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Comprehensive Plan Housing Element
<br />ANALYSIS OF HOUSING CONDITIONS
<br />Until recently, the county's population was growing at a relatively fast rate. That growth, however,
<br />slowed significantly starting in 2007.
<br />Between 2000 and 2005, the county's population increased by 17,094 persons, or 15.13%. For
<br />2001, 2002, 2003, 2004, and 2005, the county's population increases were 2.45%, 2.10%, 2.52%,
<br />4.67%, and 2.53%, respectively. For that type of growing population, one of the most important
<br />issues that the housing element must address is providing an adequate supply and mix of housing for
<br />the growing population.
<br />Probably more than any other issue addressed by the comprehensive plan, housing radically changed
<br />between 1995 and now. During that time, housing production increased significantly, then declined.
<br />Along with the increase in housing production came a significant increase in housing costs. Those
<br />cost increases created a number of housing problems and issues. With the recent downturn in the
<br />housing market, however, housing costs have moderated and even declined. Following is an
<br />analysis of housing conditions within Indian River County.
<br />• Housing Affordability
<br />Basically, housing affordability is the relationship between housing cost and household income. The
<br />components of housing affordability are median housing value, median monthly rent, and median
<br />household income.
<br />• Housing Cost
<br />According to census information, the median sales price of housing units in Indian River County
<br />increased from $78,800 in 1989 to $104,000 in 1999, an increase of 32%. Also, median monthly rent
<br />increased from $505 per month in 1989 to $615 per month in 1999, an increase of 28%. During that
<br />same period, median household income increased from $28,961 to $39,635, an increase of 26%. (Note:
<br />the census median household income figure is different from the HUD median household figure
<br />provided in Table 7.11). These housing costs and income figures indicate that, in the 1989 to 1999
<br />period, income increases generally kept pace with increases in housing costs.
<br />According to the Florida Association of Realtors, the median housing sales price for the Ft. Pierce — Port
<br />St. Lucie Metropolitan Statistical Area (MSA), including Indian River County, grew from $79,200 in
<br />January, 2000 to $261,500, in January, 2006, a 230% increase (Table 7.11). During that time period,
<br />median household income increased from $47,700 to $55,500, an increase of only 16%. That means
<br />that, in that period, the median price of homes outpaced median income by more than 14 fold. As
<br />expected, the significant increase in housing costs compared to the much lower increase in household
<br />income produced housing affordability problems.
<br />The significant increase in housing costs between 2000 to 2006 can be attributed to a number of factors.
<br />These factors range from the real estate market to government regulation and include many others. It is,
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<br />Community Development Department Indian River County
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