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Multifamily Rental As shown on Table B-2, approximately 70 percent of Pleasanton renters live in multi-family units (with 24 percent living in properties with 50 or more units). According to RealFacts, Inc., a private data vendor that surveys multi-family rental properties of 50 or more units, there were 3,771 units on the market as of October 2005 (see Table B-6). The average rent for all units is $1,333 and average size is 901 square feet. The majority of rental units are one-bedroom one-bath (39.6 percent) and two-bedroom two-bath (29.5 percent). Rents in Pleasanton have dropped slightly more than 10 percent over the period from 2000 to 2005, with occupancy rates also dropping slowly; from 97.5 percent in 2000 to just under 93 percent in 2005. While this is true for the Pleasanton rental market overall. some product types are in high demand. For example. the average rent for two-bedroom townhomes increased by over 17 percent between 2004 and 2005 (first quarter). However, it is important to note that this overall trend is mirrored across the Bay Area after the economic decline beginning in late 2000. As such, a significant amount of the decline in rents and occupancy in Pleasanton occurred in the first couple of years. Affordable Housing The Growth Management Plan has aided in the construction of many affordable units in Pleasanton, with nearly 28 percent of new construction between 1996 and 2000 consisting of units affordable to very-low, low-, and moderate-income households. The City's Housing Element, adopted by City Council in 2003, reports an inventory of 449 below-market-rate (BMR) units: with the construction of another 396 BMR units for seniors since that time. a total of 845 units are currently available in Pleasanton. Affordability The California Department of Housing and Community Development defines Area Median Incomes on an annual basis. The 2005 median household income for Alameda County was $65,750 for a two-person household and $82,200 for a four-person household. "Very low income" households are defined as earning up to 50 percent of Area Median Income (AMI), "low income" households earning up to 80 percent of AMI. "moderate income households earning up to 120 percent of AMI and "workforce" households are those earning between 120 percent and 200 percent of AMI. Using a series of assumptions about mortgage terms, property tax rates and insurance (see Table 18 for detailed assumptions), BAE calculated affordable home sale prices for the different income levels and household sizes. According to these calculations, those households earning 100 percent of AMI can afford to purchase a house for up to $243.290 (two-person household) or $304,946 (four-person household). Based on the inventory of recent Pleasanton home sales reported in Tables B-3 and B-4, only 0.2 percent of sales were affordable to two-family households earning the area median, and 1.9 percent to four-person households. Because of the high cost of housing in the local market, only when looking at larger households earning 150 percent of AMI or greater does the percent of recent sales affordable climb above 10 percent for a given income level. Based on the $89,800 median household income of Pleasanton workers reported in the 2000 Pleasanton Economic Development Background Report RNAL - January 2006 30