2019-2024 Economic Development Strategic Plan

All Firms - All Sectors (NAICS) Survey of Business Owners (2012)

Other services (except public administration) 16%

Agriculture, forestry, fishing and hunting 3%

Arts, entertainment, and recreation 4% Accommodation and food services 5%

Construction 15%

Manufacturing 2%

Wholesale trade 2%

Health care and social assistance 12%

Retail trade 13%

Administrative and support and waste management and remediation services 3%

Transportation and warehousing 6%

Finance and insurance 3%

Professional, scientific, and technical services 2%

Real estate and rental and leasing 14%

HOUSING DATA One of the challenges plaguing communities in the Midwest is housing. Most communities have roughly the same size housing inventory as they did decades ago and new housing options for varying levels of income aren’t readily available. This is significant because of its influence on attracting workers (returning young residents) to those communities. While Spencer has enacted an aggressive housing incentive in the last few years (results in new single family and multiple family units), it is important to note that data from the 2016 American Community Survey shows that over 75% of Spencer’s housing units were built prior to 1980 and the City’s 2017 comprehensive plan posits that 35 new housing units per year are needed between now and 2030 for the City to meet it’s projected growth potential. Further, to increase population consistent with the Iowa Lakes Corridor goal of 5% over five years (2017 to 2021), Assuming a population of 11,172 at the start of 2017 (according to the 2016 American Community Survey 5-year estimates), an increase in population of 5% would see Spencer 11,730 residents by the end of 2021 or a difference of 558 people. At 2.19 persons per householder (using household size from the City’s Comprehensive Plan) Spencer would need 254 additional housing units to accommodate the increase (assuming vacancy rates remain consistent over time). Because development and construction of new housing can take between 9 and 18 months to complete, the City would need to see 63 new units applied for in the years 2017, 2018, 2019 and 2020 to accommodate the increased population. Finally, it is important to acknowledge that housing can only work to attract new workers (and increase population) if wages are in-line with available housing options. Assuming a two-income household with one employed in manufacturing at median wage (approximately $16.50/hour or $32,320/year) and one employed in retail part-time at 28 hours a week (approximately $10.78/hour or $15,695/year), the combined income of $48,015 limits a mortgage to around $120,000 or rents in the range of $650 to $950 a month.

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