1. National Association of Realtors Regional Workforce Housing Summit
Policy Roundtable
Booming Growth and Tight Housing Markets: Where Will the Region’s Future Workforce Live?
Judy Woodruff, Moderator
Conrad Egan
Mayor William Euille
Stephen Fuller, PhD
Richard Parsons
Councilman Steve Silverman
April 24, 2006

2. Housing Shortage in the Washington Area, 1990 – 2010 (thousands)
Jobs
Housing Requirement
Housing Supply
Housing Shortage
1990 Base
2,940.6
1,960.4
1,541.1
419.3
65.2
43.5
118.6
-75.1
1995 – 2000
401.0
267.3
153.3
114.0
2000 – 2005
318.6
212.4
163.6
48.8
2005 – 2010
568.7
379.1
171.9
207.2
Total
1,353.5
902.3
607.4
294.9
Annual Average
67.7
45.1
30.4
14.7
Accumulated Housing Shortage in 2010 = 714.2

3. Housing Price Index Washington PMSA 4th Quarter Each Year
1995
Q1=100
= +153 %
=+ 3.7 %
Market flat in 90-97, and up 143% since.
Source: Federal Office of Housing Enterprise Oversight, GMU Center for Regional Analysis
GMU Center for Regional Analyis

4. Household Income and Housing Price Divergence, 1995 - 2005%
Housing Price
Income
Long term compound interest rate increases, in current $: Income = 5.4% , Housing = 7.0%

5. Metro Comparisons Ratio of Median Value of New Housing to Median Family Income – Q3 2005
WASHINGTON
In 2000 Washington
was 2.8
One question we have to ask concerns affordability. As noted, we have gone from MVH/income ratio of 2.8 in 2000 to 4.3 in A significant increase, but we are still more affordable than the West Coast, New York, Boston, and Miami.
Source: NAHB/Wells Fargo, GMU Center for Regional Analysis
GMU Center for Regional Analyis

6. THE HOUSING CHALLENGE Job Growth exceeds housing production
Housing supply shortages are caused by local public policies
Accumulating demand pressure generates housing price increases
High demand, insufficient supply, and high prices contribute to housing affordability crisis
Labor shortages and resultant wage inflation caused by housing supply shortages and lack of affordability threaten the region’s economic health