la porte city, iowa housing needs assessment 2018 la porte ...08a25230-9849... · in addition,...

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La Porte City, Iowa Housing Needs Assessment 2018

LA PORTE CITY

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Prepared by Iowa Northland Regional Council of Governments

Adopted by Resolution #18-36 on June 11th, 2018

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Table of Contents Executive Summary ....................................................................................................................................... 2

Introduction and Purpose ............................................................................................................................. 4

History and Background ................................................................................................................................ 4

Quality of Life and Community Character .................................................................................................... 4

Natural Resources and Environmental Hazards ........................................................................................... 5

Public Infrastructure and Utilities ................................................................................................................. 7

Community Services ...................................................................................................................................... 8

Demographic Overview ................................................................................................................................ 9

Economic Overview .................................................................................................................................... 13

Housing in La Porte City .............................................................................................................................. 15

American Community Survey Estimates ................................................................................................. 15

Local Data ................................................................................................................................................ 20

Home Sale Market .............................................................................................................................. 20

Rental Market ..................................................................................................................................... 22

Housing Conditions ................................................................................................................................. 24

Affordability of Homes for Sale ................................................................................................................... 26

Future Housing Supply and Demand .......................................................................................................... 26

Business and Job Growth in La Porte City ................................................................................................... 30

Housing Goals and Objectives ..................................................................................................................... 30

Summary and Conclusions .......................................................................................................................... 36

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Executive Summary

This Housing Needs Assessment provides an overview of La Porte City’s housing stock, placed in the

context of the City’s history, community services and amenities, demographics, and economic

characteristics. La Porte City’s existing and projected housing supply are presented, as are its current and

projected housing needs. Also, recommendations are offered regarding the amount and variety of

housing units in the City. The Housing Needs Assessment includes the following findings:

• Since its official incorporation in 1871, La Porte City’s population has been steadily increasing,

with only a few decades experiencing a decline.

• La Porte City is located within the Wolf Creek drainage basin. In the undeveloped areas of La Porte

City, trees, shrubs, weeds, and grass are prevalent, while in other areas that are undeveloped

there are row crops that are planted in the spring and harvested in the fall.

• The median age of La Porte City’s residents increased between 2000 and 2010, rising from 37.3

years of age to 39.6 according to the Census data. Notably, the population between the ages of

20 and 39 years of age dropped by 62 persons. With the number of residents in child-bearing age

cohorts continuing to decrease, school population has also decreased.

• Housing opportunities in La Porte City are limited for renters and low- and moderate-income

households in La Porte City, including many people who work in La Porte City but live elsewhere.

The rental vacancy rate was estimated to be just over 2 percent by the 2015 American Community

Survey, and the average annual laborshed income of $41,808 is slightly below the level needed to

buy a home at the median sale price of $144,698. Homes in the City spend less time on the market

than other communities in Black Hawk County. “Starter homes” tend to spend even less time on

the market than higher-priced homes.

• Compared to similar rural communities in the county, La Porte City has a relatively tight

homebuyer market. Home prices are lower than the county’s average, while volume of sales are

average and the time that homes spend on the market are relatively low.

• Based on current building and demolition rates, along with other factors, La Porte City is expected

to add 64 new housing units by 2030. By contrast, the City is expected to have a demand for 77

to 113 new units by 2030, resulting in a deficit of between 13 and 30 housing units. La Porte City

currently issues an average of 4.25 building permits annually but may need to issue a total of 5 to

8 building permits annually by 2030 to meet future housing demand.

• No business developments are predicted in La Porte City in the near future, but some small

businesses are considering La Porte City. If the community develops a wide range of housing

options, it may have a better chance of enticing some of these new businesses to grown in the

City.

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• Overall, La Porte City has three broad categories of housing needs:

o Maintaining and improving the quality, value, and appearance of the City’s housing

stock – improving the current housing stock can make it much more inviting to potential

buyers, as well as increase the values for neighboring houses.

o Promoting housing development in a range of prices and housing options, making La

Porte City affordable and more attractive for different levels of potential homeowners

–adding valuable housing stock to the current housing market would be appealing to

more potential homebuyers by offering a variety of price ranges, lots size and housing

types.

o Promoting residential and business development in a coordinated manner –

approaching developed areas of the City would create a concentration of development

versus being spread throughout the community.

• The Housing Needs Assessment concludes with a list of proposed goals, objectives, and

implementation steps to maintain and expand La Porte City’s housing stock. These

recommendations provide options for the City to promote housing options for a variety of income

levels and household types in a manner that preserves the City’s fiscal and environmental

resources and complements new commercial and industrial development.

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Introduction and Purpose La Porte City is a rural community, surrounded by farmland. La Porte City has experienced moderate

population growth since recovering from the Farm Crisis of the 1980s, although its population is aging.

Main Street hosts the central business district and showcases a unique downtown commercial area for

visitors and residents to spend time. The downtown area has a number of places on the National Register

of Historic Places. Of these, the City Station (currently City Hall) is one of the most iconic in the City. The

City has maintained a distinct character and presence since its founding and is in a position to benefit from

Black Hawk County’s steady growth.

History and Background The first inhabitants in the area now known as La Porte City were believed to be Native Americans who

did not settle, but rather migrated through the area. The first outside settlers to frequent the area are

believed to have arrived around 1844, mostly comprised of hunters and trappers.

The first known settler to actually live within the area now known as La Porte City was James Hamer, who

settled in the area in 1853. A man by the name of John A. Dees platted a town site on the north side of

the creek under the name of Ottawa, and soon afterwards tried to sell the site to a Dr. Jesse Wasson of

Vinton, Iowa. Dr. Wasson came to the site and decided that the south side of the creek would provide a

better location for a town. Dr. Wasson and his partner, Joel W. Catlin, both moved to the area in 1855

and shortly thereafter built a storeroom. Dr. Wasson suggested the name La Porte for the new town after

La Porte, Indiana, where he had previously lived. Wesley Whipple made the first official plat of the town

on June 5th, 1855. The plat was filed for record on July 16th, 1855.

It was not until October 7th, 1870, that George Hayzlett, Jasper Parks, and thirty-nine other people

presented a petition to the Circuit Court asking for the official incorporation of La Porte City. An election

was held on January 31st, 1871, which resulted in favor of incorporation. On February 11th, 1871, the town

of La Porte City, Iowa, was duly incorporated. The first elections were held shortly thereafter with R.J.

McQuilkin being chosen as the first Mayor of the community.

Since that date, the City of La Porte City has continued to grow and evolve into the community that it is

today. The history of hazards has been significant, most notably the floodplain. New development trends

are toward the north and west of the community, with the newest residential subdivisions occurring in

those areas. Future development trends play a key role in the development of this plan because several

of the action steps identified specifically address how future mitigation efforts will be impacted by areas

of new growth.

Quality of Life and Community Character La Porte City residents enjoy the feeling of a close-knit community. Community groups work together to

benefit each other and generally are supportive of one another. A few other characteristics of La Porte

City’s community character include the availability and variety of local services, along with maintaining

prosperous locally-owned businesses.

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Members of the community feel the City is “clean and orderly” and that there are regulations in place

supporting planned growth. Design features that received praise included brick streets and the walkability

of the community.

Natural Resources and Environmental Hazards The City is located near the Cedar River, which flows generally from northwest to southeast. The

topography of the community is generally flat, with larger degrees of slope near Wolf Creek, which flows

through town before merging with the Cedar River approximately 1.25 miles northeast of town.

La Porte City has some agricultural lands located southwest, south, and north of the City. The primary row

crops are corn and soybeans.

Soils in the La Porte City area are typical of those found in Iowa. These soils are not known to have any

unusual characteristics that would have a substantial impact on flooding in the community.

According to the 2015 Updated Multi-Jurisdictional Hazard Mitigation Plan for Black Hawk County, the

most probable environmental hazards in La Porte City include thunderstorms, severe winter storms, and

hailstorms. Because La Porte City is in a low-lying area that is vulnerable to flooding, flood hazards are

especially relevant to land use planning efforts

As of 2009, La Porte City had approximately 1,095 acres of identified floodplain within its city limits. This

accounts for approximately 65.3 percent of the City’s total area. Of the approximately 1,446 properties in

La Porte City, approximately 940 are located within the identified floodplain area. This includes an

estimated 701 housing units. The total value (combined land, building, and dwelling value) of the 940

properties located within the floodplain in La Porte City is estimated to be $65,138,140.

In addition, persons living in mobile homes may also be especially vulnerable during tornadoes and high

winds. According to the 2015 American Community Survey 5‐Year Estimates, there are an estimated 6

mobile homes in La Porte City. Using the average persons per households of 2.45, there are approximately

15 persons living in mobile homes in La Porte City.

Further, persons living in some multi‐family units may also be at risk due to the lack of a proper tornado

shelter. According to the 2015 American Community Survey 5‐Year Estimates, there were an estimated

114 housing units in buildings with at least three units. Again, using the average number of persons

household, there are approximately 279 persons living in multi‐family housing units that may be at-risk

during a tornado event.

As noted above, Wolf Creek and the Cedar River pose substantial flood hazards in La Porte City, and several

flood events in the last decade have caused property damage in developed areas. According to the Federal

Emergency Management Agency (FEMA), approximately 940 properties and several streets are located

within the flood hazard area. With the number of properties in the floodplain, “repetitive loss” properties

are a virtual certainty. As defined by FEMA, a repetitive loss property is an insurable building for which

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two or more claims of more than $1,000 were paid by the National Flood Insurance Program (NFIP) within

a 10-year period; according to 2009 FEMA data, La Porte City has 15 repetitive loss properties.

Flash flooding has occurred in La Porte City in the past, but the City has since installed a substantial amount

of storm sewer infrastructure throughout the community. Additionally, with La Porte City being

surrounded by row cropland, recent tiling and drainage activity in farm fields near the floodplain may also

be increasing rainwater discharge to Wolf Creek and its tributaries during some storm events.

Figure 1: Floodplain in La Porte City

Source: ESRI ArcGIS map of FEMA Flood Insurance Rate Maps (FIRMs).

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Public Infrastructure and Utilities La Porte City’s public infrastructure and utilities are owned and operated either by the municipality or

through a contracted service. Below are the City’s public infrastructure and utilities providers.

Streets and Highways

The City of La Porte City maintains 34 lane miles of paved roadway. Standard maintenance on the streets

is the responsibility of the Public Works Department.

Sidewalks

Sidewalks are present in older sections of the community and newer developments, but there are areas

of the community missing sidewalks. Incidentally, many of the older sidewalks need to be replaced.

Trails – Pedestrian & Bicycle

La Porte City is fortunate to have trail access for members of its community. The nearby Cedar Valley

Nature Trail is a recreational trail that connects the larger communities of Waterloo and Cedar Rapids,

and which is a segment of the American Discovery Trail. There are also other trails in the area including

along Wolf Creek.

Water Service

The water utility in La Porte City is municipally owned. The City’s average consumption is reported to be

200,000 gallons/day, and it has 922 water user accounts on the system (825 residential, 90 commercial, 6

municipal, and 1 utility).

Residents are currently supplied water through two wells and one water tower. The first well, Well #4,

was drilled in 1972 and is 1,400 feet deep with a capacity of 500 gallons per minute (gpm), while the

second, Well #5, was drilled in 2011 and it is also 1,400 feet deep with a capacity of 475 gpm. Construction

was completed in 2011 on the current elevated water tower, and it holds approximately 400,000 gallons

of water.

Sewer Service

The sewage treatment facility in La Porte City is engineered to have a design capacity of 554,000

gallons/day. The average daily load is approximately 250,000 gallons. While there are a few septic

systems located in the community, it is estimated that 98 percent of the community is served by the

municipal sanitary sewer system. The City estimates that there are 948 active sanitary sewer hookups in

the community.

Municipal Power Plant

The City of La Porte City has a power plant that was originally built in 1935 and it has had numerous

updates since that time, the most recent of which included $1.2 million in improvements. The City

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purchases electricity from Resale Power Group of Iowa, a group created by municipalities who purchase

their electricity together in order to garner a more competitive rate.

In addition to providing backup generation services to La Porte City, the municipal power plant is required

to provide some energy to the grid, especially during times of peak use.

Telephone

Telephone service in the community is provided by LPC Connect. The company began as the La Porte City

Farmers Mutual Telephone Company over 100 years ago and has continued to improve services and

technology in the City.

Community Services

Education

The Union Community School District has four school buildings; two are in La Porte City and two are in

Dysart. The offices for the school district are also in La Porte City. The school facilities are well

maintained, and in recent years, a preschool was added to the elementary school.

Resident school district enrollment has slowly decreased from 1,121 in the 2012-2013 academic year to

1,095 in 2016-2017. While enrollment numbers have been declining slightly, the percentage of students

has remained constant averaging around 95 percent of the total certified enrollment. Open enrollment

numbers have fluctuated throughout the years. Overall, the District’s projections indicate that enrollment

will decline to 954 by the 2021-2022 academic year, not accounting for the possible future impact of

residential growth or loss throughout the community.

Union Community School District ranks in the middle of the school districts in Iowa according to

Niche.com. Niche is website that “rigorously analyzes dozens of public data sets and millions of reviews

to produce comprehensive rankings, report cards, and profiles for every K-12 school, college, and

neighborhood in the U.S.”. Based on the Iowa School Report Card on EducateIowa.gov, the Union

Community School District has “acceptable” or higher rankings when compared to other schools in the

state.

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Figure 2. Enrollment in Union Community School District.

Source: Union Community School District Certified Enrollment for the 2016-2017 School Year and Five-Year

Enrollment Projections.

Emergency Services

Police protection is provided by the City with one full-time officer.

Fire and rescue service is provided by a local volunteer force. This gives the City a unique local level of

service compared to other small communities who depend on fire and rescue services provided by other

cities.

Demographic Overview

Over the past century, La Porte City grew from a small town of fewer than 1,250 people to a community

of over 2,200 today. According to data obtained from the 2010 Census, La Porte City has a population of

2,285 people. With the notable exception of the 1980s, the City has experienced an increase in population

every decade, with a 15.5 percent increase between 1960 and 1970 being the largest. The reason for the

decrease in population during the 1980s, an 8.4 percent decrease, is due primarily to the struggling local

economy during that time-period. Between 2000 and 2010, the City’s population saw a 0.4 percent

increase.

According to the population projections shown in Figure 3, La Porte City will experience an estimated

population increase of about 170 people by 2030. The highest estimate of 2,545 people was obtained

from a geometric projection of the using the decades between 1950-2010 – an average of 85 people per

decade. The lowest estimate – 2,259 people – was obtained from a linear projection using the decades

between 1990-2010, or 13 people per decade. A geometric projection using population figures between

0

200

400

600

800

1000

1200

1400

'12/'13 '13/'14 '14/'15 '15/'16 '16/'17 '17/'18 '18/'19 '19/'20 '20/'21 '21/'22

Nu

mb

er o

f St

ud

ents

School Year

Union School District Past and Projected Enrollment

Total enrollment Projected enrollment

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1990-2010 population yields a population projection similar to the linear projection from 1990-2010 of

2,268 people.

Figure 3: Population Trends in La Porte City

Source: U.S. Census Bureau data from Iowa State Data Center, population projections by INRCOG

Table 1 shows Census Bureau demographic data for 2000, 2010, and an estimate from 2015. The 2000

and 2010 numbers are complete counts from the Decennial Census, while the 2015 data was obtained

from the American Community Survey 5-year estimates. As a result, ACS estimates cannot readily be

compared to Decennial Census data and may be unreliable for small communities. Nevertheless, they are

provided in Table 1 for informational purposes only.

1,200

1,300

1,400

1,500

1,600

1,700

1,800

1,900

2,000

2,100

2,200

2,300

2,400

2,500

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030

ActualPopulation

Geometricincreaseprojected from2000-2010

Linear increaseprojected from1950-2010

Linear increaseprojected from2000-2010

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Table 1: La Porte City Demographics

Demographic Variable 2000 2010 2015 (Estimate)

Total Population 2,275 2,285 2,315

Age

Median Age 37.3 39.6 38.1

Under 18 26.4% 27.0% 28.2%

25 to 44 26.3% 24.9% 22.6%

65 and older 20.9% 18.3% 15.1%

Households and Families

Average Household Size 2.43 2.45 2.38

Average Family Size 2.97 3.04 Not Calculated

Family Households (% of

households)

68.7% 65.7% Not Calculated

Households with Children (%

of households)

34.6% 34.5% Not Calculated

Race and Ethnicity

White 99.2% 97.8% 98.0%

Black/African-American 0.1% 0.8% 0%

American Indian/Alaska

Native

0.2% 0.1% 0%

Asian/Pacific Islander 0.1% 0.2% 1.1%

Other race 0.7% 0.1% 0.0%

Two or more races 0% 1.0% 1.0%

Hispanic or Latino (of any

race)

0.2% 1.0% 0.4%

Source: 2000 and 2010 Decennial Census, 2015 5-year American Community Survey (ACS)

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Between 2000 and 2010, La Porte City’s population grew by 0.4 percent, from 2,275 to 2,285. The median

age increased from 37.3 to nearly 39.6, a trend seen in many other rural Iowa communities. The number

of children increased slightly, while prime working-age adults (25 to 44 years old) in La Porte City declined

between 2000 and 2010. The senior share of the population (65 and older) also declined by 2.6 percent.

Family characteristics for La Porte City were consistent throughout the decade. The average household

size, average family size, and the percentages of households with children all experienced less than a one

percent change between 2000 and 2010. The percentage of family households decreased slightly between

2000 and 2010, from 68.7 percent to 65.7 percent.

Figure 4: Age Distribution by Gender of La Porte City Residents

Source: 2000 and 2010 Decennial Census

Figure 4 shows the age distribution of La Porte City’s residents by gender. Overall, between 2000 and

2010, the age distribution shifted toward older age brackets, with declines in two of the four childhood

age cohorts and increases in age brackets 45 years and older. However, increases were seen in the 5-9

and 10-14 age brackets, which may suggest that families are staying, but new young families may not be

moving to La Porte City. The suggestion of young families not moving to the area would also support the

Union Community School District’s prediction of decreasing enrollment over the next five years.

As Table 1 shows, La Porte City’s population is predominantly Non-Hispanic White. (The Census Bureau

collects data on ethnicity – whether or not a person identifies as Hispanic or Latino – separately from

100 80 60 40 20 0 20 40 60 80 100

Under 5 years

5 to 9 years

10 to 14 years

15 to 19 years

20 to 24 years

25 to 29 years

30 to 34 years

35 to 39 years

40 to 44 years

45 to 49 years

50 to 54 years

55 to 59 years

60 to 64 years

65 to 69 years

70 to 74 years

75 to 79 years

80 to 84 years

85 years and over

Population

Age

Ran

ge

Age Distribution by Gender

2010 Female

2010 Male

2000 Female

2000 Male

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race.) However, the percentages of residents did diversify over the past decade. Those who identify as

Black, Asian or Pacific Islander, mixed-race, or Hispanic/Latino increased slightly between 2000 and

2010.

Economic Overview

La Porte City is an above-average-income community. Table 2 below compares 2015 5-year ACS data on

income, employment, and poverty for La Porte City, Waterloo, Cedar Falls, La Porte City, Jesup, Black

Hawk County, and the State of Iowa. The limitations of ACS data are discussed in the Demographic

Overview section above, but the ACS is the most current and authoritative public data source for small

communities like La Porte City. The City’s household income falls between all the jurisdictions in

comparison. Waterloo and Black Hawk County are below, while Cedar Falls, La Porte City, Jesup, and the

State of Iowa have higher household incomes. Median family income is less likely than median household

income to be skewed downward by the presence of student households, but La Porte City’s median family

income ($70,250) is higher than that of Waterloo ($52,366), Jesup ($68,664), Black Hawk County

($63,011), and the State of Iowa ($67,466). The only cities included in the table with a family income

higher than La Porte City were Hudson ($89,800) and Cedar Falls ($81,996).

La Porte City has one of the lower labor force participation rates in comparison to the cities listed in Table

2. The poverty rate is higher than half the jurisdictions shown, but the unemployment rate is the lowest

in the comparisons (2.7 percent), the next closest city’s rate was Hudson (4.8 percent).

Table 2: Income, Employment, and Poverty in La Porte City and Other Communities.

Economic Variable La Porte City Waterloo Cedar Falls Hudson Jesup Black Hawk Co. Iowa

Median household

income $50,281 $41,933 $55,808 $77,969 $56,898 $48,369 $53,183

Median family income $70,250 $52,366 $81,996 $89,800 $68,664 $63,011 $67,466

Unemployment rate* 2.7% 8.9% 5.0% 4.8% 7.2% 6.6% 4.9%

Labor force

participation rate* 66.6% 66.1% 69.4% 72.9% 75.4% 67.3% 67.6%

Poverty rate

(individuals) 12.7% 17.6% 18.5% 4.1% 4.5% 15.7% 12.5%

Poverty rate (families) 12.2% 13.2% 5.1% 2.4% 5.5% 9.0% 8.1%

Source: 2015 5-year ACS. *For the civilian population 16 years and older. U.S. Census Bureau estimates are not

comparable to official Bureau of Labor Statistics estimates.

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The number of workers who live in La Porte City but commute elsewhere for work (955) is higher than the

number who work in La Porte City but live elsewhere (441), which is a common trend for small

communities near a metropolitan area (Figure 5). Beside the 8.9 percent of the workforce who live and

work in La Porte City, most workers who live in La Porte City are employed in Waterloo or Cedar Falls (62.3

percent), while the other 28.8 percent of the workforce are employed throughout surrounding

communities in the region.

Figure 5: Inflow/Outflow Patterns for Workforce in La Porte City.

Source: Longitudinal Employer-Household Dynamics (LEHD)

People who work in La Porte City earn a range of incomes overall, but workers who commute to La Porte

City from other communities are less likely to earn more than $3,333 per month –or $40,000 per year.

Conversely, those La Porte City residents that work outside of the community typically earn higher wages

than if they worked within the community, as shown in Table 3.

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Table 3: Earnings of La Porte City Workers

Income Outflow (live in La Porte City, work elsewhere)

Inflow (work in La Porte City, live elsewhere)

Workers Earning $1,250 per month or less 164 114

Workers Earning $1,251 to $3,333 per month 374 150

Workers Earning More than $3,333 per month 417 177

Source: Longitudinal Employer-Household Dynamics (LEHD).

Housing in La Porte City

American Community Survey Estimates

In La Porte City, as in most rural Iowa communities, the housing stock is predominantly owner-occupied

(74.0 percent of occupied units) and comprised of single-family detached units (82.5 percent of all units;

see Table 4). Also, as in most rural Iowa communities, La Porte City’s housing stock is relatively old.

Approximately 44.6 percent of La Porte City’s housing units were built before 1959, and about 35.6

percent were built between 1960-1979. The most recent surge in housing construction was between 1980

and 1999. According to the estimates, there have only been a small percentage (1.9) built since 2000.

Furthermore, 30.2 percent of households moved into their La Porte City unit between 2010 and 2014, and

29.4 percent moved-in between 2000 and 2009. This may be an indication that there is a recent demand

for housing in the City. The housing data in Table 4 below comes from 2015 ACS estimates, the limitations

of which are described earlier in this report. However, as for the economic data in Table 2, ACS estimates

are the most current and authoritative public data available at this time.

Housing prices and vacancy rates in La Porte City indicate a relatively fair market for both buyers and

sellers. La Porte City’s overall vacancy rate is 7.3 percent, which is slightly lower than that of Waterloo (8.3

percent), Black Hawk County (7.4 percent), and the State of Iowa (8.7 percent). La Porte City’s estimated

owner vacancy rate of 2.8 percent is slightly higher but still comparable to that of Black Hawk County (1.8

percent). Its rental vacancy rate is estimated to be 5.3 percent. Of note, however, is the fact that La Porte

City’s rental vacancy rate is a mere 2.8 percent, which is less than half of any of the other jurisdictions

presented in Table 6.

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Table 4: Characteristics of La Porte City's Housing Stock

Subject Estimate Margin of Error Percent % Margin of Error

HOUSING OCCUPANCY

Total housing units 972 +/-79 972 (X)

Occupied housing units 901 +/-76 92.7% +/-4.7

Vacant housing units 71 +/-48 7.3% +/-4.7

Homeowner vacancy rate 2.8 +/-3.2 (X) (X)

Rental vacancy rate 5.3 +/-8.4 (X) (X)

UNITS IN STRUCTURE


1-unit, detached 789 +/-75 81.2% +/-5.5

1-unit, attached 13 +/-13 1.3% +/-1.3

2 units 39 +/-35 4.0% +/-3.5

3 or 4 units 33 +/-25 3.4% +/-2.6

5 to 9 units 28 +/-23 2.9% +/-2.3

10 to 19 units 65 +/-32 6.7% +/-3.2

20 or more units 0 +/-9 0.0% +/-2.0

Mobile home 5 +/-7 0.5% +/-0.7

Boat, RV, van, etc. 0 +/-9 0.0% +/-2.0

YEAR STRUCTURE BUILT


Built 2014 or later 0 +/-9 0.0% +/-2.0

Built 2010 to 2013 0 +/-9 0.0% +/-2.0

Built 2000 to 2009 17 +/-15 1.7% +/-1.5

Built 1990 to 1999 75 +/-27 7.7% +/-2.9

Built 1980 to 1989 86 +/-36 8.8% +/-3.6

Built 1970 to 1979 201 +/-63 20.7% +/-5.8

Built 1960 to 1969 137 +/-42 14.1% +/-4.2

Built 1950 to 1959 106 +/-43 10.9% +/-4.3

Built 1940 to 1949 53 +/-22 5.5% +/-2.2

Built 1939 or earlier 297 +/-50 30.6% +/-5.0

HOUSING TENURE

Occupied housing units 901 +/-76 901 (X)

Owner-occupied 667 +/-72 74.0% +/-6.5

Renter-occupied 234 +/-64 26.0% +/-6.5

Average household size of owner-occupied unit

2.58 +/-0.22 (X) (X)

Average household size of renter-occupied unit

2.33 +/-0.45 (X) (X)

YEAR HOUSEHOLDER MOVED INTO UNIT

Occupied housing units 901 +/-76 901 (X)

Moved in 2015 or later 6 +/-7 0.7% +/-0.8

Moved in 2010 to 2014 272 +/-68 30.2% +/-6.6

Moved in 2000 to 2009 265 +/-57 29.4% +/-6.6

Moved in 1990 to 1999 189 +/-51 21.0% +/-5.2

Moved in 1980 to 1989 52 +/-22 5.8% +/-2.5

Moved in 1979 and earlier 117 +/-44 13.0% +/-4.8

VALUE

Owner-occupied units 667 +/-72 667 (X)

Less than $50,000 36 +/-16 5.4% +/-2.4

$50,000 to $99,999 181 +/-46 27.1% +/-5.9

$100,000 to $149,999 251 +/-53 37.6% +/-7.2

$150,000 to $199,999 120 +/-33 18.0% +/-4.9

$200,000 to $299,999 74 +/-33 11.1% +/-4.6

$300,000 to $499,999 0 +/-9 0.0% +/-3.0

$500,000 to $999,999 5 +/-7 0.7% +/-1.1

$1,000,000 or more 0 +/-9 0.0% +/-3.0

Median (dollars) $119,000 +/-5,685 (X) (X)

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Table 5: Characteristics of La Porte City's Housing Stock (Continued)

MORTGAGE STATUS

Owner-occupied units 667 +/-72 667 (X)

Housing units with a mortgage 389 +/-65 58.3% +/-7.8

Housing units without a mortgage 278 +/-61 41.7% +/-7.8

SELECTED MONTHLY OWNER COSTS (SMOC)

Housing units with a mortgage 389 +/-65 389 (X)

Less than $500 0 +/-9 0.0% +/-5.0

$500 to $999 164 +/-52 42.2% +/-10.5

$1,000 to $1,499 165 +/-44 42.4% +/-10.0

$1,500 to $1,999 49 +/-28 12.6% +/-6.9

$2,000 to $2,499 11 +/-12 2.8% +/-2.9

$2,500 to $2,999 0 +/-9 0.0% +/-5.0

$3,000 or more 0 +/-9 0.0% +/-5.0

Median (dollars) $1,065 +/-72 (X) (X)

Housing units without a mortgage 278 +/-61 278 (X)

Less than $250 29 +/-17 10.4% +/-5.4

$250 to $399 84 +/-28 30.2% +/-9.5

$400 to $599 134 +/-41 48.2% +/-9.3

$600 to $799 22 +/-18 7.9% +/-6.1

$800 to $999 9 +/-10 3.2% +/-3.7

$1,000 or more 0 +/-9 0.0% +/-6.9

Median (dollars) $440 +/-41 (X) (X)

SELECTED MONTHLY OWNER COSTS AS A PERCENTAGE OF HOUSEHOLD INCOME (SMOCAPI)

Housing units with a mortgage 389 +/-65 389 (X)

Less than 20.0 percent 249 +/-50 64.0% +/-10.2

20.0 to 24.9 percent 66 +/-39 17.0% +/-9.0

25.0 to 29.9 percent 10 +/-11 2.6% +/-2.8

30.0 to 34.9 percent 12 +/-13 3.1% +/-3.2

35.0 percent or more 52 +/-31 13.4% +/-7.5

Not computed 0 +/-9 (X) (X)

Housing unit without a mortgage 278 +/-61 278 (X)


10.0 to 14.9 percent 40 +/-21 14.4% +/-7.1

15.0 to 19.9 percent 36 +/-22 12.9% +/-7.8

20.0 to 24.9 percent 30 +/-24 10.8% +/-8.2

25.0 to 29.9 percent 14 +/-13 5.0% +/-4.3

30.0 to 34.9 percent 10 +/-10 3.6% +/-3.6

35.0 percent or more 31 +/-19 11.2% +/-6.9

Not computed 0 +/-9 (X) (X)

GROSS RENT

Occupied units paying rent 220 +/-63 220 (X)

Less than $500 42 +/-31 19.1% +/-13.1

$500 to $999 148 +/-55 67.3% +/-16.5

$1,000 to $1,499 30 +/-27 13.6% +/-11.7

$1,500 to $1,999 0 +/-9 0.0% +/-8.7

$2,000 to $2,499 0 +/-9 0.0% +/-8.7

$2,500 to $2,999 0 +/-9 0.0% +/-8.7

$3,000 or more 0 +/-9 0.0% +/-8.7

Median (dollars) $598 +/-154 (X) (X)

No rent paid 14 +/-13 (X) (X)

GROSS RENT AS A PERCENTAGE OF HOUSEHOLD INCOME (GRAPI)

Occupied units paying rent 215 +/-63 215 (X)


15.0 to 19.9 percent 35 +/-36 16.3% +/-14.4

20.0 to 24.9 percent 21 +/-13 9.8% +/-6.2

25.0 to 29.9 percent 34 +/-35 15.8% +/-15.5

30.0 to 34.9 percent 25 +/-22 11.6% +/-11.5

35.0 percent or more 69 +/-32 32.1% +/-13.5

Source: 2015 5-year ACS.

18

Table 6: Housing Market Overview for La Porte City and Other Communities

Housing Market Variable La Porte

City Waterloo

Cedar Falls

Hudson Jesup Black Hawk

County State of

Iowa

Vacant housing units 7.3% 8.3% 6.9% 2.7% 5.5% 7.4% 8.7%

Homeowner vacancy rate 2.8% 2.2% 1.4% 1.7% 1.1% 1.8% 1.6%

Rental vacancy rate 2.8% 9.6% 7.5% 0.0% 7.3% 8.4% 6.2%

Median value of owner units $119,000 $104,200 $170,500 $172,000 $134,800 $130,200 $129,200

Median monthly owner costs (units with mortgage)

$1,065 $959 $1,318 $1,337 $1,152 $1,074 $1,171

Median gross rent $598 $672 $759 $675 $512 $700 $697

Cost burdened owner households (with mortgages) *

16.5% 22.6% 17.5% 6.7% 22.3% 20.7% 21.6%

Cost burdened renter households*

43.7% 51.9% 54.7% 19.8% 35.9% 50.9% 44.6%

Source: 2015 5-year ACS. *Households whose housing costs (including utilities, taxes, insurance, homeowner

association or condominium fees, etc.) are 30 percent or more of their gross income are considered cost burdened.

Figure 6: Prices of Homes Sold Between November 2014- November 2017

Source: Multiple Listing Service.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

≤ $49,000 $50,000 to$99,999

$100,000 to$149,999

$150,000 to$199,999

$200,000 to$399,999

$400,000 ormore

Pe

rce

nt

of

Ho

me

s w

ith

At

Pri

ce

Prices Homes Sold for Between November 2014- November 2017

La Porte City

Hudson

Black HawkCountyWaterloo

Cedar Falls

Iowa

19

Table 7: Rent Asked in La Porte City and Other Communities

All Units La Porte City Waterloo Cedar Falls Hudson Black Hawk County Iowa

All vacant-for-rent and rented, not occupied units

13 1,149 571 0 1,785 28,490

Less than $100 0 0 0 0 0 213

$100 to $149 0 0 0 0 0 295

$150 to $199 0 19 0 0 19 201

$200 to $249 0 0 0 0 0 564

$250 to $299 0 0 25 0 25 918

$300 to $349 0 68 0 0 68 1,285

$350 to $399 0 16 47 0 63 2,230

$400 to $449 0 203 0 0 211 3,020

$450 to $499 0 126 39 0 182 2,450

$500 to $549 0 184 14 0 198 2,760

$550 to $599 0 181 50 0 231 2,248

$600 to $649 0 101 68 0 169 2,440

$650 to $699 13 41 102 0 177 2,153

$700 to $749 0 72 24 0 102 1,303

$750 to $799 0 17 59 0 76 1,301

$800 to $899 0 39 23 0 62 1,092

$900 to $999 0 0 18 0 18 890

$1,000 to $1,249 0 0 20 0 20 866

$1,250 to $1,499 0 0 28 0 28 382

$1,500 to $1,999 0 15 0 0 15 329

$2,000 to $2,499 0 67 30 0 97 670

$2,500 to $2,999 0 0 24 0 24 230

$3,000 to $3,499 0 0 0 0 0 344

$3,500 or more 0 0 0 0 0 306

Source: 2015 5-year ACS.

La Porte City’s median gross rent – the rent paid to the landlord plus the cost of utilities – is $598 per

month. This is lower than all the jurisdictions shown in Table 6, except for Jesup ($512). However, the

number of units available to rent, or rented but not yet occupied, is estimated to be zero at every price

point with the exception of the $650-$699 price point, which had an estimated thirteen units available

(Table 7); this supports the estimated 2.8 percent rental vacancy rate for La Porte City (Table 4 and Table

6). Despite the limitations of ACS data, this information shows that Hudson is the only jurisdiction that is

in close comparison to La Porte City when it comes to rental vacancy rates.

Households who pay 30 percent or more of their incomes on housing costs (including rent or mortgage

payments, utilities, taxes and insurance, and homeowner association or condominium fees), are

considered to be “cost burdened.” Cost burdened households have less money to spend on other

priorities, such as food, health care, and retirement savings1. In La Porte City, the percentage of owners

with mortgages and renters who are cost burdened (16.1 percent and 43.7 percent, respectively) is similar

to those reported by the State of Iowa, as is also presented in Table 6.

1 The concept of cost burden is generally used to study the housing costs of low- and moderate-income households, since affluent households are better positioned to pay 30% or more of their incomes for housing.

20

Local Data

Home Sale Market

For the home sale market, Multiple Listing Service (MLS) data provides more current information than the

ACS. Similar to ACS data on home values in La Porte City and other jurisdiction in Black Hawk County, MLS

data shows that La Porte City’s median home sale price of $144,698 is below average in comparison to

other selected communities in Table 8. Of all the Black Hawk County jurisdictions illustrated, La Porte City

has the lowest median sale price. Conversely, La Porte City reported the lowest median number of days

on the market for its home sales when compared to the other communities. La Porte City’s home sale

volume as a share of all owner units2 is 13.6 percent, which is comparable to the other communities except

for Hudson, which reported 7.8 percent. This number is not equivalent to an owner vacancy rate, because

it is impossible to know which homes on MLS are vacant or occupied. However, this ratio provides a better

comparative indicator of owner housing turnover in La Porte City and other Black Hawk County

communities than the ACS owner vacancy rates shown in Table 6.

Table 8: Home Sales in La Porte City and Surrounding Jurisdictions

Community Median Sale Price Median Days

on Market Home Sale Volume (% of

owner housing units)

La Porte City $144,698 73 13.6%

Waterloo $154,109 77 13.6%

Cedar Falls $162,904 77 16.2%

Hudson $161,536 76 7.8%

Black Hawk County $154,316 77 12.7%

Source: Multiple Listing Service, Black Hawk County Assessor.

MLS data also indicates that La Porte City has a comparable homebuyer market when measured against

other communities in the region. As Table 9 shows, La Porte City’s median sale price over the past three

years is $144,698, lower than comparable sized jurisdictions in the surrounding areas. Homes sold in La

Porte City over the last three years spent a median 73 days on the market, which is consistent with like-

sized communities. Finally, La Porte City had 94 home sales over the last three years, a ratio of 0.041 sales

per resident, which is high compared to the other cities in Table 9.

2 Based on Black Hawk County Assessor data on single-family, townhome, and condominium units. It was not possible to separate out rental units, but these estimates also exclude owner units in duplex and multifamily structures. These two sources of error are assumed to counterbalance each other to some extent.

21

Table 9: Home Sales in La Porte City and Comparable Rural Communities, 2014 to 2017

Community Population Median

sale price

Median days on market

Number of sales

Ratio of sales to

residents

Number of owner

units

Ratio of sales to

owner units

La Porte City 2,315 $144,698 73 94 0.041 693 0.136

Hudson 2,391 $161,536 76 62 0.026 796 0.078

Jesup 2,691 $164,013 64 42 0.030 686 0.120 Source: Multiple Listing Service data from 5/23/14 to 5/23/17 (price, days on market, number of sales), 2015 5-

year ACS (population, number of owner units). *Includes owner-occupied units, vacant-for-sale units, and owner

units that are sold but not yet occupied.

Figure 9 offers a cluster diagram showing the number of days on the market and sale price of each unit

over a three-year period of time, 2014 to 2017. What is apparent is the even distribution around the

median days on the market and the clustering of prices under $150,000.

Figure 7: Days on Market by Price Asked for La Porte City Home Sales, 2014 to 2017

Source: MLS

0

100

200

300

400

500

600

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000

Day

s o

n M

arke

t

Sale Price

Cumulative Days on Market

22

Rental Market

To obtain firsthand information on the prices and vacancy rates of La Porte City’s rental housing stock,

INRCOG surveyed seven landlords and property managers known to be renting units in the City. Five rental

property owners and managers provided feedback, and the remaining two could not be reached or

declined to provide feedback. The results of the survey are summarized in Table 10.

With the exception of an assisted living facility, most rental units have two bedrooms and are priced

between $450 and $525 per month. No respondents reported having vacant units, and among the four

respondents who were able to provide the number of days vacant units spend on the market, estimates

ranged from 7 to 30 days. The property manager of 24 low-income senior apartments, built with subsidies

from the U.S. Department of Agriculture, noted that days on market for their vacant units increased when

they switched from advertising in newspapers across the state to online advertising only. However,

average days on market returned to about 30 when the property manager resumed advertising in the La

Porte City newspaper. This seems to suggest that La Porte City has ample demand for high-quality,

moderately priced senior housing.

23

Table 10: La Porte City Rental Market Information from Property Managers and Landlords

Landlord or Property Manager

Rentals in La Porte City

Units by bedrooms and price Vacancy

Days on market

Factors affecting DOM / Comments 1 BR 2 BR 3 BR 4 BR

All Vacant

Vacant for

rent

1 32 24 $511 8 $609 - - - - 0 0 30 Incoming residents need to give 30-day notice to previous landlord

2 5 1 375 4 525 - - - - 0 0 Less

Than 30 Days

Unexpected move outs, which leads to no advertising time

3 14 3 350 9 475 2 595 - - 0 0 30-60 Days

Finding Qualified Tenants

4 1 1 550 - - - - - - - - - -

5 3 - - 3 450 - - - - 0 0 Less

than 15 Days

Dated Units; Units are only 700 Sq. Ft.

6 - - - - - - - - - - - - -

7 - - - - - - - - - - - - -

Source: Surveys of property managers and landlords with rental units in La Porte City

24

Housing Conditions

The quality of a community’s housing stock is an important component in understanding its housing

needs. If poor-quality housing is widespread in a community, many low- and moderate-income

households may have housing-related maintenance hardships even if they are not cost burdened. A

prevalence of housing with maintenance needs may also indicate an opportunity to meet existing and

future demand by rehabilitating vacant units.

A survey of La Porte City’s housing units was conducted on October 19th, 2017. Each unit was rated

according to the categories in Table 11. During the survey, all housing units were evaluated and given a

ranking of either excellent, good, fair, poor, or dilapidated. The excellent category made up 5.53 percent

of the housing stock in the City. The vast majority of housing units surveyed (75.28 percent) are in good

condition, 17.59 percent are in the fair condition, 1.51 percent are in the poor condition, and fewer than

1 percent are in dilapidated condition. This suggests that La Porte City could have the ability to expand its

supply of decent, safe, and sanitary housing by rehabilitating existing units. New construction is an option,

but not the only option to significantly expand the City’s housing supply.

25

Table 11: Windshield Survey of La Porte City Housing Units

Windshield Survey Criteria

Condition Criteria # of Units % of Units

Excellent • No visible needed repairs or updates are apparent

• Typically, new construction, recently renovated, or extremely well-maintained units

55 5.53%

Good

• Unit appears structurally sound (foundation, building envelope, roof)

• Unit appears well maintained – most siding, gutters, trim, windows, and doors are in good repair with good exterior paint condition. Minor problems such as small areas of peeling paint and/or other routine maintenance items may exist.

749 75.28%

Fair

• Unit appears structurally sound (foundation,

building envelope, roof)

• Need for some maintenance or repair - painting the house, fixing a broken door or window, putting on new shutters, replace or fix awnings, etc.

• Issues are primarily cosmetic but cover a sufficient portion of the structure

175 17.59%

Poor

• One or more visible structural defects (foundation, building envelope, or roof) but still habitable. Building requires significant work to address items such as uneven roof lines; shingles in need of immediate replacement; falling-in porch; major cracks or shifting of the foundation, etc.

• Unit requires significant repairs or updates, which would be difficult to correct through normal maintenance (multiple broken doors or windows, roof needing to be re-shingled, excessive paint peeling/missing, etc.)

15 1.51%

Dilapidated

• Unit is suffering from excessive neglect

• Building appears structurally unsound

• Maintenance is non-existent

• Building not fit for habitation in current condition. Multiple windows and/or doors may be boarded up. The building may be considered for demolition or, at minimum, major rehabilitation will be required

1 0.10%

26

Affordability of Homes for Sale

Affordability of homeownership is a function of both a community’s housing costs and the incomes of the

households that wish to live in the community. As discussed above, the rate of housing cost burden among

homeowners with mortgages is relatively low in La Porte City. However, homeownership is typically less

affordable to low- and moderate-income families in the region. Table 12 compares the income needed to

purchase a median-priced home in La Porte City to the average laborshed wage in Iowa Workforce

Development Region 7, which includes Black Hawk County. The assumptions used to calculate the

minimum income needed include:

• 30-year fixed-rate mortgage at 4.3 percent interest

• Federal Housing Administration (FHA) insured mortgage with 3.5 percent down payment

• Front-end ratio of 31 percent, back-end ratio of 41 percent, monthly household debt other than

mortgage is 15 percent of income

• Assessed value is 85 percent of purchase price

• Annual mortgage and homeowner insurance costs combined are 1.5 percent of the purchase price

Table 12: Affordability of Homes for Purchase in La Porte City

Median sale price in La Porte City $144,698

Income needed to afford median-priced home in La Porte City $43,410

Average laborshed wage (annualized average weekly wage) $41,808 Source: MLS, Iowa Workforce Development 2015 Annual Profile: Region 7

The minimum income needed to purchase a median-priced home in La Porte City, using the underwriting

assumptions listed above, is $43,410, which is above the annual average laborshed wage of $41,808. With

that said, many homebuyer households consist of two earners with a combined income over $48,232, the

median household income was estimated to be $50,281 in 2015. Having two adults continuously

employed may be a challenge for many families. For example, when a family moves to a community

where one wage earner has obtained a job, it may take several months for the other wage earner to find

a new job, which makes affording housing more difficult. Additionally, many families with young children

have one adult member who is working outside the home only part-time or parenting full-time. This, too,

makes affording housing challenging

Future Housing Supply and Demand

This section uses data on population and household size trends, home construction, available residential

lots, and other factors in order to estimate supply and demand for new housing in La Porte City by 2030.

Because the most recent American Community Survey estimates of demographic and housing factors are

from 2015, this year is used as a baseline for projecting housing supply and demand. More recent local

data is used for certain variables, as appropriate.

27

To determine the gross new housing stock that will be added in La Porte City between 2015 and 2030, the

home construction rate of 4.25 units per year (from 2013 – 2017 building permit data) was projected over

15 years, resulting in an estimate of 64 new units constructed by 2030 (Table 13). By 2030, some housing

units will also be lost due to demolition, deterioration, or otherwise being removed from the housing

market by their owners. The 2009 Iowa Housing Needs Assessment from Iowa State University estimates

an annual loss rate of 0.67 percent for single-family, owner-occupied units (which comprise most of La

Porte City’s housing stock) in metropolitan areas, which would result in an estimated loss of 80 units in La

Porte City between 2015 and 2030 (not shown in Table 13). This is likely a high estimate of unit loss since

the City’s housing stock is relatively young. By contrast, La Porte City’s demolition records since 2013 show

a demolition rate of 1 unit per year, or 15 units over 15 years. Averaging the residential loss rates from

the Iowa Housing Needs Assessment’s loss factor and La Porte City’s demolition records yields an

estimated loss of 47 units between 2015 and 2030, resulting in a net addition of 17 units.

Table 13 also estimates the number of units that will be age-restricted and the number of new lots that

will be needed to accommodate 64 gross new units. Three of these units (4 percent) are assumed to be

age-restricted3 based on 2009-2015 data for new residential construction in the Midwest from the Census

Bureau’s Characteristics of New Housing. City data indicates there are 31 vacant lots currently available

to be developed. Additionally, if the 47 units projected to be lost from the housing stock are cleared and

made available for infill residential development, zero new residential lots will be needed by 2030 to

accommodate the projected residential development. However, if none of the 47 properties lots from the

residential stock become available for infill development, 64 new lots will be needed.

To determine if La Porte City’s projected new housing development between 2015 and 2030 is adequate

to meet the City’s needs, Table 13 provides estimates of new housing demand over this time-period. The

basic approach to projecting housing demand is to divide the projected population increase by household

size to estimate the number of new households that will need residential units. The average household

size during the 2015-2030 period is estimated to be 2.49. Based on the population projections in Figure 3,

La Porte City’s population will increase by 157 persons (low estimate) to 260 persons (high estimate)

between 2015 and 2030. Dividing the estimated population increase by average household size, provides

initial estimates of 63 to 105 new households (not shown in Table 13). These initial estimates maintain

the 2015 rental vacancy rate of 5 percent (a level considered indicative of a healthy rental market) and

subtracting seniors assumed to be in nursing homes (see note below Table 13). The net estimate of

households added between 2015 and 2030 in La Porte City ranges from 55 to 91.

3 Age-restricted units may only be occupied by households where one or more members are age 55 or older.

28

Table 13: Projected Housing Supply and Demand in La Porte City, 2015 - 2030

Supply Variable Value Source

Current housing stock 972 Black Hawk County Assessor, windshield survey, building permit data

New homes/year 4.25 Building permit data 2013 - 2017

Demolitions/year 1 City of La Porte City demolition data since 2013

Estimated loss rate* 0.67% Iowa Housing Needs Assessment, Iowa State University, 2009

New units added 2015 - 2030 63.75 4.25 units/year x 15 years

Units lost 2015 - 2030 21.5 Average attrition from demolitions/decade and 0.67% estimated attrition rate

Net new units added 2015 - 2030 42.25 Units added ̶ Units lost

% of new residential units that are age-restricted 4% 2009 - 2015 Midwest average from 2015 Characteristics of New Housing (HUD/Census)

Age-restricted new units 2015 - 2030 2.55 63.75 new units added x 4% age-restricted

Available lots (as of 2017) 12 City of La Porte City data on available lots

Estimated new lots needed to accommodate projected new units by 2030

30 to 52

Low estimate: Net new units added ̶ Available lots. High estimate: Gross new units added ̶ Available lots.

*Metropolitan single-family owner-occupied loss rate; provides a conservative estimate of units lost from housing stock.

Demand Variable** 2000 2010 Change per decade Average Value or Change 2015 - 2030 New units or households

Average household size 2.43 2.45 0.02 2.49 (average between 2015 and 2030)

Senior population (65 and older) 18.6% 18.3% -0.3 % .6 % (17% - 18% by 2030)

Population change (low estimate) 105 157 (change 2015 - 2030) 43 households***

Population change (high estimate) 187 280 (change 2015 - 2030) 75 households***

**Source: Decennial Census 2000 and 2010, ACS 2016 5-year estimate, INRCOG population projections

***Black Hawk County data from the 2000 and 2010 Decennial Census was used to calculate a trend in the percentage of seniors in nursing homes (5.5% to 4.4%, or a decline of

1.1 percentage points per decade). Based on this trend, the share of seniors who will be in nursing homes between 2015 and 2030 was estimated at 3%. This percentage was

applied to the low-estimate and high-estimate increases in La Porte City’s senior population from 2015 to 2030. These seniors were assumed to be 1-person households. For the

low and high estimates, 11 and 13 seniors, respectively, are assumed to be in nursing homes. These seniors are subtracted from the projected new households.

29

According to Table 13, if La Porte City’s current trends in residential and population growth continue

through 2030, the City will have a housing shortfall of between 30 units (low estimate) and 52 units (high

estimate). La Porte City’s projected housing demand and shortfall are shown in more detail in Table 14.

Assuming La Porte City’s homeownership rate remains at 74.0 percent (see Table 4), the City will need

between 41 and 68 owner units and between 14 and 23 rental units to accommodate the new households

expected to be added between 2015 and 2030. This assumes that the rental unit vacancy rate will stay

constant at 5 percent.

Table 14: Projected Housing Demand and Shortfall in La Porte City, 2015 – 2030

Population Estimate Low High

New households added 2015 – 2030 (assuming homeownership rate of 74.0%)

Owner 41 68

Renter 14 23

Total housing unit demand 2015 – 2030 (new demand + replacement of 21.5 lost units)

77 113

Housing unit shortfall (projected demand ̶ projected supply) 30 52

Annual building permits needed 2016 - 2030 2 4

New households headed by persons aged 55+** 16 27

*Excluding seniors in nursing homes (low estimate of 11, high estimate of 13)

Source: Decennial Census 2000 and 2010, ACS 2016 5-year estimate, INRCOG population projections, INRCOG

housing supply projections. Sums may not be exact due to rounding.

Between 2013 and 2017, La Porte City issued an average of 4.25 new residential building permits annually

for new construction (Table 13), or only 0.42 percent of the currently available housing stock of 997 units

(according to the 2012-2016 ACS Census data). To meet projected housing demand, including

replacement of units lost from the housing stock, La Porte City must issue an estimated 2 to 4 building

permits annually between 2015 and 2030. La Porte City is currently on track to meet that demand with

4.25 new residential building permits issued per year for the past four years.

La Porte City has a particularly tight market for homes in general, but an even tighter market for “starter

homes”. Most of the homes in the “starter home” range need updating. If the City takes measures to

encourage housing rehabilitation projects, it may be beneficial to the buyers who are looking for move-in

ready moderately priced homes. In addition, expanded rental development would accommodate both

perceived pent-up existing demand and projected future rental demand.

One potential benefit of expanded rental housing stock would be to provide a low-cost alternative to older

homeowners wishing to downsize from their current homes, which, in turn would free up moderately

priced owner units for new buyers. If the share of new households that are headed by persons 65 or older

is proportionate to the population share of persons 65 or older (projected average 17 percent between

2015 and 2030), La Porte City will gain an estimated 16 to 27 households headed by persons in this age

bracket during our projection time-period (Table 14). Reliable projections of demand for age-restricted

30

units are not available, but recent trends in age-restricted unit production in the Midwest (see Table 13)

suggest that 11 to 13 of the new units needed to meet La Porte City’s housing demand through 2030

would be age-restricted units. If new rental housing stock is constructed to be accessible to seniors with

disabilities, it will also expand housing options for non-elderly people with disabilities in La Porte City.

Business and Job Growth in La Porte City

In many rural communities, the establishment of a large new business or expansion of an existing business

can put substantial pressure on the existing housing stock, as new employees seek desirable places to live

within a reasonable commuting distance of their employment. In La Porte City, there is no immediate

pressure by businesses, but there has been interest shown by some smaller businesses, as well as

potential business owners that have purchased property, that may impact housing demand.

Housing Goals and Objectives

Based upon the findings of this Housing Needs Assessment, and in cooperation with the City Housing

Committee, the following goals and objectives have been developed to maintain and expand La Porte

City’s housing stock in a manner that provides a range of housing choices, preserves the City’s quality,

value, and appearance of the current housing stock, and complements new commercial and industrial

development. In the tables on the following pages, each suggested goal is accompanied by several

objectives. Each objective has one or more proposed implementation steps, along with a list of entities

responsible for those steps and approximate completion dates.

31

GOAL 1: Increase Availability of Housing Options

Objective Implementation Steps Responsible Entity Completion Date

Single-family new construction • Discuss with developer

• Incentives for tax abatement

• Tax Increment Financing

• Developer

• City

Identify and establish tax incentives to encourage

more affluent existing residents to “upgrade” to a

new home and thus opening older, more-

affordable homes to the market

• Discuss with financial advisor

• Tax Abatement

• Workforce Housing Tax Credits


• City

• Housing Committee

• Economic Development Committee

Addition of townhouses, condominiums, and

other multi-family housing to increase the housing

density throughout the City

• Discuss with developer

• Incentives for tax abatement


• Developer

• City

Provide incentives to developers that include a

mix of housing types within a single development

• Conduct regulation review

• Tax abatement


• City

• Planning Commission


Encourage new residential development on

identified infill lots

• Develop program and marketing materials

• Tax Abatement


• City



Increase Senior (age 62+) Housing options, with

the addition of more Assisted Living and Nursing

Homes

• Determine Need (Study)

• Interest a developer in the community

• Developer

• City



32

GOAL 2: Promote Housing Development in a Range of Prices Making La Porte City Affordable for Different Income Levels


Provide homes in a range of affordability levels • Starter homes ranging from $100,000 -

$150,000

• Developer

• City



• Moderate-Income homes ranging from

$150,000 - $200,000

• Higher-income homes ranging from $200,000

- $350,000

Develop a repair program for older homes in the

City

• TIF Set Aside Funds

• CDBG Rehabilitation Program

• City



Rental units ranging from $500 - $750 per month • Interest a developer in the community • Developer

• City



Promote housing similar to Prairie Village • Interest a developer in the community • City



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GOAL 3: Maintain and Improve the Quality, Value, and Appearance of the City’s Housing Stock


Encourage homeowners to do the necessary

maintenance to maintain their home’s integrity

(roof, foundation, furnace, air conditioning,

insulation, windows, siding, paint/cosmetic, and

landscaping)


• TIF Set Aside

• City Promotion

• City

• Property Owners

Pursue funding options to provide home

rehabilitation assistance to low- and moderate-

income homeowners


• TIF Set Aside

• City

• Property Owners

Continue to prioritize demolition and removal of

homes in the floodplain/floodway

• Hazard Mitigation Plan/HMGP Program

• Other Funding Source(s)

• City

• Property Owners

Maintain and identify opportunities to repurpose

vacant parcels in floodplain/floodway

• Plan to do so

• Coordinate with state agencies

• Identify Funding Sources

• City

• Property Owners

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GOAL 4: Encourage Businesses to Relocate Toward the Central Business District


Encourage businesses to convert their upper-story

spaces to residential units or commercial office

spaces

• Identify prospective buildings

• Meet with owners

• Interest a developer in a project

• Identify any funding programs

• City


• As part of the Downtown Revitalization project

Promote incentives to businesses to relocate to

the business district


• City


Continue to make the lower story units attractive

to new businesses

• Identify buildings/owners

• Meet with owners

• Marketing of Central Business District

• City


• As part of the Downtown Revitalization project

35

GOAL 5: Promote Residential and Business Development in a Coordinated Manner


Continue to improve the downtown area with

business incentives

• Build upon Downtown Revitalization Project

• Research other communities’ projects

• City


Promote the rehabilitation of the current mixed-

use spaces

• Identify existing mixed uses in the community

• Research what other communities have accomplished

• Meet with property owners

• City

Consider allowing new developments to contain a

mix of housing types as well as allowing mixing

housing and low intensity commercial

development

• Conduct regulation review

• Define where this may be appropriate

• Amend regulations accordingly

• City

• Planning Commission

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Summary and Conclusions

As a rural community in close proximity to the Waterloo and Cedar Falls area, La Porte City is surrounded

by farmland. Being located within close proximity to a metropolitan area creates both benefits and

challenges in demographic, economic, and housing market trends. This gives the City a unique feeling and

character.

La Porte City has experienced moderate population growth since recovering from the Farm Crisis of the

1980s. The City’s population is expected to continue growing at a slow pace, with projected increases

ranging from about 2,259 to 2,545 people by 2030. Like many rural communities, La Porte City has a

significant number of persons over the age of 60, and its school enrollment has declined in recent years.

The central business district, which is located along Main Street, showcases a unique downtown

commercial area for visitors and residents to spend time.

La Porte City’s housing stock is aging along with its population. A slow growth rate in La Porte City has

resulted in a much slower growth rate for new housing development. This is pretty typical in many rural

Iowa communities. The incomes and labor force participation rate of City residents are in line with other

Black Hawk County communities and the state as a whole, while poverty and unemployment rates are

generally lower. La Porte City’s median home values, home sale prices, and housing costs for owners are

generally lower compared to other Black Hawk County communities, the volume of home sales relative

to the overall housing stock is comparatively average, but the days that homes are on the market is

generally a shorter period of time. The costs for La Porte City’s limited rental units are moderate compared

to other Black Hawk County communities and the state as a whole, but rental vacancy rates are low in

comparison to any other community in Black Hawk County, with the exception of Hudson.

The share of owner and renter households that are housing-cost burdened- paying 30 percent or more of

their incomes on housing-is much higher in La Porte City when compared to Black Hawk County

communities and the state as a whole. With lower home sale prices, average sale volumes, limited rental

housing stock, and low rental vacancy rates, the opportunities for low- and moderate-income families to

move to La Porte City are limited. Indeed, a family would need an income over $43,000 to purchase a

median-priced home in La Porte City with a Federal Housing Administration (FHA) loan, whereas the

regional laborshed wage is less than $42,000. Workers who commute to La Porte City from neighboring

communities tend to have earnings below this level, while workers who live in La Porte City and commute

to work elsewhere are more likely to have higher incomes.

This Housing Needs Assessment projected housing supply and demand through 2030 in La Porte City using

a variety of data sources, including City building permit and demolition data, Black Hawk County Assessor

data, Census demographic data, and Iowa State University estimates of the rates of housing stock loss.

With the City’s demolition rate and vacant lots taken into account, the City is projected to have over the

housing stock needed to house the projected population for 2030. But if the current vacant lots are not

infilled, there would be a shortage in housing stock. The number of new households added in La Porte

City between 2015 and 2030 is expected to increase, which would result in a potential need for additional

37

housing units. However, because the majority of La Porte City’s housing stock is in good condition, the

ability to meet future housing needs by rehabilitating existing housing stock is minimal.

In small, rural communities, population growth and housing demand can greatly exceed expectations

when a large business operation locates or expands in the community. No large-scale business

development is predicted in La Porte City, but some small businesses are considering opening or

expanding facilities in the City, which could affect housing demand. No businesses to date have “broken

ground” but are considering doing so in the future. If such business development in La Porte City increases

in the future, the City will be in a better position to attract new employees as residents if it has a healthy

range of housing options.

To summarize, La Porte City has three broad categories of unmet housing needs:

• Maintaining and improving the quality, value, and appearance of the City’s housing stock –

improving the current housing stock can make it much more inviting to potential buyers, as well

as increase the values for neighboring houses.

• Promoting housing development in a range of prices and housing options, making La Porte City

affordable and more attractive for different levels of potential homeowners –adding valuable

housing stock to the current housing market would be appealing to more potential homebuyers

by offering a variety of price ranges, lot sizes, and housing types.

• Promoting residential and business development in a coordinated manner – approaching

developed areas of the City would create a concentration of development versus being spread

throughout the community.

As La Porte City seeks to expand and diversify its housing stock, it is important to do so in a manner that

preserves the City’s rural character and conserves fiscal and environmental resources. Compact

development that uses infill lots (when available) or is contiguous to existing development, minimizes the

cost of providing new infrastructure, urban runoff, and loss of prime agricultural land. Continued

residential and commercial development, as well as tiling and drainage of agricultural land in and around

La Porte City, may increase runoff and stream flows in Wolf Creek in the coming years, thereby increasing

flood hazards. Conversely, compact residential development patterns that minimize paved surfaces and

soil compaction will help to limit flood hazards. During the planning process, task force members noted

that many prospective homeowners are seeking larger lot sizes than those currently available in the city’s

most recent development area, the Sweet Addition. Future developments should offer varying lot sizes

to accommodate market demand.

The proposed goals, objectives, and implementation steps provide a practical framework to meet the

housing needs identified in this document, while taking fiscal, environmental, and business development

considerations into account. A diverse housing stock, developed in a manner that preserves the City’s

unique character, will help La Porte City remain a vibrant rural community.

la porte city, iowa housing needs assessment 2018 la porte ...08a25230-9849... · in addition,...

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