data are often not useful for examining very detailed characteristics. Therefore, for detailed tabulations, a file containing three years of ACS data—2012, 2013 and 2014—was created and was used to analyze more detailed characteristics such as household income by race. The statistics based on the three years of ACS data should be interpreted as an average of the characteristic over the 2012-2014 period. In the text, unless otherwise specified, the data presented are from the 2014 one-year ACS file. In all charts, the data source is included at the bottom. For more information on the ACS, see http://www.census.gov/programs-surveys/acs/. Figure 2. Population and Housing Units, 1990-2016 16 Loudoun County Housing Needs Assessment Age of the Population Loudoun County’s age distribution reflects its large number of family households. The County’s population has a larger share of children under age 18 than any other jurisdiction among the comparable jurisdictions analyzed for this report.5 In Loudoun County, 29.4 percent of the population is under age 18 (Figure3). In Fairfax County and in Montgomery County, about 24 percent of the population is under 18; in Prince William County, the share is 28.1 percent. Loudoun County also has a greater share of 35-to-44 year olds than many of the other comparable jurisdictions, but the share of the population in this age group has declined in recent years. In 2014, 17.7 percent of Loudoun County’s population was between the ages of 35 and 44. The share was 14.6 percent in Fairfax County and 15.4 percent in Prince William County. Arlington County’s share was the closest to Loudoun County’s, at 17.0 percent. The Millennial population is not as well represented in Loudoun County.6 The 25-to-34 year old population comprised 13.0 percent of Loudoun County’s population in 2014, compared with 14.2 percent of Fairfax County’s population, 14.5 percent of Prince William County’s population and 13.5 percent of Montgomery County’s population. In Arlington County, 25-to-34 year olds were 26.8 percent of the overall population. The 18-to-24 year old population was 6.9 percent of Loudoun County’s population in 2014, while the shares were close to or above eight percent in comparable jurisdictions. Compared to other jurisdictions in the region, older adults comprise a smaller share of the overall population in Loudoun County. In 2014, about eight percent of the County’s population was age 65+ and 17.2 percent was age 55+. By contrast, in Fairfax County, 11.5 percent of the population was age 65+ and nearly a quarter (23.9 percent) was age 55+. In Montgomery County, 13.7 percent of the population was age 65+ and 26.5 percent was age 55+. Like in other jurisdictions, the fastest growing age group in Loudoun County is the older adult population. The size of the overall population in Loudoun County more than doubled between 2000 and 2014, but the population age 65+ nearly tripled. The 85+ population grew even faster. The older adult population in Loudoun County is still relatively small. In 2000, people age 65+ accounted for 5.5 percent of the 5 In this report and in the Appendix tables, characteristics of Loudoun County are compared to those in the Washington DC metropolitan area, as well as to Fairfax, Prince William and Arlington counties in Virginia and Montgomery and Frederick counties in Maryland. 6 There is no universally accepted definition of the Millennial population, but many demographers define Millennials as people between the ages of 18 and 34. Figure 3. Age Distribution, 2014 17 Loudoun County Housing Needs Assessment population but in 2014 their share was 7.9 percent (Figure 4). As the Baby Boomer population ages, the older adult population in Loudoun County will comprise an ever growing share of the overall population. The older adult population has diverse housing needs, including needs for accessible homes. The growth of the senior population in Loudoun County has implications for the size of the population with disabilities since older adults are more likely to have disabilities than are younger people. In 2014, 30.0 percent of the 65+ population in Loudoun County had at least one disability. The most common disabilities among seniors in the County are ambulatory and independent living difficulties.7 The recent increase in the older adult population in Loudoun County is primarily a result of a population that is aging in place, rather than the movement of older people into the County. People who move tend to be younger. More than three-quarters of the people who moved into or within Loudoun County over the 2012 to 2014 period were under age 45, compared to 67 percent of existing residents (Figure 5). Only 16.1 percent of movers were between the ages of 45 and 64, compared to 26.0 percent of non-movers. However, there 7 The Census Bureau’s American Community Survey includes six disability types: Hearing difficulty (deaf or having serious difficulty hearing); Vision difficulty (blind or having serious difficulty seeing, even when wearing glasses); Cognitive difficulty (because of a physical, mental, or emotional problem, having difficulty remembering, concentrating, or making decisions); Ambulatory difficulty; (having serious difficulty walking or climbing stairs); self-care difficulty (having difficulty bathing or dressing); and Independent living difficulty (because of a physical, mental, or emotional problem, having difficulty doing errands alone such as visiting a doctor’s office or shopping). Figure 4. Age Distribution, 2000 and 2014 Figure 5. Age Distribution of Recent Movers and Non-Movers, 2012-2014 18 Loudoun County Housing Needs Assessment is evidence that some seniors are moving into the County in their later years; just over seven percent of recent movers into the County were age 65 or older, which is the same share as among non-movers. Age of Household Heads In addition to assessing trends in the age of the overall population, it is also helpful to look at the ages of people who form households.8 Household formation rates are important for understanding housing demand, and these rates vary by age group and fluctuate depending on economic and housing market conditions. Households are formed when people leave their parents’ homes or move out from a roommate situation and into their own home. The number of households can shrink when people living alone get married or when young adults who had been living on their own move back home. Since the recession, household formation rates have fallen nationally among younger households. This decline has primarily been the result of more young adults living with their parents.9 Loudoun County has experienced the same decline in household formation rates among people in their 20s and early 30s that has been observed nationally. There is, however, some evidence that household formation rates are increasing among this population. A “headship rate” is defined as the ratio of the number of household heads to the size of the population. The higher the rate, the more likely that segment of the population is to be the head of a household (as opposed to a spouse, roommate or child, for example.) The headship rate for 25-to-34 year olds fell to a low of 0.38 in 2012 and 2013 but rose slightly to 0.41 in 2014. (The rate had been 0.45 in 2000.) Headship rates declined for most age groups in the County, but the decline was more dramatic for the 25-to-34 year old population. As a result of changes in headship rates and overall population trends, the share of households headed by people age 25 to 34 fell in Loudoun County after the economic and housing market downturn but has been rising slowly since 2012. In 2006, more than one in five households in Loudoun County (21.2 percent) was headed by a person between the ages of 25 and 34. In 2012, that share was just 14.9 percent, but in 2014 it had risen slightly to 16.1 percent. 8 A household is defined as a housing unit occupied by one or more people who may or may not be related. 9 Fry, Richard. 2016. For the First Time in Modern Era, Living with Parents Edges out Other Living Arrangements for 18-to-34 Year Olds. Washington, DC: Pew Research Center. Available online http://www.pewsocialtrends.org/2016/05/24/for-first-time- in-modern-era-living-with-parents-edges-out-other-living-arrangements-for-18-to-34-year-olds/ Millennials & Housing “During the downturn, an unprecedented share of young adults did choose to live with their parents rather than strike out on their own, hindering household formation and economic activity. As economic prospects improve, however, Millennials will emerge from their parents’ basements.” Millennials and Their Homes: Still Seeking the American Dream, The Demand Institute Older Adults & Housing “With their rapidly growing 50-and- over populations, communities across the country must ensure that their older residents have the housing options and supportive services they need to live safely and independently for as long as possible. Meeting this challenge…requires enhanced federal supports as well as harnessing the creativity and entrepreneurial energy of businesses, nonprofits, and philanthropies to expand the options for aging in community.” Housing America’s Older Adults, Harvard University Joint Center for Housing Studies 19 Loudoun County Housing Needs Assessment Race/Ethnicity One of the biggest demographic changes in Loudoun County and in much of the country has been the growth of the non-white population. In 2000, non-Hispanic white residents comprised 79.6 percent of Loudoun County’s population. By 2014, that share had fallen to 58.4 percent (Figure 6). Over that period, growth of the Asian and Hispanic population far outpaced overall population growth. The black population grew at about the same rate as the overall population.10 In 2000, the Asian population comprised just 5.4 percent of Loudoun County’s population. In 2014, the share was 16.6 percent. The Hispanic population increased from 5.9 percent of the population in 2000 to 13.4 percent in 2014. The Asian11 and Hispanic12 populations in Loudoun County reflect a wide range of demographic and economic characteristics. Asian residents in the County are more likely than Hispanic residents to be recent immigrants. Nearly two-thirds of Loudoun County’s Asian residents were born outside the U.S., compared with less than half of the County’s Hispanic residents. Going forward, a substantial share of the County’s population growth will be among the non-white population, including not only new immigrants but also increasingly second and third generation immigrants. The primary reason why population growth has been and will continue to be driven by the non-white population is two-fold: 1) compared to white women, Hispanic and Asian women are more likely to be of childbearing age and 2) fertility rates among the non-white population are higher than they are for the white population. 10 The U.S. Census Bureau asks respondents to indicate whether or not they are Hispanic, and then to indicate the racial category that best describes them (e.g. white, black, Asian). In this analysis, white, black, Asian and Other racial categories include only people who are not Hispanic. All people of Hispanic origin, regardless of the race they indicated, are classified as Hispanic in this analysis. 11 “Asian” refers to a person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent, including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam. About 40 percent of individuals identifying as Asian in Loudoun County are Indian. 12 The category “Hispanic” is self-reported by responds to the ACS and is generally considered a heritage, nationality group, lineage or ethnicity, rather than a race. However, for most reports on demographics, “Hispanic” or “Latino” is treated as a separate racial category. The largest group of Hispanic residents in Loudoun County is Salvadoran (about 15 percent). Figure 6. Race/Ethnicity, 2000and 2014 Racial Minorities & Housing “Significant changes are being powered by fast-growing minority populations—including Hispanics, Asians, and people of two or more races—which will double in size over the next 40 years. Housing will need to be made appropriate for these populations. Their particular preferences and tastes may be for multigenerational housing or particular kinds of communities. Huge amounts of attention were given to the baby boomers when it was learned that they were an important market. That same kind of focus needs to be given to these young, more diverse folks.” Diversity Explosion, William Frey 20 Loudoun County Housing Needs Assessment Households and Families Loudoun County has a relatively large share of families with children. Over 40 percent of Loudoun County households are married couples with children (Figure 7). About eight percent are single-parent households. Loudoun County has a larger share of married couple families with children than any of the comparable jurisdictions. For example, in Fairfax County, just 29.0 percent of households are married couples with children. The share in Prince Willian County is 34.0 percent. Married couple households without children make up about a quarter of all households in Loudoun County. Since 2006, the number of family households without children and the number of non-family households (i.e. households of two or more people where no one is related by marriage, birth or adoption) have grown faster than overall households. In 2014, the average family household had 3.4 people while the average non-family household (including people living alone) had 1.3 people. The numbers of Hispanic and Asian households have increased dramatically in recent years and, in general, these households tend to be larger than white households. Over the 2012-2014 period, the average white household had 2.77 persons (Figure 8). By contrast, the average Asian household was 3.59 persons and the average Hispanic household had 3.63 persons. Asian households are much more likely than households of other races to be multi-generational. Less than three percent of white households in Loudoun County were multi-generational households.13 Slightly more than three percent of Hispanic households lived in multi-generational households, while 8.5 percent of Asian households were multi- generational in 2014. 13 The Census Bureau defines a multi-generational household as one that contains three or more parent-child generations; for example, the householder, child of householder (biological, stepchild or adopted child), and grandchildren of householder. A householder with a parent or parent-in-law of the householder and a child of the householder may also be a multi-generational household Figure 7. Household Type, 2014 Figure 8. Household Size by Race/Ethnicity, 2012-2014 21 Loudoun County Housing Needs Assessment Household Income Over the past decade, Loudoun County has consistently ranked at the top of the list of highest-income counties in the U.S.14 In 2014, the median household income in Loudoun County was $122,294 (2014 dollars). More than one in five households (21.7 percent) had a household income of $200,000 or more in 2014 (Figure 9). The Washington DC metropolitan area includes many high-income jurisdictions, and the share of higher income households in Loudoun County does not differ much from other local counties. For example, 18.6 percent of Arlington County households and 20.8 percent of Fairfax County households have incomes of $200,000 or higher. Loudoun County differs from other local jurisdictions because it has a much smaller share of low- and moderate-income households. Just 37.3 percent of households have incomes below $100,000, the lowest share among the comparable jurisdictions. In Arlington County and Fairfax County, about 45 percent of households have incomes below $100,000. More than half of households in Prince William County, Virginia and in Montgomery and Frederick counties in Maryland have incomes below $100,000. There are important differences in the household incomes of different segments of the Loudoun County population. The median household income in Loudoun County over the 2012-2014 period was $121,361 (in 2015 dollars). Over the same three- year period, the median household income of non-Hispanic white 14 In 2014, Loudoun County had the second highest median household income nationally, after the City of Falls Church, which is treated as a county-equivalent by the Census Bureau. Household Income Median household income is used to measure the overall income available to a typical household, and includes both wage and non-wage income (e.g. investment income, income from rental properties, retirement income.) A more detailed discussion of wages is included in the section below on Employment & the Economy. Figure 9. Household Income (2014 $s), 2014 Figure 10. Household Income by Race/Ethnicity, 2012-2014 (2015 $s) 22 Loudoun County Housing Needs Assessment households in Loudoun County was $128,690 and the median household income for Asian households was $135,929 (Figure 10). Black and Hispanic households had lower median household incomes. Over the 2012-2014 period, the median household income for black households in Loudoun County was $101,467 and the median household income of Hispanic households was $84,059. (All values are in 2015 dollars.) There are also significant differences in the household incomes of home owners and renters in the County. Over the 2012-2014 period, the median household income was $139,744 (in 2015 dollars) for home owners, compared to a median of just $73,001 (in 2015 dollars) for renters. Housing Tenure Loudoun County households are predominantly home owners but there has been a shift towards more renters in recent years. Just over three quarters of households in the County are owners and one- quarter are renters. In 2006, the home ownership rate in the County was 84.8 percent and only 15.2 percent of Loudoun County households were renters (Figure 11). Home ownership rates are highly dependent on the age of the household head. Only 58 percent of households headed by a person age 25 to 34 are home owners, compared to 85 percent of households where the householder is in his or her 50s. The home ownership rate has fallen across age groups since the housing market downturn, but the decline has been most precipitous for younger households. Among 25-to-34 year olds, the home ownership rate fell nearly 20 percentage points between 2006 and 2014. There are several reasons why home ownership rates have declined so much for people in this age group. First, this group of young adults left school and entered the labor market in the wake of the Great Recession, facing relatively few job prospects and stagnant wages. As a result, they have lower incomes than prior generations did at this age. Second, as a result of the housing crisis, mortgage lending requirements tightened considerably, making it significantly harder to qualify for a home loan in the post- recession years. Third, while incomes were lower and credit was harder to access, Millennials also had higher levels of student debt than did prior generations. All of these factors—accompanied by limited housing supply and rising housing affordability challenges in recent years—have contributed to lower home ownership rates among young adult households. However, it is very possible that there will be a turnaround in home ownership rates. Mortgage rates are still at historically low levels and incomes are rising, which suggests potential for increases in home ownership. Figure 11. Housing Tenure, 2006 and 2014 23 Loudoun County Housing Needs Assessment Length of Residence in Current Home The Washington DC metropolitan area has a reputation as being a very transient area, and Loudoun County’s population reflects that transiency, particularly among renters. Over the 2012-2014 period, more than one in five (21.4 percent) households in Loudoun County had moved into their current home within the prior two years (Figure 12). The share of recent movers is very different for Loudoun County home owners versus renters. While 12.0 percent of home owners moved into their current home within the prior two years, the share is 52.7 percent for renter households. This rise in the number of renters has contributed to a growing share of Loudoun County’s residents who are new to the County. It also means that many of these residents are less tied to the County through home ownership. Housing Type The majority of the existing, occupied housing stock in Loudoun County is single-family housing. In 2014, 54.3 percent of all housing units were single-family detached homes; 29.4 percent were single-family attached or townhouses (including buildings with two to four units). Only 15.7 percent of the County’s current housing stock is multi-family and the majority of that (nearly 70 percent of all multi-family units) is in buildings with fewer than 20 units (Figure 13).15 There has been a slight shift towards more multi-family units since 2006. In 2006, 12.9 percent of housing units in Loudoun County were in multi-family (i.e. 5+ unit) buildings; in 2014 the share of multi-family units had increased to 15.7 percent. However, large multi-family buildings still represent a very small share of the County’s housing units. Units in multi- family buildings with 50 or more units 15 The Census Bureau identifies the number of units in a given building, rather than the entire property. If a unit is in a building with 15 units but there are several buildings that are part of the property, that unit is still classified as being a multi-family unit in a building with fewer than 20 units. Figure 13. Housing Units by Type, 2006 and 2014 Figure 12. Year Moved into Current Home, 2012-2014 24 Loudoun County Housing Needs Assessment account for only 3.3 percent of housing units in the County. Loudoun County has a greater share of single-family detached homes than Fairfax or Montgomery counties, but both Prince William County, Virginia and Frederick County, Maryland have a higher proportion of single-family detached homes in the housing stock. Loudoun County has a greater share of townhouses than any of the comparable jurisdictions. Loudoun County homes tend to be relatively large. Nearly half of the housing units in the County (48.3 percent) have four or more bedrooms. By contrast, only one third of all occupied housing units in the Washington DC metropolitan area have four or more bedrooms. The prevalence of larger homes in the County is not particularly surprising given the suburban development patterns, the high home ownership rates and a relatively high share of families with children. There has been no significant change in the share of four or more bedroom homes in the County since 2006. Are Loudoun County households “overhoused”? There is no universal definition of people who might be considered “overhoused.” For the purpose of this analysis, it is assumed that if there are two or more bedrooms than there are people, then that household is “overhoused.” So, for example, a two-person household with four or more bedrooms would be considered “overhoused.” According to this analysis, nearly a quarter of Loudoun County households are so-called “overhoused.” While there are overhoused households at all income levels, nearly half have incomes above 150 percent of area median income. About a fifth are households headed by a person age 65 or older, and about 28 percent are households headed by someone between the ages of 55 and 64. Nearly half of the “overhoused” households below 60 percent of AMI are senior households. Forty percent of “overhoused” households are married couples without children, but 30 percent are people under age 65 living alone. More than 90 percent of “overhoused” households are owners. 25 Loudoun County Housing Needs Assessment Employment and the Economy Employment growth—in both the County and the Washington DC metropolitan area—is the key driver of housing demand in Loudoun County. To ensure a robust local economy, it is critical to provide sufficient housing that is affordable to workers all along the income spectrum. As Loudoun County seeks to attract businesses and workers, it is important to understand how the structure of the regional economy and the characteristics of the region’s workforce are changing. These economic changes suggest housing needs that may be different than the needs from a decade or two ago. Loudoun County has become an important regional job base, and increased its share of the jobs and economic activity in the Washington DC metropolitan area in recent years. The number of jobs in the County increased 68.0 percent between 2000 and 2014, driven by gains in the Professional & Business Services sector. While job growth has been robust in Loudoun County, the average wage of jobs in the County (excluding the Information sector) has increased by just 2.2 percent and is lower than the average wage for the Washington DC metropolitan area as a whole. Loudoun County Jobs and Economy Loudoun County's economy has grown exceptionally fast over the past 15 years. Growth in gross county product (GCP) has consistently surpassed growth in the Washington DC metropolitan area’s gross regional product (GRP), particularly in the early part of the 2000s. In the period from 2000 to 2005, the County’s GCP grew at an astounding 10.1 percent annually (Figure 14). The rate of economic growth slowed in the second half of the decade but remained higher than the growth rate for the region. As a result, the share of the Washington DC metropolitan area’s economic activity that occurs in Loudoun County has grown to 5.2 percent in 2014 from just 3.5 percent in 2000. Measuring Local and Regional Economic Growth Local economic growth is often measured by gross regional product (for a metropolitan area) or gross county product (for a county). Gross regional or county product is a function of the total number of jobs in the region or county multiplied by the total wages in the region or county. The indicators are designed to be a measure of total economic productivity in a place. Figure 14. Change in Gross County Product and Gross Regional Product, 2000-2014 26 Loudoun County Housing Needs Assessment Between 2000 and 2014, Loudoun County added 60,600 jobs for an average annual growth rate of 3.8 percent. By comparison, the Washington DC metropolitan area added jobs at an average annual rate of 1.1 percent during the same period. In 2000, Loudoun County had 89,100 jobs; by 2014, this number had increased to 149,650. Among the 24 jurisdictions in the Washington DC metropolitan area, Loudoun County ranked as the sixth highest in total number of jobs. Six sectors account for nearly three quarters of the jobs in Loudoun County (Figure 15). The largest employment sector in the County is Professional & Business Services. In 2014, this sector accounted for a fifth (20.2 percent) of all jobs and had an average wage of $82,200 (Figure 16). Two-thirds of the jobs in this sector were in the Professional, Scientific, & Technical Services and Management of Companies & Enterprises sub-sectors; jobs in these sub-sectors tend to require a bachelor's degree or higher and command higher wages. However, the Professional & Business Services sector includes a variety of white collar workers, like engineers, accountants and software developers, as well as administrative support staff and building management support staff. Even with the variety of jobs in this sector, many of the Professional & Business Services sector workers are highly educated, which plays a role in the relatively high average wage. The second largest sector in Loudoun County is the State & Local Government sector, which accounted for 12.4 percent of all jobs as of 2014. This sector includes public school teachers, librarians, fire and rescue workers, police officers and all types of public service employees. At $48,800, the average wage in this sector is lower than the overall average wage of $62,100. According to data from the Loudoun County Department of Human Resources, among jobs in this sector, the County's General Workforce had a median wage of $53,900, while the median wage for Fire and Rescue workers was $51,600. The County's Sheriff's office had the highest median wage ($63,030) among local government agencies.16 The third largest employment sector in Loudoun County is Retail Trade, which accounts for 11.0 percent of all jobs located in the County. This sector generally includes a higher share of part-time workers than other sectors and includes salespeople, cashiers, retail store managers and customer service 16 Median wages are reported for County employees since the median provides a better description of typical wages than do averages. Job Growth & Housing Demand A key source of housing demand is from workers who wish to live in, or near, their workplace. Strong job growth will typically bolster the demand for housing, as long as housing prices and wages remain in sync. Conversely, a weak job market will reduce the potential pool of owners and renters as people delay household formation or look to move elsewhere. Figure 15. Payroll Jobs by Sector, 2014 27 Loudoun County Housing Needs Assessment representatives. This sector has the lowest average wage of all the sectors ($30,400 in 2014) and the average wage has decreased since 2000, after adjusting for inflation. Some of this decline may be driven by an increase in the number of part-time retail workers. While economic growth slowed following the recession, the impact on the Loudoun County economy was fairly modest. The number of jobs in Loudoun County decreased only slightly, falling 1.6 percent or by 2,200 jobs between 2008 and 2009. Neither the Professional & Business Services nor the Education & Health Service sectors declined during this period. Since 2000, job gains have been dominated by relatively few sectors. The Professional & Business Services sector had the largest gains over the 2000 through 2014 period, adding 17,400 jobs (Figure 17). The State & Local Government sector added the second largest number of jobs, increasing by 9,900 jobs or 5.6 percent annually. Growth in this sector tracked the County's population growth, which increased 5.3 percent per year between 2000 and 2014. Similarly, growth in the Education & Health Services and the Retail Trade sectors are also generally tied to population growth trends. The Education & Health Services sector increased by 9,200 job between 2000 and 2014, driven by primarily by the Ambulatory Health Care Services sub-sector, which includes home health care aids. Among the five sectors with the largest gains, only the Professional & Business Services sector had a higher average wage than the average wage of all jobs in Loudoun County. In 2014, the average wage of Loudoun County Professional & Business Services sector jobs was $82,169, while the average wage of a job in the other sectors with the highest gains ranged from $30,400 (Retail Trade) to $50,100 (Education & Health Services). Figure 17. Jobs by Select Sector, Largest Job Gains, 2000-2014 Figure 16. Average Wage by Sector, 2014 (000s of 2014$s) 28 Loudoun County Housing Needs Assessment Figure 18. Most Common Occupations in Loudoun County by Sector, 2014 Sector Most Common Major Occupation Group Occupation Share of Employment Professional & business services Computer & mathematical 21.1% Management 22.7% Business & Financial Operations 19.6% State & Local Government Education, Training, & Library 60.7% Protective Service 43.6% Management 9.2% Retail Trade Sales & Related 25.7% Office & Administrative Support 59.0% Transportation & Material Moving 13.8% Leisure & hospitality Food Preparation & Serving Related 52.6% Management 48.7% Sales & Related 13.1% Education & health services Healthcare Practitioners & Technical 36.8% Education, Training, & Library 25.8% Healthcare Support 19.7% Construction Construction & Extraction 60.1% Transportation & Utilities Transportation & Material Moving 48.6% Information Computer & mathematical 21.6% Manufacturing Management 21.5% Other services Personal Care & Service 30.5% Financial activities Management 28.2% Federal Government Office & Administrative Support 21.2% Wholesale Trade Sales & Related 45.2% Natural resources & mining Management 46.5% All Jobs Management 13.8% Source: U.S. Census Bureau, 2012, 2013 and 2014 American Community Survey 1-year files (averaged) 29 Loudoun County Housing Needs Assessment Wages The level of and outlook for wages in the County are important drivers of the home prices and rents workers can afford. Overall, the average wage of a job in Loudoun County has decreased steadily since 2001, after adjusting for inflation. Some of this decline has been driven by a shift in the types of jobs in the County, as sectors with lower wages have accounted for a larger share of the jobs in the County over time (Figure 19). But structural changes to the local economy is not the only explanation for declining wages. Nine of the 14 major sectors in the County also had a lower inflation-adjusted average wage in 2014 than in 2000 (Figure 20). The decline in wages across sectors accelerated in 2012, possibly as a result of the draw-down in Federal spending during this time. While wages in Loudoun County declined slightly, the Washington DC metropolitan area experienced an increase in the average wage between 2000 and 2010, followed by a modest decline until 2013 with increases thereafter. In 2005, the average wage in the region surpassed that in Loudoun County. This trend suggests that Loudoun County’s economy has shifted from a specialized, but relatively limited employment base to one more reliant on population growth and demographic trends. These resident- serving jobs include more jobs at lower wages. However, there is more to the story about declining wages. A single sector played the largest role in the decline of average wages in Loudoun County since 2000—the Information sector. The Information sector primarily includes publishing and telecommunications companies, including those who distribute via the internet (AOL is a prime example). Loudoun County has had a slightly higher share of jobs in the Information sector than the nation overall since 2000, which indicates a degree of specialization. But this sector has undergone a tremendous structural shift both regionally and nationally, starting with the Figure 19. Job Gains, 2000-2014, and Average Wages, 2014 (2014 $s) Figure 20. Average Wage, 2000-2014 (thousands of 2014 $s) 30 Loudoun County Housing Needs Assessment dotcom boom and bust in the early 2000's, followed by the rapid expansion of the Internet and technology companies. Since 2000, the average wage in the Information sector in Loudoun County declined 47.1 percent, which is the sharpest drop of all the sectors. The number of jobs in this sector has also decreased by 2.3 percent. As a share of Loudoun County's economy, the decline has been even steeper. In 2000, 8.6 percent of all jobs in Loudoun County were in the Information sector. The share of jobs in this sector peaked in 2001 at 14.2 percent, but has since fallen to 5.0 percent. Despite the relatively modest share of jobs in the Information sector, its high average wage has disproportionally affected the overall average wage in the County. Excluding the Information jobs changes the trend significantly. The trend in the average wage of all non-Information jobs more closely mirrors that of the region overall and has increased 2.2 percent since 2000. Furthermore, the non-Information average wage has been lower than the regional average wage since 2000 but the wage gap has increased over time. In 2000, the non-Information average wage in Loudoun County was about $5,000 lower than the regional average wage. By 2014, this difference had increased to nearly $10,900. At-Place Employment versus Resident Workers At-place employment in Loudoun County includes all jobs physically located Loudoun County. The workers filling these jobs— referred to as Workers in the County in this report—can, and do, live outside of the County. Resident workers are Loudoun County residents with a job, regardless of where their place or work is. Loudoun County's resident labor force also includes residents who are looking for a job. 31 Loudoun County Housing Needs Assessment Workers in the County Loudoun County is a regional employment center and attracts workers from throughout the Washington DC metropolitan area, though it continues to draw a significant share of workers from within its borders. The majority (56.6 percent) of jobs located in the County are held by Loudoun County residents (Figure 21). Frederick and Montgomery counties in Maryland and Prince William County, Virginia all have a higher share of at-place jobs held by residents, but Fairfax County has a lower proportion of jobs held by residents. A larger share (72.1 percent) of County employees17 live in the County, but there is considerable variation within the departments. The County’s public school system has the largest share of workers living in the County, at 76.9 percent. The County's General Workforce has 57.1 percent of its workers living in the County. Almost half (49.0 percent) of workers in the Sheriff's office live in the County, while just 23.3 percent of the County's Fire and Rescue employees live in the County. Wages for employees in the County’s Fire and Rescue Department are somewhat lower than they are in other County departments, but the small wage gap would not explain the differences in place of residence. These data on County public employees highlights the important point that living outside of the County remains a preference for some, even if there was additional housing available. Of the major private-employment sectors, Construction workers are more likely to be in-commuters than workers in other sectors; only 30 percent of Construction jobs located in Loudoun County are held by County residents (Figure 22). Construction jobs can be highly mobile which makes it less likely that job sites and home locations are in the same locality. Similarly, only one third of Transportation & Utility jobs 17 Excluding part-time and hourly employees in public school system Figure 22. Share of Jobs Held by Residents by Sector, 2012-2014 Figure 21. Share of Jobs Held by Residents, 2009-2013 32 Loudoun County Housing Needs Assessment are held by County residents. Workers in the Leisure & Hospitality sector were the least likely to commute from outside the County; nearly three-quarters (73.1 percent) of all Leisure & Hospitality jobs located in Loudoun County are held by County residents. Leisure & Hospitality jobs have the second lowest average wage in Loudoun County, and a similarly low wage in other jurisdictions. The lowest wage sector—Retail Trade—also had low levels of in-commuters. About 70 percent of Retail jobs in the County are held by residents. Workers in the Leisure & Hospital and Retail Trade sectors have relatively low in-commuting rates (i.e. are relatively like to both live and work in the same jurisdiction) not just in Loudoun County but also in many of the other jurisdictions in the Washington DC metropolitan area. There are several reasons why in- commuting rates might be fairly low for workers in the Leisure & Hospitality and Retail Trade sectors. These sectors have more part-time workers than any other sector and part-time workers tend to have jobs close to home. In addition, these two sectors have higher shares of younger workers than other sectors, including young adults living at home. The part-time work, low wages and the younger ages of those holding a Leisure & Hospitality or Retail job makes long-distance commuting unattractive for many workers. The younger, part-time workers may hold these jobs to supplement their households' income, not act as the primary earner within it. Based on an analysis of the ACS data, workers in these two sectors who do live outside of Loudoun County tend to work more hours and are older, indicating that these households may be more reliant upon these wages. The workers in Loudoun County's largest sector, Professional & Business Services, had the same in- commuting rate as the overall average. About 56 percent of Professional & Business Services sector jobs located in Loudoun County are held by residents. This pattern was also true in the comparable jurisdictions. The Information sector had the highest average wage of all sectors in Loudoun County, and workers in this sector were more likely than many others to live outside of the County. On average, 61,600 workers commuted each day into Loudoun County during the 2009-2013 period. Most of these commuters lived in Northern Virginia (63.9 percent) or Suburban Maryland (9.3 percent). About one-fifth (18.6 percent) commuted from outside the Washington DC metropolitan area and only 4.0 percent commuted from outside Virginia, Maryland, West Virginia or the District of Columbia.18 While the majority of in-commuters live in Northern Virginia, many still have long commutes to their jobs in Loudoun County. While 26.9 percent of in-commuters had commutes of under 30 minutes over the 2012 to 2014 period, a significant share (9.7 percent) travelled longer than 90 minutes. By comparison, only 5.5 percent of all Washington DC metropolitan area commuters travelled 90 minutes or more one way to work. 18 Loudoun County has only very modest economic ties to the Winchester metropolitan area. Just 2.7 percent of Loudoun County workers live in the Winchester region and 0.1 percent of Loudoun County residents commute into the Winchester region for work. 33 Loudoun County Housing Needs Assessment The vast majority of workers with a job in Loudoun County travelled to work by car, either driving alone (77.9 percent) or carpooling (10.4 percent) in 2014. Only 1.3 percent used transit to get to their Loudoun County job. These shares are similar to those in Fairfax County (79.0 percent and 9.2 percent, respectively) and Frederick County, Maryland (76.3 percent and 11.6 percent, respectively). While younger workers continue to be attracted to jobs in Loudoun County, the number and share of older workers is increasing (Figure 23). Jobs in Loudoun County are increasingly held by older workers. In 2000, 9.8 percent of private sector job holders in Loudoun County were age 55 or older. By 2014, that share had grown to 18.7 percent, or about 24,000 workers. A similar increase occurred throughout the Washington DC metropolitan area over this period. Younger workers (in their late 20s and early 30s) have actually declined as a share of workers holding jobs in the County, falling from 28 percent in 2000 to 21 percent in 2014. The share of workers in this age group also fell in the Washington DC region, but the decline among Loudoun County job holders was significantly sharper. Over the 2012 to 2014 period, workers in the 25-to-34 year old age group were somewhat more likely to live outside of Loudoun County than the overall worker population. While there are many reasons that Loudoun County has fewer jobholders in this age group, access to entertainment and other amenities may be playing a role. As part of the Loudoun County Economic Development Advisory Commission’s Nighttime Economy Ad-Hoc Committee Report, over half (54 percent) of all residents said that entertainment options would make Loudoun County a more popular destination. Compared to the Washington DC metropolitan area, private sector workers at jobs in Loudoun County were also somewhat less likely to be age 55 years or older than were workers throughout the region. These differences among both younger and older workers suggests the importance of people in the prime working ages of 35 to 54 years old to the Loudoun County economy. Retirees & Replacement Workers The youngest Baby Boomers are currently 56 years old and the vast majority will retire in the upcoming decade, if they have not done so already. This retirement wave will lead to a large numbers of vacancies within Loudoun and the Washington DC metropolitan area. Many of these positions will be filled through promotions or circulation of current employees, leaving less senior positions open. New workers will be needed to fill these less senior positions. Figure 23. Share of Private Sector Workers by Age Group, 2000, 2006 and 2014 34 Loudoun County Housing Needs Assessment Resident Labor Force In addition to a robust job base, Loudoun County is home to a large and well-educated labor force that works in jobs in both the County and the Washington DC metropolitan area (and beyond). The unemployment rate for County residents is generally low but subject to the same cyclical trends as the region. Between 2007 and 2010, the County's unemployment rate increased steadily, but remained lower than the rates in Northern Virginia and the Washington DC metropolitan area. Since 2010, the unemployment rate has fallen but has not returned to its 2007-level of 2.1 percent (Figure 24). However, the unemployment rate in 2015 was 3.6 percent and well below 5.0 percent, which is generally the maximum threshold for a healthy labor market.19 Loudoun County’s low unemployment rate has occurred during a time of significant growth in the County's labor force which accompanied strong population growth (Figure 25). Over the past 15 years, the number of employed residents in Loudoun County has nearly doubled, compared to an increase of just 24.5 percent for the rest of Northern Virginia. The growth in the County’s workforce has tracked closely with population growth, only diverging modestly after 2008 when the number of employed residents grew more slowly than the overall population. This divergence reflects the somewhat elevated unemployment rate over these years, as well as the aging of the County's workforce, which leads to a decrease in the County's overall labor force participation rate. During the 2012-2014 period, the County had an average employment rate of 73.5 percent (Figure 26).20 The highest employment rates are among people between 25 to 54 year olds and the employment rate for this cohort in Loudoun County is similar to the other comparable jurisdictions. Over half (55.5 percent) 19 See The Federal Reserve Current FAQs. What is the lowest level of unemployment that the U.S. economy can sustain? available online at https://www.federalreserve.gov/faqs/economy_14424.htm 20 The employment rate is calculated using an average of the 2012, 2013 and 2014 American Community Survey 1-year public use microdata (PUMS) files. This rate includes all people over 16 years old who have a wage and salary job, are self-employed, employed in a family business, have an internships or volunteer without pay. Figure 24. Unemployment Rate, 2000-2015 Figure 25. Employed Resident Growth (2000=100), 2000-2015 35 Loudoun County Housing Needs Assessment of 16-to-24 year olds in the County had a job over the 2012-2014 period. While this is a lower share than in Arlington County, Virginia and Frederick County, Maryland, it is higher than the shares on the other comparable jurisdictions. Loudoun County’s senior population is more likely to be employed than are seniors living in other places in the region. Over a quarter (26.6 percent) of residents age 65 years or older had a job over the 2012-2014 period, which is the highest of the comparable jurisdictions. Loudoun County residents were much more likely to work in the County than in any other jurisdiction. Nearly half (46.8 percent) of Loudoun County’s employed residents held a job in the County during the 2009-2013 period. Nearly all of Loudoun County’s employed residents worked within the Washington DC metropolitan area, primarily in another jurisdiction in Northern Virginia. Compared to Loudoun County in- commuters, out-commuters travelled somewhat shorter distances to work; only 3.4 percent held a job outside of the Washington DC region. Out-commuters were also less likely than in-commuters to have commutes longer than 90 minutes, though the share of 90+ minute commuters (7.0 percent) was still higher than the share of overall commuters in the Washington DC metropolitan area. Similar to in- commuters, most employed residents drove to work, either alone (77.8 percent) or in a carpool (8.6 percent), in 2014. Employed Loudoun County residents were somewhat more likely than workers in the County to use public transportation to get to work (4.6 percent). Nearly half (45.2 percent) of all employed Loudoun County residents worked in one of three sectors during the 2012-2014 period—Professional & Business Services (24.2 percent), Education & Health Services (11.0 percent) or Retail Trade (10.0 percent). Similar to the at-place jobs in Loudoun County, Professional & Business Services resident workers had relatively high average wages ($97,500), while Educational & Health Services and Retail Trade workers earned lower average wages, at $40,100 and $24,300, respectively. The overall average wage for an employed Loudoun County resident was $61,500 and was in line with the average wage for a job located in the County. Figure 26. Employment Rate by Age Group, 2012-2014 36 Loudoun County Housing Needs Assessment Housing Market Loudoun County experienced the roller coaster of the recent housing market bubble and bust, and currently has a relatively healthy market in terms of sales, construction activity and price growth. Relatively strong regional job growth following the economic recession, historically low interest rates, and Loudoun County’s continued appeal to families have all bolstered the local housing market. Modest risks to continued improvements in the housing market include a slowdown in regional job growth and increases in mortgage interest rates. However, more pressing issues that could impact the County’s housing market are the potential obstacles to home ownership among young, working households. Finally, pressures in the rental market, largely resulting from a lack of sufficient supply, will continue to make it difficult for many lower-income working households to find affordable and suitable rental housing. Since the housing market downturn, Loudoun County housing demand has been strong. New inventory has increased but has not kept pace with demand. This unmet demand has driven up the cost of housing, both ownership and rental. Since the early 2000s both home prices and rents have increased dramatically and outpaced price and rent increases in many parts of the Washington DC metropolitan area. Between 2000 and 2014, the median existing home price in Loudoun County increased 116.6 percent and the median gross rent increased 75.5 percent. Vacancy rates for both ownership and rental units remain very low. Ownership Market Even with declines in the home ownership rate since the housing boom, Loudoun County residents are predominantly home owners. The home ownership rate in Loudoun County was 79.4 percent in 2000. It rose to a high of 84.8 percent in 2006 and fell to a low of 74.9 percent in 2013. In 2014, the home ownership rate increased to 75.8 percent and was higher than in comparable jurisdictions. The relatively high ownership rate reflects the strong demand for for-sale housing which, in turn, has driven increases in prices and sales in recent years. Ownership Type and Building Type Homes can be described by both the type of ownership and the type of building. When describing owned units, this report typically uses three main categories that combines both. Single-family detached homes have fee simple ownership and are free standing buildings, not connected to any other units. Single-family attached homes have fee simple ownership and are in structures with between 2 and 4 units, including homes that are side-by-side, or stacked. Condo properties includes any home that has either a condominium or cooperative ownership structure, regardless of the building type. These homes are more likely to be in buildings with more than 5 units, but also include townhomes and two- over-two homes. 37 Loudoun County Housing Needs Assessment Prices Home prices for single-family detached and single-family attached homes peaked in Loudoun County in 2005 while condominium prices peaked in 2006.21 Home prices in the County are heading back towards peak levels and the substantial new construction in the County has mainly targeted the higher end of the market. Existing homes tend to be priced lower than new homes even when they have the same square footage and/or number of bedrooms. In 2015, the median sales price for an existing home sold in Loudoun County was $417,000 while the median sales price for a new home was 34.4 percent higher, at $560,241 (Figure 27). New homes sold for significantly higher prices across home types. New condominium homes commanded the largest premium in 2015 when compared to existing condos. New condos had a median sales price that was 42.6 percent higher than existing homes. Condo fees in existing buildings have risen an average of four to five percent since 2000. The cost of buying a home, either an existing or newly built home, has increased significantly, even as mortgage interest rates have remained at historically low levels. In 2000, the median sales price for an existing home was $192,500. Between 2000 and 2015, the median sales price increased 116.6 percent to $417,000. The median sales price for a new home increased 82.8 percent during this period.22 Existing condo properties had the sharpest increase among existing home sales between 2000 and 2015, rising 140.4 percent. The median price of single-family attached homes increased 124.8 percent, 21 Condominium units are defined based on their ownership structure (i.e. a condominium ownership structure rather than a fee simple ownership structure) and can include units in multi-family buildings, townhouse condominiums, units in “two-over- two” buildings and units in other types of configurations. 22 Based on new home sales data in the Metropolitan Regional Information Systems (MRIS), which included 30 to 40 percent of all new construction sales in 2013-2015. Figure 27. Median Home Sales Price, 2015 Housing Market "Boom" and "Bust" Nationally, the increases in home prices and closed sales occurred between 2001 and 2005, peaking in 2005 and falling quickly thereafter. But this cycle varied by geography and housing type. In Loudoun County, the number of closed sales peak in 2004 for all property types, and sales bottomed out in 2007 (and then hit another low point in 2010 and 2011). Home prices continued to rise for 1-2 years after sales peaked, hitting their highest levels in 2005 for single- family detached and attached homes and in 2006 for condos. In 2009, home prices in Loudoun County had bottomed out, beginning the climb back up. Pricing Closed Sales Peak Trough Peak Trough Condo 2006 2009 2004 2007 Single-Family Attached 2005 2009 2004 2007 Single-Family Detached 2005 2009 2004 2007 38 Loudoun County Housing Needs Assessment while prices of single-family detached homes increased 88.8 percent. The median home price in Loudoun County peaked at $460,000 in 2005. Over the next four years, the median price decreased to $321,500. Median sales prices increased slowly until 2014, when they levelled off, following the regional pattern. New home prices have followed the same pattern as existing home prices. In 2015, existing sales prices were 90.7 percent of their 2005 peak-level, but there is some variation across housing types. The median sales price for a single-family detached home was $557,000 in 2015, or 89.8 percent of its peak-level. At $377,500, the median sales price of a single-family attached home was 88.8 percent of its peak-level. In 2015, the median sales price for condominiums was 81.2 percent of the peak-level, at of $250,000 (Figure 28). The share of lower-priced homes, those selling for less than $300,000, has shifted over the boom and bust period. In 2000, 71.7 percent of all homes sold for less than $300,000.23 By 2006 this share had decreased to 6.9 percent (Figure 29). As the market cooled and foreclosures became an increasing share of home sales, the share of lower- priced homes increased and homes priced below $300,000 accounted for 40.4 percent of all sales in 2009. The share has fallen since and has stabilized at around 15 percent. The trend in the number of homes sold in this price range corresponds to the trend in bank-owned sales.24 By 2009, bank-owned sales had peaked at about 37 percent of all sales in Loudoun County. In the 23 Excluding sales not in MRIS. 24 Bank owned sales data from RealEstate Business Intelligence. Figure 28. Median Home Sales Price by Type, Existing Homes 2000-2015 (not adjusted for inflation) Figure 29. Share of Sales by Price Range, 2000, 2006 and 2014 (not adjusted for inflation) 39 Loudoun County Housing Needs Assessment following years, bank- owned sales fell and now account for about five percent of all sales, which is more in line with the historic trend. Home prices in Loudoun County tend to be higher than the regional average home prices (Figure 30). However, this premium is driven entirely by single- family detached homes. The average price for both a single-family attached home or a condominium home is higher for the overall Washington DC region than for Loudoun County. The premium for single- family detached homes in the County is due to the large home and lot sizes in Loudoun County and the relatively newer housing stock. The inventory of homes for sale in Loudoun County include a significant share of larger homes. In 2015, only 10.2 percent of sales in Loudoun County had two bedrooms or fewer and one percent of these sales were studio or one-bedroom homes. The largest number of sold homes had three bedrooms (40.0 percent), and nearly as many had four bedrooms (35.1 percent). Nearly 15 percent of sold homes had five or more bedrooms. Condo properties tend to be smaller and over half (51.4 percent) of sold condos had two bedrooms or fewer. About three-quarters (73.0 percent) of single-family attached homes had three bedrooms. Single-family detached homes were typically the largest and over half (54.9 percent) of these homes had four or more bedrooms. Smaller homes were more likely to have lower sales prices. Over half (52.1 percent) of homes that sold for less than $300,000 had two or fewer bedrooms. Similarly, larger homes had higher sales prices and 95.5 percent of all homes that sold for $600,000 or more had at least four bedrooms. Figure 30. Average Sale Price by Housing Type, 2015 40 Loudoun County Housing Needs Assessment Sales Like in the rest of the region and in most of the rest of the country, existing home sales in Loudoun County dropped off dramatically during the housing market bust. The recovery in home sales has been unsteady since the downturn. After bottoming out in 2007, the number of sales remained low, with the gains of one year reversing in the next (Figure 31). Between 2011 and 2013, the County had consistent growth in the number of home sales, but in 2014, buyer demand was weak as a result of slower wage and job growth, uncertainty about the region’s economy and, potentially, a lack of inventory. Sales growth stalled in the County, as it did throughout the Washington DC metropolitan area. However, demand strengthened in 2015 and existing home sales in Loudoun County have now reached their highest level since 2005. Sales of single-family detached homes recovered more quickly than the other unit types and reached 82.9 percent of their 2004 sales-level in 2015 (Figure 32). Condo sales were 77.5 percent of their 2004-level, while single-family attached homes were 62.9 percent. Single-family detached homes have also grown as a share of total sales since the peak. In 2004, single- family detached homes accounted for 44.1 percent of existing sales. By 2015, this share had grown to 49.7 percent. Conversely, single- family attached homes now account for a smaller percentage of home sales, decreasing from 42.7 percent in 2004 to 36.5 percent in 2015. The shift in closed sales may reflect a broader shift in inventory. Closed sales in Loudoun County rose more quickly than they did for the region overall and also have been relatively stronger compared to their 2000-level for all years. Home sales peaked in Figure 32. Existing Home Sales, 2000-2015 Figure 31. Closed Sales Comparison (100 = 2000-level of closed sales) 41 Loudoun County Housing Needs Assessment 2004 for both Loudoun County and the region. Loudoun County hit the trough a year earlier and so sales were relatively stronger in 2007 and 2008. The trend in Loudoun County post-2009 has mirrored the regional trend. The number of sales declined through 2011 and then improved through 2013. The number of sales declined again in 2014 but increased sharply in 2015. New Permits New construction slowed considerably following the housing market downturn. The subsequent rebound in new residential construction activity has been steady but slow. Between 2000 and 2015, Loudoun County issued permits for the construction of 65,900 residential units (Figure 33). Over half (53.3 percent) were issued during the 2000-2005 period. The number of new permits decreased precipitously between 2004 and 2006, with the sharpest declines occurring for single-family home permits (including both single- family detached and attached homes). The total number of permits issued continued to fall through 2010, when it hit a 19-year low. In the following years, the number of annual permits climbed steadily, with the number of permits for single- family attached homes briefly surpassing all other unit types for the first time since 1991, the earliest year examined. Permitting activity stalled again in 2014 and 2015 for all building types, as builders may have been reacting to regional economic uncertainty and weak job growth that also triggered weak buyer demand in 2014. Permit data do not indicate whether new construction is ownership or rental. Based on both the housing stock and the for-sale market, multi-family units are more likely to be rental apartments, especially in the past few years, although the demand for multi-family condominiums has been on the rise. In 2015, permits for multi-family units made up 26.6 percent of all permits (952 out of 3,582). Most—if not all—of the single-family permits issued in Loudoun County are for home ownership units. The new ownership units that are produced are more likely to be priced in the upper range, based on an analysis of new home sales prices. Figure 33. New Residential Permits, 1991-2015 42 Loudoun County Housing Needs Assessment Rental Market About a quarter of Loudoun County households are renters and the share of renters has increased significantly in recent years. Low rental vacancy rates and rent increases reflect the strong demand for rental housing. The vacancy rate for all housing units in Loudoun County was 4.3 percent in 2014 (Figure 34). This rate includes homes that are vacant for any reason, including those for sale, and vacation homes or homes that are not used as a primary residence for any reason. The rental vacancy rate was just 2.3 percent in 2014, including both multi-family apartments and single-family detached and attached homes. Both the overall vacancy rate and the rental vacancy rate in Loudoun County were among the lowest of the comparable jurisdictions in the Washington DC metropolitan area. The rental vacancy rate has remained below 5.0 percent since 2009, even though the number of units for rent has increased tremendously. Between 2009 and 2014, the number of occupied rental units increased 31.7 percent. During the same period, occupied owner units increased just 9.9 percent. The number of rental units in Loudoun County has more than tripled (+201.8 percent) between 2000 and 2014, as the County added a total of 18,900 rentals in any building type during this time. The growth in the rental stock was driven primarily by rental units in buildings with five or more units, which accounted for half (50.1 percent) of the growth during this period. Rental units are often equated to large apartment buildings but in suburban jurisdictions, like Loudoun County, a significant share of the rental stock is comprised by single-family homes. In 2014, more than one fifth (21.3 percent) of Loudoun County’s rental homes were single-family detached homes (Figure 35). By comparison, throughout the Washington DC metropolitan area, only 13.8 percent of rental units were single-family detached homes. Loudoun County also has a relatively high share of single-family attached rentals, including rentals in buildings with two to four units. In 2014, 28.4 percent of Figure 34. Housing Vacancy Rate, 2014 Figure 35. Occupied Rental Units by Type, 2000, 2006 and 2014 43 Loudoun County Housing Needs Assessment Loudoun County's occupied rentals were single-family attached units, compared to just 21.6 percent in the Washington DC metropolitan area. Single-family detached homes that are currently being rented are more likely to have been built prior to 2000 than those that are currently owned. This indicates that these units were not added to the supply as planned rental units, but are being rented because of market conditions. The homes being rented are somewhat smaller and are more likely to have two or three bedrooms than owner-occupied single-family homes. Some of these homes may revert to ownership units as home prices continue to rise. The overall share of single-family detached units that are currently being rented is slightly higher than it was in 2000 though there are thousands of additional units in the housing stock in 2014. In 2000, about 8.5 percent of all single-family detached units were being rented. In 2014, that share was 10.3 percent. The median gross rent in Loudoun County was higher than all but two comparable jurisdictions in 2014 (Figure 36). At $1,674, the median gross rent was 9.8 percent higher than the median rent for the Washington DC metropolitan area in 2014. The stock of single-family rentals likely impacts the relative rents. Single-family detached and attached homes are more likely to be larger than units in multi-family buildings, with higher rental rates. The median rent among single-family rentals was $1,930, with 30 percent renting for at least $2,500. Between 2000 and 2014, the median gross rent in Loudoun County increased 75.5 percent. The building mix of rental units has not changed dramatically since 2000 and played a negligible role in the rising rental rates. The rent growth in Loudoun County over this time period was lower than the increase in all of the comparable jurisdictions— Arlington County (+111.5 percent), Prince William County (+83.2 percent), Frederick County, Figure 36. Median Gross Rent, 2000, 2006 and 2014 Figure 37. Gross Rent, 2014 44 Loudoun County Housing Needs Assessment Maryland (+80.1 percent), Montgomery County (+79.0 percent), and Fairfax County (+76.0 percent). Rental rates in Loudoun County also did not rise as quickly as home sales prices. Although the increase in median gross rent was lower than in other jurisdictions, relatively few rental units in Loudoun County are affordable to lower income households (Figure 37). In 2014, about 1,300 units were renting for less than $750 and would be affordable to households earning less than $51,500 (about 48% of AMI for a family of four). Another 1,400 units had rents between $750 and $1,000 and would be affordable for households earning up to $58,100 (or about 54 percent of AMI for a family of four). 45 Loudoun County Housing Needs Assessment Housing Affordability Rising home prices and rents, coupled with slow growing wages, has made it increasingly difficult for many households to find housing they can afford. Difficulty finding affordable housing directly affects the individuals and families who cannot find housing. But a lack of a sufficient supply of housing affordable to low- and moderate-income households has broader implications for the local economy and community. When households spend a disproportionate share of their income on housing, there is less left over for other necessities. Families are sometimes forced to make trade-offs between paying for housing and paying for other necessities, including food and health care.25 In addition, these households spend less on local goods and services and this reduced spending can have a negative impact on the local economy. While housing affordability challenges are greatest among the lowest income households, there is evidence that higher income households are increasingly burdened by the high costs of housing in Loudoun County and the Washington DC metropolitan area. Higher than average transportation expenses for workers in Loudoun County add to the overall burden of housing plus transportation costs of County residents and workers. Renters in Loudoun County face higher cost burdens than do home owners. In 2014, nearly half of the County’s renter households (nearly 14,000 households) were cost burdened, and 21.8 percent (6,200 households) were severely cost burdened (Figure 38). One quarter of Loudoun County home owners were cost burdened in 2014, meaning that more than 22,500 Loudoun County home owners spent 30 percent or more of their income on housing costs. In 2014, about eight percent of home owners—6,900 households—were severely cost burdened. 25 Roy, Joydeep, Melissa Maynard and Elaine Weiss. 2008. The Hidden Costs of the Housing Crisis. Washington, DC: The Partnership for America’s Economic Success. Online at http://www.pewtrusts.org/~/media/legacy/uploadedfiles/wwwpewtrustsorg/reports/partnership_for_americas_economic_suc cess/paeshousingreportfinal1pdf.pdf. Measuring Housing Affordability Affordability is typically measured by comparing a household’s income to its housing costs. When a household spends 30 percent or more of its income on housing, it is referred to as “cost burdened.” A household spending 50 percent or more of its income on housing is referred to as “severely cost burdened.” Figure 38. Cost Burdened Households by Tenure, 2014 46 Loudoun County Housing Needs Assessment The share of cost burdened renter households in Loudoun County is only slightly higher than it was in 2006, but it has increased significantly from 2011 (Figure 39). In fact, if the rate of cost burden among renters was the same in 2014 than it was in 2011 there would be about 2,300 fewer cost burdened renter households in the County in 2014. Housing cost burden among renters is increasing as a result of rising rents and slow growing or declining incomes among the renter population. As the for-sale housing market has recovered, some higher-income renters have been able to move into home ownership, leaving a greater share of lower-income households in the renter population. The challenge of housing affordability among renters is magnified because the number of renters in the County has increased dramatically, particularly since the peak of the housing market. Since 2006, the County has added 23,700 households and well over half—14,100 households—are renters. Therefore, even as the rate of rental housing cost burden has remained about the same as it was in 2006, the number of cost burdened renter households in the County has grown substantially. Housing cost burden among home owners increased slightly between 2013 and 2014 but affordability for home owners has actually improved since the peak of the housing market. In 2006, 42.8 percent of home owners in Loudoun County were cost burdened but in 2014 the share was 25.4 percent. The decline in the share of cost burdened home owners between 2006 and 2014 is related to the drop in home prices and the increase in foreclosures and short sales for several years. In addition, after the housing market bust, many lower-income households—that is, those who are most likely to be cost burdened—have been excluded from the home ownership market due to tighter lending standards and growing debt. The share of cost burdened households in Loudoun County is similar to comparable jurisdictions Figure 39. Cost Burdened Households by Tenure, 2006-2014 Figure 40. Cost Burdened Households by Tenure, Selected Jurisdictions, 2014 S 47 Loudoun County Housing Needs Assessment and to the overall Washington DC metropolitan area (Figure 40). The one exception is Arlington County, where the shares of renter households that are cost burdened are lower than in the region overall. Arlington County’s renters tend to have higher incomes than renters in other jurisdictions, which largely explains Arlington County’s somewhat lower share of cost burdened renter households. Compared to Loudoun County, the share of cost burdened renter households is slightly higher in Prince William County, Virginia and in Montgomery County, Maryland. Overall, over the 2012-2014 period, 29.6 percent of all households in Loudoun County—including both owners and renters were cost burdened. However, there is wide variability in the housing affordability challenges faced by different types of households (Figure 41). Lower-income households are most likely to be cost burdened. Nearly 88 percent of households with incomes below 30 percent of AMI are cost burdened and 73.3 percent of these extremely low income households are severely cost burdened, spending half or more of their income on housing costs. About 81 percent of households with incomes between 30 and 50 percent of area median income are cost burdened and 39.0 percent are severely cost burdened (Figure 42). Percent of Income Spent on Housing Costs <30% 30-49% 50%+ Area Median Income Total Households No. % No. % No. % Less than 30% AMI 7,048 881 12.5% 999 14.2% 5,169 73.3% 30-50% AMI 7,377 1,424 19.3% 3,076 41.7% 2,878 39.0% 50-70% AMI 10,579 3,738 35.3% 5,293 50.0% 1,548 14.6% 50-60% AMI 5,879 2,077 35.3% 2,824 48.0% 978 16.6% 70-80% AMI 5,698 3,186 55.9% 1,860 32.6% 653 11.5% 80-100% AMI 10,831 6,607 61.0% 3,630 33.5% 595 5.5% 100%+ AMI 71,645 63,856 89.1% 7,245 10.1% 543 0.8% Total Households 113,179 79,692 70.4% 22,102 19.5% 11,385 10.1% Source: 2012, 2013 and 2014 American Community Surveys 1-year files (averaged) Figure 41. Cost Burdened Households by Household Income, 2012-2014 Figure 42. Cost Burdened and Severely Cost Burdened Households by Household Income, 2012-2014 48 Loudoun County Housing Needs Assessment Nearly two-thirds of households with incomes between 50 and 70 percent of AMI are currently cost burdened, and about 15 percent are severely cost burdened. The rate of cost burden drops off for higher income households in the County, though 44.1 percent of households with incomes between 70 and 80 percent of AMI and 39.0 percent of households with incomes of between 80 and 100 percent of AMI are cost burdened. The vast majority of the County’s cost burdened households are working households. More than three quarters of Loudoun County’s cost burdened households have a household head that is in the labor force. Among those not in the labor force, forty percent are age 65 or older and another 12 percent are non- elderly disabled households. Many of the workers that support the local economy face challenges finding housing they can afford in Loudoun County. For example, a household with an income below 30 percent of the AMI could include a single person working in a retail, restaurant or day care job. A household in the 30 to 50 percent of AMI income range could include two workers in the retail or restaurant industry, or one worker in a job such as administrative assistant or teacher’s aide. Higher up the income spectrum, cost burdened households include workers in the professional services, non-profit, government and health services fields, including police officers, teachers, and IT professionals. The rates of housing cost burden also vary by other demographic characteristics, though these characteristics are generally also related to income. Households headed by young people face the highest housing cost burden. Sixty-four percent of households headed by people under age 25 spend 30 percent or more of their income on housing; 42.3 percent spend half or more of their income on housing (Figure 43). Seniors are also disproportionately likely to be cost burdened—33.1 percent of households headed by someone age 65 or older are cost burdened and 18.3 percent are severely cost burdened. The rate of severe cost burden among seniors is nearly twice the rate for the overall household population. Figure 43. Cost Burdened Households by Age of Household Head, 2012-2014 49 Loudoun County Housing Needs Assessment What is Area Median Income (AMI)? Area Median Income (AMI) is the median household income for a metropolitan area. The metropolitan area AMI varies by household size. In FY2015, the AMI for the Washington region was $109,200 for a family of four and $76,500 for a single person Who are these households in Loudoun County? Income Group (FY 2015)* What type of household is this? How much can they afford to spend on housing?** 0-30% AMI $0-$32,750 family of four $0-$22,950 single person People who are unable to work due to disability or age. Seniors on fixed incomes. Low-wage workers, including many retail, restaurant workers and day care workers. Rent: $0 - $819 family of four $0 - $575 single person Own: Up to $114,625 family of four Up to $80,325 single person 30-50% AMI $32,750-$54,600 family of four $22,950-$38,250 single person One person working as an administrative assistant, electrician, or teacher’s aide. Two workers in the retail, restaurant or child care sectors. Rent: $819 - $1,365 family of four $575 - $956 single person Own: Up to $191,100 family of four Up to $133,875 single person 50-70% AMI $54,600-$76,440 family of four $38,250-$53,550 single person One or two workers in entry-level, including research associates, program managers, nursing aids and nurses (LPNs). Rent: $1,365 - $1,911 family of four $956 - $1,339 single person Own: Up to $267,540 family of four Up to $187,425 single person 70-80% AMI $76,440-$87,360 family of four $53,550-$61,200 single person One or two workers in entry- to mid-level jobs, including family social workers, medical billing clerks, and librarians. Rent: $1,911 - $2,184 family of four $1,339 - $1,530 single persons Own: Up to $305,760 family of four Up to $214,200 single person 80-100% AM $87,360-$109,200 family of four $60,880-$76,100 single person One or two workers in entry- or mid-level jobs, including police officers, fire fighters, schools teachers and IT support personnel. Rent: $2,184 - $2,730 family of four $1,530 - $1,913 single person Own: Up to $382,200 family of four Up to $266,350 single person * This analysis uses 2015 income data and therefore uses FY2015 HUD income limits. The income limits for the Washington DC metropolitan area declined slightly in FY2016 ($108,600 for a family of four). **Assumes 30 percent of income spent on rent. Assumes a maximum home price of 3.5 times household income. 50 Loudoun County Housing Needs Assessment Housing cost burden rates also vary by race and ethnic (Figure 44).26 Hispanic residents are significantly more likely to be cost burdened than other households living in Loudoun County. Nearly half of all Hispanic households, including both owners and renters, are cost burdened. More than 60 percent of Hispanic renters are cost burdened. Black households are slightly more likely to be cost burdened than the overall population; 37.1 percent of black households spend 30 percent or more of their income on housing compared to 29.6 percent of the overall population. People living alone are more likely to be cost burdened than other households (Figure 45). About 44 percent of one-person households are cost burdened compared to about a quarter of households with two or more people. Seniors living alone comprise the household type most vulnerable to housing affordability challenges. Nearly 52 percent of seniors living alone are cost burdened and a third spend more than half of their income on housing. Single parents also face significant challenges finding affordable housing. More than half of single-parent families in Loudoun County are cost burdened and nearly one in five spends half or more of their income on housing. The lowest rates of cost burden in Loudoun County are among married couples with no children and non- family households not living alone (e.g. roommates). Households that include a person with a disability are significantly more likely than the overall population to be cost burdened—39.3 percent versus 29.6 percent (Figure 46). Households that include a person with an independent living disability face daunting challenges—72.3 percent of these households are housing cost burdened. 26 The race/ethnicity of the household is determined by the race/ethnicity of the head of the household as identified in the American Community Survey. Figure 44. Cost Burdened Households by Race, 2012-2014 Figure 45. Cost Burdened Households by Household Type, 2012-2014 51 Loudoun County Housing Needs Assessment Housing + Transportation Costs In the last two decades there has been growing recognition that housing costs alone cannot provide a full picture of housing affordability. Particularly during the run up in home prices, many families looked for housing further away from jobs and amenities in order to find a home they could afford. When lower home prices and rents are accompanied by higher transportation costs, the affordability picture may not be improved for families. The “drive ‘til you qualify” phenomenon is not unique to Loudoun County or the Washington DC metropolitan area but understanding affordability in light of location is an important aspect of understanding Loudoun County’s housing needs. Researchers at the Center for Neighborhood Technology and the Center for Housing Policy have recommended that households spend no more than 45 percent of their incomes on combined housing plus transportation costs to allow households to have sufficient income for other household necessities.27 An online tool released by the U.S. Department of Housing and Urban Development and the U.S. Department of Transportation allows users to explore the combined housing plus transportation (H+T) costs for six different types of households through the U.S. According to the data, H+T costs in Loudoun County exceed the recommended threshold for all but the highest income households. A family with two commuters and two children and an income of $71,861 spends, on average, 40 percent of its income on housing and 16 27 Hickey, Robert, Jeffrey Lubell, Peter Haas and Stephanie Morse. 2012. Losing Ground: The Struggle of Moderate-Income Households to Afford the Rising Costs of Housing and Transportation. Washington, DC: National Housing Conference. Available online http://www.nhc.org/#!2012-losing-ground/cs9n5 Figure 47. Housing + Transportation Costs, 2008-2012 Figure 46. Cost Burdened Households by Disability Status, 2012-2014 52 Loudoun County Housing Needs Assessment percent of its income on transportation for a combined H+T cost of 56 percent. (In the Location Affordability Index data, this family is called a “Moderate Income Family.”) The average H+T costs for a single- parent family with two children earning $44,913 in Loudoun County is estimated to be 77 percent (Figure 47). (This household type is referred to as a “Single-Parent Family” in the Location Affordability Index data.) Loudoun County has among the Washington DC metropolitan area’s highest H+T costs, but they are only slightly higher than some of the comparable jurisdictions (Figure 48). While a moderate income family spends 56 percent of its income on housing and transportation in Loudoun County, the combined H+T costs are 50 percent in Arlington County. Combined H+T costs for a moderate income family in Fairfax, Prince William and Montgomery counties are similar to Loudoun County, between 54 and 55 percent. The share of income spent on transportation is higher in Loudoun County than in any of the comparable jurisdictions with the exception of Frederick County, Maryland. The higher than average transportation costs are not surprising given the higher share of commuters travelling 90 or more minutes each way to work. Overcrowding Even if households are not cost burdened, they still may face housing challenges. One way households make housing affordable is to double and triple up in housing units that are too small by traditional measures. One common measure of overcrowding is to compare the number of bedrooms with the number of people living in the home. If there are more than two people per bedroom, then that household can be defined as living in “overcrowded” conditions.28 Overcrowding is not a widespread problem in Loudoun County, according to data from the American Community Survey.29 Less than three percent of the population in Loudoun County (approximately 7,600 people)—and less than 1.5 percent of households (approximately 1,500 households)—lived in overcrowded housing over the 2012-2014 period. Two-thirds of overcrowded households are not cost burdened while the other third still pay more than 30 percent of their income on housing costs. About three quarters of overcrowded households are renters and the other quarter own their homes. Not all of the households living in overcrowded conditions are low-income households. About half have incomes 28 Blake, Kevin S., Rebecca L. Kellerson and Aleksandra Simic. 2007. Measuring Overcrowding in Housing. Washington, DC: U.S. Department of Housing and Urban Development. Available online https://www.huduser.gov/publications/pdf/measuring_overcrowding_in_hsg.pdf 29 It is possible, of course, that overcrowded conditions are underreported to on the survey; however, the ACS remains the best source of local information on overcrowded conditions. Figure 48. H + T Costs, Moderate Income Families, 2008-2012 53 Loudoun County Housing Needs Assessment above 60 percent of AMI and a third have household incomes above 100 percent of AMI. About 60 percent of households living in overcrowded conditions are married couples with children. Less than seven percent (approximately 100 households) are non-family households. Asian and Hispanic families are more likely than white or black families to live in overcrowded conditions. 54 Loudoun County Housing Needs Assessment Current Housing Gaps As Loudoun County plans for ways to ensure a sufficient supply of housing to meet housing needs going forward, it is important to understand the magnitude of the potential gaps that currently exist between housing demand and supply. Among existing residents living in the County, it is evident based on the preceding analysis of housing market trends and measures of housing affordability, that there is a gap between housing demand and supply at certain prices and rents, and potentially also in terms of unit sizes. The current housing gap is a measure of the difference between the housing needs that exist in the County and the housing that is affordable and available to current residents. This analysis of current gaps does not take into account the new residents who would live in Loudoun County if there was sufficient housing. The forecasts of housing demand and supply (Section II below) will address that need. There are several potential ways to measure the current housing gaps. This analysis includes three measures that attempt to gauge the extent of the current housing gap for different segments of the population.30 The three measures include analysis of the following groups of households: 1. Homeless 2. Renter households 3. Potential home owners In each case, the estimated gaps should be considered independently, with the understanding that the process of generating housing to fill the gaps defined by one measure would necessarily change the units needed to fill the other gap. For example, if the gap among potential home owners was filled by increasing the supply of for-sale housing, then there would be fewer rental units needed to meet the rental housing gap. Homelessness One of the clearest components of existing housing gaps in Loudoun County is the extent of homelessness in the County. Each year, Loudoun County participates in the point-in-time homeless counts coordinated by the Metropolitan Washington Council of Governments. For these counts, Loudoun County uses the HUD definition of homelessness which is “people who reside in emergency shelter, transitional housing, domestic violence shelters, runaway youth shelters, safe havens, or places not meant for human habitation, such as streets, parks, alleys, abandon buildings and stairwells.”31 According to the 2016 point in time counts, there are 134 homeless individuals in Loudoun County, a 20 percent drop from the number of homeless individuals estimated during the 2012 point in time counts. This number includes 20 families with children (comprising 69 total adults and children) and 65 single 30 The Appendix includes tables that provide summaries of the number of renter and owner households by household income along with estimates of the current stock of rental and home ownership units affordable at different income levels. These Appendix tables provide another way of looking at potential gaps in demand and supply, though they do not take into account household sizes or preferences for units of different sizes. 31 Chapman, Hilary. 2016. Homelessness in Metropolitan Washington: Results and Analysis from the Annual Point-in-Time (PIT) Count of Persons Experiencing Homelessness. Washington, DC: Metropolitan Washington Council of Governments. Available online http://www.mwcog.org/. 55 Loudoun County Housing Needs Assessment adults. Based on interviews with homeless individuals, it is estimated that 78 percent of homeless adults in families and 57 percent of single homeless adults are employed. The number of homeless individuals in Loudoun County has held fairly steady over the past 10 years, with a peak homeless count of 211 in 2007 and the recent low in 2016. According to homeless advocates in Loudoun County, the MWCOG homelessness counts significantly understate the number of homeless individuals and families, and the actual homeless count is three to three and a half times higher than what is presented in the MWCOG report. As a result, the number of homeless individuals in Loudoun County could be as high as 469. Renter Households Many households in Loudoun County face housing instability due to high rents or pay a disproportionately high share of their income in rent. If there were more lower-rent housing options, fewer households in the County would be cost burdened. Ideally, the rental housing gap would be measured by comparing the number of units available in Loudoun County at different rent levels with the household incomes of existing renters. Unfortunately, there is insufficient unit-level data on rents from the County or other public data sources. As an alternative, the current renter housing gap in Loudoun County can be estimated by examining the characteristics of renters that are currently cost burdened. By measuring housing gaps this way, it is assumed that households living in the County pay 30 percent or more of their income for housing because they cannot find suitable, affordable housing. This analysis of the gap in the availability of rental housing does not take into account potential renters who would like to live in Loudoun County but cannot find an affordable and available home to rent. It also does not explicitly take into account renters who pay 30 percent or more of their income by choice. This analysis includes estimates of the number of cost burdened renter households by household income (measured as a percent of AMI) and household size currently living in Loudoun County. Several assumptions are made to use these cost burden figures to estimate current rental housing gaps: • Assume gaps exist across the income spectrum, up to 100% of area median income. The vast majority of cost burdened renters in Loudoun County (91.2 percent) have incomes below 80 percent of AMI which was $87,360 for a family of four in 2015. At 80 percent of AMI, a family of four can afford monthly rent of $2,184 and a single person can affordable monthly rent of $1,530. At the upper end of these ranges and above, the market can generally meet demand without government subsidy if land use regulations and zoning allowed for sufficient housing construction. More housing available at higher rents might free up lower rent units if higher income households choose to move into higher rent housing. This “filtering up” of households is not at all ensured, however, and is not explicitly part of this gap analysis. The biggest needs are for units that may require financial or non-financial (e.g. regulatory relief, land donation) subsidy from the County to meet the gap that exists for households below 80 percent of AMI based on the cost burden analysis. • Assume households of different sizes will live in units with a particular number of bedrooms. It is assumed that all one-person and two-person households will live in studio or one-bedroom units, three-person households will live in two-bedroom units and four-or-more person 56 Loudoun County Housing Needs Assessment households will live in units with three or more bedrooms. This assumption simplifies the analysis although changes to this assumption will not substantially impact the findings. • Assume households have incomes at the high end of their income category and spend 30 percent of their income on housing. If a household is defined as having an income between 0 and 30 percent of AMI, it is assumed that its income is 30 percent of AMI and that it will pay 30 percent of that income on rent. For higher income households, this approach will overstate the rent levels of units needed because the share of income spent on housing declines with higher incomes.32 Figure 49. Cost Burdened Renter Households by Household Income and Household Size, 2012-2014 Using data from the 2012-2014 American Community Surveys, there are more than 11,200 renter households in Loudoun County that are currently cost burdened but the greatest needs are for housing affordable to households with incomes below 50 percent of AMI. About 56 percent of cost burden renters have incomes below this level (Figure 49). 32 For example, in a recent report on housing needs in the Washington DC metropolitan area, it was estimated that households with income above $75,000 spend between 18 and22 percent of their incomes on housing. See Sturtevant, Lisa and Jeannette Chapman. 2013. Housing the Region’s Future Workforce. Arlington, VA: George Mason University. Available online http://cra.gmu.edu/pdfs/studies_reports_presentations/Housing_the_Regions_Future_Workforce_2012.pdf. 1 2 3 4+1 Totals <30% AMI 1,283 720 568 801 3,372 Max Affordable Income 22,950$ 26,200$ 29,500$ 32,750$ N/A Max Affordable Rent 574$ 655$ 738$ 819$ N/A 30-50% AMI 640 504 364 1,429 2,938 Max Affordable Income 38,250$ 43,700$ 49,150$ 54,600$ N/A Max Affordable Rent 956$ 1,093$ 1,229$ 1,365$ N/A 50-60% AMI 412 252 531 803 1,999 Max Affordable Income 45,900$ 52,440$ 58,980$ 65,520$ N/A Max Affordable Rent 1,148$ 1,311$ 1,475$ 1,638$ N/A 60-80% AMI 777 206 437 510 1,931 Max Affordable Income 61,200$ 69,920$ 78,640$ 87,360$ N/A Max Affordable Rent 1,530$ 1,748$ 1,966$ 2,184$ N/A 80-100% AMI 196 201 142 208 748 Max Affordable Income 76,500$ 87,400$ 98,300$ 109,200$ N/A Max Affordable Rent 1,913$ 2,185$ 2,458$ 2,730$ N/A 100% + AMI 81 52 29 70 232 Max Affordable Income N/A N/A N/A N/A N/A Max Affordable Rent N/A N/A N/A N/A N/A Total 3,389 1,936 2,073 3,821 11,219 1 Household income shown for a 4-person family Household Size Source: GMU; LSA; U.S. Census Bureau, 2012, 2013 and 2014 American Community Survey 1-year files (averaged); U.S. Department of Housing and Urban Development 57 Loudoun County Housing Needs Assessment Among the extremely low income households (with incomes below 30 percent of AMI), the biggest need is for studio or one-bedroom units to serve one-person households. In order to be affordable to this population, these 1,283 units would need to rent for $574 or less per month. Another 720 units needed to serve two-person households with incomes below 30 percent of AMI would need to rent for $655 per month or less to be affordable (Figure 50). There is also a substantial need for units for one- and two-person households with incomes between 30 and 50 percent of AMI. These studio or one bedrooms units would need to rent for $956 per month or below to be affordable to these households. A greater need among the population with incomes of between 30 and 50 percent of AMI is for family-sized units. There are 1,429 households with incomes in this range that have four or more people. These households, that are currently cost burdened or severely cost burdened, would need units with three or more bedrooms than rent for $1,365 per month or less. Among cost burdened renter households with incomes between 50 and 60 percent of AMI, there is also a considerable need for family-sized units. This group of households has an unmet need for 803 units with three or more bedrooms that rent for $1,638 per month or less. There are nearly 2,000 cost burdened renter households in Loudoun County with incomes between 60 and 80 percent of AMI. A significant share—777 households—are one-person households who need a unit that rents for $1,530 per month or less. Figure 50. Estimates of Current Rental Housing Gap by Household Income and Bedrooms 58 Loudoun County Housing Needs Assessment Finally, though the rate of cost burden is much smaller, there still exists a gap between housing demand and supply among current renters with incomes between 80 and 100 percent of AMI. The need is split fairly evenly across household sizes for this income group. A four-person family with an income between 80 and 100 percent of AMI would need a three-bedroom unit with a rent of $2,730 per month or less. Potential Home Owners Renters are much more likely than current home owners to be cost burdened. However, a gap also potentially exists when it comes to home ownership. Indeed, some of the County’s current renter households might have become home owners if there were sufficient home ownership opportunities.33 A number of factors, including mortgage interest rates, access to credit, and available inventory can complicate the measurement the existing gap in the number of ownership units. If (and when) mortgage interest rates rise, homes will be more expensive, holding all other things constant, and will make home ownership out of reach for households at particular incomes, or will put downward pressure on home prices. If mortgage underwriting standards are more restrictive, even income-qualified households may find it difficult to become a home owner. Finally, limited inventory—as a result of limited new construction and/or fewer existing home owners listing their homes for sale—will limit home ownership opportunities, potentially keeping would-be home owners out of the market. These are all important factors driving the level of home ownership in the County; however, this analysis of current gaps does not explicitly take into account these external factors. One way to measure a potential home ownership gap in Loudoun County is to look at home ownership rates for households at different income levels during a more “normal” period and then compare those home ownership rates to current rates. Nationally, the overall home ownership rate has dropped from the peak of the mid 2000s and has fallen to about 64 percent. Some experts have called this level the new long-term average,34 but the rate of home ownership has fallen again in recent months so it is unclear when home ownership rates will bottom out nationally. Home ownership rates also fell in Loudoun County though they have begun to rebound for some segments of the population. However, it could be argued that the level of home ownership in Loudoun County remains below what could be considered a “normal” level. This gap analysis quantifies the gap in home owners by making assumptions about what that “normal” level should be. Assumptions made for this portion of the gap analysis are as follows: • Assume home ownership rates return to mid-1990s levels. Nationally, the home ownership rate began to rise in the mid-1990s and based on Census data in 1990 and 2000, Loudoun County experienced a similar increase during that time. An estimate of the home ownership rate in the mid- 1990s, therefore, is used to approximate a long-term “normal” home ownership rate in Loudoun County. Based on these estimates, the overall home ownership rate in the County in the mid-1990s 33 There are cost burdened home owners in Loudoun County which potentially constitutes another gap between housing demand and supply on the home ownership side. However, from a practical standpoint, existing home owners would be unable or unlikely to move into more affordable housing if it were available. Therefore, the approach in this analysis focuses on would- be home owners and the potential housing gaps that exist preventing them from becoming home owners. 34 The State of the Nation’s Housing. 2016. Cambridge, MA: Harvard University Joint Center for Housing Studies. Available online http://www.jchs.harvard.edu/research/state_nations_housing 59 Loudoun County Housing Needs Assessment was 77.4 percent. Among households with incomes below the area median income (estimated using data from the 1990 and 2000 Census), the home ownership rate was 61 percent. For households at or above the median income, the home ownership rate was an estimated 89 percent. The home ownership rates in 2014 were lower for both income groups— 58 percent for households below median income and 86 for households at or above median income. The differences in these home ownership rates by broad income groups were used to estimate potential home ownership gaps in the County (Figure 51).35 • Assume preferences for home ownership have not changed dramatically. If preferences for home ownership shift substantially, there may be reasons to expect lower demand for home ownership even without any limits on home ownership opportunities. However, almost universally, national surveys of households indicate that the desire for home ownership is strong, and more than 90 percent of households either own or expect to own a home at some point.36 • Assume standard guidelines for housing affordability. To determine how much a household could afford given a particularly income, the Zillow “Affordability Calculator”37 was used, with assumptions of a $20,000 downpayment, a 3.875 interest rate, a 30-year fixed rate mortgage, a 36 percent debt- to-income ratio, and average values for property taxes and insurance. 35 Because of the way the data are presented in the earlier decennial Censuses, it was not possible to estimate earlier home ownership rates for other categories of area median income. 36 2016 Q1 Homeownership Opportunities and Market Experience (HOME) Survey. 2016. Washington, DC: National Association of Realtors®. Available online http://www.realtor.org/reports/2016-q1-housing-opportunities-and-market-experience-home- survey. 37 https://www.zillow.com/mortgage-calculator/house-affordability/ Figure 51.Home Ownership Rates by Household Income, mid- 1990s (est.) and 2014 Figure 52. Estimates of Current Home Ownership Gap by Household Income 60 Loudoun County Housing Needs Assessment According to this analysis, Loudoun County would have 3,447 additional home owners if home ownership rates returned to the level from the mid-1990s (Figure 52). This difference includes an additional 1,432 home owners with incomes below the area median household income ($109,200 for a family of four in 2015). Households with incomes at the area median income could afford a home priced at about $500,000. About 60 percent of homes sold in Loudoun County in 2015 (3,300 homes) were priced below $500,000. About 80 percent of those homes priced under $500,000 had three or more bedrooms which suggests they could accommodate larger family and household sizes. It was not possible to estimate potential home ownership gaps at lower income levels; however, it is likely that households with lower incomes (e.g. at or below 80 percent of AMI) would have a harder time finding home ownership opportunities. At an income of $87,360 for a family of four, these households could afford to purchase a home priced at about $392,000, a level below which it is much more difficult to find housing. This analysis of the home ownership gap in Loudoun County has at least two implications. First, for higher income households, the decline in home ownership is likely due to a lack of inventory as well as other factors, including higher debt levels, lower credits scores and/or difficulty accessing credit. Second, while external factors are important for more moderate income households, as well, the market has not been particularly effective at producing home ownership opportunities below $400,000 or even below $500,000. The average price of a new home in Loudoun County in 2015 was over $560,000. Summary of Housing Gaps Based on this analysis of current gaps, there are at least 134 (and potentially up to 469) homeless adults and children with urgent needs for housing. In addition, there is a potential unmet need for about 11,200 rental units to meet demand among cost burdened renter households. The vast majority (91 percent) of unmet rental housing needs are among households with incomes below 80 percent of AMI ($87,350 for a family of four). Three quarters of the estimated unmet rental demand is among households with incomes below 60 percent of AMI ($65,520 for a family of four.) Even with County programs that target this population, there remains a substantial gap between housing supply affordable at this income level. Finally, it has been estimated that there is a gap of 3,400 home ownership units, which would be needed to return the County to a more typical, long-term home ownership rate. These estimates of the current housing gap suggest there is a mismatch between the County’s current housing stock and the needs of current County residents, particularly low-income renters and low- and moderate-income home owners (or would-be home owners). Thousands of households in the County are cost burdened, live double or tripled up, or are excluded from the home ownership market because of a lack of a sufficient supply of housing affordable to households all along the income spectrum. Furthermore, these estimates of the current gap likely understate the full extent of the housing needs because they do not include housing needed for Loudoun County workers who currently live outside of the County but would prefer to live in the County. 61 Loudoun County Housing Needs Assessment Section II: Forecasts of Housing Demand The GMU consulting team prepared forecasts of housing demand in Loudoun County over the 2015 through 2040 period. The GMU methodology is a regional forecasting model based on local and regional employment growth and demographic trends. The primary driver of these forecasts is employment growth. These employment-driven forecasts reflect a housing demand that is not constrained by the amount or type of housing supply suggested by County land use plans or zoning. Instead, the GMU forecasts are based on an examination of projected future local and regional employment growth and assumptions about the amount of housing that would be needed to accommodate the growing workforce. These forecasts also take into account the aging of the population over the forecast period. There are three primary objectives of producing these forecasts: 1) To identify the economic and demographic factors that will drive household growth and housing demand in Loudoun County over the next 25 years; 2) To describe the characteristics and housing preferences of future households with a desire to live in the County, and 3) To measure the difference between the number of housing units that would be needed to meet the estimated housing demand and the number of housing units that would be accommodated given the County's planned land use, its long-range supply of land, and its land use/development constraint. Summary of the Forecast Process The forecasts described in this report use both employment trends and demographic trends to estimate the demand for housing in Loudoun County. A detailed methodology is included in the Appendix; this section provides an overview of the forecasting process. For these forecasts, the demand for housing in Loudoun County comes from one of two sources: 1) workers with a job located either in Loudoun County or somewhere else in the Washington DC region (“employment-driven” demand) and 2) other residents that are projected to be in the County generally for non-employment reasons38, primarily retirees (“demographic-driven” demand). The majority of future housing demand in Loudoun County will be related to employment growth, or from workers with a payroll job39, or a position with a regular wage or salary, in Loudoun County or somewhere else in the Washington DC region. For these housing demand forecasts, future workers are expected to live in Loudoun County at the same rates as they currently do. In addition, some workers with jobs in other parts of the region are also assumed to live in Loudoun County in the future at the same rates they do currently. 38 The demographic-driven forecasts include people with non-payroll jobs (i.e. self-employed workers). 39 Payroll employment is the type of employment that is covered by unemployment insurance and is included in estimates from the Bureau of Labor Statistics and employment forecasts from IHS Economics, which are used for this analysis. 62 Loudoun County Housing Needs Assessment In addition to housing demand associated with net new jobs, these forecasts estimate the amount of housing that will be needed to accommodate replacement workers—that is, workers filling jobs vacated by retirees. The estimates of future employment growth that drive these housing demand forecasts are based on forecasts of employment growth by industry sector from IHS Economics and the MWCOG. Assumptions about worker characteristics are used to forecast households and then housing units (Figure 1). For these housing demand forecasts, the remainder of future housing demand in Loudoun County is derived from demographic trends, specifically the trends that will drive the need for housing for retirees, students, and some types of self-employed residents. A separate forecasting process based on projected age and sex of the population40 was used to determine how many of these households will be expected to live in the County by 2040, along with the types of housing they will demand (Figure 2). 40 The householder and the head of household is used interchangeably throughout this report. Note: These figures depict a high-level representation of the forecasting process. A detailed, step-by-step description of the forecasting methodology is included in the Appendix. 63 Loudoun County Housing Needs Assessment For both groups, these forecasts include estimates of household characteristics of future households. The household characteristics—including age of the household head, household size and composition, and household incomes—are used to predict housing unit preferences. Key Assumptions GMU’s approach to forecasting housing demand is different from forecasts prepared by the County for MWCOG or by other consultants. These forecasts are designed to reflect the amount and types of housing that would be needed to support economic growth and accommodate the aging of the population in Loudoun County over the 2015 to 2040 period, and are not limited or influenced by supply constraints or pipeline development. These housing demand forecasts are highly dependent on assumptions about economic and demographic trends. Key assumptions of the GMU forecasting methodology are described below: 1. Employment growth. These forecasts are based primarily on local and regional employment growth and the housing that will be needed to accommodate new workers. Future regional employment growth by industry sector is based on forecasts from IHS Economics and MWCOG. Between 2015 and 2040, it is estimated that Loudoun County will add 107,100 net new jobs. Over that same time period, the Washington DC metropolitan area is expected to add 745,300 net new jobs, including Loudoun County jobs. 2. Commuting patterns. For these housing demand forecasts, the share of new workers that will be housed in Loudoun County in the future is based on assumptions about commuting patterns. It is assumed that Loudoun County will continue to house the same share of its own workers that it does now, based on an analysis of commuting patterns of current Loudoun County workers by industry and age. These housing demand forecasts also assume that Loudoun County will continue to house workers who have jobs in other jurisdictions at the same rates at which it does now, allowing for housing in the future to accommodate Loudoun County residents who will work outside the County. 3. Housing preferences. For these housing demand forecasts, it is assumed that housing preferences will not change over time, after taking into account household characteristics and household income. Therefore, these forecasts assume that particular types of households (e.g. single people under age 45, married couples with children, seniors) with particular incomes will prefer the same type of housing that people with those characteristics currently do. For example, if 41 percent of two-adult households with an income over 120 percent AMI (about $100,000) lives in owner- occupied single-family housing now, these forecasts assume that about 41 percent of future two- adult households with an income of 120 percent of AMI will want to live in owner-occupied single- family housing. These three assumptions are the main drivers of the housing demand forecasts presented in this report. Other assumptions that are included as part of this forecasting model are assumptions about the age distributions of future workers, the wages of future jobs by industry sector, the retirement rates among the current and future workforce, and migration patterns. Details about the forecasting methodology and all assumptions are included in the Appendix. 64 Loudoun County Housing Needs Assessment Changes to any of these assumptions or changes to the forecasting methodology more generally will result in different estimates of future housing demand. The Scenarios section at the end of this report provides an analysis of the potential impact of altering these and other assumptions. The rest of this section describes the key economic drivers of these housing demand forecasts, summarizes the estimates of future household growth and household characteristics that result from this forecasting process, and summarizes estimates of future housing units by type that would be required to meet future demand as estimated by this methodology. This report concludes with a discussion of how these forecasts differ from land use plan-based forecasts produced by the County and a discussion of alternative outcomes if key assumptions that are part of this forecasting methodology were changed. 65 Loudoun County Housing Needs Assessment Economic Drivers of Housing Demand in Loudoun County The primary driver of housing demand in Loudoun County will come from growth in the labor force, both as a result of job growth in Loudoun County as well as job growth in the greater Washington DC region.41 The ability for Loudoun County to grow its employment base and diversify its economy depends at least in part on the availability of a sufficient supply of housing of the right types and prices to meet demand. This section describes the projected employment growth and assumptions about regional commuting patterns that drive these housing demand forecasts. Over the forecast period, Loudoun County is expected to expand its role as an employment center in the Washington DC metropolitan area. The County is expected to add 107,100 jobs between 2015 and 2040. Over the same period, the Washington DC region is forecasted to gain 745,300 jobs, including those jobs that will be located in Loudoun County. Based on these employment forecasts, and given the other forecasting assumptions, these housing demand forecasts suggest there will be demand for 66,604 net new housing units in Loudoun County between 2015 and 2040 to accommodate 64,355 households.42 More than 86 percent of the forecasted household growth—55,445 total households—is expected to come from households with at least one worker. These 55,445 total working households includes 39,750 households that both live and work in Loudoun County and 15,665 households with a household head that works in another jurisdiction in the Washington DC region but chooses to live in Loudoun County (Figure3). The following describes the economic forecasts at the County and regional level that are key inputs to these estimates of future housing demand. 41 The Washington DC metropolitan area is comprised of the following jurisdictions: District of Columbia; City of Alexandria, Arlington County, Clarke County, Culpeper County, Fairfax County, City of Fairfax, City of Falls Church, Fauquier County, Loudoun County, City of Manassas, City of Manassas Park, Prince William County, Rappahannock County, Spotsylvania County, Stafford County, City of Fredericksburg, and Warren County in Virginia; Calvert County, Charles County, Frederick County, Montgomery County, and Prince George's County in Maryland; and Jefferson County in West Virginia. The greater Washington DC region includes an extended employment shed to determine the demand for housing in this forecast. For these forecasts, the greater Washington DC region also includes the counties of King George, Caroline, Orange, Madison, Page, Shenandoah, Frederick and the city of Winchester in Virginia, and the counties of Mineral, Hampshire, Morgan and Berkeley in West Virginia, and St. Mary's County, MD. 42 About 2,240 new housing units are expected to be vacant units based on typical housing vacancy rates. Figure 3. Forecasted Household Growth based on GMU Employment-Driven Housing Demand Forecasts Total Total Household Growth 64,355 Households with a Payroll Worker 55,445 Main Job In Loudoun County 39,780 Main Job Elsewhere in the Region 15,665 Households without a Payroll Worker 8,910 Source: GMU Center for Regional Analysis, Lisa Sturtevant & Associates, LLC 66 Loudoun County Housing Needs Assessment Employment Growth in Loudoun County Over the forecast period, Loudoun County is expected to expand its role as an employment center in the Washington DC metropolitan area. According to estimates from IHS Economics and MWCOG, between 2015 and 2040, the Washington DC region is forecasted to gain 745,300 jobs, for an increase of 23.5 percent. The number of jobs in the County is projected to grow more quickly, increasing 66.8 percent or by 107,100 jobs, between 2015 and 2040. By 2040, about 6.8 percent of the region's jobs will be located in Loudoun County, up from 5.1 percent in 2015. The specific types of jobs and the wages associated with those jobs are important determinants of housing demand in this forecasting model. Job growth in both the region and the County will be driven by the Professional & Business Services sector. In Loudoun County, the number of jobs in this sector is forecasted to more than double, increasing by 49,700 jobs between 2015 and 2040 (Figure 4). These gains will account for nearly half (46.4 percent) of all the job growth in the County over the forecast period. By 2040, 30.4 percent of all jobs in Loudoun County will be in the Professional & Business Services sector, up from 19.7 percent in 2015. The Professional & Business Services sector includes both high-wage occupations (e.g. Management) as well as lower-wage occupations (e.g. Administrative Support). In fact, these two occupations will constitute the largest increases in specific occupations over the forecast period. The second largest gains in the Loudoun County economy will be in the Education & Health Services sector. Over the next 25 years, this sector is projected to add 10,100 jobs in the County. The growth rate in this sector in Loudoun County is expected to exceed the growth rate in the region. By 2040, the Education & Health Services sector will account for 9.7 percent of all jobs in the County. Employment in State & Local Government in the County is forecasted to increase by 9,900 jobs between 2015 and 2040. The Leisure & Hospitality sector is projected to gain about as many jobs, adding 9,200 jobs between 2015 and 2040. Both the State & Local Government and the Leisure & Hospitality sectors will be more concentrated in Loudoun County than in the region. In 2040, 11.0 percent of all jobs in the County will be in State & Local Government while 9.9 percent will be in Leisure & Hospitality, compared to 9.9 percent and 8.9 percent, respectively, in the region. Figure 4. Job in Loudoun County by Sector (in 000s), 2015 and 2040 67 Loudoun County Housing Needs Assessment Of the jurisdictions in the region, Loudoun County is projected to have the second largest increase in jobs and the second highest job growth rate between 2015 and 2040. The District of Columbia is projected to have the largest absolute job gains during the forecast period. Culpeper County is projected to have the largest percentage increase in jobs. Largely due to the increase in Loudoun County, employment will be more dispersed geographically throughout the region by 2040. Employment Growth in the Washington DC Region According to forecasts from IHS Economics and MWCOG, the Washington DC region is expected to add 745,300 net new jobs between 2015 and 2040. Professional & Business Service employment is projected to have the largest gains, expanding by 492,100 jobs region-wide (Figure 5). Throughout the region, the second largest absolute increase in jobs will be in the Education & Health Services sector. During the forecast period, this sector will increase by 80,100 jobs, or 19.0 percent. The Construction, Natural Resource and Mining sector, which consists primarily of construction in the Washington DC metropolitan area, will have the third largest absolute increase between 2015 and 2040. In 2015, there were 150,300 jobs in this sector. By 2040, there are projected to be 223,200 jobs in this sector, an increase of 72,900 between 2015 and 2040. Summary of Economic Drivers These local and regional job growth forecasts are the primary driver of the housing demand forecasts for Loudoun County. The 107,100 net new jobs in Loudoun County and the 745,300 net new jobs region-wide will form the basis for most of the demand for housing in the County in the years to come. The shares of new workers that Loudoun County will house is a key assumption for this forecasting model. These housing demand forecasts assume that the rates of in-commuting for the future workforce will remain unchanged over time, given the characteristics of future worker households. Currently, approximately 56 percent of jobs located in Loudoun County are held by County residents. In addition, these forecasts assume that Loudoun County will continue to house workers in other jurisdictions at the same rates at which it does currently. Overall, the employment-driven housing demand estimates based on these assumptions suggest growth of 64,355 net new households in Loudoun County over the next 25 years, including 55,445 net new households with at least one payroll worker. Figure 5. Jobs in the Washington DC Region by Sector (in 000s), 2015 and 2040 68 Loudoun County Housing Needs Assessment Household Forecasts Future demand for housing in Loudoun County reflects not only local and regional economic growth but also change associated with the aging of the population, as well as forecasts of in- and out-migration, and birth and death rates. These forecasts assume that migration rates by age group, and birth and death rates will not change over the forecast period. Together, the employment-driven and demographic-driven components of this forecasting model result in overall forecasts of household growth in the County between 2015 and 2040. This section describes the characteristics of the future households suggested by the GMU forecasting model over the 25-year forecast period. The estimated characteristics of these households are based on expected characteristics of the labor force and the aging of the population through the forecast period. These household characteristics are used to predict the types of housing units that will be desired in Loudoun County in the future. Based on these housing forecasts, over the next 25 years, 64,355 new households are expected to want to live in Loudoun County. Thus, in 2040, these forecasts suggest 185,460 households in Loudoun County in 2040, up from 121,100 in 2015. Based on these forecasts, the majority of future household growth—about 86 percent—is expected as a result of net new jobs growth in the County and the region. The remaining household growth is expected to be associated with non-employment trends. Over the 25-year forecast period, households in Loudoun County are projected to increase an average of by 2.1 percent annually. The number of households in the County is projected to have the sharpest growth between 2015 and 2020, rising 2.4 percent per year. Household growth is expected to moderate over the forecast period, reaching 1.1 percent per year during the 2035-2040 period (Figure 6). By comparison, the number of households in Loudoun County increased by 3.0 percent annually between 2010 and 2015. Based on this forecasting methodology, the characteristics of future households—including their ages, household composition and incomes— are used to predict the types of housing future households in Loudoun County will prefer and the prices and rents they will be able to afford. Householder, or Head of Household The terms “head of the household” and “the householder” are used interchangeably throughout this report. Both terms refer to the person primarily responsible for running the household. While no single person is exclusively responsible for any household, each household is asked to provide this information when responding to the American Community Survey, which is utilized in these forecasts. Figure 6. Number of Households and Future Growth, Loudoun County, 2000-2040 GMU Employment-Driven Housing Demand Forecasts 69 Loudoun County Housing Needs Assessment Age of Householder43 Age is an important determinant of housing demand. Based on these employment-driven housing demand forecasts, Loudoun County is forecasted to have household growth across all age groups, led by the aging of both the Baby Boomer and Millennial generations and the emergence of Generation Z over the 25-year forecast period.44 Based on this forecasting model, the number of older adult households in Loudoun County, those headed by someone 65 years old and older, is expected to increase at the fastest rate during the forecast period.45 The largest absolute increase in households will be among those headed by someone between 35 and 44 years old, as the Millennials and older members of Generation Z age. These housing demand forecasts span a 25-year period. Therefore, the housing needs of residents who move to the County early in the forecast period will change as they age. In general, when presenting results from the housing demand forecasts, we present the overall change in households by age group over the 2015 to 2040 period. See detailed Appendix tables for five-year forecasts of household growth by age group. Baby Boomers Loudoun County, like the region and the nation, is expected to have relatively high growth in the number of senior households. This growth will be a result of the aging Baby Boomer population 43 In this report, the characteristics of households in 2015 applies the average rates using the 2012-2015 American Community Survey microdata to the 2015 total from the Loudoun County Department of Planning and Zoning. 44 The Baby Boomer generation includes people who were born between 1946 and 1964 and is the only generation with an official definition. While there is no universally accepted definition of Generation X, many demographers define them as those born between 1965 and 1981. The common definition of the Millennial generation are people born between 1982 and 2000. Generation Z is not yet fully defined as many in this generation have not yet been born but generally includes those born in the 20 years following 2001. 45 These forecasts only include seniors living in a household and exclude those who are living in nursing homes or other facilities with 24-hour care. Figure 7. Household Growth by Age of Householder, 2015 and 2040 GMU Employment-Driven Housing Demand Forecasts Figure 8. Household Growth by Age of Householder, 2015-2040 GMU Unconstrained Housing Demand Forecasts 70 Loudoun County Housing Needs Assessment and the increased ability of older adults to stay in their homes longer. The Baby Boomer generation is now between 52 and 70 years old. Between 2015 and 2030, all Baby Boomer households will be over 65 years old. Based on these housing demand forecasts, the number of senior households in Loudoun County is projected to increase by 44.3 percent between 2015 and 2040. Growth in the 65+ population is expected to slow between 2030 and 2040, but remain higher than the rate of growth for non-senior households. Advances in health care, life expectancy and technology will allow a larger share of seniors to stay in their homes for longer than ever before, which will play a role in this relatively high growth. Overall, based on these housing demand forecasts, the County is projected potentially to have 11,900 more senior households in 2040 than it did in 2015. Millennials Members of the Millennial generation are currently between 18 and 34 years old. Many of the oldest Millennials have formed their own households, but there is still another decade of younger Millennials who have yet to do so. These younger Millennials will drive the increase in the demand for housing from households headed by someone under 35 years old over the next decade. Based on these employment- driven forecasts, the demand from young households is expected to peak in 2025 when under-35 households are projected to account for 23.0 percent of all households in Loudoun County under this employment-driven forecast. By 2030, the majority of Millennial households will be over 35 years old, which means that there will be a shift in demand to more householders between 35 and 44 years old. By the end of the forecast period, Millennial households will be primarily split between the 35-44 and 45-54 age groups, which are forecasted to grow by 19,610 and 15,250 households, respectively, over the 25- year forecast period. Generation Z Based on these housing demand forecasts, Loudoun County is expected to have less demand for housing from Generation Z households than it does from Millennial households. After Millennials age out of the under 35 age group, the following generation in Loudoun County will not fully replace them, leading to a modest decline in the number of young households. In general, Generation Z will likely be smaller than the Millennial generation since they are born to parents who are members of a smaller generation. In addition, the employment forecasts that drive these housing demand forecasts suggest growth in sectors that tend to employ somewhat older workers, suggesting slower growth in young workers in the out years of the forecast period. Even with the slow growth in the under-35 population after 2025, demand from young households is projected to increase at a faster rate than overall demand. In 2040, these housing demand forecasts suggest that Loudoun County could have 11,010 more households headed by someone under age 35 than it did in 2015. Assessing household growth and housing demand by age group is important for underscoring the importance of having a housing stock that can accommodate residents throughout the life cycle. Without options that meet the different needs of people and families at different ages, there is a possibility that Loudoun County could have difficulty attracting and retaining some types of households, particularly young working households, families with children, and seniors. Age, along with household income, is a strong predictor of housing preference. Younger households, regardless of generation, will be more likely to demand rental units than other age groups. As households age, they are more likely to be home owners. Similarly, younger households are more likely to demand 71 Loudoun County Housing Needs Assessment either multi-family or single-family attached homes than are older households. Older households are more likely to prefer to live in a single-family detached home. These housing demand forecasts account for changing housing needs over the 25-year period. More details are provided below about the specific types of housing units that these household growth projections suggest will be needed in Loudoun County. Labor Force Participation Most of the demand for housing in Loudoun County will be from working households, with at least one household member with a payroll job. Currently, the majority (87.4 percent) of households in Loudoun County have at least one person in the household with a payroll job. While this trend is expected to continue throughout the forecast period, the retirement of the Baby Boomers and the larger share of senior households, more generally, will result in somewhat faster growth and increasing housing demand from non-working households (Figure 9). The number of non- payroll job households does include households with only self-employed workers. These forecasts assume that the growth of self-employment, including the gig economy (e.g. independent workers who contract with companies on a short-term basis), will grow at similar rates as in the past. Projections of the shares of working and non-working households has important implications for estimates of future household incomes which in turn has implications for housing demand. In 2015, there were 15,240 households in Loudoun County without a payroll job, consisting of retirees, students and some types of self-employed people. By 2040, based on these employment-driven and demographic-driven housing demand forecasts, the County is expected to have demand from an additional 24,160 households without a payroll job. Nearly all of the increased demand from households without a payroll job will be driven by older adult households. The majority of these future retirees in these housing demand forecasts are currently living in Loudoun County and working within the region and are forecasted to desire to remain in the County, either aging-in-place or aging-in-community, after retirement. Households without a payroll job are projected to have lower household incomes than working households which has implications for the types of housing they will need in the future. Figure 9. Share of Growth from Households without a Payroll Job, Loudoun County and the Washington DC Region GMU Employment-Driven Housing Demand Forecasts 72 Loudoun County Housing Needs Assessment Disability Status Based on these housing demand forecasts, which take into account prevalence of disability status by age group, the demand from households with at least one person with a disability is expected to increase at a slightly lower rate than the overall household growth rate in Loudoun County. In 2015, 16,530 households in Loudoun County had at least one person with a disability. Based on these housing demand forecasts, by 2040, there could be demand from 24,750 households with a person with a disability, an increase of 8,210 households over the 25-year period (Figure 10). The majority of this increase (4,260 households) is driven by the growth in the number of seniors, who are more likely to be disabled. Because households with a person with a disability are more likely to be older, their housing preferences are expected to be similar to those of senior households in this analysis of housing demand. These housing demand forecasts therefore suggest growing needs for homes of all types that are accessible to individuals with both physical and mental challenges. Household Size These housing demand forecasts estimate the household size and composition of projected future households that will desire housing in Loudoun County over the 2015 to 2040 period. Household sizes in Loudoun County are larger than in many other parts of the region. These employment-driven housing demand forecasts suggest that larger households will continue to desire housing in Loudoun County in the future, and the growth of larger households has implications for the types of housing that these households will demand. Under these employment-driven forecasts, the number of households with at least four people in Loudoun County is projected to rise from 43,070 in 2015 to 65,760 in 2040, reflecting an increase of 22,680 households (Figure 11). Based on these forecasts, households with four or more people are projected to account for the largest absolute increase in households in Loudoun County over the next 25 years. Based on these housing demand forecasts, the fastest growth rate is projected to be among single people living alone. In 2015, there were 20,700 one-person households in Loudoun County. By 2040, these housing demand forecasts suggest there will be demand from 33,980 one-person households, an increase of 13,280 household over the 2015 to 2040 period. Figure 10. Growth in Households with at least One Disabled Person, 2015-2040 GMU Unconstrained Housing Demand Forecasts 73 Loudoun County Housing Needs Assessment By 2040, these housing demand forecasts suggest the County will have demand from an additional 16,610 two- person households. By 2040, the forecasting model suggests that almost half (48.5 percent) of these two-person households will be headed by someone who is at least 55 years old. Three-person households are projected to have the smallest absolute increase in demand during the forecast period. In 2015, there were 23,420 three person households in the County. By 2040, these housing demand forecasts suggest there will be demand for housing in Loudoun County from an additional 11,780 three-person households. The sizes of future households in Loudoun County have important implications for the types of housing that will be needed to accommodate future residents. For example, people living alone are more likely to be renters than other households. Households with more people are less likely to prefer to live in multi- family homes than are people living alone. Summary of the Characteristics of Future Households Given the assumptions about employment growth, commuting patterns, ages and household composition of workers, and retirement and migration rates, these housing demand forecasts suggest that the County could add 64,355 new households over the 2015 to 2040 period. The characteristics of future households—including age and household size and composition—are based on an assessment of current commuting patterns and an assumption that in the future Loudoun County will continue to house the same share of its own workers and other workers in the region. These forecasted household characteristics—along with estimates of household income (see below)—are critical determinants of the forecasts of the housing unit types that will be desired in Loudoun County over the next 25 years. Figure 11. Households By Household Size, 2015 and 2040 GMU Employment-Driven Housing Demand Forecasts 74 Loudoun County Housing Needs Assessment Household Income Forecasts These employment-driven housing demand forecasts suggest a need for housing to accommodate households all along the income spectrum. Based on these forecasts, Loudoun County is expected to add a substantial number of relatively high income households, reflecting the characteristics of new high-skill jobs expected to come to the County. The County is also expected to see demand for housing from lower- income households, including workers in low-wage industries and seniors and others living on fixed incomes. Household income is a key determinant of the types of housing that will be demanded, with higher income households more likely to demand single-family housing. Households by Area Median Income Over the forecast period, there is expected to be household growth and demand for housing among every income group. Using data on wages by industry sector and with assumptions about the incomes of households without a payroll job, these forecasts include estimates of household growth by household incomes as measured by percent of the area median income (AMI). Based on these housing demand forecasts, compared to 2015, there could be a somewhat smaller share of households earning less than 150 percent AMI and a somewhat higher share with incomes 150 percent AMI or above in 2040 (Figure 12). This forecasted shift in incomes is primarily due to the growth in higher wage Professional & Businesses Services sector jobs in Loudoun County, and the continued pattern of higher income workers both living and working in the County. In 2015, about 8,090 households in Loudoun County had incomes below 30 percent of AMI, or a household income of up to $22,930 for a single person or $32,760 for a household of four. Between 2015 and 2040, these forecasts suggest demand from 3,200 additional households with incomes below 30 percent of AMI, reflecting an increase of 39.5 percent over the 25-year period. About half of these extremely low income households in 2040 will not have a payroll job and the majority will be senior households. Based on these employment-driven housing demand forecasts, between 2015 and 2040, the number of households with incomes between 30 and 49 percent of AMI could increase from 8,220 to 11,690, or an additional 3,470 households over the forecast period. About a third of the household growth in this income range will be from households who do not have a payroll job and the rest is from those employed in lower wage jobs. By 2040, these forecasts suggest there will be demand for housing in Loudoun County from 8,670 households with incomes between 50 and 59 percent of AMI, rising from 5,560 households with incomes in this range in 2015, or an increase of 3,120 or 56.1 percent. The number of households in this AMI group is projected to have relatively fast growth, primarily as a result of increases in households with a low wage job, including many jobs in the Retail and Leisure & Hospitality sectors. In 2040, over a quarter (26.3 percent) of these households will be headed by someone between 35 and 44 years old and nearly a quarter (23.5 percent) will be senior households. Between 2015 and 2040, the housing demand forecasts suggest an additional 4,730 households in Loudoun County with incomes between 60 and 79 percent of AMI. These households tend to be in their 30s and 40s, many are young families with children and may be looking to buy a first home. 75 Loudoun County Housing Needs Assessment In 2015, there were 12,220 households earning between 80 and 99 percent of AMI. By 2040, these housing demand forecasts suggest there will be 17,910 households in this AMI group who desire to live in Loudoun County, an increase of 5,690 households and 46.5 percent. Between 2015 and 2040, the number of households with incomes between 100 and 119 percent of AMI is forecasted to increase from 12,820 to 19,270, or by 6,450 households and 50.3 percent. The number of households with incomes between 120 and 149 percent is forecast to increase by 7,890, or 49.0 percent. Together, based on these employment-driven demand forecasts, nearly a quarter (22.3 percent) households will have incomes between 100 and 149 percent of AMI. Many of these households are headed by someone in their late 30, 40s and early 50s, including many families with children, and nearly all include a payroll worker. Based on these forecasts, which include assumptions that in-commuting rates will remain fairly constant over time and that Loudoun County will continue to house the same share of its workers that it does now, households earning 150 percent or more of AMI are projected to continue to account for the majority of the household growth throughout the forecast period. In 2015, 47,060 households in Loudoun County had incomes of 150 percent or more of AMI, or 38.9 percent of all households in the County. By 2040, these housing demand forecasts suggest that there could be 76,870 households—or 41.4 percent of all households—in this income group. Nearly half of the future housing demand predicted by the model (46.3 percent) will come from households with incomes of 150 percent of AMI or higher. Figure 12. Household Growth by Household Income, 2015-2040 GMU Employment-Driven Housing Demand Forecasts 76 Loudoun County Housing Needs Assessment Housing demand from higher income households is being driven by the very high-income households, those earning 200 percent or more of AMI. Based on these employment-driven housing demand forecasts, between 2015 and 2040, it is expected that there will be 18,550 new households in this high-income group that will desire housing in Loudoun County. Most of these high-income households will have at least one worker with a job in Loudoun County. Overall, high-income households are most likely to be headed by someone between 35 and 54 years old and include a significant number of families with children. Higher income households are significantly more likely to demand single-family homes compared to households with lower incomes. 77 Loudoun County Housing Needs Assessment Housing Unit Forecasts In these employment-driven housing demand forecasts, the estimated characteristics of future households are used to predict the types of housing units that will be needed to meet demand. This model of housing demand assumes that housing preferences will be determined based on the age of the household head, the composition and size of the household, and household income. It is further assumed that housing preferences will not change over the forecast period, given these household characteristics. In other words, if larger households with higher incomes are relatively more likely than others to live in single-family ownership housing now, then these forecasts assume that larger households with relatively higher incomes will be more likely than others to want to live in single-family ownership housing in the future. Changes to assumptions about housing preferences would result in different results than what are presented from this forecasting model. If, for example, there is a sustained, long-term shift in preferences for more multi-family and/or rental housing, then the GMU forecasts will have underestimated the future demand for this type of housing in the County. In these employment-driven forecasts, projections of household growth and housing demand are not limited by land use, pipeline development or land supply in the County. Rather, these estimates look at the patterns of housing preferences for households of different types, given labor force growth and demographic change. Thus, this model provides estimates of the number and types of households that will want to live in Loudoun County over the next 25 years, and then uses characteristics of these forecasted households to forecast the types of housing units they will want to live in. This section describes in more detail the characteristics of the housing units that would be needed to accommodate forecasted household growth in Loudoun County over the 2015 to 2040 period, based on this forecasting methodology. Over the 25-year forecast period, based on the economic and demographic factors that are assumed to drive household growth and housing demand, these forecasts suggest that Loudoun County will continue to be a community of home owners and that desire for single-family housing will continue to be strong. The primary driver of the demand for single-family housing in Loudoun County is the projected growth in large (4+ people), high income households, many including workers in high-wage professional and technical services jobs expected in the region. There will be a modest shift towards a greater share of multi-family units over the forecast period; demand for multi-family units is projected to grow at a faster rate than the demand for either single-family detached homes or townhomes. The demand for home ownership is expected to be strong with growing demand for both multi-family home ownership and single-family home ownership over the next 25 years. 78 Loudoun County Housing Needs Assessment Tenure Tenure—whether someone rents or owns— is strongly associated with age, household composition and size, and household income. Characteristics of forecasted households are used to forecast tenure choice. Based on these housing demand forecasts, the home ownership rate in Loudoun County is expected to increase modestly between 2015 and 2040 as a result of demand from older households, families and higher income households. In 2015, the home ownership rate in Loudoun County was 77.0 percent. By 2025, based on these housing demand forecasts, 77.5 percent of occupied housing units will be owner-occupied. The ownership rate is forecasted to remain at 77.5 percent until 2035, when it will rise slightly to 77.6 percent. The ownership rate is projected to remain at 77.6 percent in 2040. Between 2015 and 2040, these forecasts suggest a need for 50,560 additional home ownership units in Loudoun County over the 2015 to 2040 period to accommodate forecasted household growth (Figure 13). The demand for rental units is projected to increase by 13,710 units over the 25-year period. Thus, if Loudoun County accommodated estimated future household growth suggested by these employment- driven housing demand forecasts, there would be a total of 143,880 owner-occupied homes and 41,580 renter-occupied homes in the County in 2040. In 2015, there were 93,230 owner-occupied housing units and 27,870 renter-occupied housing units. Figure 13. Household Growth by Tenure, 2015-2040 GMU Employment-Driven Housing Demand Forecasts 79 Loudoun County Housing Needs Assessment Housing Type These housing demand forecasts include estimates of the type of home each future household will prefer based on a set of household characteristics. Like housing tenure, preferences for different housing types are highly correlated with the age of the household head, household composition and size, and household income. Based on these housing demand forecasts which predict preferences for housing units type based on characteristics of projected future in Loudoun County over the 2015 to 2040 period, there will be growing demand for all housing types over the forecast period (Figure 14). Assuming no changes in the relationship between household characteristics and housing preferences, these housing demand forecasts suggest Loudoun County would need to add 32,784 single-family detached homes to meet demand, an increase of 50.4 percent over the 25-year period. These housing demand forecasts suggest that between 2015 and 2040, there will be demand for 21,395 additional single-family attached homes/townhomes in Loudoun County to meet expected household growth, which reflects an increase of 56.4 percent over the 25-year period. These housing demand forecasts suggest that demand for homes in multi-family buildings will grow slightly faster than the demand for single-family homes over the forecast period. In 2015, there were 18,060 multi-family homes in the County. Between 2015 and 2040, there is expected to be demand for 10,178 new multi-family housing units, which reflects an increase of 56.3 percent over the forecast period. Figure 14. Household Growth by Housing Type, 2015- 2040 GMU Employment-Driven Housing Demand Forecasts 80 Loudoun County Housing Needs Assessment Detailed Housing by Unit Type As stated previously, these housing demand forecasts rely on characteristics of future households, including age, household composition, household size, and household income, to estimate the types of housing that future households in Loudoun County will demand. Both housing tenure and housing unit type preference are highly correlated with these socioeconomic characteristics. These housing demand forecasts assume that housing preferences will not change in the future for households with given characteristics. These housing demand forecasts include estimates of the demand for housing by both tenure and housing unit type. While these housing characteristics can be considered separately, it can also be helpful to combine tenure and type in estimates of future housing needs. Planning for multi-family rental housing, for example, might involve different policies or strategies than planning for multi-family ownership housing (i.e. condos). Based on these employment-driven housing demand forecasts, the fastest growth in housing demand will be for home ownership units in multi-family buildings, followed by home ownership units in single-family attached homes (Figure 15). These housing demand forecasts suggest that the number of multi-family ownership units in the County would have to increase by 70.8 percent between 2015 and 2040 to accommodate the projected household growth. The number of single-family attached homes/ townhomes would have to increase by 57.9 percent between 2015 and 2040 to meet forecasted household growth. Between 2015 and 2040, these housing demand forecasts suggest a need for an additional 3,040 multi- family ownership units (i.e. condos) to meet demand in the County (Figure 16). Despite the growth in demand, this unit type will remain a small share of the overall housing stock in Loudoun County, accounting for just 4.0 percent of all homes in 2040 if the demand for all housing types suggested by these forecasts is accommodated. Figure 15. Percent Increase in Occupied Housing Units by Unit Type, 2015 to 2040 GMU Employment-Driven Housing Demand Forecasts Figure 16. Overall Increase in Occupied Housing Units by Unit Type, 2015 to 2040 GMU Employment-Driven Housing Demand Forecasts 81 Loudoun County Housing Needs Assessment These housing demand forecasts also suggest there will be strong demand for multi-family rental units in the County over the forecast period. Between 2015 and 2040, these forecasts suggest that the County would need to add 7,140 multi-family rental units to meet forecasted demand. By 2040, multi-family rental units would account for 11.3 percent of the housing stock, if the supply meets the projected demand. Between 2015 and 2040, these housing demand forecasts suggest there will be demand for 16,930 additional single-family attached ownership units. If the total demand is met during the forecast period, owner-occupied townhomes will account for a quarter (24.9 percent) of the housing stock in Loudoun County in 2040, up from 24.2 percent in 2015. These housing demand forecasts suggest that there will be continued strong demand for single-family detached ownership housing in Loudoun County over the next 25 years. In 2015, there were 59,680 single- family home ownership units in Loudoun County, which accounted for 49.3 percent of all occupied homes. Between 2015 and 2040, these housing demand forecasts suggest there will be demand for an additional 30,680 single-family detached homes occupied by home owners. Both single-family detached and attached rental units will be a relatively smaller share of the housing demanded in 2040 when compared to 2015, but the decrease is projected to be fairly small. Single-family detached rentals are projected to shrink to 4.1 percent of the housing stock in 2040 from 4.5 percent in 2015. Even with the relative decline, these housing demand forecasts suggest there will be demand for 2,110 additional single-family detached rental homes during this period. Similarly, single-family attached rentals will account for 7.1 percent of the demand in 2040; in 2015 7.2 percent of all occupied housing units were single-family attached rentals. Nevertheless, these forecasts suggest demand for an additional 4,460 single-family attached rental homes between 2015 and 2040. Summary of Housing Unit Characteristics Given assumptions about employment growth, wages, in-commuting household preferences, household characteristics and other factors, these housing demand forecasts suggest that there is a need for 66,604 net new housing units to accommodate 64,355 new households in the County over the 2015 through 2040 period. These forecasts suggests a need for a wide range of housing types to accommodate expected household growth in the County. Given the projected characteristics of future households, including significant growth in large households and high income households, the employment-driven housing demand forecasts suggest strong demand for single-family housing over the 25-year forecast period. 82 Loudoun County Housing Needs Assessment Housing Affordability Forecasts These housing demand forecasts suggest that households of all income levels will need housing in Loudoun County in the years to come. As part of these forecasts of future housing demand, rates of cost burden are also forecasted. Currently, about one quarter of Loudoun County home owners and nearly half of County renters are cost burdened, spending 30 percent or more of their income on housing costs. Based on these housing demand forecasts, over time, housing affordability challenges are not expected to improve for many households in Loudoun County, and for many at the lowest income levels, the challenges will be exacerbated in the future. This pattern of growing housing affordability challenges is expected to occur not only in Loudoun County, but throughout the region. Assuming that all forecasted households are accommodated in the County and that housing costs rise at the same rates as incomes, the County’s overall rate of housing cost burden is projected to decline slightly over the forecast period, however extremely low income households will have higher cost burden rates by 2040 when compared to 2015. Housing Cost Burden and Rental Rates and Home Prices Affordable to Households It is challenging to estimate what housing cost burden rates will be in Loudoun County in the future. For this analysis, assumptions about household incomes relative to housing costs were made in order to estimate housing cost burden rates for different types of households. By 2040, it is estimated that 25.3 percent of all households in the County will spend more than 30 percent of their income on rent or owner costs and be defined as housing cost burdened. Based on these employment-driven forecasts of household growth and housing demand in Loudoun County, the overall rate of housing cost burden in Loudoun County is projected to be slightly lower in 2040 than it was in 2015 (26.6 percent). The modest overall decline is a result of projected growth in higher income households and in owner households in Loudoun County, two groups that tend to be less likely to be cost burdened. Despite the modest decline in the overall housing cost burden rate in the County, several groups will continue to face serious housing affordability challenges in Loudoun County. Throughout the forecast period, renters will continue to be significantly more likely to be cost burdened than owners (Figure 17). In 2015, 39.1 percent of all renters were cost burdened. Based on these housing demand forecasts by 2040, this share is projected to fall to 38.1 percent. But this decline is projected to occur near the end of the forecast period. Between 2015 and 2020, cost burden rate among renters is projected to rise to 39.3 percent, and then stabilize at about 39.1 percent during the 2025 to 2035 period. An increase in the projected number of higher-income renters over the forecast period is largely driving these renter cost burden trends. Home owners in Loudoun County are also projected to be relatively less burdened in 2040 compared to 2015, with the declines in the rate of cost burden among home owners forecasted for each five year interval. In 2015, 22.8 percent of home owners were housing cost burdened. During the next decade, this rate is projected to decline to 21.4 percent. Similar to renter households, the primary reason for the Measuring Housing Affordability Affordability is typically measured by comparing a household’s income to its housing costs. When a household spends 30 percent or more of its income on housing, it is referred to as “cost burdened.” A household spending 50 percent or more of its income on housing is referred to as “severely cost burdened.” 83 Loudoun County Housing Needs Assessment decline in rates of cost burden is a result of the forecasting model which projects an increase in demand for housing in Loudoun County from higher income households. For some groups, cost burden rates are projected to rise over the forecast period. A greater share of extremely low income households (e.g. with incomes less than 30 percent of AMI) is projected to be cost burdened in 2040 compared to 2015, facing increasing challenges finding housing they can afford in the County. About three-quarters (74.6 percent) of extremely low income households were housing cost burdened in 2015. By 2040, that share is projected to rise to 78.2 percent. Based on this analysis, rates of housing cost burden are also projected to rise for more moderate-income households. The share of households earning 70 to 79 percent of AMI that is cost burdened is expected to rise from 45.3 percent in 2015 to 46.7 percent in 2040. Among households earning 80 to 99 percent of AMI, the rate of housing cost burden is projected to rise from 35.7 percent to 36.4 percent over the forecast period. The primary reason for this shift is an increase in the share of renters in these income groups, who are more likely to be cost burdened. The rates of housing cost burden for nearly every other income group are projected to decline slightly between 2015 and 2040. Low- and moderate-income households earning less than 80 percent of AMI will continue to have difficulty finding housing that is affordable to them during the forecast period. Many of these households will be renters—some by choice, but others out of necessity. Home ownership may be increasingly out of reach for more moderate-income households in Loudoun County over the forecast period. The majority of low income renters will have difficulty finding a home that is affordable to them (Figure 19). These housing demand forecasts suggest an additional 5,180 extremely low income households will be in Loudoun County in 2040. These households will only be able to afford rents between $570 and $820 Figure 18. Percent of Housing Cost Burdened Households by Area Median Income, 2015 and 2040 Figure 17. Percent of Housing Cost Burdened Households by Tenure, 2015-2040 84 Loudoun County Housing Needs Assessment per month (in 2015 $s), depending on their household size. Homes that have rents in this range will be difficult to find in Loudoun County (or in many places in the Washington DC region). Households earning less than 50 percent of AMI are expected to have nearly as much difficulty finding an affordable apartment with maximum rents of between $960 and $1,370 per month, depending on the size of the household. Summary of Housing Affordability Forecasts Overall, over the forecast period, low income households regardless of tenure, senior households, and renter households with at least four people or those that include at least one person with a disability are more likely to be housing cost burdened in Loudoun County both now and in the future, according to these housing demand forecasts. Among home owners, single-person households will be most likely to be cost burdened in Loudoun County. 85 Loudoun County Housing Needs Assessment Income Limit Maximum Affordable Rent ($) Maximum Affordable Home Price ($) 30% AMI 1 Person 22,930 570 80,260 2 People 26,210 660 91,730 3 People 29,480 740 103,190 4 People 32,760 820 114,660 50% AMI 1 Person 38,220 960 133,770 2 People 43,680 1,090 152,880 3 People 49,140 1,230 171,990 4 People 54,600 1,370 191,100 70% AMI 1 Person 53,510 1,340 187,280 2 People 61,150 1,530 214,030 3 People 68,800 1,720 240,790 4 People 76,440 1,910 267,540 80% AMI 1 Person 61,150 1,530 214,030 2 People 69,890 1,750 244,610 3 People 78,620 1,970 275,180 4 People 87,360 2,180 305,760 100% AMI 1 Person 76,500 1,913 267,750 2 People 87,400 2,185 305,900 3 People 98,300 2,458 344,050 4 People 109,200 2,730 382,200 Figure 19. Rents and Home Prices Affordable to Households by Area Median Income, 2015 Dollars Source: U.S. Department of Housing and Urban Development, GMU Center for Regional Analysis, Lisa Sturtevant & Associates, LLC. Maximum rents are based on 30 percent of monthly household income. Maximum home prices are 3.5 times household income. 86 Loudoun County Housing Needs Assessment Forecasts of Potential Future Housing Gaps The GMU forecasts of housing demand based on estimates of local and regional employment growth and demographic changes and driven by assumptions about commuting patterns, housing preferences and other factors, are compared to forecasts prepared by Loudoun County for the MWCOG Round 9.0 cooperative forecasting process. The MWCOG Round 9.0 forecasts are Loudoun County's most recently released set of forecasts, submitted to MWCOG on March 21, 2016. These land use plan-based forecasts reflect approved projects remaining to be built, the County's planned land use, the County's long-range supply of land, and land use/development constraints. The most recent Round 9.0 forecasts reflect recent development activity in the County, market conditions, rezonings, comprehensive plan amendments, and Metrorail’s estimated arrival in 2020. As such, the County/MWCOG forecasts take into account land use plans and current land use constraints in estimating future household growth, and are referred to as “land use plan-based forecasts.” By contrast, the GMU forecasts are not limited by County land use plans, zoning, or development capacity, but rather examine anticipated future employment growth and population trends to, along with a set of assumptions, to forecast potential household growth and housing demand in Loudoun County. The GMU housing demand forecasts suggest faster household growth in Loudoun County over the 2015 to 2040 period than is suggested by the County/MWCOG land use plan-based forecasts. Furthermore, given the methodology and assumptions used, the GMU forecasts of housing demand suggest greater demand for single-family housing and lower demand for multi-family housing than what is suggested by the land use plan-based forecasts developed by the County for the MWCOG cooperative forecasts. Household Forecasts. The GMU employment-driven forecasts suggest a total of 185,460 households in Loudoun County in 2040, while the land use plan-based County/MWCOG forecasts estimate a total of 167,590 households in 2040, a difference of 17,870 households (Figure 20). The GMU employment-driven forecasts suggest an average annual household growth rate of 2.1 percent over the 2015 through 2040 period, while the County’s land use plan-based household forecasts suggest an annual household growth rate of 1.5 percent over the 2015 through 2040 period. Between 2010 and 2015, the number of households increased at an annual average rate of 3.0 percent. The GMU employment-driven forecasts suggest a slowdown in household growth over time, but the land use plan-based forecasts suggest a slower growth rate over the 25-year period. Year GMU Employment-Driven Household Forecasts Loudoun County / MWCOG Land Use Plan-Based Household Forecasts Difference 2015 121,100 121,100 - 2020 136,270 137,910 1,640 2025 150,610 150,760 150 2030 164,640 158,570 (6,070) 2035 175,860 164,330 (11,530) 2040 185,460 167,590 (17,870) Figure 20. GMU Employment-Driven Household Forecasts and County/MWCOG Land Use- Based Household Forecasts, 2020 - 2040 87 Loudoun County Housing Needs Assessment Housing Units. The GMU employment-driven forecasts suggest a total of 193,680 housing units in 2040 (including occupied and vacant housing units), while the County/MWCOG forecasts suggest a total of 175,380 housing units in 2040, a difference of 18,300 housing units. However, there are significant differences in the GMU employment-driven forecasts and the land use plan-based forecasts in terms of the unit mix. Specifically, the GMU forecasts suggest a demand for significantly more single-family housing and less multi-family housing than the County/MWCOG land use plan-based forecasts. The GMU employment-driven housing demand forecasts suggest that in 2040, there will be a demand for 101,120 single-family detached homes, 61,450 single-family attached homes/townhomes, and 31,110 units in multi-family buildings. Therefore, between 2015 and 2040, these housing demand forecasts indicate that Loudoun County would have to accommodate 33,620 net new single-family detached units, 22,060 net new single-family attached units and 10,911 net new multi-family units above what was on the ground in 2015 to meet the demand suggested by GMU’s employment-driven housing demand forecasts (Figure 21). Compared to the land use plan-based forecasts, the GMU employment-driven forecasts estimate a need for more single-family housing and less demand for multi-family housing. The demand for single-family housing in the GMU forecasts is a result of the growth in the number of large households and the number of higher-income households, household types that are most likely to demand this type of housing. The GMU employment-driven housing demand forecasts suggest there will be demand for 19,090 more single-family detached homes in 2040 than what the County is forecasting in its land use plan-based forecasts. In 2040, the GMU employment-driven forecasts suggests a demand for 11,380 more single- family attached homes compared to what is suggested by the land use plan-based forecasts. Therefore, based on these forecasts, the County is planning for an insufficient of single-family housing to accommodate household growth associated with growth in the labor force. Compared to the County/MWCOG land use plan-based forecasts, the GMU forecasts suggest lower demand for multi-family housing over the forecast period. In 2040, the GMU forecasts suggest a level of demand for multi-family housing that is 12,170 units lower than what the County forecasts in the land use plan-based forecasts. 88 Loudoun County Housing Needs Assessment Total Single- Family Detached Single- Family Attached Multi- Family 2015 Existing Housing (est)127,076 67,500 39,390 20,199 Net New Housing Based on Unconstrained Housing Demand Forecasts 2015-2020 15,694 8,400 4,960 2,321 2020-2025 14,840 7,750 4,720 2,370 2025-2030 14,330 7,050 4,920 2,360 2030-2035 11,900 5,900 4,060 1,940 2035-2040 9,840 4,520 3,400 1,920 Total Forecasted Housing Demand Net New Units 2015 - 2040 66,604 33,620 22,060 10,911 Figure 21. GMU Employment-Driven Housing Demand Forecasts, 2015-2040 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC 89 Loudoun County Housing Needs Assessment Figure 22. Comparison of GMU Employment-Driven Forecasts and Loudoun County/MWCOG Land Use Plan-Based Forecasts GMU Employment-Driven Forecast of Housing Units Single-Family Detached Single-Family Attached Multi-Family Total 2020 75,900 44,350 22,520 142,770 2025 83,650 49,070 24,890 157,610 2030 90,700 53,990 27,250 171,940 2035 96,600 58,050 29,190 183,840 2040 101,120 61,450 31,110 193,680 Loudoun County / MWCOG 9.0 Land Use Plan-Based Forecast of Housing Units46 Single- Family Detached Single- Family Attached Multi-Family Total 2020 71,990 46,850 25,140 143,980 2025 76,940 49,540 31,000 157,480 2030 79,410 49,840 36,520 165,770 2035 80,860 50,070 40,980 171,900 2040 82,030 50,070 43,280 175,380 Difference (Loudoun/MWCOG - GMU) Single-Family Detached Single-Family Attached Multi-Family Total 2020 (3,910) 2,490 2,620 1,210 2025 (6,700) 470 6,110 (130) 2030 (11,290) (4,150) 9,270 (6,170) 2035 (15,740) (7,980) 11,780 (11,940) 2040 (19,090) (11,380) 12,170 (18,300) Source: Metropolitan Washington Council of Governments Cooperative Forecasts Round 9.0; Loudoun County Department of Planning and Zoning; GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC 46 The single-family attached and multi-family MWCOG forecasts each include half of the forecasted multi-family stacked attached housing units, which includes stacked townhomes, one-over-twos, and two-over-twos. The Census permitting data generally includes these units as multi-family units, but respondents in the American Community Survey, which forms the basis for the assumptions in this model, will likely split their responses between single-family attached (including buildings with 2-4 units) and multi-family buildings (5+ units). 90 Loudoun County Housing Needs Assessment There are several implications of having an insufficient supply of housing in the County to meet projected demand: 1. People working in jobs in Loudoun County will have fewer options to live in the County and will have to live outside the County. If the amount or types of housing available in Loudoun County does not meet demand, it is likely that the shares of people who can both live and work in the County will decline. Assuming Loudoun County continues to attract employers and expand its jobs base, an insufficient housing supply could result in more workers commuting in from other jurisdictions, potentially making longer commutes and increasing the level of traffic in the Northern Virginia region. Over time, if commutes become too onerous, it is possible that some workers could decide to find a job closer to their home. 2. Businesses could see a lack of sufficient housing options as a negative when making decisions about locating or expanding in Loudoun County. The impact of a lack of a sufficient supply of housing of the types demanded by future workers could be felt more broadly than the workers themselves. Increasingly, quality of life issues are important to business owners and economic development professionals. The availability of housing for all employees—including single-family housing and home ownership opportunities—can be an important factor in where a business decides to open or expand. Loudoun County will compete not only with other places in the Washington DC area for economic development, but also with places around the country that are making housing availability and affordability a key component of their economic development strategies. Having an insufficient supply of housing could make Loudoun County less competitive when it comes to attracting businesses. 3. As Loudoun County residents age, they may not be able to remain in their communities. Research from AARP and other organizations have found that most older adults would prefer to age either in their homes or in their communities.47 In the years to come, the aging of the population will create new demand for housing in Loudoun County. Some retirees in Loudoun County who want to remain in the County may want to stay in their homes, but others will want to downsize from their family homes. If there is an insufficient range of housing options in the County, some of Loudoun County’s older residents may not find options to accommodate their preferences for remaining in the County. 4. Young families will continue to be attracted to Loudoun County because of its good schools and high-quality amenities but face increasing housing constraints. Young working families are forecasted to be a key component of Loudoun County’s growth over the next 25 years, largely as a result of employment growth. Without a sufficient supply of housing, and particularly home ownership opportunities, at prices affordable to entry- or mid-career working households, the County may have a harder time attracting and retaining these families. 5. Finally, new Federal regulations are bringing increased scrutiny to local jurisdictions’ land use planning and zoning, examining whether they are proactively planning for a wide range of 47 See AARP. 2014. What is Livable? Community Preferences of Older Adults. Online http://www.aarp.org/about-aarp/press- center/info-04-2014/aarp-report-outlines-communities.html 91 Loudoun County Housing Needs Assessment housing options. The Affirmatively Furthering Fair Housing (AFFH) regulations, released in summer 2015, provide new guidance and requirements to local jurisdictions to promote fair housing. As part of this rule, local jurisdictions are required to use data and metrics to demonstrate how housing policies and planning help promote the availability of housing in high opportunity neighborhoods that is affordable to lower-income households. Summary of the Analysis of Future Housing Gaps Overall, based on the employment-driven housing demand forecasts produced by GMU and based on assumptions described throughout this report, there will be a demand for 66,604 net new housing units in Loudoun County between 2015 and 2040, largely to accommodate net new workers. The demand for housing for new households coming to the region to fill a job is based on analyses of current commuting patterns and characteristics of future workers. The demand for specific types of housing is based on an analysis of the key drivers of housing unit preferences, including age, household size and composition and household income. These employment-driven housing demand forecasts are compared with the County/MWCOG forecasts that are based on analysis of current land use plans and projected capacity. Based on this analysis, the demand for single-family detached and single-family attached homes exceeds what is planned for in 2040. The demand for multi-family housing is lower than what is currently planned for. These forecasts do not include an analysis of the impacts on potential housing demand if households cannot find the housing they want in Loudoun County. It is possible that if demand for a particular housing type cannot be met, then households would shift to a different housing type (e.g. from a single-family attached home to a multi-family home). It is also possible that the physical characteristics of housing types might shift in the future, appealing to different types of households (e.g. smaller single-family detached homes, larger multi-family homes, duplexes or triplexes, etc.) See Scenarios section for additional discussion on the implications of a potential mismatch between the types of housing demanded and planned. 92 Loudoun County Housing Needs Assessment Scenarios The GMU consulting team prepared estimates of housing demand in Loudoun County over the 2015 through 2040 period using a regional employment-driven forecasting model. The GMU methodology is based on local and regional employment growth and demographic trends, and therefore differs from other housing forecasts that have been produced by the County and others. Using forecasts on local and regional employment growth and demographic change, along with key assumptions about in-commuting and housing preferences, the housing demand forecasts presented in this report are intended to reflect an estimate of the demand for housing in Loudoun County in 2040 which is not limited by the amount or type of housing supply that might be included currently in County plans. If any of the assumptions utilized in the forecasting method were changed, these forecasts of future housing demand in Loudoun County could be different: Local and Regional Employment Growth: The primary driver of these housing demand forecasts is local and regional employment growth. Based on this methodology, more than 60 percent of the forecasted housing demand is to accommodate future workers with jobs located in Loudoun County; about 86 percent of the forecasted housing demand in Loudoun County is from new workers in Loudoun County or the wider Washington DC region. The forecasts of job growth used for this analysis are derived from forecasts prepared by IHS Economics, which uses an econometric model based on past economic performance to forecast future growth. IHS Economics produces local and regional job forecasts by industry sector. The job forecasts used in this analysis also make use of recent MWCOG employment forecasts which are used to refine the IHS Economics figures. The employment forecasts reflect a shift away from Federal government employment throughout the region and into more Professional and Business Services employment, and resident- serving employment, including jobs in the Education and Health Services, Leisure and Hospitality and Local Government sectors. Based on these forecasts, over the forecast period, Loudoun County is expected to capture a greater share of regional Professional and Business Services employment, which is one reason why these forecasts suggest strong growth among high income households and strong demand for home ownership and single-family detached housing in the County. There are unknown factors that could pose challenges to future local and regional employment growth. Transportation challenges, including road congestion and service challenges on Metrorail, could lead to slower job growth in the region. Any delays in Metrorail’s extension of the Silver Line into Loudoun County could slow employment growth locally. A change in the business climate in the state of Virginia could impact Loudoun County’s attractiveness as a business location. Dramatic cuts to Federal government spending could accelerate losses in Federal government employment and slow growth in private sector employment that serves the Federal government. If these employment forecasts were changed, then the demand for housing in Loudoun County that result from this model would also change. Specifically, if regional job growth slowed considerably in the future then overall housing demand in Loudoun County would also grow more slowly. If the growth of high-wage jobs in Loudoun County was less robust, then the demand for housing in the County, particularly home ownership and single-family detached housing, would also be lower. There is also a potential feedback loop between employment growth and housing supply that is not explicitly taken into account in these housing demand forecasts. Without a sufficient response to housing 93 Loudoun County Housing Needs Assessment needs by local jurisdictions in the region—all jurisdictions in the region, and not just Loudoun County—it is possible that high housing costs in the Washington DC metro area, exacerbated by an insufficient supply of housing, could slow labor force growth and consequently slow overall economic growth. With slower job growth, housing demand could also slow. Therefore, while the employment forecasts are taken as an independent input into these housing demand forecasts, it is possible that external factors, including local decisions about housing policy and housing supply, could alter these employment assumptions and therefore alter the resulting estimates of future household growth and housing demand. In-Commuting: The housing demand forecasts depend on assumptions not just about local and regional employment growth, but also what share of new workers will be housed in Loudoun County. Specifically, these forecasts assume that in-commuting rates for different types of workers will remain constant over the forecast period. Therefore, for these forecasts, it is assumed that Loudoun County will continue to house the same share of future workers as it houses current workers, based on the worker characteristics. In addition, these forecasts assume that in the future, Loudoun County will house future workers who work in other jurisdictions in the Washington DC metro area at the same rates that it does currently. Changes to these assumptions about in-commuting rates could result in changes in the numbers and types of households that the forecasting model would predict would live in Loudoun County in the future. If Loudoun County attracted different types of households—which is what changing the in-commuting assumptions would mean—then those households would potentially demand different types of housing and the forecasts of both household characteristics and housing unit characteristics could change. For example, if Loudoun County were to house a greater share of its Retail or Leisure and Hospitality workers in the future than it does now, that would mean that the County would be attracting younger, lower-wage households than the forecasts suggest, which would imply a need for more rental and multi- family housing. If Loudoun County continues to house a high share of its Professional and Business Sector workers in the future but in-commuting rates change so that it attracts a higher share of younger workers in this sector, then, again, the forecasted household characteristics would be different and would likely imply demand for different types of housing. Making different assumptions about in-commuting rates by worker characteristic could lead to different types of households in the County in the future and these different household could prefer different types of housing than the GMU forecasts suggest. Of course, there is a back and forth relationship between these assumptions about in-commuting patterns and housing supply. The types of housing that Loudoun County might encourage in the future could also result in the County attracting different types of households with different characteristics, leading to different rates of in-commuting. For example, if the County increased its supply of multi-family housing, it would likely mean that the County’s future households would be younger, less likely to have children, and have lower incomes than these housing demand forecasts suggest. Housing Preferences: These housing demand forecasts assume that in the future, Loudoun County will attract certain types of households based on patterns of in-commuting (see above) and that the characteristics of the households will predict their housing preferences. The assumptions about housing preferences are based on patterns observed in 2012 through 2014 data, which includes a time when home ownership rates in the region were still below long-term averages and there was a modest shift to more renters and multi-family housing residents. Therefore, in these forecasts of housing demand, it is assumed that, for households with particular characteristics, the housing preferences that are exhibited today in 94 Loudoun County Housing Needs Assessment the data are assumed to continue through the forecast period. In other words, these housing demand forecasts assume that people at different ages and at different phases of the life cycle will choose certain kinds of housing at roughly the same rates in the future that people like them currently choose. Younger people will be more likely to rent, families will be more likely to be home owners. Higher income households will be more likely to prefer single-family detached homes. Lower income households will be more likely to live in multi-family housing. Despite recent discussions about changing housing preferences among some types of households, the relationships between household characteristics and housing choice (including tenure and unit type) have been remarkably stable for decades with research demonstrating those links over time both in the Washington DC region and nationally. But changes to the assumptions about housing preferences could change the results of these forecasts of housing demand. Housing preferences could be different in the future if there was a sustained shift in individuals’ preferences for certain types of homes and neighborhoods. Housing preferences among future households in Loudoun County could change if the types of housing they prefer is not available in the future. Housing choice generally involves a number of trade-offs. One key trade-off is between location (e.g. Loudoun County) and housing type (e.g. single-family detached home.) It is possible that in the future, households that want to live in Loudoun County may be willing to trade-off their preferred housing type for another type of housing in order to live in the County. That type of trade-off would change the forecasts of the types of units that would accommodate future housing demand in the County. If housing preferences were to change significantly over the forecast period, the forecasts of housing demand could also change. If, for example, preferences for multi-family housing increased among higher income groups, the demand for multi-family housing in Loudoun County could be higher than what these housing demand forecasts suggest. There are other external factors that could impact these housing demand forecasts. One key factor that merits discussion is interest rates. The demand for home ownership depends, at least somewhat, on mortgage interest rates. Interest rates currently remain at or near historically low levels. Rates will eventually rise, probably within the next six months or year, which theoretically could dampen the demand for home ownership in Loudoun County in the future by increasing the overall cost of housing. However, it is unlikely that rates will rise sufficiently high to significantly shrink the demand for home ownership in the County given that the other fundamentals will remain too strong—attractive neighborhoods, good schools, increases in high-wage jobs and high-income households, improved transportation access. 95 Loudoun County Housing Needs Assessment Appendix 96 Loudoun County Housing Needs Assessment Loudoun County Housing Needs Assessment Appendix – List of Appendix Tables Appendix Tables CURRENT CONDITIONS APPENDIX TABLES P. Population Characteristics in Loudoun County, VA Over Time P.I. Age Group (2000, 2006-2014) P.I.a. Population by Age Groups, Select Jurisdictions (2014) P.II. Race and Ethnicity (2000, 2006-2014) P.II.a. Population by Race and Ethnicity (2014) P.III. Place of Birth (2000, 2006-2014) P.IV. Educational Attainment for Population over 25 Years Old (2000, 2006-2014) P.V. Disability Status for Civilian, Noninstitutionalized Population (2000, 2006-2014) H. Household Characteristics in Loudoun County, VA H.I. Households by Age of Household Head (2000, 2006-2014) H.II. Households by Household Income (2014) H.II.a. Household Income over Time, Select Jurisdictions H.I.a (1) Household Income, Select Jurisdictions (2014) H.I.a (2) Household Income, Select Jurisdictions (2010) H.I.a (3) Household Income, Select Jurisdictions (2006) H.I.a (4) Household Income, Select Jurisdictions (2000) H.III. Household by Percent of Area Median Income (2014) H.IV. Households by Household Type (2000, 2006-2014) H.IV.a. Household Type over Time by Select Jurisdictions H.IV.a (1) Household Type, Select Jurisdictions (2014) H.IV.a (2) Household Type, Select Jurisdictions (2010) H.IV.a (3) Household Type, Select Jurisdictions (2006) H.IV.a (4) Household Type, Select Jurisdictions (2000) H.V. Households by Length of Residence in Current Home (2014) H.VI. Place of Residence Year Ago for Households that Moved into the County (2012-2014) U. Housing Characteristics in Loudoun County, VA U.I. Occupied Housing by Tenure (2000, 2006-2014) U.I.a. Occupied Housing by Tenure over Time in Select Jurisdictions U.I.a (1) Occupied Housing by Tenure, Select Jurisdictions (2014) U.I.a (2) Occupied Housing by Tenure, Select Jurisdictions (2010) U.I.a (3) Occupied Housing by Tenure, Select Jurisdictions (2006) U.I.a (4) Occupied Housing by Tenure, Select Jurisdictions (2000) U.II. Occupied Housing by Type of Building (2000, 2006-2014) U.II.a. Occupied Housing by Type of Building by Select Jurisdictions U.II.a (1) Occupied Housing by Type of Building, Select Jurisdictions (2014) U.II.a (2) Occupied Housing by Type of Building, Select Jurisdictions (2010) U.II.a (3) Occupied Housing by Type of Building, Select Jurisdictions (2006) Loudoun County Housing Needs Assessment Appendix – List of Appendix Tables U.II.a (4) Occupied Housing by Type of Building, Select Jurisdictions (2000) U.III. Occupied Housing by Year Building Built (2000 and 2014) U.IV. Occupied Housing by Number of Bedrooms (2000, 2006-2014) U.V. Occupied Housing by Number of Occupants Per Room (2000, 2006-2014) U.VI. Occupied Housing by Monthly Gross Rent Level (2014) U.VII. Occupied Housing by Home Value (2014) E. Employment and Economic Characteristics E.I. Gross regional product (2000-2014) E.II. Trend Characteristics of At-Place Employment E.II.a. Jobs by Sector (2000-2014) E.II.b. Average Wage by Sector (2000-2014) E.II.c. Summary of Employment and Wages (2000 and 2014) E.II.d. Most Common Occupation by Sector (2012-2014 average) E.II.e. Workers by Age Group (2000-2014) E.II.f. Workers by Age Group Comparison (2006 and 2014) E.II.g. Place of Residence of Workers, Select Jurisdictions (2019-2013 average) E.II.h Percent of At-Place Employment Held by Residents by Industry, Select Jurisdictions (2012- 2014 average) E.II.i. Percent of At-Place Employment Held by Non-Residents by Industry, Select Jurisdictions (2012-2014 average) E.II.j. Mode of Commute to Work, Select Jurisdictions (2014) E.III. Characteristics of Resident Workers E.III.a. Resident Workers by Sector (2012-2014 average) E.III.b. Median Wage by Sector for Resident Workers (2012-2014 average) E.III.c. Resident Workers by Age Group (2012-2014 average) E.III.d. Place of Work of Residents (2019-2013 average) E.III.e. Mode of Commute to Work for Resident Workers, Select Jurisdictions (2014) E.III.f. Employment Rate by Age Group, Select Jurisdictions (2012-2014 average) HM. Housing Market Characteristics HM.I. For-Sale Market HM.I.a. Number of Sales of Existing and New Homes (2000-2015) HM.I.b.i. Median Sales Price of Existing and New Homes (2000-2015) HM.I.b.ii. Existing and New Homes Sales by Price Group (2000-2015) H.M.I.c. Active Listings by Price (April 2015) H.M.I.d. Active Listings by Unit Type, Bedroom Size and Unit Size (April 2016) HM.II. Summary of 2015 Rental Market HM.III. Residential Building Permits by Type of Structure (1991-2015) A. Affordability Characteristics A.I. Housing Costs as a Percent of Household Income in Owner Households, Loudoun County (2000, 2006-2014) Loudoun County Housing Needs Assessment Appendix – List of Appendix Tables A.II. Housing Costs as a Percent of Household Income in Renter Households, Loudoun County (2000, 2006-2014) A.I.a. Housing Costs as a Percent of Household Income, Select Jurisdictions A.I.a. (1) Housing Costs as a Percent of Household Income, Select Jurisdictions, 2014 A.I.a. (2) Housing Costs as a Percent of Household Income, Select Jurisdictions, 2010 A.I.a. (3) Housing Costs as a Percent of Household Income, Select Jurisdictions, 2006 A.I.a. (4) Housing Costs as a Percent of Household Income, Select Jurisdictions, 2000 A.III. Detailed Analysis of Cost Burdened Households (Defined as Those Spending 30% of More of Income on Housing) A.III.a. Housing Costs as a Percent of Household Income By Household Income, Loudoun County (2012-2014) A.III.b. Housing Costs as a Percent of Household Income By Percent of Area Median Income, Loudoun County (2012-2014) A.III.c. Housing Costs as a Percent of Household Income By Percent of Select Area Median Income, Loudoun County (2012-2014) A.III.d. Housing Costs as a Percent of Household Income By Household Type, Loudoun County (2012-2014) A.III.e. Housing Costs as a Percent of Household Income By Household Size, Loudoun County (2012-2014) A.II.f. Housing Costs as a Percent of Household Income By Race and Ethnicity, Loudoun County (2012-2014) A.III.g. Housing Costs as a Percent of Household Income By Age of Household Head, Loudoun County (2012-2014) A.III.g(Alt). Housing Costs as a Percent of Household Income By Age of Household Head, Loudoun County (2012-2014) A.III.h. Housing Costs Costs as a Percent of Household Income By Disability Status of Household Members, Loudoun County (2012-2014) FORECAST APPENDIX TABLES I. Jobs by Sector, 2015-2040 II. Jobs by Occupation, 2015-2040 III. Households by Age of Householder, 2015-2040 IV. Households by Labor Force Participation Status, 2015-2040 V. Households by Disability Status, 2015-2040 VI. Households by Household Size, 2015-2040 VII. Households by Unit Type, 2015-2040 VIII. Households by Area Median Income (AMI), 2015-2040 a. Households by AMI and Age of Householder, 2015-2040 b. Households by AMI and Labor Force Participation Status, 2015-2040 c. Households by AMI and Disability Status, 2015-2040 d. Households by AMI and Household Size, 2015-2040 e. Households by AMI and Unit Type, 2015-2040 IX. Households by Share of Household Income Spent on Housing and Tenure, 2015-2040 Loudoun County Housing Needs Assessment Appendix – List of Appendix Tables a. Housing Cost Burden by AMI, 2015-2040 b. Housing Cost Burden by Age of Householder, 2015-2040 c. Housing Cost Burden by Labor Force Participation Status, 2015-2040 d. Housing Cost Burden by Disability Status, 2015-2040 e. Housing Cost Burden by Household Size, 2015-2040 X. Housing Gap by Unit Type, 2030-2040 a. Housing Gap by AMI, 2030-2040 b. Housing Gap by Age of Householder, 2030-2040 FORECAST METHODOLOGY A. Population and Cohort Change Ratios, Loudoun County B. Ratio of Females Aged 20-44 to Children <10 years old, i.e. Child Generation Rates, Loudoun County C. Distribution by Age and Sex in Loudoun County and the Nation, 1990-2015 and Forecasted D. Headship Rate, Loudoun County E. Percent of Households without a Payroll Job, Loudoun County F. Households Without a Payroll Job Headed by a Female Aged 75-79 Years Old by Unit Type and AMI Group, Loudoun County G. Total Jobs, Loudoun County H. Net New Jobs and Retirement Positions, Loudoun County, 2015-2040 I. Workers by Age and Movers, Loudoun County J. Current and Future Age Distribution of Workers, Loudoun County K. Household Types L. Distribution of Workers by Household Type and Age Group, Professional & Business Service Jobs, Loudoun County M. Distribution of Workers by Household Type and AMI Group, Professional & Business Service Jobs, Loudoun County N. Average Workers per Household by AMI Group, Loudoun County O. Unit Type by Select Household Type, 200%+ of AMI, Loudoun County P. Share of Households with a Main Worker in Fairfax County, Fairfax City or Falls Church City living in Loudoun, earning 200%+ of AMI, by Housing Unit Type Q. FY 2015 AMI Limits, Washington DC Metro Area R. Washington DC Metropolitan Statistical Area S. Greater Washington DC Region Loudoun County Housing Needs Assessment Appendix – List of Appendix Tables FORECAST APPENDIX TABLES XI. Jobs by Sector, 2015-2040 XII. Jobs by Occupation, 2015-2040 XIII. Households by Age of Householder, 2015-2040 XIV. Households by Labor Force Participation Status, 2015-2040 XV. Households by Disability Status, 2015-2040 XVI. Households by Household Size, 2015-2040 XVII. Households by Unit Type, 2015-2040 XVIII. Households by Area Median Income (AMI), 2015-2040 a. Households by AMI and Age of Householder, 2015-2040 b. Households by AMI and Labor Force Participation Status, 2015-2040 c. Households by AMI and Disability Status, 2015-2040 d. Households by AMI and Household Size, 2015-2040 e. Households by AMI and Unit Type, 2015-2040 XIX. Households by Share of Household Income Spent on Housing and Tenure, 2015-2040 a. Housing Cost Burden by AMI, 2015-2040 b. Housing Cost Burden by Age of Householder, 2015-2040 c. Housing Cost Burden by Labor Force Participation Status, 2015-2040 d. Housing Cost Burden by Disability Status, 2015-2040 e. Housing Cost Burden by Household Size, 2015-2040 XX. Housing Gap by Unit Type, 2030-2040 Loudoun County Housing Needs Assessment Appendix PI P.I. Population by Age Group Loudoun County, Virginia Population 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 Under 18 50,436 79,148 87,763 89,328 90,685 95,520 96,439 97,464 100,822 103,214 18-24 9,596 22,192 21,954 20,696 21,026 18,606 19,761 21,535 23,123 24,394 25-34 29,925 47,259 45,718 49,083 42,570 42,682 40,943 42,686 44,251 45,565 35-44 36,198 53,741 54,800 54,203 59,906 59,192 63,155 60,312 60,176 62,257 45-54 22,531 37,391 39,390 42,387 46,212 48,579 48,749 52,006 53,516 55,538 55-64 11,569 20,984 22,737 24,594 24,828 27,328 28,636 29,722 31,892 32,793 65-74 5,405 9,654 10,835 11,715 12,053 11,787 13,318 14,217 15,278 17,312 75-84 3,053 5,081 4,366 4,629 5,060 6,589 6,490 6,911 7,164 7,594 85+ 886 1,093 1,835 1,785 2,624 2,028 2,045 2,752 2,511 2,907 Total Population 169,599 276,542 289,397 298,420 304,964 312,311 319,537 327,605 338,733 351,573 Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 1), and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Share Of Total 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 Under 18 29.7%28.6%30.3%29.9%29.7%30.6%30.2%29.8%29.8%29.4% 18-24 5.7%8.0%7.6%6.9%6.9%6.0%6.2%6.6%6.8%6.9% 25-34 17.6%17.1%15.8%16.4%14.0%13.7%12.8%13.0%13.1%13.0% 35-44 21.3%19.4%18.9%18.2%19.6%19.0%19.8%18.4%17.8%17.7% 45-54 13.3%13.5%13.6%14.2%15.2%15.6%15.3%15.9%15.8%15.8% 55-64 6.8%7.6%7.9%8.2%8.1%8.8%9.0%9.1%9.4%9.3% 65-74 3.2%3.5%3.7%3.9%4.0%3.8%4.2%4.3%4.5%4.9% 75-84 1.8%1.8%1.5%1.6%1.7%2.1%2.0%2.1%2.1%2.2% 85+0.5%0.4%0.6%0.6%0.9%0.6%0.6%0.8%0.7%0.8% Total 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 1) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Age Age Loudoun County Housing Needs Assessment Appendix PIa P.I.a. Population by Age Group, 2014 Select Jurisdictions Population Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area Under 18 103,214 38,936 271,244 125,422 242,345 58,275 1,404,798 18-24 24,394 17,648 94,690 39,439 80,956 20,559 543,892 25-34 45,565 60,916 161,535 64,697 138,933 30,420 935,097 35-44 62,257 38,550 166,257 68,779 143,650 32,179 875,479 45-54 55,538 27,491 171,501 65,398 151,163 39,805 877,013 55-64 32,793 23,147 141,889 45,477 132,434 30,613 708,648 65-74 17,312 12,158 80,455 24,068 78,833 18,429 413,933 75-84 7,594 5,142 34,010 9,295 38,069 9,230 186,657 85+ 2,907 2,920 15,957 3,519 24,064 4,165 87,227 Total Population 351,573 226,908 1,137,538 446,094 1,030,447 243,675 6,032,744 Source: 2014 American Community Survey, 1-year file, and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Share of Total Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area Under 18 29.4%17.2%23.8%28.1%23.5%23.9%23.3% 18-24 6.9%7.8%8.3%8.8%7.9%8.4%9.0% 25-34 13.0%26.8%14.2%14.5%13.5%12.5%15.5% 35-44 17.7%17.0%14.6%15.4%13.9%13.2%14.5% 45-54 15.8%12.1%15.1%14.7%14.7%16.3%14.5% 55-64 9.3%10.2%12.5%10.2%12.9%12.6%11.7% 65-74 4.9%5.4%7.1%5.4%7.7%7.6%6.9% 75-84 2.2%2.3%3.0%2.1%3.7%3.8%3.1% 85+0.8%1.3%1.4%0.8%2.3%1.7%1.4% Total 100.0%100.0%100.0%100.0%100.0%100.0%100.0% Source: 2014 American Community Survey, 1-year file, and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Age Age Loudoun County Housing Needs Assessment Appendix PII P.II. Population by Race and Hispanic Origin Loudoun County, Virginia Population 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 Non-Hispanic 159,510 249,583 259,784 267,293 272,420 273,575 279,432 285,752 294,353 304,294 White 134,972 187,212 194,326 198,873 200,604 195,233 196,413 198,414 202,355 205,198 Black/African-American 11,517 20,642 22,248 22,785 23,144 22,219 26,016 23,293 23,957 24,278 Asian or Pacific Islander 9,118 36,049 35,888 37,206 39,185 42,629 47,418 52,565 51,669 58,586 Multi-racial/Other 3,903 5,681 7,322 8,429 9,487 13,494 9,585 11,480 16,372 16,230 Hispanic 10,089 26,959 29,614 31,127 32,544 38,736 40,104 41,853 44,380 47,280 Total Population 169,599 276,542 289,397 298,420 304,964 312,311 319,537 327,605 338,733 351,573 Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 1) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Share of Total 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 Non-Hispanic 94.1%90.3%89.8%89.6%89.3%87.6%87.4%87.2%86.9%86.6% White 79.6%67.7%67.1%66.6%65.8%62.5%61.5%60.6%59.7%58.4% Black/African-American 6.8%7.5%7.7%7.6%7.6%7.1%8.1%7.1%7.1%6.9% Asian or Pacific Islander 5.4%13.0%12.4%12.5%12.8%13.6%14.8%16.0%15.3%16.7% Multi-racial/Other 2.3%2.1%2.5%2.8%3.1%4.3%3.0%3.5%4.8%4.6% Hispanic 5.9%9.7%10.2%10.4%10.7%12.4%12.6%12.8%13.1%13.4% Total 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 1) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Race and Hispanic Origin Race and Hispanic Origin Loudoun County Housing Needs Assessment Appendix PIIa P.II.a. Population by Race and Hispanic Origin, 2014 Population Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area Non-Hispanic 304,294 191,260 951,136 347,964 837,570 223,165 5,122,578 White 205,198 141,865 589,889 202,717 471,513 183,917 2,821,098 Black/African-American 24,278 18,310 104,900 86,175 178,815 21,523 1,491,222 Asian or Pacific Islander 58,586 23,797 214,050 34,216 151,989 11,107 597,091 Multi-racial/Other 16,230 7,288 42,297 24,856 35,253 6,618 213,167 Hispanic 47,280 35,648 186,402 98,130 192,877 20,510 910,166 Total Population 351,573 226,908 1,137,538 446,094 1,030,447 243,675 6,032,744 Source: 2014 American Community Survey, 1-year file, and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Share of Total Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area Non-Hispanic 86.6%84.3%83.6%78.0%81.3%91.6%84.9% White 58.4%62.5%51.9%45.4%45.8%75.5%46.8% Black/African-American 6.9%8.1%9.2%19.3%17.4%8.8%24.7% Asian or Pacific Islander 16.7%10.5%18.8%7.7%14.7%4.6%9.9% Multi-racial/Other 4.6%3.2%3.7%5.6%3.4%2.7%3.5% Hispanic 13.4%15.7%16.4%22.0%18.7%8.4%15.1% Total 100.0%100.0%100.0%100.0%100.0%100.0%100.0% Source: 2014 American Community Survey, 1-year file, and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Age Age Loudoun County Housing Needs Assessment Appendix PIII P.III. Population by Place of Birth Loudoun County, Virginia Population 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 U.S.* 150,483 218,544 231,950 241,551 240,099 243,237 245,366 251,804 263,634 267,134 Outside the U.S. 19,116 57,998 57,447 56,869 64,865 69,074 74,171 75,801 75,099 84,440 Total Population 169,599 276,542 289,397 298,420 304,964 312,311 319,537 327,605 338,733 351,573 *Includes Puerto Rico, U.S. Islands and those born abroad to American parent(s) Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 3) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Share of Total 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 U.S.*88.7%79.0%80.1%80.9%78.7%77.9%76.8%76.9%77.8%76.0% Outside the U.S.11.3%21.0%19.9%19.1%21.3%22.1%23.2%23.1%22.2%24.0% Total Population 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% *Includes Puerto Rico, U.S. Islands and those born abroad to American parent(s) Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 3) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Place of Birth Place of Birth Loudoun County Housing Needs Assessment Appendix PIV P.IV. Educational Attainment Population Age 25+ Loudoun County, Virginia Population 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 Less than high school 8,182 12,177 10,966 13,187 9,894 13,069 12,629 12,563 14,128 16,594 High school diploma/GED 19,358 29,899 28,009 23,572 27,405 27,498 31,061 29,852 28,520 29,007 Associate's degree or some college 30,318 40,178 39,416 41,432 41,962 41,849 45,773 46,270 50,346 46,898 Bachelor's degree 35,010 60,614 63,375 69,207 69,194 72,055 68,529 69,072 77,503 75,920 Graduate or professional degree 16,699 32,333 37,915 40,997 44,798 43,715 45,344 50,850 44,291 55,547 Total Population Age 25+109,567 175,202 179,681 188,396 193,252 198,186 203,337 208,606 214,788 223,966 Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 3) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Share of Total 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 Less than high school 7.5%7.0%6.1%7.0%5.1%6.6%6.2%6.0%6.6%7.4% High school diploma/GED 17.7%17.1%15.6%12.5%14.2%13.9%15.3%14.3%13.3%13.0% Associate's degree or some college 27.7%22.9%21.9%22.0%21.7%21.1%22.5%22.2%23.4%20.9% Bachelor's degree 32.0%34.6%35.3%36.7%35.8%36.4%33.7%33.1%36.1%33.9% Graduate or professional degree 15.2%18.5%21.1%21.8%23.2%22.1%22.3%24.4%20.6%24.8% Total Population Age 25+100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 3) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Educational Attainment Educational Attainment Loudoun County Housing Needs Assessment Appendix PV P.V. Population by Disability Status, 2012-2014 Average Loudoun County, Virginia No.Pct.No.Pct.No.Pct.No.Pct. With Disability (people with multiple disabilities counted more than once) Hearing Difficulty 46 0.2%207 0.4% 2,038 0.9% 2,926 11.8% Vision Difficulty 93 0.4%414 0.7% 2,106 0.9% 1,216 4.9% Cognitive Difficulty N/A N/A 810 1.4% 3,496 1.5% 1,756 7.1% Ambulatory Difficulty N/A N/A 106 0.2% 4,030 1.8% 4,380 17.6% With a Self-Care Difficulty N/A N/A 352 0.6% 1,286 0.6% 1,592 6.4% Independent Living Difficulty N/A N/A N/A N/A 3,266 1.4%3,648 14.7% Total Persons With Disabilities 93 0.4%1,167 2.0% 9,930 4.3% 7,370 29.7% Total Persons Without Disabilities 26,416 99.6% 57,417 98.0% 219,445 95.7% 17,466 70.3% Total Population 26,509 100.0%58,584 100.0%229,375 100.0%24,835 100.0% Note: Cognitive, ambulatory, self-care and independent living difficulties are not determine for all children under 15 years old. Source: U.S. Census Bureau, 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Disability < 5 Years Old 5 - 14 Years Old 15 - 64 Years Old 65+ Years Old Loudoun County Housing Needs Assessment Appendix HI H.I. Households by Age of Head of Household Loudoun County, Virginia Households 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 Under 25 1,709 1,366 1,513 2,447 1,605 2,415 1,381 1,431 1,347 2,639 25-34 13,531 19,807 19,267 22,177 18,688 17,321 16,331 16,267 16,973 18,814 35-44 19,229 30,161 31,587 27,840 31,331 31,404 35,025 32,156 31,256 32,271 45-54 13,011 21,842 23,131 24,095 25,983 27,537 25,773 28,947 30,914 31,329 55-64 6,685 12,054 13,703 14,238 14,749 14,965 16,255 18,011 17,879 18,307 65+ 5,735 8,128 8,205 9,443 9,937 10,942 12,088 12,601 14,646 13,748 Total Households 59,900 93,359 97,405 100,239 102,293 104,583 106,851 109,414 113,015 117,108 Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 1) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Share of Total 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 Under 25 2.9%1.5%1.6%2.4%1.6%2.3%1.3%1.3%1.2%2.3% 25-34 22.6%21.2%19.8%22.1%18.3%16.6%15.3%14.9%15.0%16.1% 35-44 32.1%32.3%32.4%27.8%30.6%30.0%32.8%29.4%27.7%27.6% 45-54 21.7%23.4%23.7%24.0%25.4%26.3%24.1%26.5%27.4%26.8% 55-64 11.2%12.9%14.1%14.2%14.4%14.3%15.2%16.5%15.8%15.6% 65+9.6%8.7%8.4%9.4%9.7%10.5%11.3%11.5%13.0%11.7% Total 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 1) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Age Age Loudoun County Housing Needs Assessment Appendix HII H.II. Household Income, 2014 (in 2015 $s) Loudoun County, Virginia <$15,000 3,778 3.2% $15,000-29,999 4,524 3.9% $30,000-59,999 14,504 12.4% $60,000-79,999 9,276 7.9% $80,000-99,999 11,181 9.5% $100,000-119,999 12,314 10.5% $120,000-149,999 14,504 12.4% $150,000-199,999 19,223 16.4% $200,000-249,999 11,983 10.2% $150,000+15,822 13.5% Total Households 117,108 100.0% Source: 2014 American Community Survey, 1-year public use microdata sample (PUMS) files and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Household Income No.Pct. Loudoun County Housing Needs Assessment Appendix HIIa H.II.a. Households by Household Income Select Jurisdictions H.II.a (1) Household Income, 2014 (in 2014 $s) Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area <$15,000 3,548 5,895 17,970 5,405 20,444 5,325 143,741 $15,000-29,999 5,181 6,519 20,189 7,234 24,031 7,810 161,025 $30,000-59,999 15,434 12,914 51,524 28,649 62,410 17,599 385,964 $60,000 to $74,999 7,364 7,725 31,705 14,413 33,224 8,683 198,268 $75,000 to $99,999 12,173 11,810 52,249 19,159 45,668 13,464 282,127 $100,000 to $124,999 16,505 13,677 46,210 16,215 42,256 11,685 250,360 $125,000 to $149,999 12,374 10,066 37,461 12,564 28,474 8,487 182,296 $150,000 to $199,999 19,066 13,396 52,676 17,086 44,171 8,191 239,968 $200,000+25,464 18,730 81,495 16,709 64,176 7,840 310,398 Total Households 117,108 100,732 391,479 137,434 364,854 89,084 2,154,147 Source: 2014 American Community Survey, 1-year file, and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Household Income Loudoun County Housing Needs Assessment Appendix HIIa H.II.a. Households by Household Income Select Jurisdictions H.II.a (2) Household Income, 2010 (in 2010 $s) Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area* <$15,000 2,250 4,653 16,750 4,910 24,383 4,655 138,408 $15,000-29,999 4,073 6,538 22,613 8,250 28,499 6,571 163,735 $30,000-59,999 12,837 15,348 59,711 24,558 65,981 16,779 402,114 $60,000 to $74,999 8,527 8,570 35,863 11,393 33,073 9,847 199,153 $75,000 to $99,999 12,269 13,823 49,896 20,252 44,044 12,755 273,215 $100,000 to $124,999 16,746 12,228 45,925 16,860 41,130 11,570 237,783 $125,000 to $149,999 12,156 7,976 35,400 15,283 28,595 7,510 168,509 $150,000 to $199,999 16,899 9,379 54,562 15,757 40,352 8,364 217,899 $200,000+18,826 14,467 68,695 13,095 53,419 5,913 241,338 Total Households 104,583 92,982 389,415 130,358 359,476 83,964 2,042,154 *Excludes Culpeper, VA and Rappahannock, VA Source: 2010 American Community Survey, 1-year file, and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Household Income Loudoun County Housing Needs Assessment Appendix HIIa H.II.a. Households by Household Income Select Jurisdictions H.II.a (3) Household Income, 2006 (in 2006 $s) Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area* <$15,000 3,885 5,424 16,358 4,543 16,813 3,614 134,161 $15,000-29,999 4,485 6,698 20,482 6,799 25,202 7,644 162,029 $30,000-59,999 14,462 15,400 61,875 30,010 72,163 18,423 424,522 $60,000 to $74,999 8,679 7,580 32,539 14,875 32,245 11,031 202,820 $75,000 to $99,999 15,544 14,469 49,644 20,089 47,004 14,550 282,278 $100,000 to $124,999 11,602 9,820 46,759 15,308 40,916 8,508 225,705 $125,000 to $149,999 10,789 6,779 33,935 10,897 29,279 6,988 151,410 $150,000 to $199,999 13,139 7,676 46,691 11,133 33,913 5,708 176,927 $200,000+10,774 11,491 55,045 8,681 43,903 3,517 182,664 Total Households 93,359 85,337 363,328 122,335 341,438 79,983 1,942,516 *Excludes Culpeper, VA and Rappahannock, VA Source: 2006 American Community Survey, 1-year file, and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Household Income Loudoun County Housing Needs Assessment Appendix HIIa H.II.a. Households by Household Income Select Jurisdictions H.II.a (4) Household Income, 1999 (in 1999 $s) Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area* <$15,000 1,962 6,791 15,121 4,214 20,086 5,014 149,821 $15,000-29,999 4,057 9,033 24,539 9,058 29,317 8,509 201,019 $30,000-59,999 12,759 24,652 77,919 28,183 82,375 21,307 497,348 $60,000 to $74,999 8,194 10,592 42,382 13,676 38,242 10,135 220,274 $75,000 to $99,999 11,774 12,292 59,372 17,224 49,573 11,846 272,688 $100,000 to $124,999 8,483 7,948 44,320 10,792 34,098 6,453 174,476 $125,000 to $149,999 5,114 5,379 29,439 5,316 22,467 3,042 102,465 $150,000 to $199,999 4,412 5,062 31,718 4,125 24,199 2,253 98,004 $200,000+3,166 4,725 26,469 2,074 24,583 1,556 85,754 Total Households 59,921 86,474 351,279 94,662 324,940 70,115 1,801,849 *Excludes Culpeper, VA and Rappahannock, VA Source: 2000 Decennial Census (Summary File 3) Household Income Loudoun County Housing Needs Assessment Appendix HIII H.III. Households by Area Median Income Group, 2014 Loudoun County, Virginia <30% AMI 7,269 6.2% 30-49% AMI 7,895 6.7% 50-59% AMI 5,926 5.1% 60-79% AMI 9,850 8.4% 80-99% AMI 10,608 9.1% 100-119% AMI 12,586 10.7% 120-139% AMI 10,044 8.6% 140-159% AMI 10,104 8.6% 160-179% AMI 7,504 6.4% 180-199% AMI 7,691 6.6% 200% AMI+27,631 23.6% Total Households 117,108 100.0% Source: 2014 American Community Survey, 1-year public use microdata sample (PUMS) files and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Household Income No.Pct. Loudoun County Housing Needs Assessment Appendix HIV H.IV. Households by Household Type Loudoun County, Virginia Households 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 Married Couple, w/ Children* 21,910 32,900 36,016 37,326 38,753 42,401 44,336 44,695 45,972 47,795 Married Couple, w/o Children* 16,591 22,405 22,670 25,976 26,966 25,840 25,563 26,827 26,678 28,969 Single Parent 3,902 6,174 5,716 7,209 6,974 10,787 8,212 10,068 8,833 9,382 Other Family, w/o Children* 2,617 2,734 2,679 3,788 4,039 4,890 3,070 4,914 5,290 4,813 Living Alone (65+) 2,199 3,913 3,244 3,549 4,034 4,204 4,464 4,393 6,090 5,462 Living Alone (Under 65) 8,851 22,015 24,129 18,033 15,205 11,105 16,090 12,926 14,324 15,438 Other Non-Family, Not Living Alone 3,830 3,218 2,952 4,357 6,321 5,354 5,116 5,591 5,828 5,249 Total Households 59,900 93,359 97,405 100,239 102,293 104,583 106,851 109,414 113,015 117,108 *Own children Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 1) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Share of Total 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 Married Couple, w/ Children*36.6%35.2%37.0%37.2%37.9%40.5%41.5%40.8%40.7%40.8% Married Couple, w/o Children*27.7%24.0%23.3%25.9%26.4%24.7%23.9%24.5%23.6%24.7% Single Parent 6.5%6.6%5.9%7.2%6.8%10.3%7.7%9.2%7.8%8.0% Other Family, w/o Children*4.4%2.9%2.8%3.8%3.9%4.7%2.9%4.5%4.7%4.1% Living Alone (65+)3.7%4.2%3.3%3.5%3.9%4.0%4.2%4.0%5.4%4.7% Living Alone (Under 65)14.8%23.6%24.8%18.0%14.9%10.6%15.1%11.8%12.7%13.2% Other Non-Family, Not Living Alone 6.4%3.4%3.0%4.3%6.2%5.1%4.8%5.1%5.2%4.5% Total Households 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% *Own children Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 1) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Household Type Household Type Loudoun County Housing Needs Assessment Appendix HIVa H.IV.a. Households by Household Type Select Jurisdictions H.IV.a (1) Household Type, 2014 Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area Married Couple, w/ Children*47,795 16,224 113,393 46,766 94,432 23,539 509,455 Married Couple, w/o Children*28,969 19,375 110,742 33,649 98,702 27,351 530,547 Single Parent 9,382 5,087 29,467 16,228 35,446 7,011 222,327 Other Family, w/o Children*4,813 3,627 22,219 8,289 22,740 5,901 144,352 Living Alone (65+)5,462 7,022 28,691 6,616 33,935 6,816 166,386 Living Alone (Under 65)15,438 33,330 61,075 19,384 57,692 12,810 424,238 Other Non-Family, Not Living Alone 5,249 16,067 25,892 6,502 21,907 5,656 156,842 Total Households 117,108 100,732 391,479 137,434 364,854 89,084 2,154,147 *Own children Source: 2014 American Community Survey, 1-year file, and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Household Type Loudoun County Housing Needs Assessment Appendix HIVa H.IV.a. Households by Household Type Select Jurisdictions H.IV.a (2) Household Type, 2010 Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area** Married Couple, w/ Children*42,401 12,051 108,318 44,027 92,340 25,053 481,424 Married Couple, w/o Children*25,840 20,264 111,623 33,571 96,509 26,779 500,432 Single Parent 10,787 5,614 31,209 14,212 34,079 6,266 216,396 Other Family, w/o Children*4,890 4,754 21,866 8,280 22,600 4,090 135,765 Living Alone (65+)4,204 6,109 22,770 5,392 31,831 5,937 144,614 Living Alone (Under 65)11,105 31,045 69,051 18,382 60,206 12,468 418,626 Other Non-Family, Not Living Alone 5,354 13,145 24,578 6,494 21,911 3,371 144,897 Total Households 104,583 92,982 389,415 130,358 359,476 83,964 2,042,154 *Own children **Excludes Culpeper, VA and Rappahannock, VA Source: 2010 American Community Survey, 1-year file, and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Household Type Loudoun County Housing Needs Assessment Appendix HIVa H.IV.a. Households by Household Type Select Jurisdictions H.IV.a (3) Household Type, 2006 Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area** Married Couple, w/ Children*32,900 13,790 99,178 41,814 96,232 23,999 467,052 Married Couple, w/o Children*22,405 16,582 100,018 29,451 91,790 22,783 460,065 Single Parent 6,174 5,265 27,370 16,387 30,239 7,320 207,831 Other Family, w/o Children*2,734 3,485 22,215 6,162 21,108 2,972 122,337 Living Alone (65+)3,913 6,106 21,321 4,364 27,031 5,399 131,586 Living Alone (Under 65)22,015 32,950 77,629 17,350 56,926 11,291 437,248 Other Non-Family, Not Living Alone 3,218 7,159 15,597 6,807 18,112 6,219 116,397 Total Households 93,359 85,337 363,328 122,335 341,438 79,983 1,942,516 *Own children **Excludes Culpeper, VA and Rappahannock, VA Source: 2006 American Community Survey, 1-year file, and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Household Type Loudoun County Housing Needs Assessment Appendix HIVa H.IV.a. Households by Household Type Select Jurisdictions H.IV.a (4) Household Type, 2000 Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area** Married Couple, w/ Children*21,910 12,800 105,709 32,310 89,960 21,613 439,496 Married Couple, w/o Children*16,591 17,722 102,684 25,647 89,232 21,202 450,768 Single Parent 3,902 3,825 21,522 9,455 23,705 5,402 159,153 Other Family, w/o Children*2,617 4,975 20,366 5,325 21,328 3,732 137,100 Living Alone (65+)2,199 6,345 16,672 2,829 25,022 4,704 114,024 Living Alone (Under 65)8,851 28,871 58,486 13,335 54,277 9,368 363,314 Other Non-Family, Not Living Alone 3,830 11,814 25,275 5,669 21,041 4,039 136,408 Total Households 59,900 86,352 350,714 94,570 324,565 70,060 1,800,263 *Own children **Excludes Culpeper, VA and Rappahannock, VA Source: 2000 Decennial Census, Summary File 1 Household Type Loudoun County Housing Needs Assessment Appendix HV HV. Length of Residence in Current Home, 2014 Loudoun County, Virginia <12 months 19,351 16.5% 13-23 months 9,262 7.9% 2-4 years 25,686 21.9% 5-9 years 25,458 21.7% 10-19 years 27,492 23.5% 20+ years 9,859 8.4% Total Households 117,108 100.0% Source: 2014 American Community Survey, 1-year public use microdata sample (PUMS) files and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Time in Current Home No.Pct. Loudoun County Housing Needs Assessment Appendix HVI HVI. Place of Residence Year Ago for Households that Moved into the County, 2012-2014 Average Loudoun County, Virginia Within Washington DC Metropolitan Area*4,184 54.7% DC 111 1.4% Suburban Maryland 211 2.8% Northern Virginia 3,862 50.5% Fairfax 2,938 38.4% Elsewhere in VA 334 4.4% Elsewhere in U.S.2,703 35.3% International 433 5.7% Total Households 7,655 100.0% *Approximate and based on public use microdata area geographies Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Place of Residence No.Pct. Loudoun County Housing Needs Assessment Appendix UI U.I. Housing Units by Tenure Occupied Units Loudoun County, Virginia Units 2000*2006 2007 2008 2009 2010 2011 2012 2013 2014 Owned with mortgage 37,765 72,123 75,040 71,585 74,110 73,978 73,503 76,826 73,880 76,534 Owned free and clear 3,070 7,030 5,666 6,331 6,695 7,905 8,597 9,704 10,791 12,273 Rented 11,134 13,477 16,050 21,115 20,514 21,772 23,984 21,812 27,012 27,521 Occupied without payment 445 729 649 1,209 974 928 768 1,071 1,332 779 Total Occupied Housing Units 52,414 93,359 97,405 100,239 102,293 104,583 106,851 109,414 113,015 117,108 *Only includes specified units Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 3) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Share of Total 2000*2006 2007 2008 2009 2010 2011 2012 2013 2014 Owned with mortgage 72.1%77.3%77.0%71.4%72.4%70.7%68.8%70.2%65.4%65.4% Owned free and clear 5.9%7.5%5.8%6.3%6.5%7.6%8.0%8.9%9.5%10.5% Rented 21.2%14.4%16.5%21.1%20.1%20.8%22.4%19.9%23.9%23.5% Occupied without payment 0.8%0.8%0.7%1.2%1.0%0.9%0.7%1.0%1.2%0.7% Total 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% *Only includes specified units Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 3) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Tenure Tenure Loudoun County Housing Needs Assessment Appendix UIa U.I.a. Housing Units by Tenure Occupied Units Select Jurisdictions U.I.a (1) Tenure, 2014 Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area Owned with mortgage 76,534 33,405 207,871 84,219 178,173 51,546 1,071,005 Owned free and clear 12,273 11,161 55,659 15,487 60,630 14,413 279,607 Rented 27,521 54,909 125,049 37,022 122,352 21,922 779,709 Occupied without payment 779 1,257 2,900 706 3,699 1,203 23,826 Total Occupied Units 117,108 100,732 391,479 137,434 364,854 89,084 2,154,147 Source: 2014 American Community Survey, 1-year file, and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series U.I.a (2) Tenure, 2010 Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area* Owned with mortgage 72,843 33,438 225,962 82,947 188,428 51,770 1,078,260 Owned free and clear 7,784 7,872 46,262 12,404 49,594 11,622 233,514 Rented 21,438 50,727 114,961 33,938 117,459 19,517 708,077 Occupied without payment 914 945 2,230 1,069 3,995 1,055 22,303 Total Occupied Units 102,979 92,982 389,415 130,358 359,476 83,964 2,042,154 *Excludes Culpeper, VA and Rappahannock, VA Source: 2010 American Community Survey, 1-year file, and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Tenure Tenure Loudoun County Housing Needs Assessment Appendix UIa U.I.a. Housing Units by Tenure Occupied Units Select Jurisdictions U.I.a (3) Tenure, 2006 Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area* Owned with mortgage 72,123 35,935 233,546 82,129 192,870 51,399 1,100,671 Owned free and clear 7,030 9,788 39,549 8,202 48,238 9,249 217,875 Rented 13,477 37,868 86,702 31,069 95,169 18,082 599,654 Occupied without payment 729 1,746 3,531 935 5,161 1,253 24,316 Total Occupied Units 93,359 85,337 363,328 122,335 341,438 79,983 1,942,516 *Excludes Culpeper, VA and Rappahannock, VA Source: 2006 American Community Survey, 1-year file, and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series U.I.a (4) Tenure, 2000 Only includes specified units Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area* Owned with mortgage 37,765 21,853 190,797 57,201 158,344 37,841 831,664 Owned free and clear 3,070 6,220 27,982 4,655 33,207 8,526 154,513 Rented 11,134 48,193 98,438 25,193 98,650 15,360 627,982 Occupied without payment 445 735 3,209 1,420 2,571 878 20,431 Total Occupied Units 52,414 77,001 320,426 88,469 292,772 62,605 1,634,590 *Excludes Culpeper, VA and Rappahannock, VA Source: 2000 Decennial Census, Summary File 3 Tenure Tenure Loudoun County Housing Needs Assessment Appendix UII U.II. Housing Units by Building Type Occupied Units Loudoun County, Virginia Units 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 Single-family detached 34,609 54,571 54,954 54,632 56,805 59,859 57,716 60,332 58,737 63,569 Single-family attached/townhouse 16,577 26,003 29,134 29,545 29,375 27,607 30,407 32,746 34,739 32,981 2-4 units 696 583 156 1,038 986 1,522 1,495 1,314 1,885 1,481 5-19 units 5,782 8,089 8,568 10,343 10,101 9,694 10,572 9,447 12,136 12,840 20-49 units 913 2,036 2,425 2,275 1,803 2,132 3,630 1,446 2,003 1,682 50+ units 1,066 1,954 1,820 1,919 3,039 3,015 2,828 3,478 3,114 3,896 Mobile home/trailer/other 257 125 349 488 183 754 204 650 401 658 Total Occupied Housing Units 59,900 93,359 97,405 100,239 102,293 104,583 106,851 109,414 113,015 117,108 Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 3) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Share of Total 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 Single-family detached 57.8%58.5%56.4%54.5%55.5%57.2%54.0%55.1%52.0%54.3% Single-family attached/townhouse 27.7%27.9%29.9%29.5%28.7%26.4%28.5%29.9%30.7%28.2% 2-4 units 1.2%0.6%0.2%1.0%1.0%1.5%1.4%1.2%1.7%1.3% 5-19 units 9.7%8.7%8.8%10.3%9.9%9.3%9.9%8.6%10.7%11.0% 20-49 units 1.5%2.2%2.5%2.3%1.8%2.0%3.4%1.3%1.8%1.4% 50+ units 1.8%2.1%1.9%1.9%3.0%2.9%2.6%3.2%2.8%3.3% Mobile home/trailer/other 0.4%0.1%0.4%0.5%0.2%0.7%0.2%0.6%0.4%0.6% Total 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 3) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Building Type Building Type Loudoun County Housing Needs Assessment Appendix UIIa U.II.a. Housing Units by Building Type Occupied Units Select Jursidictions U.II.a (1) Building Type, 2014 Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area Single-family detached 64,024 27,075 186,522 77,013 177,756 56,642 1,014,555 Single-family attached/townhouse 33,217 12,570 93,154 35,823 66,843 17,861 430,294 2-4 units 1,492 6,103 6,113 1,638 8,207 2,516 66,196 5-19 units 12,932 13,624 59,349 15,812 54,057 7,491 315,895 20-49 units 1,694 4,263 9,517 1,977 10,795 1,949 66,011 50+ units 3,924 36,930 35,010 2,538 46,534 2,193 246,980 Mobile home/trailer/other 663 167 1,814 2,633 662 432 14,216 Total Occupied Units 117,946 100,732 391,479 137,434 364,854 89,084 2,154,147 Source: 2014 American Community Survey, 1-year file, and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series U.II.a (2) Building Type, 2010 Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area* Single-family detached 73,978 26,558 195,020 75,624 174,950 53,596 981,646 Single-family attached/townhouse 7,905 9,928 88,385 34,051 66,384 16,936 400,546 2-4 units 21,772 5,703 5,511 2,024 5,767 1,990 62,599 5-19 units 928 11,735 56,445 13,966 53,594 7,512 285,562 20-49 units 104,583 4,894 11,379 2,171 9,432 1,183 65,215 50+ units 2,969 33,766 30,821 1,434 49,075 2,075 233,161 Mobile home/trailer/other 742 398 1,854 1,088 274 672 13,425 Total Occupied Units 102,979 92,982 389,415 130,358 359,476 83,964 2,042,154 *Excludes Culpeper, VA and Rappahannock, VA Source: 2010 American Community Survey, 1-year file, and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Building Type Building Type Loudoun County Housing Needs Assessment Appendix UIIa U.II.a. Housing Units by Building Type Occupied Units Select Jursidictions U.II.a (3) Building Type, 2006 Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area* Single-family detached 48,522 28,974 190,432 71,119 176,504 49,880 957,578 Single-family attached/townhouse 23,121 8,895 85,793 28,801 64,113 15,576 382,073 2-4 units 518 3,005 4,273 2,344 6,103 3,220 57,906 5-19 units 7,192 15,266 46,714 15,795 46,214 8,449 280,310 20-49 units 1,810 3,033 9,860 895 9,093 644 57,993 50+ units 1,737 26,067 24,291 2,007 39,180 1,679 193,985 Mobile home/trailer/other 111 97 1,965 1,374 231 535 12,671 Total Occupied Units 83,011 85,337 363,328 122,335 341,438 79,983 1,942,516 *Excludes Culpeper, VA and Rappahannock, VA Source: 2006 American Community Survey, 1-year file, and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series U.II.a (4) Building Type, 2000 Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area* Single-family detached 34,609 27,027 178,658 51,585 168,385 46,232 857,062 Single-family attached/townhouse 16,577 8,941 80,981 25,174 58,404 12,372 349,825 2-4 units 696 5,376 6,424 1,718 6,233 2,679 63,991 5-19 units 5,782 13,918 50,285 11,801 45,437 6,305 270,468 20-49 units 913 3,252 9,020 1,007 8,881 948 54,176 50+ units 1,066 27,737 23,260 1,637 36,718 833 189,515 Mobile home/trailer/other 257 101 2,086 1,648 507 691 15,226 Total Occupied Units 59,900 86,352 350,714 94,570 324,565 70,060 1,800,263 *Excludes Culpeper, VA and Rappahannock, VA Source: 2000 Decennial Census, Summary File 3 Building Type Building Type Loudoun County Housing Needs Assessment Appendix UIII U.III. Housing Units by Year Built Occupied Units Loudoun County, Virginia No.Pct.No.Pct. 2012-2014 N/A N/A 4,815 4.1% 2010 or 2011 N/A N/A 5,511 4.7% 2005-2009 N/A N/A 18,860 16.1% 2000-2004 N/A N/A 23,891 20.4% Built 1999 to March 2000 5,528 9.2% N/A N/A 1990-1999 24,817 41.4%30,639 26.2% 1980-1989 12,384 20.7%13,331 11.4% 1979-1979 7,993 13.3%8,931 7.6% 1960-1969 3,735 6.2%4,254 3.6% 1950-1959 1,571 2.6%2,262 1.9% Before 1950 3,872 6.5%4,613 3.9% Total Occupied Housing Units 59,900 100.0%117,108 100.0% Source: 2014 American Community Survey, 1-year public use microdata sample (PUMS) files, 2000 Decennial Census (Summary File 3) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series 2014 Year Built 2000 Loudoun County Housing Needs Assessment Appendix UIV U.IV. Housing Units by Number of Bedrooms Occupied Units Loudoun County, Virginia Units 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 No Bedrooms / Studio 466 54 133 536 475 323 328 177 630 555 1 Bedroom 3,214 3,612 4,550 5,472 5,502 5,139 5,093 4,676 5,726 6,470 2 Bedrooms 9,463 12,627 14,335 14,408 14,978 14,186 17,153 16,648 16,112 15,448 3 Bedrooms 22,641 33,473 31,281 34,286 33,730 34,165 33,651 36,417 38,674 38,046 4 Bedrooms 19,279 32,387 32,777 30,424 33,679 36,165 33,740 35,929 35,672 39,931 5+ Bedrooms 4,837 11,206 14,330 15,113 13,929 14,606 16,886 15,568 16,200 16,658 Total Occupied Housing Units 59,900 93,359 97,405 100,239 102,293 104,583 106,851 109,414 113,015 117,108 Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 3) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Share of Total 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 No Bedrooms / Studio 0.8%0.1%0.1%0.5%0.5%0.3%0.3%0.2%0.6%0.5% 1 Bedroom 5.4%3.9%4.7%5.5%5.4%4.9%4.8%4.3%5.1%5.5% 2 Bedrooms 15.8%13.5%14.7%14.4%14.6%13.6%16.1%15.2%14.3%13.2% 3 Bedrooms 37.8%35.9%32.1%34.2%33.0%32.7%31.5%33.3%34.2%32.5% 4 Bedrooms 32.2%34.7%33.6%30.4%32.9%34.6%31.6%32.8%31.6%34.1% 5+ Bedrooms 8.1%12.0%14.7%15.1%13.6%14.0%15.8%14.2%14.3%14.2% Total 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 3) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Number of Bedrooms Number of Bedrooms Loudoun County Housing Needs Assessment Appendix UV U.V. Housing Units by Occupants Per Room Occupied Units Loudoun County, Virginia Units 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 0.50 or less 47,306 74,487 77,989 83,603 80,318 79,561 83,988 82,548 88,282 85,549 0.51 - 1.00 11,189 18,026 18,220 15,430 20,867 23,565 19,734 25,832 22,788 29,215 1.01 - 1.50 807 846 1,157 920 1,006 1,285 2,284 1,034 1,350 1,861 1.51 - 2.00 511 - 39 158 54 89 650 - 357 484 2.01+ 87 - - 128 48 82 195 - 239 - Total Occupied Housing Units 59,900 93,359 97,405 100,239 102,293 104,583 106,851 109,414 113,015 117,108 Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 3) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Share of Total 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 0.50 or less 79.0%79.8%80.1%83.4%78.5%76.1%78.6%75.4%78.1%73.1% 0.51 - 1.00 18.7%19.3%18.7%15.4%20.4%22.5%18.5%23.6%20.2%24.9% 1.01 - 1.50 1.3%0.9%1.2%0.9%1.0%1.2%2.1%0.9%1.2%1.6% 1.51 - 2.00 0.9%0.0%0.0%0.2%0.1%0.1%0.6%0.0%0.3%0.4% 2.01+0.1%0.0%0.0%0.1%0.0%0.1%0.2%0.0%0.2%0.0% Total 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 3) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Occupants Per Room Occupants Per Room Loudoun County Housing Needs Assessment Appendix UVI U.VI. Housing Units by Gross Rent Renter Occupied Units Loudoun County, Virginia No.Pct. <$750 1,273 4.6% $750-1,000 1,436 5.2% $1,001-1,250 2,265 8.2% $1,251-1,500 3,969 14.4% $1,501-2,000 11,280 41.0% $2,001-2,500 4,019 14.6% $2,500+2,492 9.1% Occupied without Rent 787 2.9% Total Renter Occupied Housing Units 27,521 100.0% Source: 2014 American Community Survey, 1-year public use microdata sample (PUMS) files and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series 2014 Gross Rent Loudoun County Housing Needs Assessment Appendix UVII U.VII. Housing Units by Home Value Owner Occupied Units Loudoun County, Virginia No.Pct. <$200,000 6,733 7.6% $200,000-299,999 7,400 8.3% $300,000-399,999 19,215 21.6% $400,000-499,999 15,468 17.4% $500,000-599,999 13,860 15.6% $600,000-699,999 12,940 14.6% $700,000-799,999 5,895 6.6% $800,000-899,999 3,665 4.1% $900,000-999,999 1,184 1.3% $1,000,000+2,447 2.8% Total Owner Occupied Housing Units 88,807 100.0% Source: 2014 American Community Survey, 1-year public use microdata sample (PUMS) files and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series 2014 Home Value Loudoun County Housing Needs Assessment Appendix HMIa HM.I.a. Number of Sales of Existing and New Homes Loudoun County, Virginia Year Condo Properties Single- Family Attached Single- Family Detached Total Condo Properties Single- Family Attached Single- Family Detached Total 2000 540 1,607 1,880 4,027 36 250 706 992 5,019 2001 780 2,133 2,005 4,918 46 392 839 1,277 6,195 2002 735 2,306 2,438 5,479 27 353 869 1,249 6,728 2003 898 2,858 2,872 6,628 22 372 1,243 1,637 8,265 2004 1,009 3,273 3,384 7,666 97 306 1,318 1,721 9,387 2005 977 3,013 3,201 7,191 152 409 1,357 1,918 9,109 2006 681 1,940 2,220 4,841 70 213 777 1,060 5,901 2007 523 1,625 2,199 4,347 65 210 602 877 5,224 2008 558 1,887 2,320 4,765 67 213 452 732 5,497 2009 614 1,742 2,404 4,760 81 182 369 632 5,392 2010 632 1,507 2,191 4,330 105 211 421 737 5,067 2011 543 1,422 2,209 4,174 62 273 430 765 4,939 2012 561 1,647 2,461 4,669 98 456 531 1,085 5,754 2013 708 1,966 2,723 5,397 204 382 526 1,112 6,509 2014 679 1,737 2,413 4,829 182 351 595 1,128 5,957 2015 782 2,058 2,805 5,645 130 316 502 948 6,593 *Includes 30-40% of all new construction sales in 2013-2015, based on comparisons with data from the Loudoun County Commissioner of the Revenue. Source: Metropolitan Regional Information Systems (MRIS), GMU Center for Regional Analysis Existing Homes New Construction* Total Loudoun County Housing Needs Assessment Appendix HMIbi HM.I.b.i. Median Sales Price of Existing and New Home Sales Loudoun County, Virginia Year Condo Properties Single- Family Attached Single- Family Detached Total Condo Properties Single- Family Attached Single- Family Detached Total 2000 104,000 167,900 295,000 192,500 161,810 187,555 339,636 300,610 209,000 2001 121,000 200,000 335,000 220,000 214,558 258,642 400,000 328,540 238,000 2002 147,000 229,900 355,950 252,500 273,426 277,733 430,272 374,770 269,345 2003 174,950 265,000 400,000 289,900 245,215 319,909 489,439 443,190 309,900 2004 229,900 347,900 500,000 375,000 309,687 402,195 579,157 528,320 391,000 2005 300,000 425,000 620,000 460,000 350,096 496,876 730,000 656,378 485,900 2006 308,000 405,000 601,000 450,000 362,140 507,072 785,975 702,998 484,900 2007 275,000 378,000 555,000 419,000 319,000 470,000 691,583 608,749 440,000 2008 184,900 289,900 451,000 330,000 296,990 416,842 627,637 520,665 350,000 2009 150,000 285,000 450,000 321,500 276,600 380,000 538,857 447,385 335,000 2010 175,000 309,900 490,000 349,900 304,209 380,000 557,514 439,015 364,900 2011 195,000 305,000 492,000 358,745 264,067 388,424 568,485 466,410 380,000 2012 205,995 331,650 505,000 372,900 305,058 409,026 594,000 464,367 395,470 2013 235,000 363,000 540,000 405,000 345,000 443,477 647,207 490,925 421,989 2014 249,900 375,000 550,000 419,900 344,312 447,800 670,655 524,930 435,000 2015 250,000 377,500 557,000 417,000 350,200 469,822 677,293 549,559 435,000 *Includes 30-40% of all new construction sales in 2013-2015, based on comparisons with data from the Loudoun County Commissioner of the Revenue. Pricing does not substantially differ between the two. Source: Metropolitan Regional Information Systems (MRIS), GMU Center for Regional Analysis Existing Homes New Construction* Total Loudoun County Housing Needs Assessment Appendix HMIbii HM.I.b.ii. Price of Existing and New Home Sales Loudoun County, Virginia Year <$200k $200-299k $300-399k $400-499k $500-599k $600-699k $700-799k $800-899k $900-999k $1M+Total 2000 2,152 954 596 188 65 21 15 13 8 15 4,027 2001 1,916 1,675 769 344 105 45 18 13 11 22 4,918 2002 1,323 2,326 990 538 178 58 32 11 7 16 5,479 2003 1,011 2,627 1,505 888 329 146 59 24 13 26 6,628 2004 352 1,432 2,673 1,423 902 522 179 77 31 74 7,665 2005 70 555 1,483 2,183 1,086 777 514 240 118 165 7,191 2006 34 358 1,246 1,247 753 579 309 156 55 104 4,841 2007 81 529 1,243 988 605 428 211 110 44 108 4,347 2008 758 1,267 1,113 599 472 253 147 73 40 43 4,765 2009 849 1,241 1,066 585 508 279 108 54 35 35 4,760 2010 611 984 1,031 609 511 296 130 75 36 47 4,330 2011 449 1,019 941 630 526 275 169 75 28 62 4,174 2012 366 934 1,293 758 624 346 175 84 24 65 4,669 2013 242 814 1,556 1,019 750 545 228 122 46 75 5,397 2014 166 683 1,352 970 704 478 220 122 46 88 4,829 2015 209 752 1,592 1,134 837 595 262 114 56 94 5,645 Source: Metropolitan Regional Information Systems (MRIS), GMU Center for Regional Analysis Year <$200k $200-299k $300-399k $400-499k $500-599k $600-699k $700-799k $800-899k $900-999k $1M+Total 2000 208 286 285 125 41 19 18 8 - 2 992 2001 94 439 308 257 93 35 25 10 7 9 1,277 2002 18 348 356 223 152 86 28 14 8 16 1,249 2003 10 211 437 362 302 185 72 34 8 16 1,637 2004 8 139 270 344 344 261 162 91 56 46 1,721 2005 6 59 186 291 301 258 312 210 122 173 1,918 2006 4 13 60 157 129 156 156 158 74 153 1,060 2007 2 23 100 172 128 136 126 75 37 78 877 Existing Homes New Construction Sales* Loudoun County Housing Needs Assessment Appendix HMIbii 2008 2 51 128 152 142 105 58 39 16 39 732 2009 10 79 146 169 102 57 33 17 4 15 632 2010 5 61 235 143 134 80 48 21 2 8 737 2011 8 42 206 173 187 94 32 8 10 5 765 2012 4 72 250 283 221 159 65 17 5 9 1,085 2013 3 36 271 261 185 182 102 44 17 11 1,112 2014 3 9 247 270 147 211 136 50 19 36 1,128 2015 3 4 165 233 137 195 124 46 14 27 948 *Includes 30-40% of all new construction sales in 2013-2015, based on comparisons with data from the Loudoun County Commissioner of the Revenue. Source: Metropolitan Regional Information Systems (MRIS), GMU Center for Regional Analysis Loudoun County Housing Needs Assessment Appendix HMIc HM.I.c. Closed Sales by Price, Type and Number of Bedrooms, 2015 Loudoun County, Virginia Single-Family Detached 0/1 2 3 4 5 6+Total <200k 1 8 3 2 0 0 14 200-299k 1 13 50 18 1 1 84 300-399k - 27 174 204 36 3 444 400-499k 1 13 137 305 62 5 523 500-599k - 6 72 522 151 12 763 600-699k 1 2 25 441 253 32 754 700-799k 1 0 12 191 141 34 379 800-899k - 0 2 71 61 24 158 900-999k - 0 1 22 33 12 68 1M+- 0 7 39 46 28 120 Total 5 69 483 1,815 784 151 3,307 Source: Metropolitan Regional Information Systems (MRIS), GMU Center for Regional Analysis Single-Family Attached 0/1 2 3 4 5 6+Total <200k - 3 10 0 0 0 13 200-299k - 56 188 37 0 0 281 300-399k 1 59 800 154 2 0 1,016 400-499k - 3 608 200 5 0 816 500-599k 3 2 113 61 22 1 202 600-699k - 0 12 19 2 1 34 700-799k - 0 2 3 2 0 7 800-899k - 0 1 0 1 0 2 900-999k - 0 1 1 0 0 2 1M+- 0 0 1 0 0 1 Total 4 123 1,735 476 34 2 2,374 Source: Metropolitan Regional Information Systems (MRIS), GMU Center for Regional Analysis Loudoun County Housing Needs Assessment Appendix HMIc Condo Properties 0/1 2 3 4 5 6+Total <200k 63 99 23 0 0 0 185 200-299k 5 255 126 5 0 0 391 300-399k 1 37 245 14 0 0 297 400-499k - 9 18 0 0 1 28 500-599k - 0 6 3 0 0 9 600-699k - 0 1 1 0 0 2 700-799k - 0 0 0 0 0 - 800-899k - 0 0 0 0 0 - 900-999k - 0 0 0 0 0 - 1M+- 0 0 0 0 0 - Total 69 400 419 23 - 1 912 Source: Metropolitan Regional Information Systems (MRIS), GMU Center for Regional Analysis All Properties 0/1 2 3 4 5 6+Total <200k 64 110 36 2 - - 212 200-299k 6 324 364 60 1 1 756 300-399k 2 123 1,219 372 38 3 1,757 400-499k 1 25 763 505 67 6 1,367 500-599k 3 8 191 586 173 13 974 600-699k 1 2 38 461 255 33 790 700-799k 1 - 14 194 143 34 386 800-899k - - 3 71 62 24 160 900-999k - - 2 23 33 12 70 1M+- - 7 40 46 28 121 Total 78 592 2,637 2,314 818 154 6,593 Source: Metropolitan Regional Information Systems (MRIS), GMU Center for Regional Analysis Loudoun County Housing Needs Assessment Appendix HMId HM.I.d. Active Listings by Price, April 2016 Loudoun County, Virginia Price Group Pct. <$200k 33 1.8% $200-299k 104 5.7% $300-399k 224 12.3% $400-499k 231 12.7% $500-599k 283 15.6% $600-699k 373 20.6% $700-799k 178 9.8% $800-899k 137 7.5% $900-999k 81 4.5% $1M+171 9.4% Total 1,815 100.0% Source: Metropolitan Regional Information Systems (MRIS), GMU Center for Regional Analysis No. Loudoun County Housing Needs Assessment Appendix HMIe HM.I.e. Active Listings by Unit Type, Number of Bedrooms and Unit Size, April 2016 Loudoun County, Virginia Pct. Unit Type Condo 219 12.1% Single-Family Attached 337 18.6% Single-Family Detached 1,259 69.4% Number of Bedrooms 0 2 0.1% 1 19 1.0% 2 129 7.1% 3 478 26.3% 4 740 40.8% 5 345 19.0% 6+102 5.6% Unit Square Feet N/A 374 20.6% <1,000 34 1.9% 1,000 - 1,999 239 13.2% 2,000 - 2,999 322 17.7% 3,000 - 3,999 316 17.4% 4,000 - 4,999 250 13.8% 5,000 - 5,999 124 6.8% 6,000 - 6,999 66 3.6% 7,000+90 5.0% Total 1,815 100.0% Source: Metropolitan Regional Information Systems (MRIS), GMU Center for Regional Analysis No. Loudoun County Housing Needs Assessment Appendix HMII HM.II. Summary of 2015 Rental Market Loudoun County, Virginia 0 or 1 2 3 Total 0 or 1 2 3 Total Market-Rate Units* by Average Price <$1,000 10 50 2 72 14%69%3%100% $1,000-1,199 218 138 - 574 38%24%0%100% $1,200-1,299 657 718 - 2,032 32%35%0%100% $1,300-1,399 518 942 36 2,014 26%47%2%100% $1,400-1,499 970 570 298 2,808 35%20%11%100% $1,500-1,599 640 1,004 178 2,462 26%41%7%100% $1,600-1,699 280 1,188 64 1,812 15%66%4%100% $1,700-1,799 346 228 202 1,122 31%20%18%100% $1,800-1,999 - 994 95 1,089 0%91%9%100% $2,000-2,199 - - 183 183 0%0%100%100% $2,200+- - 77 77 0%0%100%100% Total 3,639 5,832 1,135 14,245 26%41%8%100% Income Restricted Complexes** Total 118 225 38 381 31%59%10%100% Senior Housing** Total 637 157 28 822 77%19%3%100% * Includes complexes for which the total number of units is known by number of bedrooms and price range. ** Includes complexes for which the total number of units is known. Source: Loudoun County Department of Family Services Units by # of Bedrooms Share of Total by Bedrooms Loudoun County Housing Needs Assessment Appendix HMIII HM.III. Residential Building Permits by Type of Structure Loudoun County, Virginia Year Single- Family Detached Single- Family Attached Multi-family Total Single- Family Detached Single- Family Attached Multi- family Total 1991 523 493 84 1,100 48%45%8%100% 1992 1,369 942 115 2,426 56%39%5%100% 1993 1,610 1,175 319 3,104 52%38%10%100% 1994 1,723 1,339 786 3,848 45%35%20%100% 1995 1,382 1,066 238 2,686 51%40%9%100% 1996 1,646 1,065 345 3,056 54%35%11%100% 1997 1,904 1,278 323 3,505 54%36%9%100% 1998 2,384 1,527 1,363 5,274 45%29%26%100% 1999 2,746 1,817 1,289 5,852 47%31%22%100% 2000 2,680 2,377 1,077 6,134 44%39%18%100% 2001 1,827 1,578 1,307 4,712 39%33%28%100% 2002 2,874 1,608 1,494 5,976 48%27%25%100% 2003 3,316 2,247 1,094 6,657 50%34%16%100% 2004 3,498 2,000 1,095 6,593 53%30%17%100% 2005 3,151 1,557 357 5,065 62%31%7%100% 2006 1,886 870 305 3,061 62%28%10%100% 2007 1,442 996 301 2,739 53%36%11%100% 2008 804 706 881 2,391 34%30%37%100% 2009 960 816 309 2,085 46%39%15%100% 2010 1,027 755 177 1,959 52%39%9%100% 2011 1,061 1,302 596 2,959 36%44%20%100% 2012 1,299 1,649 771 3,719 35%44%21%100% 2013 1,685 1,797 1,318 4,800 35%37%27%100% 2014 1,686 1,160 641 3,487 48%33%18%100% 2015 1,465 1,165 952 3,582 41%33%27%100% Source: Loudoun County Department of Building and Development. Permits Issued Share of Total Loudoun County Housing Needs Assessment Appendix AI A.I. Housing Costs as a Percent of Household Income Owner Households Loudoun County, Virginia 2000*2006 2007 2008 2009 2010 2011 2012 2013 2014 <30%32,113 45,271 47,766 49,306 51,374 54,635 56,100 62,401 64,983 66,265 30-49%6,751 19,685 20,747 19,934 19,962 19,858 18,145 16,539 13,278 15,628 50%+1,971 14,198 12,193 8,675 9,469 7,390 7,855 7,590 6,410 6,914 Total Owner Households 40,835 79,153 80,706 77,915 80,805 81,883 82,100 86,530 84,671 88,807 *Only includes specified units Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 3) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series 2000*2006 2007 2008 2009 2010 2011 2012 2013 2014 <30%78.6%57.2%59.2%63.3%63.6%66.7%68.3%72.1%76.7%74.6% 30-49%16.5%24.9%25.7%25.6%24.7%24.3%22.1%19.1%15.7%17.6% 50%+4.8%17.9%15.1%11.1%11.7%9.0%9.6%8.8%7.6%7.8% Total Owner Households 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% *Only includes specified units Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 3) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Owner Households Share of Owner Households Loudoun County Housing Needs Assessment Appendix AII A.II. Housing Costs as a Percent of Household Income Renter Households Loudoun County, Virginia 2000*2006 2007 2008 2009 2010 2011 2012 2013 2014 <30%7,874 7,317 7,790 12,380 11,399 12,785 14,596 13,187 16,268 14,359 30-49%2,309 3,954 5,335 4,876 5,432 5,715 6,360 5,691 7,819 7,772 50%+1,396 2,934 3,574 5,068 4,656 4,200 3,795 4,005 4,256 6,169 Total Renter Households 11,579 14,206 16,699 22,324 21,488 22,700 24,751 22,884 28,344 28,300 *Only includes specified units Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 3) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series 2000*2006 2007 2008 2009 2010 2011 2012 2013 2014 <30%68.0%51.5%46.6%55.5%53.1%56.3%59.0%57.6%57.4%50.7% 30-49%19.9%27.8%32.0%21.8%25.3%25.2%25.7%24.9%27.6%27.5% 50%+12.1%20.7%21.4%22.7%21.7%18.5%15.3%17.5%15.0%21.8% Total Renter Households 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% *Only includes specified units Source: 1-Year American Community Survey (2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014), 2000 Decennial Census (Summary File 3) and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Renter Households Share of Renter Households Loudoun County Housing Needs Assessment Appendix Ala A.I.a. Percent of Households that are Cost Burdened Select Jurisdictions A.I.a (1) Percent of Households that are Cost Burdened, 2014 Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area Owner Households 25.4%19.2%23.1%26.4%25.5%26.3%25.8% Renter Households 49.3%40.4%46.0%54.0%50.6%49.3%49.0% Total Occupied Units 31.2%31.0%30.6%34.0%34.2%32.3%34.5% Source: 2014 American Community Survey, 1-year file, and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series A.I.a (2) Percent of Households that are Cost Burdened, 2010 Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area* Owner Households 33.3%26.4%28.3%32.4%32.8%30.3%32.5% Renter Households 43.7%39.1%44.1%46.9%53.1%40.3%48.3% Total Occupied Units 35.5%33.5%33.0%36.3%39.6%32.7%38.1% *Excludes Culpeper, VA and Rappahannock, VA Source: 2010 American Community Survey, 1-year file, and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series A.I.a (3) Percent of Households that are Cost Burdened, 2006 Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area* Owner Households 42.8%27.7%32.0%41.0%31.9%32.3%33.8% Renter Households 48.5%37.1%47.3%45.9%46.0%37.6%45.5% Total Occupied Units 43.7%32.0%35.8%42.3%36.1%33.5%37.6% *Excludes Culpeper, VA and Rappahannock, VA Source: 2006 American Community Survey, 1-year file, and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series A.I.a (4) Percent of Households that are Cost Burdened, 2000 Only includes specified units Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area* Loudoun County Housing Needs Assessment Appendix Ala Owner Households 21.4%17.4%19.8%22.9%22.0%22.6%22.8% Renter Households 32.0%32.6%31.8%33.5%36.7%33.3%35.4% Total Occupied Units 23.7%27.1%23.6%26.1%27.1%25.4%27.8% *Excludes Culpeper, VA and Rappahannock, VA Source: 2000 Decennial Census, Summary File 3 Loudoun County Housing Needs Assessment Appendix AIIIa A.III.a. Housing Costs as a Percent of Household Income by Household Income, 2012-2014 Average (2015 $s) All Households Loudoun County, Virginia No.%No.%No.%No.% <$15K 3,025 2.7%355 11.7%249 8.2%2,420 80.0% $15-29K 4,846 4.3%894 18.4%833 17.2%3,120 64.4% $30-59K 14,273 12.6%3,989 28.0%6,457 45.2%3,827 26.8% $60-79K 9,708 8.6%4,528 46.6%4,164 42.9%1,017 10.5% $80-99K 12,021 10.6%7,822 65.1%3,640 30.3%559 4.7% $100-119K 11,848 10.5%9,359 79.0%2,240 18.9%249 2.1% $120-149K 14,839 13.1%12,435 83.8%2,272 15.3%132 0.9% $150-199K 17,495 15.5%16,076 91.9%1,359 7.8%60 0.3% $200-249K 11,740 10.4%11,212 95.5%528 4.5%0 0.0% $250K+13,382 11.8%13,021 97.3%360 2.7%0 0.0% Total Households 113,179 100.0%79,692 70.4%22,102 19.5%11,385 10.1% Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series Household Income <30%30-49%50%+Total Households Loudoun County Housing Needs Assessment Appendix AIIIb A.III.b. Housing Costs as a Percent of Household Income by Percent of 2015 Area Median Income, 2012-2014 Average All Households Loudoun County, Virginia No.%No.%No.%No.% Less than 30% AMI 7,048 6.2%881 12.5%999 14.2%5,169 73.3% 30-49% AMI 7,377 6.5%1,424 19.3%3,076 41.7%2,878 39.0% 50-59% AMI 5,879 5.2%2,077 35.3%2,824 48.0%978 16.6% 60-79% AMI 10,398 9.2%4,847 46.6%4,328 41.6%1,223 11.8% 80-99% AMI 10,831 9.6%6,607 61.0%3,630 33.5%595 5.5% 100-119% AMI 12,511 11.1%9,505 76.0%2,694 21.5%311 2.5% 120-139% AMI 10,890 9.6%8,966 82.3%1,814 16.7%110 1.0% 140-159% AMI 8,628 7.6%7,451 86.4%1,108 12.8%69 0.8% 160-179% AMI 6,936 6.1%6,501 93.7%382 5.5%53 0.8% 180-199% AMI 7,706 6.8%7,288 94.6%417 5.4%0 0.0% 200%AMI +24,975 22.1%24,145 96.7%830 3.3%0 0.0% Total Households 113,179 100.0%79,692 70.4%22,102 19.5%11,385 10.1% Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series 30-49%50%+ Area Median Income Total Households <30% Loudoun County Housing Needs Assessment Appendix AIIIc A.III.c. Housing Costs as a Percent of Household Income by Percent of 2015 Select Area Median Income, 2012-2014 Average All Households Loudoun County, Virginia No.%No.%No.%No.% Less than 30% AMI 7,048 6.2%881 12.5%999 14.2%5,169 73.3% 30-49.9% AMI 7,377 6.5%1,424 19.3%3,076 41.7%2,878 39.0% 50-69.9% AMI 10,579 9.3%3,738 35.3%5,293 50.0%1,548 14.6% 50-59.9% AMI 5,879 5.2%2,077 35.3%2,824 48.0%978 16.6% 70-79.9% AMI 5,698 5.0%3,186 55.9%1,860 32.6%653 11.5% 80-99.9% AMI 10,831 9.6%6,607 61.0%3,630 33.5%595 5.5% 100%+ AMI 71,645 63.3%63,856 89.1%7,245 10.1%543 0.8% Total Households 113,179 100.0%79,692 70.4%22,102 19.5%11,385 10.1% Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series 50%+ Area Median Income Total Households <30%30-49% Loudoun County Housing Needs Assessment Appendix AIIId A.III.d. Housing Costs as a Percent of Household Income by Household Type, 2012-2014 Average All Households Loudoun County, Virginia No.%No.%No.%No.% Married Couple, w/ Children 46,482 41.1%34,648 74.5%9,401 20.2%2,432 5.2% Married Couple, w/o Children 27,236 24.1%21,656 79.5%3,671 13.5%1,909 7.0% Single Parent 9,138 8.1%4,524 49.5%2,935 32.1%1,679 18.4% Other Family, w/o Children 5,153 4.6%3,452 67.0%986 19.1%716 13.9% Living Alone (65+)5,083 4.5%2,445 48.1%945 18.6%1,693 33.3% Living Alone (Under 65)14,181 12.5%8,264 58.3%3,492 24.6%2,425 17.1% Other Non-Family, Not Living Alone 5,905 5.2%4,702 79.6%673 11.4%530 9.0% Total Households 113,179 100.0%79,692 70.4%22,102 19.5%11,385 10.1% Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series 30-49%50%+ Household Type Total Households <30% Loudoun County Housing Needs Assessment Appendix AIIIe A.III.e. Housing Costs as a Percent of Household Income by Household Size, 2012-2014 Average All Households Loudoun County, Virginia No.%No.%No.%No.% 1-person 19,265 17.0%10,709 55.6%4,437 23.0%4,119 21.4% 2-person 30,876 27.3%23,058 74.7%5,049 16.4%2,768 9.0% 3-person 21,657 19.1%15,890 73.4%4,040 18.7%1,728 8.0% 4+ person 41,381 36.6%30,034 72.6%8,576 20.7%2,770 6.7% Total Households 113,179 100.0%79,692 70.4%22,102 19.5%11,385 10.1% Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series 30-49%50%+ Household Size Total Households <30% Loudoun County Housing Needs Assessment Appendix AIIIf A.III.f. Housing Costs as a Percent of Household Income by Race/Ethnicity of Household Head, 2012-2014 Average All Households Loudoun County, Virginia No.%No.%No.%No.% White 75,262 66.5%55,800 74.1%12,357 16.4%7,105 9.4% Black 8,061 7.1%5,071 62.9%1,922 23.8%1,068 13.2% Asian 15,464 13.7%11,105 71.8%2,991 19.3%1,368 8.8% Other/Multi-Racial 2,910 2.6%1,941 66.7%619 21.3%350 12.0% Hispanic 11,483 10.1%5,775 50.3%4,215 36.7%1,493 13.0% Total Households 113,179 100.0%79,692 70.4%22,102 19.5%11,385 10.1% Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series 30-49%50%+ Householder Race/Ethnicity Total Households <30% Loudoun County Housing Needs Assessment Appendix AIIIg A.III.g. Housing Costs as a Percent of Household Income by Age of Household Head, 2012-2014 Average All Households Loudoun County, Virginia No.%No.%No.%No.% Under 25 1,457 1.3%522 35.9%318 21.8%617 42.3% 25-34 16,991 15.0%11,686 68.8%3,664 21.6%1,640 9.7% 35-44 32,773 29.0%23,396 71.4%7,063 21.6%2,313 7.1% 45-54 29,667 26.2%22,140 74.6%5,376 18.1%2,151 7.3% 55-64 18,801 16.6%12,915 68.7%3,686 19.6%2,200 11.7% 65+13,490 11.9%9,031 66.9%1,995 14.8%2,464 18.3% Total Households 113,179 100.0%79,692 70.4%22,102 19.5%11,385 10.1% Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series 30-49%50%+ Householder Age Total Households <30% Loudoun County Housing Needs Assessment Appendix AIIIg1 A.III.g.1. Housing Costs as a Percent of Household Income by Age of Household Head All Households Loudoun County, Virginia (2012-2014) No.%No.%No.% Under 20 82 0 0.0%0 0.0%82 100.0% 20-34 18,366 12,209 66.5%3,982 21.7%2,175 11.8% 35-64 81,241 58,452 71.9%16,125 19.8%6,664 8.2% 65+13,490 9,031 66.9%1,995 14.8%2,464 18.3% 55+32,291 21,946 68.0%5,681 17.6%4,664 14.4% 62+17,487 11,530 65.9%2,908 16.6%3,050 17.4% 70+8,646 5,512 63.8%1,141 13.2%1,993 23.0% Total Households 113,179 79,692 70.4%22,102 19.5%11,385 10.1% Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average 30-49%50%+ Householder Age Total <30% Loudoun County Housing Needs Assessment Appendix AIIIh A.III.h. Housing Costs as a Percent of Household Income by Disability Status of Household Members, 2012-2014 Average All Households Loudoun County, Virginia No.%No.%No.%No.% With a Disability 7,301 6.5%4,431 60.7%1,374 18.8%1,496 20.5% Hearing Difficulty 1,780 1.6%1,272 71.5%265 14.9%242 13.6% Vision Difficulty 569 0.5%329 57.8%91 16.0%149 26.2% Cognitive Difficulty 568 0.5%490 86.3%8 1.4%70 12.3% Ambulatory Difficulty 1,192 1.1%443 37.2%406 34.1%342 28.7% With a Self-Care Difficulty 72 0.1%27 37.5%18 25.0%27 37.5% Independent Living Difficulty 376 0.3%104 27.7%180 47.9%92 24.5% Multiple Disabilities 2,743 2.4%1,765 64.3%405 14.8%574 20.9% Without a Disability 105,877 93.5%75,261 71.1%20,728 19.6%9,889 9.3% Total Households 113,179 100.0%79,692 70.4%22,102 19.5%11,385 10.1% Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series 30-49%50%+Total Households <30% Loudoun County Housing Needs Assessment Appendix AIIIi1 A.III.i.1. Households by Income and Homes Affordable at Different Income Levels (Homeowners) Loudoun County, Virginia (2012-2014) 0 1 2 3 4+Total Less than 30% AMI - 99 540 1,145 915 2,699 30-49.9% AMI - 255 999 1,412 814 3,480 50-69.9% AMI - 312 1,511 3,193 2,303 7,319 50-59.9% AMI - 189 644 1,564 1,088 3,485 70-79.9% AMI - - 1,135 3,669 1,833 6,637 80-99.9% AMI 27 93 1,732 8,772 5,444 16,067 100%+ AMI 27 204 1,094 11,372 38,093 50,790 Total Ownership Units 54 964 7,011 29,563 49,401 86,993 Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series 1 2 3 4 5+Total Less than 30% AMI 1,624 672 394 224 217 3,132 30-49.9% AMI 1,225 962 633 706 646 4,171 50-69.9% AMI 1,520 1,773 851 1,012 865 6,020 50-59.9% AMI 728 955 377 581 343 2,984 70-79.9% AMI 726 1,160 570 639 963 4,058 80-99.9% AMI 1,355 1,459 1,136 1,834 1,723 7,507 100%+ AMI 5,707 18,337 13,782 15,771 8,509 62,106 Total Owner Households 12,158 24,362 17,366 20,185 12,922 86,993 Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series About 42 percent of homes in Loudoun County are affordable to households earning below the area median household income (AMI), including 37 percent of homes with three or more bedrooms. Only about 28 percent of current homeowners have incomes below AMI. Number of Bedrooms Units with Values Affordable to Household Size Owner Households Earning Loudoun County Housing Needs Assessment Appendix AIIIi1 It is particularly difficult for lower-income households to find homeownership opportunities they can afford. For example, only about one out of ten homes in the County are affordable to families earning at or below 60 percent of AMI. Loudoun County Housing Needs Assessment Appendix AIIIi2 A.III.i.2. Households by Income and Homes Affordable at Different Income Levels (Renters*) Loudoun County, Virginia (2012-2014) 0 1 2 3 4+Total Less than 30% AMI 125 267 412 449 57 1,311 30-49.9% AMI - 833 1,507 988 149 3,477 50-69.9% AMI 61 1,753 3,485 3,355 941 9,594 50-59.9% AMI - 570 1,344 1,422 250 3,587 70-79.9% AMI 51 760 1,905 1,411 524 4,651 80-99.9% AMI - 404 1,013 1,788 879 4,084 100%+ AMI 88 388 413 325 851 2,066 Total Rental Units 325 4,405 8,736 8,316 3,401 25,183 Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series *Excludes households not paying rent 1 2 3 4 5+Total Less than 30% AMI 1,437 779 647 424 376 3,663 30-49.9% AMI 688 522 364 800 750 3,124 50-69.9% AMI 1,306 797 938 796 642 4,478 50-59.9% AMI 705 593 595 409 550 2,851 70-79.9% AMI 407 325 256 140 356 1,485 80-99.9% AMI 511 934 376 632 722 3,175 100%+ AMI 2,375 2,942 1,595 1,540 806 9,258 Total Renter Households 6,725 6,298 4,177 4,332 3,651 25,183 Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average and Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series *Excludes households not paying rent Number of Bedrooms Units with Rents Affordable to Household Size Renter Households Earning Loudoun County Housing Needs Assessment Appendix AIIIi2 There are nearly 9,700 renters in Loudoun County with incomes below 60 percent of the area median income (AMI), including more than 3,300 households with four or more people. There are very few units-- less than 1,500--that are affordable to these lower-income households with larger family sizes. There are very few smaller units affordable and available to extremely low income households. There are nearly 3,700 renter households with incomes below 30 percent of AMI but only 1,311 units that are available at this income level. Loudoun County Housing Needs Assessment Appendix EI E.I. Gross Regional Product and Gross County Product, Percent Change from Prior Year, 2000-2014 Year Washington Metropolitan Area Loudoun County, VA 2000 5.3 16.6 2001 4.1 15.5 2002 2.6 4.8 2003 3.9 8.8 2004 5.3 13.2 2005 4.6 8.6 2006 2.0 2.7 2007 1.7 2.2 2008 2.2 3.8 2009 (0.1) 0.5 2010 3.2 5.5 2011 1.4 3.2 2012 0.2 1.8 2013 (0.0) 4.3 2014 0.3 1.1 Source: Bureau of Economic Analysis, IHS Economics, GMU Center for Regional Analysis Loudoun County Housing Needs Assessment Appendix EIIa E.II.a. Jobs By Sector Job Located in Loudoun County, Virginia Jobs Sector 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Natural resources and mining 520 592 625 533 579 580 624 641 631 564 Construction 9,070 10,204 10,418 10,806 12,596 14,887 14,923 14,261 14,114 13,630 Manufacturing 4,260 4,184 4,271 4,627 4,773 4,918 5,286 5,132 4,877 4,666 Wholesale Trade 2,780 2,695 3,071 3,129 3,323 3,312 3,385 3,557 3,461 3,481 Retail Trade 8,695 9,747 10,139 10,981 11,947 13,159 14,720 14,938 15,893 15,512 Transportation and Utilities 12,334 11,488 9,815 9,854 9,353 10,243 10,261 10,255 10,295 9,380 Information 7,640 14,411 12,986 11,450 11,724 11,011 10,193 10,477 9,489 8,963 Financial activities 2,949 3,444 3,267 3,492 3,446 3,754 3,958 4,116 4,237 4,195 Professional and business services 12,766 14,063 13,606 15,083 16,726 18,970 21,241 22,619 24,051 24,523 Education and health services 4,362 5,491 5,670 4,998 6,009 8,120 8,929 9,108 9,524 9,828 Leisure and hospitality 8,609 8,758 8,665 8,598 9,343 10,180 10,673 12,166 12,776 12,226 Other services 2,163 2,313 2,625 3,113 3,577 3,927 3,962 3,910 4,151 4,010 Federal Government 4,267 4,106 4,281 4,792 4,650 4,444 4,265 4,278 4,336 4,154 State & Local Government 8,648 9,696 10,704 11,517 12,260 13,519 14,565 15,254 16,055 16,595 Total 89,064 101,191 100,142 102,973 110,305 121,022 126,985 130,709 133,890 131,727 Source: Quarterly Workforce Indicators (Private Sector), Quarterly Census of Wages and Employment (Public Sector) Share of Total Sector 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Natural resources and mining 0.6%0.6%0.6%0.5%0.5%0.5%0.5%0.5%0.5%0.4% Construction 10.2%10.1%10.4%10.5%11.4%12.3%11.8%10.9%10.5%10.3% Manufacturing 4.8%4.1%4.3%4.5%4.3%4.1%4.2%3.9%3.6%3.5% Wholesale Trade 3.1%2.7%3.1%3.0%3.0%2.7%2.7%2.7%2.6%2.6% Retail Trade 9.8%9.6%10.1%10.7%10.8%10.9%11.6%11.4%11.9%11.8% Transportation and Utilities 13.8%11.4%9.8%9.6%8.5%8.5%8.1%7.8%7.7%7.1% Information 8.6%14.2%13.0%11.1%10.6%9.1%8.0%8.0%7.1%6.8% Financial activities 3.3%3.4%3.3%3.4%3.1%3.1%3.1%3.1%3.2%3.2% Professional and business services 14.3%13.9%13.6%14.6%15.2%15.7%16.7%17.3%18.0%18.6% Loudoun County Housing Needs Assessment Appendix EIIa E.II.a. Jobs By Sector Job Located in Loudoun County, Virginia Education and health services 4.9%5.4%5.7%4.9%5.4%6.7%7.0%7.0%7.1%7.5% Leisure and hospitality 9.7%8.7%8.7%8.3%8.5%8.4%8.4%9.3%9.5%9.3% Other services 2.4%2.3%2.6%3.0%3.2%3.2%3.1%3.0%3.1%3.0% Federal Government 4.8%4.1%4.3%4.7%4.2%3.7%3.4%3.3%3.2%3.2% State & Local Government 9.7%9.6%10.7%11.2%11.1%11.2%11.5%11.7%12.0%12.6% Total 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% Source: Quarterly Workforce Indicators (Private Sector), Quarterly Census of Wages and Employment (Public Sector) Loudoun County Housing Needs Assessment Appendix EIIa 2010 2011 2012 2013 2014 578 630 688 628 607 14,296 13,523 11,696 12,760 13,424 4,856 5,227 6,142 6,515 6,362 3,229 3,579 3,767 3,550 3,610 15,726 16,286 16,262 16,600 16,495 9,412 9,700 10,136 9,427 9,645 7,297 7,320 6,743 6,951 7,467 4,200 4,721 4,894 4,952 4,893 25,311 26,470 28,775 30,315 30,204 11,547 12,010 12,298 12,930 13,530 12,379 14,016 14,304 15,457 16,005 4,252 4,738 5,001 4,995 5,032 4,269 4,391 4,301 4,049 3,814 16,573 17,154 17,783 18,183 18,565 133,923 139,763 142,790 147,311 149,650 2010 2011 2012 2013 2014 0.4%0.5%0.5%0.4%0.4% 10.7%9.7%8.2%8.7%9.0% 3.6%3.7%4.3%4.4%4.3% 2.4%2.6%2.6%2.4%2.4% 11.7%11.7%11.4%11.3%11.0% 7.0%6.9%7.1%6.4%6.4% 5.4%5.2%4.7%4.7%5.0% 3.1%3.4%3.4%3.4%3.3% 18.9%18.9%20.2%20.6%20.2% Loudoun County Housing Needs Assessment Appendix EIIa 8.6%8.6%8.6%8.8%9.0% 9.2%10.0%10.0%10.5%10.7% 3.2%3.4%3.5%3.4%3.4% 3.2%3.1%3.0%2.7%2.5% 12.4%12.3%12.5%12.3%12.4% 100.0%100.0%100.0%100.0%100.0% Loudoun County Housing Needs Assessment Appendix EIIb E.II.b. Average Wage By Sector (2014 $s) Job located in Loudoun County, Virginia Sector 2000 2001 2002 2003 2004 2005 2006 2007 2008 Natural resources and mining 48,788 48,700 49,551 51,032 48,671 53,537 48,600 48,921 48,649 Construction 60,015 59,576 60,252 60,285 62,105 63,265 61,824 68,179 66,226 Manufacturing 59,165 62,393 74,631 76,720 80,242 78,307 79,984 82,129 86,248 Wholesale Trade 91,667 85,843 80,445 80,679 83,719 87,543 86,987 89,529 93,177 Retail Trade 36,391 35,219 36,604 35,824 34,840 35,248 34,271 33,602 32,172 Transportation and Utilities 59,101 65,175 71,097 62,156 53,207 50,062 57,565 52,690 51,895 Information 238,286 182,465 129,211 126,122 145,956 146,868 149,111 135,009 124,783 Financial activities 62,668 61,832 68,633 69,673 71,782 72,159 80,773 73,576 71,107 Professional and business services 76,921 73,305 74,584 76,008 81,120 83,390 82,042 85,942 84,029 Education and health services 51,671 48,058 48,614 54,855 55,555 51,897 50,413 51,214 54,327 Leisure and hospitality 35,116 33,641 33,676 32,654 35,221 32,473 36,665 32,795 34,143 Other services 45,177 45,315 46,518 49,818 51,409 49,513 46,756 45,350 44,619 Federal Government 86,810 88,128 88,701 83,689 87,468 85,427 84,674 82,361 82,658 State & Local Government 45,812 47,904 50,668 49,860 49,693 49,458 50,468 51,435 50,834 Total 72,996 74,948 68,123 66,144 68,569 66,839 66,697 65,992 64,022 Source: Quarterly Workforce Indicators (Private Sector), Quarterly Census of Wages and Employment (Public Sector) Loudoun County Housing Needs Assessment Appendix EIIb 2009 2010 2011 2012 2013 2014 44,294 43,543 42,827 49,170 41,509 42,497 66,407 68,767 66,994 68,091 62,968 63,014 83,484 88,130 85,525 91,209 97,961 98,112 95,311 99,032 96,334 88,898 87,732 84,868 31,291 30,632 30,179 31,054 29,934 30,442 51,574 51,428 49,869 53,971 55,701 51,803 123,565 122,738 136,087 129,412 125,764 126,054 67,339 74,563 79,787 92,445 84,010 88,453 86,646 86,588 87,078 86,069 84,215 82,169 54,196 51,969 51,935 52,038 51,670 50,131 33,219 37,146 33,524 32,276 30,738 31,927 44,470 46,008 47,189 44,492 42,886 42,572 84,231 84,779 83,952 82,835 82,092 85,616 51,698 50,346 48,691 49,035 48,698 48,840 64,226 64,021 63,670 63,950 62,585 62,122 Loudoun County Housing Needs Assessment Appendix EIIc E.II.c. Summary of Employment and Wages, 2000 and 2014 Job located in Loudoun County, Virginia Jobs Share Avg. Wage (2014 $s)Jobs Share Avg. Wage (2014 $s)Jobs Percent Wage Percent Natural resources & mining 520 0.6%48,788 607 0.4%42,497 87 16.6%(6,292) -12.9% Construction 9,070 10.2%60,015 13,424 9.0%63,014 4,354 48.0%2,999 5.0% Manufacturing 4,260 4.8%59,165 6,362 4.3%98,112 2,102 49.4%38,947 65.8% Wholesale trade 2,780 3.1%91,667 3,610 2.4%84,868 830 29.8%(6,799) -7.4% Retail Trade 8,695 9.8%36,391 16,495 11.0%30,442 7,799 89.7%(5,949) -16.3% Transportation & utilities 12,334 13.8%59,101 9,645 6.4%51,803 (2,689) -21.8%(7,298) -12.3% Information 7,640 8.6%238,286 7,467 5.0%126,054 (173) -2.3%(112,232) -47.1% Financial activities 2,949 3.3%62,668 4,893 3.3%88,453 1,944 65.9%25,785 41.1% Professional & business services 12,766 14.3%76,921 30,204 20.2%82,169 17,437 136.6%5,247 6.8% Education & health services 4,362 4.9%51,671 13,530 9.0%50,131 9,168 210.2%(1,540) -3.0% Leisure & hospitality 8,609 9.7%35,116 16,005 10.7%31,927 7,396 85.9%(3,189) -9.1% Other services 2,163 2.4%45,177 5,032 3.4%42,572 2,869 132.6%(2,606) -5.8% Federal government 4,267 4.8%86,810 3,814 2.5%85,616 (453) -10.6%(1,194) -1.4% State & local government 8,648 9.7%45,812 18,565 12.4%48,840 9,917 114.7%3,028 6.6% Total 89,064 100.0%72,996 149,650 100.0%62,122 60,586 68.0%(10,874) -14.9% Source: Quarterly Workforce Indicators (Private Sector), Quarterly Census of Wages and Employment (Public Sector) 2000 2014 Jobs Average Wage Change Loudoun County Housing Needs Assessment Appendix EIId E.II.d. Common Occupation By Sector, 2012-2014 Average Jobs Located in Loudoun County, Virginia Sector Occupation Share of Employment Occupation Share of Employment Natural resources & mining Farmers, ranchers, & other agricultural managers 35.4%Management 46.5% Construction Construction laborers 11.9%Construction & Extraction 60.1% Manufacturing Miscellaneous managers 9.7%Management 21.5% Wholesale Trade Sales representatives, wholesale & manufacturing 32.5%Sales & Related 45.2% Retail Trade Retail salespersons 21.5%Sales & Related 59.0% Transportation & Utilities Flight attendants 12.3%Transportation & Material Moving 48.6% Information Network & computer systems administrators 5.9%Computer & mathematical 21.6% Financial activities Financial managers 13.2%Management 28.2% Professional & business services Miscellaneous managers 8.4%Computer & mathematical 22.7% Education & health services Registered nurses 9.4%Healthcare Practitioners & Technical 25.8% Leisure & hospitality Waiters & waitresses 16.4%Food Preparation & Serving Related 48.7% Other services Childcare workers 9.8%Personal Care & Service 30.5% Federal Government Security guards & gaming surveillance officers 6.1%Office & Administrative Support 21.2% State & Local Government Elementary & middle school teachers 26.0%Education, Training, & Library 43.6% All Jobs Miscellaneous managers 4.1%Management 13.8% Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average Most Common Detailed Occupation Most Common Major Occupation Group Loudoun County Housing Needs Assessment Appendix EIIe E.II.e. Workers By Age Group Hold Private Sector Job in Loudoun County, Virginia Workers Year <25 25-34 35-44 45-54 55-64 65+Total 2000 11,574 21,784 21,946 13,369 5,805 1,672 76,150 7,478 2001 13,087 25,471 25,068 15,273 6,544 1,946 87,388 8,490 2002 12,361 24,224 24,451 15,206 6,936 1,981 85,158 8,917 2003 12,617 23,715 24,814 15,961 7,423 2,135 86,665 9,558 2004 14,148 25,205 26,140 17,443 8,070 2,390 93,396 10,460 2005 16,010 26,738 28,202 19,849 9,333 2,928 103,060 12,261 2006 16,481 26,822 29,370 21,807 10,328 3,360 108,169 13,688 2007 16,589 27,097 29,712 23,081 11,111 3,602 111,192 14,713 2008 16,552 27,022 29,602 24,455 11,963 3,934 113,528 15,897 2009 15,354 25,711 28,686 24,977 12,288 3,960 110,976 16,248 2010 15,161 25,847 28,574 26,095 13,125 4,279 113,080 17,404 2011 15,887 26,537 29,117 27,459 14,430 4,787 118,216 19,217 2012 15,867 26,491 29,107 28,340 15,538 5,363 120,706 20,902 2013 16,421 27,215 29,997 29,017 16,515 5,915 125,080 22,429 2014 16,438 27,237 30,089 29,650 17,523 6,335 127,270 23,858 Source: Quarterly Workforce Indicators Share of Total Year <25 25-34 35-44 45-54 55-64 65+Total 2000 15.2%28.6%28.8%17.6%7.6%2.2%100.0%9.8% 2001 15.0%29.1%28.7%17.5%7.5%2.2%100.0%9.7% 2002 14.5%28.4%28.7%17.9%8.1%2.3%100.0%10.5% 2003 14.6%27.4%28.6%18.4%8.6%2.5%100.0%11.0% 2004 15.1%27.0%28.0%18.7%8.6%2.6%100.0%11.2% 2005 15.5%25.9%27.4%19.3%9.1%2.8%100.0%11.9% 2006 15.2%24.8%27.2%20.2%9.5%3.1%100.0%12.7% 2007 14.9%24.4%26.7%20.8%10.0%3.2%100.0%13.2% 2008 14.6%23.8%26.1%21.5%10.5%3.5%100.0%14.0% Loudoun County Housing Needs Assessment Appendix EIIe 2009 13.8%23.2%25.8%22.5%11.1%3.6%100.0%14.6% 2010 13.4%22.9%25.3%23.1%11.6%3.8%100.0%15.4% 2011 13.4%22.4%24.6%23.2%12.2%4.0%100.0%16.3% 2012 13.1%21.9%24.1%23.5%12.9%4.4%100.0%17.3% 2013 13.1%21.8%24.0%23.2%13.2%4.7%100.0%17.9% 2014 12.9%21.4%23.6%23.3%13.8%5.0%100.0%18.7% Source: Quarterly Workforce Indicators Loudoun County Housing Needs Assessment Appendix EIIf E.II.f. Workers By Age Group, Comparison with Washington DC Metropolitan Area, 2006 & 2014 Private Sector Jobs Share of Workers Place of Work Washington Loudoun Difference (Pct. Pts.)Washington Loudoun Difference (Pct. Pts.)Washington Loudoun Difference (Pct. Pts.) <25 14.3%15.2%0.9%11.7%12.9%1.2%-2.6%-2.3%0.3% 25-34 24.4%24.8%0.4%23.6%21.4%-2.2%-0.7%-3.4%-2.7% 35-44 25.3%27.2%1.9%22.4%23.6%1.2%-2.9%-3.5%-0.6% 45-54 21.2%20.2%-1.1%22.2%23.3%1.1%1.0%3.1%2.1% 55-64 11.4%9.5%-1.8%14.6%13.8%-0.9%3.3%4.2%1.0% 65+3.4%3.1%-0.3%5.4%5.0%-0.4%2.0%1.9%-0.1% Source: Quarterly Workforce Indicators 2006 2014 2006-2014 Change (Pct. Pts.) Loudoun County Housing Needs Assessment Appendix EIIg E.II.g. Place of Residence for Workers over 16 Years Old, 2009-2013 Average Select Jurisdictions Place of Work # of Workers Share of Workers # of Workers Share of Workers # of Workers Share of Workers # of Workers Share of Workers # of Workers Share of Workers Residence Same County 80,274 56.6%45,721 23.8%314,595 53.0%76,431 59.0%310,261 63.9% Elsewhere in Washington DC Metropolitan Area 50,165 35.3%135,350 70.6%255,137 43.0%47,813 36.9%125,888 25.9% Virginia 39,386 27.8%89,889 46.9%198,559 33.4%45,968 35.5%30,396 6.3% Maryland 5,746 4.0%30,855 16.1%43,462 7.3%1,435 1.1%73,663 15.2% West Virginia 4,055 2.9%278 0.1%1,366 0.2%186 0.1%1,344 0.3% D.C.978 0.7%14,328 7.5%11,750 2.0%224 0.2%20,485 4.2% Elsewhere in Virginia 5,181 3.7%1,584 0.8%7,633 1.3%3,417 2.6%1,033 0.2% Elsewhere in West Virginia 2,004 1.4%182 0.1%1,146 0.2%198 0.2%1,577 0.3% Elsewhere in Maryland 1,848 1.3%5,741 3.0%6,934 1.2%346 0.3%40,097 8.3% Other 2,445 1.7%3,128 1.6%8,383 1.4%1,343 1.0%6,924 1.4% Total 141,917 100.0%191,706 100.0%593,828 100.0%129,548 100.0%485,780 100.0% Source: 2009-2013 American Community Survey, 5-year average Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Loudoun County Housing Needs Assessment Appendix EIIg # of Workers Share of Workers 70,661 67.4% 9,435 9.0% 1,216 1.2% 6,388 6.1% 1,712 1.6% 119 0.1% 354 0.3% 1,979 1.9% 15,742 15.0% 6,673 6.4% 104,844 100.0% Frederick County, MD Loudoun County Housing Needs Assessment Appendix EIIh E.II.h. Share of Residents Holding At-Place Jobs, 2012-2014 Average Select Jurisdictions Loudoun County, VA Arlington County, VA Fairfax County, VA* Prince William County, VA** Montgomery County, MD Frederick County, MD Natural resources and mining 71%17%44%81%82%58% Construction 30%28%44%55%51%55% Manufacturing 40%36%43%57%63%61% Wholesale Trade 41%43%50%46%55%56% Retail Trade 70%24%64%77%68%77% Transportation and Utilities 33%9%39%60%56%57% Information 40%26%45%58%49%71% Financial activities 63%26%52%59%61%56% Professional and business services 56%23%49%62%62%65% Education and health services 64%25%56%65%64%75% Leisure and hospitality 73%38%68%83%77%84% Other services 67%26%64%71%74%73% Federal Government 45%16%43%39%57%64% State & Local Government 69%33%61%68%70%74% Total 56%24%53%63%64%69% *includes the cities of Fairfax and Falls Church **includes the cities of Manassas and Manassas Park Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average Loudoun County Housing Needs Assessment Appendix EIIi E.II.i. Percent of At-Place Employment Held by Non-Residents, 2012-2014 Average Select Jurisdictions Loudoun County, VA Arlington County, VA Fairfax County, VA* Prince William County, VA** Montgomery County, MD Frederick County, MD Natural resources and mining 29%83%56%19%18%42% Construction 70%72%56%45%49%45% Manufacturing 60%64%57%43%37%39% Wholesale Trade 59%57%50%54%45%44% Retail Trade 30%76%36%23%32%23% Transportation and Utilities 67%91%61%40%44%43% Information 60%74%55%42%51%29% Financial activities 37%74%48%41%39%44% Professional and business services 44%77%51%38%38%35% Education and health services 36%75%44%35%36%25% Leisure and hospitality 27%62%32%17%23%16% Other services 33%74%36%29%26%27% Federal Government 55%84%57%61%43%36% State & Local Government 31%67%39%32%30%26% Total 44%76%47%37%36%31% *includes the cities of Fairfax and Falls Church **includes the cities of Manassas and Manassas Park Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average Loudoun County Housing Needs Assessment Appendix EIIj E.II.j. Mode of Commute to Work for Workers over 16 Years Old, 2014 Select Jurisdictions Workers by Place of Work Mode Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area Drove alone 129,444 99,053 492,716 114,634 352,845 80,996 2,194,432 Carpooled 17,285 17,432 57,223 15,131 51,843 12,300 318,019 Public Transportation 2,207 43,006 19,463 2,895 54,170 1,166 473,409 Bicycled 419 1,226 1,663 342 2,160 446 25,994 Walked 3,183 6,492 9,577 2,808 9,329 2,616 100,060 Other 1,348 1,643 6,915 1,008 3,858 626 33,990 Worked at Home 12,245 10,600 36,054 6,888 30,211 8,017 159,705 Total 166,131 179,452 623,611 143,706 504,416 106,167 3,305,609 Source: 2014 American Community Survey, 1-year file As a Share of Total Mode Loudoun County, VA Arlington County, VA Fairfax County, VA Prince William County, VA Montgomery County, MD Frederick County, MD Washington DC Metropolitan Area Drove alone 77.9%55.2%79.0%79.8%70.0%76.3%66.4% Carpooled 10.4%9.7%9.2%10.5%10.3%11.6%9.6% Public Transportation 1.3%24.0%3.1%2.0%10.7%1.1%14.3% Bicycled 0.3%0.7%0.3%0.2%0.4%0.4%0.8% Walked 1.9%3.6%1.5%2.0%1.8%2.5%3.0% Other 0.8%0.9%1.1%0.7%0.8%0.6%1.0% Worked at Home 7.4%5.9%5.8%4.8%6.0%7.6%4.8% Total 100.0%100.0%100.0%100.0%100.0%100.0%100.0% Source: 2014 American Community Survey, 1-year file Loudoun County Housing Needs Assessment Appendix EIIIa E.III.a. Resident Workers by Sector, 2012-2014 Average Residents of Loudoun County, Virginia Year # of Workers % of Total Natural resources and mining 632 0.4% Construction 7,545 4.2% Manufacturing 8,601 4.8% Wholesale Trade 2,511 1.4% Retail Trade 17,939 10.0% Transportation and Utilities 5,400 3.0% Information 7,283 4.1% Financial activities 11,141 6.2% Professional and business services 43,340 24.2% Education and health services 19,646 11.0% Leisure and hospitality 13,541 7.6% Other services 7,608 4.2% Federal Government 16,800 9.4% State & Local Government 17,094 9.5% Total 179,081 100.0% Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average Loudoun County Housing Needs Assessment Appendix EIIIb E.III.b. Median Wage for Resident Workers by Sector, 2012-2014 Average, 2015 $s Residents of Loudoun County, Virginia Year Median Wage Natural resources and mining 51,288 Construction 52,140 Manufacturing 92,318 Wholesale Trade 55,623 Retail Trade 24,272 Transportation and Utilities 45,509 Information 101,132 Financial activities 80,906 Professional and business services 97,447 Education and health services 40,149 Leisure and hospitality 20,515 Other services 40,453 Federal Government 105,323 State & Local Government 48,211 Total 61,525 Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average Loudoun County Housing Needs Assessment Appendix EIIIc E.III.c. Resident Workers Age Group, 2012-2014 Average Residents of Loudoun County, Virginia Year # of Workers % of Total <25 17,938 10.0% 25-34 36,515 20.4% 35-44 51,982 29.0% 45-54 44,998 25.1% 55-64 21,722 12.1% 65+5,927 3.3% Total 179,081 100.0% Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average Loudoun County Housing Needs Assessment Appendix EIIId E.III.d. Place of Work for Resident Workers over 16 Years Old, 2009-2013 Average Select Jurisdictions Place of Residence # of Workers Share of Workers # of Workers Share of Workers # of Workers Share of Workers # of Workers Share of Workers # of Workers Share of Workers Place of Work Same County 80,274 46.8%45,721 33.1%314,595 53.2%76,431 35.6%310,261 59.6% Elsewhere in Washington DC Metropolitan Area 87,960 51.3%90,228 65.3%265,687 45.0%135,340 63.0%184,579 35.5% Virginia 72,895 42.5%34,822 25.2%142,565 24.1%107,411 50.0%36,823 7.1% D.C.9,841 5.7%48,944 35.4%95,323 16.1%22,033 10.2%111,136 21.4% Maryland 5,098 3.0%6,462 4.7%27,782 4.7%5,809 2.7%36,548 7.0% West Virginia 126 0.1%- 0.0%17 0.0%87 0.0%72 0.0% Elsewhere in Virginia 839 0.5%423 0.3%2,313 0.4%816 0.4%538 0.1% Elsewhere in Maryland 903 0.5%756 0.5%3,717 0.6%1,098 0.5%20,737 4.0% Elsewhere in West Virginia 66 0.0%- 0.0%145 0.0%24 0.0%126 0.0% Other 1,329 0.8%1,033 0.7%4,599 0.8%1,256 0.6%3,984 0.8% Total 171,371 100.0%138,161 100.0%591,056 100.0%214,965 100.0%520,225 100.0% Source: 2009-2013 American Community Survey, 5-year average Loudoun, VA Arlington, VA Fairfax, VA Prince William, VA Montgomery, MD Loudoun County Housing Needs Assessment Appendix EIIId # of Workers Share of Workers 70,661 57.7% 37,378 30.5% 5,560 4.5% 4,230 3.5% 27,195 22.2% 393 0.3% 324 0.3% 11,863 9.7% 216 0.2% 2,071 1.7% 122,513 100.0% Frederick, MD Loudoun County Housing Needs Assessment Appendix EIIIe E.III.e. Mode of Commute to Work for Resident Workers over 16 Years Old, 2014 Select Jurisdictions Workers by Place of Residence Mode Loudoun, VA Arlington, VA Fairfax, VA Prince William, VA Montgomery, MD Frederick, MD Washington DC Metropolitan Area Drove alone 146,226 77,513 431,199 173,549 343,435 97,677 2,083,081 Carpooled 16,144 7,711 55,535 32,316 56,746 13,763 305,011 Public Transportation 8,623 37,754 61,305 11,665 87,252 4,326 450,131 Bicycled 256 2,648 1,935 291 3,677 505 25,698 Walked 3,312 5,450 10,670 2,371 9,477 2,638 98,391 Other 1,186 1,573 6,521 2,081 4,579 1,111 30,724 Worked at Home 12,245 10,600 36,054 6,888 30,211 8,017 159,705 Total 187,992 143,249 603,219 229,161 535,377 128,037 3,152,741 Source: 2014 American Community Survey, 1-year file As a Share of Total Mode Loudoun, VA Arlington, VA Fairfax, VA Prince William, VA Montgomery, MD Frederick, MD Washington DC Metropolitan Area Drove alone 77.8%54.1%71.5%75.7%64.1%76.3%66.1% Carpooled 8.6%5.4%9.2%14.1%10.6%10.7%9.7% Public Transportation 4.6%26.4%10.2%5.1%16.3%3.4%14.3% Bicycled 0.1%1.8%0.3%0.1%0.7%0.4%0.8% Walked 1.8%3.8%1.8%1.0%1.8%2.1%3.1% Other 0.6%1.1%1.1%0.9%0.9%0.9%1.0% Worked at Home 6.5%7.4%6.0%3.0%5.6%6.3%5.1% Total 100.0%100.0%100.0%100.0%100.0%100.0%100.0% Source: 2014 American Community Survey, 1-year file Loudoun County Housing Needs Assessment Appendix EIIIf E.III.f. Employment Rate by Age Group, 2012-2014 Average Includes wage and salary employment, self-employment, employment in a family business and internships/volunterism without pay Place of Residence Loudoun County, VA Arlington County, VA Fairfax County, VA* Prince William County, VA** Montgomery County, MD FrederickC ounty, MD 16-24 55.5%63.5%49.8%55.1%46.9%56.7% 25-34 84.2%87.7%83.6%82.5%82.2%84.0% 35-44 84.9%86.6%84.1%82.9%84.1%85.1% 45-54 85.2%83.6%84.1%84.1%85.5%82.9% 55-64 71.2%69.9%73.6%72.0%74.7%71.0% 65+26.6%25.0%25.1%22.5%25.7%20.8% Total 73.5%75.4%69.4%70.9%67.9%67.7% *Includes the cities of Fairfax and Falls Church **Includes the cities of Manassas and Manassas Park Source: 2012, 2013 and 2014 American Community Surveys, 1-year public use microdata sample (PUMS) files, average Loudoun County Housing Needs Assessment Appendix - Forecasts I I. Jobs by Sector, Loudoun County, 2015-2040 2015 2020 2025 2030 2035 2040 Construction, Natural Resources, & Mining 14,350 18,009 19,092 20,290 20,362 20,754 Manufacturing 5,803 6,182 6,300 6,312 6,232 6,092 Transportation, Trade, & Utilities 32,818 35,584 37,473 39,662 40,735 40,916 Information 7,609 8,584 10,405 11,832 13,413 14,508 Financial Activities 5,142 5,326 5,900 6,513 7,149 7,647 Professional & Business Services 31,496 39,348 48,876 59,548 69,754 81,183 Education & Health Services 15,794 18,353 20,742 22,889 24,661 25,862 Leisure & Hospitality 17,365 19,894 21,543 23,312 25,092 26,585 Other Services 6,504 6,872 7,605 8,600 9,119 9,607 Federal Government 3,808 3,706 3,950 4,344 4,508 4,697 State & Local Government 19,569 21,628 24,047 26,545 28,439 29,473 Military 1,114 1,133 1,152 1,148 1,143 1,142 Total, non-Military 160,258 183,486 205,934 229,846 249,463 267,324 Total 161,372 184,620 207,087 230,994 250,607 268,466 Source: IHS Economics, Loudoun County Department of Planning and Zoning, GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts II II. Jobs by Occupation, Loudoun County, 2015-2040 2015 2020 2025 2030 2035 2040 Management Occupations 22,072 25,210 28,182 31,295 33,805 36,188 Business and Financial Operations Occupations 7,963 9,750 11,864 14,240 16,534 18,956 Computer and mathematical occupations 11,794 13,656 15,969 18,327 20,378 22,410 Architecture and Engineering Occupations 4,508 4,997 5,533 6,067 6,502 6,934 Life, Physical, and Social Science Occupations 1,428 1,789 2,227 2,715 3,171 3,644 Community and Social Service Occupations 1,747 1,999 2,311 2,656 2,942 3,180 Legal Occupations 1,348 1,853 2,527 3,347 4,232 5,255 Education, Training, and Library Occupations 12,066 13,072 14,107 15,042 15,581 15,649 Arts, Design, Entertainment, Sports, and Media Occupations 2,126 2,956 4,016 5,238 6,576 7,960 Healthcare Practitioners and Technical Occupations 5,694 6,586 7,459 8,292 8,982 9,499 Healthcare Support Occupations 2,340 2,635 2,904 3,135 3,299 3,388 Protective Service Occupations 3,986 4,588 5,338 6,187 6,945 7,676 Food Preparation and Serving Related Occupations 9,605 11,054 12,086 13,195 14,286 15,205 Building and Grounds Cleaning and Maintenance Occupations 5,553 6,482 7,500 8,624 9,633 10,668 Personal Care and Service Occupations 5,630 5,862 6,059 6,244 6,187 5,993 Sales and Related Occupations 19,014 20,973 22,701 24,492 25,728 26,433 Office and Administrative Support Occupations 16,146 18,760 21,621 24,778 27,595 30,236 Farming, Fishing, and Forestry Occupations 308 382 415 453 473 501 Construction and Extraction Occupations 9,257 11,535 12,376 13,302 13,546 13,953 Installation, Maintenance, and Repair Occupations 5,388 5,966 6,481 6,988 7,265 7,434 Production Occupations 3,018 3,418 3,794 4,183 4,483 4,740 Transportation and Material Moving Occupations 9,268 9,966 10,465 11,046 11,321 11,422 Total, non-Military 160,258 183,486 205,934 229,846 249,463 267,324 Source: IHS Economics, Loudoun County Department of Planning and Zoning, GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts III III. Households by Age of Householder, Loudoun County, 2015-2040 2015 2020 2025 2030 2035 2040 <35 19,795 27,936 34,591 33,274 32,684 30,807 35-44 34,186 37,043 39,829 48,544 55,224 53,793 45-54 31,805 33,124 34,676 37,137 39,255 47,056 55-64 19,596 20,672 21,517 22,835 23,983 26,183 65+15,718 17,493 20,001 22,673 24,817 27,618 Total 121,100 136,269 150,615 164,463 175,964 185,456 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts IV IV. Households by Labor Force Participation Status, Loudoun County, 2015-2040 2015 2020 2025 2030 2035 2040 Household has a worker with a payroll job 105,857 119,416 130,838 142,666 152,593 161,301 Household does not have a worker with a payroll job 15,243 16,853 19,777 21,797 23,371 24,155 Total 121,100 136,269 150,615 164,463 175,964 185,456 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts V V. Households by Disability Status, Loudoun County, 2015-2040 2015 2020 2025 2030 2035 2040 No member of the household has a disability 104,566 118,751 131,452 143,284 153,098 160,711 1+ members of the household has/have a disability 16,534 17,518 19,163 21,178 22,866 24,745 Total 121,100 136,269 150,615 164,463 175,964 185,456 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts VI VI. Households by Household Size, Loudoun County, 2015-2040 2015 2020 2025 2030 2035 2040 1 Person 20,696 23,250 26,305 29,134 31,438 33,981 2 People 33,915 37,882 41,785 44,912 47,465 50,521 3 People 23,415 26,517 29,299 31,553 33,469 35,198 4+ People 43,074 48,620 53,226 58,864 63,592 65,756 Total 121,100 136,269 150,615 164,463 175,964 185,456 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts VII VII. Households by Unit Type, Loudoun County, 2015-2040 2015 2020 2025 2030 2035 2040 Single-Family Detached, Owner 59,683 67,340 74,412 80,849 86,246 90,360 Single-Family Detached, Renter 5,425 5,957 6,440 6,879 7,234 7,532 Single-Family Attached, Owner 29,247 33,143 36,734 40,415 43,468 46,178 Single-Family Attached, Renter 8,681 9,601 10,585 11,678 12,559 13,145 Multi-Family, Owner 4,298 4,903 5,556 6,230 6,804 7,340 Multi-Family, Renter 13,766 15,325 16,887 18,413 19,653 20,901 Total 121,100 136,269 150,615 164,463 175,964 185,456 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts VIII VIII. Households by Area Median Income Group, Loudoun County, 2015-2040 2015 2020 2025 2030 2035 2040 <30% AMI 8,092 8,607 9,570 10,328 10,919 11,291 30-49% AMI 8,219 8,964 9,828 10,657 11,293 11,689 50-59% AMI 5,557 6,316 6,975 7,699 8,250 8,673 60-69% AMI 5,414 5,994 6,533 6,980 7,334 7,635 70-79% AMI 5,617 6,304 6,914 7,443 7,845 8,125 80-99% AMI 12,220 13,658 14,905 16,133 17,152 17,907 100-119% AMI 12,815 14,396 15,835 17,238 18,396 19,268 120-149% AMI 16,106 18,048 19,799 21,477 22,853 23,996 150%+ AMI 47,061 53,982 60,257 66,507 71,922 76,871 Total 121,100 136,269 150,615 164,463 175,964 185,456 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts VIIIa VIII.a. Households by Area Median Income Group and Age of Householder, Loudoun County, 2015-2040 Householder Under 35 Years Old 2015 2020 2025 2030 2035 2040 <30% AMI 1,928 2,103 2,328 2,257 2,217 2,121 30-49% AMI 1,766 2,162 2,416 2,300 2,266 2,164 50-59% AMI 1,010 1,370 1,631 1,564 1,540 1,447 60-69% AMI 1,344 1,607 1,803 1,735 1,709 1,634 70-79% AMI 1,192 1,556 1,843 1,773 1,728 1,621 80-99% AMI 2,517 3,258 3,808 3,644 3,598 3,426 100-119% AMI 2,456 3,318 3,990 3,826 3,751 3,534 120-149% AMI 2,650 3,749 4,643 4,465 4,372 4,107 150%+ AMI 4,934 8,813 12,128 11,710 11,503 10,753 Total 19,795 27,936 34,591 33,274 32,684 30,807 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Householder Between 35 and 44 Years Old 2015 2020 2025 2030 2035 2040 <30% AMI 1,138 1,149 1,209 1,523 1,732 1,647 30-49% AMI 2,185 2,283 2,389 2,873 3,172 3,027 50-59% AMI 1,478 1,583 1,672 2,096 2,384 2,283 60-69% AMI 1,126 1,161 1,237 1,493 1,673 1,608 70-79% AMI 1,532 1,623 1,720 2,060 2,301 2,224 80-99% AMI 3,440 3,754 4,029 4,877 5,509 5,345 100-119% AMI 4,243 4,546 4,843 5,779 6,481 6,290 120-149% AMI 4,998 5,405 5,766 6,865 7,700 7,503 150%+ AMI 14,048 15,540 16,964 20,978 24,272 23,865 Total 34,186 37,043 39,829 48,544 55,224 53,793 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Householder Between 45 and 54 Years Old 2015 2020 2025 2030 2035 2040 <30% AMI 1,563 1,420 1,467 1,512 1,549 1,858 30-49% AMI 1,233 1,230 1,284 1,358 1,417 1,773 50-59% AMI 914 987 1,042 1,133 1,206 1,568 60-69% AMI 1,022 1,089 1,137 1,207 1,264 1,538 70-79% AMI 1,076 1,124 1,183 1,274 1,351 1,640 Loudoun County Housing Needs Assessment Appendix - Forecasts VIIIa VIII.a. Households by Area Median Income Group and Age of Householder, Loudoun County, 2015-2040 80-99% AMI 2,914 3,016 3,155 3,374 3,559 4,258 100-119% AMI 3,207 3,271 3,428 3,686 3,902 4,686 120-149% AMI 4,705 4,936 5,145 5,453 5,722 6,687 150%+ AMI 15,172 16,051 16,835 18,138 19,285 23,049 Total 31,805 33,124 34,676 37,137 39,255 47,056 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts VIIIa VIII.a. Households by Area Median Income Group and Age of Householder, Loudoun County, 2015-2040 Householder Between 55 and 64 Years Old 2015 2020 2025 2030 2035 2040 <30% AMI 1,074 1,234 1,315 1,303 1,301 1,316 30-49% AMI 1,062 1,173 1,226 1,251 1,273 1,325 50-59% AMI 1,121 1,105 1,134 1,194 1,242 1,333 60-69% AMI 866 918 959 995 1,026 1,092 70-79% AMI 920 986 1,032 1,080 1,123 1,209 80-99% AMI 1,768 1,921 2,002 2,114 2,208 2,389 100-119% AMI 1,545 1,705 1,782 1,906 2,011 2,216 120-149% AMI 2,499 2,563 2,655 2,857 3,033 3,350 150%+ AMI 8,740 9,067 9,413 10,134 10,767 11,952 Total 19,596 20,672 21,517 22,835 23,983 26,183 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Householder 65 Years Old or Older 2015 2020 2025 2030 2035 2040 <30% AMI 2,389 2,701 3,251 3,733 4,121 4,348 30-49% AMI 1,973 2,116 2,513 2,876 3,165 3,401 50-59% AMI 1,034 1,270 1,496 1,711 1,877 2,042 60-69% AMI 1,056 1,220 1,396 1,550 1,662 1,764 70-79% AMI 898 1,015 1,136 1,256 1,342 1,432 80-99% AMI 1,581 1,709 1,910 2,123 2,278 2,489 100-119% AMI 1,364 1,556 1,792 2,041 2,252 2,542 120-149% AMI 1,255 1,395 1,589 1,836 2,026 2,349 150%+ AMI 4,167 4,511 4,917 5,547 6,095 7,251 Total 15,718 17,493 20,001 22,673 24,817 27,618 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts VIIIb VIII.b. Households by Area Median Income Group and Labor Force Participation Status, Loudoun County, 2015-2040 Household has a worker with a payroll job 2015 2020 2025 2030 2035 2040 <30% AMI 4,124 4,500 4,784 5,113 5,355 5,522 30-49% AMI 5,825 6,407 6,807 7,278 7,626 7,847 50-59% AMI 4,580 5,114 5,532 6,063 6,468 6,813 60-69% AMI 4,354 4,784 5,120 5,449 5,719 5,992 70-79% AMI 4,964 5,533 6,001 6,442 6,786 7,059 80-99% AMI 10,872 12,119 13,123 14,196 15,107 15,826 100-119% AMI 11,587 13,032 14,213 15,449 16,465 17,275 120-149% AMI 14,951 16,767 18,306 19,831 21,101 22,192 150%+ AMI 44,600 51,160 56,951 62,844 67,966 72,775 Total 105,857 119,416 130,838 142,666 152,593 161,301 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Household does not have a worker with a payroll job 2015 2020 2025 2030 2035 2040 <30% AMI 3,968 4,107 4,786 5,215 5,564 5,769 30-49% AMI 2,394 2,557 3,021 3,379 3,667 3,842 50-59% AMI 977 1,202 1,442 1,636 1,783 1,860 60-69% AMI 1,060 1,210 1,412 1,531 1,615 1,644 70-79% AMI 654 771 913 1,001 1,059 1,067 80-99% AMI 1,348 1,538 1,781 1,938 2,045 2,081 100-119% AMI 1,228 1,364 1,622 1,788 1,930 1,993 120-149% AMI 1,154 1,282 1,493 1,646 1,752 1,804 150%+ AMI 2,461 2,822 3,306 3,663 3,956 4,096 Total 15,243 16,853 19,777 21,797 23,371 24,155 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts VIIIc VIII.c. Households by Area Median Income Group and Disability Status, Loudoun County, 2015-2040 No member of the household has a disability 2015 2020 2025 2030 2035 2040 <30% AMI 6,032 6,696 7,450 8,024 8,452 8,667 30-49% AMI 6,533 7,132 7,750 8,306 8,727 8,935 50-59% AMI 4,426 5,071 5,602 6,120 6,514 6,803 60-69% AMI 4,256 4,816 5,268 5,628 5,913 6,135 70-79% AMI 4,894 5,545 6,094 6,572 6,935 7,142 80-99% AMI 10,734 12,062 13,166 14,246 15,136 15,759 100-119% AMI 11,108 12,583 13,849 15,063 16,051 16,728 120-149% AMI 14,437 16,186 17,757 19,224 20,430 21,441 150%+ AMI 42,148 48,659 54,516 60,101 64,939 69,101 Total 104,566 118,751 131,452 143,284 153,098 160,711 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC 1+ members of the household has/have a disability 2015 2020 2025 2030 2035 2040 <30% AMI 2,060 1,911 2,120 2,304 2,467 2,623 30-49% AMI 1,686 1,832 2,078 2,351 2,565 2,754 50-59% AMI 1,131 1,245 1,373 1,579 1,737 1,871 60-69% AMI 1,158 1,178 1,265 1,352 1,421 1,501 70-79% AMI 724 758 820 871 911 983 80-99% AMI 1,486 1,596 1,739 1,888 2,016 2,148 100-119% AMI 1,706 1,813 1,986 2,174 2,345 2,540 120-149% AMI 1,669 1,862 2,041 2,253 2,423 2,555 150%+ AMI 4,913 5,322 5,741 6,406 6,982 7,770 Total 16,534 17,518 19,163 21,178 22,866 24,745 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts VIIId VIII.d. Households by Area Median Income Group and Household Size, Loudoun County, 2015-2040 One Person 2015 2020 2025 2030 2035 2040 <30% AMI 3,748 3,946 4,544 4,991 5,340 5,589 30-49% AMI 2,246 2,419 2,760 3,040 3,258 3,464 50-59% AMI 1,389 1,570 1,793 2,053 2,257 2,426 60-69% AMI 1,479 1,686 1,881 2,051 2,179 2,336 70-79% AMI 1,103 1,230 1,407 1,556 1,674 1,776 80-99% AMI 2,332 2,733 3,056 3,353 3,590 3,861 100-119% AMI 1,718 2,045 2,312 2,601 2,854 3,120 120-149% AMI 2,384 2,744 3,067 3,386 3,655 4,009 150%+ AMI 4,295 4,878 5,487 6,103 6,631 7,400 Total 20,696 23,250 26,305 29,134 31,438 33,981 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Two People 2015 2020 2025 2030 2035 2040 <30% AMI 1,621 1,722 1,886 1,986 2,072 2,148 30-49% AMI 1,681 1,803 2,024 2,194 2,333 2,451 50-59% AMI 1,463 1,712 1,897 2,046 2,152 2,269 60-69% AMI 1,534 1,680 1,833 1,952 2,052 2,127 70-79% AMI 1,650 1,868 2,008 2,108 2,182 2,259 80-99% AMI 2,891 3,172 3,463 3,692 3,870 4,061 100-119% AMI 3,984 4,324 4,742 5,060 5,306 5,575 120-149% AMI 4,324 4,802 5,299 5,725 6,050 6,420 150%+ AMI 14,769 16,798 18,633 20,147 21,449 23,211 Total 33,915 37,882 41,785 44,912 47,465 50,521 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Three People 2015 2020 2025 2030 2035 2040 <30% AMI 1,107 1,167 1,253 1,312 1,358 1,390 30-49% AMI 1,178 1,333 1,438 1,511 1,568 1,603 50-59% AMI 993 1,100 1,206 1,296 1,367 1,432 60-69% AMI 817 950 1,045 1,109 1,158 1,186 70-79% AMI 913 992 1,094 1,168 1,219 1,259 Loudoun County Housing Needs Assessment Appendix - Forecasts VIIId VIII.d. Households by Area Median Income Group and Household Size, Loudoun County, 2015-2040 80-99% AMI 1,697 1,818 1,960 2,072 2,171 2,245 100-119% AMI 2,280 2,585 2,852 3,074 3,254 3,376 120-149% AMI 3,257 3,626 3,959 4,209 4,426 4,615 150%+ AMI 11,175 12,945 14,491 15,803 16,948 18,092 Total 23,415 26,517 29,299 31,553 33,469 35,198 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts VIIId VIII.d. Households by Area Median Income Group and Household Size, Loudoun County, 2015-2040 Four People or More 2015 2020 2025 2030 2035 2040 <30% AMI 1,616 1,773 1,887 2,039 2,149 2,164 30-49% AMI 3,114 3,410 3,607 3,913 4,134 4,171 50-59% AMI 1,712 1,934 2,080 2,304 2,474 2,546 60-69% AMI 1,584 1,678 1,773 1,867 1,945 1,986 70-79% AMI 1,952 2,214 2,405 2,611 2,770 2,831 80-99% AMI 5,301 5,933 6,427 7,017 7,521 7,741 100-119% AMI 4,833 5,442 5,928 6,503 6,982 7,198 120-149% AMI 6,140 6,876 7,473 8,157 8,722 8,952 150%+ AMI 16,821 19,360 21,645 24,454 26,894 28,167 Total 43,074 48,620 53,226 58,864 63,592 65,756 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts VIIIe VIII.e. Households by Area Median Income Group and Unit Type, Loudoun County, 2015-2040 Single-Family Detached, Owner 2015 2020 2025 2030 2035 2040 <30% AMI 2,190 2,420 2,741 2,982 3,175 3,304 30-49% AMI 2,476 2,754 3,020 3,195 3,325 3,404 50-59% AMI 1,414 1,639 1,822 1,952 2,049 2,107 60-69% AMI 2,306 2,588 2,847 3,038 3,184 3,285 70-79% AMI 1,791 2,080 2,286 2,448 2,565 2,621 80-99% AMI 4,759 5,206 5,645 6,037 6,352 6,543 100-119% AMI 5,221 5,803 6,288 6,653 6,943 7,110 120-149% AMI 7,514 8,304 9,078 9,799 10,388 10,768 150%+ AMI 32,013 36,545 40,685 44,745 48,266 51,217 Total 59,683 67,340 74,412 80,849 86,246 90,360 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Single-Family Detached, Renter 2015 2020 2025 2030 2035 2040 <30% AMI 746 813 884 908 920 922 30-49% AMI 948 957 1,006 1,031 1,048 1,046 50-59% AMI 477 494 524 563 594 632 60-69% AMI 228 264 282 298 313 321 70-79% AMI 511 589 643 693 732 760 80-99% AMI 730 814 889 970 1,034 1,082 100-119% AMI 369 413 451 493 529 565 120-149% AMI 483 532 559 580 601 626 150%+ AMI 934 1,081 1,203 1,343 1,463 1,578 Total 5,425 5,957 6,440 6,879 7,234 7,532 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Single-Family Attached, Owner 2015 2020 2025 2030 2035 2040 <30% AMI 1,161 1,201 1,306 1,395 1,462 1,535 30-49% AMI 1,579 1,560 1,731 1,904 2,040 2,126 50-59% AMI 1,274 1,465 1,617 1,803 1,936 2,009 60-69% AMI 949 1,072 1,160 1,225 1,279 1,320 70-79% AMI 1,287 1,496 1,673 1,835 1,962 2,052 Loudoun County Housing Needs Assessment Appendix - Forecasts VIIIe VIII.e. Households by Area Median Income Group and Unit Type, Loudoun County, 2015-2040 80-99% AMI 3,448 3,865 4,200 4,555 4,853 5,081 100-119% AMI 4,347 5,047 5,630 6,261 6,782 7,173 120-149% AMI 5,067 5,721 6,293 6,863 7,330 7,763 150%+ AMI 10,135 11,716 13,125 14,573 15,824 17,120 Total 29,247 33,143 36,734 40,415 43,468 46,178 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts VIIIe VIII.e. Households by Area Median Income Group and Unit Type, Loudoun County, 2015-2040 Single-Family Attached, Renter 2015 2020 2025 2030 2035 2040 <30% AMI 1,167 1,063 1,180 1,258 1,322 1,340 30-49% AMI 924 1,061 1,148 1,316 1,437 1,456 50-59% AMI 852 966 1,064 1,193 1,289 1,359 60-69% AMI 568 636 688 737 775 786 70-79% AMI 561 599 649 698 735 758 80-99% AMI 1,369 1,596 1,771 1,977 2,153 2,268 100-119% AMI 815 896 997 1,104 1,193 1,255 120-149% AMI 851 995 1,118 1,233 1,333 1,415 150%+ AMI 1,575 1,788 1,968 2,161 2,324 2,508 Total 8,681 9,601 10,585 11,678 12,559 13,145 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Multi-Family, Owner 2015 2020 2025 2030 2035 2040 <30% AMI 224 226 257 290 321 343 30-49% AMI 628 744 857 975 1,082 1,162 50-59% AMI 387 392 429 482 533 578 60-69% AMI 324 390 439 489 531 591 70-79% AMI 358 350 397 459 510 564 80-99% AMI 493 568 660 749 822 900 100-119% AMI 437 517 601 679 750 813 120-149% AMI 673 774 853 933 994 1,041 150%+ AMI 774 941 1,063 1,172 1,261 1,348 Total 4,298 4,903 5,556 6,230 6,804 7,340 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Multi-Family, Renter 2015 2020 2025 2030 2035 2040 <30% AMI 2,603 2,934 3,204 3,425 3,578 3,644 30-49% AMI 1,664 1,916 2,068 2,178 2,250 2,320 50-59% AMI 1,153 1,378 1,520 1,650 1,739 1,814 60-69% AMI 1,040 1,055 1,116 1,158 1,184 1,217 70-79% AMI 1,109 1,205 1,268 1,291 1,309 1,320 Loudoun County Housing Needs Assessment Appendix - Forecasts VIIIe VIII.e. Households by Area Median Income Group and Unit Type, Loudoun County, 2015-2040 80-99% AMI 1,422 1,631 1,741 1,799 1,849 1,895 100-119% AMI 1,626 1,740 1,870 1,983 2,074 2,153 120-149% AMI 1,518 1,740 1,900 1,994 2,058 2,140 150%+ AMI 1,630 1,935 2,216 2,403 2,563 2,735 Total 13,766 15,532 16,904 17,880 18,604 19,237 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts IX IX. Households by Share of Household Income Spent on Rent and Tenure, Loudoun County, 2015-2040 Owner Households 2015 2020 2025 2030 2035 2040 <30 Percent 71,948 81,659 90,593 99,264 106,584 112,774 30 Percent or More 21,280 23,727 26,110 28,229 29,934 31,104 Total 93,228 105,387 116,703 127,493 136,518 143,878 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Renter Households 2015 2020 2025 2030 2035 2040 <30 Percent 16,969 18,748 20,646 22,547 24,141 25,747 30 Percent or More 10,902 12,134 13,266 14,422 15,305 15,831 Total 27,872 30,882 33,913 36,970 39,446 41,578 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts IXa IX.a. Households by Share of Household Income Spent on Rent and Area Median Income Group, Loudoun County, 2015-2040 <30 Percent 2015 2020 2025 2030 2035 2040 <30% AMI 2,054 1,864 2,070 2,222 2,342 2,463 30-49% AMI 2,124 2,314 2,570 2,798 2,976 3,112 50-59% AMI 2,490 2,876 3,211 3,543 3,795 4,024 60-69% AMI 2,131 2,411 2,667 2,871 3,035 3,187 70-79% AMI 3,073 3,446 3,746 3,991 4,174 4,331 80-99% AMI 7,852 8,673 9,426 10,259 10,938 11,395 100-119% AMI 10,096 11,359 12,523 13,681 14,644 15,377 120-149% AMI 13,756 15,536 17,122 18,496 19,637 20,647 150%+ AMI 45,341 51,927 57,905 63,950 69,185 73,985 Total 88,917 100,407 111,239 121,811 130,725 138,521 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC 30 Percent or More 2015 2020 2025 2030 2035 2040 <30% AMI 6,037 6,743 7,500 8,106 8,577 8,828 30-49% AMI 6,095 6,650 7,258 7,859 8,317 8,577 50-59% AMI 3,067 3,440 3,764 4,156 4,455 4,650 60-69% AMI 3,283 3,584 3,866 4,109 4,300 4,448 70-79% AMI 2,544 2,857 3,169 3,452 3,671 3,795 80-99% AMI 4,368 4,985 5,479 5,874 6,214 6,512 100-119% AMI 2,719 3,037 3,312 3,557 3,752 3,891 120-149% AMI 2,349 2,512 2,676 2,981 3,216 3,349 150%+ AMI 1,719 2,054 2,352 2,557 2,736 2,886 Total 32,183 35,862 39,376 42,652 45,238 46,935 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts IXb IX.b. Households by Share of Household Income Spent on Rent and Age of Householder, Loudoun County, 2015-2040 <30 Percent 2015 2020 2025 2030 2035 2040 <35 13,766 19,978 25,227 24,318 23,893 22,509 35-44 25,365 27,680 29,872 36,436 41,608 40,675 45-54 24,893 26,002 27,235 29,236 30,971 37,046 55-64 14,199 14,766 15,362 16,484 17,458 19,289 65+10,695 11,981 13,543 15,337 16,795 19,002 Total 88,917 100,407 111,239 121,811 130,725 138,521 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC 30 Percent or More 2015 2020 2025 2030 2035 2040 <35 6,030 7,958 9,364 8,956 8,791 8,298 35-44 8,821 9,363 9,957 12,108 13,616 13,118 45-54 6,912 7,122 7,442 7,901 8,283 10,010 55-64 5,397 5,906 6,155 6,351 6,525 6,894 65+5,023 5,512 6,459 7,337 8,022 8,616 Total 32,183 35,862 39,376 42,652 45,238 46,935 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts IXc IX.c. Households by Share of Household Income Spent on Rent and Labor Force Participation Status, Loudoun County, 2015-2040 <30 Percent 2015 2020 2025 2030 2035 2040 Household has a worker with a payroll job 80,209 90,813 99,897 109,207 117,140 124,468 Household does not have a worker with a payroll job 8,709 9,594 11,342 12,605 13,585 14,053 Total 88,917 100,407 111,239 121,811 130,725 138,521 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC 30 Percent or More 2015 2020 2025 2030 2035 2040 Household has a worker with a payroll job 25,648 28,603 30,941 33,460 35,453 36,833 Household does not have a worker with a payroll job 6,534 7,259 8,435 9,192 9,786 10,102 Total 32,183 35,862 39,376 42,652 45,238 46,935 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts IXd IX.d. Households by Share of Household Income Spent on Rent and Disability Status, Loudoun County, 2015-2040 <30 Percent 2015 2020 2025 2030 2035 2040 No member of the household has a disability 77,352 88,148 97,830 106,933 114,602 120,976 1+ members of the household has/have a disability 11,565 12,259 13,409 14,879 16,124 17,545 Total 88,917 100,407 111,239 121,811 130,725 138,521 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC 30 Percent or More 2015 2020 2025 2030 2035 2040 No member of the household has a disability 27,214 30,603 33,622 36,352 38,496 39,735 1+ members of the household has/have a disability 4,969 5,259 5,754 6,300 6,743 7,200 Total 32,183 35,862 39,376 42,652 45,238 46,935 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix - Forecasts IXe IX.e. Households by Share of Household Income Spent on Rent and Household Size, Loudoun County, 2015-2040 <30 Percent 2015 2020 2025 2030 2035 2040 1 Person 12,334 13,878 15,678 17,378 18,796 20,565 2 People 26,548 29,617 32,705 35,279 37,395 40,085 3 People 18,089 20,583 22,810 24,653 26,233 27,708 4+ People 31,947 36,329 40,046 44,501 48,302 50,163 Total 88,917 100,407 111,239 121,811 130,725 138,521 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates 30 Percent or More 2015 2020 2025 2030 2035 2040 1 Person 8,362 9,372 10,627 11,756 12,642 13,416 2 People 7,368 8,264 9,079 9,633 10,071 10,435 3 People 5,326 5,934 6,489 6,899 7,237 7,490 4+ People 11,127 12,291 13,180 14,364 15,289 15,594 Total 32,183 35,862 39,376 42,652 45,238 46,935 Source: GMU Center for Regional Analysis and Lisa Sturtevant & Associates Loudoun County Housing Needs Assessment Appendix - Forecasts X X. Housing Unit Gap by Unit Type, Loudoun County, 2020-2040 2020 2025 2030 2035 2040 Single-Family Detached (3,906) (6,705) (11,287) (15,741) (19,091) Single-Family Attached*2,492 466 (4,155) (7,982) (11,379) Multi-Family*2,623 6,111 9,268 11,784 12,170 Total 1,210 (128) (6,174) (11,939) (18,300) *The supply used to forecast this gap includes half of the forecasted multi-family stacked attached housing units, which includes stacked townhomes, one-over-twos, two-over-twos. The Census permitting data generally includes these units as multi-family units, but respondents in the American Community Survey, which forms the basis for the assumptions in this model, will likely split their responses between single-family attached (including buildings with 2-4 units) and multi-family buildings (5+ units) Source: Metropolitan Washington Council of Governments Cooperative Forecasts Round 9.0, GMU Center for Regional Analysis and Lisa Sturtevant & Associates, LLC Loudoun County Housing Needs Assessment Appendix – Study Methodology Loudoun County Housing Needs Assessment Study Methodology With the adoption of an amendment to its comprehensive plan in 2007, elected officials and local leaders formally recognized the challenges associated with ensuring that there are sufficient housing options for all people who live and/or work in Loudoun County. However, there are challenges to Loudoun County’s prospects for meeting its full economic development potential and for remaining a vibrant and growing community in the years to come. A particular challenge is providing housing to meet the needs of the growing population and workforce. The George Mason University Study Team (“study team) will analyze current and future housing needs to help guide the County’s future housing work. The process of analyzing current and future housing needs and assessing the County’s capacity to meet those needs is described below. 1. Review of alternative housing needs assessment methodologies. There are different ways to approach an assessment of current and future housing needs in a community. Almost all analyses of local housing needs include an assessment of current conditions, including tabulations and discussions of population demographics, housing market conditions, and housing affordability, typically measuring cost burdened households as those spending more than 30 percent of their income on housing. In this housing market and needs analysis in Loudoun County, we will analyze current demographic, housing market conditions and housing affordability similar to other recent local studies of housing needs. In addition, however, we will also analyze economic and employment conditions in Loudoun County and in the region, assess commuting patterns into and out of Loudoun County, and present alternative measures of housing affordability (e.g. housing plus transportation cost data). Our approach, therefore, provides a more comprehensive picture of current conditions and recent trends that impact housing demand and supply in the County. To forecast future housing needs in local jurisdiction, researchers have often used a method based on data on natural population increase (i.e. births minus deaths) and population in-migration. With this method, future housing needs are driven by future population growth, and future population growth is expected to follow similar patterns as past population growth. Sometimes new assumptions about natural increase and/or population migration can be applied to forecast future population growth. The Urban Institute took this approach using population data in a recent study of current and future housing needs in the District of Columbia.1 A study of housing needs in the Richmond Region conducted by researchers at Virginia Tech and Virginia Commonwealth University also used a population-based approach to projecting housing needs.2 1 Tatian, Peter, Graham MacDonald, Josh Leopold, Austin Nichols, Elizabeth Oo, Maia Woluchem, Gerry Jospeh and Simone Zhang, Affordable Housing Needs Assessment for the District of Columbia (Washington DC: The Urban Institute, 2015) 2 Housing the Richmond Region: Needs, Impediments and Strategies (Richmond, VA: Partnership for Housing Affordability, 2015) Loudoun County Housing Needs Assessment Appendix – Study Methodology We are proposing a somewhat different approach to forecasting housing needs in Loudoun County. Our methodology includes a two-pronged approach: i) an employment-driven housing demand forecast and ii) a demographic-driven (i.e. non-employment related) housing demand forecast. Our demographic- driven approach is similar to the population-based approach described above. It is the employment-driven component that makes our approach unique. Linking housing demand to regional job growth is important for at least two reasons. First, Loudoun County is a fast-growing suburban jurisdiction that is quickly becoming an important regional employment center. That position as a regional economic growth center will be a critical element to assessing the quantity and types of housing that will be needed in the future. Because the County is growing and changing, it is very likely that future housing needs will be different than the housing needs that past population growth might suggest. Second, using a method that ties housing demand to job growth can be useful for communicating study findings to many different audiences, including economic development organizations, employers and the broader public. We have used a similar two-pronged methodology for forecasting housing demand in Arlington County, Virginia and in the greater Washington DC metropolitan area, including many individual jurisdictions. We feel confident that this approach builds on what we can learn from a population-only driven set of forecasts and incorporates more nuanced information about the housing needs of new working households, as well as households not in the labor force. The remainder of this report describes our methodology in more detail. 2. Detailed Analysis of Trends, Current Conditions and Housing Affordability The study team will develop detailed tables and will prepare a comprehensive narrative describing trends and current conditions for Loudoun County, along with several comparison jurisdictions and the Washington DC metropolitan area as a whole. The comparison jurisdictions that will be used in this analysis are: Arlington, Fairfax and Prince William counties in Virginia, and Montgomery and Frederick counties in Maryland. The primary goal of this part of the analysis is to better understand the local and regional trends that will shape future housing needs and to document the existing housing gaps in the County. The analysis will cover population and demographics, employment and the economy, and housing market conditions. In addition, the study team will prepare detailed cross-tabulations and written analysis of current housing affordability for various subpopulations in Loudoun County, as well as selected tabulations for comparison jurisdictions. The analysis will include typical measures of housing affordability, as well as alternative measures of affordability, assessment of crowding/underhoused families and homelessness. In addition, the study team will discuss at least two different measures of the current housing gap in the County. 2-1. Data Sources For the analysis of population, demographic and some economic characteristics, we will use microdata from the U.S. Census Bureau’s American Community Survey and 2000 decennial Census. Historically, the decennial Census included a long-form survey that collected detailed demographic, social, economic and housing data from a sample of U.S. households and persons residing in group quarters (e.g. dorms, jails, nursing facilities.) The detailed data from the decennial Census were reported out as Summary File 3 (SF3) Loudoun County Housing Needs Assessment Appendix – Study Methodology data. Beginning in 2010, the U.S. Census Bureau replaced the decennial Census long-form data with data from the American Community Survey (ACS), which was implemented nationwide in 2006. The ACS is an annual survey of a sample of households and persons residing in group quarters. Each year, approximately one out of 10 households in the U.S. receives an ACS questionnaire. Typically, response rates are between 96 and 98 percent. In Virginia, the 2014 response rate was 96.9 percent.3 The ACS is now the most reliable and timely source for demographic data for states and localities. The ACS data are available either as one-year data (i.e. data from the 2014 ACS survey form are reported out) or five years of ACS data are combined and reported out as five-year data (i.e. data from the 2009- 2014 ACS survey forms are combined and summarized).4 The one-year data provide the most current information on a locality, usually available within 12 months after the end of the year. The five-year data provide more reliable estimates for very small places and for unique characteristics. Data from the ACS and decennial Census are reported out in summary form on the U.S. Census Bureau’s website via its American FactFinder (AFF) tool.5 While thousands of summary tables are available from the AFF tool, a user cannot produce custom tables from the site. The study team will use the public use microdata sample (PUMS) file for the 2014 ACS, as well as the microdata file for the 2000 Census SF3. Unfortunately, we cannot use the ACS 2009-2014 five-year for Loudoun County because of a change in the Census geography.6 Therefore, we will combine the 2012, 2013 and 2014 ACS one-year files to create a three-year file for some of the analysis (and forecasting). We will use one-year data to summarize broad characteristics of the population (e.g. share of owners and renters), and will use three-year data to analyze detailed characteristics (e.g. share of owners and renters by age that are cost burdened). The study team will use county-level data from the U.S. Census Bureau to analyze private sector employment in the Washington DC metro area and Loudoun County.7 The Census releases Quarterly Workforce Indicators (QWI) data for counties on employment and wages by industry (defined by up to six-digit NAICS code8) and age group. QWI quarterly employment data represent the number of covered workers who received pay during a given quarter. Multiple datasets are linked to create this data set, including unemployment insurance earnings records, QCEW, Business Dynamics Statistics, 2000 Census, Social Security Administrative records, individual tax returns and other administrative records. Quarterly data are usually available at three quarters after the end of the period.9 3 For information on the design and quality of ACS data, see https://www.census.gov/acs/www/methodology/sample-size-and- data-quality/. 4 The U.S. Census Bureau used to produce a three-year file but they discontinued the release of that data in 2014. 5 The U.S. Census Bureau’s American FactFinder tool can be accessed online at http://factfinder.census.gov/faces/nav/jsf/pages/index.xhtml. 6 Prior to 2012, data for Loudoun County in the PUMS file was combined with data for Warren, Fauquier and Clarke counties. 7 Federal employment is only available as a limited beta release for select states that does not yet include Virginia. We will use other sources, including the U.S. Bureau of Labor Statistics and the Bureau of Economic Analysis, to supplement federal employment data. 8 NAICS is the North American Classification System, which is the standard system used by Federal government agencies to classify business establishments and workers into industries. 9 Census QWI data are available online at http://lehd.ces.census.gov/data/. Loudoun County Housing Needs Assessment Appendix – Study Methodology To analyze trends and current conditions in the for-sale market, the study team will use transaction-level data from MRIS, the region’s multiple listing service. MRIS publishes monthly summary reports on home sales, prices, and inventories for all counties in the mid-Atlantic region. The study team can use this publically-available summary data10, but also has access to transaction-level data for all home sales in the region. These data include information on prices and days on market for all home sales listed in the MRIS, as well as a set of characteristics of the homes (e.g. number of bedrooms). The data also include records of all homes currently listed for sale, including the ask price and the home characteristics. The MRIS data provides the most complete information about sales of existing homes. However, new home sales are often not reported out in the MRIS data because they are sold directly by the builder and not through a real estate agent and the multiple listing service. As a result, we will supplement the housing market data with sales data from the Loudoun County Commissioner of Revenue and from data we can collect from the Northern Virginia Building Industry Association. If necessary, we will investigate other sources of data on new home sales (e.g. specific developer data) to provide as complete a picture as possible of the for- sale market in Loudoun County. On the rental side, we will use data from the Census and ACS to summarize characteristics of the current supply of rental housing. We will supplement this information with data from the Loudoun County Rent and Vacancy Survey which will be provided to the study team by County staff. Data on new construction will use data from the County's Annual Residential Building Permits Summary from the Loudoun County Department of Building and Development and the Loudoun County Department of Planning and Zoning. Additional data are available from the County in the Fiscal Impact Committee Guidelines and Growth Summaries which includes a plethora of data on historic residential development and assumptions about and projections of future residential development. We will also make use of the most recent Loudoun County permit and pipeline data which will provide the best information on recent and forthcoming residential development activity. We will use ACS data to measure housing cost burden—defined as households spending 30 percent or more of their income on housing costs—and severe housing cost burdened—defined as households spending 50 percent or more of their income on housing costs. In addition, we will use data from the Location Affordability Index (LAI) portal11 that reports on data on housing plus transportation costs for 14 different household/family types for counties and smaller levels of geography (i.e. Census tracts). The LAI data are not as recent as the ACS data but they provide an alternative ways of assessing housing affordability in the County. We recommend using County data only. The tract-level data are not always reliable because of the very small sample sizes. We will provide additional analysis of housing affordability in the County by using data from the Economic Policy Institute’s Family Budget Calculator12 which reports the income a family needs in order to attain a “modest yet adequate standard of living.” Data are available 10 Summary data from MRIS can be access online at http://www.getsmartcharts.com/?utm_source=mrisdotcom&utm_medium=tab&utm_campaign=mris-products. 11 The LAI portal can be accessed online at http://www.locationaffordability.info/lai.aspx. 12 The EPI Family Budget Calculator can be accessed online at http://www.epi.org/resources/budget/. Loudoun County Housing Needs Assessment Appendix – Study Methodology at the county level for 10 family types (one or two adults with zero to four children). We will not present detailed tables using these alternative affordability measures but rather will incorporate the data from these sources in a broad discussion of the cost of living and availability of affordable housing in the county. 2-2. Trends and Current Conditions 2-2-a. Population and Demographics The study team will prepare detailed tables and written narrative on the demographic characteristics of Loudoun County’s population using data from the most recent ACS. We will also present an analysis of demographic trends in the County between 2000 and 2014. As part of the final report, we will prepare a detailed narrative that analyzes the current population and demographic conditions, recent trends and the implications of those trends for housing demand. The analysis of population and demographic data will include a summary of the following characteristics: age, race/ethnicity, educational attainment, household composition and size, renter/owner, length of time living in the County, prior place of residence for recent movers, and disability status. A list of the proposed tables we will produce is included in the Appendix. For a subset of tables, we tabulate data for Loudoun County as well as for Arlington, Fairfax and Prince William counties in Virginia; Montgomery and Frederick counties in Maryland; and for the Washington DC metropolitan area.13 The Loudoun County Department of Planning and Zoning produces population and household counts. These counts will be used to re-weight all ACS data in all tables where totals are shown. In other words, we will use the relevant percentages from the ACS data analysis (e.g. percentage of households that are home owners) and we will apply these percentages to current population and household totals that the County has developed. This allows us to present the most recent information on population and household characteristics, but allows us to present population and household totals that are consistent with totals published by the County. 2-2-b. Employment and the Economy A key element of this housing needs analysis is to tie housing needs and future housing demand to regional job growth and economic vitality. As a result, it is important to have a detailed analysis of trends and current conditions in the Loudoun County economy. We will use BLS and Census data to tabulate key statistics about the County’s economy and will prepare a detailed narrative about local economic conditions and Loudoun County’s role in the larger Washington DC area economy. We will include analyses both about at-place employment (i.e. jobs located in the County and workers who work in those jobs) and resident workers (i.e. workers who live in Loudoun County and work anywhere). The analysis of employment and the economy will include: 13 The Washington DC metropolitan area includes 26 cities and counties in Washington DC, Virginia, Maryland and West Virginia. Loudoun County Housing Needs Assessment Appendix – Study Methodology • Trends in employment and gross county/regional product (GRP) for Loudoun County and the Washington DC metro area (2000-2014); employment by sector • Share of County jobs held by County residents, commuting patterns of in-commuters • Characteristics of at-place employment (i.e. jobs located in the County) (2014): industry sector (2-digit NAICs), average or median wage by industry, place of residence of workers (i.e. in the County, other counties and cities with main locations listed out individually), and commute mode • Characteristics of resident workers (2014): industry sector (2-digit NAICs), average or median wage by industry, place of work (i.e. in the County, other counties and cities with main locations listed out individually), age group for workers • Characteristics of County government workers and Loudoun County Public Schools (LCPS) workers (to the extent data are provided by the County and the LCPS) A full list of the proposed tables is included in the Appendix. 2-2-c. Housing Market The study team’s analysis of housing market conditions will include an overview of the County’s housing market (including both the for-sale and rental side) and an assessment of new construction and pipeline development. Pipeline development includes residential projects that have been approved by the County or have begun construction. We will use ACS, MRIS and Census Bureau building permit data, along with additional data provided by the County, including data from the County's Annual Residential Building Permits Summary, Rent and Vacancy Survey, the Commissioner of Revenue, and pipeline/approvals data. We will also incorporate into this analysis results from the County’s build-out analysis. In our assessment of occupied housing units, we will analyze the types and sizes of units currently available, along with their costs, and discuss the types and sizes of households that could be accommodated in those housing units. The analysis of housing market conditions and trends will include the following: • For-sale market: trends (2000-2016) including sales, prices and inventory of existing and new homes, unit type, and bedrooms • Rental market: trends (2000-2014, 2015 or 2016 depending on data availability) and current conditions, including rents and unit size/number of bedrooms • Residential construction: trends (2000-2016 depending on data availability) in housing permits and current pipeline development (e.g. projects recently approved by the County and projects currently under construction) A full list of the proposed tables is included in the Appendix. 2-3. Current Housing Affordability The study team will prepare detailed tabulations and written analysis of housing affordability in the County, and will also provide selected analysis of housing affordability measures over time and for Loudoun County Housing Needs Assessment Appendix – Study Methodology comparable jurisdictions and the Washington DC metropolitan area. In general, the tabulations of housing affordability will use standard measures of affordability, specifically the housing cost burden metric which states that housing is not affordable when households spend more than 30 percent of the income on housing costs. (Severe housing cost burden is defined as households spending more than 50 percent of their income on housing costs.) In addition, the study team will report out measures of housing plus transportation (H+T) costs for Loudoun County and comparison jurisdictions for select household types as defined by HUD and DOT in the Location Affordability Index (LAI) tool. • Housing affordability for various subgroups of the population, including an analysis by household income, household type, age of household head, race/ethnicity of household head, and tenure (i.e. renters/owners). • Assessment of alternative housing affordability measures including the LAI. A full list of the proposed tables is included in the Appendix. 2-4. Current Housing Gaps The study team will use the analyses described above to summarize and, to the extent possible, quantify the current gaps between housing demand and supply in Loudoun County. At least three approaches will be used to measure current housing gaps: • Estimates of housing cost burden by household income by and household type. We will use the number of cost burdened households as one measure of current unmet housing needs in the County. • Estimates of the number of in-commuters who might live in Loudoun County if housing were available and affordable. We will analyze the characteristics of people who work in Loudoun County but live outside of the County, and will develop assumptions about the share of current workers who might live in the County if housing were affordable and available. For example, we will analyze the share of higher-income County workers (e.g. professional and business services professions) that live in the County and compare that share to the share of lower-income County workers (e.g. retail workers) that live in the County. The difference in these shares is another way to measure the potential current housing gap for households at different income levels. • Assessment of the rents and prices of existing housing and recent new construction in relation to County household income distribution. We will tabulate the household incomes and household sizes of the County’s population and estimate the rent and home price households can afford. We will then compare these estimates to the rents and home prices of existing homes and new construction in the County. We can then estimate a housing gap based on the differences in the rents/prices in the existing inventory and new construction and the rents/prices that are affordable to current residents. 3. Forecasts of Future Housing Needs Loudoun County Housing Needs Assessment Appendix – Study Methodology The study team will prepare forecasts of housing demand for the 2015-2040 period (2015, 2020, 2030, and 2040). Future housing demand in Loudoun County will be driven by: 1) the need for housing for working households and 2) the need for housing for people not in the labor force (especially seniors and persons with disabilities). The forecasts will incorporate assumptions that have been developed and agreed to jointly by the study team and the County staff interdepartmental team (IDT). The final set of household forecasts will be summarized by income interval and by other household characteristics, including household size (1, 2, 3 and 4+ person households), age of household head (under 30, 30 to 44, 44 to 64, 65+), disability status of household members (physical, other), tenure (renter and owner), and type of housing unit (single-family detached, single-family attached, and multi-family). (See Figure 1 below). The analysis of future housing needs will include an assessment of the County’s ability to meet projected demand. The study team will provide a detailed written summary of the forecasts and summary tables, along with detailed forecasts data (including all input data) in Excel format. In addition, the study team will include an analysis of the limitations of the forecasting methodology and any caveats for the resulting estimates. 3-1. Data Sources The study team will use several data sources that were described above in Section 2-1 to produce baseline estimates and to develop assumptions for forecasts of future household growth and housing demand. These include 2012, 2013 and 2014 one-year ACS PUMS data, and decennial Census data. In addition, this analysis will use U.S. Census Population Estimates (vintage 2015) to benchmark baseline age distribution and sex. The forecasting process will also use the U.S. Census 2014 National Population Projections to estimate future growth rates by age group and sex (see below). The main source of data for the employment forecasts used in this analysis is IHS Economics (formerly known as IHS Global Insight). IHS Economics is a proprietary source of data that includes county-level forecasts of employment growth by industry sector (generally 2-digit NAICS, or combinations of 2-digit NAICS). The study team will also use data from the Metropolitan Washington Council of Governments Cooperative Forecast Round 9.0 to refine the forecasts of new regional jobs. The Current Population Survey microdata from the U.S. Bureau of Labor Statistics will be used to determine the number of current retirees by age and industry. We will use these estimates to forecast the number and industry of jobs that will be vacated by retirees in the future. Finally, to address potential capacity constraints and to assess the potential future gaps between housing demand and supply, the study team will use results from the County’s Residential Build-Out analysis (which should be available in July), population and household estimates from Metropolitan Washington Council of Governments Cooperative Forecast Round 9.0 and 2009-2013 American Community Survey, Commuting Worker Flows. Loudoun County Housing Needs Assessment Appendix – Study Methodology 3-2. Overview of the Forecasting Process The study team will take a regional approach to forecasting housing demand to account for the fact that Loudoun County is part of the larger Washington DC metropolitan area labor and housing market. The methodology described below builds off the housing demand forecasts we have prepared for the Washington DC region, Arlington County, Richmond and the Hampton Roads area. There will be two main sources of housing demand—i) demand from households with workers (including workers who work in Loudoun County and those who work in other places in the region) and ii) demand from households without workers. We will prepare forecasts not only of the total housing units that will be needed (out to 2040) but also the types and prices of units that will be needed to meet the demand of households of different household types. For each part of the forecasting process, we will develop assumptions in collaboration with the County IDT; a discussion of the key assumptions are described in more detail below. 3-2-a. Employment-Driven Housing Demand The first source of demand will be from households with at least one worker. The number and types of future jobs in the region (i.e. the Washington DC Metro Area) will help determine how many of these households will live in Loudoun and how many will live in other parts of the region. The types of jobs will also determine the wages of new workers, and the household incomes of new working households. We will forecast new households by category of area median income (AMI) and we will also forecast the household type of these new households. The household type (e.g. single-person, married couple with children, etc.; See Figure 3) and AMI group will then be used to estimate the type of housing unit these new households will live in. Figure 2 below depicts the process of forecasting employment-driven housing demand. Loudoun County Housing Needs Assessment Appendix – Study Methodology Figure 1. Forecasting Housing Needs in Loudoun County – Presentation of Final Forecasts Subgroup 2015 2020 2030 2040 Overall Housing Demand Household Size 1-person 2-person 3-person 4+ person Age of Household Head Under 30 30 to 44 44 to 64 65+ Disability Status Physical disability Other disability Household Income(a) <30% AMI 30-49.9% AMI 50-59.9% AMI 60-879.9% AMI 80-99.9% AMI 100-119.9% AMI 120-139.9% AMI 140-159.9% AMI 160-179.9% AMI 180-199.9AMI 200%+AMI Tenure Owner Renter Unit Type Single-family detached Single-family attached Multi-family (5+ units) (a) Income intervals may have to be consolidated if there are insufficient data. Loudoun County Housing Needs Assessment Appendix – Study Methodology Steps 1a and 1b. Net New Jobs The projected housing needs rely on forecasts of job growth in the Washington DC Metropolitan Area. In this analysis, a "job" is defined as a payroll job which are those held by an employee of a company or government, and receives wages. It will exclude unincorporated self-employment, including some types of contract workers, and all unpaid positions (volunteering, internships etc.). For the housing needs forecast, we include unincorporated self-employed persons in the demographic-driven forecasts (see below). Future job growth has two components: net new job growth and jobs vacated by retirees. To determine net new job growth, we will begin with forecasts from IHS Economics for 12 main industry sectors defined generally by NAICS: construction, natural resources, and mining; manufacturing; transportation, trade and utilities; information; financial activities; professional and business services; education and health services; leisure and hospitality; other services; federal government; state and local government; and military. IHS Economics produces county-level employment forecasts for these industry classifications out to 2040. We will aggregate county-level forecasts to arrive at regional employment forecast totals. Historically, however, IHS Economics has significantly overestimated job growth for Loudoun County. Therefore, we will adjust the IHS Economics forecasts to align more closely to the Metropolitan Washington Council of Governments (MWCOG) Cooperative Forecasts 9.0. We will use the same industry shares in the IHS Economics forecasts for Loudoun County but we will use the rate of job growth as specified in the MWCOG forecasts for Loudoun County. With the adjusted employment forecasts for Loudoun County, and the IHS Economics forecasts for the other jurisdictions in the region14, produce forecasts of job growth by industry for the Washington DC Metropolitan Area for 2015, 2020, 2030 and 2040. Because the region job forecasts are built from County-level forecasts, we will also produce job forecast by industry for Loudoun County. Some portion of housing demand is related to people moving into the region to take jobs vacated by retirees. To determine the number of jobs that will be vacated by retirees, we will use the Bureau of Labor Statistics 2014, 2015 and year-to-date 2016 Current Population Survey (CPS) data to calculate the share of retirees in each five-year age group and for each industry for the population over 55 years old in the metro area. These shares are then applied to the current workforce to estimate of the number of jobs that will be vacated by retirees, by industry, for 2015, 2020, 2030 and 2040. We will combine the net new job forecasts and the retiree-vacated job forecasts to determine the total new jobs forecast by industry in the metro area and Loudoun County for 2015, 2020, 2030 and 2040. 14 Based on our analysis of the IHS Economics employment forecasts, Loudoun County is the only jurisdictions in the Washington DC metropolitan area where these forecasts substantially misrepresent future employment growth. As a result, we feel comfortable using the IHS Economics forecasts for the rest of the region. We will confirm this assumption and will compare the IHS Economics forecasts to the MWCOG forecasts for all jurisdictions. Loudoun County Housing Needs Assessment Appendix – Study Methodology Step 2. Age Distribution of New Workers The first step in moving from forecasts of new jobs to housing demand will be to estimate the age distribution of the new workers that will fill those jobs. The ages of new workers is highly dependent on the industry. For example, construction and retail workers tend to be younger than workers in the financial services sector. We will assign some share of new workers in each sector to one of three age groups: under 30, 30-44 or 45-64. For workers filling jobs vacated by retirees, we will assume that the job opening filled by the new worker will not be the same level as the retiree. Rather, we will assume that a current worker will take the retiree's position, leaving a vacancy in a job that is currently held by someone under 65 years old. This will be the only "cycling" of jobs in this analysis and turnover and other replacement workers needs will not be addressed. Estimating the age of new workers is a critical step. We assume that the demand for different types of housing is highly dependent on individuals’ ages. We further assume that new workers will be somewhat younger than the existing workforce. We also use the age distribution of workers to estimate wages and household income (and ultimate the percent of area median income that the household falls into). We will use data from the 2012-2014 American Community Surveys to estimate the age distribution of current workers for each industry sector. We will then adjust this age distribution to account for the fact that new workers would be younger than the existing workforce by analyzing the age distribution of workers who had recently moved into the metro area. We will apply the updated ratios to the age distribution of existing workers to create an age distribution for new workers for two age groups (<30 and 30 to 44). The remaining workers are assumed to be between 45 and 64. We assume that no new workers will be age 65 and older. Thus, for each sector, we forecast the percent of new jobs held by workers under age 30, between 30 and 44, and between 45 and 64. This information will help estimate the household types and household incomes for future working households. Washington DC Metro Area Loudoun County Loudoun County Housing Needs Assessment Appendix – Study Methodology Step 3. Household Types of New Workers The next step is to estimate the type of household to which a worker is most likely to belong based on age. Age is an important determinant of housing demand largely because of the household composition implied by the ages of the individuals in the households. For example, workers under age 30 are more likely to live in one-person households or two adult-no children households and workers age 30 to 44 are more likely to live in households with children. We will forecast which of 11 household types he or she will live based on the age group of the worker. The 11 household types are listed in Figure 3. Figure 3. Household Types Household Size Household Composition 1-person households 1 adult 2-person households 1 adult, 1 child 2 adults 3-person households 1 adult, 2 child 2 adults, 1 child 3 adults 4+ person households 1 adult, 3+ children 2 adults, 2+ children 3 adults, 1+ children 4+ adults, 1+ children 4+ adults We estimate households by household type based on analysis of the 2012-2014 ACS data. We will the current distribution of household types for each age group. Thus, we will know the percent of current workers under 30 who live in one-adult households, the percent who live in one-adult, one-child households and so on. Based on the age of the new workers, we will assign each to a household type. This process assumes that the distribution of household types for different age groups remains fairly constant over time—i.e. people under 30 are just as likely to be in a married couple household in 20 years as they are currently. (See discussion of assumptions below.) Step 4. Workers per Household We will estimate the total number of future households regionwide based on the average number of workers in each household. To do so, we will use the 2012-2014 ACS data to calculate the average number of workers in each household type currently (including only households with workers). We are assuming, therefore, that the average number of workers by household type will not change substantially in the future. Loudoun County Housing Needs Assessment Appendix – Study Methodology The average number of workers in each of the 11 household types will be used to convert workers into households. Households are calculated by dividing the total number of workers by the average number of workers in each household type. For ease of the analysis, we will assume that workers who live in the same household also work in the same sector and jurisdiction. Step 5. Household Income of New Households We then will forecast the household income of the new worker households throughout the region. Housing demand is driven by housing preferences, which are associated with age and household composition, but demand is also necessarily related to household income. We will calculate the median household income for all 11 household types by both industry and worker age. Then, we will estimate the household income based on the number of workers in each household. We will assume that all workers in the household are in the same industry and age group. Then, based on the distribution of household income, we will assign each household to an AMI group. (See Figure 4 for the current AMI limits). Figure 4. FY 2015 AMI Limits, Washington Metro Area, Example of Forecast Thresholds 1- Person 2- Person 3- Person 4- Person 5- Person 6- Person 7- Person 8- Person 70% of 4- person HH 80% of 4- person HH 90% of 4- person HH 100% 108% of 4- person HH 116% of 4- person HH 124% of 4- person HH 132% of 4- person HH Extremely Low Income Limits (30% AMI) 22,932 26,208 29,484 32,760 35,381 38,002 40,622 43,243 Very Low Income Limits (50% AMI) 38,220 43,680 49,140 54,600 58,968 63,336 67,704 72,072 Low Income Limits (80% AMI) 61,152 69,888 78,624 87,360 94,349 101,338 108,326 115,315 100% AMI 76,440 87,360 98,280 109,200 117,936 126,672 135,408 144,144 120% AMI 91,728 104,832 117,936 131,040 141,523 152,006 162,490 172,973 Source: U.S. Department of Housing and Urban Development and GMU Center for Regional Analysis Loudoun County Housing Needs Assessment Appendix – Study Methodology Step 6. Housing Unit Type of New Households Finally, we will forecast what type of housing unit each new worker household will live in. After the previous step, we will have regional forecasts of the number of new households by 11 household types and 10 AMI groups based on the number of new jobs coming to the region. We will forecast housing units by type based on household type and household AMI. Household type and income are strongly associated with the type of housing unit. For example, single-person households and lower-income households are more likely to be renters in multi-family buildings while married couple households with higher incomes are more likely to be owners of single-family detached homes. The six housing unit types we will forecast are: single-family detached, single-family attached/townhome/2-4 unit buildings, and multi-family (5+ unit buildings); and owner and renter for each unit type. We will forecast the type of housing unit each household lives in based on the current patterns by household type and AMI. (See discussion of assumptions below.) We will use the 2012-2014 ACS data to estimate the share of each household type and AMI group combinations by housing unit type. The results of this analysis will show the current distribution of housing unit types for different household types and household incomes. We will apply these distributions to the projected households for the entire region to estimate the need for housing by unit type by AMI group and household type. Step 7. Housing Unit Demand in Loudoun County Resulting from Regional Job Growth We need to determine the share of future regional housing demand resulting from regional employment growth that will be in Loudoun County. We will analyze current commuting patterns, including i) people who work in Loudoun County and live in Loudoun County, ii) people who commute to jobs in other jurisdictions and live in Loudoun County; and iii) people who work in Loudoun County and live elsewhere. We will analyze commuting patterns using the most recent ACS data, as well as historic Census data. We will also analyze commuting patterns for Fairfax County. This analysis will help us determine the share of projected housing unit demand regionally that will be in Loudoun County. We will confer with the Loudoun County IDT on the appropriate shares to use after the preliminary analysis is completed. (See discussion of assumptions below). 3-2-b. Demographic-Driven (i.e. non-job related) Housing Demand The second source of demand for housing is from households without a worker (non-worker households). A non-working household is one in which no members of the household have a payroll job. This includes households consisting of retirees, students, workers looking for a job and unincorporated self-employed workers. Changes in non-worker households are driven by demographic changes, so we will estimate these households separately from worker households. First, we will estimate the ages of the total future population in Loudoun County, regardless of workforce status. Then, we will estimate the number of households that are formed by the age of the household Loudoun County Housing Needs Assessment Appendix – Study Methodology head, using headship rates. The age of the household head is a predictor of whether there is a worker in the household, and will be used to estimate the total number of non-worker households. The number of future non-working households in Loudoun County will be determined primarily by the aging of the population. Lastly, the age of the non-working household head will be used to determine the AMI group and unit type of these households. Step 1. Population by Age To estimate the number of non-working households by age, we will start by forecasting the age distribution by sex of the population. To do so, we will start by using cohort change ratios.15 The cohort change ratios capture both the “aging up” and net migration by age group and sex in prior decades. The population in 1990, 2000, and 2010 will be grouped by 5-year age group by sex. To begin, we will estimate the number of people in each age group who would have lived in the County if no current residents left, and no new residents came. We will do this by simply "aging up" each person by ten years. For example, in 1990, there were 4,371 males in Loudoun between 25 and 29 years old. If no one left or came in the next decade, there would have been the same number of males between 35 and 39 years old in 2000. Then, we will compare this to what actually happened. In the no-change example, the number 25-29 year olds in 1990 would equal the number of 35-39 year olds in 2000, for a ratio of 1:1. But in 2000, there were twice (2.3 times) as many 35-39 year old males as expected because Loudoun had in-migration in this age group. This ratio is generally higher in younger age groups and lower in older age groups, in part because older people move less frequently but also because this ratio reflects deaths. A simple or weighted average of the 1990-2000 and 2000-2010 cohort change ratios will be applied to the 2015 Loudoun County population to forecast the age groups and sex of in 2025, 2035 and 2045. (Because the cohort change ratios are for a 10-year period, we need to forecast out at 10-year intervals. The midpoint of those estimates will be used to determine the population estimates for 2020, 2030 and 2040.) Overall population forecasts from the Round 9.0 Cooperative Forecast from Metropolitan Washington Council of Governments (MWCOG) will be used to control each forecast. The cohort change ratios only look at past trends as a predictor of the future, but we also will look at recent national trends and trends in nearby jurisdictions (e.g. Fairfax County) and potentially use these other estimates to modify the Loudoun County forecast. We will also look at the National Population Projections, which are available by age and sex. We will compare the forecasted growth in each age group for the nation to the one found using the above method for Loudoun County. If the growth rates differ significantly, we may adjust the age distribution in Loudoun County to account for key national trends. Step 2. Households by Age of Household Head The next step will be to estimate the number of households by the age of the head of the household. To do this, we will estimate what percentage of the population is the head of a household (a headship rate). We will calculate this headship rate for all age groups by sex using data from the 2000 and 2010 Census, 15 This approach is called the Hamilton-Perry Method, and is a common approach to demographic forecasting. Loudoun County Housing Needs Assessment Appendix – Study Methodology and 2012-2014 American Community Surveys. An average of the headship rates will then be applied to the forecasted population by age and sex group to determine the number of households headed by each age group. The total households will be controlled to match the forecasted number of households from MWCOG. Again, we will look at the trends in comparable jurisdictions to see if it is appropriate to use another jurisdiction for these assumptions. Step 3. Households without a Worker Next, we will estimate the number of future households without a worker. The age of the householder is a predictor of if there is a worker in the household. Households with older household heads are more likely to have no workers than younger household heads. Using the 2012-2014 ACS data, we will calculate the percentage of each age group and sex that are non-worker households. This percentage will be applied to the forecasted households by the householder’s age group and sex. If it is determined in prior steps that another jurisdiction's assumptions are more appropriate, then that jurisdiction's assumptions will be used here as well. (See discussion of assumptions below.) Step 4. Household Incomes and Unit Types of Non-Working Households Finally, we will forecast the AMI group of each non-worker household and what type of unit they will be living it. The age and sex of the future non-working householder is assumed to drive the household’s AMI and housing unit characteristics. From 2012-2014 ACS data, the share of current non-working households in each AMI group and unit type will be calculated for each the age group by sex. These shares will then be applied to the forecasted households by householder age group and sex to generate the future number of non-working households by AMI and unit type. If it is determined in prior steps that another jurisdiction's assumptions are more appropriate, then that jurisdiction's assumptions will be used here as well. 3-3. Reconciling Housing Demand Forecasts These forecasts do not presume anything about current land use patterns or capacity for residential development in the County. The forecasting process generates total housing demand in Loudoun County as the sum of the employment-driven and demographic-driven estimates. These preliminary forecast totals will be compared with external sources, including the MWCOG Round 9.0 household forecasts for Loudoun County and the housing unit projections resulting from the County’s build-out analysis. These two sources—the MWCOG forecasts and the results from the County’s build-out analysis—will be used as the estimate of future housing supply. We will compare our housing demand forecasts with these two estimates of future housing supply to estimate potential future housing gaps. Most likely, the initial housing demand forecasts will be higher than what is suggested by either of these two sources. If so, we will lay out the assumptions for determining which households will not be accommodated in Loudoun County in the future. For example, if certain types of households are not currently able to find a sufficient supply of affordable and available housing in the County, we may assume Loudoun County Housing Needs Assessment Appendix – Study Methodology that these types of households will also have difficulty finding affordable and available housing in the County in the future. This approach will allow us to estimate the projected future gap between housing demand and supply in Loudoun County for households of different types and at different income levels. 3-4. Assumptions The housing demand forecasts rely heavily on assumptions about demographic, economic and housing market conditions and preferences. We will get confirmation from County IDT staff on all assumptions. Some preliminary decisions about assumptions are described below: • Rates of retirement by age group and industry – Assume current patterns based on analysis of 2012-2014 ACS data (“current patterns”) • Age distribution by industry – Current patterns • Household composition (type) by age group – While we may end using current patterns, we will first investigate household formation rates and patterns of household composition in different years in Loudoun County (e.g. 2000) and in different jurisdictions (e.g. Fairfax County). After we conduct this analysis, we will confer with the IDT to determine how to proceed. • Average number of workers by age group and household type – Current patterns • Median wages by age group and industry – Current patterns • Housing unit type (preferences) by household type and household income – While we may end up using current patterns, we will first investigate housing unit types in earlier years (e.g. 2000) and in other jurisdictions (e.g. Fairfax County). After we conduct this analysis, we will confer with the IDT to determine how to proceed. • Commuting patterns – We will use data on commuting patterns to allocate to Loudoun County housing demand associated with regional job growth. After we conduct an analysis of current commuting patterns both for Loudoun County and Fairfax County, we will confer with the IDT to determine the appropriate commuting shares to use in the forecasts. o Share of Loudoun County workers that live in the County (by household type) o Shares of workers in the rest of the region that live in Loudoun County (by household type) o Jobs-to-housing unit ratios in Loudoun and surrounding counties over time • Shares of households without a worker by age group (non-worker households) – Current patterns • Household income distributions of non-worker households – Current patterns 3-5. Quality Assurance We aim to produce high quality forecasts of housing demand for the Loudoun County Housing Needs Assessment. All of the analysis described in this Methodology will be done by Jeannette Chapman and Lisa Sturtevant. We have internal quality assurance (QA) checks as we go through the process. In addition, we will request validation from members of the IDT staff at critical points during the process. Finally, we will make available all data used in the analysis in Excel format. Loudoun County Housing Needs Assessment Appendix – Study Methodology 4. Implications of Analysis of Current Conditions and Trends In the final report, in addition to the detailed analysis as described above, we will also discuss the implications of the forecasts for policy and planning. This part of the analysis will include the following: • Discussion of recent housing construction patterns; assumptions about whether these patterns will continue and the resulting gaps between demand and supply • Assessment of the County’s housing programs and policies for delivering sufficient housing • Discussion of other factors that might affect housing demand or supply; qualitative discussion of how changes to assumptions will impact forecasts, including mortgage rates, slowdown in the regional economy, changes to assumptions (e.g. household formation rates, retirement rates, housing preferences) While we are not developing specific policy recommendations for meeting projected housing needs in the County, we will include in the final report a discussion of the potential for local policies to address gaps given the regional nature of housing and labor markets. In addition, because this study focuses explicitly on the link between economic growth and housing availability and affordability, in the conclusions section of the final report, we will discuss how potential future gaps between housing supply and housing demand may impact Loudoun County’s economic competitiveness. 5. Final Data Files We will provide all data files in Excel format so that the data can be updated. While much of the forecasting analysis will be conducted in STATA, we will include all of the data used in the assumptions in the Excel files. Loudoun County Housing Needs Assessment Appendix – Study Methodology APPENDIX Detailed Analysis of Trends, Current Conditions and Housing Affordability P. Population Characteristics P.I. Age Group (<18, 18-24, 25-34, 35-44, 45-54, 55-64, 65-74, 75-84, 85+) P.II. Race and Ethnicity (Non-Hispanic - White, one race, Black/African American, one race, Asian, one race, Multi-racial/other; Hispanic, any race) P.III. Place of Birth (U.S., foreign country) P.IV. Educational Attainment for Population over 25 Years Old (Less than high school graduate, High school graduate or equivalent, Some college or associate's degree, Bachelor's degree, Graduate or professional degree) P.V. Disability Status for Civilian, Noninstitutionalized Population (With a hearing difficulty, With a vision difficulty, With an ambulatory difficulty, With a cognitive difficulty, With a self-care difficulty, With an independent living difficulty; separately for under 65 and 65+) P.I.a. Population by Age Groups (2014) P.I.a (1) Arlington County, VA P.I.a (2) Fairfax County, VA P.I.a (3) Prince William County, VA P.I.a (4) Montgomery County, MD P.I.a (5) Frederick County, MD P.I.a (6) Washington Metropolitan Area P.II.a. Population by Race and Ethnicity (2014) P.II.a (1) Arlington County, VA P.II.a (2) Fairfax County, VA P.II.a (3) Prince William County, VA P.II.a (4) Montgomery County, MD P.II.a (5) Frederick County, MD P.I.a (6) Washington Metropolitan Area H. Household Characteristics H.I. Households by Age of Household Head (<25, 25-34, 35-44, 45-54, 55-64, 65+) H.II. Households by Household Income (<$15K, $15-29K, $30-59K, $60-79K, $80-99K, $100-119K, $120-149K, 150-199K, $200-249K, $250K+) H.III. Household by Percent of Area Median Income (<30% AMI, 30-49% AMI, 50-59% AMI, 60- 79% AMI, 80-99% AMI, 100-119% AMI, 120-139% AMI, 140-159% AMI, 160-179% AMI, 180-199% AMI, 200% AMI+) H.IV. Households by Household Type (Family Household-Married, No Kids, Married, w/Kids, Single Parent, Other Family; Non-Family Household-Living Alone, under 65, Living Alone, 65+, Not Living Alone) Loudoun County Housing Needs Assessment Appendix – Study Methodology H.V. Households by Year Moved into Unit Moved in (2010 or later, Moved in 2000 to 2009, Moved in 1990 to 1999, Moved in 1980 to 1989, Moved in 1970 to 1979, Moved in 1969 or earlier) H.VI. Place of Residence Year Ago for Households that Moved into the County (moved from other places in the Washington DC metro area, moved from outside the region) H.I.a. Household Income over Time (2000-2014) H.II.a (1) Arlington County, VA H.II.a (2) Fairfax County, VA H.II.a (3) Prince William County, VA H.II.a (4) Montgomery County, MD H.II.a (5) Frederick County, MD H.II.a (6) Washington Metropolitan Area H.III.a. Household Type over Time (2000-2014) H.III.a (1) Arlington County, VA H.III.a (2) Fairfax County, VA H.III.a (3) Prince William County, VA H.III.a (4) Montgomery County, MD H.III.a (5) Frederick County, MD H.III.a (6) Washington Metropolitan Area U. Housing Characteristics U.I. Occupied Housing by Tenure (owner, renter) U.II. Occupied Housing by Type of Building (Mobile home / trailer, Single-Family, Detached, Single-Family, Attached, 2-19 Units, 20-49 Units, 50 or more Units) U.III. Occupied Housing by Year Building Built (2010 or later, 2005-2009, 2000-2004, 1990-1999, 1980-1989, 1970-1979, 1960-1969, 1950-1959, Before 1950) U.IV. Occupied Housing by Number of Bedrooms (No Bedrooms/ Studio, 1 Bedroom, 2 Bedrooms, 3 Bedrooms, 4 Bedrooms, 5+ Bedrooms) U.V. Occupied Housing by Number of Occupants Per Room (0.50 or less, 0.51 to 1.00, 1.01 to 1.50, 1.51 to 2.00, 2.01 or more) U.VI. Occupied Housing by Monthly Gross Rent Level (<$750, $750-1,000, $1,001-1,250, $1,251- 1,500, $1,501-$2,000, $2,001-2,500, $2,500+) U.VII. Occupied Housing by Home Value (<$200,000, $200,000-299,999, $300,000-399,999, $400,000-499,999, $500,000-599,999, $600,000-699,999, $700,000-799,999, $800,000-899,999, $900,000-999,999, $1,000,000+) U.I.a. Occupied Housing by Tenure over Time U.I.a (1) Arlington County, VA U.I.a (2) Fairfax County, VA U.I.a (3) Prince William County, VA U.I.a (4) Montgomery County, MD U.I.a (5) Frederick County, MD U.I.a (6) Washington Metropolitan Area Loudoun County Housing Needs Assessment Appendix – Study Methodology U.II.a. Occupied Housing by Type of Building over Time U.II.a (1) Arlington County, VA U.II.a (2) Fairfax County, VA U.II.a (3) Prince William County, VA U.II.a (4) Montgomery County, MD U.II.a (5) Frederick County, MD U.II.a (6) Washington Metropolitan Area E. Employment and Economic Characteristics E.I. Employment by sector (2-digit NAICS, 2000-2014) E.II. Gross regional product (2000-2014) E.III. Characteristics of At-Place Employment (2014) E.III.a. Workers by Industry Sector (2-digit NAICS) E.III.b. Average or Median Wage by Industry E.III.c. Place of Residence of Workers (in the county, outside the county) E.III.d. Mode of Commute to Work for Workers over 16 Years Old (Public transportation, Drove alone, Carpooled, Walked or Biked, Worked at Home, Other) E.III.e Workers by Age Group E.IV. Characteristics of Resident Workers (2014) E.III.a. Workers by Industry Sector (2-digit NAICS) E.III.b. Average or Median Wage by Industry E.III.c. Place of Work of Residents (in the county, outside the county) E.III.d. Mode of Commute to Work for Workers over 16 Years Old (Public transportation, Drove alone, Carpooled, Walked or Biked, Worked at Home, Other) E.V. Share of At-Place Jobs Held by County Residents E.V.I. Commuting Patterns of County Workers HM.I. For-Sale Market HM.I.a. Number of Sales of Existing and New Homes (2000-2016) (*if new home sales data are available) HM.I.b. Prices of Existing and New Homes (2000-2016, median price and <$200,000, $200,000- 299,999, $300,000-399,999, $400,000-499,999, $500,000-599,999, $600,000-699,999, $700,000-799,999, $800,000-899,999, $900,000-999,999, $1,000,000+) (*if new home sales data are available) H.M.I.c. Current Inventories of Existing Homes by Price (<$200,000, $200,000-299,999, $300,000-399,999, $400,000-499,999, $500,000-599,999, $600,000-699,999, $700,000-799,999, $800,000-899,999, $900,000-999,999, $1,000,000+) H.M.I.d. Current Inventories of Existing Homes for Sale by Unit Type (single-family detached, single-family attached/townhome, and multi-family) and Bedroom Size (0, 1, 2, 3, 4+ bedrooms) Loudoun County Housing Needs Assessment Appendix – Study Methodology HM.II. Rental Market HM.II.a. Rents by Unit Size/Bedrooms (2000-2016, if data are available from the County) HM.III. Building Permits by Type of Structure (single-family, multi-family,2000-2014) A.I. General Affordability Characteristics A.I.a. Occupied Housing by Gross Rent as a Percent of Household Income (<30%, 30-49%, 50%+) A.I.b. Occupied Housing by Select Owner Costs as a Percent of Household Income (<30%, 30- 49%, 50%+) A.I.a. Occupied Housing by Gross Rent as a Percent of Household Income (2000-2014) A.I.a (1) Arlington County, VA A.I.a (2) Fairfax County, VA A.I.a (3) Prince William County, VA A.I.a. (4) Montgomery County, MD A.I.a. (5) Frederick County, MD A.I.a. (6) Washington Metropolitan Area A.I.b. Occupied Housing by Select Owner Costs as a Percent of Household Income (2000-2014) A.I.b. (1) Arlington County, VA A.I.b. (2) Fairfax County, VA A.I.b. (3) Prince William County, VA A.I.b. (4) Montgomery County, MD A.I.b. (5) Frederick County, MD A.I. b. (6) Washington Metropolitan Area A.II. Detailed Analysis of Cost Burdened Households (Defined as Those Spending 30% of More of Income on Housing) A.II.a. By Household Income (<$15K, $15-29K, $30-59K, $60-79K, $80-99K, $100-119K, $120-149K, 150-199K, $200-249K, $250K+) A.II.b. By Percent of Area Median Income (<30% AMI, 30-49% AMI, 50-59% AMI, 60-79% AMI, 80- 99% AMI, 100-119% AMI, 120-139% AMI, 140-159% AMI, 160-179% AMI, 180-199% AMI, 200% AMI+) A.II.c. By Household Type (Family Household-Married, No Kids, Married, w/Kids, Single Parent, Other Family; Non-Family Household-Living Alone, under 65, Living Alone, 65+, Not Living Alone; Female Headed Households) A.II.d. By Household Size (1, 2, 3, 4+ person) A.II.e. By Race and Ethnicity (Non-Hispanic - White, one race, Black/African American, one race, Asian, one race, Multi-racial/other ; Hispanic, any race) A.II.f. By Age of Household Head (<25, 25-34, 35-44, 45-54, 55-64, 65+) A.II.g. By Disability Status of Household Members (Physical disability, Other disability) A.III. Housing plus Transportation (H+T) Costs for Select Household Types Forecasts of Housing Demand Loudoun County Housing Needs Assessment Appendix – Study Methodology The subgroups included in the forecast tables will be the same as those outlined above in the tables summarizing trends, current conditions and housing affordability. Number of Households by AMI Group16, 2014-204017 Number of Households by Household Size (1, 2, 3 or 4+) and AMI, 2014-2040 Number of Households by Select Household Type and AMI, 2014-2040 Number of Households by Age Group of Head of Household, 2014-2040 Number of Worker Households and Non-Worker Households, 2014-2040 Job Growth by Industry and Place of Job, 2015-2040 Job Growth in Loudoun and Current Wage Distribution, 2014-2040 Future Rent Thresholds based on AMI Groups, in current dollars Number of Households by Unit Type and AMI, 2014-2040 Summary of Forecasted Housing Supply, 2014-2040 [MWCOG 9.0 &/or Build-out Report] Share of Cost Burdened Owners and Renters Based on Current Ratios and Forecasted Households, 2014- 2040 16 If available and appropriate, 10% AMI intervals will be shown. Some intervals may have too few households to show. 17 If available and appropriate, 5-year intervals will be shown. Intervals will be no more than 10 years. Loudoun County Housing Needs Assessment Appendix – Study Methodology A Note on Area Median Income Thresholds The AMI limits in this forecast will only use the 100 percent Area Median Income for a family of four from the U.S. Department of Housing and Urban Development (HUD). The household size adjustments will follow the same method, but no ceilings or caps will be used. This most notable difference between HUD limits and those forecasted will be for the 80 percent AMI limits, which are generally capped in the Washington Metro Area. Additionally each threshold will be rounded to the nearest dollar ($1.00), instead of the HUD method of rounding up to the nearest $50.00. All forecasts will used the Washington Metro Area AMI, even if the workers' job is outside of the metro. Household Size Adjustment: AMI thresholds are dependent on household size. The 100 percent AMI threshold for a 4-person household is equal to the region’s AMI and all other households are calculated using a 4-person household as the base as shown in Table 2. AMI limits for households smaller than four people are 100 percent of the 4-person limit minus ten percent for each fewer person. AMI limits for households larger than four people are 100 percent of the 4-person limit plus eight percent for each additional person. FY 2015 AMI Limits, Washington Metro Area, Example of Forecast Thresholds 1- Person 2- Person 3- Person 4- Person 5- Person 6- Person 7- Person 8- Person 70% of 4- person HH 80% of 4- person HH 90% of 4- person HH 100% 108% of 4- person HH 116% of 4- person HH 124% of 4- person HH 132% of 4- person HH Extremely Low Income Limits (30% AMI) 22,932 26,208 29,484 32,760 35,381 38,002 40,622 43,243 Very Low Income Limits (50% AMI) 38,220 43,680 49,140 54,600 58,968 63,336 67,704 72,072 Low Income Limits (80% AMI) 61,152 69,888 78,624 87,360 94,349 101,338 108,326 115,315 100% AMI 76,440 87,360 98,280 109,200 117,936 126,672 135,408 144,144 120% AMI 91,728 104,832 117,936 131,040 141,523 152,006 162,490 172,973 Source: U.S. Department of Housing and Urban Development and GMU Center for Regional Analysis Loudoun County Housing Needs Assessment Appendix – Forecast Methodology Loudoun County Housing Needs Assessment Housing Demand Forecasts Methodology The forecasts of household growth and housing demand for Loudoun County described in the report are derived from three main components: 1) housing demand from workers filling net new jobs, 2) housing demand from workers replacing jobs vacated by retirees, and 3) housing demand from non-worker households. This forecasting process relies on local and regional employment forecasts, local population estimates and forecasts, and analysis of U.S. Census Bureau American Community Survey data. The majority of future housing demand in Loudoun County will be related to employment growth. The employment-driven portion of the housing demand in the GMU consulting team’s forecasting model is from workers with a payroll job1, or a position with a regular wage or salary, in Loudoun County or somewhere else in the Washington DC region. These future workers are expected to live in Loudoun County at the same rates as they currently do. In addition to housing demand associated with net new jobs, these forecasts estimate the amount of housing that will be needed to accommodate replacement workers—that is, workers filling jobs vacated by retirees. The estimates of future employment growth that drive these housing demand forecasts are based on forecasts of employment growth by sector from IHS Economics and the MWCOG. The remainder of future housing demand in Loudoun County is derived from demographic trends to estimated housing demand from households without a payroll worker. The demographic-driven portion of housing demand in Loudoun County includes housing needed for retirees, students, and some types of self-employed residents. A separate forecasting process based on projected age and sex of the current population2 was used to determine how many of these households will be expected to prefer to live in the County by 2040. For both groups, these forecasts include estimates of household characteristics of future households. The household characteristics—including age of the household head, household size and composition, and household incomes—are used to predict housing unit preferences. 1 Payroll employment is the type of employment that is covered by unemployment insurance and is included in estimates from the Bureau of Labor Statistics and employment forecasts from IHS Economics, which are used for this analysis. 2 The householder and the head of household is used interchangeably throughout this report. Loudoun County Housing Needs Assessment Appendix – Forecast Methodology Key Forecast Parameters Geography: The forecasts reported in this report focus exclusively on Loudoun County. In order to estimate housing demand associated with new worker households, the job growth within the greater Washington DC region was examined. Timeframe: The forecasts are for the 2015-2040 period. Household Characteristics: Age Groups: We generate forecasts for the age of the head of household in 5 age groups (<35 years old, 35-44 years old, 45-54 years old, 55-65 years old and 65+ years old). Household Size: We generate forecasts for single-person households, two-person households, three-person households and households with four or more people. Disability Status: We generate forecasts for households where any member of the household has a disability and for households where no member of the household has a disability. Area Median Income Groups: We generate forecasts for 21 AMI groups. AMI is commonly used as a basis for grouping households among affordable housing policymakers, planners and advocates. The AMI limits are published annually by HUD for all U.S. metropolitan areas and correspond to the median family income. Housing Unit Characteristics: Housing Tenure and Types: We forecast the demand for single-family detached owner, single- family detached renter, single-family attached owner, single-family attached renter, multi-family owner, and multi-family renter. Single-family attached includes townhouses and buildings with 2- 4 units. Multi-family includes homes in buildings with at least five units. Description of Forecasting Process This methodology is divided into three sections: I. Estimating household growth and housing demand among households without a payroll job II. Estimating household growth and housing demand for net new workers and replacement workers III. Analyzing regional housing and commuting characteristics I. Household Growth and Housing Demand for Households without a Payroll Job Households without a payroll job include retirees, students and unincorporated3 self-employed workers, the majority of whom are living in Loudoun County for a reason not tied to the traditional employment market. Demographic trends are assumed to drive the growth in these types of households. The 3 Unincorporated self-employment includes individuals who have not created a legal entity or corporation. Loudoun County Housing Needs Assessment Appendix – Forecast Methodology forecasted age group and sex of the householder is used to determine the likelihood that a household would not have a payroll job. Before determining forecasting the number of non-payroll job households in Loudoun County, we first started by forecasting the County population by age group and sex. Then, we determined the number of households that these residents would form. Finally, we estimated what share of these households would not have a payroll job based on current labor force participation rates by age group and sex. I.a. Population Forecasts by Age: To forecast the population by age group and sex, we first started by using cohort change ratios.4 The population in 1990, 2000, 2005, 2010, and 2015 was grouped by 5-year age groups by sex. Between 1990 and 2000, a cohort change ratio was calculated by dividing the 2000 population in each age and sex group by the 1990 population in each age and sex group, but for the age group 10 years younger. The cohort change ratio captures both the “aging up” and net migration of the population by age group and sex. The same was done for the 2000 and 2010 populations and the 2005 and 2015 populations. An average of the 1990-2000, 2000-2010 and 2005-2015 cohort change ratios was applied to the 2015 population to determine the forecasted age and sex of residents over 10 years old in 2025, 2035 and 2040. The use of the overlapping 2000 to 2010 and 2005 to 2015 periods was intentional and done to better capture recent trends that may be missed by equally weighting the 1990-2000 trends. The population and cohort change ratios for Loudoun County are shown in Figure A. 4 a.k.a the Hamilton-Perry Method Loudoun County Housing Needs Assessment Appendix – Forecast Methodology Figure A. Population and Cohort Change Ratios, Loudoun County Population Cohort Change Ratios Age Sex 1990 2000 2005 2010 2015 1990-2000 2000-2010 2005-2015 Average <5 Male 3,829 8,382 13,067 13,986 14,541 N/A N/A N/A N/A 5-9 Male 3,408 7,724 10,961 14,712 16,485 N/A N/A N/A N/A 10-14 Male 2,903 6,372 9,867 12,730 16,110 1.66 1.52 1.23 1.47 15-19 Male 2,813 4,701 7,551 9,957 12,871 1.38 1.29 1.17 1.28 20-24 Male 2,818 3,375 5,652 6,516 9,414 1.16 1.02 0.95 1.05 25-29 Male 4,371 5,861 8,004 8,923 9,463 2.08 1.90 1.25 1.74 30-34 Male 4,707 8,440 11,815 11,418 13,352 3.00 3.38 2.36 2.91 35-39 Male 4,100 9,891 12,995 14,545 15,806 2.26 2.48 1.97 2.24 40-44 Male 3,735 8,134 12,835 14,697 16,682 1.73 1.74 1.41 1.63 45-49 Male 3,109 6,031 10,224 13,915 15,611 1.47 1.41 1.20 1.36 50-54 Male 2,136 5,051 7,465 10,576 14,478 1.35 1.30 1.13 1.26 55-59 Male 1,641 3,611 5,883 7,429 10,639 1.16 1.23 1.04 1.14 60-64 Male 1,164 2,221 3,826 5,772 7,293 1.04 1.14 0.98 1.05 65-69 Male 780 1,492 2,283 3,565 5,379 0.91 0.99 0.91 0.94 70-74 Male 547 1,056 1,430 2,116 3,487 0.91 0.95 0.91 0.92 75-79 Male 383 737 1,057 1,537 2,202 0.94 1.03 0.96 0.98 80-84 Male 228 476 692 917 1,443 0.87 0.87 1.01 0.92 85+ Male 142 282 500 767 1,237 0.37 0.51 0.55 0.48 <5 Female 3,784 8,079 12,446 13,552 13,568 N/A N/A N/A N/A 5-9 Female 3,212 7,545 10,885 14,286 15,662 N/A N/A N/A N/A 10-14 Female 2,759 6,166 9,650 12,543 15,810 1.63 1.55 1.27 1.48 15-19 Female 2,672 4,330 7,071 9,276 12,480 1.35 1.23 1.15 1.24 20-24 Female 2,900 3,533 5,459 6,204 9,168 1.28 1.01 0.95 1.08 25-29 Female 4,519 6,444 8,770 9,894 9,738 2.41 2.28 1.38 2.02 30-34 Female 4,739 9,175 12,673 13,248 14,473 3.16 3.75 2.65 3.19 35-39 Female 4,242 9,926 13,446 14,845 16,815 2.20 2.30 1.92 2.14 40-44 Female 3,805 8,135 12,980 14,866 16,455 1.72 1.62 1.30 1.55 45-49 Female 2,989 6,115 10,046 13,826 15,670 1.44 1.39 1.17 1.33 50-54 Female 1,966 5,035 7,493 10,535 13,846 1.32 1.30 1.07 1.23 55-59 Female 1,451 3,616 6,057 7,738 10,555 1.21 1.27 1.05 1.18 60-64 Female 1,134 2,168 3,924 5,897 7,600 1.10 1.17 1.01 1.10 65-69 Female 957 1,552 2,445 4,048 5,851 1.07 1.12 0.97 1.05 70-74 Female 772 1,302 1,757 2,512 4,328 1.15 1.16 1.10 1.14 75-79 Female 577 1,113 1,514 1,938 2,836 1.16 1.25 1.16 1.19 80-84 Female 432 817 1,200 1,507 2,026 1.06 1.16 1.15 1.12 85+ Female 405 711 986 1,518 2,255 0.50 0.57 0.61 0.56 Source: U.S. Census Bureau Loudoun County Housing Needs Assessment Appendix – Forecast Methodology To determine the future number of children under ten years old, a ratio of number of children under ten to the number of women between 20 and 44 years old was calculated for 1990, 2000, 2005, 2010 and 2015. The average of this ratio was applied to the forecasted number of women between 20 and 44 years old to estimate the number of children. The child generations rates for Loudoun County are shown in Figure B. Figure B. Ratio of Females Aged 20-44 to Children <10 years old, i.e. Child Generation Rates, Loudoun County Ratio 1990 0.70 2000 0.85 2010 0.96 2015 0.90 Average 0.85 Source: U.S. Census Bureau Overall population forecasts from the Round 9.0 Cooperative Forecast from Metropolitan Washington Council of Governments (MWCOG) were used to control each forecast. Because the cohort change method relies exclusively on past trends, fast growing areas are predicted to grow at a similarly high rate, indefinitely. As a result, the growth rate resulting from the above cohort change method was 20-60 percent higher than is projected by MWCOG. The difference is largely due to fast growth among the working-age population, which will be captured by the methodology described in Section II. Because this analysis is used to determine households without a payroll job, which will be a result both of current and future population growth, the MWCOG forecasts were used as a control. The population in each age and sex group was proportionally revised downward so that the forecasted overall population growth aligned with MWCOG 9.0. Using cohort change ratios alone for small area forecasts may lead to large percentage changes because of small absolute changes. For that reason, we then stabilized the changes by taking into account national growth forecasts. To do so, we calculated the share of the population in each age group by sex for both the individual jurisdictions and the nation in 1990, 2000, 2005 2010 and 2015. We then calculated the ratio of each age group by sex in each jurisdiction relative to the nation’s share (for example, the percentage of the Loudoun's population that is 25-29 year old and male in 2015 divided by the percentage of the U.S. population that is 25-29 year old and male in the U.S. in 2015). This relative ratio was averaged across the four periods. The average was then applied to the forecasted national share to determine the share of each jurisdiction’s population by age group and sex. The process is shown in Figure C for select years for all age groups over 15 years old. Loudoun County Housing Needs Assessment Appendix – Forecast Methodology Figure C. Distribution by Age and Sex in Loudoun County and the Nation, 1990-2015 and Forecasted Loudoun Shares National Shares Loudoun / National Loudoun Forecast Share Age Sex 1990 2015 1990 2015 2025 2030 2040 1990 2015 2025 2030 2040 15 to 19 M 3.3% 3.4% 3.7% 3.4% 3.1% 3.0% 3.0% 0.89 1.02 3.1% 3.1% 3.2% 20 to 24 M 3.3% 2.5% 3.9% 3.6% 3.3% 3.2% 3.1% 0.83 0.69 1.8% 1.6% 1.4% 25 to 29 M 5.1% 2.5% 4.3% 3.5% 3.4% 3.3% 3.1% 1.18 0.71 1.8% 1.5% 0.8% 30 to 34 M 5.5% 3.6% 4.4% 3.4% 3.6% 3.4% 3.3% 1.25 1.05 3.6% 3.2% 2.8% 35 to 39 M 4.8% 4.2% 4.0% 3.2% 3.4% 3.5% 3.3% 1.20 1.33 5.1% 5.3% 5.1% 40 to 44 M 4.3% 4.4% 3.5% 3.1% 3.2% 3.4% 3.3% 1.24 1.42 4.9% 5.2% 5.4% 45 to 49 M 3.6% 4.2% 2.7% 3.2% 3.0% 3.1% 3.4% 1.33 1.29 3.6% 3.8% 4.2% 50 to 54 M 2.5% 3.9% 2.2% 3.4% 2.8% 2.8% 3.2% 1.12 1.13 2.9% 2.9% 3.2% 55 to 59 M 1.9% 2.8% 2.0% 3.3% 2.9% 2.7% 2.9% 0.95 0.86 2.2% 2.0% 2.0% 60 to 64 M 1.4% 1.9% 2.0% 2.8% 2.9% 2.7% 2.5% 0.68 0.68 2.1% 1.9% 1.8% 65 to 69 M 0.9% 1.4% 1.8% 2.4% 2.8% 2.7% 2.4% 0.50 0.61 1.8% 1.8% 1.7% 70 to 74 M 0.6% 0.9% 1.4% 1.6% 2.2% 2.4% 2.2% 0.46 0.56 1.3% 1.4% 1.4% 75 to 79 M 0.4% 0.6% 1.0% 1.1% 1.7% 1.9% 2.1% 0.46 0.52 0.9% 1.0% 1.2% 80 to 84 M 0.3% 0.4% 0.5% 0.8% 1.0% 1.3% 1.6% 0.49 0.51 0.5% 0.6% 0.7% 85+ M 0.2% 0.3% 0.3% 0.7% 0.8% 1.0% 1.5% 0.49 0.49 0.4% 0.4% 0.7% 15 to 19 F 3.1% 3.3% 3.5% 3.2% 3.0% 2.9% 2.9% 0.89 1.04 3.0% 2.9% 3.1% 20 to 24 F 3.4% 2.4% 3.8% 3.4% 3.1% 3.0% 2.9% 0.89 0.71 1.7% 1.5% 1.2% 25 to 29 F 5.2% 2.6% 4.3% 3.4% 3.2% 3.2% 3.0% 1.23 0.75 2.0% 1.7% 1.0% 30 to 34 F 5.5% 3.9% 4.4% 3.4% 3.4% 3.3% 3.1% 1.25 1.15 4.2% 3.9% 3.6% 35 to 39 F 4.9% 4.5% 4.0% 3.2% 3.3% 3.4% 3.2% 1.22 1.41 5.2% 5.3% 5.2% 40 to 44 F 4.4% 4.4% 3.6% 3.2% 3.2% 3.3% 3.2% 1.23 1.38 4.7% 5.0% 5.1% 45 to 49 F 3.5% 4.2% 2.8% 3.3% 3.0% 3.1% 3.3% 1.23 1.27 3.7% 3.9% 4.2% 50 to 54 F 2.3% 3.7% 2.3% 3.5% 2.9% 2.9% 3.1% 0.98 1.04 2.9% 2.9% 3.2% 55 to 59 F 1.7% 2.8% 2.2% 3.5% 3.0% 2.8% 2.9% 0.76 0.81 2.4% 2.3% 2.4% 60 to 64 F 1.3% 2.0% 2.3% 3.1% 3.2% 2.8% 2.7% 0.58 0.65 2.3% 2.1% 2.0% 65 to 69 F 1.1% 1.6% 2.2% 2.6% 3.1% 3.0% 2.6% 0.50 0.59 2.0% 2.0% 1.8% 70 to 74 F 0.9% 1.2% 1.8% 1.9% 2.6% 2.8% 2.5% 0.49 0.60 1.6% 1.7% 1.6% 75 to 79 F 0.7% 0.8% 1.5% 1.4% 2.1% 2.3% 2.5% 0.45 0.54 1.1% 1.3% 1.4% 80 to 84 F 0.5% 0.5% 1.0% 1.1% 1.3% 1.7% 2.1% 0.49 0.51 0.6% 0.8% 1.0% 85+ F 0.5% 0.6% 0.9% 1.3% 1.3% 1.6% 2.4% 0.54 0.47 0.5% 0.6% 0.8% Loudoun County Housing Needs Assessment Appendix – Forecast Methodology These shares were then applied to the overall population forecasts from MWCOG. An average of the two population estimates was used to take into account both historic migration and growth patterns and national trends. I.b. Households Forecasts by Householder Age and Sex: We analyzed data from the 2012, 2013 and 2014 American Community Survey (an average of the one year microdata samples) to estimate the percentage of each age group by sex who is a householder (i.e. the head of household) (a headship rate). Figure D shows the headship rate for Loudoun County. A headship rate of zero percent means that everyone in that age and sex group lives in someone else’s household (no children run a household). A headship rate of 100 percent means that everyone in that age and sex group runs a household, or has indicated that they do on the survey. Figure D. Headship Rate, Loudoun County Age Male Female Under 5 0.0% 0.0% 5 to 9 0.0% 0.0% 10 to 14 0.0% 0.0% 15 to 19 0.3% 0.4% 20 to 24 9.6% 7.8% 25 to 29 31.0% 33.9% 30 to 34 46.2% 35.4% 35 to 39 60.8% 40.1% 40 to 44 63.7% 44.6% 45 to 49 64.1% 44.5% 50 to 54 60.8% 44.1% 55 to 59 69.6% 44.7% 60 to 64 71.0% 50.5% 65 to 69 64.3% 35.1% 70 to 74 55.8% 45.2% 75 to 79 73.1% 32.8% 80 to 84 66.8% 58.8% 85+ 59.1% 45.6% Source: U.S. Census Bureau Next, we estimated the number of people not in households, i.e. those in group quarters.5 We assumed that the population in group quarters would grow at one-third the rate of the overall population. In 2015, Loudoun had 1,302 people in group quarters and by 2040, this number is projected to be 1,426. It was assumed that the age distribution of the group quarters population would remain the same as in 2015. Next, this headship rate was applied to the forecasted population expected to be living in households by age and sex group to determine the number of households headed by each age group. 5 Per the Census definition, “A group quarters is a place where people live or stay, in a group living arrangement, that is owned or managed by an entity or organization providing housing and/or services for the residents. This is not a typical household- type living arrangement.” This includes dormitories, nursing homes with full-time medical care, correctional facilities and military barracks. Loudoun County Housing Needs Assessment Appendix – Forecast Methodology The total households were controlled to match the forecasted number of households from MWCOG, a change of less than 3 percent for the period. This was done primarily to account for any difference in the 2015 base year estimate between the American Community Survey and the Loudoun County Department of Planning and Zoning, April 15, 2016 Estimate Series. I.c. Non-worker Household Forecasts: The age and sex of the household head is correlated with the workforce status of the household. Again using the 2012, 2013 and 2014 American Community Surveys, the current percentage of households without a payroll job based on the householder’s age group and sex was calculated, as shown in Figure E. This percentage was applied to the forecasted households by the householder’s age group and sex. Figure E. Percent of Households without a Payroll Job, Loudoun County Age Male Female 15 to 19 0% 0% 20 to 24 20% 4% 25 to 29 1% 0% 30 to 34 0% 4% 35 to 39 1% 1% 40 to 44 3% 3% 45 to 49 1% 6% 50 to 54 6% 4% 55 to 59 11% 7% 60 to 64 18% 12% 65 to 69 32% 43% 70 to 74 46% 58% 75 to 79 80% 77% 80 to 84 58% 72% 85+ 83% 80% Source: U.S. Census Bureau I.d. Non-worker Household Forecasts AMI and Unit Type: Lastly, the age and sex of the future non-working householder is assumed to drive the household’s AMI, housing unit and other characteristics. From the 2012, 2013 and 2014 American Community Surveys, the share of current non-working households in each AMI group and unit type was calculated for each age group by sex. These shares were then applied to the forecasted households by householder age group and sex to distribute all non-working households by AMI, unit type, household size and disability status. For example, almost one-fifth (18.1 percent) of non-worker households headed by a female aged 75 to 79 years old earned between 10 and 19.9 percent of AMI in Loudoun during the 2012, 2013 and 2014 period. As shown in Figure F, a total of 7.2 percent of the households in this age and sex group owned a single- family detached home and earned between 10 and 19.9 percent of AMI. These calculations were done for each age group by sex. In the future, it is assumed that this will also be the case, with the AMI and unit type demanded being driven by the age and sex of the householder. Loudoun County Housing Needs Assessment Appendix – Forecast Methodology Figure F. Households Without a Payroll Job Headed by a Female Aged 75-79 Years Old by Unit Type and AMI Group, Loudoun County Share Earning 10-19.9% of AMI Single-Family Detached, Owner 7.2% Single-Family Detached, Renter 4.2% Single-Family Attached, Owner 0.0% Single-Family Attached, Renter 3.1% Multi-Family, Owner 2.7% Multi-Family, Renter 0.8% Total, Earning 10-19.9% of AMI 18.1% All Other AMI Groups 81.9% Loudoun County Housing Needs Assessment Appendix – Forecast Methodology II. Estimating Household Growth and Housing Demand for Net New Workers and Replacement Workers II.a. Determine regional job growth by industry: In this analysis, future job growth has two components: 1) net new job growth and 2) jobs vacated by retirees. Both components were forecasted for the greater Washington DC region. Retirement is included in this analysis because it is assumed that a new worker will be needed somewhere within the industry, typically at a lower level, as current workers "cycle up" to fill the position vacated by the retirement. Net new job growth: IHS Economics provides job forecasts for 12 main industry sectors: construction, natural resources, and mining; manufacturing; transportation, trade and utilities; information; financial activities; professional and business services; education and health services; leisure and hospitality; other services; federal government; state and local government; and military. The forecasts were adjusted if they differed significantly from those produced by MWCOG, as was the case for Loudoun County. The IHS Economics forecasts have historically over-estimated the employment growth in Loudoun County and differ significantly from the MWCOG projections, as shown in Figure I. Figure G. Total Jobs, Loudoun County MWCOG Round 9.0 IHS Economics Final 2015 N/A 156,339 156,339 2015 164,200 163,094 160,258 2020 188,000 207,869 183,486 2025 211,000 267,788 205,934 2030 235,500 324,896 229,846 2035 255,600 374,297 249,463 2040 273,900 430,937 267,324 If the IHS Economics forecasts differed significantly, as in the case for Loudoun, the overall employment growth rate from MWCOG was applied to the IHS Economics 2014 base, which was the last year of IHS data based on public sources (also shown in Figure G). Then, the distribution by sector from IHS Economics was applied. Jobs vacated by retirees: The 2012, 2013, and 2014 American Community Survey microdata were used to calculate the labor force participation rate for each 5-year age group for the population over 55 years old in the Washington DC Metropolitan Area. Retirees younger than 55 years old were excluded because they may be more likely to re-enter the workforce. Next, 2012, 2013, and 2014 American Community Survey microdata was used to determine the number of workers who were likely to retire in the next decade and the industry of these workers. These needs were then combined to determine the total need by industry. The totals for Loudoun County are shown in Figure H. Loudoun County Housing Needs Assessment Appendix – Forecast Methodology Figure H. Net New Jobs and Retirement Positions, Loudoun County, 2015-2040 Net New Jobs Retirees Total Positions Professional & Business Services 49,687 4,342 54,029 Transportation, Trade, & Utilities 8,099 6,073 14,171 State & Local Government 9,904 3,380 13,284 Construction, Natural Resources, and Mining 6,404 6,355 12,759 Educational & Health Services 10,068 2,482 12,549 Leisure & Hospitality 9,219 1,509 10,728 Information 6,900 622 7,522 Other Services 3,103 2,925 6,028 Federal Government 889 3,572 4,461 Financial Activities 2,505 1,703 4,208 Manufacturing 289 1,765 2,054 Total 107,066 34,729 141,795 Source: IHS Economics, Round 9.0 Cooperative Forecast from Metropolitan Washington Council of Governments, U.S. Census Bureau, GMU Center for Regional Analysis, Lisa Sturtevant & Associates, LLC II.b. Assign new jobs to workers by age category: The first step in moving from new jobs to housing demand is to estimate the age distribution of the new workers. In other words, for each jurisdiction, we assigned some share of new workers in each sector to one of five age groups: under 35, 35-44, 45-54, 55-64 or 65+. We assumed no new workers were aged 65 or older. For replacement workers, it is assumed that for more senior positions, the majority of the workers directly filling the job are already in the region and in the same industry. So, as workers in senior positions retire, their jobs will be filled by another worker in the region, leaving a more junior position vacant, which will be filled by a younger worker. The demand for different types of housing is associated with individuals’ ages and new workers will be younger than the existing workforce. The age distribution is also important for estimating the AMI, as the age of the worker is instrumental in determining his or her wage and household type. We analyzed data from the 2012, 2013 and 2014 American Community Survey microdata to estimate the age distribution of current workers for each industry sector. We then adjusted the age distribution to account for the fact that new workers would be younger by analyzing 2012, 2013, and 2014 ACS data on the age distribution of workers who had recently moved to the region (movers). Figure I shows the age distribution of workers and movers who work in Loudoun County. Through this analysis, we found that recent movers to Loudoun County were about 92% more likely to be under 34 than existing residents. All other age groups were less likely to be movers: 35-44 (30 percent less likely), 45-54 (60 percent less likely), 55-64 (68 percent less likely), 65+ (39 percent less likely). Loudoun County Housing Needs Assessment Appendix – Forecast Methodology Figure I. Workers by Age and Movers, Loudoun County Workers by Age Workers Who Moved in the Past 12 Months by Age Mover Ratio Number Share of Total Number Share of Total <35 51,980 34.7% 7,753 66.7% 1.92 35-44 37,330 24.9% 2,023 17.4% 0.70 45-54 36,428 24.3% 1,131 9.7% 0.40 55-64 18,429 12.3% 459 3.9% 0.32 65+ 5,540 3.7% 260 2.2% 0.61 Total 149,706 100.0% 11,626 100.0% 1.00 We applied these ratios to the age distribution of existing workers who had earned a wage in each jurisdiction to create an age distribution for new workers. The recent mover ratio was applied to those under 35 first. In some cases, 100 percent of new workers were allocated to this age group. The workers in groups that had workers leftover were distributed among the remaining age groups proportionally, based on the mover rates. We assumed that no new workers were age 65 and older. If a sector only had current workers in one of the age groups, all new workers were allocated to that group. The resulting distribution for Loudoun County is shown in Figure J. When there were job losses in a sector, we used the same age distributions as we used for job gains, which may not be appropriate. Figure J. Current and Future Age Distribution of Workers, Loudoun County Industry Current Workers by Age Forecasted Age Distribution for New Workers <35 35-44 45-54 55-64 65+ <35 35-44 45-54 55-64 65+ Construction, Natural Resources, & Mining 35% 24% 28% 9% 4% 67% 18% 12% 3% 0% Manufacturing 22% 28% 30% 18% 2% 42% 27% 20% 10% 0% Transp., Trade, & Utilities 40% 19% 24% 13% 4% 76% 13% 10% 1% 0% Information 25% 35% 26% 12% 2% 48% 31% 15% 6% 0% Financial Activities 30% 22% 30% 11% 7% 57% 20% 18% 6% 0% Professional & Business Services 31% 29% 23% 13% 4% 60% 23% 11% 5% 0% Educational & Health Services 35% 27% 23% 12% 3% 68% 19% 9% 4% 0% Leisure & Hospitality 61% 18% 12% 7% 2% 100% 0% 0% 0% 0% Other Services 31% 26% 24% 10% 9% 59% 23% 14% 5% 0% Federal Gov’t 27% 21% 32% 13% 6% 52% 20% 21% 7% 0% State & Local Gov’t 23% 29% 28% 16% 4% 45% 27% 18% 10% 0% Loudoun County Housing Needs Assessment Appendix – Forecast Methodology Thus, for each sector in each jurisdiction, we estimated the percent of new jobs held by workers in each age group for the workers filling the new jobs that are expected during a 5- year period. During this forecast, these new workers are “aged up” in ten-year intervals to correspond with the age groups. So, the new workers forecasted to fill jobs in the 2015-2020 period will be ten years older during the 2025-2030 period (i.e. <35 year olds become 35-44, 45-54 become 55-64, and the 55-64 year olds become 65+). Combined, we have the ages of the newest workers, who will be coming to fill the jobs created in the past five years, plus the “aged up” ages of the workers who filled jobs in the earlier periods. II.c. Assign new workers to a household type: Age is a determinant of both AMI group and household type both because younger workers are more likely to have lower wage-based incomes than older workers, and they are also more likely to live alone or be in young families. For example, new workers under age 35 are more likely to live in one-person households or two adult-no children households and workers age 35 to 44 are more likely to live in households with children. For this step of the analysis, we used the 2012, 2013 and 2014 American Community Surveys to assign both an AMI group and one of 11 household types to current workers. Because this forecast is for workers only, only households with a worker are included in this step. The 11 household types are listed in Figure K. Figure K. Household Types Household Size Household Composition 1-person households 1 adult 2-person households 1 adult, 1 child 2 adults 3-person households 1 adult, 2 child 2 adults, 1 child 3 adults 4+ person households 1 adult, 3+ children 2 adults, 2+ children 3 adults, 1+ children 4+ adults / 1+ children 4+ adults These workers were then grouped by age and industry. Thus, for each jurisdiction, we assessed what percent of workers under 35 years old lived in 1 adult households, by industry, what percent lived in 2 adult households and so on. For example, Figure L shows the distribution of workers living in Loudoun County who hold a Professional & Business Service job. About a quarter of these workers under 35 years old live in 2 adult households, including both roommates, partners and married couples. As the worker ages, it is far more likely that he or she lives in a household with children, and only 10.2 percent are in two-adult households. Once the worker reaches 45 years old, the share living in two-adult households begins to rise, likely as the workers become empty-nesters. Loudoun County Housing Needs Assessment Appendix – Forecast Methodology Figure L. Distribution of Workers by Household Type and Age Group, Professional & Business Service Jobs, Loudoun County <35 35-44 45-54 55-64 1 adult 6.2% 4.6% 8.5% 14.5% 1 adult/ 1 kid 0.5% 1.6% 1.2% 1.2% 2 adults 25.9% 10.2% 18.1% 47.2% 1 adult/ 2 kids 0.3% 0.9% 1.5% 0.0% 2 adults/ 1 kid 16.2% 17.5% 15.9% 5.1% 3 adults 9.0% 2.9% 9.7% 15.2% 1 adult/ 3+ kids 0.7% 0.7% 0.2% 0.0% 2 adults/ 2+ kids 17.4% 48.3% 24.4% 0.4% 3 adults/ 1+ kids 5.9% 7.0% 10.7% 6.2% 4+ adults 11.7% 1.4% 4.5% 7.9% 4+ adults/ 1+ kids 6.2% 4.9% 5.2% 2.3% Total 100.0% 100.0% 100.0% 100.0% II.d. Assign new workers to an AMI group and determine the number of households Next, we used the household type and industry of each worker to determine the distribution of each household by AMI using ten percent intervals between 0 and 200 percent of AMI and an additional AMI group for all households earning more than 200 percent AMI. The AMI is dependent upon both the household size and the industry of each worker, so both are used to estimate the number of workers by AMI group and household type. i) Using the 2012, 2013 and 2014 American Community Survey, the distribution of the AMI groups of current workers by both industry and household was calculated. If a quarter of construction workers in 1 adult households earn between 30 and 39 percent of AMI, then 30% will do so in the future.6 For example, among workers living in Loudoun and working in the Professional & Business Service Sector, 18.9 percent of single-person households earn more than 200 percent of AMI. Among two-adult households, this share rises to 46.7 percent (Figure M). 6The future median income is adjusted so that approximately half the households in the region earn below it and half earn above it. Any shifts in the future distribution are used to update the area median income groups. Loudoun County Housing Needs Assessment Appendix – Forecast Methodology Figure M. Distribution of Workers by Household Type and AMI Group, Professional & Business Service Jobs, Loudoun County 1 Person Household 2 Adult Household 0-9 AMI 0.9% 0.0% 10-19 AMI 2.5% 0.0% 20-29 AMI 1.4% 0.0% 30-39 AMI 1.5% 0.0% 40-49 AMI 2.5% 1.0% 50-59 AMI 5.1% 3.8% 60-69 AMI 8.2% 1.7% 70-79 AMI 2.7% 3.2% 80-89 AMI 3.5% 1.5% 90-99 AMI 8.4% 1.9% 100-109 AMI 6.4% 1.9% 110-119 AMI 4.7% 1.6% 120-129 AMI 5.7% 3.5% 130-139 AMI 6.3% 2.3% 140-149 AMI 3.5% 6.2% 150-159 AMI 6.2% 5.5% 160-169 AMI 4.0% 4.7% 170-179 AMI 2.6% 6.2% 180-189 AMI 3.0% 3.2% 190-199 AMI 2.1% 5.1% 200+ AMI 18.9% 46.7% ii) Next, we determined the number of households formed by these workers. The average number of workers in each of the 11 household types by AMI group is used to convert workers into households. The average number of workers in each household type, AMI group and available jurisdiction was calculated using the 2012, 2013 and 2014 American Community Surveys. Figure N shows the average workers per household for Loudoun households with a payroll job. Because only households with workers are included in this step, all households with a single adult must have exactly one worker. Loudoun County Housing Needs Assessment Appendix – Forecast Methodology Figure N. Average Workers per Household by AMI Group, Loudoun County 1 adult 1 adult/ 1 kid 2 adults 1 adult/ 2 kids 2 adults/ 1 kid 3 adults 1 adult/ 3+ kids 2 adults/ 2+ kids 3 adults/ 1+ kids 4+ adults 4+ adults/ 1+ kids 0-9 AMI 1.0 1.0 2.0 1.0 1.8 3.6 1.0 1.9 3.0 3.6 2.4 10-19 AMI 1.0 1.0 2.0 1.0 1.8 2.6 1.0 1.9 3.0 3.6 2.4 20-29 AMI 1.0 1.0 2.0 1.0 1.9 3.0 1.0 1.5 3.0 3.6 3.9 30-39 AMI 1.0 1.0 2.0 1.0 2.0 3.3 1.0 1.6 2.9 4.3 3.7 40-49 AMI 1.0 1.0 2.0 1.0 2.0 3.3 1.0 1.8 2.2 3.4 8.5 50-59 AMI 1.0 1.0 2.0 1.0 2.0 3.3 1.0 1.7 3.0 5.3 3.9 60-69 AMI 1.0 1.0 1.7 1.0 1.6 3.3 1.0 1.8 3.0 6.3 3.3 70-79 AMI 1.0 1.0 1.8 1.0 2.0 3.3 1.0 1.6 2.9 4.5 3.8 80-89 AMI 1.0 1.0 2.0 1.0 1.9 3.3 1.0 1.8 3.0 4.6 3.6 90-99 AMI 1.0 1.0 1.9 1.0 2.0 2.9 1.0 1.9 2.8 4.5 3.8 100-109 AMI 1.0 1.0 1.9 1.0 1.9 2.6 1.0 1.8 2.6 5.0 3.5 110-119 AMI 1.0 1.0 2.0 1.0 1.9 2.5 1.0 2.0 2.9 4.0 4.1 120-129 AMI 1.0 1.0 2.0 1.0 1.9 2.7 1.0 1.9 2.7 4.5 3.9 130-139 AMI 1.0 1.0 1.9 1.0 2.0 2.7 1.0 2.0 2.9 3.8 4.8 140-149 AMI 1.0 1.0 1.9 1.0 1.8 2.9 1.0 2.0 2.6 5.3 3.9 150-159 AMI 1.0 1.0 2.0 1.0 1.9 2.3 1.0 1.9 2.8 4.2 3.5 160-169 AMI 1.0 1.0 1.9 1.0 1.9 2.9 1.0 1.9 2.7 6.2 4.7 170-179 AMI 1.0 1.0 1.8 1.0 1.8 2.9 1.0 2.0 2.9 4.9 3.9 180-189 AMI 1.0 1.0 1.9 1.0 2.0 2.9 1.0 2.0 2.8 6.0 3.8 190-199 AMI 1.0 1.0 1.9 1.0 2.0 2.6 1.0 2.0 2.8 4.2 3.1 200+ AMI 1.0 1.0 1.9 1.0 2.0 2.8 1.0 2.0 2.9 4.4 4.4 Loudoun County Housing Needs Assessment Appendix – Forecast Methodology II.e. Assign each new household a unit type based on price/rent (AMI) level We now have a count of the number of households formed by each household type and AMI group based on the number of new jobs coming to the region. Household type and household AMI are both associated with the type of housing demand. Therefore, we use these counts to estimate the need for four different types of housing units by the AMI group. The four housing unit types are: single-family (included single- family detached and single-family attached/townhome) owner and renter, and multi-family owner and renter. We used the 2012, 2013, and 2014 ACS microdata files to run cross tabulations of housing type (i.e. four types) by household composition (i.e. 11 household types) for each of the 21 AMI groups. The results of this analysis show the current distribution of housing types for different household types and household incomes. Figure O shows the unit type distribution of select household types among Loudoun County Households earning 200 percent or more of AMI. Single adult households are less likely to own their own single-family detached home and more likely to rent a multi-family unit when compared to larger households within this same AMI group. Figure O. Unit Type by Select Household Type, 200%+ of AMI, Loudoun County 1 adult 2 adults 3 adults 2 adults/ 2+ kids Single-Family Detached, Owner 41% 63% 75% 87% Single-Family Detached, Renter 8% 1% 2% 2% Single-Family Attached, Owner 25% 28% 12% 10% Single-Family Attached, Renter 5% 3% 2% 1% Multi-Family, Owner 5% 2% 0% 1% Multi-Family, Renter 15% 3% 9% 0% Loudoun County Housing Needs Assessment Appendix – Forecast Methodology III. Analyze Regional Housing and Commuting Characteristics III.a. Determine which households “stay” in the region: The total forecasted demand exceeds the forecasted supply for the region, so commuting patterns were used to determine the households who would become in-commuters. The location of the main householder's job, the unit type and the AMI group of the household is used to determine who was most likely to live outside the region. The 2012, 2013, and 2014 American Community Survey data was used to get the current share of workers by unit type, AMI group and workplace location who commute. These were then applied to future worker households until the region-wide total could be accommodated within the region. III.b. Adjust the Median Household Income: The area median income is the level at which half of families in the region have incomes that are higher and half have incomes that are lower. The median income was re-calculated as necessary, and each component re-run so that these shares were unchanged. The HUD methodology was used to adjust the AMI group limits. The AMI adjustments were trial and error until the splits were achieved. III.c. Determine the demand for housing in Loudoun County: Commuting patterns based on workplace location of the main worker (usually the head of household), AMI group, household size and unit type were used to determine which households were most likely to demand housing in the County. For example, Figure P shows the share of households earning 200%+ AMI with a main worker in Fairfax County, Fairfax City or Falls Church City who also live in Loudoun, both by household size and unit type. Currently, 3.4 percent of people living alone, working in Fairfax, earning 200%+ AMI, renting a multi-family unit live in Loudoun. The forecasts assume that 3.4 percent of households in this profile will continue to prefer to live in Loudoun in the future. This distribution was done calculated for all 21 AMI groups and jurisdictions, or combined groups of jurisdictions, as available by Public Use Microdata Areas. Figure P. Share of Households with a Main Worker in Fairfax County, Fairfax City or Falls Church City living in Loudoun, earning 200%+ of AMI, by Housing Unit Type 1 Person 2 People 3 People 4+ People Single-Family Detached, Owner 8.3% 9.2% 15.5% 18.5% Single-Family Detached, Renter 0.0% 2.9% 4.6% 10.4% Single-Family Attached, Owner 18.2% 20.7% 17.8% 19.5% Single-Family Attached, Renter 16.0% 16.1% 0.0% 7.1% Multi-Family, Owner 4.1% 5.4% 0.0% 0.0% Multi-Family, Renter 3.4% 1.1% 28.7% 0.0% Loudoun County Housing Needs Assessment Appendix – Forecast Methodology A Note on Area Median Income Thresholds The AMI limits in this forecast use U.S. Department of Housing and Urban Development (HUD) limits and methods when forecasting. Household Size Adjustment: AMI thresholds are dependent on household size. The 100 percent AMI threshold for a 4-person household is equal to the region’s AMI and all other households are calculated using a 4-person household as the base as shown in Figure Q. AMI limits for households smaller than four people are 100 percent of the 4-person limit minus ten percent for each fewer person. AMI limits for households larger than four people are 100 percent of the 4-person limit plus eight percent for each additional person. Figure Q. FY 2015 AMI Limits, Washington DC Metro Area 1-Person 2-Person 3-Person 4-Person 5-Person 6-Person 7-Person 8-Person 70% of 4-person HH 80% of 4-person HH 90% of 4-person HH 100% 108% of 4-person HH 116% of 4-person HH 124% of 4-person HH 132% of 4-person HH Extremely Low Income Limits (30% AMI) 22,932 26,208 29,484 32,760 35,381 38,002 40,622 43,243 Very Low Income Limits (50% AMI) 38,220 43,680 49,140 54,600 58,968 63,336 67,704 72,072 Low Income Limits (80% AMI) 61,152 69,888 78,624 87,360 94,349 101,338 108,326 115,315 100% AMI 76,440 87,360 98,280 109,200 117,936 126,672 135,408 144,144 120% AMI 91,728 104,832 117,936 131,040 141,523 152,006 162,490 172,973 Source: U.S. Department of Housing and Urban Development Income Limit Adjustments: After establishing the 100 percent AMI limits for each household size, each 10 percent interval up to 200 percent of AMI are calculated. Unlike the HUD estimates, the limits were not rounded up to the nearest $50. This method was used when forecasting these AMI limits. The forecasts assume that other adjustments considered by HUD for these AMI groups, including ceilings or floors, are not applicable . Loudoun County Housing Needs Assessment Appendix – Forecast Methodology A Note on Geography Figure R shows the Washington Metropolitan Statistical Area, which is used within the Employment section. Figure R. Washington DC Metropolitan Statistical Area A wider region was used for the forecast area, both for jobs and households, as shown in Figure S. The Winchester region and additional counties in West Virginia and Virginia were added to ensure that the full employment shed for future Loudoun workers was used. Loudoun County Housing Needs Assessment Appendix – Forecast Methodology Figure S. Greater Washington DC Region