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Council accepts Concord Group market study saying Needles could demand 50–60 new housing units a year

2662819 · February 27, 2025
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Summary

Consultant presentation concluded Needles shows demand for roughly 50–60 housing units per year—concentrated among higher‑income households and a mix of ownership and rental—council accepted the study and agreed staff will use it to pursue developers and funding.

The city accepted a housing market demand assessment from the Concord Group that projected underlying demand of roughly 50–60 new housing units a year in Needles, with a ten‑year demand estimate of about 530 units. The consultant said demand would split to about 15–20 rental units and 35–40 for sale units per year, and that a significant portion of demand is at higher income levels.

A principal from the Concord Group presented the study and explained methodology: analysts used census data, ESRI demographic products and regional economic indicators to estimate household formation and demand across income bands. The report found roughly 60% of the city’s housing stock was built before 1980, creating demand for newer product that could free up older units for lower‑income households.

"We see underlying demand for between 50 and 60 new housing units per year in the city," the Concord Group presenter said. The consultant also described a 10‑year projection that showed demand for about 160 rental units and about 370 ownership units under different product types, from garden‑style rental to single‑family homes priced above current market offerings.

Councilors asked about income sources for the projected demand and whether growth would come from local wage gains or in‑migration. The consultant said figures are census and ESRI based and that the data show growth concentrated in higher income brackets even while some lower‑income households decline in number; the presenter noted demographers sometimes undercount possible growth where permitting has been historically low.

Council accepted the study by roll call and directed staff to use the assessment in developer outreach, funding applications and upcoming budget and planning efforts. Several council members emphasized the need to pair market findings with incentives and regulatory adjustments to attract builders and to consider options such as accessory dwelling units, townhomes and small rental projects that are financially viable in Needles.