3.4 Step 4: Determine the types of housing <br />that are likely to be affordable to the <br />projected population based on household <br />income <br />Step four of the housing needs assessment results in an estimate of need <br />for housing by income and housing type. This requires some estimate of <br />the income distribution of future households in the community. ECO <br />developed these estimates based on estimated incomes of households that <br />live in Eugene. The analysis is set out in this section of the HNA. The key <br />finding from this analysis is that an affordability gap exists for lower <br />income households. As a result, Eugene's needed density is higher than <br />the achieved density because Eugene's needed mix is for more affordable <br />housing types (less single-family detached and more of other housing <br />types). <br />3.4.1 Income and affordability of housing <br />This section summarizes regional and local income and housing cost <br />trends. Income is one of the key determinants in housing choice and <br />households' ability to afford housing. A review of historical income and <br />housing price trends provides insights into the local and regional housing <br />markets. <br />Page 76 ECONorthwest Part 11 - Eugene Housing Needs Analysis <br />