2017 Regional Housing Study: Housing & Regional Trends
The Lake of the Ozarks Regional Housing Study represents an in-depth study of the housing conditions in Camden, Miller and Morgan counties, as well as Laclede County. Building on the population and economic characteristics we discussed in last month's blog, today we dive into household size and other household characteristics.
Households around the Lake of the Ozarks region tend to be smaller, reflecting the older median age and the type of housing these populations demand. Young families are locating in the population centers and rural areas off of the Lake. A region's occupancy and housing age can tell a lot about the makeup of the housing market, gaps and opportunities.
Occupancy
Most of the rental housing for the Lake of the Ozarks region's workforce is located within the population centers of Versailles, Camdenton, Lebanon and some in Osage Beach and Eldon. Vacancy rates in the region are much higher than traditional markets would experience, but this is driven by the large number of seasonally occupied housing units. These seasonally vacant units impact owner-occupied second homes and units that are leased out on long and short term basis. The rents that seasonal units can demand also impact the cost of housing for permanent residents during the summer months.
Housing Age
The median age of structures is generally younger across the entire region. The oldest housing in the region has a median age of 45 years. For most rural areas, the median age of housing is closer to 50-60 years of age. Significant building activity was taking place in the last 30 years across the region.
Median home values have a fairly significant variation across the county from a low of $65,000 in Versailles to a high of $240,000 in the Village of the Four Seasons area. Home values around the Lake are the highest in the region. Natural features, such as the hilly terrain and depth to bedrock, increase the cost of water, sewer and road services, and foundational construction costs. These factors are important when considering appropriate locations for more affordable housing. Home values in communities away from the lake are well below construction costs. Home values in the rural areas seem to be fairly strong as populations have remained high and even grown. Values within the Lake communities are slightly higher and likely force many of the service workers employed in the area to drive substantially farther than other workers. Incomes and median home values would indicate that housing if fairly affordable. On the rental side of the market, rates around the Lake are naturally higher, driven by seasonal rentals and the demand to be close to the Lake. In addition, the cost of construction and maintenance of rental units has continued to increase, just as new home construction has increased. While many households can afford this higher rent situation, they still struggle to meet the credit requirements or stable income necessary to qualify for traditional home loans, creating a demand for quality rental housing.
To understand our regional housing market, we have to look at more than just census numbers and maps. Therefore, input from local residents, realtors, builders and the financial community was gathered through meetings and surveys. Respondents of the surveys lived in various areas of the region and ranged from 30-60+, with a very low percentage of 18-29 year olds. Of the respondents, 91% own their own home. These were their perspectives:
Stakeholder Groups
The housing study process included focus group meetings with local experts from financial institutions, builders and developers, real estate agents, business representatives and major employers, public sector and landlords. Below are some of the broad themes of the meetings:
To view the complete study, visit: http://loredc.com/pdfs/2016_10-19%20Lake%20of%20the%20Ozarks%20Housing%20Study_Web.pdf.
If you're interested in joining the growing community at the Lake of the Ozarks, the Lake of the Ozarks Regional Economic Development Council can help! We're here to serve as your liaison for Lake of the Ozarks area. Our goal is to make your site search as easy as possible and to provide you with all the information and resources you need to consider our community during your site search. We can also assist you with most aspects of relocating your business to the Lake of the Ozarks and we encourage you to visit our website or call us at 573-569-7420.
Housing & Household Assessments
Households around the Lake of the Ozarks region tend to be smaller, reflecting the older median age and the type of housing these populations demand. Young families are locating in the population centers and rural areas off of the Lake. A region's occupancy and housing age can tell a lot about the makeup of the housing market, gaps and opportunities.
Occupancy
Most of the rental housing for the Lake of the Ozarks region's workforce is located within the population centers of Versailles, Camdenton, Lebanon and some in Osage Beach and Eldon. Vacancy rates in the region are much higher than traditional markets would experience, but this is driven by the large number of seasonally occupied housing units. These seasonally vacant units impact owner-occupied second homes and units that are leased out on long and short term basis. The rents that seasonal units can demand also impact the cost of housing for permanent residents during the summer months.
Housing Age
The median age of structures is generally younger across the entire region. The oldest housing in the region has a median age of 45 years. For most rural areas, the median age of housing is closer to 50-60 years of age. Significant building activity was taking place in the last 30 years across the region.
Housing Costs
Median home values have a fairly significant variation across the county from a low of $65,000 in Versailles to a high of $240,000 in the Village of the Four Seasons area. Home values around the Lake are the highest in the region. Natural features, such as the hilly terrain and depth to bedrock, increase the cost of water, sewer and road services, and foundational construction costs. These factors are important when considering appropriate locations for more affordable housing. Home values in communities away from the lake are well below construction costs. Home values in the rural areas seem to be fairly strong as populations have remained high and even grown. Values within the Lake communities are slightly higher and likely force many of the service workers employed in the area to drive substantially farther than other workers. Incomes and median home values would indicate that housing if fairly affordable. On the rental side of the market, rates around the Lake are naturally higher, driven by seasonal rentals and the demand to be close to the Lake. In addition, the cost of construction and maintenance of rental units has continued to increase, just as new home construction has increased. While many households can afford this higher rent situation, they still struggle to meet the credit requirements or stable income necessary to qualify for traditional home loans, creating a demand for quality rental housing.
Regional Trends
To understand our regional housing market, we have to look at more than just census numbers and maps. Therefore, input from local residents, realtors, builders and the financial community was gathered through meetings and surveys. Respondents of the surveys lived in various areas of the region and ranged from 30-60+, with a very low percentage of 18-29 year olds. Of the respondents, 91% own their own home. These were their perspectives:
- Over 50% of respondents felt that the current housing does not meet the needs of young families, multi-generational families and the elderly.
- Most respondents identified the type of housing that would be appealing to young families and seniors as products with the greatest potential. These included mid- and small-sized homes, independent senior living, apartments and townhomes.
- For seniors looking to live off of the Lake, respondents felt that owner-occupied homes with shared services (lawn and snow) and apartments with optional services (food, laundry, etc.) would be successful.
- Property maintenance
- Gaps in the housing market from the workforce survey. Homes off of the Lake appeal to young families and a share of seniors.
- Issues related to city and county zoning regulations. This includes under enforcement, inconsistent enforcement and concern about location of higher density zoning.
- The economy and jobs, especially the need for better paying jobs that can support quality housing.
- The gap in the rental market and the need to provide adequate housing for the region's workforce.
Stakeholder Groups
The housing study process included focus group meetings with local experts from financial institutions, builders and developers, real estate agents, business representatives and major employers, public sector and landlords. Below are some of the broad themes of the meetings:
- Workforce Housing - There's a significant demand for adequate housing that meets the needs of entry level workers, as well as housing that meets the diverse workforce.
- Infrastructure - Infrastructure is what drives the cost of housing. Funding the installation and maintenance of this infrastructure is a challenge for cities without good funding sources. Currently, most infrastructure is installed by the development community with no way to offset high costs due to terrain and geology. These challenges make it difficult the bring more affordable lots to the market.
- New Development Areas - The lack of "buildable" lots was identified as an issue for contractors and developers. While there is a supply of lots, many have slop, access and infrastructure issues that push the final cost to price points well of out range for the regional's workforce.
- Rental or Transitional Housing - New residents to the area and young adults first entering the housing market traditionally gravitate to the rental market. Over the past 20 years, the rental or multi-family market has frequently focused on seasonal units that tend to be out of the price range of most workers or are only available in the off-season.
- Rehabilitation - The ability or interest in rehabilitation of existing housing has been slow in the communities further away from the Lake. The low value of existing housing and economic capacity are likely the most common reasons. When rehabilitation will cost more than the final appraisal of the property, there is little to no motivation to invest in housing stock.
To view the complete study, visit: http://loredc.com/pdfs/2016_10-19%20Lake%20of%20the%20Ozarks%20Housing%20Study_Web.pdf.
Lake of the Ozarks - Your Strategy for Business Growth
If you're interested in joining the growing community at the Lake of the Ozarks, the Lake of the Ozarks Regional Economic Development Council can help! We're here to serve as your liaison for Lake of the Ozarks area. Our goal is to make your site search as easy as possible and to provide you with all the information and resources you need to consider our community during your site search. We can also assist you with most aspects of relocating your business to the Lake of the Ozarks and we encourage you to visit our website or call us at 573-569-7420.
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