Report projects future housing needs for young adults, seniors

Handicapped-accessible and affordable units may be in demand in region

New London — A new assessment for southeastern Connecticut urges housing developers to plan units that are affordable, handicapped-accessible, and close to amenities or neighborhood centers.

“As baby boomers age into retirement and consider downsizing, along come the millennials, with different housing preferences altogether,” said Norton Wheeler, chairman of the Southeastern Connecticut Housing Alliance.

The Southeastern Connecticut Council of Governments and SECHA on Monday released their 2018 housing needs assessment for the 22 towns they represent.

They presented the findings at Connecticut College on Monday night and will give another presentation at Otis Library in Norwich at 9 a.m. Thursday.

SCCOG prepared the study for SECHA, with funding from the U.S. Department of Housing and Urban Development. The basis for the study is population projections from the Connecticut State Data Center.

The study details current housing challenges, housing demand projections, trends affecting housing and regional capacity for new housing.

It estimates that the number of households in the region will increase by 7,200, or 6.3 percent, from 2015 to 2030.

Data suggests that the need for housing will grow faster than the population, as baby boomers become empty-nesters, and as housing preferences change.

As they struggle with skyrocketing student debt and delay marriage later than previous generations, millennials are putting off home ownership, indicating an increased need for rental units.

“Lots of people are occupying high-cost housing that don’t earn enough to really be able to afford that housing.”

AMANDA KENNEDY, ASSISTANT DIRECTOR, SOUTHEASTERN CONNECTICUT COUNCIL OF GOVERNMENTS

The study said that while housing construction from 2000 to 2010 exceeded the need estimated in 2004 — when the 2002 housing needs study was updated — rental construction lagged. In addition, population growth was greater than anticipated.

The study estimates that 54 percent of the 7,200 new households will be renters.

While median home values in most of the region’s towns are lower than the state average of $270,500, the study found, rents in most towns are higher than the state average of $1,075.

About 51 percent of renters and 30 percent of owners in southeastern Connecticut are considered “housing cost-burdened,” meaning they put more than 30 percent of their income toward housing.

“Lots of people are occupying high-cost housing that don’t earn enough to really be able to afford that housing,” said Amanda Kennedy, assistant director of SCCOG.

The study projects that 4,000 of the 7,200 new households will earn less than $50,000, roughly the threshold for a two-person household to qualify as low-income for most government programs.

New London, which has the largest share of renters among towns in the region, also has the largest share of cost-burdened households.

Stonington, which has the highest median home value at $326,000, also has the highest vacancy rate, at 16.5 percent. The affordable housing rate in Stonington is 5 percent, lower than the regional average of 13.7 percent but higher than the rates for Waterford, Preston, Ledyard, Salem and North Stonington.

SECHA board member Pam Days-Luketich commended North Stonington for establishing an Affordable Housing Committee and educating residents.

Forming a dedicated affordable housing committee is one of the recommendations the report makes for individual municipalities, along with studying expected growth, surveying residents on their housing preferences, and reassessing zoning regulations.

According to the study, 14 of the 22 municipalities have undeveloped land in or near public sewer service areas, on which multi-family structures are allowed. Nine communities have language in their zoning regulations that encourages affordable housing.

Days-Luketich encouraged a proactive approach, saying, “If we just sit back and wait and see what happens and let things go on their merry way ... we’re going to be faced with situations that aren’t our choosing.”