Construction at Marsh Street Commons.
The availability of workforce housing is consistently one of the top challenges for employees and employers alike in San Luis Obispo County.
A new survey conducted by the Building Design & Construction cluster by the Economic Vitality Corporation (EVC) provides some new insight. Notably, it found that 88 percent of employees and 83 percent of employers find it difficult to obtain suitable and affordable housing in the county.
The report also found that 63 percent of employees vs. 80 percent of employers own their own homes. Approximately two-thirds of the renters in both groups stated a preference for home ownership. Employees also make more compromises than employers when it comes to where they live versus where they work, with employees having longer commutes.
The results of the survey reflected mixed responses about the need for multi-family homes and mixed use properties. While more employers responded that mixed use developments were acceptable for renters and buyers, employees found multi-family homes more desirable. The majority of both groups want three bedrooms, two bathrooms and two garage spaces instead of on-street parking.
The San Luis Obispo Chamber of Commerce has formed its own Land Use and Circulation Element (LUCE) task force to parallel the city’s efforts to plan the next 20 years for development and traffic circulation.
“The Chamber continues to advocate within the LUCE process for the residential needs that will be necessary to align with job creation”, said Ermina Karim, President/CEO of the SLO Chamber. “Our support of primary job creation can only be successful if planning for an increased supply of workforce housing choice for employees and employers and an investment in the necessary infrastructure is included in the process.”
Even with the high housing cost most respondents said that they are unlikely to move out of the county in the next few years, however 27 percent of employees and 11 percent of employers say they are likely to move out of county in the near future. They cited the cost of living as the most significant driver in this decision.
“Understanding the types of housing the market will support, multi-generational housing needs, and other factors impacting our housing choices will help to inform land use and resource planning decisions in the future,” said Christine Rogers, program manager at the EVC. “It is hoped that the information provided through this project will become a valuable resource as we look to the future.”
Earlier this year the SLO Chamber released the findings of its 2012 Technology Survey which found housing costs to be a meaningful obstacle to recruiting employees and therefore a hindrance to tech sector growth. The EVC’s survey found the same results.
“In a marketplace that is increasingly globally competitive, the ability to recruit the talented workforce many of our local companies require, particularly in the manufacturing and technological industries, is becoming more challenging,” Rogers said. “As a desirable coastal area, land costs can exceed affordability for a large portion of our workforce. These factors make housing choices more critical.”
San Luis Obispo city has seen recent action in the housing market with a number of stalled developments now moving forward including projects in the downtown, Margarita and Orcutt areas.
Serra Meadows, a planned development of 177 homes, is currently under construction with 14 of the first 17 homes already reserved. Marsh Street Commons, a mixed-use development including eight single family homes and four two-bedroom lofts in downtown SLO, has all 12 residences in escrow.
The EVC report is based on the findings from 467 working county residents who completed the online survey between October 2011 and January 2012.
To view the Workforce Housing Survey report click here.