Expanding Access to Homeownership

New homeowners Lateshia, Sylvia, and Tyrell Walton stand in front of their new home.  U.S. Navy photograph by Mass Communication Specialist Seaman Shamus O’Neill

Christopher Herbert et al. has posted Expanding Access to Homeownership as a Means of Fostering Residential Integration and Inclusion. It opens,

Efforts to enable greater integration of communities by socioeconomic status and race/ethnicity have to confront the issue of housing affordability. Cities, towns and neighborhoods that offer access to better public services, transportation networks, shopping, recreational opportunities, parks and other natural amenities have higher housing costs. Expanding access to these communities for those with lower incomes and wealth necessarily entails some means of bringing housing in these areas within their financial reach. While households’ financial means are central to this issue, affordability intersects with race/ethnicity in part because minorities are more likely to be financially constrained. But to the extent that these areas are also disproportionately home to majority-white populations, discrimination and other barriers to racial/ethnic integration must also be confronted along with affordability barriers.

Enabling greater integration also entails some means of fostering residential stability by maintaining affordability in the face of changing neighborhood conditions. This issue is perhaps most salient in the context of neighborhoods that are experiencing gentrification, where historically low-income communities are experiencing rising rents and house values, increasing the risk of displacement of existing residents and blocking access to newcomers with less means. More generally, increases in housing costs in middle- and upper-income communities may also contribute to increasing segregation by putting these areas further out of reach of households with more modest means.

It is common to think of subsidized rental housing as the principal means of using public resources to expand access to higher-cost neighborhoods and to maintain affordability in areas of increasing demand. But for a host of reasons, policies that help to make homeownership more affordable and accessible should be included as part of a portfolio of approaches designed to achieve these goals.

For example, survey research consistently finds that homeownership remains an important aspiration of most renters, including large majorities of low- and moderate-income households and racial/ethnic minorities. Moreover, because owner-occupied homes account for substantial majorities of the existing housing stock in low-poverty and majority-white neighborhoods, expanding access to homeownership offers the potential to foster integration and to increase access to opportunity for low- income households and households of color. There is also solid evidence that homeownership remains an important means of accruing wealth, which in turn can help expand access to higher-cost communities. Owning a home is associated with greater residential stability, in part because it provides protection from rent inflation, which can help maintain integration in the face of rising housing costs. Finally, in communities where owner-occupied housing predominates, there may be less opposition to expanding affordable housing options for homeowners.

The goal of this paper is to identify means of structuring subsidies and other public interventions intended to expand access to homeownership with an eye towards fostering greater socioeconomic and racial/ethnic integration. (1-2, footnotes omitted)

The paper gives an overview of the barriers to increasing the homeownership rate, including affordability, access to credit and information deficits and then outlines policy options to increase homeownership. The paper provides a good overview for those who want to know more about this topic.

 

Dos And Don’ts of Mixed-Use Development

Mixed Use Development

I was interviewed on Georgia Public Radio’s On Second Thought radio show about The Dos And Don’ts of Mixed-Use Developments. The segment was about John’s Creek,

an affluent suburb in northeast Atlanta. It’s fairly small — only about 80,000 people live there — but it has big dreams.

The city wants to transform some of its 728-acre office park into a town center with homes, shops and offices. John’s Creek mayor Michael Bodker calls the redevelopment project “The District,” referring to an area that would become the city’s downtown sector. Bodker believes this project will broaden the city’s tax base.

“John’s Creek does not have a healthy and sustainable tax digest,” Bodker said in his most recent State of the City address. “Homeowners are disproportionately supporting the load by covering 81 percent of the tax digest versus 19 percent for commercial.” Without doing something to change the current model, he says, there will be less money for public services like road repairs.

The segment was quite short, so it did not get to what I thought was the key issue — the appropriate role of mass transit in the design of urban centers. It appears that the mayor’s plan does not contemplate linking this new urban center to Atlanta-area mass transit. That seems like the kiss of death for what is supposed to be a walkable town center.

To be an attractive walkable environment, you need a critical mass of walkers. Mass transit brings walkers. Some walk by preference and some by necessity: young people without cars; senior citizens who have grown less comfortable driving; and people who might want to have a few drinks and enjoy the nightlife planned for The District.  Moreover, many retail and service jobs pay relatively low wages, so many workers rely on public transportation to get to work. John’s Creek should take a fresh look at the principles of Transit-Oriented Design and New Urbanism before finalizing its plan.

On Second Thought’s website also discusses some of my other thoughts on planning such a big project.