Housing News Roundup: May 12, 2016
Estimating the Yield of New York City's Inclusionary Policy
New York City’s mandatory inclusionary housing plan is responsible for more than 1,400 new below-market-rate units, according to City Hall estimates. Without the restoration of tax abatements, however, developers are skeptical about the policy achieving its goal of 12,000 affordable apartments by 2024. The unit count is also affected by project-specific negotiations, such as reducing a building’s height in response to community concerns. “The issue is, how do you keep the height down in Manhattan while you are negotiating affordable housing? That’s the challenge,” says Manhattan borough president Gale Brewer.
Source: Politico New York
Asheville, North Carolina, Faces Housing Market Risks
In Nationwide’s rankings of metropolitan housing markets, Asheville, North Carolina, is the sixth least healthy, in terms of market sustainability. “House-price gains relative to income have become increasingly unaffordable,” says David Berson, senior vice president and chief economist at Nationwide, an Ohio-based insurance and financial planning company. High demand to live in the area has combined with a shortage of new construction to drive up costs. “It’s now a classic problem in many cities—the supply is inelastic,” says Jonathan Miller, cofounder of the New York–based appraisal company Miller Samuel.
Source: Asheville Citizen-Times
Rising Rent Burdens for Middle-Income Households
In New York City’s rapidly gentrifying neighborhoods, middle-income households are increasingly struggling to afford the rent. A report from New York University’s Furman Center found that, in areas with rapidly rising rents, the share of renters spending more than 30 percent of their income on rent rose more among middle-income households than among the poor. Other cities, including Boston and Atlanta, are grappling with high rents. “We’re not the little city in the South anymore. It’s much more expensive, especially the rental market,” says Valerie Bernardo, director of housing for the city of Atlanta.
Source: Wall Street Journal
School Convenes Coalition on Housing Segregation
In the wake of the Ferguson Report, a charter school in St. Louis is organizing a coalition to take on school and housing segregation. “The inequity that exists in our region is literally killing our children and killing our communities,” says Christie Huck, executive director of City Garden Montessori. The coalition will initially focus on the neighborhoods closest to the school. Previously, in response to rising property values near the school, Huck created a task force to address the displacement of low-income residents.
Source: St. Louis Post-Dispatch