The Link Between Local Comprehensive Plans and Housing Affordability: A Comparative Study of the Atlanta and Detroit Metropolitan Areas

Problem, research strategy, and findings: I question whether the strength of affordable housing policies in local comprehensive plans is associated with better affordable housing outcomes, which I measure as a decrease in the share of low-income households who spend more than 30% of their income for housing, otherwise known as cost-burdened households. I first assess the strength of affordable housing policies in 58 local comprehensive plans, counting the number of—and degree of coercion in—those affordable housing policies. I then analyze the relationship between the strength of affordable housing policies and changes in the share of low-income households with cost burden. I find that the strength of affordable housing policies is higher in the Atlanta (GA) metropolitan area than in the Detroit (MI) metropolitan area. I also find that the strength of affordable housing policies is positively associated with a decrease in the share of low-income households paying more than 30% of their income for housing in the Atlanta metropolitan area. I do not find a comparable relationship between plan strength and housing outcomes in the Detroit metropolitan area. I also find that the state role matters: Georgia provides more support and guidance for local comprehensive planning, and for affordable housing policies in those plans, than does Michigan.

Takeaway for practice: Planners should continually promote local comprehensive plans that include more and stronger affordable housing policies and advocate for greater state support for comprehensive planning and affordable housing policies because these appear to lead to a greater likelihood of implementing stronger plans.     

Achieving Regional Housing Planning Objectives: Directing Affordable Housing to Jobs-Rich Neighborhoods in the San Francisco Bay Area

Problem, research strategy, and findings: Low-income households face affordability issues and are often forced to live in areas with limited job access and inadequate transportation. Local communities exacerbate these problems through exclusionary zoning. We study the impact of the Association of Bay Area Governments (ABAG) change in allocation formula under California’s affordable housing mandate. The old policy followed a fair share strategy, whereas the new policy requires local jurisdictions to locate mandated affordable housing units in jobs-rich areas. We compare affordable housing produced in the region before and after ABAG adopted the jobs-housing policy; we also compare the new patterns to the location of market-rate housing and to the experiences of San Diego (CA) and Los Angeles (CA), both of which retain fair share allocation. We do not control for variables that may have affected affordable housing location. ABAG’s policy shift is associated with a 104% improvement in the balance of housing and jobs at the local level; affordable housing units are more likely than market-rate housing to locate in jobs-rich areas, which may indicate that localities prioritize affordable housing. We also find that more affordable housing locates in such areas in the San Francisco Bay Area (CA) than in San Diego or Los Angeles.

Takeaway for practice: A voluntary regional government in a state with mandatory affordable housing requirements can affect the production and distribution of affordable housing. A total of 25 U.S. states require localities to include affordable housing elements in their comprehensive plans; we suggest that regional and local planners use these opportunities to meet multiple policy goals by directing affordable housing to jobs-rich neighborhoods.     

Impacts of contrasting housing policies on low-income households in Australia and the Netherlands

This paper aims to contribute to the debate in comparative housing studies about the significance of national housing policies by considering what can be learnt from analysing the consequences of different policy paths. In particular, the paper looks at the evidence of the long-run impacts of different housing strategies adopted to assist lower-income households in Australia and the Netherlands, using housing affordability as a measure of their impact. Australia is an example of a country that has promoted mass home ownership across the income distribution supplemented by a very small public housing system. In contrast, the Netherlands has relied more on a large and diversified social housing sector. The comparative analysis shows that there are many similarities in the patterns of affordability among low-income households in the two countries despite the use of different policy means. In the past, both countries had good success providing secure and affordable housing for poorer households. Now, lower-income households are experiencing greater affordability problems that are linked to societal changes and the retrenchment of government housing assistance in both cases. However, the study also finds that affordability problems among lower-income households are worse in Australia because of the greater reliance on private housing in that country.     

Stability,advocacy and voice: opportunities and challenges in resident-led preservation of affordable housing

Abstract

The role of safe, stable affordable housing has been found to play an outsized role in the ability of residents to access opportunity. However, low-income and moderate-income households face disproportionate impacts of changes in urban neighbourhoods, including poor conditions, evictions and rising rents that threaten that stability. Over the past decade, the deep subsidies that created or redeveloped affordable housing between the late 1960s and 1980s have expired, putting not only the residents of those buildings. Meanwhile, market-affordable housing is at risk due to increasing market pressure in appreciating neighbourhoods. In Washington, DC a combination of programmes, laws and traditions have created a tenant-led preservation policy that has preserved the affordability of tens of thousands of units since the early 1980s. This paper investigates DC’s tenant-based preservation policy to understand the preservation challenges and opportunities for low-income and moderate-income residents in changing communities.     

The Effects of Florida's Growth Management Act on Housing Affordability

Several states have growth management laws, and many more are considering them. Multiple studies have confirmed that such laws may increase housing prices. However, higher housing prices do not automatically lower housing affordability. The research presented in this article examines the effect of Florida's Growth Management Act on housing affordability. Using two indices of housing affordability, with data from all 67 counties over a 16-year period, and after controlling for alternate hypotheses, this study finds that the Act had a statistically significant effect in decreasing the afford-ability of single-family homes. To help mitigate this negative effect, some policy interventions are suggested.     

Affordable Housing Plans in London and New York: Between Marketplace and Social Mix

The article reviews and critically analyzes contemporary housing policies and plans in London and New York in the context of neoliberal urban governance. In both cities, we find severe housing affordability problems, an increasing dependence on market provision of affordable housing, and a gradual shift from supporting low- and moderate-income residents to promoting housing for households around and above the median income. Affordable housing plans in both cities also link their “marketplace” orientation to “social mix” objectives. The article addresses some socio-spatial implications of these plans and raises concerns regarding the implementation and unintended consequences of mixed-income housing. The conclusion discusses ideas and tools for more equitable affordable housing policies. Finally, we suggest that our analysis of the policy trends in London and New York and the implications we draw may be relevant to other global and globalizing cities, which face similar affordability concerns and rely on the marketplace to address housing needs.     

Affordability of housing and accessibility of public services: evaluation of housing programs in Beijing

Acute housing poverty and low housing affordability among low-to-medium-income households have become challenges in the pursuit of a harmonious society in China. Promoting housing subsidies and stimulating investment on affordable housing have been at the center of China’s housing policy. This paper analyzes the correlation of affordable housing program in Beijing with household affordability of adequate housing and accessibility to public services, which include elementary and middle schools, hospitals and public transportation. Economic and Comfortable Housing is studied based on unique database of eligible household and affordable housing projects. We find that the program fails to make housing affordable and accessible for eligible households. The implications of housing policy design in the context of the economic and social well-being of targeted households are highlighted in the study.     

POLICY REVIEW

What was the record concerning housing for very low-income households under US President Bill Clinton? This paper reviews the record of federal funding for the Department of Housing and Urban Development (HUD) and assesses how three major indicators changed between 1993 and 2000: the number of people who were homeless or who faced other serious housing problems; the net new number of affordable housing units added, including the net new number of households served by HUD housing programs; and changes in the rate of home ownership. The paper also presents a summary of how two major rental housing programmes fared during the Clinton presidency. In the concluding section, comments by a number of key observers, including several former HUD officials from the Clinton administration, are presented, along with a summation of Clinton's achievements in providing housing for very low-income households. Overall, the Clinton record is mixed at best, but on balance, inroads on the housing problems facing this group were not nearly as substantial as had been hoped and the needs continue to be acute.     

Neighborhood Affordability and Housing Market Resilience

Problem, research strategy, and findings: Although many researchers have examined factors associated with vulnerability to foreclosure, few have investigated the role neighborhood affordability plays in foreclosures in metropolitan areas. In this study, we examine the effects of location affordability (i.e., housing and transportation affordability combined) on resilience to foreclosure in more than 300?U.S. metropolitan areas during the U.S. housing recovery period. Using hierarchical linear regression with changes in zip code–level home foreclosure rates, our findings suggest the relationship between affordability and foreclosure resilience varies according to urban form (central/high-density city versus suburban low-density area) and types of metropolitan housing markets (boom–bust versus strong versus weak). In the national analysis, where location affordability was high, home foreclosure rates dropped substantially in central/high-density areas but not in suburban low-density areas. When we disaggregated the zip codes according to the market type, location affordability contributed to recovery in central cities in strong and weak metros and in the suburbs of boom–bust metros. There was no positive association in the suburbs of strong and weak metros. With improved data, future studies could measure an association between affordability and lower income renter households.

Takeaway for practice: Our study of the affordability crisis that followed the foreclosure crisis shows that planners can foster resilient and affordable housing markets by expanding and densifying affordable neighborhood locations and considering interactions between the costs of housing and transportation. Planners can improve neighborhood affordability with local and regional strategies based on the local residential density and the type of metropolitan housing market.     

Land,urban form,and politics: A study on Dubai's housing landscape and rental affordability

There is a general perception that Dubai is built for the well-off. The construction of mega developments feeds a longstanding narrative that Dubai is solely a luxurious place. This study assesses this portrayal of Dubai and explores Dubai's residential landscape in terms of morphology and affordability. In particular, we ask: What are the different housing patterns prevailing in Dubai's built landscape? What are the major driving factors that influenced Dubai's housing transformation? How affordable is Dubai to its residents? Does Dubai's built landscape accommodate a large spectrum of income classes?The study argues that to fully assess the affordability of a city's housing, it's necessary to understand its spatial forms, morphogenesis, and the forces that shaped these patterns. Taking Dubai as a case, the study uses geospatial mapping to reveal nine distinct residential patterns in the city's history. The identified patterns are presented under six thematic periods stretching from 1900 to 2016 to highlight the contributing forces that shaped Dubai's housing landscape. Results expand the terms of discussions of affordable housing issues to address concerns related to authoritarian land use control and its impact on housing forms. Findings reveal that Dubai's land use policy creates spatial and housing affordability challenges. The state housing policy of providing large plots and exclusive suburbs for natives and the government's partnership with the private sector to brand Dubai through projects for the well-off have created a formidable housing challenge for the middle class. One major challenge is the lack of sufficient affordable housing units for the middle-class population; rental figures for this group are at crisis point. Only 23% of total housing units, which corresponds to a mere 7% of the total housing floor area in Dubai, are affordable for this group. To eradicate these ills of housing affordability, the planning profession in Dubai must derive practices from a number of internationally recognized planning and rental control policies.     

The Limits and Potentials of the Housing Market Enabling Paradigm: An Evaluation of China's Housing Policies from 1998 to 2011

This paper examines the housing policies in China in the last 14 years in the context of the international debate on the World Bank's housing market enabling strategy to improve low-income housing provision in developing countries. A review of China's urban housing outcomes reveals housing price inflation and shortage of affordable housing in the fast expanding housing market. The paper analyzes policies to increase both demand for and supply of housing and argues that these policies have contributed to worsening affordability. This situation has been exacerbated by problems in the institutional framework managing the housing sector. The paper concludes that market enabling alone is not sufficient to achieve a satisfactory housing outcome for low- and middle-income groups in Chinese cities. It advocates more effective and direct public intervention for enhancing social housing provision and tightening market regulation to address both market and government failures to improve housing conditions for lower income groups.     

Low Income Housing Tax Credit Programme Impacts on Housing Affordability in Australia: Microsimulation Model Estimates

Growing concern about a lack of rental housing affordable to low-income Australian households has prompted consideration of possible policy interventions. This paper estimates the potential housing market impacts of a tax credit targeted on rental housing affordable to low-income Australian households. The study finds that existing landlords in low-income rental housing benefit from a one-third or more reduction in their effective tax burdens. If these tax benefits are passed on in the form of lower market rents, it is estimated that the percentage of households paying more than 30 per cent of gross income in rents falls from 26 to 21 per cent. This impact would be larger but for eligible households in receipt of demand-side subsidies in the form of rent assistance. As a consequence, many low-income households receive only part of the low income housing tax credit benefits that are passed on into lower market rents. Moreover, higher income tenants occupy some of the cheaper rental housing targeted by tax credits, and this weakens the policy rationale for such supply-side measures. The paper advocates the adoption of headleasing arrangements to increase the share of benefits received by low-income tenants.     

Changing Residential Land Use Regulations to Address High Housing Prices

Problem, research strategy, and findings: In the past 3 decades, a series of presidential administrations—and the APA—have recommended that cities update their zoning codes to enable more affordable and market-rate housing development. I identify 5 main categories of policy recommendations they have suggested and then assess Los Angeles’s (CA) zoning changes in these categories between 2000 and 2016. I answer 2 questions: First, what zoning changes did Los Angeles adopt to address housing affordability? Second, how were these changes initiated, and what were their scope and geographic extent? I find that Los Angeles made modest progress in the 5 policy categories. The city left its large-lot, single-family zoning mostly untouched, but it rezoned roughly 1,200 acres citywide to allow at least 50 housing units per acre, reduced parking requirements in some areas, made it easier to build accessory dwelling units, and adopted new incentives for affordable housing. Several policy changes resulted from new state laws, and Los Angeles voters approved new incentives for affordable housing near transit. Homeowner influence likely prevented the municipality from engaging in larger zoning reforms. I do not study the effects of Los Angeles’s regulatory changes on housing production and prices, but such research is an important next step. I also do not assess new regulations that counteracted the impact of the 5 categories of policy recommendations.

Takeaway for practice: This research suggests 2 lessons: 1) Planners should encourage state governments to preempt local zoning when it reduces affordable housing options and there is limited local political will for change, and 2) planners should identify feasible and effective zoning changes that would increase affordable housing given local considerations.     

The credit crunch and subsidized low-income housing: the UK and US experience compared

This paper examines how the mortgage crisis and subsequent recession have affected subsidized rental housing in the United Kingdom and the United States. These two nations approach the housing needs of low-income households in very different ways and to very different degrees. In the UK, non-profit housing associations are pivotal to the production and management of affordable rental housing; in the US, the affordable housing system revolves mostly around a single program, the Low-Income Housing Tax Credit. Yet the crisis destabilized key parts of both countries’ subsidy systems and raised important questions about their sustainability in the future. The UK responded sooner and arguably more effectively than the US to the crisis. However, over the longer term, the prospects for affordable housing development are likely to be more difficult in the UK than in the US.     

Opportunities and Constraints in State Housing Policy: The Example of Tasmania's ‘Affordable Housing Strategy’

The lack of Commonwealth government funds for public housing has encouraged state governments across Australia to develop ‘Affordable Housing Strategies’ to address the problems that result from the shortage of housing available for low-income households. However, to date there has been limited discussion of the implications of these affordable housing strategies and their significance as a form of policy intervention. This article highlights the Tasmanian Government's ‘Affordable Housing Strategy’ as a case study to illustrate the obstacles that confront state housing policy makers. These include difficulties in securing partnerships with the private sector, an inability to influence macro-economic policy settings, fluctuations in the property market cycle and a reliance on small and uncertain budgetary allocations. However, there is limited scope to address some of the problems that have undermined previous state and Territory housing policy initiatives by reaching agreements with local government to ease planning controls for social housing, boosting the capacity of the community housing sector and using additional budgets judiciously.     

Defining and measuring housing affordability using the Minimum Income Standard

Abstract

There is growing concern about a crisis in housing affordability in the UK, renewing longstanding debates about what constitutes ‘affordable’ housing. The growing use of the private rented sector by low income households has also led to increased interest in understanding the impact of housing costs on living standards. This paper builds on existing work on ‘residual income’ measures of housing affordability, accepting that what households can afford to pay for housing is related to their ability to cover other costs, and so not directly proportional to income. It proposes a new approach to defining and measuring housing affordability, based on the Minimum Income Standard (MIS). The paper then uses data from the Family Resources Survey (2008/09 to 2015/16) to examine housing affordability within the rented sector across the UK, exploring the value of this measure both in revealing the scale of the ‘problem’ and assessing the likely impact of suggested interventions.     

Factors Shaping the Dynamics of Housing Affordability in Australia 2001–06

This paper investigates factors shaping the dynamics of housing affordability in Australia over the period 2001–06. Panel model findings indicate that those with children and the unwaged are more prone to persistent housing affordability stress. However, residential moves during spells of housing affordability stress alleviate housing cost burdens. Survival in affordable housing has become progressively more difficult over the 2001–06 timeframe, an unsurprising finding given a house price boom over the period of analysis. Residential moves are again influential, but those made by households during a spell in affordable housing are associated with the onset of housing affordability stress.     

Reassessing State Housing Trust Funds: Results of a Florida Survey

While their structure and targets vary, state housing trust funds offer an increasingly common form of assistance designed to flexibly meet local housing needs. Frequently they are generated through real estate transaction fees, making them particularly relevant in high growth states such as Florida. For 16 years, Florida's housing trust fund (SHIP) has consistently met its major funding targets, assisting housing initiatives from rural counties to the largest urban centers. A survey of local SHIP administrators provides insight on defining characteristics and key policy dilemmas. Although this critical housing program fails to consistently meet certain goals, those stakeholders involved in its passage, maintenance and implementation consider it a success. Given these conditions, strengthened state oversight to ensure consistency with housing plans and increased state support for other programs, particularly those targeting rental strategies and the lowest income, rather than major legislative changes, could result in more informed, effective and equitable local implementation.     

Housing affordability in the Netherlands: the impact of rent and energy costs

Energy costs have been rising as well as rents, both in the Netherlands and elsewhere, leading to situations commonly described as ‘housing poverty’ and ‘fuel or energy poverty’. A dwelling may be unaffordable on at least two counts: rents or energy costs that are ‘too high’ in relation to income (excluding cases of ‘too low’ income). This paper measures comprehensively for the first time housing affordability of tenants in the Netherlands with respect to rent and fuel in order to gain insight in the ways this ongoing budgetary commitment can be calculated. Starting point is the expenditure-to-income ratio, which is usually used in the Netherlands to represent the affordability of housing consumption. For 2012 its components—incomes, rents and fuel costs—are separated out. The absence of a socially acceptable benchmark for ‘affordable’ versus ‘unaffordable’ housing and the fact that lower-income households pay relatively more on rent and energy than those with a higher income (Engel’s Law) call for an alternative method to measure affordability. The residual income approach is shown to be useful in identifying households with housing and energy affordability problems, once social norms have been established for the relationship between income, rent and energy expenses. It is concluded that even energy expenses by themselves can push households over the affordability threshold, in the situation where rents are considered as affordable.     

Planning for Mixed Use: Affordable for Whom?

Problem, research strategy, and findings: Mixed-use zoning is widely advocated to increase density; promote active transportation; encourage economic development; and create lively, diverse neighborhoods. We know little, however, about whether mixed-use developments affect housing affordability. We question the impact of mixed-use zoning on housing affordability in Toronto (Canada) between 1991 and 2006 in the face of waning government support for affordable housing and increasing income inequality due to the occupational restructuring accompanying a shift to a knowledge-based economy. We fi nd that housing in mixed-use zones remained less affordable than housing in the rest of the city and in the metropolitan region. High-income service occupations experienced improved affordability while lower wage service, trade, and manufacturing occupations experienced stagnant or worsening affordability. Housing in mixed-use zones is increasingly affordable only to workers already able to pay higher housing costs. Our findings are limited to Canada's largest city but have lessons for large North American cities with similar urban economies and housing markets.

Takeaway for practice: Mixed-use developments may reduce housing affordability in core areas and inadvertently reinforce the sociospatial inequality resulting from occupational polarization unless supported by appropriate affordable housing policies. Planners should consider a range of policy measures to offset the unintentional outcomes of mixed-use developments and ensure affordability within mixed-use zones: inclusionary zoning, density bonuses linked to affordable housing, affordable housing trusts, and other relevant methods.