HomeMy WebLinkAboutStaff Report 351-05Housing Stock -The housing stock in the City of Palo Alto is characterized by a majority
of single-family homes, a smaller percentage of multi-unit buildings, and relatively low
vacancy rates. There were 26,048 housing units (25,216 were occupied) in Palo Alto in
2000 according to the 2000 U.S. Census. Of these, approximately 59 percent were
detached single-family homes, about 4 percent were attached single-family homes, and
about 35 percent weretmits located in multi-unit buildings. Approximately 30 percent of
the City's housing units were in buildings with five or more units. According to the 2000
U.S. Census, 57.2 percent of all occupied housing units in Palo Alto were owner-
occupied. The remaining 42.8 percent were renter-occupied.
Age
From 1990 to 2000 the age composition of Palo Alto has changed reflecting an out·
migration of young adults and an aging Baby Boomer population as indicated in Table
1.1. Approximately 27% of the Palo Alto population was between 18 and 34 years old in
1990. By 2000, however, that same age group had shrunk to slightly less that 20%. In
1990 only 17.5% of the population was between 45 and 60 years old compared to almost
22% in 2000. In 2000,60% of the population in Palo Alto was over 35 years old with a
median age of 40 compared to the countywide median age of 34. In 1990, however, only
55% of the population in Palo Alto was over 35.
Households -In 2000, there were 25,216 households in the City of Palo Alto and 565,863
households in all of Santa Clara County compared to 24,206 households in Palo Alto and
520,180 households in the county in 1990. As shown below, ABAG estimates that the
total number of households in the City of Palo Alto will reach 27,730 by 2010 (about a 10
percent increase from 2000 to 2010) and 31,560 by 2025 (about a 14 percent increase
from 2010 to 2025) with similar growth projected countywide.
ouse 0 rOJee Ions H h IdP . f
JURISDICTIONAL BOUNDARY 2000 2005 2010 2015 2020 2025
PALO ALTO 25,216 26,240 27,730 29,350 30,450 31,560
. SANTA CLARA COUNTY 565,863 595,550 628,670 660,850 692,440 725,090
ABAG Projections 2005 with US Census 2000 Baseline
The average household size for Palo Alto was 2.32 persons in 2000, which is
considerably low when given the predominately single-family composition of Palo Alto.
The Santa Clara County average was 2.92. As depicted on Chart 1.1, Palo Alto's
household size varies with housing type and density. Higher density multi-family
development has the lowest household size with the traditional single-family detached·
units having the highest. Average household size has increased very slightly in both Palo
Alto and Santa Clara County since 1990, when it was 2.31 and 2.88 respectively. ABAG
projects that Palo Alto will continue to maintain this household size through 2025 with a
slight decrease to 2.29 in 2010 and a slight increase to 2.31 in 2025.
2
1/
T bl 11 A C a e . ~ge omposllon 0 f PlAit P ao 0 If opu a lon, 1990 d 2000 an
Age Category Number of Persons % Number of Persons· % 1990 2000
Under 5 years 2696 4.82% 2970 5.07%
5 to 9 years 2650 4.74% 3563 6.08%
10 to 14 years 2679 4.79% 3721 6.35%
15 to 17 years 1859 3.33% 2152 3.67%·
18 and 19 years 973 1.74% 726 1.24%
20 years 633 1.13% 314 0.54%
21 years 650 1.16% 311 0.53%
22 to 24 years 2283 4.08% 1531 2.61%
25 to 29 years 5158 9.23% 3886 6.63%
30 to 34 years 5377 9.62% 4638 7.91%
35 to 39 years 4947 8.85% 5221 8.91%
40 to 44 years 5010 8.96% 5245 8.95%
45 to 49~ears 4219 7.55% 4871 8.31%
50 to 54 years 3066 5.48% 4490 7.66%
55 to 59 years 2587 4.63% 3405 5.8.1%
60 and 61 years 968 1.73% 1018 1.74%
62 to 64 years 1508 2.70% 1396 2.38%
65 and 69 years 2804 5.02% 2,105 3.59%
70 to 74 years 2092 3.74% 2067 3.53%
75 to 79 years 1602 2.87% 2156 3.68%
80 to 84 years 1179 2.11% 1438 2.45%
85 years and over 960 1.72% 1374 2.34%
Total 55,900 1100.00%1 58,598 1100.00%1
Source: 1990 and 2000 Census
3
Employment -The City of Palo Alto had 86,960 total jobs in 2000 according to ABAG.
ABAG Projections reflect a decrease in total jobs in the City of Palo Alto since 2000
mostly because of the economic downturn and the unique impact it had in the region,
particularly Silicon Valley. ABAG projects Palo Alto to have 81,370 total jobs in 2010
(about a 6.4 percent decrease from 2000 to 2010) and 88,180 total jobs by 2025 (about an
8.4 percent increase from 2010 to 2025), which is only around 1200 more jobs than at the
height of the economic boom in 2000. From 2000 to 2005, it is estimated that Palo Alto
lost approximately 9% or a little over 7,700 jobs. The fluctuations injob growth
projected through 2025 are shown below.
0 rOJec Ions J bP . f
JURISDICTIONAL BOUNDARY 2000 2005 2010 2015 2020 2025
PALO ALTO 86,960 79,250 81,370 82,690 85,170 88,810
SANTA CLARA COUNTY 1,044,130 903,840 992,420 1,077,050 1,161,930 1,249,090
ABAG Projections 2005
The City of Palo Alto had 31,369 employed residents in 2000 according to the U.S.
Census. This would give the City of Palo Alto an average of 1.24 employees per
household in 2000 decreasing slightly from 1.33 workers per household in 1990.
Utilizing the ABAG household projections and the average number of employees per
household in the City, it is projected that Palo Alto currently has 32,643 employed
residents in 2005, and will have 34,496 employed residents in 2010 (about a 10 percent
increase from 2000 to 2010), and 39,261 employed residents for 2025 (about a 14 percent
increase from 2010 to 2025). These projections reflect a continual increase in housing
development but a leveling off of job growth in Palo Alto. Data comparing Palo Alto's
projected employed residents and employees per household to other neighboring cities is
provided below.
Projected Employed Residents
JURISDICTIONAL BOUNDARY' EMP/HH 2000* 2005 2010 2015 2020 2025·
PALO ALTO 1.24 31,369 32,643 34,496 36,512 37,880 39,261
MENLO PARK 1.25 15,429 15,507 15,749 16,342 17,102 17,712
MOUNTAIN VIEW 1.32 41,126 42,308 44,177 46,639 48,337 50,088
SUNNYVALE 1.38 72,756 73,533 74,627 76,787 79,211 82,202.
REDWOOD CITY 1.43 40·,100 41,543 42,815 44,087 46,445 48,889
SANTA CLARA 1.44 55,528 59,843 64,499 67,554 70,423 73,637
SAN JOSE 1.58 436,890 463,745492,271 523,830 556,162 589,806
EAST PALO ALTO 1.63 11,349 12,657 13,649 14,788 16,073 17,066
ABAG Projections 2005 and Census 2000'
5
Jobs/Housing Balance
The concept of a jobs/housing balance is used to examine whether a region can provide
an adequate supply of housing to house its employment base. It indicates whether a
community's housing costs match worker incomes, whether travel distances between
homes and jobs are not excessive and whether the environment and quality of life are
maintained at an acc.eptable level.
The primary functions of an analysis of the relationship between jobs and housing are: 1)
to provide a generalized measure of employment or housing need in areas where the
relationship between these two characteristics is out of balance; and 2) to indicate the
potential severity of such a condition on traffic flows and housing affordability. A region
that has too many jobs relative to its housing supply is likely to experience escalating
housing prices (with a concurrent decline in affordability for the lower-income segments
. of the community) and intensified pressure for additional residential deveJopment.
Conversely, if a region has relatively few jobs in comparison to employed residents, this
may be a good indication that many workers are commuting to jobs located elsewhere. In
both cases, the resulting commuting patterns can lead to traffic congestion and adverse
effects on both local and regional air quality.
Even if a community has a statistical balance between jobs and housing, sizeable levels
of in-commuting and out-commuting are still possible. This occurs primarily where
employment opportunities do not match the skills and educational characteristics of the
local labor force. Intra-regional commuting tends to result in such instances, A
community can also have a balance between jobs and housing, but with a housing stock
that is not affordable to its workers causing commute congestion.
Although the term "jobs/housing balance" implies a relationship between jobs and
housing units within a community, the key relationship is between jobs and the number
of employed residents within a community, because some households have no workers
and many have more than one worker. The balance between popUlation and employment
is typically measured by computing the ratio of jobs to employed residents, with 1.0
indicating a balance between the two variables. A city with an ideal ratio is slightly jobs
rich in terms of employment and resident workers.
Overall the Bay Area has been relatively well balanced in terms of employment and
resident workers; however, there are vast differences in this ratio for individual
corrimunities. Data comparing Palo Alto employed residents per household and jobs per
employed residents to other neighboring cities is provided in Table 1.2. It shows that
Palo Alto, Santa Clara and Menlo Park have an overabundance of jobs in comparison to
their resident workers, whereas East Palo Alto has limited jobs in comparison to its
population. Based on their jobs/housing ratios, Redwood City and Mountain View are
considered well balanced cities. '
6
The jobs/employed resident ratio within Palo Alto in 2000 was a high 1.77, but estimates
indicate a significant decline for 2005 with the ratio at 2.43 and are projected to continue
to decrease consistently through 2015 with a ratio of 2.3 6 for 2010 and 2.26 for 2015.
The jobs/employed resident is then projected to level off and remain at 2.26 for 2025,
according to ABAG projections. This jobslhousing imbalance results in a significant in-
commute of workers to Palo Alto and is directly attributable to severe peak hour
congestion on the regional transportation network.
7
Table 1.2 Jobs/Housing Comparison in Nine Cities in the Area
~urisdiction Employed Jobs per Employed Jobs per
Jobs Households Residents Households Residents per Employed
Household Resident
~ ~
Palo Alto 86,960 25,216 31,369 3.45 1.24 2.77
Menlo Park 36,130 12,387 15,429 2.92 1.25 2.34
Mountain View 65,480 31,242 41,126 2.10 ·1.32 1.59
Sunnyvale 99,290 52,539 72,756 1.89 1.38 1.36
Redwood City 57,980 28,060 40,100 2.07 1.43 ~ 1.45
Santa Clara 131,690. 38,526 55,528 3.42 1.44 2.37
San Jose 417,500 276,598 436,890 1.51 1.58 0.96
East Palo Alto 3,040 6,976 11,349 0.44 1.63 0.27
8
Profile of General Demographic Characteristics for Palo Alto
Total population*
In households
In group quarters
Sex*
Male
Female
Age*
Under 5 years
5 to 19 years
20 to 64 years
64 years and· over
Median age (years)
Race/Ethnicity*
Hispanic or Latino (of any race)
Non Hispanic or Latino
Of the Non Hispanic or Latino
Households By Type*
Total households
Family households (families)
White
Black or African American
American Indian and Alaska Native
Asian
Native Hawaiian and Other Pacific Islander
Some other race
Two or more races
Non-family households (Householder living alone, etc.)
Average household size
Average family size
9
Percent
58,598 100
57,930 98.9
668 1.1
28,671 48.9
29,927 51.1
2,970 5.1
10,162 17.3
36,326 62
9,140 15.6
40.2 x
2,722 4.6
55,876 95.40
42,682 72.8
1,166 2
88 0.2
10,056 17.2
81 0.1
. 183 0.3
1,620 2.8
25,216 100
14,593 57.9
10,623 42.1
2.3 x
2.95 x
Housing Type**
Total: 26,155 100
. 1, detached 15,387 58.83
1, attached 978 3.74
2 474 1.81
30r4 1,254 4.79
5 or more 7,897 30.19
Mobile home 156 0.6
Boat, RV, van, etc. 9 0.03
Housing Tenure*
Occupied housing units 25,216 100
Owner-occupied housing units 14,420 57.2
Renter-occupied housing units 10,796 42.8
Median Value owner occupied unit in 1999 (dollars)** 811,800 x
Median gross rent in 1999 (dollars)** 1,349 x
Average household size of owner-occupied unit 2.55 x
Average household size of renter-occupied unit 1.96 x
Income and Poverty in 1999**
Median household income (dollars) 90,377 x
Median family income (dollars) 117,574 x
Per capita income (dollars) 56,257 x
Individuals in poverty 2,801 4.8
Educational Attainment**
Population 25 and over 43,566 100
No High school diploma 8,732 20
High school graduate 2,428 5.6
Bachelor's degree 13,658 31.4-
Graduate degree or higher 18,748 43
Commuting to Work***
Mean travel time to work (minutes) 21
10