7.3 HRSR 01-04-2016 - Laserfiche WebLink

Home Browse Search

HOUSING DEMAND ANALYSIS Consumer Choice/Preferences A variety of factors contribute to consumer choice and preferenc family status is the primary factor for a change in housing type- nest families, etc.). However, housing demand is also generated the turnover of existing households who decide to move for a range of reasons. Some hous- up, downsize, change their tenure status (i.e. owner to renter o a new location. Supply (Existing Housing Stock) The stock of existing housing plays a crucial component in the d are a variety of unique household types and styles, not all of w consumers. The age of the housing stock is an important component for housing demand, as communities with aging housing stocks have higher demand for rem replacement new construction, or new home construction as the cu provide the supply that consumers seek. Pent-up demand may also exist if supply is unavailable as householders postpo new housing product becomes available. Housing Finance Household income is the fundamental measure that dictates what a pay for housing costs. According to the U.S. Department of Housing and Urban Developmen (HUD), the definition of affordability is for a household to pay income on housing (including utilities). Families who pay more than 30% of their income for housing (either rent or mortgage) are considered cost burdened an affording necessities such as food, clothing, transportation and The ability of buyers to obtain mortgage financing has been incr the Great Recession as lenders have overcorrected from the subprime many borrowers have remained on the sidelines as lenders have en requirements, thereby increasing the demand for rental housing. Mobility It is important to note that demand is somewhat fluid between ot communities and will be impacted by development activity in near communities outside Sherburne County. 82 MAXFIELD RESEARCH & CONSULTING, LLC