Housing Needs Summary
2.1 Introduction
The primary goal of the housing element is to ensure adequate housing for all of Hayward’s present and future residents. Housing needs are determined by the City’s population and its existing housing stock. An assessment of the demographic, socioeconomic, and housing characteristics in Hayward is required to help the City effectively target its programs and resources toward households with the greatest need. This chapter discusses the characteristics of Hayward’s population and housing stock to identify the extent and context of unmet housing needs in the city.
2.2 Population Trends
Hayward’s population is both growing and shifting. Since 1990, Hayward’s population grew by 44 percent. Along with the increase in population size, Hayward has become increasingly diverse. Groups with the largest percent growth are Hispanic/Latino, followed by Asian residents. In addition to the diversification of the population, age groups have also shifted. From 2000 to 2019, older aged adults 65+ have increased by 35 percent. Adults aged 35-64 also grew by 27 percent, marking a steady increase of median age of 31.9 in 2000, to 35.5 in 2019. Conversely, those under 5 years old dropped by almost 13 percent. In addition, those aged 5-19 years decreased by nearly 8 percent. Residents in Hayward are typically increasing in age, while the City’s younger age groups are also steadily declining.
2.3 Employment Trends
Housing affordability should be informed by the types of jobs and income levels of those residing in Hayward. Housing that meets the needs of local residents is important for increasing the quality of life by reducing commute times to travel to and from work destinations. Incomes associated with different types of jobs and the number of workers in a household determines the type and size of housing a household can afford. Those earning more at higher-paying jobs can afford broader housing opportunities, while those with lower-paying jobs have limited housing options. In addition, employment growth can increase the housing needs and demand.
With proximity to major transportation corridors to major firms throughout the San Francisco Bay region, Hayward is attractive to major firms in bio-medical and industrial corporations like Baxter Bio Pharma, Illumina, Plastikon Industries Inc., and Kobe Precision among others. In addition, public employers are popular employers including the Alameda County Sheriff’s Department, California State University East Bay, Hayward Unified School District and the City of Hayward.
In recent years, employment trends are changing. From 2000 to 2019, the manufacturing sector fell by 5 percent, whereas the education/health/services sector had overtaken manufacturing as the largest percentage of workers in the city. Nearly one-third of the residents are employed in either education/health/services or professional services. Hayward's Economy By The Numbers.
2.4 Housing Stock
Growth in population is outpacing the available housing stock in Hayward. From 2000 to 2019, the number of housing units built grew by 9 percent while the total population grew by nearly 18 percent. The term “tenure” refers to whether a unit is owned or rented. typically Since the 1990s, there has been a steady decline in construction of units is ownership development. This indicates that supply is not keeping pace with demand, and that a large portion of housing is likely in need for rehabilitation or repair due to gradual physical deterioration over time because housing over 30 years old is more likely to have rehabilitation needs. Additionally, over 56 percent of the housing units built since 2000 has been ownership housing resulting in fewer housing opportunities for households where homeownership is inaccessible.
2.5 Household Characteristics
Household composition also influences the housing needs of a community. Individuals living alone have different needs than families who require more space or larger housing units. Though the number of households has remained relatively constant since 2010, family households married with children declined by 13 percent from 2000 to 2019, while single-person households increased by nearly 16 percent in this timeframe. In addition, only 20 percent of the rental units in the City are 3 bedrooms or more while 79 percent of ownership housing is 3 bedrooms or more. The lack of rental housing for large families contributes to overcrowding.
Households may also experience varying difficulties in affordability and housing problems based on tenure. Slightly less than half of Hayward’s households are renters. Renters are more vulnerable to housing issues and are often the first to be priced out of communities, experience cost burden, or be forced into households in overcrowded or substandard conditions. To alleviate rising costs, households double-up or rent rooms, which results in overcrowding. In part, this is due to increasing rents over time, as opposed to homeowners locking in monthly payments for the duration of the mortgage as they build equity. Stagnant and low-income wages coupled with increasing rents decreases disposable income to meet basic needs and save for financial goals which exacerbates the wealth gap between renters and homeowners. In addition, overcrowding tends to accelerate the physical deterioration of housing.
2.6 Housing Affordability
From 2015 to 2020, home values increased by 41 percent, and median monthly rent is commonly above $2,000 per month. These costs are out of reach for residents, specifically those with very low income or low income. As a result of high home values and rents, residents have less to spend on other basic necessities. For housing to be affordable, a household should not pay more than 30 percent of their pre-tax income on housing. If households spend more than 30 percent on housing, they are cost burdened. Similarly, households paying 50 percent or more of their income on housing are considered to be severely cost-burdened. Being overburdened by rent can lead to overcrowding, substandard living situations, and lack of money to spend on basic necessities such as food, education, or healthcare. Across all income levels, renters that are severely cost-burdened comprise a higher percentage of households than homeowners that are severely cost-burdened. In Hayward, half of renters are cost burdened, compared to 30 percent of household owners that are cost burdened.
ALAMEDA | |
---|---|
Townhouse | |
Medium sales price: | $834,800 |
Annual income needed to afford mortgage: | $161,350 |
Single-Family | |
Medium sales price: | $1,204,300 |
Annual income needed to afford mortgage: | $229,220 |
2.7 Special Groups
Certain segments of the population may face more difficulty in finding decent, affordable housing due to their needs and circumstances. Special needs may be related to employment and income, family characteristics, disability, or household characteristics. Special accommodations may be required for these groups such as on-site supportive services, or unique building design. For example, many seniors live on a fixed income, making it difficult for seniors to maintain housing as rents increase. Single-parent households, most of which are female-headed, require special considerations because they often experience a higher housing cost burden relative dual income households.
Considerations for special groups including seniors, single-parent households, people living with disabilities, people living below the poverty line, and college students should be taken to ensure housing opportunities are created that meet their needs. Large households are those with 5 or more persons living in the household, and often find it difficult to find housing that accommodates the necessary number of bedrooms if the housing market does not meet their needs. This can lead to overcrowding for these larger households. These special groups may be assisted by an increase of affordable housing especially near services such as community centers, grocery stores, commercial businesses, and public transportation.
In Hayward, 27 percent of households are senior headed households, 25 percent are female-headed single family households, 19 percent are large households, and around 9 percent have disabilities, around 9 percent are living in poverty, and around 9 percent are students.
2.8 Disparate Impacts
Historically, racist lending and property insurance policies, zoning requirements, and criminal records policies have excluded people from housing opportunities and choices solely based on a person’s race or color of their skin. Today, these discriminatory practices are referred to as disparate impacts, and are still prevalent today and further discriminate against someone’s disability, religion, sexual orientation, or familial status. The Fair Housing Act prohibits discrimination in housing and housing-related services and works to ensure that every person be treated with respect and dignity and ultimately have an equal right to housing.