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<br />INTRODUCTION & BACKGROUND
<br />ŷĻ ƌƚĭğƌ ĻĭƚƓƚƒǤ ĬĻƓĻŅźƷƭ ŅƩƚƒ ƷŷĻ /źƷǤƭ ƌƚĭğƷźƚƓ ƚƓ \[ğƉĻ 9ƩźĻ ƚƓ ƷŷĻ ĻƭƷƭźķĻ ƚŅ /ƌĻǝĻƌğƓķ ğƓķ ĻğƭǤ
<br />
<br />access to the interstates, downtown job centers and Cleveland Hopkins International Airport. This makes
<br />Much like the national real estate market over the last decade, the City of Lakewood has experienced a
<br />the community an attractive location for business. There are approximately 1,000 brick and mortar
<br />tremendous rise in housing demand that has resulted in record increases in residential sale and rent
<br />businesses and approximately 4,300 employers overall that provide over 12,000 local jobs.
<br />prices. While there are many benefits to being a desirable, sought after community, there are significant
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<br />challenges that are created in maintaining housing affordability. Understanding and counteracting these
<br />Over 25,000 Lakewoodites leave the community each day to support businesses in the Cleveland
<br />market forces ultimately led to a partnership between the City, the Lincoln Institute of Land Policy (Lincoln
<br />metropolitan area. In fact, Lakewood has the highest outflow of employment (-15,484 employees) of the
<br />Institute), and the Greater Ohio Policy Center (GOPC). The goal of this partnership was to pilot the Lincoln
<br />59 communities located in Cuyahoga County (Cuyahoga County Planning Commission, 2022 Data Book).
<br />Institute LegacySP toolkit in addressing the following guiding question:
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<br />
<br />Inflow / Outflow Job Counts
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<br />The Importance of Housing in Lakewood
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<br />With a U.S. Census estimated population of 50,104 people in 2022 and being the densest city in Ohio, the
<br />City of Lakewood has long prided itself as being an inclusive community that is available to anyone that
<br />chooses to live or do business within the city. From expansive multi-million-dollar homes overlooking the
<br />cliffs of Lake Erie to low-income senior rental efficiency units, the City has a diverse, housing stock.
<br />
<br />Over 91% of the 17,795 parcels in the City are used for residential purposes with 43.9% being owner-
<br />occupied (2017-2021 U.S. Bureau of Census). The Cityƭ ğƩĻğ źƭ ğƦƦƩƚǣźƒğƷĻƌǤ Ў͵ЏЏ ƭƨǒğƩĻ ƒźƌĻƭͲ ĬƩƚƉĻƓ
<br />down by property class type as follows:
<br />
<br />Parcel County by Property Class Type
<br />Source: U.S. Census Bureau, On The Map.
<br />
<br />źƷŷ ƚǝĻƩ ЋАͲЉЉЉ ŷƚǒƭźƓŭ ǒƓźƷƭͲ Ʒŷźƭ ƒğƉĻƭ ŷƚǒƭźƓŭ ƷŷĻ /źƷǤƭ ƌğƩŭĻƭƷ ĻĭƚƓƚƒźĭ ĻƓŭźƓĻͲ ğƓķ ƷŷğƷ ƭƷƩĻƓŭƷŷ
<br />comes from a diversity of housing types and styles at price points to meet the needs of a diverse
<br />community. The majority of the 13,000 one- and two-family homes were built before the depression and
<br />are of a quality that will last for another century if well maintained.
<br />
<br />It is for these and many other reasons that Lakewƚƚķ Ǟğƭ ķĻƭźŭƓğƷĻķ ͻƚƓĻ ƚŅ ƷŷĻ .ĻƭƷ IƚƒĻƷƚǞƓƭ źƓ
<br />hŷźƚͼ ĬǤ Ohio Magazine ğƓķ ğƭ ƷŷĻ ͻ.ĻƭƷ {ǒĬǒƩĬ źƓ /ƌĻǝĻƌğƓķͼ ĬǤ Cleveland SCENE Magazine for five
<br />years straight.
<br />
<br />Current Housing Market in Lakewood
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<br />Over the last decade, the accessibility of Lakewood from a housing standpoint has been changing. The
<br />location of Lakewood coupled with a strong and robust housing stock has created a tremendous amount
<br />of competition for housing in the city. With demand at or near all-time highs, sale prices and volumes
<br />Source: Cuyahoga County Fiscal Office.
<br />1 2
<br />increased dramatically. The Multiple Listing Service Development Picture of Subsidized Households, there were 801 subsidized units in Lakewood in 2021,
<br />(MLS) reported that the single-family home median representing less than 3% of the total housing units in the City. This is down from 1,526 subsidized units
<br />+51.96%
<br />sale price in the City has increased from $135,000 in in 2012, or approximately 6% of all housing units.
<br />2015 to $295,000 in 2022. In the multi-family market,
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<br />the opportunity to sell at record prices often resulted In addition to changing the income diversity of Lakewood, all of these factors are significantly weighing
<br />The amount Lakewood median
<br />in rent rates increasing substantially when leases on naturally occurring affordable housing (NOAH) units that have been the primary supplier of housing
<br />rents increased from January 2020
<br />2
<br />renewed following the transfer of ownership. for lower income households in the Lakewood. NOAH refers to residential rental properties that are
<br />($1021) to January 2023 ($1,553).
<br />According to RentHub, in January 2023 the average affordable yet are unsubsidized by any federal program. Their rents are relatively low compared to the
<br />
<br />median residential rent in Lakewood was $1,553 per regional housing market. The cost to maintain a NOAH unit in the current labor and material pricing
<br />Source: Cleveland.com, RentHub.
<br />month, an increase of 51.96% over January 2020 markets during a time when record or near record sale prices are being realized has resulted in the
<br />when median rent was $1,021. perceived and real loss of many NOAH units in the community.
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<br />
<br />Median Sale Price of Single-Family Homes in Lakewood 2016-2022
<br />Recent and Expected Housing Developments in Lakewood
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<br />Over the past five years, there has been significant investment in residential development in Lakewood.
<br />The $14 million Center North project that converted an antiquated office high-rise to 183 apartment units
<br />was completed in 2018. The $17 million McKinley Place project added 40 townhome units in 2019.
<br />Rockport Townhomes completed 51 townhouse units in a $12 million development in 2018. The Mews,
<br />a $2.5 million nine-unit townhouse complex, was completed in 2020. Also in 2020, the $4 million Marlowe
<br />townhomes project was approved and will include the construction of 16 new units on a former Catholic
<br />school property. The former Marathon gas station on Lake Avenue is also being redeveloped into four,
<br />for sale residential units with first floor master bedrooms at a total project cost of $3 million.
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<br />As a built-out inner ring suburb, the City does not typically have significant acreage to redevelop for new
<br />projects. However, the community is able to see gains when opportunities arise to reposition key real
<br />estate due to strategic partnerships and a clearly articulated Community Vision. In 2019, the City updated
<br />the Affordable Housing Strategy in support of legislation that created a 100%, 15-year property tax
<br />abatement for new development of 100 dwelling units or more that provided affordable housing.
<br />
<br />
<br />Source: Multiple Listing Service.
<br />The City owns 5.7 acres of vacant land in the downtown area that was previously the home of Lakewood
<br />
<br />Hospital. The former hospital was demolished in 2019, and the site is currently being prepared for
<br />These market impacts have been demonstrated in property valuations. The City saw 8% growth in housing
<br />redevelopment. Recently, the City selected CASTO and North Pointe Realty to lead the redevelopment of
<br />value as of the 2015 Cuyahoga County triennial update (versus 2012), the third highest improvement in
<br />this property into a dense, mixed-use project. The estimated project value is over $100 million. Upon
<br />the county. This was followed by a 22.5% increase in the 2018 sexennial reappraisal for residential
<br />approval of the development agreement and plans, construction on the 5.7 acres may begin in 2023 and
<br />property (highest increase in the County) followed by another 27% increase in the 2021 triennial update
<br />will include retail, residential (both market rate and affordable up to 120% of the area median income),
<br />(second highest increase in the county).
<br />and a public plaza.
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<br />The impacts of these increases have resulted in higher property taxes making it difficult for those on low
<br />The former Spitzer Car dealership site at Detroit Avenue and Bunts Avenue has been approved for 120
<br />and/or fixed incomes to remain in their homes. Also, the sale and resulting rental prices have created
<br />market rate and affordable up to 120% area median income apartment units in two separate multi-story
<br />barriers for lower income households from accessiƓŭ ŷƚǒƭźƓŭ źƓ \[ğƉĻǞƚƚķ͵ aĻğƓǞŷźƌĻͲ ƷŷĻ /źƷǤƭ
<br />structures with amenities such as a community room and a fitness center. The estimated construction
<br />applications for housing assistance have continued to decrease year over year as a result of housing
<br />value of the project is $25 million. The developer, Jerome Solove Development Inc., has obtained the
<br />turnover and increased housing costs. Additionally, community partners, such as the Lakewood
<br />necessary approvals from the City Boards and Commissions and has submitted plans to the Building
<br />Community Service Center, are struggling to find housing units in Lakewood capable of supporting very
<br />Department. Construction is scheduled to begin in 2023.
<br />low and extremely low-income households (less than 50% and less than 30% of the area median income,
<br />
<br />respectively).
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<br />2
<br /> NOAH Impact Fund. n.d. What is NOAH? Accessed March 2023. https://noahimpactfund.com/impact-investing-affordable-
<br />Additional evidence of a rapidly changing housing market can be found in the availability of federally
<br />housing-minnesota/what-is-noah/.
<br />subsidized units available in Lakewood. According to the US Department of Housing & Urban
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