Population: 44,686
Households: 14,854
Employed Residents: 23,178
Housing Units: 15,233
Source: ACS 2019 5 year estimates

Jobs: 16,913
Employed Residents per Household: 1.48
Jobs per Employed Resident: 0.80
Jobs-Housing Balance Ratio: 1.17
Source: ACS 2017 5 year estimates

Low-Wage Jobs-Housing Fit Ratio: 7.36
Source: 2015 LEHD Origin-Destination Employment Statistics

For more information about the jobs/housing calculations visit our jobs and housing page.

2019 Homeless Count: 114 Persons, all unsheltered (-71% from 2017)
Source: 2019 Homeless Point In Time Count

Average Monthly Rent: $2,644
Rent Change Year over Year: -11%
Source: Rent Cafe, April 2021

Morgan Hill’s 2020 Affordable Housing Inventory
Extremely Low-IncomeVery Low-IncomeLow-IncomeModerate IncomeTotal UnitsAffordable 5 of Total Housing Stock
23212165393.5%

SOURCE:  City staff.  The percentage of the total housing stock in the community is based on the California Department of Finance’s Table E-5.

See more information on our affordable housing assets page.

Morgan Hill Development Pipeline as of January 2021
Applications SubmittedApproved ProjectsUnder ConstructionTotal
Anticipated New Jobs20171973993
New Housing Units767522381327

Pipeline as of January 2021. Information reported from City of Morgan Hill.  The employment projections are derived by applying square-footage-per-employee factors to building floor areas by four building types: 250 square feet for office/R&D; 1,500 feet for hotels; 550 feet for retail/restaurant; and 2,500 feet for manufacturing/warehouse. All are figures applied to a building’s gross square footage.

2014-2022 Regional Housing Needs Allocation 

Every eight years, the Regional Housing Needs Allocation (RHNA) process is used to assign each city and county in California their “fair share” of new housing units to build. These units of housing are intended to accommodate existing need and projected growth in the region. The RHNA process is critical because it requires all cities and counties to plan for the housing needs of their residents, regardless of income, in an effort to plan for future growth and ease the Bay Area’s acute housing crisis. 

Many cities and counties regularly fall short of their RHNA targets, as the Bay Area’s housing crisis continues to grow. Each spring, jurisdictions are required to provide an Annual Progress Report to show how effective their efforts have been in achieving housing development targets by income level. The table below shows Morgan Hill’s progress.

Morgan Hill’s 2015-2022 RHNA Permit Progress as of 12/2020
Affordability LevelRHNA TargetPermits IssuedProgress to Target
Very Low Income2738029%
Low Income154190123%
Moderate Income185404218%
Above Moderate Income3161431453%
Total9282105227%

Permitting progress as of December 2020. Source: HCD 2020 Housing Element Annual Progress Report Permit Summary.

Accessory Dwelling Units (ADUs)

All California cities and counties are mandated to permit ADUs and JADUs according to state law. The Legislature further updated ADU and JADU law effective January 1, 2021 to clarify and improve various provisions in order to promote the development of ADUs and junior accessory dwelling units (JADUs). These include allowing ADUs and JADUs to be built concurrently with a single-family dwelling, opening areas where ADUs can be created to include all zoning districts that allow single-family and multifamily uses, modifying fees from utilities such as special districts and water corporations, limited exemptions or reductions in impact fees, and reduced parking requirements. Please see the Accessory Dwelling Unit Handbook (PDF) for more information for local government bodies and homeowners interested in adding an ADU or JADU to their property. Our partner, the Housing Trust of Silicon Valley has kicked-off a major initiative, Small Homes, Big Impact to support ADU development throughout Santa Clara County, including outreach and education, and potential new financing mechanisms.

Morgan Hill ADUs Permitted: 2017 – 2020
2017201820192020Total% of Countywide Total
1815315512.3

Affordable Housing Policies

Housing Element Policies

Housing development in Morgan Hill is governed by the Residential Development Control System (RDCS), a 1977 voter-approved initiative that limits the number of units approved annually through a competitive process.  It has historically weaved in social equity through a developer competition that has prioritized affordable housing via a 20% set aside.  In 2017, voters approved Measure S, which established a maximum of 215 building permits to be allocated per year.  The Measure took effect on March 1st 2017, and projects must compete two years in advance of construction.

The Housing Element of Morgan Hill’s General Plan includes a number of general policies that support affordable housing, including pursuing opportunities for land acquisition and supporting nonprofit housing developers and other partners in seeking financing for affordable housing development.  The City has a policy that provides local residents a preference under its housing programs.

Inclusionary Housing

In 2018, Morgan Hill updated their Inclusionary Ordinance to reflect the following:

Downtown:

  • For Sale: 10% of units need to be affordable to moderate income households
  • Rental: 10% of units need to be made affordable to Low and Very Low Income(VLI) Households and half  need to be offered exclusively to VLI

Rest of City:

  • For Sale: 15% of units need to be affordable to moderate income households
  • Rental: 15% of units need to be made affordable to Low and Very Low Income(VLI) Households and half  need to be offered exclusively to VLI

Additional Resources

Photo: Bella Terra, EAH Housing

 
MORE NEWS