North County Housing Conditions 1

North County Housing Conditions:

Cities of Paso Robles and Atascadero

Jose Ismael Marquez

Regional Planning and Analysis Lab, CRP 554

Department of City and Regional Planning

California Polytechnic State University

Richard Lee, Instructor

NORTH COUNTY (ATASCADERO AND PASO ROBES)

REGIONAL HOUSING CONDITIONS

According to the City of Atascadero General Plan Housing Element (Draft) the previous housing element sought to increase the proportion of affordable multifamily units, primarily to accommodate larger families and the increasing number of senior citizens. It is consider that to a considerable extent, the City has been successful in achieving this objective. According to the Draft the goals and policies contained in the previous housing element were appropriate to meet the housing needs of the City.

The U.S. Census 2000 reported a population of 26,411 for the City of Atascadero. The City has grown in a very rapid pace (e.g. in the 1950s decade the city grew almost 100 percent). In the past decade (1990s) the City grew by 14 percent, and is expected to maintain the same trend for the next two decades. Historically, the City of Atascadero experienced periods of explosive growth rates following World War II. During the decade of the 1990's these rates began to stabilize into more sustainable growth rates averaging between 1% and 2% annually. The General Plan assumes that an annual growth rate averaging 1.25% will be sustained during the next 20 years. Based on this assumption the General Plan build out would be reached around 2025 (See table below).

Table1

POPULATION TRENDS AND PROJECTIONS: 1960-2025

CITY OF ATASCADERO

YEAR POPULATION 10 YEAR RATE

Year / Population / Increase rate
1940 / 2,600
1950 / 3,400 / 31%
1960 / 4,583 / 35%
1970 / 9,100 / 99%
1980 / 16,232 / 78%
1990 / 23,138 / 43%
2000 / 26,411 / 14%
2010 / 29,904 / 13%
2020 / 33,860 / 13%
2025 / 36,030

Source: City of Atascadero General Plan 2000-2002. Public Hearing Draft – June 7, 2002. Retrieved from http://www.atascadero.org/future/gp_draft.pdf.

The following table shows the current Square Footage by Land Use Type (Commercial and Industrial) and the number and type of Residential Units (See table below).

Table 2

EXISTING DEVELOPMENT

Land Use Type / Square Foot
Commercial / 2,683,000
Industrial / 416,000
Residential Units
Group Quarters / 260 du’s
Single Family Detached / 6,768 du’s
2-to-4 Unit / 869 du’s
5-plus Unit / 1,217 du’s
Mobile Home / 601 du’s
Total Units / 9,995
Population / 26,411

Source: City of Atascadero General Plan 2000-2002. Public Hearing Draft – June 7, 2002. Retrieved from http://www.atascadero.org/future/gp_draft.pdf.

The City as the Region in general has a very different composition if is compare with the rest of the State of California. Accordingly, to the U.S. Census 2002 and the Draft City of Atascadero General Plan, the City had almost 90 percent White-non Hispanic; however, minority groups grew in the past decade such as Blacks and Hispanics. This could have implications in the housing needs of these particular ethnic groups (See table below).

Table 3

ATASCADERO ETHNICITY GROUPS

Population Group / 1990 / 2000
Number / Percent / Number / Percent
White (non-Hispanic) / 21,747 / 94.0% / 23,451 / 88.8%
Black / 260 / 1.1% / 623 / 2.4%
Hispanic (all races) / 1,972 / 8.5% / 2,783 / 10.5%
Native-American (non-Hispanic) / 270 / 1.2% / 247 / 0.9%
Asian / 262 / 1.1% / 336 / 1.3%
Other (non-Hispanic) / 589 / 2.5% / 1,754 / 6.6%

Source: City of Atascadero General Plan 2000-2002. Public Hearing Draft – June 7, 2002. Retrieved from http://www.atascadero.org/future/gp_draft.pdf.

Income distribution in the north county cities of Atascadero and Paso Robles is concentrated especially in the upper medium cohorts (S50,000 to $100,000). Also, we have to consider that the lowest income group spikes considerably in the household medium income distribution in these two cities (See figure below).

Figure 1: Household Income by Income Category

The number of Households in the City of Atascadero increased 11.4 percent from 8,557 in 1990 to 9,531in the year 2000 (see table below).

Table 4

HOUSEHOLDS, 1990 AND 2000

Households / 1990 / 2000
City Only / 8,557 / 9,531
Increase / 974
Percent Increase / 11.4%
Annual Rate of Increase / 1.1%

Source: City of Atascadero General Plan 2000-2002. Public Hearing Draft – June 7, 2002. Retrieved from http://www.atascadero.org/future/gp_draft.pdf.

The size of the household is the City of Atascadero y quite small, 35 percent of the Households only have 2 individuals, 22 percent are compose by only two persons, 17 percent are made up by 3 persons, and 16 percents of the Households are made up by 4 persons (see table below).

Table 5

HOUSEHOLD SIZE AND OWNERSHIP, 2000

Persons/HH / Owner / Renter / Total / Percent
1 / 1,061 / 1,033 / 2,094 / 22%
2 / 2,456 / 921 / 3,377 / 35%
3 / 1,012 / 601 / 1,613 / 17%
4 / 1,058 / 445 / 1,503 / 16%
5 / 426 / 194 / 620 / 7%
6 / 155 / 57 / 212 / 2%
7 or More / 81 / 31 / 112 / 1%
Total / 6,249 / 3,282 / 9,531 / 100%

Source: City of Atascadero General Plan 2000-2002. Public Hearing Draft – June 7, 2002. Retrieved from http://www.atascadero.org/future/gp_draft.pdf.

The House/Job balance in the City of Atascadero is considerable stable, although they are still more jobs in the City (16,900) than Households, creating a House shortage in the area. Jobs per Employed Resident balance is even worse, there is only 0.8 jobs per employed resident, this figure implied that Atascadero’s residents are commuting to other areas to work (See Table below).

Table 6

JOBS/HOUSING BALANCE, 1990

Component / Number
Jobs / 16,900
Households / 15,138
Employed Residents / 21,796
Jobs per Household / 1.1
Jobs per Employed Resident / 0.8

Source: City of Atascadero General Plan 2000-2002. Public Hearing Draft – June 7, 2002. Retrieved from http://www.atascadero.org/future/gp_draft.pdf.

If we analyzed the Atascadero’s Housing need by Income Category, we may inferred a greater housing need in the Very Low Income, and Low Income category, because housing units are not being built that could accommodate the need of this group. Only Houses for households who earn above the Moderate Income and secondly around the median income are being built (See Table below).

Table 7

CITY SHARE OF REGIONAL HOUSING NEED, 2001-2008

Income Category / % of City 1990 / Units Need 2001-2008 / Built Since 1/1/2001 / Assisted Units / Needed
Very Low (<50% median) / 20% / 343 / 1 / 341
Low (50-80% median) / 14% / 239 / 70 / 19 / 150
Moderate (80-120% median) / 20% / 343 / 43 / 300
Above Moderate (>120%median) / 46% / 788 / 100 / 688
Total / 100% / 1,713 / 214 / 1,499

Source: City of Atascadero General Plan 2000-2002. Public Hearing Draft – June 7, 2002. Retrieved from http://www.atascadero.org/future/gp_draft.pdf.

Special Groups

There are also special population groups that have a greater need for adequate housing, such as the Disabled Population, Large Families, Single-Parent Households, Persons in Need of Emergency Shelter, and Farm workers. Disabilities may affect a persons’ housing need in two ways according the City of Atascadero General Plan Housing Element: a mobility or self-care limitation may require modifications to housing to accommodate the disability; and a work disability may limit a person’s ability to afford adequate housing.

Large Families with low income generally faced overcrowding problems, this social group generally can not afford to buy a house, and therefore they are renters. Atascadero’s Rental Market, do not provide the type of units for this groups (more than 2 rooms), therefore large households may often find themselves in overcrowded conditions. Single-Parent Households (around 11 percent in the City of Atascadero) is another group that faced a great housing need, the majority of these households are headed by woman. Any household with only one person able to earn wages is at a significant disadvantage in the housing market, and single parents may have to take more time off from work to care for their children.

Persons in Need of Emergency Shelter and Farm workers are other groups that also face the housing crisis. The first group requires adequate sites that are accessible to public services and that provide emergency shelters and transitional housing. Providing adequate Farm workers Housing is another problem that the City will be facing more and more due to the increasing numbers of parcels that are being cultivate for vineyards.

Income Groups and Ability to Pay

Overpayment for housing is a problem for may Atascadero households, particular renters and low income groups. About one-fourth of households were paying more than 35 percent of their income for housing in 1990. Generally, if a household spends more than 30 percent in housing, it is considered to be overpaying (See Table below).

Table 8

OWNERS AND RENTERS HOUSEHOLD COST

Owners / Renters / All Households
Households / HH / Percent / HH / Percent / HH / Percent
Less than $20,000
…Less than 35 percent / 245 / 45% / 247 / 21% / 492 / 37%
…35 percent or more / 296 / 55% / 527 / 79% / 823 / 63%
$20,000 - $34,999
…Less than 35 percent / 561 / 60% / 869 / 87% / 1,430 / 74%
…35 percent or more / 372 / 40% / 132 / 13% / 504 / 26%
$35,000-$49,999
…Less than 35 percent / 942 / 77% / 484 / 99% / 1,126 / 79%
…35 percent or more / 288 / 23% / 5 / 1% / 293 / 21%
$50,000 +
…Less than 35 percent / 1,597 / 91% / 303 / 100% / 1,900 / 93%
…35 percent or more / 150 / 9% / 0 / 0 / 150 / 7%

Source: City of Atascadero General Plan 2000-2002. Public Hearing Draft – June 7, 2002. Retrieved from http://www.atascadero.org/future/gp_draft.pdf.

Comparing home prices with the amount a household would usually be expected to pay for housing indicates that only moderate and above-moderate income households could afford to purchase a single-family home in 2002 (base in the median income for San Luis Obispo County) (See Tables Below).

Table 9

OWNERSHIP AFFORDABILITY, 2000

Income Category / Percent Median / Income Limit / Affordable Home Price
Very Low / 50 / $25,100 / $63,500
Low / 80 / 40,160 / 120,200
Median / 100 / 50,200 / 153,000
Moderate / 120 / 60,240 / 200,000

Source: City of Atascadero General Plan 2000-2002. Public Hearing Draft – June 7, 2002. Retrieved from http://www.atascadero.org/future/gp_draft.pdf.

Table 10

RENTAL AFFORDABILITY, 2000

Income Category / Percent Median / Affordable Rent/Mo.
Very Low / 50 / $625
Low / 80 / 1,000
Median / 100 / 1,250
Moderate / 120 / 1,500

Source: City of Atascadero General Plan 2000-2002. Public Hearing Draft – June 7, 2002. Retrieved from http://www.atascadero.org/future/gp_draft.pdf.

According to the City of Atascadero General Plan Housing Element (Draft) residential construction in the City declined significantly in the 1990’s compared to the 1980’s, but that trend appears to be changing: 2001 was the first year with more than 200 new units built since 1987. The City records from 2001 show that the majority of housing units in Atascadero were single-family homes. Some of the 31.7 percent of units in multifamily buildings are in mixed-use developments, and Atascadero also has a significant number of mobile homes (See Table Below)

Table 11

HOUSING UNIT TYPE 2001

Type of Home / Units / Percent of Total Units
Single-Family / 6,001 / 62.1%
Multifamily / 3,062 / 31.7%
Mobile Homes / 600 / 6.2%

Source: City of Atascadero General Plan 2000-2002. Public Hearing Draft – June 7, 2002. Retrieved from http://www.atascadero.org/future/gp_draft.pdf.

Identification of gaps between projected housing market conditions and existing housing and economic development programs

North County as the rest of the Central of California is facing a major housing crisis. Atascadero and Paso Robles as other cities in the region have experience and inflow of new migrants primarily from other areas of the State (San Francisco and Los Angeles regions) due to their desirability living conditions. This desirability among other factors has increase the housing demand in the north county region, tied with slow growth policies especially in the rest of the County have impacted housing affordability considerably in the area. The service and commerce sectors have been the main employers in the north county economy. However, in recent years due to the expansion of the agriculture industry in the surrounding areas of the cities of Paso Robles and Atascadero, more low income people have been employed to work in the fields, therefore a migration of this group to the area is still in process. With more people migrating to the area especially from both ends of income levels (upper middle class retirees and low class workers) the housing affordability problem is very likely to increase. The cities of Atascadero and Paso Robles have had considerably pro growth policies if we compare them to other cities in the County, this has steered growth from the region to this area. However, the primarily development taken place is characterize by single dwelling units, only affordable to the upper medium class residents or to new retirees from other regions. If this trend continues, housing affordability will become a bigger issue especially for those in the lower ends of the income spectrum.