Lea County Lea County Housing Needs Housing Needs

StudyStudy

September 20, 2005September 20, 2005

Study Performed by :Study Performed by :

Gruen, Gruen, and Gruen, Gruen, and AssociatesAssociates

For Lea County Housing, Inc.For Lea County Housing, Inc.

Study Funding Sponsors:Study Funding Sponsors:

Lea County, New MexicoLea County, New Mexico

City of Hobbs, New MexicoCity of Hobbs, New Mexico

City of Eunice, New MexicoCity of Eunice, New Mexico

Reasons for Housing StudyReasons for Housing Study Pending Approval and Construction of the $ 1.4 billion Pending Approval and Construction of the $ 1.4 billion

NEF Project in Eunice that will bring 500 construction NEF Project in Eunice that will bring 500 construction jobs and 200 permanent jobs to this area.jobs and 200 permanent jobs to this area.

Expanded Tourist and support businesses being Expanded Tourist and support businesses being developed as a result of the Casino/Racetrack developed as a result of the Casino/Racetrack Complex.Complex.

Expanded Oil business and support services activity Expanded Oil business and support services activity resulting from favorable oil prices.resulting from favorable oil prices.

Limited Housing Stock Availability.Limited Housing Stock Availability.

Housing Study Finding:Housing Study Finding:

The Total Projected Demand for New The Total Projected Demand for New and Replacement Housing in Lea County and Replacement Housing in Lea County between 2005 and 2020 is 5,200 units.between 2005 and 2020 is 5,200 units.

This housing demand is equivalent to This housing demand is equivalent to 350 housing units per year.350 housing units per year.

Presently, approximately 50 homes per Presently, approximately 50 homes per year are being constructed.year are being constructed.

Housing Need BreakdownHousing Need Breakdown2005 - 20202005 - 2020

City of Hobbs – 2,652 units City of Hobbs – 2,652 units Lea County (outside cities) – 1,144 units Lea County (outside cities) – 1,144 units City of Lovington – 884 unitsCity of Lovington – 884 units City of Eunice – 260 unitsCity of Eunice – 260 units City of Jal – 208 unitsCity of Jal – 208 units City of Tatum – 52 unitsCity of Tatum – 52 units

Job Growth Projections:Job Growth Projections:

Analyzed historical data and new business Analyzed historical data and new business additions to project a 1% job growth rate per additions to project a 1% job growth rate per year. Total Employment is Projected below:year. Total Employment is Projected below:

20052005 20102010 20202020

23,02423,024 24,19824,198 26,73026,730

To verify that this study is based on conservative assumptions, the total employment in Lea County from the NM DOL as of March,

2005 was 24,611, which is greater than the 2010 projection.

Need for Replacement of Need for Replacement of Aging HousingAging Housing

Percentage of Homes built prior to 1970Percentage of Homes built prior to 1970

Lea County – 55 %Lea County – 55 %

HobbsHobbs LovingtonLovington EuniceEunice JalJal TatumTatum

58 %58 % 64 %64 % 58 %58 % 75 %75 % 69 %69 %

Mobile Homes as Housing UnitsMobile Homes as Housing Units

Percentage of Mobile Homes Percentage of Mobile Homes

in each Community in each Community

HobbsHobbs LovingtonLovington EuniceEunice JalJal TatumTatum

10.9 %10.9 % 13.8 %13.8 % 18.5 %18.5 % 7.4 %7.4 % 22.3 %22.3 %

Percentage of Mobile Homes in Lea County – 17.1 %

Projected Demand for “For Projected Demand for “For Sale” Housing Units by Price Sale” Housing Units by Price

RangeRangePrice RangePrice Range 2005 - 20102005 - 2010 2010 - 20202010 - 2020

Less than $100,000Less than $100,000 456456 1,1281,128

$100,000 to $150,000$100,000 to $150,000 172172 427427

$150,000 and above$150,000 and above 659659 1,5681,568

TotalTotal 1,2871,287 3,1233,123

Special Needs Housing:Special Needs Housing:

Disabled Population in Lea CountyDisabled Population in Lea CountyLea CountyLea County EuniceEunice HobbsHobbs JalJal LovingtonLovington TatumTatum

Population Population ** 49,80149,801 2,3862,386 23,35023,350 1,9031,903 8,4708,470 666666

Number of Number of Disabled PeopleDisabled People

7,0047,004 257257 3,6523,652 187187 1,2611,261 125125

Percent of Percent of Disabled PeopleDisabled People

14.1 %14.1 % 10.8 %10.8 % 15.6 %15.6 % 9.8 %9.8 % 14.9 %14.9 % 18.8 %18.8 %

* Refers to Population over the age of 5

• The percentage of Disabled People in Lea County is 14.1 %

• The percentage of Disabled People in the U.S. is 14.9 %

Special Needs Housing:Special Needs Housing:Senior Households in Lea CountySenior Households in Lea County

20002000 20102010 20202020Lea County Lea County HouseholdsHouseholds

19,69919,699 21,60221,602 24,35924,359

Senior HouseholdsSenior Households 4,4544,454 4,9624,962 6,2676,267

New Senior New Senior HouseholdsHouseholds

-- 508508 1,3051,305

Percentage of Percentage of Senior HouseholdsSenior Households

23 %23 % 23 %23 % 26 %26 %

Total and Annual Housing Total and Annual Housing Needs in Lea County: 2005-Needs in Lea County: 2005-

202020202005 - 20102005 - 2010 2010 - 20202010 - 2020

Housing Units needed Housing Units needed for new householdsfor new households

1,0491,049 2,7572,757

Housing Units needed Housing Units needed for Replacementfor Replacement

470470 940940

Total Number of Total Number of Housing Units Needed Housing Units Needed

1,5191,519 3,6973,697

Number of Housing Number of Housing Units needed Per YearUnits needed Per Year

304304 370370

Projected Total and Special Projected Total and Special Housing Needs in Lea County: Housing Needs in Lea County:

2005-20202005-2020

2005 - 20102005 - 2010 2010 - 20202010 - 2020Total Number of Total Number of Housing Units NeededHousing Units Needed

1,5191,519 3,6973,697

Number of Housing Number of Housing Units constructed for Units constructed for Disabled ResidentsDisabled Residents

213213 518518

Number of Housing Number of Housing Units constructed for Units constructed for use by Seniorsuse by Seniors

508508 1,3051,305

QUESTIONS ?QUESTIONS ?

Thank you for your Thank you for your sponsorship of this Studysponsorship of this Study

The Housing Study has been sent as a PDF file to the The Housing Study has been sent as a PDF file to the County Manager’s Office.County Manager’s Office.

The Housing Study has also been reproduced in the The Housing Study has also been reproduced in the County Commission Packets for this Meeting.County Commission Packets for this Meeting.

Thank you again for your support. With your help, LCHI Thank you again for your support. With your help, LCHI is working to meet the Housing Needs of the entire Lea is working to meet the Housing Needs of the entire Lea

County Region.County Region.