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And yet, the market for housing has changed and will continue to change significantly. To begin with, the older segment of our population will grow at a very rapid rate in the next decades as the "Baby Boomer" generation enters retirement. The number of Americans 65 years or older is expected to climb from 31.8 million in 1991 to over 66 million in 2030. Many of these "empty nesters" don't need, and often don't want, large isolated suburban homes. The profile of new households formed is also changing significantly in the US While the housing industry continues to build homes for young married couples with children, the reality is that less than 35 percent of the new households formed between 1995 and 2000 consisted of married couples with children. In fact, more than 40 percent of the new households formed were singles or unrelated individuals living together. Another 22 % were single parents with children. At the same time, the emphasis on low-density suburban development has priced many young people out of the housing market. The cost of owning a single-family home has soared in many places -- forcing many young people to delay or abandon efforts to purchase a home. In California, only 31 percent of families can afford a median-priced single family home; this figure drops to 16 percent in the San Francisco Bay Area! The construction of affordable housing will be one of our biggest challenges in the coming decades. For these reasons, more people are considering, and will need to consider, more resource-efficient compact housing. Aside from being less expensive, compact residential development benefits communities by reducing vehicle trips, encouraging biking and walking, and supporting public transit. A 1990 survey by the Sierra Club's John Holtzclaw, found that residential density is the "most effective urban variable in predicting auto ownership and driving." For every doubling of neighborhood density, vehicle miles traveled (VMT) are reduced by 20-30%. When people live at higher densities, they are more likely to walk, shop locally, and get to know their neighbors, fostering a sense of community and creating safer neighborhoods. Yet, while compact development is central to the notion of a livable and sustainable community, it cannot be addressed without simultaneously looking at the quality of design. High-quality design provides urban amenities, affordable housing, access to transit, proximity to work, schools, parks and open space, cafes, shops, and more. Research by Tim Iglesias at the Nonprofit Housing Association of Northern California shows that high quality, compact, affordable housing increases adjacent property values, decreases crime, and greatly increases a sense of community. In many cities across the country, we are seeing an increasing number of single individuals and families who are beginning to trade in the suburban lifestyle for the benefits of affordable housing, compact urban development, and a lively urban experience. Second units - also know as accessory units or "granny flats" - are another means of achieving more compact development and providing affordable housing. Second units can be built in the backyard or above the garage and can be rented to students, the elderly or single individuals. An accessory unit provides additional income to the homeowner and can help pay the mortgage. For example, Aggie Village in Davis, CA used accessory units to achieve 16.8 units/acre. The second units are either rented to students from the nearby university or used as office space. Resources
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