Affordable

The issue of affordable housing looms large, casting shadows across individuals, communities, and the broader economy.

The consequences of failing to enhance housing supply and affordability cannot be overlooked.
Productivity takes a hit when workers cannot afford to live in the community in which they work. People who grow up in the community may not be able to afford a family home to stay, causing the community to age and lose economically active demographic groups. Social services bear the burden as housing costs devour a significant portion of household budgets, pushing individuals to rely on public assistance programs. This loss of population and economic strain negatively impacts crucial areas of the community such as education, neighborhood appeal, and infrastructure development. Furthermore, the absence of affordable housing options results in isolated pockets of poverty or affluence.

Community leaders across the country are experimenting with ways to solve this issue. From expanding ancillary housing provisions to revising residential zoning, let's explore the possibilities.

Pros and Cons of Policies to Increase Housing Supply and Affordability:

· Allow ancillary housing. Embracing accessory dwelling units (ADUs), or “granny flats,” can increase the availability of affordable rental units without imposing significant changes on existing infrastructure. Homeowners stand to benefit from the additional income, while tenants gain access to affordable housing options. However, concerns may emerge regarding neighborhood character, density, or the strain on local infrastructure like parking and utilities. To mitigate these concerns, careful planning and well-designed regulations are essential.

· Reform zoning and land-use. Modifying regulations to permit small multi-family units, such as duplexes, triplexes, or fourplexes, can boost housing density and expand affordable options. It not only fosters mixed-income neighborhoods, but it also optimizes land use. Some residents may be apprehensive about increased density, neighborhood character, and potential effects on property values. Balancing these concerns with community engagement, effective form-based codes, and enforcement of property maintenance can pave the way for successful implementation.

· Target financial incentives. Providing developers with tax breaks or subsidies for constructing affordable housing can act as a catalyst for its development. By offsetting the higher costs associated with such projects, these measures encourage developers to incorporate affordable units, thereby narrowing the affordability gap. However, caution must be exercised to avoid potential fiscal strain and resource allocation concerns. Governments need to carefully balance budgets and ensure the long-term sustainability of these incentives, guarding against the risk of diverting excessive resources from other critical public services and programs. Thoughtful planning, evaluation, and prioritization are paramount for determining the optimal allocation of resources and the viability of these measures in the long run.

· Offer tax-reduction incentives for responsible landlords. Providing tax-reduction incentives to landlords who maintain their properties well and follow best practices can encourage responsible property management. Landlords may see reduced tax burden as a benefit and might be more inclined to invest in property maintenance and upgrades. In addition, taxes charged to landlords are passed through to tenants, so higher taxes drive higher rent. Reducing the tax for responsible landlords can help reduce housing costs while maintaining or enhancing the character of neighborhoods.

· Collaborate to provide transportation options. There are numerous examples of communities that collaborate on these types of issues. Examples include shared bussing/expanded routes and connections, implementation of a trolley line, ride-sharing initiatives, light rail, and promotion of private solutions such as Lyft, Uber, and even bicycle rental. By providing transportation options between communities, residents from areas with limited affordable housing can access housing options in the neighboring community. This expands the pool of available affordable housing, providing more choices for those seeking affordable homes. This also helps local employers tap a local talent pool.

To tackle these pressing challenges, governments must streamline regulations, promote mixed-income neighborhoods, incentivize landlords and developers to prioritize affordable housing, and invest in transportation and urban planning. By implementing these strategies, we can forge a path towards a more inclusive and economically prosperous society.

Sources:

Smith, N. (2002). New globalism, new urbanism: gentrification as global urban strategy. Antipode, 34(3), 427-450.
Newman, S. J., & Wyly, E. K. (2006). The right to stay put, revisited: Gentrification and resistance to displacement in New York City. Urban Studies, 43(1), 23-57.
South, S. J., & Crowder, K. D. (1997). Escaping distressed neighborhoods: Individual, community, and metropolitan influences. American Journal of Sociology, 102(4), 1040-1084.
Florida, R. (2017). The New Urban Crisis: How Our Cities Are Increasing Inequality, Deepening Segregation, and Failing the Middle Class—and What We Can Do About It. Basic Books.
Joint Center for Housing Studies of Harvard University. (2021). America’s Rental Housing 2021. Retrieved from https://www.jchs.harvard.edu/americas-rental-housing

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Cobalt Community Research is a national 501c3 nonprofit, non-partisan coalition that helps local governments, schools and membership organizations measure, benchmark, and affordably engage communities through high-quality metrics, mobile geofencing data, surveys, and dynamic population segmentation. Cobalt combines big data with local insights to help organizations thrive as changes emerge in the economic, demographic and social landscape. Explore how we can help.