UBC Staff & Faculty Housing Demand Study

Transcription

1 UBC Staff & Faculty Housing Demand Study Prepared for: UBC Campus Planning Prepared by: Jason Copas Dale McClanaghan McClanaghan & Associates July 2010

2 Table of Contents Executive Summary... 6 Analysis of UBC Faculty and Staff Housing Demand... 9 Research Approach... 9 Summary of Key Findings and Observations UBC Work Force Characteristics Income Profile and Housing Choices Faculty Members UBC Incomes and City of Vancouver and Metro Housing Prices Housing Choices Among Full-Time Staff Geographic Distribution of Full-Time Staff UBC Rental Program UBC Co-development Program UBC Apartment Condominium Market Results From The Administrative Data REPRESENTATIVENESS OF THE SURVEY SAMPLE BACKGROUND AND OVERVIEW Length of Time Working for UBC Type of Employment Members in the Household Working Full-Time Members in the Household Working Part-Time Primary Work Location Employment Category Home Municipality Those Living on Campus Preference to Live Closer to Campus Housing Type Presence of a Secondary Suite Preferred Housing Type (Next Move) Time at Current Address Length of Time Living in the Metro Vancouver Region Current Housing Arrangements Number of Bedrooms McClanaghan & Associates Page 2

3 Length of Time Looking for Current Housing Level of Difficulty in Finding Current Housing Neighbourhood Characteristics, Services and Amenities Previous Community Before Employment With UBC Impact of the Cost of Housing on Decisions to Accept Employment Expected Time Frame for Remaining in Current Housing Preference to Move Closer to Campus Frequency of Use of Different Services and Amenities Types of Improvements that Would Enhance Their Experience General Level of Satisfaction Satisfaction with Neighbourhood Satisfaction with the Amount of Space Satisfaction with the Design and Layout of Their Housing Satisfaction with the Physical Condition of Their Housing Satisfaction with the Level of Privacy Satisfaction with Access to Services and Amenities Satisfaction with Affordability Satisfaction with the Energy Efficiency of Their Housing Satisfaction with the Level of Safety In the Neighbourhood Satisfaction with Proximity to Employment Satisfaction with the Proximity to Transit Satisfaction with the Proximity to Social and Cultural Opportunities Satisfaction with the Proximity to Recreational Opportunities Satisfaction with the Proximity to Shops and Services Importance of the Affordability of Their Housing Importance of Parking Importance of Storage Importance of Child Friendly Housing and a Child Friendly Neighbourhood Importance of Single Detached Housing Importance of Pet Friendly Housing and Neighbourhood Proximity to Child Care Proximity to Schools Proximity to Health Care Services Proximity to Public Transit Proximity to Employment McClanaghan & Associates Page 3

4 Proximity to Family and Friends Importance of Proximity to Groceries and Other Shopping Opportunities Importance of Social and Cultural Opportunities Importance of Parks and Recreational Opportunities Importance of the Safety of the Neighbourhood TENURE AND HOUSING COST Owners and Renters Average Rent Mortgage Costs Other Housing Costs Heating Costs Hydro Costs Parking Costs Monthly Condo Fees Renters Interested in Becoming Owners Households Saving Toward a Down Payment Expected Time Frame for Moving into Ownership Price Range Preferred Neighbourhood TRAVEL TO WORK AND COMMUTING PROFILE Mode of Travel Time Required for Commute Approximate Distance Travelled PERSONAL AND HOUSEHOLD PROFILE Age Profile Gender Level of Education Household Size Members Over Number of Family Members Between Age 6 and Age Number of Family Members Five or Under Number of Household Members Sharing the Cost of Their Housing Gross Annual Household Income Range FOCUS GROUPS RESPONSES McClanaghan & Associates Page 4

5 List of Tables Table 1: Income and Purchasing Power of Faculty Members Table 2: UBC Income Levels relative to City of Vancouver Income Affordability Thresholds Table 3: Benchmark Price Single Detached Homes (Metro Vancouver) Table 4: MLS Benchmark Attached Units Table 5: MLS Benchmark Apartment Units Table 6: Number of Dependents Full-Time Faculty Members Table 7: Number of Dependents Full-Time Staff Members Table 8: Household Income Based on the Results of the Staff and Faculty Survey Table 9: Geographic Distribution Full Time Faculty Member (Top 20 Postal Code Areas) Table 10: Average Income by Age Full-Time Staff Members Table 11: CMHC Average Market Rents Metro Vancouver Table 12: Geographic Distribution Across Full-Time Staff Members Table 13: Housing Tenure and Cost Profile of Full-Time Staff and Faculty (source: Web Survey) Table 14: Household Income Based on the Results of the Staff and Faculty Survey Table 15: Staff and Faculty Members Currently Renting Saving Toward a Down Payment Table 16: Rental starts Data Table 17: UBC Rental Portfolio Table 18: CMHC Rental market Data (Average Apartment Rents) Table 19: UBC Rent Levels Relative to UBC Incomes Table 20: Staff Average Income and Purchasing Power Table 21: UBC Co-development Program Table 22: Faculty Average Income and Purchasing power Table 23: UBC Market Condominium MLS Listings July McClanaghan & Associates Page 5

6 Executive Summary Executive Summary: Key Observations and Findings a) Vancouver s Housing Affordability Challenges Affordability challenges are prevalent across Metro Vancouver and UBC is no exception. The RBC housing affordability index ranks Vancouver as the most expensive in the country with a household income of $135,000 needed to purchase a benchmark detached bungalow, compared to $100,400 in Toronto and $86,600 in Calgary. The RBC index expresses affordability as a function of area household income levels and current prices. In Vancouver the index in June 2010 was 73.4, compared to 49.1 in Toronto and 36.5 in Calgary. For a standard condominium the RBC analysis estimates a qualifying annual income of $74,400 and an index value of 40.5 for Vancouver as compared to Toronto at $66,800 (index value of 32.5) and Calgary at $55,000 and an index value of b) UBC Staff and Faculty Incomes Compared to Vancouver Household Incomes The average incomes of both staff and faculty members are above the average income profile of households in Metro Vancouver, suggesting that the housing situation for UBC full-time staff and faculty members is likely better than other segments of the population. The average annual faculty income at UBC is $93,524 and the average staff income is $51,754. This compares with the average employment income in the Vancouver CMA for males in full-time employment at $48,142 and females at $38, City of Vancouver household income for homeowners at $66,087 and renters households at $34,872. Approximately 42% of Vancouver homeowner households have incomes above $90,000 and 33% of renter households have incomes above $50,000. c) Homeownership Challenges Households that are likely to experience the greatest housing pressures are those that are dependent on a single income, those moving to the area and/or those just entering into the housing market (both ownership and rental). d) UBC s Planning and Development Activities UBC s planning and real estate development activities at the Pt. Grey campus help shape housing options for its faculty and staff. UBC enables suitable market residential development within the vision articulated by the UBC Campus Plan and also pursues workforce housing initiatives. UBC builds and manages rental housing at the campus and rents to employees at up to 20% less than comparable market rents. The Co-development Program is an entry-level homeownership program that enables qualifying employees to jointly develop housing at the campus. By pre-purchasing and assisting in the development process employees save 1 RBC Economics Research, Housing Market Trends and Affordability June RBC assumes a 25% down payment with a 25-year mortgage at the current five-year fixed rate Census, BC Stats., 2006 Census Fast Facts: Employment Income, 2005, issue McClanaghan & Associates Page 6

7 up to 20% of market cost. It is estimated that 43% of full-time faculty and staff exceed the $100,000 qualifying income required to purchase a two-bedroom unit under the co-development program. 3 e) Housing Location and Consumer Preferences The majority of respondents to the web survey conducted for this study indicated that it was important for them to live in communities that include a broad range of services and amenities in addition to a range of housing choices. The amenities identified in rank order included affordability (90%), safety of neighbourhood (86%), close to employment (83%), close to shopping (83%), close to transit (83%), and close to parks and recreation (79%). Other considerations identified were close to friends and family (62%), adequate parking (61%), close to health care (55%), pet friendly (43%) and child friendly (43%). Proximity to campus is also a significant factor in shaping individual housing choices. In addition to the 11% of respondents currently living on campus, 47% of those who responded to the staff and faculty survey indicated that they would like to have more housing options closer to where they work. Of those, 18% indicated that they would definitely move to campus while 29% indicated that they would consider moving depending on the choices available. 4 f) UBC Rental Production UBC has produced a higher proportion of purpose-built rental housing than any Metro Vancouver municipality. UBC created 674 rental units in the period 2001 to 2009, (25.8% of 2,610 total starts) compared to 4,320 rental starts in the City of Vancouver (11.7% of 37,073 total starts) and 8,618 or 5.9% of all starts Metro-wide. UBC has also built a disproportionate amount of 3 bedroom units (21.9% versus 5.4% for City of Vancouver) thus enlarging the rental supply suitable to families. UBC has built far fewer one-bedroom units than is the norm within the Vancouver marketplace (16.6% versus 44.9% in City of Vancouver). An increase in the proportion of one bedroom units within the rental mix would assist in housing affordability for employees, particularly single income households. g) UBC Rental Portfolio Rent Levels An analysis of the UBC rental portfolio shows that the household income affordability threshold at UBC is approximately $43,000 for a one-bedroom rental unit and $73,480 for a three-bedroom unit. If UBC shifted the unit mix to more one-bedroom units it could provide quality housing affordable to a larger proportion of its workforce. Virtually all fulltime staff earn more than $40,000 per annum and approximately 78% of fulltime staff earn $51,000 to $55,000. Households with two earners may have significantly higher income and accordingly, have a broader range of housing choice. h) UBC as a Housing Location Preference Of those who indicated that they would like to live closer to campus, 390 currently own a home elsewhere while 524 currently rent. An additional 99 households did not indicate whether they were owners or renters. The revealed preference of UBC 3 Qualifying income thresholds will vary over time, subject to economic factors like interest rates and construction costs. 4 The survey received 2,176 responses, approximately 19.8% of the 10,970 fulltime staff and faculty. McClanaghan & Associates Page 7

8 faculty and staff is to live in close proximity to campus with approximately 37% of faculty and staff located west of Oak Street and 60% within the City of Vancouver. The trade-off is generally one of affordability versus commuting time as Vancouver s Westside has some of the highest housing prices in the country. Within the rental sector Vancouver has a persistent shortage of rental housing, with low vacancy rates and upward pressures on rents. i) UBC Apartment Condominium Market The market condominiums currently listed for sale at UBC range in price from $326,000 for a small one bedroom unit to $2 million for a large concrete three bedroom view property. Of the woodframe one bedroom resale condos currently on the market the price averages $451,040 and requires a qualifying income of $100,140, assuming a 10% down payment. Approximately 43% of staff and faculty earn $100,000 or more per annum. Households that already own a home or have two income earners may be able to afford a more costly home. The current condominium mix is skewed to two and three bedroom units and there is a relatively low proportion of one-bedroom units. The extent of the skew in favour of large unit sizes is reflected in the average UBC market apartment condominium unit size of approximately 1,100 square feet versus 875 square feet for the average unit in Vancouver. A shift to more one bedroom units would improve affordability and match the unit mix common in the City of Vancouver. j) Faculty and Staff Interested in Housing at UBC Of those who indicated that they would be interested in moving to UBC, approximately 41% would like to make the move within the next 1 to 2 years while the remaining respondents were unlikely to move within the next 2 years. Of those who indicated interest in moving to UBC and who indicated a preference of housing type (n=332): o 23% indicated a preference for high rise housing; o 25% indicated a preference for low rise housing; o 27% indicated a preference for town house accommodation; o 25% indicated a preference for single family housing. McClanaghan & Associates Page 8

9 Analysis of UBC Faculty and Staff Housing Demand Metro Vancouver is recognized as a high cost housing market. To understand some of the potential implications, UBC undertook a study of the housing choices and housing pressures for staff and faculty members. This study complements a study of student housing demand and affordability completed earlier this year. The analysis set out in this report examines the housing choices (ownership and rental) available to UBC staff and faculty members within the broader Metro Vancouver housing market. The study findings help to provide important research and data for UBC to understand the potential implications that the cost of housing can have on their recruitment and retention of staff and faculty members. The report identifies potential strategies and approaches that can be integrated into UBC s campus planning initiatives to better meet the needs of faculty and staff. Research Approach To understand the housing needs and choices of staff and faculty members, this report draws on multiple data sources including: Information from the 2006 Census; An analysis of local housing market conditions using data available through the MLS listings and information published by CMHC; Feedback received from 2,176 staff and faculty members who responded to a web-based survey initiated in January Analysis of income and household data across staff and faculty members based on administrative data provided by UBC; and, Feedback gathered from staff and faculty members through a series of focus group sessions held in late April McClanaghan & Associates Page 9

10 Summary of Key Findings and Observations This report examines the housing choices (ownership and rental) available to UBC staff and faculty members within the broader Metro Vancouver housing market. The study provides UBC with an analysis of the campus housing market and the attendant implications on recruitment and retention of staff and broader campus planning initiatives. Publicly available data sources included the 2006 Census, CMHC housing sales market and rental market data, sales data from the Multiple Listings Service (MLS), and calculations using the CMHC mortgage affordability calculator. UBC provided data on employee households and incomes gathered through a web-based poll that provided 2,176 (19.8%) responses out of approximately 10,970 fulltime employees. UBC Work Force Characteristics UBC is a major employer in Metro Vancouver, employing more than 12,700 staff and faculty members. This represents approximately 1% of the work force in Metro Vancouver. Approximately 10,970 are fulltime positions: approximately 3,961 faculty positions and 7,009 staff positions. Key UBC Workforce Characteristics: 50% have been with UBC less than 5 years 34% came from outside the Metro area 55% are women 60% are in one or two-person households and 22% live alone 41% want to live closer to campus 31% take transit to work 36% are less than 35 years old 30% live in one bedroom or bachelor suites Income Profile and Housing Choices Using UBC's administrative data as the initial point of analysis, this section examines the income profile across staff and faculty members to understand the choices that are available to different segments of the UBC work force. The analysis set out in this section examines the average salary/income ranges for full-time staff and faculty members including the general purchasing power associated with the different income/salary ranges. The analysis also looks at differences in the income profile across age cohorts as well as across household sizes. In looking at these segments of the UBC work force, it is possible to gain a better understanding of differences in the requirements of household types as well as to understand some of the differences in McClanaghan & Associates Page 10

11 the experiences and circumstances of individuals/households that are at various stages in their housing careers (i.e., younger/newer entrants into the housing market versus those who are already in an ownership position). The income profiles generated through the administrative data are combined with available housing market data. These are tested through the feedback received from the web-based survey and from focus group sessions to help provide a better understanding of the housing choices and housing preferences of UBC staff and faculty members. Faculty Members The administrative data provided by UBC shows that of the 10,790 full-time employees, approximately 3,961 are faculty members (contract and permanent). This represents approximately 36% of the UBC full-time work force. The average salary for full-time faculty members was $93,524. The average age for full-time faculty members was 46, compared to 43 for those in full-time contract positions and 54 for those in fulltime permanent positions. Table 1 below documents the differences in the average income of full-time faculty members while at the same time taking into consideration difference in average income for different age cohorts. Table 1 also calculates the monthly housing cost and housing purchasing power based on the average reported income. Table 1: Income and Purchasing Power of Faculty Members by Age No. of Faculty Members % Average Income Purchasing Power Monthly Housing Cost Between 21 and $39,115 $146,500 $1,044 Between 30 and 39 1, $62,581 $269,000 $1,667 Between 40 and 49 1, $96,298 $446,000 $2,407 Between 50 and 59 1, $111,868 $525,000 $2,797 Over $121,440 $580,500 $3,643 Total 3, $93,524 $430,500 $2,487 As shown in Table 1, approximately 30% of all full-time faculty members employed at UBC on a permanent or contract basis were 39 or younger. The data also shows that approximately 40% of full-time faculty members were 50 or older. McClanaghan & Associates Page 11

12 In terms of the general housing purchasing power, 5 the data in Table 1 shows that the purchasing power across full-time faculty members fell within the range of $269,000 for those in the 30 to 39 age cohort to $580,500 for those in the 60+ age cohort. The affordability calculation assumes a low down-payment amount (10% of total cost) which is usually more applicable to younger, middleincome households entering home-ownership. Entry-level homeownership is usually driven by income level and debt carrying capacity. Older households that have owned a home for a longer period tend to have more equity and income levels may be less of a factor in shaping the housing choices available to them. In looking at the differences in housing purchasing power, the findings suggest that faculty members who are older and more established in their careers typically have greater purchasing power than those who are younger. This means that those who are older are more likely to be in the ownership market and/or have the income that they need to purchase a home. The findings also suggest that younger individuals just starting out on their housing and academic careers (or those moving to the region from elsewhere) may find it more challenging to get into the Vancouver housing market. UBC Incomes and City of Vancouver and Metro Housing Prices A comparison of UBC incomes and the average prices in the City of Vancouver is as follows 6 : Table 2: UBC Household Income Levels relative to City of Vancouver Income Affordability Thresholds UBC Incomes Income Distribution City of Vancouver Housing Stock Housing Type and Average Price Income threshold below $50,000 19% Private Rental - $1050 per month $42,000 $50,000 - $100,000 37% Older 2 bedroom condo - $480,000 price $100,000 $100,000 - $150,000 24% 2 bedroom condo - $611,000 price $138,000 greater than $150,000 20% Townhouse - $611,000 $138,000 Single detached - $1 million $195, % A more detailed profile of affordability by market area and type is as follows: 5 The calculation of housing purchasing power assumes a 10% down payment, an interest rate of 4.5% and a 25 year amortization period. 6 See Housing Continuum Chart page 18 below. McClanaghan & Associates Page 12

13 Table 2 shows the benchmark selling price for the Metro Vancouver region including the benchmark selling price for a single detached unit. Tables 3 and 4 on the following page show the benchmark price for a semi-detached or row house unit and standard apartment condo unit. The average salary of a full-time faculty member at UBC is $93,524 and on that salary alone most would not have the income needed to purchase a benchmark single detached 7 unit in Metro Vancouver today. (As indicated in the Housing Continuum Chart below, page 25, the income level required for a median priced single detached home with 10% down payment is 194,991. The household income levels required for a two-bedroom condominium or townhouse are $117,823 and $138,580, respectively.) Faculty members with substantially more than a 10% down payment or that are in a dual income household would have a better chance of entering the ownership market. Table 3: Benchmark Price Single Detached Homes (Metro Vancouver) Area Benchmark Qualifying Household Income Monthly Housing Costs Metro Vancouver $583,419 $ 118,661 $ 3,164 DETACHED City of Vancouver $818,403 $ 163,433 $ 4,358 Burnaby $791,994 $ 158,401 $ 4,224 Coquitlam $719,299 $ 144,550 $ 3,855 Langley $523,065 $ 110,911 $ 2,958 Maple Ridge $469,545 $ 96,964 $ 2,586 New Westminster $600,653 $ 121,944 $ 3,252 North Vancouver $938,235 $ 186,265 $ 4,967 Pitt Meadows $541,599 $ 110,693 $ 2,952 Port Coquitlam $575,915 $ 117,231 $ 3,126 Port Moody $778,751 $ 155,877 $ 4,156 Richmond $915,679 $ 181,967 $ 4,852 South Delta $698,066 $ 140,504 $ 3,746 North Delta $536,533 $ 113,477 $ 3,020 Surrey $539,018 $ 113,951 $ 3,039 Vancouver East $746,677 $ 149,766 $ 3,993 Vancouver West $1,675,881 $ 326,810 $ 8,714 West Vancouver $1,400,447 $ 274,331 $ 7,315 Source: April 2010 MLS Statistics GVRB and FVRB 7 This is based on the individual faculty member s income and does not include households where there may be two income earners. With additional income, the range of housing choices will increase. McClanaghan & Associates Page 13

14 Table 4 below shows that there are approximately six communities where a full-time faculty member, with the average faculty income of $93,524 and a 10% down payment, could purchase 8 a typical row house or town house unit based on the MLS benchmark prices reported by the Greater Vancouver Real Estate Board and the Fraser Valley Real Estate Board for April These include Coquitlam, Langley, Maple Ridge & Pitt Meadows, Port Coquitlam, Port Moody and Surrey. While these communities offer greater affordability when compared with the housing costs in Vancouver, there are significant trade-offs in terms of the overall quality of life and the travel time required to get to UBC. Table 4: MLS Benchmark Attached Units Qualifying Household Income Monthly Housing Costs Metro Vancouver $502,399 $ 103,223 $ 2,752 Burnaby $493,368 $ 101,502 $ 2,706 Coquitlam $452,598 $ 93,734 $ 2,499 Langley $326,486 $ 73,456 $ 1,959 Maple Ridge & Pitt Meadows $319,704 $ 68,414 $ 1,824 North Vancouver $628,406 $ 127,232 $ 3,392 Port Coquitlam $407,503 $ 85,142 $ 2,270 Port Moody $413,887 $ 86,359 $ 2,302 Richmond $513,420 $ 105,323 $ 2,808 South Delta $466,097 $ 96,306 $ 2,568 Surrey $326,808 $ 73,518 $ 1,960 Vancouver Eastside $550,950 $ 112,474 $ 2,999 Vancouver Westside $775,953 $ 155,344 $ 4,142 The MLS Benchmark data also shows that there are a wider range of housing choices in terms of the benchmark prices for condo apartment units. UBC Rental Housing - UBC has exceeded all other housing markets in the region in the production of new purpose-built rental housing throughout the last nine years. Not only has UBC created a higher proportion of rental; the unit mix has had proportionately more three-bedroom units which are in very short supply in most other areas. In summary, UBC produces proportionately more rental housing than any other Metro jurisdiction, offers them for rent at levels below comparable rental product in Vancouver and in a mix that includes units suitable for families. 8 This is based on the individual faculty member s income and does not include households where there may be two income earners. With additional income, the range of housing choices increases. McClanaghan & Associates Page 14

15 Co-development Program the Co-development Program provides a housing ownership opportunity affordable to approximately 43% of faculty and staff and at a price 10% to 20% below those in adjoining neighbourhoods. Table 5: MLS Benchmark Apartment Condominium Units Qualifying Household Income Monthly Housing Costs Metro Vancouver $397,779 $ 83,290 $ 2,221 Burnaby $355,121 $ 75,162 $ 2,004 Coquitlam $294,860 $ 63,680 $ 1,698 Langley $245,823 $ 58,087 $ 1,549 Maple Ridge & Pitt Meadows $254,845 $ 56,056 $ 1,494 New Westminster $302,950 $ 65,221 $ 1,739 North Vancouver $390,383 $ 81,880 $ 2,183 Port Coquitlam $252,385 $ 55,587 $ 1,482 Port Moody $306,550 $ 65,907 $ 1,757 Richmond $337,834 $ 71,868 $ 1,916 South Delta $364,462 $ 76,942 $ 2,051 Surrey $225,646 $ 54,243 $ 1,446 Vancouver East $338,483 $ 71,992 $ 1,919 Vancouver West $512,252 $ 105,100 $ 2,802 West Vancouver $727,384 $ 146,090 $ 3,895 Difference in Housing Requirements Household Sizes This section sets out differences in housing requirements for households of different sizes based on the information available through UBC s administrative data. Table 6 and 7 show the different household profiles for full-time staff (Table 6) and faculty members (Table 5) including information on their average incomes and purchasing power as well as monthly housing costs. Given the differences in income levels across staff and faculty members, Table 6 also includes information on an affordable rent level to allow for comparisons in cases where the household income may not be high enough to gain access to the ownership market. McClanaghan & Associates Page 15

16 Table 6: Number of Dependents Full-Time Faculty Members No. of Faculty Members % Average Individual Income Purchasing Power Monthly Housing Cost Valid No Dependents $72,353 $328,500 $1,928 1 Dependent $112,059 $529,000 $2,988 2 Dependents $108,605 $512,500 $2,904 3 or More Dependents $121,458 $577,500 $3,234 Total $93,524 $430,500 $2,487 Table 7: Number of Dependents Full-Time Staff Members No. of Faculty Members % Average Individual Income Purchasing Power Affordable Rent level Valid No Dependents $50,362 $211,000 $1,259 1 Dependent $52,539 $217,000 $1,313 2 Dependents $54,659 $225,500 $1,366 3 or More Dependents $55,854 $232,000 $1,396 Total $51,754 $212,000 $1,294 Housing Preferences When surveyed on what is important to them about housing, the UBC respondents indicated as follows: Affordability 90% Safety of neighbourhood 86% Close to employment 83% Close to shopping 83% Close to transit 83% Close to parks and recreation 79% Lots of storage 75% Close to social opportunities 64% Close to friends and family 62% Adequate parking 61% Close to health care 55% Pet friendly 44% Child friendly 41 Close to schools 34% Close to daycare 24% McClanaghan & Associates Page 16

17 Housing Types and Choice The analysis looked at housing choices across different household sizes and household types. Approximately 29% of staff or faculty members who responded to the survey reported that they lived in a single detached home, 11.3% in a semi-detached or row house, 10% in a suite within a house, and 45% in an apartment (31% in low rise apartments and 14% in high rise apartments). Table 8 shows the household income ranges reported by staff and faculty members who responded to the survey. Even with a combined household income (two earners) the findings suggest that slightly fewer than half of staff and faculty members working at UBC would have the resources needed to move into the ownership market today. The feedback received through the web-based survey indicates that approximately 30% of staff and faculty members live in a one-bedroom or studio unit, 31% live in a two-bedroom unit, and approximately 39% live in a dwelling with three-bedrooms or more. In general, the findings suggest that the current land use plan at UBC that is skewed towards larger unit sizes has an impact on both housing costs and the range of housing choices available for employees. Table 8: Household Income Based on the Results of the Staff and Faculty Survey Total Responses % Less than $50, % Between $50,000 to $74, % Between $75,000 and $99, % Between $100,000 and $149, % Between $150,000 and $199, % Between $200,000 and $299, % More than $300, % Total 1, % Geographic Location and Housing Choices Housing costs can also have an impact on the choices available in terms of the specific neighbourhoods or geographic areas where a household will live. The feedback from the UBC survey shows that proximity to employment is an important consideration for many staff and faculty members. The analysis of the administrative data by postal code shows significant clustering of staff and faculty members into specific postal codes. Approximately 75% of all full-time faculty members employed at UBC live within 20 different postal codes, mostly in the City of Vancouver. V6T, V6R McClanaghan & Associates Page 17

18 and V6K were the most widely reported with more than one-third (n=1,319) of all full-time faculty members living in these three postal codes. Table 9 shows the general distribution of full-time faculty members by the most common postal code areas. The postal code map on page 20 shows the distribution of faculty and staff by postal code area throughout the region. There is also a postal code reference map on page 86. Table 9: Geographic Distribution Full Time Faculty Member (Top 20 Postal Code Areas) Postal Code No. of Faculty % of Faculty 1 V6T UBC / UEL % 2 V6R Pt Grey % 3 V6K Kits 313 8% 4 V6S Dunbar 210 5% 5 V6J Fairview 165 4% Dunbar 6 V6N Southlands 165 4% 7 V5Z Fairview Cambie 157 4% 8 V6H Fairview 124 3% 9 V5V Mt Pleasant 88 2% 10 V6E West End 86 2% 11 V6M Shaughnessy 80 2% 12 V6L Arbutus 77 2% 13 V6G West End 73 2% 14 V6P Kerrisdale 70 2% 15 V5Y Mt. Pleasant 64 2% 16 V7E Steveston 62 2% 17 V6Z West End 56 1% 18 V5T Mt. Pleasant 54 1% 19 V5N Kensington 52 1% 20 V7C Richmond 51 1% Sub-Group % Total 3961 Housing Choices Among Full-Time Staff In keeping with the approach used to examine the housing choices for full-time faculty members, a similar approach was used to look at the choices available to full-time staff (permanent and contract) who work at UBC. McClanaghan & Associates Page 18

19 Of the 10,790 full-time employees at UBC Vancouver campus, the administrative data provided shows that there were approximately 7,000 full-time staff members. This represents approximately two-thirds of the UBC work force. The average age across the full-time staff members working at UBC is 43 with those in permanent full-time positions being on average slightly older than those holding contract positions 45 and 38 respectively. In the case of the full-time staff positions (permanent and contract), the spread in the average incomes across different age cohorts is not as great as the spread across full-time faculty members. As show in Table 10, the average income across full-time staff members ranged from between approximately $40,000 to $55, Table 10 shows the purchasing power and affordable rent level based on these average full-time staff incomes (individual s income not household income) while Table 11 shows the most recent CMHC market rent data. Table 10: Average Income by Age Full-Time Staff Members No. of Staff Members % Average Income Purchasing Power Affordable Rent Level Under $28,023 $88,000 $701 Between 21 and $40,319 $152,500 $1,008 Between 30 and $51,355 $211,000 $1,284 Between 40 and $55,323 $231,500 $1,383 Between 50 and $54,010 $224,500 $1,350 Over $52,921 $212,500 $1,323 Total $51,754 $219,000 $1,294 9 Source: UBC Administrative data. McClanaghan & Associates Page 19

20 Table 11: CMHC Average Market Rents Metro Vancouver CMHC Rental Market Data (Average Apartment Rents) Zone Bachelor 1-bedroom 2-bedroom 3-bedroom Total Oct-09 Oct-09 Oct-09 Oct-09 Oct-09 West End Stanley Park $ 847 $ 1,070 $ 1,637 $ 2,589 $ 1,112 English Bay $ 863 $ 1,032 $ 1,577 $ 2,592 $ 1,063 Downtown $ 979 $ 1,144 $ 1,754 $ 2,410 $ 1,189 West End Downtown (Zone 1-3 $ 923 $ 1,091 $ 1,683 $ 2,521 $ 1,134 South Granville/Oak $ 794 $ 1,070 $ 1,430 $ 1,835 $ 1,093 Kitsilano/Point Grey $ 825 $ 1,015 $ 1,416 $ 1,952 $ 1,076 Westside/Kerrisdale $ 803 $ 1,061 $ 1,627 $ 2,322 $ 1,257 Marpole $ 684 $ 800 $ 1,039 $ 1,092 $ 833 Mount Pleasant/Renfrew Heights $ 721 $ 796 $ 1,038 $ 1,425 $ 837 East Hastings $ 734 $ 817 $ 1,080 $ 1,024 $ 843 South Vancouver $ 753 $ 849 $ 1,169 $ 1,120 $ 950 City of Vancouver (Zone 1-10) $ 840 $ 990 $ 1,400 $ 1,750 $ 1,041 University Endowment Lands ** $ 1,259 $ 1,683 $ 2,136 $ 1,461 Central Park/Metrotown $ 751 $ 857 $ 1,088 $ 1,483 $ 912 Southeast Burnaby $ 631 $ 758 $ 910 $ 1,134 $ 813 North Burnaby $ 700 $ 874 $ 1,120 $ 1,234 $ 951 Burnaby (Zones 12-14) $ 710 $ 845 $ 1,063 $ 1,235 $ 907 New Westminster $ 634 $ 755 $ 964 $ 1,257 $ 800 North Vancouver City $ 799 $ 899 $ 1,116 $ 1,401 $ 958 North Vancouver D.M. $ 821 $ 958 $ 1,198 $ 1,326 $ 1,050 West Vancouver $ 922 $ 1,167 $ 1,784 $ 2,473 $ 1,360 Richmond $ 717 $ 1,063 $ 1,211 $ 969 Delta $ 586 $ 728 $ 932 $ 1,119 $ 817 Surrey $ 595 $ 707 $ 886 $ 995 $ 804 White Rock $ 697 $ 797 $ 984 $ 1,339 $ 844 Langley City and Langley DM $ 621 $ 748 $ 868 $ 1,053 $ 803 Tri-Cities $ 639 $ 756 $ 940 $ 1,113 $ 836 Maple Ridge/Pitt Meadows $ 545 $ 670 $ 856 $ 1,003 $ 749 Vancouver CMA $ 804 $ 919 $ 1,169 $ 1,367 $ 975 Source: CMHC Rental Market Report, December 2009 Geographic Distribution of Full-Time Staff Table 12 provides information on the geographic distribution of full-time staff members. Unlike the fulltime faculty members, there are a wider range of postal codes represented with approximately 80% of full-time staff members living in approximately 46 different postal codes. McClanaghan & Associates Page 20

21 Table 12: Geographic Distribution Across Full-Time Staff Members Postal Code No.of Staff % of Staff 1 V6T UBC / UEL 325 5% 2 V6K Kits 319 5% 3 V6R Pt Grey 275 4% 4 V6J Fairview 239 3% 5 V6P Kerrisdale 206 3% 6 V5R Renfrew Collingwood 198 3% 7 V5T Mt. Pleasant 179 3% 8 V5Z Fairview Cambie 170 2% 9 V6H Fairview 168 2% 10 V7E Steveston 159 2% 11 V5V Mt Pleasant 157 2% 12 V5S Killarney 155 2% 13 V6Y Richmond 152 2% 14 V5N Kensington 150 2% 15 V6G West End 146 2% 16 V6E West End 142 2% 17 V5P Victoria-Fraserview 133 2% 18 V7C Richmond 130 2% 19 V3N Burnaby 127 2% 20 V6S Dunbar 122 2% 21 V6M Shaughnessy 118 2% 22 V5Y Mt. Pleasant 115 2% 23 V5X Sunset 108 2% 24 V5W Riley Park 101 1% 25 V5L Grandview Woodlands 98 1% 26 V6B Downtown 96 1% 27 V5H Burnaby 94 1% 28 V3W Surrey 92 1% 29 V6N Dunbar Southlands 91 1% 30 V5M Hastings Sunrise 90 1% 31 V7A Richmond 90 1% 32 V6X Downtown 84 1% 33 V3M New Westminster 83 1% 34 V3S Surrey 83 1% 35 V5K Hastings Sunrise 82 1% 36 V4C Delta 81 1% 37 V6Z West End 80 1% 38 V4K Delta 79 1% 39 V5C Burnaby North 71 1% 40 V5G Burnaby 68 1% 41 V6L Arbutus 68 1% 42 V5A Burnaby North 63 1% 43 V5E Burnaby 63 1% 44 V3J Coquitlam 62 1% 45 V3L New Westminster 59 1% 46 V3C Coquitlam 51 1% Sub-total % Other % Total % A map of the distribution of both Full-time Faculty and Staff is on the following page. McClanaghan & Associates Page 21

22 McClanaghan & Associates Page 22

23 Table 13: Housing Tenure and Cost Profile of Full-Time Staff and Faculty (source: Web Survey) Postal Code Area # replies % of Sample No Reply # Owners # Renters % of Owners % of Renters Average Mortgage Cost Average Rent V6T UBC / UEL % % 68% $ 2,206 $ 1,346 V6R Pt. Grey 140 6% % 52% $ 2,289 $ 1,247 V6K Kits 139 6% % 56% $ 2,198 $ 1,260 V6J Fairview 111 5% % 59% $ 1,978 $ 1,307 V6S Dunbar 66 3% % 36% $ 2,133 $ 1,607 V5Z Fairview Cambie 64 3% % 52% $ 2,151 $ 1,264 V5T Mt. Pleasant 63 3% % 44% $ 1,614 $ 945 V6G West End 62 3% % 68% $ 1,420 $ 1,150 V6H Fairview 61 3% % 56% $ 1,347 $ 1,179 V6E West end 54 2% % 76% $ 1,464 $ 1,167 V5V Mt. Pleasant 54 2% % 35% $ 1,227 $ 1,148 V6P Kerrisdale 49 2% % 49% $ 1,742 $ 1,167 V6M Shaughnessy 48 2% % 48% $ 2,569 $ 1,171 V6N Dunbar Southlands 43 2% % 26% $ 3,106 $ 1,281 V5N Kensington 43 2% % 47% $ 1,584 $ 1,020 V7E Steveston 36 2% % 0% $ 1,627 $ 876 V5Y Mt. Pleasant 33 2% % 52% $ 2,006 $ 1,646 V5S Killarney 31 1% % 23% $ 1,266 $ 1,067 V6Y Richmond 27 1% % 26% $ 1,324 $ 1,533 V5P Victoria-Fraserview 26 1% % 27% $ 2,738 $ 755 V7C Richmond 26 1% % 23% $ 1,844 $ 990 V3N Burnaby 26 1% % 23% $ 1,436 $ 1,025 V5L Grandview 24 1% % 46% $ 1,544 $ 1,243 V5W Riley Park 23 1% % 35% $ 1,227 $ 1,146 V6L Arbutus 22 1% % 32% $ 3,105 $ 2,095 V5R Renfrew Collingwood 22 1% % 32% $ 1,478 $ 806 V6B Downtown 21 1% % 43% $ 1,759 $ 1,244 V5K Hastings Sunrise 21 1% % 33% $ 1,758 $ 1,011 V6A Strathcona 18 1% % 50% $ 2,417 $ 1,122 V6Z Downtown South 17 1% % 53% $ 1,717 $ 1,865 V5H Burnaby 15 1% % 40% $ 1,333 $ 860 V5C Burnaby 15 1% % 47% $ 1,750 $ 928 V3M Queensborough 15 1% % 13% $ 1,778 $ 633 V3J Coquitlam 15 1% % 40% $ 1,125 $ 1,093 V7L North Vancouver 14 1% % 50% n/a n/a V5X Sunset 14 1% % 43% $ 2,033 $ 899 V5M Hastings Sunrise 13 1% % 46% $ 2,025 $ 1,190 V5A Burnaby North 13 1% % 46% $ 1,700 $ 1,032 V7A Richmond 13 1% % 23% $ 2,000 $ 600 V3H Coquitlam 12 1% % 33% $ 1,497 $ 1, % $ 1,900 $ 1,229 Total % McClanaghan & Associates Page 23

24 Household Income and Tenure Arrangements While the previous discussion focused specifically on the income and salary levels reported across UBC full-time staff and faculty members, 14 provides additional insights into the different housing tenure arrangements across staff and faculty members using feedback received through the web-based survey. Households with an annual income of $100,000 or less currently working at UBC were more likely to be renters while those with annual incomes of $100,000 or more were likely to be owners. Table 14: Household Income Based on the Results of the Staff and Faculty Survey Total Responses Number of Renters % Number of Owners % Less than $50, % 51 15% Between $50,000 to $74, % % Between $75,000 and $99, % % Between $100,000 and $149, % % Between $150,000 and $199, % % Between $200,000 and $299, % 85 79% More than $300, % 34 75% Total 1, % % Table 15 in turn shows the large percentage of renter households by household income bracket, who indicated that they were currently saving toward a down payment while The graphic illustration on the following page shows the household income required for different housing types and different price points for the City of Vancouver. Table 15: Staff and Faculty Members Currently Renting Saving Toward a Down Payment Renter Households Number Saving For a Down Payment % Saving Less than $50, % Between $50,000 and $74, % Between $75,000 and $99, % Between $100,000 and $149, % Between $150,000 and $199, % Between $200,000 and $299, % More than $300, % Total % McClanaghan & Associates Page 24

25 Vancouver - Total Households 253,385 (2006 Census and April 2008 MLS data) Total Owners 121,845 Renters 131,535 Income Distribution Number of Households Single detached (50 th percentile) Townhouse (50 th percentile) 2+ bed condo (50 th percentile) 2+ bed condo (20 th percentile) Private rental Total 253,385 $100K+ 45,230 $90K to 99,999 9,150 $194,991 Qualifying Income $138,580 Qualifying Income $137,823 Qualifying Income $100,877 Qualifying Income $80K to 89,999 11,815 $70K to 79,999 14,865 $60K to 69,999 17,935 $50K to 59,999 21,465 $40K to 59,999 24,410 $30K to 39,999 27,990 $20K to 29,999 26,670 $10K to 19,999 30,945 $41,640 Qualifying Income Under $10K 22,895 Housing Cost $1,088,000 $675,00 $611,100 $479,900 $1,041 McClanaghan & Associates Page 25

26 UBC Rental Program UBC has exceeded all other housing markets in the region in the production of new purpose-built rental housing over the last nine years. Not only has UBC created a higher proportion of rental housing but also the unit mix has included proportionately more three-bedroom units which are in particularly short supply in most other areas. In summary, UBC produces proportionately more rental housing than other Metro Vancouver jurisdictions, in a mix that includes units suitable for families and offers them for rent at levels below comparable rental product in the City of Vancouver. Rental Starts Data - Housing starts data published by CMHC 10 reports a total of 674 rental starts within the University Endowment Lands in the period of 2001 through 2009 inclusive. This is approximately 26% of all market housing starts in UEL and compares with 11.7% in Vancouver and 5.9% region-wide. Table 16: Rental starts Data Rental Starts Data UBC / UEL Vancouver Metro Total Starts - Municipality 2,610 37, ,400 Rental Housing Starts - Municipality 674 4,320 8,618 age Rental of Total starts 25.8% 11.7% 5.9% Rental Unit Mix UBC s mix of rental units is skewed to larger units, with virtually no studio apartments included in the mix. The Vancouver condo apartment universe has a much larger proportion of small units with 48% of this stock being studio apartments or one-bedroom units and 6% being studio apartments. By comparison, the UBC rental buildings analysed in Table 17 only 16.6% of the stock at UBC is one-bedroom units, with an absence of studios. In addition, UBC has three times as many three bedroom units compared to the stock in the City of Vancouver (21.9% of UBC s stock is 3 bedroom. vs. 5.4% in the Vancouver condominium stock). 10 CMHC, Canadian Housing Observer, Housing Now 2009 McClanaghan & Associates Page 26

27 Table 17: UBC Rental Portfolio Rental Portfolio UBC # UBC Rental Mix Vancouver Condo Mix UBC ave. size (SF) UBC ave. Rent Apartment Studio 1 0.4% 3.8% 1 bedroom $1, % 44.9% 1 bed + den $1,131 2 bedroom $1, % 45.9% 2 bed (ch) $1,631 3 bedroom 42 1,076 $1, % 5.4% 3 bedroom (ch) 12 1,392 $2,147 Total % 100.0% Townhouse 2 bedroom 4 1,080 $1,649 3 bedroom 7 1,290 $1, Rental Pricing Comparison The pricing of UBC s rental portfolio is detailed above in Table 17. The average rent of the UBC units ranges from $1,079 for a one bedroom unit to $2,147 for a three bedroom unit. Generally, UBC s has a target rent level of approximately $1.80 per square foot per month versus an industry norm of $2.2 per square foot per month for rental units of less than ten years of age. This amounts to a discount of approximately 20% below market pricing. As indicated in the following table, one bedroom units in the Westside-Kerrisdale neighbourhood have an average rent of $1,061 and three bedrooms are at $2,322 per month. The Westside-Kerrisdale area data is for buildings of all ages. Newer comparable units built in Vancouver over the last nine years have a rent range of $1,317 to $2,355. McClanaghan & Associates Page 27

28 Table 18: CMHC Rental market Data (Average Apartment Rents) Zone Bachelor 1-bedroom 2-bedroom 3-bedroom Total Oct-09 Oct-09 Oct-09 Oct-09 Oct-09 West End Stanley Park $ 847 $ 1,070 $ 1,637 $ 2,589 $ 1,112 English Bay $ 863 $ 1,032 $ 1,577 $ 2,592 $ 1,063 Downtown $ 979 $ 1,144 $ 1,754 $ 2,410 $ 1,189 West End Downtown (Zone 1-3 $ 923 $ 1,091 $ 1,683 $ 2,521 $ 1,134 South Granville/Oak $ 794 $ 1,070 $ 1,430 $ 1,835 $ 1,093 Kitsilano/Point Grey $ 825 $ 1,015 $ 1,416 $ 1,952 $ 1,076 Westside / Kerrisdale $ 803 $ 1,061 $ 1,627 $ 2,322 $ 1,257 Marpole $ 684 $ 800 $ 1,039 $ 1,092 $ 833 Mount Pleasant/Renfrew Heights $ 721 $ 796 $ 1,038 $ 1,425 $ 837 East Hastings $ 734 $ 817 $ 1,080 $ 1,024 $ 843 South Vancouver $ 753 $ 849 $ 1,169 $ 1,120 $ 950 City of Vancouver (Zone 1-10) $ 840 $ 990 $ 1,400 $ 1,750 $ 1,041 University Endowment Lands ** $ 1,259 $ 1,683 $ 2,136 $ 1,461 Central Park/Metrotown $ 751 $ 857 $ 1,088 $ 1,483 $ 912 Southeast Burnaby $ 631 $ 758 $ 910 $ 1,134 $ 813 North Burnaby $ 700 $ 874 $ 1,120 $ 1,234 $ 951 Burnaby (Zones 12-14) $ 710 $ 845 $ 1,063 $ 1,235 $ 907 New Westminster $ 634 $ 755 $ 964 $ 1,257 $ 800 North Vancouver City $ 799 $ 899 $ 1,116 $ 1,401 $ 958 North Vancouver D.M. $ 821 $ 958 $ 1,198 $ 1,326 $ 1,050 West Vancouver $ 922 $ 1,167 $ 1,784 $ 2,473 $ 1,360 Richmond $ 717 $ 1,063 $ 1,211 $ 969 Delta $ 586 $ 728 $ 932 $ 1,119 $ 817 Surrey $ 595 $ 707 $ 886 $ 995 $ 804 White Rock $ 697 $ 797 $ 984 $ 1,339 $ 844 Langley City and Langley DM $ 621 $ 748 $ 868 $ 1,053 $ 803 Tri-Cities $ 639 $ 756 $ 940 $ 1,113 $ 836 Maple Ridge/Pitt Meadows $ 545 $ 670 $ 856 $ 1,003 $ 749 Vancouver CMA $ 804 $ 919 $ 1,169 $ 1,367 $ 975 Rental Housing Affordability Relative to Faculty and Staff Incomes The table below shows the average rents of the UBC portfolio and the associated household income needed to carry the cost without spending more than 30% of household income. McClanaghan & Associates Page 28

29 Table 19: UBC Rent Levels Relative to UBC Incomes Rental Portfolio UBC - Rent Level & Income Affordability Threshold # UBC ave. Rent Income Threshold Apartment 1 bedroom 26 $1,079 $43,160 1 bed + den 15 $1,131 $45,240 2 bedroom 133 $1,390 $55,600 2 bed (ch) 18 $1,631 $65,240 3 bedroom 42 $1,837 $73,480 3 bedroom (ch) 12 $2,147 $85,880 Townhouse 2 bedroom 4 $1,649 $65,950 3 bedroom 7 $1,901 $76,040 The following table shows the age and average income of full time UBC Staff and the associated affordable rent levels. These incomes are for the employee only and would be higher for households with two earners. The data suggests full-time staff members would benefit from an expanded rental pool with 1,153 of 2176 (253) respondents to the survey indicating that they were renters wishing to live closer to campus. Table 20: Staff Average Income and Purchasing Power No. of Staff Members % Average Income Purchasing Power Affordable Rent Level Under $28,023 $88,000 $701 Between 21 and $40,319 $152,500 $1,008 Between 30 and $51,355 $211,000 $1,284 Between 40 and $55,323 $231,500 $1,383 Between 50 and $54,010 $224,500 $1,350 Over $52,921 $212,500 $1,323 Total $51,754 $219,000 $1,294 UBC Co-development Program Co-development housing offers UBC faculty and staff the opportunity to jointly develop a townhouse or apartment project at UBC. Upon completion of construction, each Co-developer becomes the owner of a pre-identified home. By using Co-developers equity to fund the required working capital, and avoiding the developer s profit, sales and marketing commissions, Co-developers in the past have achieved savings of up to 10% 20% off the appraised value of a home depending on prevailing market conditions. McClanaghan & Associates Page 29

30 The Co-Development projects completed to date are as follows: Table 21: UBC Co-development Program Co-development Project Date # Units Unit Mix Hawthorn Green - Lot 5 (10 rowhouses wt 10 sec suites) (3bd) Logan Lane- Lot 17/20 (52 townhouses + 9 w/ 9 sec suites) bd; 26-2 bd Clement s Green - Lot bd; 23-2 bd Keenleyside - S Campus Lot bd; 40-2 bd Total 198 The most recent completion, Keenleyside, a 72 unit three story wood-frame multi-family project had a price point of approximately $459,500 and $565,600 for two bedroom units (910 sf) and three-bedroom units (1,120 sf) respectively. This was approximately 12.4% less than the prevailing market price at the time of completion. This discount to market prices creates affordability and is a benefit to the employee (subject to the party remaining in the home for five years). The current qualifying income for purchase of units at this price level is an annual income of approximately $100,000 for a two-bedroom unit (calculated assuming a 10% down payment, a 5% interest rate amortized over a 25 year mortgage). The three bedroom unit has a qualifying income threshold of $152,000. These income levels compare to the average faculty salary of $93,524 and staff salary of $51,754. It is estimated that, of all faculty and staff, approximately 43% have a household income of more than the $100,000 qualifying income required to purchase a two-bedroom unit. The unit mix of UBC co-developments has not included one-bedroom units, whereas most market condo developments in Vancouver contain 25%-35% one-bedroom units. If UBC increased the proportion of one-bedroom units and provided some studio units this would enhance the affordability profile of the co-development program. It is noted that 60% of UBC employees live in one or two person households, (22% in single person households, 38% in two person households), thus making one-bedroom units suitable for this sub-group. As a comparative measure, 26% of employees who responded to the survey report that they live in a one-bedroom unit while 4% live in a studio apartment. McClanaghan & Associates Page 30