Study Background

I. INTRODUCTION AND KEY FINDINGS

Study Background

The 2020 Palm Beach County Affordable Housing Needs Assessment (hereinafter, “Affordable Housing Needs Assessment”) provides a current market perspective on the key demand and supply factors impacting the production and availability of affordable housing in the County and major municipalities. In the post-recession economic recovery period since 2012, significant changes have occurred in the housing market that have impacted both owner and rental housing supply and demand and overall affordability. The contributing market factors and conditions include declining homeownership and increasing renter housing demand, lower rental vacancy rates and increasing rent prices, a lack of affordable housing production and depressed household incomes. Most importantly, affordable rental housing production has not kept pace with increasing affordable rental housing demand. Further, escalating rent prices fueled by a rental housing shortage are significantly impacting Palm Beach County’s working families and households. The vast preponderance of local workers earns wages in service sector occupations, including educational and health services, retail trade, and leisure and hospitality.

The Affordable Housing Needs Assessment provides a clear understanding of the scope and scale of Palm Beach County’s affordable housing issues and includes a data-driven platform for policy direction. Developing policies to alleviate the County’s critical affordable housing needs requires a full understanding of the dynamics of the housing market and the economic contexts underpinning affordable housing. This understanding and perspective has been accentuated by the COVID-19 pandemic. As such, the Affordable Housing Needs Assessment has been written to help expand the importance of affordable housing – to recognize that affordable housing is critical to

Palm Beach County’s economic resilience and the health and well-being of its residents.

The Affordable Housing Needs Assessment reached several critical conclusions:  The scope and scale of Palm Beach County’s affordable housing needs are substantial and impact a broad spectrum of economic and social issues;  Without a carefully crafted affordable housing response, the COVID-19 pandemic will extend economic hardship for many Palm Beach County working families and households for years to come;  Renter households are the most vulnerable due to extended job loss, existing low household incomes, and excessive cost-burden levels;  An aggressive post-COVID affordable housing response is required to serve as a stabilizer in the short-term and a more coherent and impactful affordable housing development delivery system in the long-term to help overcome current and persistent levels of distress while better preparing for inevitable future shocks.  The scope and scale of Palm Beach County’s affordable housing needs in the post-COVID-19 economy will demand a much greater public, private, and philanthropic response.