East Palo Alto, CA Housing Needs Assessments
City of East Palo Alto, CA
The City of East Palo Alto commissioned BAE to prepare Housing Needs Assessments for three proposed development projects in the City, which consist of a private elementary school and two large-scale office projects.
While East Palo Alto has historically offered a more affordable housing market than most surrounding jurisdictions, large housing cost increases throughout the region have impacted housing costs in East Palo Alto as well, making rents and home sale prices in the City increasingly unaffordable to lower-income workers and residents.
As new development brings new workers to East Palo Alto, City staff, leadership, and community groups sought an understanding of the impact that this development would have on housing demand and housing costs, as well as whether this demand could lead to the displacement of existing households.
To date, BAE has completed Housing Needs Assessments for the school and one of the two office developments. For each project, BAE analyzed the employment by income level from the project itself to determine the workforce housing needs directly attributable to the project. In addition, the analyses estimated the employment multiplier effects from each project using the IMPLAN input-output model and Public Use Microdata Sample data from the American Community Survey from the U.S. Census, to estimate the number of worker households by income level due to each project’s indirect and induced employment effects.
The Assessments also included an in-depth evaluation of local housing market conditions, recent housing market trends, and planned development projects to assess the capacity of the local market to absorb the total housing demand associated with each project. BAE also conducted a detailed analysis of local demographic and housing trends, identifying potential risk factors for displacement.