Housing Needs in the Region
In the North Tahoe-Truckee region, there is a need for housing at every income level, from homeless to middle-income salary earners.
In 2016, BAE Urban Economics, an award-winning urban economics and public-benefit real estate development consulting practice, was contracted to create the Truckee North Tahoe Regional Workforce Housing Needs Assessment.
Achievable Local Housing Bridge
The Mountain Housing Council’s goal is to help more people understand that there is a gap between affordable housing programs and available housing in the North Tahoe-Truckee region. People who fall into this gap make too much to qualify for affordable housing developments but too little to buy or rent market-rate homes.
Understanding Area Median Income
Area Median Income (AMI) is the household income for the median — or middle — household in a region. The US Department of and Urban Development (HUD) publishes this data annually for regions; data varies by household size. The following illustrates the dire need for housing.
The California Department of Housing and Community Development (HCD) makes minor adjustments based on regional factors to these numbers prior to publishing. Exact household AMI is determined by county and household size.
Significant Gaps Between Income Levels and Housing Prices
A family of four earning 100% of the area median income (in Nevada County) could afford a $278,565 priced home, but this is nowhere near the median home price of $538,000. The median for-sale single-family home price is almost double what a household earning the median area income can afford.
Buying Power by Income Level for NEVADA County (as of 2017)
Your buying power is comprised of the total amount of money you have available each month for a mortgage payment. This means the money you have each month after fixed bills and expenses.
Only households above Moderate income (earning greater than 193% of Nevada County’s area median income and 187% for Placer County) would be able to afford the median sale price for single-family homes in the North Tahoe-Truckee area without exceeding the 30% cost burden.
Workforce Housing Needs per Income Level
4,100 full-time employees in the North Tahoe-Truckee region are overpaying, living in overcrowded homes, etc. This number represents the total need or unmet demand estimate in our area. The number does not include seasonal or non-resident commuters which bumps the total need to over 12,000.
Unmet Housing Need of Year-Round Workforce
Source: 2017 BAE Housing Needs Assessment