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COMPREHENSIVE HOUSING MARKET ANALYSIS As of July 1, 2013U.S. Department of Housing and Urban Development Office of Policy Development and Research Eugene-Springfield, Oregon Lane Douglas Linn Klamath Lincoln Benton Deschute s Coos Polk Marion Pacific Ocean Housing Market Area Market Details Economic Conditions ............... 2 Population and Households ..... 4 Housing Market Trends ............ 6 Data Profile ............................... 9 Summary The Eugene-Springfield Housing Market Area (HMA) consists of Lane County in west-central Oregon. Lane County lies in the Willamette Valley and extends west to the Pacific Ocean. The principal cities of Eugene and Springfield comprise more than 75 percent of the population and economic base of the HMA. The cities of Eugene and Springfield are regional centers for employment, healthcare serv - ices, housing, and education, which includes the University of Oregon and Lane Community College. Economy Economic conditions have improved in the Eugene-Springfield HMA since mid-2012. Nonfarm payrolls increased by 700 jobs, or 0.5 percent, to 141,700 jobs, during the 12 months ending June 2013 compared with no change during the previous 12 months. During the same period, the unemployment rate declined from 9.1 to 8.3 percent, mainly because the labor force con - tracted by 3,625 people, or 2.0 percent. Nonfarm payrolls are expected to in- crease by an average of 0.6 percent a year during the 3-year forecast period. Table DP-1 at the end of this report provides additional employment data. Sales Market The sales housing market in the HMA is currently soft but improving, with an estimated 2-percent vacancy rate. During the 12 months ending June 2013, existing home sales increased 21 percent to 4,075 homes sold, and the average sales price increased 4 per- cent to $210,400. During the forecast period, demand is expected for 900 new homes (Table 1). The 130 homes currently under construction will likely satisfy a portion of that demand. In addition, a portion of the 5,325 other vacant units in the HMA may come back on the market and satisfy some of the demand. Rental Market Rental housing market conditions are currently tight, with an estimated 4-percent vacancy rate. Nearly 19,700 students at the University of Oregon reside off campus in privately owned rental housing, providing a stable source of renter demand. During the forecast period, demand is expected for 1,050 new rental units; the 360 rental units currently under construc- tion will meet a portion of that demand (Table 1). Notes: Total demand represents estimated production necessary to achieve a balanced market at the end of the forecast period. Units under construction as of July 1, 2013. A portion of the estimated 5,325 other vacant units in the HMA will likely satisfy some of the forecast demand. Source: Estimates by analyst Eugene-Springfield HMA Sales Units Rental Units Total demand 900 1,050 Under construction 130 360 Table 1. Housing Demand in the Eugene-Springfield HMA, 3-Year Forecast, July 1, 2013, to July 1, 2014