Excerpted from Housing Policy Debate
On April 11, 2017, the journal Housing Policy Debate published an article by CURS Director Bill Rohe, giving his views on the current U.S. housing crisis. Below is an short summary of the article. The full article can be accessed here.
The United States is experiencing a housing crisis unlike anything we have seen for decades. Since the 2008 recession, the national homeownership rate has plummeted to a 50-year low, largely because of the spike in foreclosures, short sales and deeds in lieu of foreclosures, as well as tight mortgage credit and delayed household formation.
On the rental front, vacancy rates have fallen over the past 5 years, leading to sharp increases in rents. In the past year alone, nominal rents have increased by 3.6%, whereas incomes for low- and modest-income households have been relatively flat (State of the Nation’s Housing, 2016).
This housing affordability crisis is exacting great costs both from individuals and from society. Individual costs include:
- a lack of funds for food and other essential needs;
- increased housing instability, which interferes with employment among adults and education among children; and
- poor housing conditions leading to health problems and to homelessness.
The societal impacts include increases in public expenditure to support homeless households, lost productivity and a less-educated workforce hampering the country’s ability to compete in the global marketplace. Federal policy has a crucial role to play in addressing the housing affordability crisis and its negative consequences. It needs to address the cost and the availability of both homeownership and rental housing, striking a reasonable balance between the two.
To read the rest of this article and policy recommendations, please go to Housing Policy Debate.
WRAL TV News: A new UNC study indicates that rising rents and stagnant wages have created a rental housing crisis in North Carolina. While it’s recommended not to spend more than 30 percent of one’s income on rental housing, the study shows that 400,000 North Carolinians are spending nearly 50 percent of their income on rent.
Watch the report here.
Many North Carolina communities are experiencing an affordable housing crisis, which is particularly severe for those who rent. This report examines severe housing cost burden, overcrowding and substandard housing conditions among renters in the state. It identifies areas in our state with extreme housing needs, defined as having relatively high levels of at least two of the following three indicators: severe housing cost burden, overcrowding and the lack of complete kitchen and bathroom facilities.
In addition to the report, an interactive map of Extreme Housing Conditions in North Carolina can be found by clicking on the map above.
Among the report’s findings:
- Census tracts with extreme housing conditions were found in 46 of North Carolina’s 100 counties and in all three geographic regions.
- As of 2013, more than 377,000, or 28.2 percent, of the State’s rental households experienced severe cost burdens, were overcrowded or lacked critical facilities.
- The number of severely cost-burdened households increased by 53,737 or 22.5 percent between 2008 and 2013.
- In eight census tracts, over 60 percent of renter households were severely cost burdened, with the highest percentage being 77.4 percent in a Wake County tract.
- The number of overcrowded households increased by 20,437, or 45.4 percent, between 2008 and 2013.
- In six census tracts, over 30 percent of renter households were overcrowded, with the highest rate being 53 percent in a Wake County tract.
The report’s findings indicate that additional efforts are needed to improve housing conditions, reduce overcrowding, and lessen the housing cost burdens of renters in North Carolina. Without decent and affordable housing it is difficult for many families in the state to lead happy and productive lives. These housing problems also increase public health care costs and reliance on social support programs and lower productivity. The combined efforts of state and local governments are needed to reverse the negative trends in housing affordability and overcrowding and improve the quality of life and economic productivity of North Carolinians.
The executive summary can be found here and the full report can be found here.
In addition to the report, an interactive map for Extreme Housing Conditions in North Carolina can be found here.
The Center for Urban & Regional Studies has released the Boulevard Homes Final Report: Changing Communities, Transforming Lives. Short for “Housing Opportunities for People Everywhere,” the U.S. Department of Housing and Urban Development’s HOPE VI program funded the demolition and redevelopment of distressed public housing developments throughout the country. Between 1994 and 2010, over 250 public housing developments were redeveloped with support from the HOPE VI program. The Charlotte Housing Authority received a total of five HOPE VI grants during this time.
The most recent HOPE VI grant awarded to the CHA was for the razing and redevelopment of Boulevard Homes, which was physically obsolescent and plagued with crime. The newly constructed development—called the Renaissance—includes 274 apartments reserved for low-income families and 60 market rate units. The Renaissance also includes a K-8 public school (currently under construction) and an early childhood development center that is in the planning stages. The Renaissance West Community Initiative, a non-profit initially funded by the CHA, is coordinating the educational and social services being provided in the development.
Over the past five years, CURS has been evaluating this redevelopment project, with a particular focus on the experience of those who were relocated from the original development. The CHA provided residents with case managers and supportive services while the Renaissance was under construction. These case managers helped residents set self-sufficiency goals, and connected families with services like job training, educational opportunities, and health care assistance.
Building on our previous evaluation reports, this final report provides an overview of the Boulevard Homes redevelopment process and its outcomes. It describes and assesses the redevelopment process, including the design of the new development, the relocation of former residents, the attitudes of the former residents toward the relocation process and outcomes, the supportive services offered to relocatees, and the redevelopment’s impacts on the surrounding neighborhood and much more.
Some of the key findings are that:
- The CHA used the financial flexibility provided through the Moving to Work demonstration to shift over $14,000,000 into developing the Renaissance and additional off-site replacement housing. Additional CHA funding also allowed the authority to offer enhanced supportive services to the residents who were relocated from the original development.
- A majority of former Boulevard Homes residents relocated to privately-owned apartments using Housing Choice Vouchers rather than moving to other CHA public housing developments. A large majority of the relocated residents were very satisfied with the relocation process, and with their new housing and neighborhoods. This, to some extent, explains the relatively small number of original tenants who moved back to the redeveloped site.
- Over time, the intensity of case management services offered to residents decreased as the budget for those services became tight. The most commonly-accessed services for non-elderly residents were occupational training and childcare subsidies, while health care assistance was the most frequently used by for elderly households.
- The work efforts of the relocated residents substantially increased during the redevelopment process. According to data collected by case managers, the percent of non-elderly/disabled residents working rose from 33% in October 2010, close to the beginning of the project, to 67% in June 2015, close to the end of the project.
- While it is very early to assess the development’s impacts on the surrounding neighborhood, we note that the neighborhood surrounding the Renaissance has experienced a recent significant increase in home lending activity. In addition, CHA and developer staff believe that conditions are improving in the neighborhood, with a new police station and social service center slated to open nearby soon.
To read or download the full report, please click here.
CURS Director and Boshamer Distinguished Professor of City & Regional Planning Bill Rohe will participate in a #TalkHousing Twitter talk with other experts on the impacts of work requirements on employment and eviction among public housing residents. The talk will be hosted by How Housing Matters on Friday, January 15 from 1-2p.m. ET. To access the chat, follow the hashtag or check the @Housing360 timeline. Professor Rohe will be participating from CURS’ Twitter handle, @UNCCURS.
How Housing Matters is run by Urban Land Institute Terwilliger Center for Housing and supported by the MacArthur Foundation.
Building on our report cataloging activities implemented by housing authorities participating in the Moving to Work demonstration (MTW), “Innovation in US public housing: a critique of the Moving to Work demonstration” summarizes both the policy context of Moving to Work and criticisms of the demonstration. It also sets an agenda for current debates about extending and expanding the program.
Enacted in 1996, MTW allows participating housing authorities two flexibilities. First, they may waive federal regulations, like how much to charge for rent. Second, they may combine various federal funding sources into a single, flexible fund. Currently, 39 housing authorities are participating in the program.