Planning Commission Agenda and Packet 2024 04 11

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declined, and population plateaued in Louisville from 2018-2021, only seeing an uptick since the Marshall Fire rebuild at the end of 2021 Due to substantial regional housing demand combined with stagnant production, home sale prices in Louisville are soaring. The median price of a home in 2023 in Louisville is $896,000, an increase of 132%over the last decade. The City's current land use and zoning policies have also limited the market's ability to deliver more varied and affordable housing options in Louisville. This includes housing at higher densities and income -restricted units that could better serve a spectrum of renters and owners at more accessible price points. These affordability challenges increasingly affect all facets of community life as companies, businesses, government agencies, school districts, and police and fire departments struggle to attract and retain employees due to the area's housing costs. In 2023, a household would need to earn around $209,000 to afford the median home sale price in Louisville. With only 26%of Louisville households earning more than $200,000 annually, 74%of households would not be able to afford the current median home sales price. Moreover, with renter incomes around half of homeowner incomes in Louisville, homeownership issignificantly more out of reach for households that do not already own a home. Additionally, 24%of all Louisville households are considered "cost - Current land use and zoning policies have limited the market's ability to deliver more varied and affordable housing options in Louisville. burdened," spending over 30%of their income on housing costs. This figure jumps to 411/ofor renter households specifically, creating financial instability and increased risk of displacement. To address these concerning trends, Louisville should prioritize growing and diversifying its housing stock to support a vibrant, diverse population and economic vitality. This is achieved with more housing choices across all income levels, including income -restricted units, accessible senior housing, entry-level ownership options like condos, cottages, or townhomes, and more multiunit rental opportunities. While the City has recently adopted some strategies like an Inclusionary Housing Ordinance, more needs to be done if the City wishes to meet its housing goals. Louisville Housing Plan Executive Summary 3 Planning Commission Review Draft 4/1v24 21