HomeMy WebLinkAbout4386 Resolution - Approving Housing Action and Implementation PlanRESOLUTION NO.4386
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON,
ADOPTING THE PASCO HOUSING ACTION AND IMPLEMENTATION
PLAN IN ACCORDANCE RCW 36.70A.600.
WHEREAS, the City of Pasco (City) Comprehensive Plan was adopted on June 7, 2021,
that complies with the requirements of the Washington State Growth Management Act, and the
requirements of RCW 36.70A; and
WHEREAS, the City applied for and received funding support from the Washington State
Department of Commerce to develop a Housing Action Plan pursuant to RCW 36.70A.600; and
WHEREAS, the goal of the Housing Action Plan is to encourage the construction of
additional affordable and market rate housing in a greater variety of housing types and at prices
that are accessible to a greater variety of incomes, including strategies aimed at for -profit single-
family home market; and
WHEREAS, the Plan was developed by evaluating the City's ongoing efforts, reviewing
local housing policieg and regulations, analyzing Pasco's current and future housing needs, and
collaborating with housing stakeholders; and
WHEREAS, the planning effort included a comprehensive public engagement effort, that
included a public survey and four housing stakeholder workshops and public hearings with the
Planning Commission; and
WHEREAS, the terms of the grant require legislative action to adopt the Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PASCO, WASHINGTON:
That the City of Pasco Housing Action and Implementation Plan, attached hereto as
Exhibit A and incorporated herein by this reference, is hereby adopted.
Be It Further Resolved, that pursuant to the terms of the grant received from the
Washington State Department of Commerce, the Community and Economic Development
Director will submit a copy of this Resolution with the Washington State Department of
Commerce.
Be It Further Resolved, that this Resolution will take effect immediately.
Resolution — Housing Action Plan - 1
PASSED by the City Council of the City of Pasco, Washington, on this 6th day of
November, 2023.
Blanche Barajas
Mayor
ATTEST:
Debra Barham, CMC
City Clerk
Resolution — Housing Action Plan - 2
APPROVED AS TO FORM:
Kerr Fe n Law, PLLC
Cit ttorneys
Pasco
HOUSING ACTT
IMPLEMENTATION
PLAN
NOVEMBER
2024
OR Oneza & Associates
ECONorthwest
ECONOMICS
NYU I WAGNER
HOUSING OPTIONS
FOR ALL
Thankyou
Special thanks to the entire City of Pasco community for sharing your time, knowledge, and
energy to put forth a strategy that aims to meet your needs and interests.
City Council
Mayor Blanche Barajas, District 1
Mayor Pro Tern Irving Brown, Sr., District 3
Councilmember Joseph Campos, District 2
Councilmember Pete Serrano, District 4
Councilmember David Milne, District 5
Councilmember Melissa Blasdel, District 6
Councilmember Zahra Roach, At Large
Councilmember Craig Maloney (past
member)
City Staff
Adam Lincoln, City Manager
Richa Sigdel, Deputy City Manager
Angela Pashon, Assistant City Manager
Jacob B. Gonzalez, Director of Community
and Economic Development
Jessica Brackin, Development Services Lead
Kristin Webb, Community Development
Block Grant Coordinator
Community and Economic Development
Staff
Community Members and Partners
Planning Commission
No. 1 Rosa Torres
No. 2 Mitchell Moffitt
No. 3 Paul Mendez — Vice Chair
No. 4 Kim Lehrman
No. 5 Able Campos
No. 6 Dana Crutchfield
No. 7 Rachel Teel
No. 8 Jay Hendler
No. 9 Jerry Cochran — Chair
Tanya Bowers (past member)
Consultant Team/ Support
Oneza & Associates
ECONorthwest
NYU Wagner 2022-2023 Capstone Team
o Lucia Marquez Reagan
o Daniel Russo
o Douglas Pardella
o Alex Yamron
o Karen Yao
Special thanks to the Housing Stakeholder Workshop Group, whose expertise and commitment
helped steer this plan in the right direction. We also want to express our appreciation to the
over 850 community members who took the time to share their insights and perspectives
through our Community Housing Survey. Your voices have been a driving force behind our
efforts. Thank you.
This plan was supported by a Washington State Department of Commerce grant for cities to
support housing affordability.
City of Pasco Housing Action Plan 1
Table of Contents
EXECUTIVESUMMARY..........................................................................................................................4
INTRODUCTION..................................................................................................................................5
ORGANIZATION OF THE REPORT...................................................................................................................................5
CONTEXT.................................................................................................................................................................5
EXISTING HOUSING CONDITIONS..........................................................................................................6
WHOLIVE IN PASCO?.................................................................................................................................................6
WHATARE THE ECONOMIC CONDITIONS FOR HOUSING?..................................................................................................10
HOMELESSNESS......................................................................................................................................................15
AFFORDABLE HOUSING PROGRAMS............................................................................................................................15
DISPLACEMENTRISKS..............................................................................................................................................16
MARKETASSESSMENT.......................................................................................................................22
OVERVIEWAND PURPOSE..........................................................................................................................................22
ECONOMIC CONDITIONS...........................................................................................................................................22
EMPLOYMENTGROWTH............................................................................................................................................22
DEMOGRAPHIC PROFILE...........................................................................................................................................25
POPULATION AND HOUSEHOLDS................................................................................................................................26
HOUSING PROFILE AND MARKET ASSESSMENT.............................................................................................................28
DEFINING AFFORDABLE HOUSING..............................................................................................................................29
HOUSINGSUPPLY....................................................................................................................................................29
HOUSINGCOST.......................................................................................................................................................33
ASSETS, OPPORTUNITIES, AND CHALLENGES......................................................................................47
HOUSING NEED PROJECTIONS...........................................................................................................48
POPULATION PROJECTIONS......................................................................................................................................48
HOUSING NEED BY INCOME LEVEL..............................................................................................................................48
SUMMARY OF HOUSING NEEDS IN PASCO............................................................................................49
WHOLIVES IN PASCO TODAY?...................................................................................................................................49
WHAT WILL PASCO's FUTURE POPULATION LOOK LIKE?................................................................................................49
WHAT ARE THE CURRENT HOUSING AFFORDABILITY CONDITIONS IN PASCO?....................................................................50
KEY FUTURE HOUSING TRENDS IN PASCO...................................................................................................................51
HOUSING STRATEGIES AND ACTIONS..................................................................................................52
REFERENCES....................................................................................................................................55
APPENDICES..................................................................................................................................... 55
City of Pasco Housing Action Plan
Table of Exhibits
Exhibit 1. Population Growth, Pasco and Franklin County, 2010-2021....................................... 5
Exhibit 2. Median Age, Pasco, Franklin County, and Washington, 2021...................................... 6
Exhibit 3. Change in Age Distribution, Pasco, 2010-2021............................................................. 7
Exhibit 4. Race and Ethnicity, Pasco, 2010-2020........................................................................... 8
Exhibit 5. Income by Race, Franklin County, 2010-2019............................................................... 8
Exhibit 6. Households in Pasco, 2010-2019................................................................................... 9
Exhibit 7. Households Family and Non -Family, Pasco, 2010-2020.............................................. 9
Exhibit 8. Home -owners and Renters, Pasco, 2021....................................................................
10
Exhibit 9. Unemployment Rate in Franklin County, Washington, and U.S, 2021......................
10
Exhibit 10. Median Income in Franklin County, 2010 to 2019.....................................................
11
Exhibit 11. Median Income in Pasco, 2021..................................................................................
11
Exhibit 12. Cost Burdened Households - Renters, 2019.............................................................
12
Exhibit 13. Cost Burdened Households - Renters, 2010 and 2021.............................................
12
Exhibit 14. Cost Burdened Households - Owners, 2019..............................................................
13
Exhibit 15. Cost Burdened Households - Owners, 2019..............................................................
13
Exhibit 16. Housing Types, Pasco, 2021......................................................................................
14
Exhibit 17. Age of Housing Units, Pasco 2021.............................................................................
14
Exhibit 18. Total Homeless People and Homelessness Persons Per 1,000 Residents ...............
15
Exhibit 19. CDBG Allocation by Year............................................................................................
16
Exhibit 20. Percent of Individuals Living in Poverty by Race ......................................................
18
Exhibit 21. Percent of Individuals Experiencing Poverty............................................................
19
Exhibit 22. Predominance Race/ Ethnicity by Census Tracts .....................................................
19
Exhibit 23. Percent change in Non-Hispanic/Latino and White Population from 2011-2021...
20
Exhibit 24. Percent change in BIPOC Population from 2011-2021.............................................
20
Exhibit 25. Change in Share of Non -Hispanic White Population from 2011-2021.....................
21
Exhibit 26. Change in Share of BIPOC Population from 2011-2021............................................
21
Exhibit 27. Employment by Industry in Pasco, 2010 and 2019...................................................
23
Exhibit 28.Employment in Pasco and where Residents Work, 2019..........................................
25
Exhibit 29. Household Size, Pasco, 2019 and 2021.....................................................................
26
Exhibit 31. Age Distribution, Pasco, 2019 and 2021....................................................................
27
Exhibit 32. Race and Ethnicity, Pasco, 2019 and 2021................................................................
28
Exhibit 33. Housing Type in Pasco, 2021.....................................................................................
30
Exhibit 34. Number of Bedrooms, Pasco, 2021...........................................................................
30
Exhibit 35. Building Permits, 2010-2021......................................................................................
31
Exhibit 36. Age of Housing Units, Pasco 2021.............................................................................
32
Exhibit 37. Vacancy Rate and Household Count, Pasco, 2021...................................................
33
Exhibit 38. Median Zillow Home Value (ZHVI), Pasco and comparison cities, 2010-2022.........
34
City of Pasco Housing Action Plan 2
Exhibit 39. Percent Change in Home Value (ZHVI), Pasco and comparison cities, 2010-2022.. 34
Exhibit 40. Housing Costs and Income Trends, Pasco, 2020-2021.............................................
35
Exhibit 41. Housing Costs and Income Trends, Pasco, 2020-2021.............................................
36
Exhibit 42. Pasco Multifamily Rental Market Snapshot..............................................................
36
Exhibit 43. Multifamily Rent per Square Foot and Vacancy Rate, Pasco, 2011-2023 Q3...........
37
Exhibit 44. Multifamily Deliveries and Net Absorption, Pasco, 2011-2023 Q3...........................
38
Exhibit 45. Homeownership Rates by Race/Ethnicity, 2021.......................................................
39
Exhibit 46. Renter Households, Pasco, 2010-2021......................................................................
39
Exhibit 47. Renter Cost Burden, Pasco, 2010 and 2021..............................................................
40
Exhibit 48. Average Rent and Median Sale Price in Paso and related affordability, 2023.........
41
Exhibit 49. Housing Affordability in Pasco by AMI, 2023.............................................................
42
Exhibit 50. Housing Affordability in Franklin County by Industry and Wages, 2023 .................
44
Exhibit 51. Housing Costs by Housing Prototype, 2023..............................................................
45
Exhibit 52. Housing Unit Costs by Housing Prototype, 2023......................................................
46
Exhibit 53. Pasco Population Projections, 2020-2045................................................................
48
Exhibit 54. Housing Needed by Income Level in Pasco by 2045.................................................
49
City of Pasco Housing Action Plan 3
Executive Summary
The City of Pasco's Community and Economic Development Department proudly presents its
first comprehensive strategy to address the pressing housing challenges facing our community.
Pasco has witnessed remarkable growth, tripling in size since 2000, and is home to over 80,000
residents. Projections indicate that by 2045, more than 140,000 community members will call
Pasco home.
Our plan is a product of extensive community and stakeholder engagement, tailored to Pasco's
unique needs and future demands. It outlines actionable strategies, rooted in current
environment, while considering the evolving housing landscape. We are committed to forming
robust partnerships with agencies, organizations, the private sector, nonprofits, and advocacy
groups to fulfill these housing needs.
This plan's driving force is to ensure that Pasco remains a welcoming home for all residents,
regardless of their diverse needs and life experiences. This plan affirms our dedication to
providing a range of housing options to create a more inclusive and thriving community.
As we proceed with the plan's implementation strategies, we invite all residents and businesses
to actively engage in building a stronger Pasco. Together, we can ensure that housing remains
accessible to all, fostering a more vibrant and equitable city.
City of Pasco Housing Action Plan
Introduction
Pasco Housing Action Plan (HAP) is a strategic plan to identify ways the City can meet its
present and future housing needs for all households. Pasco is one of the fastest growing cities
in the Tri-Cities region. The City's population is estimated to reach 121,828 in 2038 according
to the Office of Financial Management. This will be a 52% increase from the City's 2022
population of 80,180. The plan encourages the construction of affordable and market -rate
housing to increase the supply of housing.
The State legislature has implemented several policies to encourage housing supply including
House Bill 1923 to make changes to zoning and development regulations. The City of Pasco is
undertaking the HAP to better understand the housing challenges faced by city residents,
workers, and employers, and how to best address them.
Organization of the Report
This document discusses three major components of a Housing Action Plan, existing housing
conditions, market assessment, and need projections. Based on these analyses, recommended
strategies and actions are identified. Additional analysis on existing housing conditions and
displacement analysis have been performed by NYU Wagner Capstone Team and are available
under appendices B and C. Public participation results are available in Appendix A.
Context
Both the City of Pasco and Franklin County experienced a rapid population growth between
2010 and 2021. Since 2010, Pasco saw its population grow by 32 percent or 18,919 people. This
translates to an annual average growth rate (AAGR) of 2.53 percent for Pasco between 2010
and 2021. Similarly, Franklin County's population grew by 26 percent or 20,187 people. Franklin
County's AAGR between 2010 and 2021 was slightly lower than Pasco at 2.11 percent. Overall,
the City of Pasco makes up 80 percent of Franklin County's total population in 2021.
Exhibit 1. Population Growth, Pasco and Franklin County, 2010-2021
Source: Office of Finance and Management (OFM), ECONorthwest calculations
Pasco
59,781
77,108
78,700
18,919
2.53%
Franklin County
78,163
96,749
98,350
20,187
2.11%
Data sources
The demographic and socioeconomic data was derived from US Census data for Pasco and the
American Community Survey (ACS) 5-Year Estimates and. The ACS is a demographic survey
City of Pasco Housing Action Plan 5
distributed to American homes, designed to collect demographic data ranging from race to
ability/disability. Using Franklin County census tracts, data was compiled to create a profile of
the City of Pasco. Data from the Office of Financial Management (OFM) and Comprehensive
Housing Affordability Strategy (CHAS) were also used.
Existing Housing Conditions
This section identifies Pasco's existing housing conditions and future needs. This gives an
overview of Pasco's demographic conditions, housing inventory, growth, and employment
trends. A detailed analysis on Pasco's existing conditions is performed by New York University
Wagner Capstone Team (Appendix A). This section evaluates demographic and economic
conditions of the community.
Who live in Pasco?
Pasco's population is relatively young
Exhibit 2. Median Age, Pasco, Franklin County, and Washington, 2021
Source: American Communitv Survev (ACS) 20215-near estimates
Median Age 1 29.9 1 30.5 1 37.9
■ Pasco's population generally skews younger with a median age of 29.9. In comparison,
Franklin County has a median age of 30.5 and Washington 37.9. Children (ages 0 to 17
years old) represent 33 percent of the population, while adults ages 18 to 64 make up
about 58 percent.
Senior adults (60 years and older) saw the fastest growth in the past decade
Between 2010 and 2021, Pasco had increased number of residents among seniors 65 years and
older. Senior residents age 60 and older saw almost a 90 percent increase between 2010 and
2021. Although Pasco does not have a large senior population, this population cohort has
rapidly grown over the past decade (Exhibit 3).
City of Pasco Housing Action Plan
Exhibit 3. Change in Age Distribution, Pasco, 2010-2021
Source: American Community Survey (ACS) 2010 and 20215-year estimates
65 years and older
60 to 64 years
50 to 59 years
40 to 49 years
30 to 39 years
18 to 29 years
Age U nd er 18
0% 20% 40% 60% 80% 100% 120%
The Hispanic community continues to be a growing population group in Pasco
■ Between 2010 and 2020, all race groups in Pasco have increased except for White non -
Hispanic which decreased one percent. The majority of Pasco's residents are Hispanic
(55.5%) and White non -Hispanic (36.8%). Exhibit 4 indicates race and ethnicity in Pasco
in 2010 and 2020.
■ In 2021, over half (56 percent) of Pasco's population identified as Hispanic. Growth
trends indicate that Pasco will continue to grow rapidly, and Hispanics will continue to
be a majority ethnic group.
City of Pasco Housing Action Plan 7
Exhibit 4. Race and Ethnicity, Pasco, 2010-2020
Source: US Census Bureau. According to US Census, Hispanics maybe of any race, so also are included in applicable race
Hispanic or Latino
Some Other Race/Two or More Races (Non -
Hispanic)
Native Hawaiian/Other Pacific Islander (Non -
Hispanic)
Asian (Non -Hispanic)
American Indian or Alaska Native (Non -Hispanic)
Black or African American (Non -Hispanic)
White (Non -Hispanic)
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%
2020 b,2010
Socio-economic gaps exist between Non -Hispanic White residents and Black and
Hispanic residents
■ Percentage of people living in poverty was highest among Hispanic (30%) in 2010, which
has been reduced (22%) in 2019. The percentage of people living in poverty has been
increased among Black of African American from 20% in 2010 to 27% in 2019. Non -
Hispanic White has the decreasing trend from 9.4 % in 2010 to 7% in 2019.
■ Pasco's median household income is $70,486 according to 2021 census. Between 2010
and 2019, distribution of income is higher among White non -Hispanic compared to
Hispanic, and Black or African American (Exhibit 5).
Exhibit 5. Income by Race, Franklin County, 2010-2019
Citywide O
Black or African American
Hispanic or Latino
Non -Hispanic White
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000
2019 ■ 2010
City of Pasco Housing Action Plan 8
■ Rates of college completion and attendance rose for Non -Hispanic White residents and
Hispanic residents between 2010 and 2019. College completion is lower among Black or
African American (15.3% and 6.4%). Overall, the lower educational attainment is a factor
impacting long -run economic opportunity and mobility.
Smaller households are increasing in Pasco
■ Over the last decade or so, small households increased and large households decreased,
suggesting that future home demand may be satisfied by smaller dwelling units. The
number of one, two- or three -persons households have increased while the four -person
household has decreased from 39% to 36% in the last decade as shown in Exhibit 6.
■ The average household size in Pasco has decreased from 3.32 in 2021 to 3.14 in 2022
(source: OFM)
Exhibit 6. Households in Pasco, 2010-2019
50
40
30
20
10
0
1 person 2 people 3 people 4 people
■ 2010 2019
Household make-up remains similar
■ Various household types in Pasco such as family ((married and other), and non -family
(living along and not living alone) remains the same in the last decade. Family
constituting 76% and non -family constituting 24% of the total household types in 2020
(Exhibit 7).
Exhibit 7. Households Family and Non -Family, Pasco, 2010-2020
80
70
60
50
40
30
20
'10
0
Family
Married Other family Non -family Living alone Not living
(married
(living along alone
and other)
and not
living alone)
■ 2010 2020
City of Pasco Housing Action Plan 9
Home ownership is higher among older population.
■ Pasco had 74% of owner -occupied homes, and 26% renter occupied homes in 2021.
Among all the homes, 61% is occupied by owners of 35 years or older (Exhibit 8).
Exhibit 8. Home -owners and Henters, Pasco,1U11
Renter occupied 35 and older 15%
Renter occupied 34 and under 11%
Owner occupied 35 and older 61%
Owner occupied 34 or under ,1pJ' 13%
0% 10% 20% 30% 40% 50% 60% 70%
What are the economic conditions for housing?
Since 2010, unemployment rate has decline from a high of 10 percent in 2012, down to 6.6
percent in 2019. The COVID-19 pandemic of 2020 had an effect in jobs increasing the
unemployment rate to 8.7 percent before quickly declining to 6.6 percent in 2021. In 2021 the
unemployment rate was slightly higher in Franklin County compared to Washington and the
State (Exhibit 9). Overall, labor market conditions are strong in Pasco with steady job growth
and declining unemployment rate.
Exhibit 9. Unemployment Rate in Franklin County, Washington, and U.S, 2021
Source: Employment Security Department/LMEA; U.S. Bureau of Labor Statistics, Local Area Unemployment Statistics
12%
10%
6.6%
8%
6%
4% 5.3%
2%
0%
.y0
,LO ,y0 ,ti0 10 ,ti0 ,LO ,LO ,LO ,10 ,LO ,y0 ,ti0
Franklin County —Washington U.S.
City of Pasco Housing Action Plan 10
Median income of Hispanic households was 76% of the Non -Hispanic White
households Countywide
■ Median household income in Pasco was $70,486 in 2021. Among various groups,
median income is highest among Non -Hispanic White ($89,121). Hispanic households
made 76% of the Non -Hispanic White households ($68095) in 2021. Overall income has
increased among all groups in the last decade, but income disparities still remain.
Increase in median income is highest among Hispanic households in the last decade.
Exhibit 10 indicates median Income in Franklin County from 2010 to 2019, and Exhibit
11 indicates median income in Pasco among different races.
Exhibit 10. Median Income in Franklin County, 2010 to 2019
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Non -Hispanic Hispanic or Latino Black or African Citywide
White American
■ 2010 ■ 2019
Exhibit 11. Median Income in Pasco, 2021
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
Non -Hispanic Hispanic or Black or African Citywide
White Latino American
City of Pasco Housing Action Plan 11
People earning 50% or less of the area median income (AMI) are mostly cost
burdened.
State and federal standards specify that households spending more than 30% of gross annual
income on housing experience a housing cost burden. Exhibit 12 indicates cost burdened
renters, and Exhibit 21 indicates cost burdened owners in Pasco in 2019.
• Approximately 64% of renters and 22% of owners are cost burdened in Pasco (Source:
CHAS data year 2015- 2019).
Exhibit 12. Cost Burdened Households - Renters, 2019
3,000
2,500
2,000
1,500
1,000
500 ■
■
■
0
Household
Household
Household Household Household
Income <= 30% Income >30% to
Income >50% to Income >80% to Income >100%
HAMFI
<=50%HAMFI
<=80% HAMFI <=100% HAMFI HAMFI
■ Cost burden > 30% ■ Cost burden > 50%
Cost burden among renters in Pasco have remained high since 2010
■ Although cost burden has remained a little over 50 percent since 2010, the share of
renters that are severely cost burdened has declined over time from 29 percent in
2010 down to 23 percent in 2021. This indicates that fewer renters are spending over
50 percent of their household income in housing costs (Exhibit 13).
Exhibit 13. Cost Burdened Households - Renters, 2010 ar
■ Severely Cost Burden Cost Burden
60%
50%
40%
30%
20%
10%
0%
2010 2021
Renter
Id 2021
City of Pasco Housing Action Plan 12
Exhibit 14. Cost Burdened Households - Owners, 2019
1400
1200
1000
800
600
400
200
0
■
_
Household Household Household
Household
Household
Income <= 30% Income >30% to Income >50% to Income >80% to
Income >100%
HAMFI <=50% HAMFI <=80% HAMFI
<=100% HAMFI
HAMFI
■ Cost burden > 30% ■ Cost burden > 50%
Median renter incomes have grown but remain very low.
■ Median renter incomes have grown in the past decade, however in 2021 median renter
incomes were $38,588 compared to $86,676 for the median owner income (Exhibit 15).
txhibii 1J. L05L t5uraene❑ riousenotas - Owners, 2019
Median Ownerincome —Median renterincome
$100,000
$90000
$86,676
$80,000
-"
$70,000
$60,000
$50,000
$56,362
$40,000
$38,588
$30,000
$20,000
$25,841
$10,000
$0
2010 2021
Pasco
City of Pasco Housing Action Plan 13
What are the current housing conditions in Pasco?
Single family homes dominate the housing stocks
■ In the past five years, single-family dwelling units both attached and detached has been
the pre -dominant housing types available in Pasco consisting about 80% of Pasco's
housing supply (Exhibit 16).
Exhibit
16. Housing Types, Pasco, 2021
120
100
80
60
40
20
0
2017 2018 2019 2020 2021
■ SFDU - MF Mobile Home
Majority of homes were built before 2010
Exhibit 17 shows the age of housing units in Pasco. The majority of Pasco's housing units were
built in the 1970's and early 2000's. Units built since 2010 make up a small share of Pasco's
total housing supply.
Exhibit 17. Age of Housing Units, Pasco 2021
Source: 2021 ACS 5-year estimates
25%
20%
15%
10%
5%
0%
1940 or 1940 to 1950 to 1960 to 1970 to 1980 to 1990 to 2000 to 2010 or
earlier 1949 1959 1969 1979 1989 1999 2009 later
City of Pasco Housing Action Plan 14
Homelessness
Visible homelessness has declined in Benton -Franklin Counties since 2006. Based on the point -
in -time count' in 2020, there were 190 persons without homes, most of whom are sheltered.
Exhibit 18 shows the trend of sheltered and unsheltered homeless population in Benton and
Franklin Counties.
Exhibit 18. Total Homeless People and Homelessness Persons Per 1,000 Residents
Source: oentoniranklintrends.org(grapn.cim%cat id=7&sub cat id=4&ind id
1,000
750
u
500
250
0
1011, 1011, 011 4? _�' e .y°__ °111 tieo le 101 le
■ Benton 6 Franklin counties - Sheltered
■ Benton S Franklin Counties - Unsheltered
Benton 6 Franklin Counties - Horne!ess Persons per 1,000 Residents
+ Washington State - Homeiess Persons per 1000 Residents
b
6.00
4.00 i
2.00
0.00
Student homelessness in Benton -Franklin Counties exist although has declined significantly
since 2014. This is not visible as this is evident in the form of shared spaces (EWU, 2022)
Affordable Housing Programs
Down Payment Assistance program. Under the City of Pasco's Community and Housing
Improvement Program (CHIP), the City provides Down Payment Assistance (DPA) program to
qualifying residents using Community Development Block Grants (CDBG). Under this program,
the City will provide financing up to a $10,000, which enables a low to moderate income
person(s) or family to purchase a vacant or owner -occupied home for sale within the Pasco city
limits.
The DPA program has seen reduction in funding due to HUD's restrictions and cap on eligible
sale prices of homes. The sales price should not exceed 95% of the current median purchase
price for the area according to HUD's eligibility requirements. In 2021, sales price for eligibility
1 The Point -in -Time homeless count is an enumeration of sheltered and unsheltered people experiencing
homelessness on a single Wednesday night in January.
City of Pasco Housing Action Plan 15
is $302,000, and the median home price is $336,093 in Pasco. As a result, the CDBG funding is
being used in other community activities as shown in Exhibit 19 below.
Exhibit 19. CDBG Allocation by Year
Source: Consolidated Annual Performance Evaluation Reports (CAPERs)
CDBG: Funding Allocation by Reporting Year
General Administration 0 Public Service M Community Development
Affordable Housing
$800,000
$600,000
$400,000
$200,000
$0 ----- — — — —..
2015 2016 2017 2018 2019 2020
Habitat for Humanity. Tri-County Partners Habitat for Humanity (Habitat) serves Franklin,
Benton, and Walla Walla counties. Habitat for Humanity offers homeownership opportunities
to families who are unable to obtain conventional house financing. Generally, this includes
those whose income is 30 to 80 percent of the area's median income. As part of the program,
they contribute 500 hours of "sweat equity" on the construction of their home or someone
else's home (Habitat for Humanity, 2023). Habitat has built 87 homes in Pasco.
DSHS support. Washington State Department of Social and Health Services offers services at
the County level for persons with disabilities. In addition to various social services, DSHS
programs include Housing and Essential Needs (HEN), Community Behavioral Health Rental
Assistance (CBRA), and Shelter Plus Care program that serves persons in behavioral health
services. The HEN Referral program provides access to essential needs items and potential
housing assistance for low-income adults who are unable to work for at least 90 days due to a
physical or mental incapacity and are ineligible for Aged, Blind, or Disabled (ABD) cash
assistance. The CBRA provides permanent rental subsidy for high -risk individuals with
behavioral health conditions and their households. DSHS currently serves 147 households at the
County level under these programs.
Displacement Risks
Overview
Displacement occurs when households are no longer able to remain in their homes due to rising
housing cost. This may be a result of various factors such as redevelopment, major
City of Pasco Housing Action Plan 16
renovations, or housing costs increasing faster than what people can afford. Residents may be
forced out due to physical conditions that render homes needing redevelopment by owners. In
Pasco, costs of home ownership and rents have risen over the past years, leaving low-income
residents within the City particularly vulnerable to negative housing outcomes. The housing
market in Pasco as served by the private sector is likely to continue to cater to the higher end of
the economic spectrum. This creates a gap between available and affordable housing choices.
This trend eliminates the existing affordable housing options and reduces the ability for Pasco
to grow in inequitable fashion.
Types of displacement
Three main types of displacements are generally observed.
Physical displacement occurs if existing housing are subject to redeveloped and existing
tenants are displaced. This occurs when the market becomes feasible for development or
redevelopment, meaning a strong demand of housing can encourage property owners to
upgrade existing rental properties. This includes displacement as a result of eviction,
acquisition, rehabilitation, or demolition of property, or the expiration of covenants on rent- or
income -restricted housing.
Economic displacement can occur due to the inability of the households to afford rising rents
or costs of homeownership like property taxes. When new developments of redevelopments in
the vicinity rents or sells at a higher price, that encourages owners of existing units to increase
rents, and these increases exceed what existing tenants can afford. Economic displacement can
occur without redevelopment if the market has high demand and low supply of housing. Lower
income groups are at higher risk of economic displacement.
Cultural displacement occurs when residents move because the people, businesses and
institutions that make up their cultural community have left the area. This affects ethnic
minority households as the presence of their cultural assets play a significant role about where
they would prefer to live, raise children and age. Low income and racially minority
communities are at higher risk of cultural displacement.
While physical displacement can be measured, economic and cultural displacements can be
difficult to measure. Several indicators help identify the displacements such as percentage of
people living in poverty, race and ethnicity of people living in poverty, concentrations of
poverty, and changes of population overtime.
Household income by race and ethnicity shown in Exhibit 5 indicates distribution of income is
higher among White non -Hispanic compared to Hispanic, and Black or African American.
Percentage of people living in poverty was highest among Hispanic (30%) in 2010, which has
been reduced (22%) in 2019. In 2019, poverty increased among Black or African American
population (Exhibit 20).
City of Pasco Housing Action Plan 17
Exhibit 20. Percent of Individuals Living in Poverty by Race
(Higher percent indicated by darker shade of ourDle)
Non -Hispanic White 1 9.4 1 7
Hispanic or Latino 1 30.1 1 22.2
Black or African American 1 20.3 1 27
Citywide
21.1 1 16.3
In Exhibit 21, the area shown in darker shades of purple indicates higher concentration of
poverty. Exhibit 22 indicates census tracts with predominant races. The East Pasco area consists
of more Hispanic population that coincides with higher concentration of poverty.
Exhibits 23 and 24 identify the areas in Pasco where population is changing for non -Hispanic
White and Black, Indigenous, People of Color (BIPOC) population. These maps indicate a loss of
population (non -Hispanic White and BIPOC) over a decade in the east side of the city including
the City Center area. These are the areas with higher risks of displacement.
Exhibits 25 and 26 identify areas in Pasco with change in share of non -Hispanic White and Black,
Indigenous, People of Color (BIPOC) population. Exhibit 26 indicates a negative change in share
for the City Center area for BIPOC population. Overall, this change in share has increased for
this population group for the rest of the City except for a few areas where non -Hispanic White
has an increase in share. See Appendix C for additional details.
City of Pasco Housing Action Plan 18
Exhibit 21. Percent of Individuals Experiencing Poverty
Exhibit 22. Predominance Race/ Ethnicity by Census Tracts
(Non -Hispanic White in Purple, Hispanic/Latino in orange)
blm,I
Ken
a
STRAY
:e-ISI
bank
City of Pasco Housing Action Plan 19
Exhibit 23. Percent change in Non-Hispanic/Latino and White Population from 2011-2021
Exhibit 24. Percent change in BIPOC Population from 2011-2021
City of Pasco Housing Action Plan 20
Exhibit 25. Change in Share of Non -Hispanic White Population from 2011-2021
(Source: Per US Census Bureau American Community Survey 5-Year Estimates (2006-2011 versus 2016-2021)
0 (ol Pasco City Limits
r �0 County Lines
102.01 1 2. 1,
101 206.08
107.03
_- 112. 4 i! —
107.08 -
105 I
103 206-06
206.07
107.05 Q' 20605 \
108.18
116
205.01
05.0
T,08.20 — I 202
1 081 205.03 0
20�1os 11 I10809 110.01
\_.:' 113
\ 108 10 10 02
10816�' 110.02 2.02
�— - --1 111 114.01
Change in Share of Non -
Hispanic White
Population to Total
Population
_ 5% or More
® 1%to 5%
-1%to 1%
n -5%to -1 %
-5% or Less
N/A
201.02 >
207
r
201.01
1200
Exhibit 26. Change in Share of BIPOC Population from 2011-2021
City of Pasco Housing Action Plan 21
Market Assessment
Overview and Purpose
This section provides an analysis of Pasco's housing and market assessment. The housing
market assessment provides information about Pasco's existing economic, demographic, and
housing market which all affect the demand for and pricing for housing. The information
provided in this report serves a foundation for policy recommendations to design
implementable housing strategies for Pasco and to build the housing needed to accommodate
future population growth.
Economic Conditions
This section discusses key components of Pasco's economy, which affect the demand for and
pricing of housing. The section summarizes Pasco's employment trends, unemployment, and
other labor market indicators.
Key Finding
Labor market conditions are strong in Pasco with steady job growth and declining
unemployment rate. Pasco continues to diversity its economic base.
Pasco experienced employment growth in retail trade, accommodation and food
services, manufacturing and construction, and notable employment losses in health
care and social assistance, educational services, and other services (excluding public
administration).
■ Unemployment rates indicate that Pasco has recovered to pre-COVID-19 conditions.
Employment Growth
Employment growth accompanied population growth in Pasco between 2010 and 2019,
especially in the sectors of retail trade, accommodation and food services, manufacturing, and
construction. Employment in the good producing category, in general, grew 60% from 2010 to
2019 and represents about a quarter of total employment. Service producing jobs make up the
other nearly three quarters of Pasco jobs. Employment sectors of notable decline between
2010 and 2019 include health care and social assistance, educational services, and other
services (excluding public administration).
Education services is the principal employment concentration in Pasco, accounting for 16
percent of the jobs in the city, partly because of the Pasco School District and Columbia Basin
College (CBC). Retail is the second largest concentration of jobs mostly driven by the rapid
population growth and the Tri-Cities being southeast Washington's regional economic center
for retail trade. Food processing is the principal manufacturing activity in Pasco, accounting 12
City of Pasco Housing Action Plan 22
percent of the overall jobs coming from the presence of the Lamb Weston company. Exhibit 27
shows employment by industry in Pasco and changes from 2010 to 2019.
Exhibit 27. Employment by Industry in Pasco, 2010 and 2019
Source: U.S. Census Bureau; OnTheMap Application and LEHD Origin -Destination Employment Statistics (2019);
ECONorthwest Calculations
IndustryChange
Good Producing
Agriculture, Forestry, Fishing
and Hunting
2010
•
19%
822 4%
2019
•er Percent
5,860 26%
1,229 5%
Percent
2010-2019
60%
50%
Mining, Quarrying, and Oil
and Gas Extraction
2
0%
9
0%
350%
Construction
1,232
7%
1,912
8%
55%
Manufacturing
Service Producing
Utilities
1,613
9%
2,710
12%
68%
15,237
169
81%
1%
16,810
74%
10%
161
1%
-5%
Wholesale Trade
1,300
7%
1,413
6%
9%
Retail Trade
2,019
11%
3,404
15%
69%
Transportation and
Warehousing
766
4%
1,054
5%
38%
Information
143
1%
132
1%
-8%
Finance and Insurance
312
2%
329
1%
5%
Real Estate and Rental and
Leasing
277
1%
345
2%
25%
Professional, Scientific, and
Technical Services
586
3%
494
2%
-16%
City of Pasco Housing Action Plan 23
2010
2019
Percent
Change
Industry
Number
Administration & Support,
665 4%
748 3%
12%
Waste Management and
Remediation
Educational Services
3,783
20%
3,739
16%
-1%
Health Care and Social
1,822
10%
1,351
6%
-26%
Assistance
Arts, Entertainment, and
314
2%
368
2%
17%
Recreation
Accommodation and Food
1,097
6%
1,967
9%
79%
Services
Other Services (excluding
1,129
6%
595
3%
-47%
Public Administration)
Public Administration
855
5%
710
3%
-17%
Total Employment
18,906
22,670
20%
As indicated in Exhibit 10 and discussed under Existing Housing Conditions, unemployment rate
has decline from a high of 10 percent in 2012, down to 6.6 percent in 2019. The COVID-19
pandemic of 2020 had an effect in jobs increasing the unemployment rate but it declined in
2021. Overall, labor market conditions are strong in Pasco with steady job growth and declining
unemployment rate.
Employment Trends
Exhibit 28 shows the jobs that Pasco has and where residents work. Gaps exist between where
residents work and the jobs that Pasco offers in the city. The education industries, wholesale
trade, transportation, and utilities (WTU), retail, and manufacturing have more jobs in Pasco
than residents working in those fields. In 2019, a large share of Pasco residents worked in the
services, and construction and resources industries.
City of Pasco Housing Action Plan 24
Exhibit 28.Employment in Pasco and where Residents Work, 2019
Source: U.S. Census Bureau; OnTheMap Application and LEHD Origin -Destination Employment Statistics (2019)
Education - 8% ■ Jobs worked by Pasco
16% Residents
_ Government i 4%
1♦ 3% ■ Jobs in Pasco
Wholesale Trade, Transportation, and 8%
Utilities(WTU) - 12%
36%
Services
25%
Retail 12%
15%
_ Finance, Insurance, and Real Estate (FIRE) 3%
3%
Manufacturing 10%
12%
18%
Construction and Resources (Const/Res) �
14%
0% 10% 20% 30% 40%
Share of Jobs
Demographic Profile
Pasco's demographic profile has been discussed under the Existing Housing Conditions section
which provides a foundation context for the housing market analysis. The discussion below
includes some additional data around population growth and forecast, household
characteristics, and race and ethnicity.
Key Findings
Key highlights in Pasco's demographic trends include:
• Pasco has experienced rapid population growth since 2010. Pasco's population in
2021 was 78,700, representing a 32 percent increased (18,919 new residents) since
2010.
■ Since 2010, adults 60 to 64 years and those 65 years and older had the fastest growth
among age cohorts, increasing 98 percent and 81 percent respectively in Pasco.
Since 2019, household size has shifted in Pasco. The majority of Pasco households are
3- or more person households. Between 2019 and 2021,1-person households has
declined, while 2-peroon households has increased. This could indicate general
changes in household formations or possibly an indication of 1-person households
City of Pasco Housing Action Plan 25
struggling to afford housing in Pasco and need for rooming with a partner or
roommate to lessen housing costs.
Population and Households
Population growth and household formation are the primary drivers of demand for housing.
The rate of population growth and household characteristics heavily influence the demand for
specific housing types.
As discussed under the Existing Conditions section and in Exhibit 1, Pasco and Franklin County
experienced a rapid population growth between 2010 and 2021. Since 2010, Pasco saw its
population grow by 32 percent or 18,919 people. This translates to an annual average growth
rate (AAGR) of 2.53 percent for Pasco between 2010 and 2021.
household Size
The households in Pasco comprised of 3- or more persons make up 54% of the total
households, more than 1-person and 2-person households combined. Between 2019 and 2021,
there has been a considerable shift in the household size formation in Pasco. Most notably 2-
person households increased, while 1-person households and 3- or more person households
decreasing slightly (Exhibit 29). This trend could suggest that there are some affordability
challenges in Pasco for 1-person households.
Exhibit 29. Household Size, Pasco, 2019 and 2021
Source: American Communitv Survev (ACS) 2019 and 20215-year estimates
1-person household 1 20% 1 18%
2-person household 1 25% 1 28%
3- or more person household 1 55% 1 54%
Median Age
Pasco's population is very young, with a median age of 29.9 in 2021. In comparison, the median
age for Washington was 37.9—about 8 years older than Pasco's population.
Age Distribution
The age characteristics of a community indicate current needs and future trends for housing.
Because different age groups have very different housing needs, housing demand correlates to
the age of residents. For example, young adult households may choose to occupy apartments,
condominiums, and small single-family homes because of affordability, location, and household
size/presence of children. Middle-aged adults may prefer larger homes in which to raise
families, while seniors may prefer smaller units that have lower costs, less maintenance, and
are more proximate to services.
City of Pasco Housing Action Plan 26
Exhibit 30 shows the age characteristics of Pasco's population. Overall, the age distribution of
Pasco's population seems to be similar to that in 2019. Pasco's population generally tends to
skew younger. Children ages 0 to 17 comprised the largest cohort of residents in Pasco followed
by adults ages 18 to 64 making 57 percent of the city's population. Overall, Pasco has
maintained a relatively small population of senior adults age 65 years and older. However,
senior residents age 60 and older has rapidly grown over the past decade (Exhibit 3).
Exhibit 31. Age Distribution, Pasco, 2019 and 2021
Source: American Community Survey (ACS) 2019 and 2021 5-year estimates
Age
0 to 17 years
2019
33.6%
2021
33.1%
18 to 29 years
16.3%
16.6%
30 to 39 years
15.5%
14.5%
40 to 49 years
12.1%
12.7%
50 to 59 years
9.0%
9.0%
60 to 64 years
4.2%
4.5%
65 years and over
8.5%
9.0%
Race and Ethnicity
Most of Pasco's population (56% of residents) identify as Hispanic or Latino, while 37% identify
as White. Pasco residents that identify as Black, Asian, and two or more races each make up
about 2% of the remaining population. Between 2019 and 2021 Pasco's race and ethnicity has
remain about the same with some slight decrease in the population that identifies as White
(Exhibit 32).
City of Pasco Housing Action Plan 27
Exhibit 32. Race and Ethnicity, Pasco, 2019 and 2021
Source: American Community Survey (ACS) 2019 and 20215-year estimates
Race/ Ethnicity
White
2019
38%
2021
37%
Black
2%
2%
American Indian or Alaskan
Native
0%
0%
Asian
2%
2%
Native Hawaiian or Pacific
Islander
0%
0%
Some other race
0%
0%
Two or more races
2%
3%
Hispanic
56%
56%
Housing Profile and Market Assessment
This section summarizes Pasco's housing market. It examines housing supply and availability,
development trends, and affordability of ownership and rental housing.
A housing profile and housing market analysis are important for understanding housing
affordability and demand because they provide valuable information about the current state of
the housing market, including the supply of housing units, average cost of rent or
homeownership, and demographics of the area, which can help predict future housing demand
and need. Projecting future housing need is important to ensure that Pasco is planning ahead to
ensure that it is providing housing at all income -levels for its population —especially those with
lower incomes.
,.ey Findings
Key trends in the housing market include:
Homeownership rates have steadily increased in the past decade in Pasco. Generally,
homeownership rates have increased from 65 percent in 2011 up to 69 percent in
2021. In Washington, homeownership rates have generally decline from 64 percent
down to 63 percent.
City of Pasco Housing Action Plan 28
Cost burden among renters in Pasco have remained high since 2010. Although cost
burden has remained at 52 percent since 2010, the share of renters that are severely
cost burdened has declined over time from 29 percent in 2010 down to 23 percent in
2021. This indicates that fewer renters are spending over 50 percent of their household
income in housing costs.
Low housing vacancy rates and high demand for housing has strained Pasco's housing
market with large increases in housing prices. Since 2010, the median home value in
Pasco has increased 137 percent or $222,928, from $162,962 in 2010 up to $385,900 in
2022.
Household incomes have not kept pace with the rising costs for homeownership.
Between 2010 and 2021, the median household income has increased 58 percent,
while the median home value in Pasco has increased 106 percent. This significant
increase in homeownership costs have left many unable to purchase a home.
Shifts in incomes has continued to strain renter households in Pasco. Renters and
owners both experienced income growth between 2010 and 2021, but the magnitude
of the changes differs by tenure. In 2021, the median renter income in Pasco was
$38,588, compared to the median owner income of $86,676.
Household incomes have generally kept pace with the rising rents. Between 2010 and
2021, median rents increased 44 percent, while household incomes increased 58
percent. As households struggle to purchase a home, demand for rental units will
increase and potentially see large rent increases to accommodate the growing
demand. This also emphasizes the importance of constructing new rental units to
support the growing demand specially for lower income households.
In 2023, a Pasco household would need an annual income of at least $96,500 to be
able to afford the median home sale price of $386,000.
Defining Affordable Housing
Housing affordability refers to the degree to which a household or individual can afford to pay
for housing without experiencing financial hardship or sacrificing other essential needs.
According to the US Department of Housing and Urban Development (HUD), affordable housing
refers to a residence that a household or family can acquire - either through buying, renting, or
other methods - that requires payment of no more than 30% of the household's income.
Typically households paying more than 30 percent of their income for housing is considered
"cost burdened", while households paying more than 50 percent for housing are "severely cost
burdened."
Housing Supply
According to the American Community Survey (ACS), Pasco has 23,921 housing units as of 2021.
Exhibit 33 shows that single -dwelling detached homes make up the vast majority of housing
City of Pasco Housing Action Plan 29
units in Pasco. Multi -dwellings with 5 or more units make the second largest share of housing
type in Pasco —which make up 12 percent. Single -dwelling attached homes make up the
smallest share of housing in Pasco.
Exhibit 33. Housing Type in Pasco, 2021
Source: American Community Survey (ACS) 2021 5-year estimates
Nnta• Mnnnfartnrari hnmac Inure rataanri7Pd ac cinala-HIAIPIIina rIPtarharl hnmac
Housing•e
Single -dwelling detached
Total
18,516
Percent
77%
Single -dwelling attached
1,211
5%
Multi -dwelling (2-4 units)
1,341
6%
Multi -dwelling (5+ units)
2,853
12%
Other
0
0%
Total
23,921
100%
Number of Bedrooms
With single family detached units as the most common type of housing, it is not surprising that
most dwelling units in Pasco have 3 and 4-bedrooms as indicated in Exhibit 34. A small
percentage of Pasco's housing stock are studios (no bedroom) or 1-bedrooms. This indicates
that most of the single dwelling and multi -dwelling units in Pasco are supportive of family
households, with a very small share of units supportive for single residents. This limits the pool
of units that single households or couples could obtain in Pasco's housing market.
Exhibit 34. Number of Bedrooms, Pasco, 2021
Source: American Community Survey (ACS) 2021 5-year estimates
Numberof BedroomsTotal
No bedroom
782
3%
1 bedroom
1,565
7%
2 bedrooms
4,137
17%
3 bedrooms
11,133
47%
4 bedrooms
4,863
20%
5 or more bedrooms
1,441
6%
City of Pasco Housing Action Plan 30
Development Trends
Exhibit 35 shows trends in residential budling permits. Single -dwelling units have been the
dominant type of housing permitted in Pasco in the past decade, while limited multi -dwelling
units have been permitted overall.
Development trends show that Paco's housing market rebounded quickly after the 2008 Great
Recession with several housing units permitted in 2010. Figures reveal that after 2010 there
was a considerable drop in residential building permits through 2015, and have picked up in
2015. Although residential permitting has been increasing in recent years, it has not been to the
same volume seen in 2010.
Exhibit 35. Building Permits, 2010-2021
Source: HUD SOCDS Building Permits Database
■ Single -dwelling unit 2-unit multi -dwelling unit
3-and 4-unit multi -dwelling unit Multi -dwelling (5+ Units)
700
600
500
v 400
a
m
c
v
m 300 ■
200
100
0
y0 tit " ,y'3 yb tilt y0 tit y4� yoi ti0 0>
,LO ,LO ,LO ,LO
Exhibit 17 shows the age of housing units in Pasco. The majority of Pasco's housing units were
built in the 1970's and early 2000's. Units built since 2010 make up a small share of Pasco's
total housing supply.
City of Pasco Housing Action Plan 31
Exhibit 36. Age of Housing Units, Pasco 2021
Source: 2021 ACS 5-year estimates
25%
20%
15%
10%
� 1.1�11111
1940 or 1940 to 1950 to 1960 to 1970 to 1980 to 1990 to 2000 to 2010 or
earlier 1949 1959 1969 1979 1989 1999 2009 later
Housing Vacancy
Vacancy is a measure of the availability of housing units in a given area. When there are more
vacant units than there are people looking for a place to live, it can lead to lower rents and
other housing costs. This can make housing more affordable for people who are looking for a
place to live. On the other hand, when there is a low vacancy rate and a high demand for
housing, it can lead to higher rents and other housing costs. This can make housing less
affordable for people who are looking for a place to live.
Therefore, vacancy rates can have a significant impact on housing affordability in an area.
Exhibit 37 shows trends in vacancy rate for Pasco in the past decade. Since 2010, vacancy rate
in Pasco has declined from a high of 8 percent in 2010 down to 3.8 percent in 2017. The
vacancy rate has increased slightly since 2017 to 4.5 percent in 2021.
Generally, household count has increased in Pasco since 2010, while the number of occupied
households has increased in line with the household growth.
City of Pasco Housing Action Plan 32
Exhibit 37. Vacancy Rate and Household Count, Pasco, 2021
Source: 2010-2021 ACS 5-year estimates
30,000 9%
25,000
8%
7%
20,000 _ 6%
0 5%
N 15,000 v
0 4% >
10,000 3%
5,000
2%
1%
0 0%
,'S
,LO ,LO ,y0 ,LO ,LO ,LO ,LO ,y0 ,LO ,y0 ,LO ,y0
Vacancy Rate Total Households Occupied Households
Housing Cost
Housing costs is a direct relationship of housing accessibility to all economic segments of the
community. In general, if housing supply exceeds housing demand, housing prices will
decrease. If housing demand exceeds housing supply, housing prices typically increase. The
availability of housing which is measured by vacancy rates can also affect housing cost.
Between 2010 and 2022 housing prices have significantly increased in Pasco and across the
region. Exhibit 38 shows the median priced home of Pasco and a few comparison cities. These
comparison cities were selected because they share similar characteristics to Pasco such as
population and proximity. The median priced home in Paso increased from roughly $163,000 in
2010 to $386,000 in 2022. Since 2010, Pasco's housing market increased at a similar rate in
relation to the other comparison cities.
City of Pasco Housing Action Plan 33
Exhibit 398. Median Zillow Home Value (ZHVI), Pasco and comparison cities, 2010-2022
Source: Zillow
$500,000 —Walla Walla Richland Kennewick
$450,000
r=�v $400,000
a
$350,000
a
> $300,000
a,
E
0
x $250,000
3
0
N $200,000
T
A
} $150,000
v
ao
$100,000
$50,000
$0 1,
do titi �ti ti3 tio. ti`' do ti� ti° ti� do ,yti .yti
Exhibit shows that since 2010, the median sale price of a home has increased in all comparison
cities, with the most significant increase in Pasco (137%), followed by Kennewick (130%) and
Walla Walla (108%).
Exhibit 39. Percent Change in Home Value (ZHVI), Pasco and comparison cities, 2010-2022
Source: Zillow. ECONorthwest Calculations
Jurisdiction
Pasco
2010
$162,962
2022
$385,890
Change (2010-2022)
Number Percent
$222,928 137%
Kennewick
$172,979
$397,351
$224,372
130%
Richland
$210,516
$433,308
$222,792
106%
Yakima
$155,888
$321,113
$165,225
106%
Walla Walla
$185,704
$386,272
$200,568
108%
City of Pasco Housing Action Plan 34
Between 2010 and 2021, the median rent increased by 44% and median household income
(unadjusted) increased by 58% (Exhibit 40). This denotes that household income has increased
faster than rents. This is particularly good because it suggests that Pasco residents have
benefitted from the regional economy with growing wages while still affording rental housing.
However, rental units consider all rental units including older constructions, as well as single
family rentals. This has skewed down the median rent of newer multi -family apartments. Rent
in the newly constructed multi -family apartments are higher than median rent and has
increased at a similar pace with median household income for renters. This makes renting
newer units still challenging. However, that is not the case when it comes to being able to
afford to purchase a home. Between 2010 and 2021, home values increased by 106 percent
putting homeownership far beyond what several households could afford.
Exhibit 400. Housing Costs and Income Trends, Pasco, 2020-2021
Source: 2010 and 2021 ACS 5-year estimates
2010-2021
2010
2021
NumberPercent
Rent
$688
$993
305
44%
Median Home Value
$162,992
$336,093
$173,130
106%
Median Household
$44,659
$70,486
$25,827
58%
Income
(unadjusted)
Although median incomes have risen across both renter and owner households, the median
income of a renter household remains substantially lower than both Pasco's median household
income of $70,486 in 2021 and the median homeowner income of $86,676 as shown in Exhibit
41. This indicates that renter households are most vulnerable to price changes in the rental
market and in greater need for affordable housing that they can afford.
City of Pasco Housing Action Plan 35
Exhibit 411. Housing Costs and Income Trends, Pasco, 2020-2021
Source: 2010 and 2021 ACS 5-year estimates
Median Ownerincome Median renterincome
$100,000
$90,000 586,676
$80,000
$70,000
$60,000
$50,000 $56,362
$40,000 $38,588
$30,000
$20,000 $25,841
$10,000
$0
2010 2021
Pasco
Exhibit shows a snapshot of Pasco's multifamily rental market. As of 2023 Q1, Pasco had
approximately 2,104 multifamily rental units across 28 buildings. In the first quarter of 2023
there was no multifamily projects in the pipeline or under construction. The average rent per
unit was 1,280 or $1.45 per square foot.
Exhibit 42. Pasco Multifamily Rental Market Snapshot
Source: CoStar
According to Costar, the multifamily rental market in Pasco was stable with an overall vacancy
rate of 9.0 percent as of 2023 Q1. The multifamily market was tight, with a vacancy rate of 4.3
percent during the first quarter of 2022. In the first quarter of 2023, approximately 108
multifamily units were delivered to the market, which pushed the overall vacancy rate up in
2023 Q1. Since 2011, Pasco's multifamily market has seen rent growth of 61 percent of $0.55
per square foot.
City of Pasco Housing Action Plan 36
Exhibit 423. Multifamily Rent per Square Foot and Vacancy Rate, Pasco, 2011-2023 Q3
Source: Costar
$1.60 $1.45 16%
n
$1.40 1
$1.20
a $1.00
a
$0.80 d%
$0.60 `
$0.40 `
$0.20
$0.00
14%
12%
1 9.0%
1 10% 2
/j 8% m
1 / >
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Pasco Rent per Sq. Ft. Pasco Vacancy Rate
0%
Exhibit 43 shows Pasco's rent per square -feet for apartment buildings compared to vacancy
rate. The sharp increase of vacancy rate in 2019-2020 is mainly attributed to the pandemic
when many people moved out of their apartments. The phenomenon started to normalizes
after the pandemic with a decrease in vacancy rate and then an increase in vacancy rate in the
recent years due to some recent constructions and availability of new rental units in the
market.
Exhibit 43 shows multifamily deliveries and net absorption in Pasco. Multifamily deliveries refer
to the new units built in the market, while net absorption refers to the net difference between
the number of units leased and the number of units vacated during a specific period of time.
Since 2011, there was a total of 534 units absorbed and 629 units delivered in Pasco's market.
All new units delivered seem to be absorbed (leased up) by the market pretty quickly indicating
a strong demand of multifamily.
City of Pasco Housing Action Plan 37
Exhibit 43. Multifamily Deliveries and Net Absorption, Pasco, 2011-2023 Q3
Source: CoStar
350
300
250
200
150
100
50
0 ® —
-50
-100
^' oti�' o�° o�� oti� o�° o`�° oti� o�� &
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re Deliveries (Units) Net Absorption (Units)
Exhibit 44 shows homeownership rates by race and ethnicity in Pasco. When compared to
Washington and the US, Pasco generally has above average homeownership rates for almost all
races and ethnicities—except for American Indian or Alaska Native. Overall, the
homeownership has increased in Pasco from 64 percent in 2010 up to 69 percent in 2021.
Housing has generally been affordable in Pasco, however, in recent years median home values
have increased substantially, reducing ability of many households to purchase a home.
City of Pasco Housing Action Plan 38
Exhibit 44. Homeownership Rates by Race/Ethnicity, 2021
Source: 2021 ACS 5-yea r esti mates
PasCC Aashingtor,
lOC
it
W RF Beck a Ahcan Asimi Amencan Pndan or Nadve Haw�: and
Amencan A'ssea=r-. _, Oth" - -
United States
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III
In most jurisdictions, a significant share of households rent, underscoring the importance of
quality affordable rental housing. Jurisdictions where few households rent compared to the
state may want to consider increasing the stock of rental housing in the jurisdiction. Exhibit 45
shows the share of households who rent. Since 2010, the share of Pasco households who rent
have declined over time from 36 percent of households renting in 2010 down to 31 percent in
2021. This decline in renter households could suggest that the cost of owning a home within
the city has become relatively more affordable than renting.
Exhibit 45. Renter Households, Pasco, 2010-2021
Source: 2010, 2019, and 2021 ACS 5-year estimates
45%
■ Renter -occupied
40•D/o
35%
3No
25%
20%
15%
10•D/0
5%
0%
2010 2019 2021
Pasco
City of Pasco Housing Action Plan 39
Cost Burden
State and federal standards specify that households spending more than 30% of gross annual
income on housing experience a housing cost burden. Housing cost burdens occur when
housing costs increase faster than household income. When a household spends more than
30% of its income on housing costs, households have less disposable income for other
necessities, including health care, food, and clothing. In the event of unexpected circumstances
such as the loss of employment or serious health problems, lower income households with a
burdensome housing cost are more likely to become homeless or be forced to double -up with
other households. Homeowners with a housing cost burden have the option of selling their
homes and become renters. Renters, on the other hand, are more vulnerable and subject to
constant changes in the housing market.
Exhibit 46 shows housing cost burden for renter households, Since 2010, the share of cost
burdened renters has continued to be over 50 percent. Although the share of cost burdening
has not changed much, the share of renters that are severely cost burdened has declined over
time, while those cost burdened has increased.
Exhibit 46. Renter Cost Burden, Pasco, 2010 and 2021
Source: 2010 and 2021 ACS 5-year estimates
60%
50%
20%
10%
0%
■ Severely Cost Burden Cost Burden
2010 2021
Renter
City of Pasco Housing Action Plan 40
Housing Attainability
Exhibit 48 shows the average rent and median home sale price in Pasco in Q1 of 2023. With an
average rent of $1,272, a household would have to make $50,880 or more to afford the
average rent in Pasco. In comparison, with a median home sale price of $386,000, a household
would have to make $96,500 or more to comfortably afford the median home price in Pasco.
Exhibit 47. Average Rent and Median Sale Price in Pasco and related affordability, 2023
Source: Costar, Redfin, ECONorthwest Calculations
Exhibit illustrates projected housing affordability based on household income. The median
family income for Pasco— in 2022 was $89,600 (100% of area median income); this figure is
based on HUD's calculation for Franklin County's median family income.
The estimates presented in Exhibit 1 are based on income and affordability ratios that typical
lending banks use. They do not consider other household financial characteristics that can
affect ability to pay for housing — other debt, including auto loans, credit cards, etc. as well as
accumulated assets. A key challenge many lower incomes households face is competition for
affordable housing from higher income households. It is rational for higher income households
to choose less expensive housing if it is available and meets household needs'. Given entry
costs (down payment for owner units, advance rent, and deposits for rental units) and required
credit reports, lower income households have clear disadvantages in competing for lower cost
housing.
' https://www.strongtowns.org/journal/2021/4/27/are-new-homes-mostly-luxury-does-it-matter-if-they-are
City of Pasco Housing Action Plan 41
Based on the information above about the average rent and median home prices in Pasco, a
household earning 100 percent of the Area Median Income (AMI) in 2023 could not afford to
purchase the median home priced home in Pasco. However, this household could afford the
average rent in Pasco. This highlights four key takeaways playing out in Pasco's dynamic
housing market:
Pasco has an affordability gap between home prices and rental costs. While the
household's income allows them to cover the average rent, it falls short when it comes
to purchasing a home at the median price. This suggest that the costs of purchasing a
home is relatively higher than renting in Pasco's current housing market.
Pasco has an income disparity. While a household earning 100 percent of the area
median income can afford the average rent, they cannot afford to purchase a home at
the median price. This suggest that higher income households likely have a better
change of homeownership, while lower and median -income households might be
limited to renting.
Potential barriers to homeownership exist. The inability of a moderate -income
household to afford the median priced home raises questions about the potential
barriers to homeownership in Pasco. Factors such as high down payment
requirements, stricter mortgage lending criteria, and rising home prices relative to
income growth can make it difficult for many households to enter the homeownership
market.
Increasing the supply of both renter and ownership product units is important for
Pasco in the long-term. If the demand for housing, particularly for homeownership,
exceeds the available supply, it can drive up home prices and make it challenging for
households with moderate incomes to purchase a home. Similarly, if the demand for
rental housing exceeds the available supply, it can drive up rent prices and price out
households that rent in Pasco.
Exhibit49. Housing Affordability in Pasco byAMI, 2023
Source: HUD, ECONorthwest Calculations
$26,300 1 $52,500
< 30% of MFI 1 60% of MFI
$660 $1,310
Per Month Per Month
OR OR
$158,000-
$184,000
Home Sale Price
$70,000
80% of MFI
$1, 750
Per Month
OR
$245,000-
$280,000
Home Sale Price
$87,500
100% of MFI
$2,190
Per Month
OR
$306,000-
$350,000
Home Sale Price
$105,000
120% of MFI
$2,630
Per Month
OR
$368,000-
$420,000
Home Sale Price
City of Pasco Housing Action Plan 42
Worker affordability
Exhibit 50 shows the average wages by industry in Franklin County and the maximum rent and
median home price that workers in each industry could afford.
More than half of the industries in Franklin County have high enough wages that can afford the
average rent of $1,272 in Pasco. However, only one industry, the information industry, has a
high enough wage to afford the median home price of $386,000 in Pasco. Pasco's employment
is concentrated in educational services and retail trade. Based on the average wages earned in
Franklin County 2021, workers in these industries cannot afford the average rent or the median
priced home in Pasco.
A select number of industries can support to afford the median home priced home if they 1.5
times per household. These industries include construction, wholesale trade, information,
finance and insurance, professional and technical services, and government.
City of Pasco Housing Action Plan 43
Exhibit48. Housing Affordability in Franklin County by Industry and Wages, 2023
Sniirrp•(')FM FCONnrth1A1pctfalrulatinnc
Ag., forestry, fishing & hunting
$36,126
$903
No
$135,573
No
No
Mining
$60,000
$1,500
$225,169
No
Yes
Construction
$57,717
$1,443
$216,601
No
Manufacturing
$53,653
$1,341
$201,351
No
No
Wholesale trade
$66,555
$1,664
$249,767
No
Retail trade
$42,457
$1,061
No
$159,331
No
No
Transportation & warehousing
$53,656
$1,341
$201,359
No
No
Information
$109,235
$2,731
$409,939
Finance and Insurance
$71,792
$1,795
$269,423
No
,
Real Estate & Rental & Leasing
$51,268
$1,282
$192,400
No
No
Professional & Technical Services
$59,876
$1,497
$224,703
No
Administrative & Waste Services
$43,787
$1,095
No
$164,326
No
No
Educational Services
$42,118
$1,053
No
$158,062
No
No
Health Care & Social Assistance
$45,692
$1,142
No
$171,472
No
No
Art, Entertainment, & Recreational
$37,732
$943
No
$141,601
No
No
Accommodation & Food Services
$23,462
$587
No
$88,048
No
No
Government
$64,056
$1,601
M
$240,390
No
44
Housing Unit Costs
This section summarizes housing cost, which is the construction costs associated with building
housing in Pasco. Understanding housing costs provides critical information for what is being
built in the local housing market and what household could afford. If the type of housing built
far exceeds what households could afford, then Pasco could look into its zoning code, housing
policies, and other policy interventions to shape the private market to build housing that could
be built more affordable.
Utilizing building permit data from the City of Pasco, construction costs were derived from
different housing types recently built in Pasco. Using information from these recently built
housing types ensures that the construction costs derived are the most up to date given trends
in the national economy where development has slowed because of the rising interest rates
nationwide.
Exhibits 51 and 52 show the costs by housing prototype. Generally, construction costs range
between $175 to $185 per square feet to build attached townhomes and single-family homes.
There are economies of scale building larger buildings that contain multiple units such as
sixplexes and apartments. This is reflected in the cost per square feet and the total
development costs per unit.
Exhibit 49. Housing Costs by Housing Prototype, 2023
Source: ECONorthwest Calculations, City of Pasco Permits
Note: t otat aevetopment
costs
assumes
a lu io
aevetoper
profit on the overact
construction
cost
Housing
Unit
SF
Total
Cost
TotalDev.
Land
Total Dev.
Type
s
per
SF
per
Const.
Cost
Unit
SF
Costs
Unit
Single family
1
2000
2,000
$185
$369,800
$75,000
$10,174
$491,972
$491,972
Home+ADU
3
1500
4,500
$185
$832,050
$75,000
$5,615
$995,889
$331,963
Townhomes
4
1500
6,000
$175
$1,048,838
$75,000
$28,782
$1,257,521
$314,380
Sixplex
6
1250
7,500
$175
$1,311,048
$75,006
$38,554
$1,555,724
$259,287
Apartments
10
1000
10,00
$150
$1,500 000
$75,000
0
$59,498
$1,784,513
$1781451
With scales of economies there is also an efficient use of land where in certain residential zones
additional housing units could be built with the same amount of land zoned for single-family
homes. Missing middle housing can support greater housing options, affordability,
neighborhood revitalization, efficient land use, social cohesion, and environmental
sustainability. By providing diverse and affordable housing choices, promoting community
interaction, and maximizing land use, missing middle housing contributes to inclusive and
vibrant neighborhoods, supports economic activity, and addresses housing affordability
challenges while reducing environmental impacts.
Exhibit 50. Housing Unit Costs by Housing Prototype, 2023
Land Acquisition: $75,000
Construction Cost: $175-185/ sf and $150/ sf for apartments
Profit: 10% of total construction cost
Cost per Unit
$259K
Cost per Unit
$314K
Cost per Unit --
$331 K
Cost per Unit
$491 K
Cost per Unit
$178K
_----- — Sixplex
6 homes
Townhomes 1,650 sq. ft.
Single Family+ 4 homes
ADU 2,500 sq. ft.
Single Family 3 homes
1 home 7,500 sq. ft.
7,800 sq. ft.
5 story Apartment
10 homes
1,000 sq. ft.
Assets, opportunities, and
Challenges
This section will highlight key locational factors that influence Pasco's desirability for a range of
land uses that play a crucial role in the City's economy.
• Transportation Access & Network:
Pasco is located at the intersection of
major highways, railways, and waterways,
making it a transportation hub in the
region. This proximity to transportation
networks is an important factor that
makes Pasco a desirable location for
industrial and commercial land uses.
Natural Resources: Pasco is located in an
agricultural region, and the city benefits
from access to natural resources, such as
water and fertile soil. This makes it an
ideal location for agricultural land uses,
such as farming and food processing.
Workforce: Pasco has a diverse and well-
educated workforce, employment is
concentrated in the manufacturing,
healthcare, and retail sectors. This
availability of skilled labor makes it an
attractive location for companies that
require a highly skilled workforce.
Proximity to other major cities: Pasco,
Washington is located within close
proximity to other major cities, such as
Seattle, Portland, and Spokane. This
makes it an ideal location for companies
that need to access these markets while
benefiting from Pasco's lower cost of
living and business -friendly environment.
Housing Affordability: Pasco has
generally had a low cost of living
compared to other cities in the region,
however demand for housing has driven
up prices in recent years. Increasing
affordability challenges could pose as a
barrier for attracting a strong workforce
to the area.
Limited cultural and entertainment:
While Pasco has several quality of life
amenities, such as parks and recreational
areas, it does not have the same level of
cultural and entertainment options as
larger cities. This could make it difficult
for companies to attract and retain
younger workers who are looking for a
vibrant and diverse cultural scene.
Higher Education: while Pasco has
several community colleges and
vocational schools, it does not have a
major university or research institution.
This could limit the ability of companies
to access a highly educated workforce
and could make it difficult to attract
companies that require access to cutting -
edge research and development.
Housing Need Projections
Population Projections
Pasco's Comprehensive Plan update assumes that population will continue to grow rapidly in
the future. Based on OFM's 2017 GMA Projections (Medium Series), Franklin County is
estimated to grow to 179,572 people by 20451. Assuming that Pasco's population will continue
to make up about 80 percent of the County's population, Pasco is estimated to grow to 143,657
people by 2045. Between 2020 and 2045 Pasco will need to accommodate 66,549 new
residents (Exhibit 53). The following section discusses how many housing units Pasco needs to
accommodate this growth by income level.
Exhibit 51. Pasco Population Projections, 2020-2045
Source: OFM, ECONorthwest Calculations
Housing Need by Income Level
Pasco's housing need by income level is based on HUD CHAS household income distribution.
Assuming that Pasco's current income distribution will remain the same by 2045, the future
housing need is distributed according to Pasco existing household income distribution. Under
this assumption, 11,542 housing units or 50% of Pasco's total need through 2045 are needed
for households who make 80% or less of the area median income. About 11,776 units or 50% of
the total need are needed for households with incomes of 80% of AMI or higher.
Pasco's total housing need by 2045 totals 23,318 housing units. Of these units, 21,585 is needed
to accommodate population growth and 1,733 units that have been underproduced by the
housing market relative to National housing trends. Exhibit 54 indicates housing needs by
different income groups. According to this table, the highest housing underproduction, or the
higher housing need is shown among groups with 0% to 50% AMI.
3 ECONorthwest calculation based on OFM 2017 GMA Projections — Medium Series utilizing the 2.52 AAGR
between 2017 and 2038 for Franklin County.
Exhibit 52. Housing Needed by Income Level in Pasco by 2045
Source: OFM, CHAS 2015-2019, ECONorthwest Calculations
Income Categorye-
0-30% AMI
• •• •
800
•
2,484
Total Need
3,284
Share
14%
30-50%AMI
590
2,905
3,495
15%
50-80%AM1
295
4,468
4,763
20%
80-100%AMI
11
2,123
2,134
9%
100-120% AMI
37
2,351
2,388
10%
120-140%AM1
0
1,474
1,474
6%
140%+AM1
0
5,780
51780
25%
Total
1,733
21,585
23,318
100%
Summary of Housing Needs in Pasco
Who Lives in Pasco Today?
Pasco has a relatively young population. Pasco's population generally skews
younger with a median age of 29.9. In comparison, Franklin County has a median age
of 30.5 and Washington 37.9. Children (ages 0 to 17 years old) represent 33 percent of
the population, while young adults ages 18 to 39 make up about 31 percent.
Senior adults (60 years and older) saw the fastest growth in this the past decade.
Seniors age 60 and older saw almost a 90 percent increase between 2010 and 2021.
Although Pasco does not have a large senior population, this population cohort has
rapidly grown over the past decade.
The Hispanic community continues to be a growing population group in Pasco. In
2021, over half (56 percent) of Pasco's population identified as Hispanic. Growth
trends indicate that Pasco will continue to grow rapidly, and Hispanics will continue to
be a majority ethnic group.
Socio-economic gaps exist between Non -Hispanic White residents and Black and
Hispanic residents. Between 2010 and 2019, distribution of income has been higher
among White non -Hispanic compared to Hispanic, and Black or African American.
Median income of Hispanic households was 76% of the Non -Hispanic White
households Countywide
Median renter incomes have grown but remain very low. Median renter incomes
have grown in the past decade, however in 2021 median renter incomes were $38,588
compared to $86,676 for the median owner income.
What will Pasco's Future Population Look like?
Pasco's population is projected to grow by 86 percent by 2045. From 2020 to 2045,
Pasco's population will increase from an estimated population of 77,108 in 2020 to
143,657 in 2045. This estimate assumes that Pasco will continue to make about 80
percent of the total County population in 2045 when Franklin's population is projected
to be 179,657 based on OFM 2017 GMA County projections.
In the next 20 years, Pasco's children and young adults will age and will need
housing that meet the needs of older households.
The share of Pasco's senior residents is increasing and will need housing that meet
the needs of older households.
Pasco's future households will majority be family sized with 3 or more -person
household, however, there will be a need for 1-person housing units to accommodate
a growing share of these households.
What Are the Current Housing Affordability Conditions in
Pasco?
Pasco has an affordability gap between home prices and rental costs. While the
household's income allows them to cover the average rent, it falls short when it comes
to purchasing a home at the median price. This suggest that the costs of purchasing a
home is relatively higher than renting in Pasco's current housing market.
Pasco has an income disparity. While a household earning 100 percent of the area
median income can afford the average rent, they cannot afford to purchase a home at
the median price. This suggest that higher income households likely have a better
change of homeownership, while lower and median -income households might be
limited to renting.
Potential barriers to homeownership exist. The inability of a moderate -income
household to afford the median priced home raises questions about the potential
barriers to homeownership in Pasco. Factors such as high down payment
requirements, stricter mortgage lending criteria, and rising home prices relative to
income growth can make it difficult for many households to enter the homeownership
market.
Increasing the supply of both renter and ownership product units is important for
Pasco in the long-term. if the demand for housing, particularly for homeownership,
exceeds the available supply, it can drive up home prices and make it challenging for
households with moderate incomes to purchase a home. Similarly, if the demand for
rental housing exceeds the available supply, it can drive up rent prices and price out
households that rent in Pasco.
Cost burden among renters in Pasco have remained high since 2010. Although cost
burden has remained at 52 percent since 2010, the share of renters that are severely
cost burdened has declined overtime from 29 percent in 2010 down to 23 percent in
2021. This indicates that fewer renters are spending over 50 percent of their household
income in housing costs.
Low housing vacancy rates and high demand for housing has strained Pasco's
housing market with large increases in housing prices. Since 2010, the median home
value in Pasco has increased 137 percent or $222,928, from $162,962 in 2010 up to
$385,900 in 2022.
Household incomes have not kept pace with the rising costs for homeownership.
Between 2010 and 2021, the median household income has increased 58 percent,
while the median home value in Pasco has increased 106 percent. This significant
increase in homeownership costs have left many unable to purchase a home. As
households struggle to purchase a home, demand for rental units will increase and
potentially see large rent increases to accommodate the growing demand. This also
emphasizes the importance of constructing new rental units to support the growing
demand specially for lower income households.
Housing affordability is arising challenge in Pasco and region. In 2023, a Pasco
household would need an annual income of at least $96,500 to be able to afford the
median home sale price of $386,000.
Key Future Housing Trends in Pasco
More middle-aged Millennials ■ Homeownership of Millennials will increase
■ Demand for ownership product type will increase near
amenities for families
Increasing Number of People ■ Smaller housing units as senior adults downsize
age 60+ ■ Housing near services and healthcare facilities
■ Aging in place and multigenerational households
■ Affordable rental and ownership product types
Increasing share of Hispanic
Population
■ Housing units with several bedrooms to accommodate
large household size and multigenerational living
■ Affordable rental and ownership product types
Increasing Number of 1 and 2- Smaller housing units
person household MAffordable rental and ownership product type
Housing Strategies and Actions
The Housing Action Plan identifies the following strategies and actions based on key findings
from the market analysis, housing needs assessment, and input from the community.
Strategy 1. Remove regulatory barriers and encourage the development of
variety of housing types.
Action 1.1. Identify necessary changes and update the Municipal Code to increase density,
such as increasing building height, reducing setbacks, allowing mixed -use etc.
Action 1.2. Reduce minimum parking requirements for missing middle housing, multifamily
dwelling units, and mixed -use developments.
Action 1.3. Review and amend the density increase design standards criteria (e.g. density
bonus) to encourage a greater use of this incentive.
Action 1.4. Explore the evaluation of tailored development impact fees, and waivers or
flexibility of the system development charges.
Action 1.5. Review and amend deferral of impact fees.
The City of Pasco has already made significant changes to its zoning code. This includes
allowing attached and detached accessory dwelling units (ADUs), and allowing diverse home
types and missing middle housing on a majority of residentially zoned lots. The City has
developed a set of updated standards for adoption that will allow for more housing types and
flexibility, such as townhomes, duplexes, courtyard apartments, and other homes, that will
increase options for residents. The proposed changes include minimum lot size, building
height, setbacks, and design standards. The City should utilize objective and practical design
standards for flexibility and affordability.
Strategy 2. Increase homeownershin onnortunitie-
Action 2.1. Develop pre -approved ADU and middle housing plan sets.
Having a pre -approved set of plans will expedite the permit process and reduce the overall cost
for developers. The City can create some prototype options for developers to choose from for
an expedited review.
Action 2.2. Explore implementing a voluntary inclusionary housing program.
Inclusionary housing encourages creating housing units that are more affordable than the
market rate housing. This can be added as a part of new development regulations. The City can
leverage this by allowing incentives such as increased height, density, reduction in fees etc. in
exchange of a certain percentage of the units (rental or owner) to be available below the
market rate.
Action 2.3. Explore working with community land trust and other affordable housing
providers.
Action 2.4. Increase awareness and access to various housing assistance programs and
amenities such as, downtown assistance program.
Community land trust can be a vehicle for Pasco to increase home ownership. Different non-
profit and housing groups should work together towards establishing a community land trust.
Under this, land ownership will be maintained by the land trust but homeowners will be able to
build equity and move to the next levels of housing. Affordable homes shall not be
concentrated in one area. They should be located in areas with better public amenities such as
access to transit, parks, retails etc. Information about current housing programs should be
shared through inclusive marketing and promotions.
Strategy i. Expand the supply and access of affordable housing.
Action 3.1. Explore establishing a Multi -Family Tax Exemption Program (MFTE) program.
Action 3.2. Explore land banking for affordable housing development.
Action 3.3. Explore a local, revolving funding source to support affordable housing
development and programs.
Action 3.4. Invest in infrastructure in areas with higher and mixed densities.
Pasco should consider establishing 8-year, 12-year and 20-year MFTE programs throughout the
City to stimulate the construction of new, rehabilitated, or converted multifamily housing (4+
units), including affordable housing.
The City of Pasco, neighboring cities, federal jurisdictions (e.g. DSHS), non-profit housing
provides (e.g. Habitat of Humanities), community land trusts etc. should collaborate to access
additional funding opportunities for affordable housing. Existing agency funds also need to be
allocated for affordable housing.
Strategy 4. Build housing Tor Pasco's special population groups.
Action 4.1. Engage alternative housing providers to build affordable housing for special
population groups.
Action 4.2. Adopt code amendments that accommodate supportive and transitional housing,
and emergency shelters.
Action 4.3. Maintain compliance with and further strategies of adopted state legislation to
addressing housing affordability.
Alternative housing developer should collaborate with market rate housing developers to cave
in housing opportunities for special population groups. Housing developments should address
both physical and mental disabilities in order to cater to a diverse group.
Strategy 5. Mitigate displacement of vulnerable residents.
Action 5.1. Monitor regulated affordable housing properties and develop a housing
preservation ordinance.
Action 5.2. Expand tenant protections and centralize tenant resources.
Action 5.3. Provide homeowner and landlord assistance and resources.
All agencies and coalitions should work together to develop a central database of resources for
affordable housing. Tenant protection and a centralize tenant resources will address illegal
evictions. Homeowners should be given adequate resources and support to maintain their
homes. Old neighborhoods should be monitored for utilities, public safety, and various
community opportunities.
Additional Strategies
Additional strategies are developed to address displacements. Many of these would apply to
the overall conditions in addition to addressing displacement issues. Detailed discussion is
available in Appendix C.
Strategy 6. Build internal and external capacity.
Action 6.1. Build a housing coalition through robust community engagement.
Action 6.2. Build capacity for data gathering and analysis.
Action 6.3. Improve Pasco's ability to leverage local, state, and federal funding opportunities
to preserve and create affordable housing.
Strategy 7. Build data and research to guide future policy actions.
Action 7.1. Define and track residential displacement.
Action 7.2. Research policies or programs with racially disparate impacts.
Action 7.3. Estimate affordable housing funding and financing needs.
Strategy 8. Support residents now through readily implementable policies and
programs.
Action 8.1. Support residents who may be at risk of displacement now.
Action 8.2. Leveraging existing affordable housing funding and financing programs now.
Strategy 9: Guide future growth by building a zoning structure prepared to
accommodate new Pasconians.
Action 9.1. Pass residential design standards reform.
Action 9.2. Modernize impact fees and utilize them to guide future development patterns.
Action 9.3. Construct a system of straightforward incentives and exactions to govern large
development applications.
Action 9.4. Increase zoning density in well -suited neighborhoods.
References
EWU, 2022: Overview of trends in the continuum of housing for homeless & low-income
residents of Benton & Franklin Counties; presented to the Community Health Improvement
Plan advisory committee on May 18, 2022
Habitat for Humanity, 2023; Available at: https://www.habitatbuilds.com/who-we-are/,
accessed on June 14, 2023
Appendices
Appendix A: Public Participation Report
Appendix B: Existing Conditions Memo, NYU Wagner Capstone Team
Appendix C: HOME TO ALL - Strategies for Preventing Displacement, Addressing Racially
Disparate Impacts, and Funding Affordable Housing in Pasco, Washington. NYU Wagner
Capstone Team