Housing Question The COVID-19 has revealed the depths of Sarasota's housing crisis - when you're priced out of the market, where do you go?
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The
Housing
Question
COVID-19 has revealed the depths of
Sarasota’s housing crisis — when you’re
priced out of the market, where do you go?
March 2022
Report by
Charles & Margery Barancik Foundation
and Gulf Coast Community Foundation
THE FUNDING PROBLEM PANDEMIC SWELLS
DEMAND FOR HOUSING
Sarasota County has not kept pace with the
demand for workforce housing. Government Enter the COVID-19 pandemic. Inventory is at an all-time
has often waived large workforce housing Demand for housing in Florida
components of major developments despite a
low, with only about 41,000
soared even as federal moratoriums
growing need for decades. Though there are on evictions cut cash flow for many homes for sale across
local workforce housing plans and a plethora of the nation’s landlords. People the state. The statewide
of best practices available, local governments fleeing concentrated life in big
have made no concerted effort to incentivize northern cities and early retirees
median sales price in
developers to produce this vital resource. deciding to check out in the face $424,000, up 22% year over
Now the county and region find themselves of the pandemic started a housing
year, according to Florida
with a crisis in both rental housing and single- rush in Florida.
family availability. Chamber Foundation.
In January, the median price for
At the state level, one of the mainstay existing single-family homes in Demand remains extremely
sources of workforce housing – the Sadowski Sarasota County hit $464,500, up strong, evidenced by the fact that
Affordable Housing Trust Fund, which is 37% year over year, and $480,000 condominiums are selling in all-cash
collected through the state’s doc stamps in Manatee, up 30% year over deals 50% of the time, while homes
– has been swept of funds for years to be year. The peak during the 2000s are still selling for all cash 30% of
used for other state needs. The Legislature housing bubble was $360,000 in the time.
memorialized that in 2021 by setting the fund the Sarasota-Bradenton market,
at 50% of what it used to be. Years of little or according to Sarasota-Manatee
no funding has left Florida and its cities and Association of Realtors data.
counties with a gigantic deficit in supply, one
that could arguably take decades to correct
even with a large lift now.
2022 Affordable Housing Report | Page 2
THE RENT CONUNDRUM FAMILIES ON THE BRINK
the ALICE family would pay nearly And of those units at fair market
The median rental for a 2-bedroom Because of this trend, the Suncoast
43% of their annual income on rent, 50% of them are in a price
unit is now $2,021 per month in Partnership to End Homelessness
housing. range of $1,875 per month or
Sarasota County. recently has experienced an influx
higher, the partnership reported.
The Tampa Bay area recently of families entering homelessness:
That adds up to $24,252 per year --
became the fastest-growing 59% of families calling for assistance Because of the dearth of available
and coincidentally matches almost
rental market in the country, were new families in June 2021. By units, housing placements by the
dollar for dollar the federal poverty
with rates rising 15.6% in the first November and December, those Suncoast Partnership have dropped
line for a family of four: $24,250.
half of 2021, more than triple numbers spiked to 79% and 76%, 32% since 2019 (966 permanent
the normal rental rate increase. respectively. housing exits in fiscal year 2019;
Looking at rental costs
Rent in the North Port-Sarasota- 811 permanent housing exits in
another way. There are Bradenton metropolitan areas has
The partnership’s housing FY2020; 657 permanent housing
60,000 households in increased 46% since November locators have documented exits in FY2021). This is also a
2020, according to data from function of the rental markets and
Sarasota County that pay that 77% of available units unprecedented real estate value, the
Apartmentlist.com.
more than 30% of their in Sarasota County are partnership reported.
In addition to the increase in the
income on housing. There above fair market rent.
rental market prices, many landlords
are 20,000 that spend more have sold existing affordable
than 50%. housing units because of the loss of
revenue brought about by eviction
The United Way classifies those folks moratoriums and the high value of
as ALICE families, or Asset Limited their properties. Other landlords
Income Constrained Employed. That are simply not renewing leases
is a family of four who make $56,520 or raising rents up to $1,000 per
per year. Using that two-bedroom month, pricing existing households
apartment annual rent of $24,252, out of their homes.
2022 Affordable Housing Report | Page 3 2022 Affordable Housing Report | Page 4
WORK UNDERWAY
A coalition of foundations and
community and business leaders
convinced the Sarasota County
Commission to add $20 million to
a $5 million allocation of American
Rescue Plan Act dollars for workforce
housing. That money would be used
for leveraging $137 million in projects
creating 623 workforce housing units.
2022 Affordable Housing Report | Page 5 2022 Affordable Housing Report | Page 6
BLUEPRINT RECOMMENDATIONS
THE FUTURE Little has changed in the 1. Encourage more flexibility in housing types to promote infill
intervening 41 months, other development.
Imagine the work that could than the hole has gotten deeper.
2. Allow accessory dwelling units in all single-family zones.
be accomplished – the families The original report even cites
saved from homelessness and communities with expensive 3. Increase Sadowski Funding and augment with local funds.
the mental well-being of workers housing and a lack of workforce
4. Repurpose vacant commercial, retail, and industrial properties.
who no longer would have to housing losing positions to less
worry about meeting their rent expensive markets in the region. 5. Adopt a surplus lands policy that maximizes the use of surplus
requirements – if there were a That at least is no longer true, lands for affordable housing.
recurring funding source that because many people who cannot 6. Implement inclusionary housing policy/workforce housing
could support such a workforce afford housing are leaving the overlay districts.
housing lift each year. It would area altogether.
not be sufficient to meet all the 7. Reinvigorate, reconstitute, or otherwise support a Community
demand for housing, but it would The report states: “The key to Land Trust.
ease the problem. success will be local elected
leadership committed to ensuring
8. Use a complement of code enforcement and rehabilitation
that workforce housing is provided
to turn dilapidated and abandoned housing into workforce
In October 2018, the housing.
in Sarasota County and the City of
Florida Housing Coalition Sarasota.” 9. Provide NIMBY/fair housing training to governmental staff.
published a Blueprint for
That also remains true, though 10. Collaborate with the school board and other large employers.
Workforce Housing for leaders have only seriously
11. Develop an employer-assisted housing program.
the city of Sarasota and embraced this need within recent
months, and it remains to be 12. Create an affordable housing ombudsman position within the
Sarasota County. seen how deep their commitment Office of Housing and Community Development.
actually is.
2022 Affordable Housing Report | Page 7 2022 Affordable Housing Report | Page 8
The Charles and Margery Barancik family has long believed in the power of philanthropy to shape our world and enrich the lives of all people. It was the expression of this belief that led them in 2014 to establish Charles & Margery Barancik Foundation—a private, family foundation located in Sarasota, Florida. Barancik Foundation creates initiatives and awards grants in the areas of education, humanitarian causes, arts and culture, the environment, and medical research. For more information, visit BarancikFoundation.org. For more than 25 years, together with our donors, Gulf Coast Community Foundation has transformed our region through bold and proactive philanthropy. Together, we have invested over $430 million in grants in the areas of health and human services, civic and economic development, education, arts and culture, and the environment. Learn more at GulfCoastCF.org.
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